Steele Bancorp Reports 170% Increase in Net Income to $4.88 Million for Q1 2026

Steele Bancorp, Inc. reported significant financial growth in its latest quarterly results, with net income reaching $4.88 million for the three months ended March 31, 2026, a substantial increase of 170.1% compared to $1.81 million in the same period last year. This translates to earnings per share of $1.43, up from $0.97 in the prior year. The increase in profitability was driven by a remarkable rise in net interest income, which surged to $12.21 million, a 157.5% increase from $4.74 million in the first quarter of 2025. The company attributed this growth to higher interest income from loans and investments, alongside a favorable shift in the yield on earning assets.

In terms of operational metrics, Steele Bancorp's total assets increased to $1.27 billion, up $7.31 million or 0.6% from the previous quarter. This growth was primarily fueled by a $14.64 million rise in interest-bearing demand deposits. The bank's loan portfolio, however, saw a slight decline, with net loans decreasing to $916.90 million from $918.17 million at the end of 2025. The company’s loan-to-deposit ratio stood at 82.2%, indicating a balanced approach to profitability and liquidity.

Strategically, Steele Bancorp completed its merger with Northumberland Bancorp on August 1, 2025, which has had a significant impact on its financial results. The merger has expanded the bank's branch network and customer base, contributing to increased noninterest income, which rose to $1.57 million from $585,000 year-over-year. This increase was bolstered by new trust fee income and higher ATM fees and debit card income due to increased customer engagement.

The company also reported a recovery of credit losses of $134,000 for the quarter, compared to a provision for credit losses of $70,000 in the same period last year. The allowance for credit losses stood at $9.76 million, representing 1.06% of total loans. This reflects a cautious approach to credit risk management, particularly in light of the economic conditions affecting borrowers.

Looking ahead, Steele Bancorp remains optimistic about its growth trajectory, bolstered by its expanded market presence and improved financial metrics. The company is focused on maintaining its capital adequacy, with a Tier 1 leverage ratio of 8.94% as of March 31, 2026, slightly below the 9% minimum required for its Community Bank Leverage Ratio but within the grace period for compliance. Management is committed to navigating the challenges posed by interest rate fluctuations and economic conditions while continuing to enhance shareholder value.