10-Q

Table of Contents ​

​

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 31, 2025

OR

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                    to

Commission File No. 000-56575

Mercer Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

​	​	​
Maryland	​ ​ ​	92-3452469
(State or Other Jurisdiction of Incorporation or Organization)	​	(I.R.S. Employer Identification Number)
​	​	​
1100 Irmscher Blvd , Celina , Ohio	​	45822
(Address of Principal Executive Offices)	​	(Zip Code)

​

( 419 ) 586-5158

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

YES ☒      NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

​	​
Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
​	Emerging growth company ☒

​

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES ☐ NO ☒

As of February 12, 2025, 1,026,135 shares of the registrant’s common stock, par value $0.01 per share, were issued and outstanding.

​

​

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Table of Contents Mercer Bancorp, Inc.

Form 10-Q

Index

​	​	​	​ ​ ​	Page
Part I. – Financial Information
​	​	​	​	​
Item 1.	​	Consolidated Financial Statements	​	1
​	​	​	​	​
​	​	Balance Sheets as of December 31, 2025 (unaudited) and September 30, 2025 (audited)	​	1
​	​	​	​	​
​	​	Statements of Income for the Three Months Ended December 31, 2025 and 2024 (unaudited)	​	2
​	​	​	​	​
​	​	Statements of Comprehensive Income for the Three Months Ended December 31, 2025 and 2024 (unaudited)	​	3
​	​	​	​	​
​	​	Statements of Changes in Shareholders’ Equity for the Three Months Ended December 31, 2025 and 2024 (unaudited)	​	4
​	​	​	​	​
​	​	Statements of Cash Flows for the Three Months Ended December 31, 2025 and 2024 (unaudited)	​	5
​	​	​	​	​
​	​	Notes to Financial Statements (unaudited)	​	6
​	​	​	​	​
Item 2.	​	Management’s Discussion and Analysis of Financial Condition and Results of Operations	​	30
​	​	​	​	​
Item 3.	​	Quantitative and Qualitative Disclosures about Market Risk	​	38
​	​	​	​	​
Item 4.	​	Controls and Procedures	​	37
​	​	​	​	​
Part II. – Other Information
​	​	​	​	​
Item 1.	​	Legal Proceedings	​	38
​	​	​	​	​
Item 1A.	​	Risk Factors	​	38
​	​	​	​	​
Item 2.	​	Unregistered Sales of Equity Securities and Use of Proceeds	​	38
​	​	​	​	​
Item 3.	​	Defaults Upon Senior Securities	​	38
​	​	​	​	​
Item 4.	​	Mine Safety Disclosures	​	39
​	​	​	​	​
Item 5.	​	Other Information	​	38
​	​	​	​	​
Item 6.	​	Exhibits	​	39
​	​	​	​	​
​	​	Signature Page	​	41

​

​

​

​

​

​

​

Table of Contents Part I. – Financial Information

Item 1.Financial Statements

Mercer Bancorp, Inc.

Consolidated Balance Sheets

December 31, 2025 (unaudited) and September 30, 2025 (audited)

