QNB Corp. Secures Final Regulatory Green Light for Merger with The Victory Bancorp

The Merger That Has Been Anticipated Since September 2025

On February 25, 2026, QNB Corp. (OTCQX: QNBC), the holding company for Quakertown National Bank, and The Victory Bancorp, Inc. (OTCQX: VTYB), the parent of Victory Bank, announced that they have received all required regulatory approvals to complete their previously announced merger transaction. The announcement, echoed by GlobeNewswire and AllPennyStocks, marks the culmination of a multi‑month process that began on September 23, 2025. The merger is scheduled to close during the second quarter of 2026, subject to customary closing conditions.

The combined entity will merge QNB Bank, which currently operates twelve branches in Bucks, Lehigh, and Montgomery Counties, with Victory Bank, a Pennsylvania state‑chartered institution headquartered in Limerick Township, Montgomery County. Together, they will offer a full spectrum of commercial and retail banking services, including commercial loans, residential mortgage loans, consumer loans, and investment securities. The transaction is expected to strengthen the banks’ regional presence and diversify their product portfolios.

Why the Merger Matters

  • Expanded Footprint – QNB Bank’s twelve branches and Victory Bank’s four offices across Montgomery and Berks Counties will create a more extensive network, potentially increasing market share in the competitive Pennsylvania banking landscape.
  • Enhanced Product Mix – The combined organization will provide high‑quality business lending, personal loans, and home equity lines of credit under a single umbrella, offering customers a more comprehensive suite of services.
  • Operational Synergies – The merger is poised to deliver cost efficiencies through shared technology platforms, consolidated back‑office functions, and unified risk management frameworks.
  • Strategic Growth – By combining their customer bases and deposit pools, the new entity will be better positioned to pursue growth opportunities and respond to evolving regulatory and economic conditions.

Dividend Declaration: A Signal of Confidence

On February 24, 2026, QNB Corp. announced a dividend for the first quarter of 2026, to be declared on February 25, 2026 at 02:22 GMT. The declaration demonstrates management’s confidence in the company’s cash flow generation and its commitment to returning value to shareholders. While the exact dividend amount is not disclosed in the press release, the announcement reinforces the narrative that the merger will enhance shareholder returns through increased profitability and asset quality.

Forward‑Looking Statements and Risks

Both parties have reiterated the presence of forward‑looking statements in their communications, underscoring that the merger’s success is contingent upon a range of assumptions, risks, and uncertainties. These include:

  • Regulatory approvals – Although the transaction has received all required approvals, future regulatory changes could impact the merger’s terms or timeline.
  • Market conditions – Economic fluctuations and changes in interest rates may affect loan demand, deposit rates, and investment returns.
  • Integration challenges – Merging systems, cultures, and operational processes carries inherent risks that could delay expected synergies.
  • Competitive pressures – Local banks and fintech firms may intensify competition, affecting market share and pricing power.

Management has emphasized that the merger’s ultimate benefits will depend on their ability to navigate these complexities and deliver on projected growth trajectories.

Market Reaction

The stock has traded at $37.13 on February 23, 2026, within the 52‑week range of $32.16–$38.69. With a market cap of approximately $139.55 million and a price‑to‑earnings ratio of 9.89, investors are watching the merger’s completion closely. The announcement is expected to buoy investor sentiment, as the market anticipates the realization of the merger’s synergies and the enhanced shareholder value.

Bottom Line

QNB Corp.’s regulatory clearance to merge with The Victory Bancorp is a decisive step toward reshaping Pennsylvania’s banking sector. The strategic combination promises expanded geographic reach, a richer product lineup, and operational efficiencies that should translate into tangible benefits for customers and shareholders alike. However, the company’s forward‑looking statements remind investors that the merger’s success hinges on a complex interplay of regulatory, economic, and integration factors. As the transaction moves toward its anticipated closing in the second quarter, all eyes will remain on the new entity’s ability to deliver on its ambitious growth narrative.