QNB earnings swung to a loss in the third quarter of 2026 after the bank holding company sold securities as part of a balance sheet restructuring. The company reported a net loss of $14.8 million, or $2.67 per diluted share, compared with net income of $3.6 million a year earlier.

Key Takeaways

  • The securities sale and related swap unwind produced a net loss of $27.7 million before tax.
  • Adjusted net income rose to $7.2 million from $4.1 million in the third quarter of 2025.
  • The 2026 quarter included three months of operations from the acquired Victory Bancorp.

QNB earnings and adjusted results

QNB’s adjusted net income, which excluded the restructuring and merger-related costs, was $7.2 million, or $1.30 per diluted share. That compared with $4.1 million, or $1.09 per diluted share, a year earlier, excluding merger-related costs.

The adjusted figures are non-GAAP measures and are not a substitute for reported results. The company said they help show performance without the effects of significant gains and charges.

For the nine months ended September 30, 2026, QNB reported a net loss of $9.0 million, compared with net income of $10.1 million a year earlier. Adjusted net income was $16.2 million, up from $10.5 million.

Restructuring and acquisition

QNB sold $250.7 million of available-for-sale securities at a loss of $29.0 million and unwound a related swap for a gain of $1.3 million. The company announced the restructuring on September 8.

QNB completed its acquisition of Victory Bancorp on April 1. Its third-quarter results included three months of post-merger activity and $251,000 in merger-related costs, compared with $519,000 in the prior-year quarter.

The company also completed a public offering on August 20, issuing 1,232,142 common shares and adding $48.3 million to shareholders’ equity after underwriting discounts and related costs.

Interest income and credit quality

Third-quarter net interest income rose by $6.2 million to $19.2 million. The tax-equivalent net interest margin widened to 3.25% from 2.72% a year earlier.

QNB recorded a $379,000 provision for credit losses on loans in the quarter, compared with $98,000 a year earlier. At September 30, nonperforming loans totaled $11.7 million, or 0.66% of loans receivable, compared with $8.8 million, or 0.70%, at December 31, 2025.

Total assets stood at $2.36 billion at September 30, up from $1.91 billion at the end of 2025. Loans receivable were $1.77 billion and deposits were $2.06 billion.

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