Qnb Corp. · NASDAQ:QNBC
Qnb — Investor Presentation (September 2025)
35 slides from Qnb's investor presentation, Sep 25, 2025
Slide 1: QNB Corp. Investor Presentation
Holding Company for: OTCQX: QNBC September 25, 2025
Slide 2: Forward-looking statements and non-GAAP disclaimer
This Investor Presentation may contain forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project” and variations of suc
Slide 3: Stability and longevity through enduring leadership
• Stability and longevity through attentive, capable and enduring leadership • Only seven Bank presidents since 1877 • QNB Corp. founded in 1984 • High impact in markets served due to history, mission, and reputation • Tangible, economic competitive advantages, with a high cost of replication – as m
Slide 4: Mission, vision and strategic pillars
We will help customers achieve their goals by providing a total financial relationship built upon exceptional personal service and a sincere interest in their success The mission of QNB is to operate in an environment in which: • Our Customers always come first and perceive the Bank as a trusted res
Slide 5: How we track our progress
How we track our progress Technology, Products & Exceptional Customer Pillar Grow The Bank Responsibly Culture Risk & Regulatory Service Experience Employee Satisfaction Customer Satisfaction External Exam & Internal Household Growth Product Gaps Eliminated Ratings Ratings - % Overall Audit - Rating
Slide 6: Seasoned Management Team with Decades of Operating Experience
Seasoned Management Team with Decades of Operating Experience • Senior management team comprised of individuals with over 200 years of combined banking and financial services experience (1) • In its 148-year history, stability and consistency have been hallmarks of QNB Bank leadership, helping to na
Slide 7: Highly-educated and high-earning market area
QNB Bank services a highly-educated and high-earning market with the need for a strong Community Bank that will continue to grow alongside it • 9 of 12 Bank branches located in counties with a median income approximately 40% higher than the national median income of $79 thousand, with a projected gr
Slide 8: Market Area and branches
• QNB Bank founded in 1877 as Quakertown National Bank • 12 bank branches – 7 in Bucks County, 3 in Lehigh County, and 2 in Montgomery County, with market area extending into Berks and Northampton counties Market Area 8
Slide 9: Announced acquisition of The Victory Bancorp
• Sept. 23, 2025 Press Release: • “QNB Corp. ("QNB") (OTCQX: QNBC) and The Victory Bancorp, Inc. ("Victory") (OTCQX: VTYB) today announced they have entered into a definitive agreement under which QNB will acquire Victory in an all-stock transaction…” • Highlights of the Transaction: • Strategic mer
Slide 10: Q2 2025 financial summary and commentary
($ in millions) 2024Q2 2025 Q2 YTD 2024 YTD 2025 Commentary • $1.4 million (27%) increase in Net Total Assets $1,761 $1,885 $1,761 $1,885 Income After Tax driven by increase in Net Interest Income Gross Loans $1,163 $1,220 $1,163 $1,220 • Strong organic growth in Assets (7%) Total Deposits $1,573 $1
Slide 11: Increase in net income driven by record net interest income
Increase in net income driven by record net interest income Net Income ($mm) Net Interest Income after Provision ($mm) $3.9 $0.1 $4.0 $14.0 $0.3 $3.3 $3.1 $12.0 $2.5 $2.6 $10.0 $8.0 $11.5 $12.7 $6.0 $10.6 $11.1 $11.0 $2.0 $4.0 $2.0 $0.0 ($0.1) ($0.2) ($0.6) ($2.0) 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2
Slide 12: Steady growth on both sides of the balance sheet
QNBC boasts attractive, steady growth on both sides of the balance sheet Total Assets ($mm) Total Gross Loans (1) ($mm) $1,217 $1,220 $1,871 $1,885 $1,094 $2,000 $1,706 $1,200 $1,039 $1,673 $1,668 $927 $926 $1,440 $1,500 $900 $1,000 $600 $500 $300 $0 $0 2020Y 2021Y 2022Y 2023Y 2024Y 2025Q2 2020Y 202