​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​	September 30,
​	​ ​ ​	2025		​ ​ ​	2025
Assets	​	​	​	​	​	​
Cash and due from banks	​	$	2,501,676	​	$	2,576,165
Interest-bearing deposits in other financial institutions	​		1,523,558	​		713,022
Federal funds sold	​		710,000	​		2,074,000
Cash and cash equivalents	​		4,735,234	​		5,363,187
​	​	​	​	​	​	​
Interest-bearing time deposits	​		100,000	​		100,000
Available-for-sale securities, at fair value	​		9,823,586	​		9,656,114
Held-to-maturity securities, at amortized cost	​		63,435	​		67,723
Loans held for sale	​		7,094,236	​		8,051,398
Loans receivable	​		143,060,642	​		143,257,565
Allowance for credit losses	​		(913,370)	​		(960,307)
Net loans	​		142,147,272	​		142,297,258
​	​	​	​	​	​	​
Premises and equipment	​		5,136,383	​		5,151,721
Federal Home Loan Bank stock	​		1,046,900	​		1,208,100
Bank owned life insurance	​		1,888,660	​		1,876,454
Accrued interest receivable	​		553,245	​		678,357
Federal Home Loan Bank lender risk account	​		428,991	​		434,749
Deferred federal income taxes	​		216,330	​		233,548
Other assets	​		958,967	​		1,053,048
​	​	​	​	​	​	​
Total assets	​	$	174,193,239	​	$	176,171,657
​	​	​	​	​	​	​
Liabilities and Shareholders' Equity	​		​	​		​
​	​	​	​	​	​	​
Liabilities	​		​	​		​
Deposits	​		​	​		​
Demand - non interest bearing	​	$	17,007,086	​	$	58,459,476
Demand - interest bearing	​	$	43,683,408	​	$	—
Savings and money market	​		34,432,859	​		35,242,936
Time	​		51,794,587	​		50,285,617
​	​	​	​	​	​	​
Total deposits	​		146,917,940	​		143,988,029
​	​	​	​	​	​	​
Advances from the Federal Home Loan Bank	​		1,000,000	​		6,000,000
Directors plan liability	​		358,343	​		370,729
Accrued interest payable and other liabilities	​		923,535	​		1,189,561
​	​	​	​	​	​	​
Total liabilities	​		149,199,818	​		151,548,319
​	​	​	​	​	​	​
Commitments and Contingencies	​		​	​		​
​	​	​	​	​	​	​
Shareholders' Equity	​		​	​		​
Preferred stock - authorized 1,000,000 shares of $0.01 par value, none issued	​		—	​		—
Common stock - authorized 9,000,000 shares of $0.01 par value, issued and outstanding 1,026,135 and 1,027,477 shares	​	​	9,946	​	​	9,959
at December 31, 2025 and September 30, 2025, respectively	​	​	​	​	​	​
Additional paid-in capital	​	​	8,421,360	​	​	8,368,876
Shares acquired by ESOP	​	​	(654,367)	​	​	(709,269)
Shares issued to irrevocable trust	​	​	96,360	​	​	96,360
Shares held in irrevocable trust	​	​	(96,360)	​	​	(96,360)
Retained earnings	​		17,514,888	​		17,343,618
Accumulated other comprehensive loss	​		(298,406)	​		(389,846)
​	​	​	​	​	​	​
Total shareholders' equity	​		24,993,421	​		24,623,338
​	​	​	​	​	​	​
Total liabilities and shareholders' equity	​	$	174,193,239	​	$	176,171,657

See Notes to Consolidated Financial Statements

​ 1

Table of Contents Mercer Bancorp, Inc.

Consolidated Statements of Income

For the Three Months Ended December 31, 2025 and 2024

(unaudited)

​

​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
Interest Income		​	​		​	​
Loans	​	$	2,192,413	​	$	2,170,292
Investment securities	​		83,536	​		85,967
Interest-bearing deposits and other	​		63,957	​		77,398
​	​	​	​	​	​	​
Total interest income	​		2,339,906	​		2,333,657
​	​	​	​	​	​	​
Interest Expense	​		​	​		​
Deposits	​		550,387	​		463,186
Federal Home Loan Bank advances	​		42,233	​		277,186
​	​	​	​	​	​	​
Total interest expense	​		592,620	​		740,372
​	​	​	​	​	​	​
Net Interest Income	​		1,747,286	​		1,593,285
​	​	​	​	​	​	​
Provision for Credit Losses	​		—	​		—
​	​	​	​	​	​	​
Net Interest Income After Provision for Credit Losses	​		1,747,286	​		1,593,285
​	​	​	​	​	​	​
Noninterest Income	​		​	​		​
Service fees on deposits	​		62,915	​		79,354
Late charges and fees on loans	​		40,010	​		35,653
Gain on sale of loans	​		—	​		5,168
Loan servicing fees	​		7,286	​		9,599
Loss on sale of investments	​	​	(12,088)	​		—
Gain on sale of repossessed assets	​		528	​		—
Bank owned life insurance	​		12,206	​		16,570
Other income	​		3,917	​		5,364
​	​	​	​	​	​	​
Total noninterest income	​		114,774	​		151,708
​	​	​	​	​	​	​
Noninterest Expense	​		​	​		​
Salaries and employee benefits	​		759,099	​		627,528
Directors fees	​		22,800	​		19,200
Occupancy and equipment	​		168,971	​		122,441
Data processing fees	​		197,480	​		179,578
Franchise taxes	​		34,040	​		31,777
FDIC insurance premiums	​		18,836	​		21,024
Professional services	​		146,321	​		104,570
Deposit account services expense	​		36,475	​		73,773
Advertising	​		28,158	​		23,995
Loan expenses	​		60,408	​		81,544
Other	​		180,702	​		114,135
​	​	​	​	​	​	​
Total noninterest expense	​		1,653,290	​		1,399,565
​	​	​	​	​	​	​
Income before income taxes	​		208,770	​		345,428
​	​	​	​	​	​	​
Provision for income taxes	​		37,500	​		69,120
​	​	​	​	​	​	​
Net Income	​	$	171,270	​	$	276,308
​	​	​	​	​	​	​
Earnings per share - basic	​	$	0.18	​	$	0.29
​	​	​	​	​	​	​
Earnings per share - diluted	​	$	0.18	​	$	0.29

