QNB Corp. sells $254M in securities in portfolio repositioning

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.

You May Also Be Interested In

• Faraday Future unveils nine robot models, prices start at $9,990
• Enablence closes C$25M private placement with Collingwood Investments
• Greenland Mines backs U.S.-Denmark-Greenland security pact