Slide 13: Strong regulatory capital well in excess of well-capitalized
QNBC has maintained strong Regulatory Capital, well in excess of regulatorily well-capitalized (1) Tier 1 Leverage Ratio Common Equity Tier 1 Ratio 10.00% 14.00% 12.00% 9.07% 8.92% 12.86% 12.59% 12.39% 8.75% 8.70% 8.76% 12.33% 12.02% 12.24% 7.50% 8.39% 10.00% 8.00% 5.00% Well-Capitalized Tier 1 Leve
Slide 14: Consistent loan growth without compromising asset quality
QNBC has displayed consistent loan growth, without compromising Asset Quality Annual Loan Growth Since 2015 $1,300.0 2.5 $1,216.7 $1,219.7 $1,200.0 2.0 1.89 $1,094.1 2 $1,100.0 1.74 $1,039.4 $1,000.0 1.53 $926.6 $926.5 1.5 $900.0 1.26 1.26 1.23 $821.6 $800.0 $786.2 $734.8 1 0.88 $700.0 0.73 $633.9 $
Slide 15: Pristine asset quality as NPAs and charge-offs remain low
Pristine asset quality as NPAs and charge-offs remain at low levels Commentary NPAs (1) / Assets (%) • QNB, with NPAs (1) / Assets of 0.53% as of June 30, 2025, is 0.80% modestly below its State (2) and Peers (3) 0.70% 0.67% • The Bank has seen minimal NCOs (4), with NCOs (4) / Avg. Loans as 0.60% 0
Slide 16: Commercial loan portfolio growth and underwriting standards
QNB has shown growth in the Commercial Loan portfolio without compromising underwriting standards. ($ in Thousands) Loan-to-Value Reconciling COMMERCIAL LOAN BREAKDOWN BY LTV 0-50% 50-60% 60-65% 65-70% 70-75% >75% Adjustments(1) Total Commercial and Industrial Loans $38,168 $3,223 $1,933 $2,752 $2,1
Slide 17: Well-diversified loan portfolio
QNB continues to maintain a well-diversified Loan portfolio. QNB Bank Loan Composition Since 2021 2021Y 2022Y 2023Y 2024Y 2025Q2 Loan Composition Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total C&I 144,158 15.6% 156,703 15.1% 133,051 12.2% 149,185 12.3%
Slide 18: Securities portfolio asset class breakdown
Asset Class Breakdown Commentary Other Securities, • As of June 30, 2025, QNB Bank has ~$544.3 million of debt 4.1% securities (1) ➢ This represents 28.9% of total assets State & Political ➢ ~17% of the portfolio is invested in floating rate Sundiv Secs, securities 17.4% • The securities portfolio c
Slide 19: Well-diversified deposit portfolio
Well-diversified Deposit portfolio, with no single depositor accounting for more than 2.5% of Deposits QNBC Deposit Composition Jumbo Time (>250k) Non-Interest-Bearing Deposits / Total Deposits (%) $54,036 3.3% NIB (1) $201,460 Retail Time 20.00% 12.2% (<250k) 16.70% 16.80% 16.30% $335,483 20.3% 16.
Slide 20: Core deposits versus PA bank holding companies
Core Deposits / Total Deposits (1, 2) (%) 100.0% 98.3% 97.6% 97.6% 97.1% 98.0% 96.8% 96.7% 96.0% 95.2% 94.8% 94.0% 93.7% 92.0% 91.4% 90.0% 89.5% 88.0% 89.7% 86.0% 84.0% 82.0% 80.0% 2020Y 2021Y 2022Y 2023Y 2024Y 2025Q2 QNBC PA Bank Holding Companies Commentary • The Bank has over 100 years of brand v
Slide 21: Cost of interest-bearing deposits vs. Fed Funds rate
• During the previous rate hike cycle, from Q1’16 to Q2’19, QNB Corp’s Cost of Deposits increased from 0.51% to 1.10%, while the Fed Funds Target Rate increased from 0.50% to 2.50% • Similarly, QNB Corp. has been able to keep Cost of Deposits insulated in the recent cycle. From Q1’22 to Q2’25, QNB’s
Slide 22: Spread between assets and deposits increasing
Spread between assets and deposits has been increasing for the last five consecutive quarters 2.40% 2.48% 2.50% 2.31% 6.00% 2.09% 2.02% 2.05% 1.99% 1.96% 1.96% 1.95% 2.00% 5.00% 4.86% 4.81% 4.90% 4.70% 4.78% 4.57% 4.44% 4.00% 4.28% 1.50% 3.77% 3.83% 3.00% 1.00% 2.00% 2.62% 2.74% 2.81% 2.69% 0.50% 2.
Slide 23: Interest rate exposure balanced across scenarios
QNB interest rate exposure is well balanced across rates up/down scenarios Net Interest Income Sensitivity Profile (1) Interest Rate Scenario -200 -100 Base +100 +200 Net Interest Income Change - Next 12 Months -3.9% -1.8% 0.0% 1.4% 2.4% Net Interest Income Change - Next 24 Months -9.2 -4.3% 0.0% 4.