​ 2

Table of Contents See Notes to Consolidated Financial Statements

​

Mercer Bancorp, Inc.

Consolidated Statements of Comprehensive Income

For the Three Months Ended December 31, 2025 and 2024

(unaudited)

​

​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
Net income	​	$	171,270	​	$	276,308
​	​	​	​	​	​	​
Other comprehensive (loss) income:	​		​	​		​
Net unrealized (losses) gains on available-for-sale securities	​		103,658	​		(257,556)
​	​	​	​	​	​	​
Reclassification adjustment for realized loss on sale of securities	​		12,088	​		—
​	​	​	​	​	​	​
Tax benefit (expense)	​		(24,306)	​		54,087
​	​	​	​	​	​	​
Other comprehensive (loss) income	​		91,440	​		(203,469)
​	​	​	​	​	​	​
Comprehensive income	​	$	262,710	​	$	72,839

​

See Notes to Consolidated Financial Statements

​ 3

Table of Contents Mercer Bancorp, Inc.

Consolidated Statements of Changes in Shareholders’ Equity

For the Three Months Ended December 31, 2025 and 2024

(unaudited)

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​		​	​	​	​	​	​	​	​	​	​	​	​	​	Accumulated		​	​	​
​	​	​	​	​	Additional		​	Shares		​	Shares Issued		​	Shares Held		​	​	​	​	Other		​	​	​
For the three months ended	​	Common		​	Paid-in		​	Acquired by		​	to Irrevocable		​	to Irrevocable		​	Retained		​	Comprehensive		​	​	​
December 31, 2025	​ ​ ​	Stock		​ ​ ​	Capital		​ ​ ​	ESOP		​ ​ ​	Trust		​ ​ ​	Trust		​ ​ ​	Earnings		​ ​ ​	Loss		​ ​ ​	Total
Balance at October 1, 2025	​	$	9,959	​	$	8,368,876	​	$	(709,269)	​	$	96,360	​	$	(96,360)	​	$	17,343,618	​	$	(389,846)	​	$	24,623,338
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	​		—	​		—	​		—	​		—	​		—	​		171,270	​		—	​		171,270
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Share based compensation	​		—	​		41,783	​		—	​		—	​		—	​		—	​		—	​		41,783
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
ESOP shares allocated to participants	​		—	​		31,740	​		54,560	​		—	​		—	​		—	​		—	​		86,300
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Repurchase of common stock, 1,342 shares	​		(13)	​		(21,039)	​		342	​		—	​		—	​		—	​		—	​		(20,710)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Other comprehensive income	​		—	​		—	​		—	​		—	​		—	​		—	​		91,440	​		91,440
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Balance at December 31, 2025	​	$	9,946	​	$	8,421,360	​	$	(654,367)	​	$	96,360	​	$	(96,360)	​	$	17,514,888	​	$	(298,406)	​	$	24,993,421
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
For the three months ended	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2024	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Balance at October 1, 2024	​	$	10,229	​	$	8,658,653	​	$	(763,820)	​	$	96,360	​	$	(96,360)	​	$	16,371,313	​	$	(323,342)	​	$	23,953,033
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income	​		—	​		—	​		—	​		—	​		—	​		276,308	​		—	​		276,308
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
ESOP shares allocated to participants	​		—	​		13,987	​		54,552	​		—	​		—	​		—	​		—	​		68,539
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Other comprehensive loss	​	​	—	​		—	​		—	​		—	​		—	​		—	​		(203,469)	​		(203,469)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Balance at December 31, 2024	​	$	10,229	​	$	8,672,640	​	$	(709,268)	​	$	96,360	​	$	(96,360)	​	$	16,647,621	​	$	(526,811)	​	$	24,094,411

​

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​

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See Notes to Consolidated Financial Statements

​ 4

Table of Contents ​

Mercer Bancorp, Inc.

