Here are 1-3 brief analogies for QNB Corp. (QNBC):

• QNB is like a localized version of a major bank such as JPMorgan Chase or Bank of America, providing a full range of banking, brokerage, and advisory services specifically for communities in southeastern Pennsylvania.
• Think of QNB as a community-focused PNC or Truist, serving all the banking needs – from personal accounts to commercial loans – for specific towns and counties in southeastern Pennsylvania.

• Deposit Accounts: QNB offers various deposit products including demand, savings, money market, and time deposit accounts like Certificates of Deposit and IRAs.
• Loan Products: The company provides a range of loans such as commercial and industrial, real estate, construction, mortgage, home equity, and consumer loans.
• Retail Brokerage & Advisory Services: QNB offers services to assist customers with investments and financial planning.
• Credit Cards & Insurance Products: The bank provides credit card options and various insurance offerings to its customers.
• Merchant Services: QNB assists businesses with processing electronic payments from customers.
• Digital Banking & Payment Services: Services include ATM and debit cards, internet and mobile banking, electronic bill pay, and remote deposit capture.

QNB Corp. (QNBC) primarily serves two broad categories of customers:

• Individual Consumers and Households: This category encompasses individuals and families who utilize a range of retail banking products and services. These include various deposit accounts (demand, savings, money market, club, online savings, certificates of deposit, and individual retirement accounts), 1-4 family residential mortgage loans, home equity loans and lines of credit, consumer loans, retail brokerage and advisory services, credit cards, insurance products, ATM and debit card services, internet and mobile banking, and electronic bill pay services.
• Businesses and Commercial Enterprises: This category includes local businesses and other commercial entities that rely on QNB Bank for its commercial banking offerings. Services provided to these customers include commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, various deposit products, credit cards, insurance products, merchant services, ATM and debit card services, internet and mobile banking, electronic bill pay, and remote deposit capture services. Given the nature of a community bank, these customers are typically small to medium-sized businesses within its service area of Bucks, Montgomery, and Lehigh counties in southeastern Pennsylvania.

David W. Freeman, President and Chief Executive Officer

Mr. Freeman has served as the Chief Executive Officer of QNB Corp. and QNB Bank since January 2013, and as President of both entities since September 2010. Before joining QNB Corp., he was the Division President of the Drovers Bank Division of Fulton Bank from March 2002 to March 2010. He previously held executive and management positions with PNC Bank, Chase Bank of Ohio, and Huntington National Bank. Mr. Freeman's educational background includes a Bachelor of Science degree in business management from Franklin University, a Master of Business Administration from The Ohio State University, and he is a graduate of ABA Stonier Graduate School of Banking. He is expected to retire on December 31, 2028.

Jeffrey Lehocky, Executive Vice President and Chief Financial Officer

Mr. Lehocky was appointed Executive Vice President and Chief Financial Officer of QNB Corp. and QNB Bank in November 2022. In this role, he oversees the company's accounting, financial, and treasury operations. Prior to joining QNB, Mr. Lehocky served as Managing Director, Head of Business and Risk Management Global Transaction Bank for Mitsubishi UFJ Finance Group in New York from February 2020 to September 2021. Before that, he was a Managing Director, Head of Operations, Corporate and Investment Bank for Deutsche Bank in New York and London from November 1994 to December 2019. Mr. Lehocky is a Certified Public Accountant and a Certified Internal Auditor, holding a Bachelor of Arts in Accounting from Villanova University and a Master of Business Administration in Finance from Seton Hall University.

Christopher T. Cattie, Executive Vice President and Chief Operating Officer

Mr. Cattie has been a member of the QNB leadership team for more than 10 years and was appointed Chief Operating Officer on January 1, 2025. He is responsible for planning, overseeing, and managing the bank's information technology and infrastructure, deposit operations, loan operations, security, fraud, and compliance. He previously served as QNB's Executive Vice President, Chief Operations & Technology Officer from February 2016 to 2024. Before joining QNB, he was Group Vice President of Information Technology for Bryn Mawr Trust from January 2015 to February 2016, and Senior Vice President, Information Technology Director for Continental Bank. Mr. Cattie is expected to assume the roles of President and Chief Executive Officer of both QNB Bank and QNB Corp. upon Mr. Freeman's planned retirement on December 31, 2028. He holds a Bachelor of Science degree in Management and Accounting from Lock Haven University, an MBA in Management Information Systems from La Salle University, and is a graduate of the ABA Stonier Graduate School of Banking.

