QNB (Credit: QNB)
The Quakertown-based QNB Corporation has reached a $40.97-million acquisition deal with Victory Bancorp Inc., the company announced this week.
The all-stock merger will create a new bank holding company with $2.4 billion in assets and a $173 million-combined market capitalization, according to a news release. The company will take the QNB brand and remain headquartered in Quakertown.
Victory, based in Limerick, Montgomery County, secured a deal in which its shareholders each receive 0.5500 shares of QNB common stock for one Victory share. Any outstanding Victory options could be converted into stock options.
“This merger marks an important step forward in further building out a leading Pennsylvania franchise that enhances our ability to serve communities, enrich the local banking experience and deliver outstanding services to our customers,” QNB President CEO Dave Freeman said in a release. Freeman will lead the new company as president and CEO.
Victory Banks are located in Limerick, Horsham, and Spring Township, Berks County.
QNB has 12 branches across Bucks, Montgomery and Lehigh Counties, including Colmar in Hatfield Township and Pennsburg.
“We are delighted to join forces with QNB, an organization that shares our strategic vision and commitment to excellence,” Victory President and CEO Joe Major said in the release. “Given the familiarity between our institutions, boards, and management teams, we are confident that our combined teams will harness the strengths of both banks in an effort to deliver lasting value for our customers, shareholders, communities, and employees.”
Both directors have entered into a support agreement. The acquisition is expected to close by April 2026.
Jeff Lehocky, QNB executive vice president and chief financial officer, said the transaction unlocks financial and strategic synergies for the two companies.
“I’m excited that this brings our bank closer to $2.5 billion in assets (and beyond in short order), increases our market capitalization, and creates greater institutional investor visibility for our story,” he said in a statement. “As we execute on and hopefully exceed our objectives over time, we believe that performance should be welcomed by the market and reflected in our stock price over time, benefiting all stakeholders.”
Furthermore, QNB’s board will be expanded by two members to a total of 12 directors.
Membership will include 10 directors from QNB and two newly appointed directors from Victory, including Major, who will serve as vice chairman of the combined holding company and bank board of directors. Randy Bimes will continue to serve as board chairman, QNB said.
Major said the acquisition builds upon the company’s reputation in Montgomery County and beyond.
“By leveraging the collective expertise and complementary strengths of our management teams, we are confident in our ability to create long-term value for both customers and shareholders,” Freeman said.
