QNB Corp. ("QNB") (OTCQX: QNBC) and The Victory Bancorp, Inc. ("Victory") (OTCQX: VTYB), have announced that they have entered into a definitive agreement under which QNB will acquire Victory in an all-stock transaction valued at approximately $40.97 million. The transaction is a strategic merger that creates a bank holding company with nearly $2.4 billion in assets and a combined market capitalization of approximately $173 million. Kilpatrick is serving as counsel to Victory in the transaction.

Victory is the parent company of The Victory Bank, a Pennsylvania state-chartered commercial bank founded in 2008 and headquartered in Limerick Township, Pennsylvania. Under the terms of the definitive merger agreement, which was unanimously approved by the boards of directors of both companies, upon the completion of the merger, Victory shareholders will receive 0.5500 shares of QNB common stock for each share of Victory common stock they own.

Kilpatrick’s Financial Institutions Team is annually recognized among the top firms in the nation for its experience in representing financial institutions in the area of mergers and acquisitions. Among the honors it has received, the Financial Institutions Team has been recognized by Chambers USA numerous times in the area of Nationwide Financial Institutions M&A. For more information on our practice please visit our website at Financial Institutions (ktslaw.com).