Mifflinburg Bancorp Reports 33.2% Increase in Net Income for Q1 2025

Mifflinburg Bancorp, Inc. reported a net income of $1.8 million for the first quarter of 2025, reflecting a 33.2% increase from $1.4 million in the same period of 2024. This translates to earnings per share of $0.97, up from $0.73 a year earlier. The increase in profitability was driven by a rise in net interest income, which grew by 23.8% to $4.7 million, attributed to higher interest income from loans and investments, despite an increase in interest expenses. Total interest income rose to $7.4 million, a 20.4% increase from the previous year, while interest expenses increased to $2.7 million, up 14.8%.

Total assets for Mifflinburg Bancorp increased by $11.2 million, or 1.9%, to $607.9 million as of March 31, 2025, compared to $596.7 million at the end of 2024. This growth was primarily due to a $13.1 million increase in gross loans, which reached $449.4 million, and a $3.8 million rise in cash and cash equivalents. The bank's total deposits also saw a significant increase, rising by $16.9 million to $506.4 million, with noninterest-bearing deposits increasing by 17.4% to $81.9 million.

In terms of operational developments, Mifflinburg Bancorp is in the process of merging with Northumberland Bancorp, a strategic move aimed at enhancing its market presence. The merger agreement, announced in September 2024, is expected to close in the second or third quarter of 2025. Following the merger, Mifflinburg Bancorp will be renamed Steele Bancorp, Inc., and its banking subsidiary will be rebranded as Central Penn Bank & Trust. This merger is anticipated to create a more competitive entity in the regional banking landscape.

The company’s allowance for credit losses increased slightly to $4.5 million, representing 0.99% of total loans, compared to 1.00% at the end of 2024. The increase in the allowance was due to loan growth and higher historical loss rates. Mifflinburg Bancorp's loan-to-deposit ratio stood at 88.8% as of March 31, 2025, indicating a stable liquidity position. The bank's capital ratios remain strong, with total stockholders' equity rising to $58.4 million, a 4.4% increase from the previous quarter, supported by retained earnings and a decrease in accumulated other comprehensive loss.

Looking ahead, Mifflinburg Bancorp aims to continue its growth trajectory while managing risks associated with interest rates and credit quality. The bank's management remains focused on maintaining adequate liquidity and capital levels to support its operations and strategic initiatives, including the upcoming merger. The company is well-positioned to navigate the evolving economic landscape, with a commitment to providing quality financial services to its customers in Northcentral Pennsylvania.