Steele Bancorp Reports 37.6% Increase in Q2 Net Income, Completes Merger with Northumberland Bancorp

Steele Bancorp, Inc. reported a net income of $1.82 million for the second quarter of 2025, reflecting a 37.6% increase from $1.32 million in the same period last year. This translates to earnings per share of $0.98, up from $0.71 in the prior year. For the first half of 2025, net income reached $3.63 million, a 35.3% increase compared to $2.68 million in the first half of 2024. The growth in profitability was driven by a significant rise in net interest income, which increased by 24% to $4.99 million for the quarter, and by 23.9% to $9.73 million for the six-month period.

Total assets for Steele Bancorp increased by 5.5% to $629.24 million as of June 30, 2025, compared to $596.70 million at the end of 2024. This growth was primarily attributed to a $31.3 million increase in gross loans, which rose to $467.61 million, and a $11.8 million increase in cash and cash equivalents. The bank's loan-to-deposit ratio stood at 90.9% at the end of the second quarter, up from 89.1% at the end of 2024, indicating a continued focus on loan growth.

In terms of strategic developments, Steele Bancorp completed its merger with Northumberland Bancorp on August 1, 2025, which is expected to enhance its market presence and operational efficiency. The merger has resulted in the rebranding of Mifflinburg Bancorp to Steele Bancorp, Inc., and Mifflinburg Bank to Central Penn Bank & Trust. This strategic move is anticipated to create a more competitive entity in the Northcentral Pennsylvania banking market.

Operationally, Steele Bancorp reported an increase in noninterest income, which rose by 27% to $527,000 for the second quarter, driven by higher service charges and mortgage banking revenue. However, noninterest expenses also increased by 10.1% to $3.13 million, largely due to merger-related costs and higher employee benefits. The bank's employee headcount remained stable, supporting its operational needs amid the merger transition.

Looking ahead, Steele Bancorp's management expressed confidence in maintaining its growth trajectory, supported by a strong capital position and a commitment to community banking. The bank's Tier 1 capital increased to $59.77 million, with a Tier 1 leverage ratio of 9.79%, indicating a solid capital base to support future growth initiatives. The management remains vigilant regarding market conditions and potential regulatory changes that could impact operations, while continuing to focus on enhancing customer service and expanding its market share.