Slide 24: Disciplined on expenses amid inflation
QNBC has remained disciplined on expenses amidst an inflationary macro environment 3.00% 2.69% 2.55% 2.48% 2.51% 2.46% 2.50% 2.38% 2.39% 2.38% 2.36% 2.27% 2.00% 1.89% 1.74% 1.65% 1.60% 1.69% 1.68% 1.65% 1.50% 1.61% 1.55% 1.48% 1.00% 0.50% 0.00% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 (1) Q1'
Slide 25: Improved results led to sustained increase in equity valuation
Improvement in financial results has led to a sustained increase in QNBC’s equity valuation QNBC Closing Stock Price $40.00 P/TBV(1) P/TBV(1) 1.15% 1.21% P/TBV(1) P/TBV(1) 1.22% 1.11% $35.69 $35.00 P/TBV(1) $35.25 $33.69 1.03% $33.92 $30.00 P/TBV(1) 1.05% $29.49 P/TBV(1) P/TBV(1) 0.95% 0.89% $25.99
Slide 26: Equity values remain strong amid macro uncertainties
Equity values remain strong amid macro uncertainties. 60% 50% 40% 30% 20% 10% – (10%) 07/01/24 09/01/24 11/01/24 01/01/25 03/01/25 05/01/25 07/01/25 09/01/25 S&P 500 NASDAQ Bank S&P - Mid-Atl. Banks QNBC Peers Source: S&P Capital IQ Pro; market data as of September 19, 2025 Note: Peers include Mid-A
Slide 27: Appendix
Appendix #ONBBank
Slide 28: Management biographies: Freeman, Lehocky, Cattie
David W. Freeman Years in Banking: 50 President, Chief Executive Officer, and Director At QNB: 15 Mr. Freeman has been the Chief Executive Officer of QNB and the Bank from January 2013 to present. Mr. Freeman served as the President of QNB and the Bank from September 2010 to present. Mr. Freeman als
Slide 29: Management biographies: Covelens, McDonald, Orzehoski
Courtney L. Covelens Years in Banking: 24 Executive VP, Chief Retail & Business Banking Officer At QNB: 24 Ms. Covelens has served as Executive Vice President and Chief Retail Officer and Chief Business Banking Officer of the Bank; she has served in those roles since January 2023. Ms. Covelens serve
Slide 30: Balance sheet: assets
(dollars shown in thousands) Year-ended December 31, As of Quarter End, 2020 2021 2,022 2023 2024 2024Q2 2025Q2 Assets Cash and due from banks $13,422 $9,194 $14,657 $11,447 $11,369 $15,911 $18,078 Interest-bearing deposits in banks $25,909 $4,196 $1,242 $51,210 $39,344 $60,998 $48,393 Total cash an
Slide 31: Balance sheet: liabilities
(dollars shown in thousands) Year-ended December 31, As of Quarter End, 2020 2021 2,022 2023 2024 2024Q2 2025Q2 Liabilities Deposits Demand, non-interest bearing $204,584 $243,006 $231,849 $185,098 $183,499 $190,333 $201,460 Interest- bearing demand $395,364 $468,199 $452,927 $462,712 $537,846 $481,
Slide 32: Interest income and expense
(dollars shown in thousands) Year-ended December 31, YTD 2020 2021 2022 2023 2024 6/30/24 6/30/25 INTEREST INCOME AND EXPENSE Interest Income Interest and fees on loans $36,504 $38,330 $40,922 $53,884 $65,367 $31,240 $35,382 Interest and dividends on available-for-sale & equity securities: Taxable $
Slide 33: Non-interest income and expense
(dollars shown in thousands) Year-ended December 31, YTD 2020 2021 2022 2023 2024 6/30/24 6/30/25 NON-INTEREST INCOME AND EXPENSE Non-Interest Income Net (loss) gain on sales and calls of available-for-sale and equity securities -$47 $926 $266 -$2,077 $919 -$719 $0 Unrealized gain (loss) on equity s
Slide 34: Quarterly interest income and expense
(dollars shown in thousands) As of Quarter End, 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 INTEREST INCOME AND EXPENSE Interest Income Interest and fees on loans $15,250 $15,990 $16,736 $17,391 $17,315 $18,067 Interest and dividends on available-for-sale & equity securities: Taxable $3,325 $3,414 $3,
Slide 35: Quarterly non-interest income and expense
(dollars shown in thousands) As of Quarter End, 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 NON-INTEREST INCOME AND EXPENSE Non-Interest Income Net (loss) gain on sales and calls of available-for-sale and equity securities $377 -$1,096 $224 $1,414 $0 $0 Unrealized gain (loss) on equity securities -$30