Consolidated Statements of Cash Flows

For the Three Months Ended December 31, 2025 and 2024

(unaudited)

​

​	​	​	​	​	​	​
​	​ ​ ​	Three Months Ended
​	​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
Operating Activities		​	​		​	​
Net income	​	$	171,270	​	$	276,308
Adjustments to reconcile net income to net cash provided (used ) in operating activities:	​		​	​		​
Depreciation and amortization	​		115,475	​		87,653
Amortization of premiums and discounts	​		(1,185)	​		3,311
Amortization of deferred loan fees	​		(26,342)	​		(19,041)
Deferred income taxes	​		(7,088)	​		19,598
ESOP compensation expense	​		86,300	​		68,539
Gain on sale of loans	​		—	​		(5,168)
Proceeds from sales of loans	​		—	​		256,094
Loans originated for sale	​		—	​		(706,559)
Loss on sale of investment securities	​		12,088	​		—
Gain on sale of repossessed assets	​		(528)	​		—
Increase in cash surrender value of bank-owned life insurance	​		(12,206)	​		(11,822)
Share based compensation	​		41,783	​		—
Changes in:	​		​	​		​
Accrued interest receivable	​		125,112	​		55,326
Other assets	​		122,149	​		123,509
Other liabilities	​		(276,897)	​		(161,643)
​	​	​	​	​	​	​
Net cash provided by (used in) operating activities	​		349,931	​		(13,895)
​	​	​	​	​	​	​
Investing Activities	​		​	​		​
Purchases of available-for-sale securities	​		(2,266,933)	​		(277,432)
Proceeds from sales of available-for-sale securites	​		2,058,697	​		—
Proceeds from calls, maturities and paydowns of available-for-sale securities	​		157,900	​		151,197
Principal repayments on securities held-to-maturity	​		4,082	​		7,072
Net change in loans	​		1,075,417	​		179,929
Purchase of premises and equipment	​		(96,648)	​		(103,663)
Purchases of FHLB stock	​		—	​		(80,100)
Proceeds from redemption of FHLB stock	​		161,200	​		—
Proceeds from sale of repossessed assets	​		19,200	​		—
​	​	​	​	​	​	​
Net cash provided (used in) investing activities	​		1,112,915	​		(122,997)
​	​	​	​	​	​	​
Financing Activities	​		​	​		​
Net increase (decrease) in deposits	​		2,929,911	​		(877,800)
Proceeds from FHLB advances - short term	​	​	—	​	​	21,000,000
Repayment of FHLB advances - short term	​		(5,000,000)	​		(21,000,000)
Repurchase of common stock	​	​	(20,710)	​	​	—
​	​	​	​	​	​	​
Net cash used in financing activities	​		(2,090,799)	​		(877,800)
​	​	​	​	​	​	​
Change in Cash and Cash Equivalents	​		(627,953)	​		(1,014,692)
​	​	​	​	​	​	​
Cash and Cash Equivalents, Beginning of Period	​		5,363,187	​		5,897,596
​	​	​	​	​	​	​
Cash and Cash Equivalents, End of Period	​	$	4,735,234	​	$	4,882,904
​	​	​	​	​	​	​
Supplemental Disclosure of Cash Flow Information	​		​	​		​
Cash paid during the period for:	​		​	​		​
Interest on deposits and borrowings	​	$	2,590,584	​	$	653,889
​	​	​	​	​	​	​
Supplemental Disclosure of Noncash Investing Activities	​		​	​		​
Transfers from loans to repossessed assets	​	$	18,672	​	$	—

​

See Notes to Consolidated Financial Statements

​ 5

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Note 1:    Nature of Operations and Summary of Significant Accounting Policies

Inclusion of Unaudited Information

The financial information included herein as of December 31, 2025, and for the interim three month periods ended December 31, 2025 and 2024 is unaudited. However, in management’s opinion, the information reflects all normal, recurring adjustments that are necessary for a fair presentation. The results shown for the three months ended December 31, 2025, are not necessarily indicative of the results to be obtained for the fiscal year ending September 30, 2026.

