QNB Corp. in Quakertown, Pa., has agreed to buy Victory Bancorp in Limerick, Pa.
The $1.9 billion-asset QNB said in a press release that it will pay $41 million in stock for the $500 million-asset Victory. The deal is expected to close in the fourth quarter.
The deal is projected to be about 16% accretive to QNB’s 2026 earnings per share and 19% accretive the following year. It should take a little more than three years for QNB to earn back any dilution to its tangible book value.
Two Victory directors will join QNB’s board, including Joe Major, Victory’s president and CEO. Victor will serve as vice chair.
“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,” Dave Freeman, QNB’s president and CEO, said in the release.
“The combination will result in a strong well-diversified bank, positioning us to accelerate growth,” Freeman added. “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.”
Performance Trust Capital Partners and Stevens & Lee advised QNB. The Kafafian Group and Kilpatrick Townsend & Stockton advised Victory.