FOR IMMEDIATE RELEASE

QNB CORP. REPORTS

EARNINGS FOR FOURTH QUARTER 2025

QUAKERTOWN, PA (January 27, 2026) QNB Corp. (the “Company” or “QNB”) (OTCQX: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the fourth quarter of 2025 of $3,981,000 or $1.06 per share on a diluted basis. This compares to net income of $3,051,000, or $0.83 per share on a diluted basis, for the same period in 2024. For the twelve months ended December 31, 2025, QNB reported net income of $14,090,000, or $3.78 per share on a diluted basis. This compares to net income of $11,448,000, or $3.12 per share on a diluted basis, reported for the same period in 2024. For the three- and twelve-month periods of 2025, net income included merger-related cost of $619,000 and $1,138,000, respectively. The merger-related costs are significant one-time costs and are not normal recurring operating expenses. Adjusted diluted earnings per share excluding the impact of the merger-related cost for the three- and twelve-month periods of 2025 was $1.22 and $4.08, respectively*.

On September 23, 2025, QNB Corp. and The Victory Bancorp, Inc. ("Victory") announced they have entered into a definitive agreement under which QNB will acquire Victory in an all-stock transaction, creating a bank holding company with nearly $2.4 billion in assets. Upon the completion of the merger, the pro-forma post-merger shareholder ownership split would be approximately 77.2% for QNB and 22.8% for Victory. The transaction is expected to close in the second quarter of 2026, subject to satisfaction of customary closing conditions, including regulatory approvals and approval from both QNB and Victory shareholders.

For the fourth quarter ended December 31, 2025, the annualized rate of return on average assets and average shareholders’ equity was 0.83% and 12.52%, respectively, compared with 0.66% and 11.62%, respectively, for the fourth quarter 2024. Return on average assets, excluding the impact of the merger-related cost, for the three- and twelve-month periods of 2025 was 0.95% and 0.80%, respectively*. Return on average equity (ROE), excluding the impact of the merger-related cost, for the three- and twelve-month periods of 2025 was 14.38% and 13.24%, respectively*.

* QNB uses non-GAAP financial information in its analysis of performance. These non-GAAP ratios and calculations provide a better understanding of ongoing operations and comparability with prior period results by showing the effects of significant gains and charges in the periods presented. QNB believes that investors may use these non-GAAP measures to analyze QNB’s financial performance without the impact of unusual items or events that may obscure trends. This non-GAAP data is not a substitute for GAAP results and should be considered in addition to results prepared in accordance with GAAP. Non-GAAP financial measures include risks as companies might calculate these measures differently and persons might disagree as to the appropriateness of items included in these measures. Please see attached table "Impact of Merger-Related Costs--GAAP to Non-GAAP Measure Reconciliation."

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended December 31, 2025, in comparison with the same period in 2024, due primarily to

improvement in the interest margin causing a $3,110,000 increase in net interest income and a $227,000 increase in non-interest income; this was partly offset by an increase in non-interest expense of $1,048,000. The change in contribution from QNB Corp. for the quarter ended December 31, 2025, compared with the same period in 2024, is primarily due to a decrease in net interest income of $43,000, related to the subordinated debt issuance in 2024, an increase in non-interest expense of $577,000, primarily due to merger-related expenses.

The following table presents disaggregated net income (loss):

Total assets as of December 31, 2025 were $1,906,005,000 compared with $1,870,894,000 at December 31, 2024. Loans receivable increased $46,026,000, or 3.8%, to $1,262,074,000. Total deposits increased $13,970,000, or 0.9%, to $1,642,511,000. Long-term borrowing declined $30,000,000, while short-term borrowing increased $26,757,000.

"We are proud to report another quarter of improved operating performance, highlighted by record net interest income, strong margin expansion, and continued loan growth. These results demonstrate the resilience of our customers and the dedication of our team. The upcoming merger with Victory Bancorp, which is pending regulatory and shareholder approval, represents a pivotal step forward, enabling us to deepen our community impact and create greater opportunities for our shareholders and customers alike." said Dave Freeman, President and Chief Executive Officer.

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended December 31, 2025 totaled $14,042,000, an increase of $3,067,000, from the same period in 2024. Net interest margin was 2.95% for the fourth quarter of 2025 and 2.38% for the same period in 2024. Net interest margin was 2.72% for the twelve months ended December 31, 2025, compared with 2.43% for the same period in 2024.

The yield on earning assets was 4.98% for the fourth quarter of 2025, compared with 4.78% in the fourth quarter of 2024; an increase of 20 basis points. For the twelve-month period ended December 31, 2025, the yield on earning assets was 4.90%, compared with 4.73% for the same period in 2024; an increase of 17 basis points.

The cost of interest-bearing liabilities was 2.48% for the fourth quarter ended December 31, 2025, compared with 2.91% for the same period in 2024, a decrease of 43 basis points. For the twelve-month period ended December 31, 2025, the cost of interest-bearing liabilities was 2.64% compared with 2.80% for the same period in 2024, a decrease of 16 basis points.

Proceeds from the growth in average deposits and the issuance of subordinated debt over the past year were invested in loans and higher-yielding securities. Loan growth was primarily in commercial real estate, which comprised 46.1% of average earning assets in the twelve months of 2025 compared with 45.3% for the same period in 2024, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 29 basis-point increase in the yield on loans. The increase in the available-for-sale investments portfolio was primarily in corporate debt securities. The six-basis point increase in rate on investments was primarily due to the 66-basis point increase in the yield on corporate debt securities. The average rate paid on interest-bearing deposits decreased 31 basis points.