Nature of Operations

Mercer Bancorp, Inc. (“Mercer Bancorp” or the “Company”) is a Maryland corporation incorporated on March 7, 2023, to serve as the bank holding company for Mercer Savings Bank (“Mercer Savings” or the “Bank”) in connection with the Bank’s conversion from the mutual form of organization to the stock form of organization (the “Conversion”). The Conversion was completed on July 26, 2023. In connection with the Conversion, Mercer Bancorp acquired 100% ownership of Mercer Savings and the Company offered and sold 972,970 shares of its common stock at $10.00 per share, for gross offering proceeds of $9,729,700. The Company also contributed 50,000 shares of common stock and $100,000 in cash to Mercer Savings Charitable Foundation, Inc.

Mercer Savings is an Ohio chartered stock bank engaged primarily in the business of providing a variety of deposit and lending services to individual customers primarily in Mercer and Darke counties in Ohio, and Adams and Jay counties in Indiana. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential and commercial mortgage, agricultural, commercial, home equity lines of credit and installment loans, and indirect automobile loans. Its operations are conducted through its four office locations in Celina, Ft. Recovery and Greenville, Ohio. The Bank faces competition from other financial institutions and is subject to the regulation of certain federal and state banking agencies and undergoes periodic examinations by those regulatory authorities.

Principles of Consolidation

The consolidated financial statements as of and for the three months ended December 31, 2025, include the accounts of the Company and the Bank, its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of mortgage servicing rights and deferred tax assets and fair values of financial instruments. 6

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Debt Securities

Debt securities held by the Company generally are classified and recorded in the financial statements as follows:

Classified as	​ ​ ​	Description	​ ​ ​	Recorded at
Held to maturity (“HTM”)		Certain debt securities that management has the positive intent and ability to hold to maturity		Amortized cost, net of allowance for credit losses
Trading		Securities that are bought and held principally for the purpose of selling in the near term and, therefore, held for only a short period of time		Fair value, with changes in fair value included in earnings
Available for sale (“AFS”)		Securities not classified as HTM or trading		Fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss)

​

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities, identified as the call date as to premiums and maturity date as to discounts. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held for Sale

Mortgage and indirect auto loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.

Lender Risk Account (LRA)

The Federal Home Loan Bank (FHLB) requires institutions participating in its mortgage loan sales program to place a portion of the sale proceeds in a lender risk account. The LRA is maintained to offset any credit losses associated with loans sold to the FHLB by the participating institution as well as losses experienced by the overall loan pool should an individual institution’s LRA be fully exhausted. The loan sale agreements provide for the FHLB to begin distributions of the LRA funds to the Company after loan pools have had five years of payment history. After five years, the required LRA balance is recalculated at least annually and excess amounts are returned to the participating institutions.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances, adjusted for unearned income, charge-offs, the allowance for credit losses and any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For individually evaluated loans that are considered to be solely collateral 7

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Bank adheres to delinquency thresholds established by applicable regulatory guidance to determine the charge-off timeframe for these loans. Loans at these delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

When cash payments are received on individually evaluated loans, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Loans to borrowers experiencing financial difficulties that have been modified recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least nine months.

Allowance for Credit Losses

​

Available-for-sale securities

​

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income.

​

For securities available-for-sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. Management concluded that no allowance for credit losses was required on available-for-sale securities at December 31, 2025 and September 30, 2025.

​

Accrued interest receivable on available-for-sale debt securities totaled $49,224 and $86,443 at December 31, 2025 and September 30, 2025, respectively, and is included within accrued interest receivable on the balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

​

​

​

​

​ 8

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Held-to-Maturity Securities

​

The Company measures expected credit losses on held-to-maturity debt securities, which are comprised of U.S. government sponsored enterprise mortgage-back securities and residential mortgage-backed securities. The Company’s residential mortgage-backed security holdings are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Management concluded that no allowance for credit losses was required on held-to-maturity securities at December 31, 2025 and September 30, 2025.

