Business Description

commercial banking business and provides a full range of banking services to its customers. These banking services consist of, among other things, attracting deposits and using these funds in making commercial loans, residential mortgage loans, consumer loans, and purchasing investment securities. These deposits are in the form of time, demand and savings accounts. Time deposits include certificates of deposit and individual retirement accounts. The Bank’s demand and savings accounts include money market accounts, interest-bearing demand accounts (including a higher yielding checking account), club accounts, traditional statement savings accounts, and a higher yielding online savings account. - 2 - At December 31, 2025, QNB had total assets of $1,906,005,000, total loans receivable of $1,262,074,000, total deposits of $1,642,511,000 and total shareholders’ equity of $129,563,000. For the year ended December 31, 2025, QNB reported net income of $14,090,000 compared to net income for the year ended December 31, 2024 of $11,448,000 and December 31, 2023 of $9,483,000. As previously disclosed, on September 23, 2025, QNB and The Victory Bancorp, Inc., a Pennsylvania corporation (“Victory”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides for a business combination whereby Victory will merge with and into QNB (the “Merger”), with QNB as the surviving corporation in the Merger. Immediately after the effective time of the Merger (the “Effective Time”), Victory’s wholly-owned subsidiary bank, The Victory Bank, a Pennsylvania-chartered state bank (“Victory Bank”), will merge with and into QNB Bank, with QNB Bank as the surviving bank in the subsidiary bank merger. The transactions under the Merger Agreement are expected to close during the second quarter of 2026, subject to customary closing conditions. At February 18, 2026, the Bank had 191 full-time employees and six part-time employees. The Bank’s employees have a customer-oriented philosophy emphasizing personal service and flexible solutions which together make achieving our customers’ goals possible. They maintain close contact with both the residents and local business people in the communities in which they serve, responding to changes in market conditions and customer requests in a timely manner.