QNB Corp. (NASDAQ: QNBC), the parent company of QNB Bank, announced the sale of $254.4 million in book value of available-for-sale securities as part of a repositioning of a portion of its securities portfolio, according to a press release.

The sold securities carried a weighted-average yield of 1.59% and represented approximately 46.8% of the company's total securities portfolio. The company also unwound $162.0 million in notional amount of pay-fixed swaps.

The transactions are expected to result in a net pre-tax loss of approximately $26.2 million, which will be recorded in the company's third-quarter 2026 financial results. The company estimates it will recover the pre-tax loss in under four years.

Net proceeds are being directed toward purchasing higher-yielding, lower-risk available-for-sale securities and funding loan growth, with a blended expected weighted-average yield of approximately 5.45%.

The company stated the sales had no impact on shareholders' equity or book value per share, as unrealized losses on available-for-sale securities were already reflected as a deduction to shareholders' equity. The company added that both QNB Corp. and QNB Bank capital levels remain above internal minimums and regulatory well-capitalized thresholds.

QNB Bank operates fourteen branches across Bucks, Lehigh, and Montgomery Counties in Pennsylvania, along with two loan production offices in Montgomery and Berks Counties.