Steele Bancorp Reports 111.4% Asset Growth and $22.9 Million Net Income Following NUBC Merger

Steele Bancorp, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, following its merger with Northumberland Bancorp (NUBC) on August 1, 2025. The company’s total assets surged to approximately $1.26 billion, marking an increase of 111.4% from $596.7 million in the previous year. This growth was primarily driven by the acquisition, which added $687.9 million in assets, including $427.2 million in gross loans. The company’s net income also saw a substantial rise, reaching $22.9 million, or $9.15 per share, compared to $4.5 million, or $2.41 per share, in 2024, largely due to a bargain purchase gain of $18.3 million associated with the merger.

In terms of operational metrics, Steele Bancorp's gross loans increased by 110.4% to $918.2 million, while total deposits rose by 126.9% to $1.11 billion. The company reported a loan-to-deposit ratio of 82.7%, down from 89.1% the previous year, indicating a more liquid position post-merger. The number of employees also increased to 177, reflecting the expanded operations following the merger. The bank operates 13 branches across Union, Snyder, Northumberland, and Centre counties in Pennsylvania, and aims to enhance its market share in these regions.

The merger with NUBC involved the issuance of 1,546,725 shares of common stock, valued at $26.00 per share, and a total transaction consideration of approximately $40.45 million. The merger is expected to provide long-term benefits, including increased trading liquidity and enhanced dividends for shareholders. However, the company incurred pre-tax merger-related expenses of $5.52 million, which included costs associated with the integration of NUBC’s operations and systems.

Looking ahead, Steele Bancorp anticipates continued growth and stability, although it acknowledges potential risks related to economic conditions in central Pennsylvania, competition from larger financial institutions, and regulatory changes. The company is committed to maintaining adequate capital levels and managing its liquidity effectively, with a Community Bank Leverage Ratio of 8.56% as of December 31, 2025, slightly below the 9.00% minimum required for well-capitalized status. Management remains optimistic about leveraging the merger to enhance operational efficiencies and expand its customer base in the coming years.