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

QNB recorded a $44,000 reversal in the provision for credit losses on loans in the fourth quarter of 2025 compared to a reversal of $242,000 in provision in the fourth quarter of 2024. QNB recorded a provision of $460,000 in the provision for credit losses on loans for the twelve-month ended December 31, 2025 compared to a reversal of $49,000 in provision for the same period of 2024. QNB's allowance for credit losses on loans of $9,215,000 represents 0.73% of loans receivable at December 31, 2025, compared to $8,744,000, or 0.72% of loans receivable at December 31, 2024. The one-basis point increase in the allowance for credit losses on loans was primarily due to reserves for collateral dependent loans partly offset by an improvement in the economic outlook. Net loan recoveries were $4,000 for the quarter ended December 31, 2025, compared with charge-offs of $1,000 for the same period in 2024. Net loan recoveries were $11,000 for the twelve months ended December 31, 2025, compared with charge-offs of $59,000 for the same period in 2024. Annualized net loan recoveries for the twelve months ended December 31, 2025 were 0.00% compared to annualized net charge-offs of 0.01% for the same period in 2024, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $8,793,000, or 0.70% of loans receivable at December 31, 2025, compared with $1,975,000, or 0.16% of loans receivable at December 31, 2024. The increase was primarily due to one commercial customer relationship. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At December 31, 2025, $7,763,000, or approximately 88% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $39,516,000 at December 31, 2025, compared with $34,301,000 at December 31, 2024; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,874,000 for the fourth quarter of 2025 compared with $1,645,000 for the same period in 2024. There were no realized and unrealized gain/loss on securities for the quarter ended December 31, 2025 compared to a net gain of $70,000 in the same period in 2024. Excluding the net realized and unrealized gains on securities, non-interest income increased $299,000, or 19.0%.

Fees for service to customers increased $79,000 for the quarter ended December 31, 2025, as overdraft fees increased $67,000 and other deposit-related fees increased $12,000. ATM and debit card income increased $127,000 due to volume. Retail brokerage and advisory income increased $53,000 to $171,000 for the same period. Other non-interest income increased $30,000 for the same period due to an increase in letter of credit fees of $15,000 and an increase in credit card income of $10,000.

For the twelve months ended December 31, 2025, non-interest income was $6,957,000 an increase of $44,000 compared to the same period in 2024. QNB completed the exchange offer to convert the Bank's Visa B-1 shares to B-2 and C shares in the second quarter of 2024 and then sold the Visa Class C shares in the fourth quarter of 2024 and realized a gain of $1,498,000. QNB sold its other equity securities and realized a gain of $517,000 during the twelve months ended December 31, 2024. QNB sold available-for-sale securities during 2024 for a net loss of $1,096,000. Excluding the net realized and unrealized gains on securities, non-interest income increased $748,000, or 12.0%. Net gain on sale of loans increased $34,000 when comparing the twelve months ended December 31, 2025 with the same period in 2024. Increases in non-interest income for the twelve months ended December 31, 2025 compared to the same period in 2024 comprise: fees for services to customers, ATM and debit card fees and retail brokerage and advisory, which increased $216,000, $251,000 and $172,000,

respectively. Other non-interest income increased $96,000 due primarily to increases in letter of credit fees, title insurance company income and credit card income.

Non-Interest Expense

Total non-interest expense was $10,694,000 for the fourth quarter of 2025 compared with $9,081,000 for the same period in 2024. Excluding merger-related costs of $619,000, noninterest expense increased $966,000 or 10.9% for the fourth quarter of 2025, compared to the same period in 2024. Salaries and benefits expense increased $651,000, or 12.8%, to $5,730,000 when comparing the two quarters. Salary expense and related payroll taxes increased $500,000, or 11.3%, to $4,930,000 during the fourth quarter of 2025 compared to the same period in 2024, primarily due to bonus accruals and pay increases. Benefits expense increased $151,000, or 23.3%, when comparing the two periods primarily due to increase in medical costs due to timing as year-to-date costs are down $53,000.

Net occupancy and furniture and equipment expense decreased $4,000, decreases in depreciation expense were partly offset by increases in software maintenance costs. Other non-interest expense increased $347,000, or 14.8%, when comparing fourth quarter of 2025 with the same period in 2024 due to an increase in third-party services of $137,000 related to information technology services and consultant expense, an increase in FDIC insurance expense of $119,000 and an increase in bank shares tax of $54,000.

For the twelve months ended December 31, 2025, non-interest expense was $39,807,000, an increase of $4,323,000, or 12.2%, compared to the same period in 2024. Excluding merger-related costs, noninterest expense increased $3,185,000 or 9.0% for the twelve months ended December 31, 2025, compared to the same period in 2024.

Income Taxes

Provision for income taxes increased $546,000 to $1,289,000 in the fourth quarter of 2025 due to higher taxable income, compared with the same period in 2024. The effective tax rate for the quarter ended December 31, 2025 was 24.5% compared with 19.6% for the same period in 2024. The effective tax rate for the twelve months ended December 31, 2025 was 21.4% compared with 20.3% for the same period in 2024. The increase in the tax rates in 2025 were due to non-taxable merger-related costs.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.