Abigail Covelens, Executive Vice President, Chief Retail Officer and Chief Business Banking Officer

Ms. Covelens has served as Executive Vice President, Chief Retail Officer and Chief Business Banking Officer of the Bank since January 1, 2023. In her role, she is responsible for planning, overseeing, and managing retail branch banking and the business banking group. Prior to this, she served as QNB's Senior Vice President and Commercial Lending Officer from June 2014 to December 2022, and held various roles within Retail Branch Banking from 2000 to 2014.

Key Risks to QNB Corp. (QNBC)

1. Credit Quality and Commercial Real Estate Concentration: The most significant risk for QNB Corp., like many community banks, is credit quality. The company's loan portfolio has a concentration in commercial real estate, which can lead to considerable pressure if a local borrower or property segment experiences weakness.
2. Interest Rate and Funding Risk: Another major concern for QNB Corp. is the risk associated with interest rates and funding. The bank's net interest margin can quickly shrink if the cost of deposits increases at a faster rate than the yields on its assets.
3. Execution Risk from Balance Sheet Restructuring and Share Dilution: QNB Corp. is currently undergoing a balance sheet restructuring, which involves selling securities and funding new loans. This process introduces execution risk. Additionally, the recent public offering of common stock for general corporate purposes, including the balance sheet restructuring, poses a risk of potential dilution for existing shareholders.

The rise of digital-first and online-only banks and FinTech companies that offer banking services primarily through digital channels, challenging the traditional branch-based model by providing convenient, often lower-cost alternatives.

QNB Corp. (QNBC) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Strategic Acquisition and Market Expansion: A significant driver is the merger with The Victory Bancorp, Inc., which was agreed upon in September 2025 and successfully integrated in June 2026. This all-stock transaction is anticipated to expand QNB's market presence deeper into Montgomery and Berks counties in Pennsylvania, creating a combined organization with nearly $2.4 billion in assets.
2. Growth in Commercial and Residential Real Estate Loans: QNB Corp. has shown consistent growth in its loan portfolio, particularly in commercial and residential real estate. Loans receivable increased by 3.8% in 2025, supported by these segments. The company's business model emphasizes small-business lending and commercial real estate as significant components of its loan portfolio, which is expected to continue contributing to revenue growth.
3. Net Interest Margin (NIM) Expansion: The company has demonstrated an improving net interest margin, which expanded to 2.72% in 2025 from 2.43% in 2024. This improvement, driven by the repricing of existing loans and active management of its cost of funds, directly enhances net interest income, a primary revenue component for banks.
4. Balance Sheet Restructuring and Higher-Yielding Investments: QNB plans to enhance its balance sheet by selling lower-yielding securities (approximately $236 million at 1.61% yield) and reinvesting in higher-yielding securities (around $125 million at 4.76% yield) and new loans (approximately $76 million at 6.50% yield). This strategic reallocation of assets is designed to improve overall asset yield and bolster future net interest income and regulatory capital ratios.
5. Continued Focus on Community Banking and Technology-Enabled Services: QNB continues to emphasize its long-standing presence in community banking, offering personalized service to local individuals, families, and small to mid-sized businesses. Coupled with ongoing investments in technology-enabled services like internet and mobile banking, electronic bill pay, and remote deposit capture, this approach helps retain and attract customers, contributing to sustained deposit and loan growth.

Share Issuance

• In August 2026, QNB Corp. completed a public offering of 1,071,428 shares of common stock at $42.00 per share, yielding approximately $42.3 million in net proceeds.
• Underwriters fully exercised their overallotment option, purchasing an additional 160,714 shares at $42.00 per share, increasing total proceeds to approximately $48.3 million from 1,232,142 shares sold.
• As part of the all-stock acquisition of The Victory Bancorp, Inc., completed on April 1, 2026, QNB Corp. issued 1,178,182 shares, in a transaction valued at $47.1 million.

Outbound Investments

• QNB Corp. entered into a definitive agreement in September 2025 to acquire The Victory Bancorp, Inc. in an all-stock transaction.
• The acquisition of The Victory Bancorp, Inc. was completed on April 1, 2026, creating a combined entity with nearly $2.4 billion in assets.