Freeman David W. 4

What Happened

• David W. Freeman, President and Chief Executive Officer of QNB CORP. (QNBC), exercised stock options (transaction code M) on Feb 12, 2026. He acquired two option lots of 3,375 shares each at an exercise price of $32.50 per share. Each lot had a reported value of $109,688 (rounding); the combined cash paid was about $219,375 to acquire 6,750 shares. The filing shows the shares were acquired (not sold).

Key Details

• Transaction date: 2026-02-12; filing date: 2026-02-13 (timely).
• Exercise price: $32.50 per share.
• Shares acquired: two exercises of 3,375 shares = 6,750 shares total.
• Reported value per exercise (rounded): $109,688; approximate total cash paid: $219,375.
• Transaction code: M = exercise or conversion of derivative (stock options).
• Shares owned after the transaction: not specified in the provided filing extract.
• No 10b5-1 plan, tax-withholding, or sale (cashless) notation is shown in the provided data.

Context

• An option exercise is neither a market buy nor a sale; it converts granted options into common shares. Because the filing shows acquisition (not immediate sale), this increased the CEO’s direct share count in QNBC. This type of insider activity is routine when options vest or are exercised; it does not, by itself, indicate the CEO’s view of the company’s short-term prospects.