​

Accrued interest receivable on held-to-maturity debt securities totaled $334 and $334 at December 31, 2025 and September 30, 2025, respectively, and is included within accrued interest receivable on the balance sheet. This amount is excluded from the estimate of expected credit losses. Held-to-maturity debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held-to-maturity debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

​

Loans

​

The allowance for credit losses (ACL) is a valuation allowance that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loan losses are charged against the allowance when management believes the collectibility of a loan balance is doubtful. Subsequent recoveries, if any, are credited to the allowance. Management’s determination of the adequacy of the ACL is based on the assessment of the expected credit losses on loans over the expected life of the loan. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged off and expected to be charged off. The Company made the policy election to exclude accrued interest receivable on loans from the estimate of credit losses.

​

Management estimates the ACL balance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience of a defined peer group, by affiliate, paired with economic forecasts provide the basis for the quantitatively modeled estimates of expected credit losses. The Company adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the qualitative factors.

​

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the average historical loss method to measure the quantitative portion of the ACL over the forecast and reversion periods.

​

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The company made the policy election to exclude accrued interest receivable on loans from the estimate of credit losses.

​

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modified to a borrower experiencing financial difficulty will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

​

Accrued interest receivable on loans totaled $491,592 and $560,972 at December 31, 2025 and September 30, 2025, respectively, and is included within accrued interest receivable on the balance sheet. This amount is excluded from the estimate of expected credit losses.

​ 9

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

In the course of working with borrowers, the Bank may choose to restructure the contractual terms of certain loans. Terms may be modified to fit the ability of the borrower to repay in line with the borrower’s current financial status, and the modification of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms or a combination of the two. If such efforts by the Bank do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Bank may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan.

It is the Bank’s policy that any loans modified for borrowers experiencing financial difficulty on nonaccrual status prior to being modified remain on nonaccrual status until nine months of satisfactory borrower performance, at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Bank reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan

Unfunded Commitments

​

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on unfunded commitments is adjusted through the provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the related ACL methodology.

In the course of working with borrowers, the Bank may choose to restructure the contractual terms of certain loans. Terms may be modified to fit the ability of the borrower to repay in line with the borrower’s current financial status, and the modification of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms or a combination of the two. If such efforts by the Bank do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Bank may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan.

It is the Bank’s policy that any loans modified for borrowers experiencing financial difficulty on nonaccrual status prior to being modified remain on nonaccrual status until nine months of satisfactory borrower performance, at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Bank reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan.

Servicing Assets

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are included in other assets on the consolidated balance sheets.

Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. No changes in valuation allowances have been reported on the income statements. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. 10

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Servicing fee income, which is reported on the consolidated income statement as other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income.

Employee Stock Ownership Plan (ESOP)

The cost of shares issued to the Employee Stock Ownership Plan (“ESOP”), but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the average fair value of shares as they are committed to be released to participant accounts.

​

Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Unallocated common shares held by the ESOP are shown as a reduction in shareholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted earnings per share calculations until they are committed to be released.

Diluted earnings per share is adjusted for the dilutive effects of stock-based compensation and is calculated using the two-class method or the treasury stock method. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock-based compensation with the proceeds used to purchase treasury shares at the average market price for the period.

Revenue Recognition

The Company accounts for certain revenues in accordance with Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC 606) and all subsequent ASUs that modified ASC 606. ASC 606 provides that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The majority of the Company’s revenue, including net interest income, fees related to loans and loan commitments, net securities gains (losses), gain on sale of loans and income from bank-owned life insurance are not included within the scope of ASC 606. For the revenue streams in the scope of ASC 606, service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All of the Company’s in scope revenue from contracts with customers is recognized within other noninterest income.

Deposit Services. The Bank generates revenues through fees charged to depositors related to deposit account maintenance fees, overdrafts, ATM fees, wire transfers and additional miscellaneous services provided at the request of the depositor.

For deposit-related services, revenue is recognized when performance obligations are satisfied, which is, generally, at a point in time.

​

Stock Compensation Plans

​

The Company accounts for stock compensation in accordance with accounting guidance set forth in Financial Accounting Standards Board (“FASB”) ASC Topic 718, Compensation—Stock Compensation, which requires that compensation costs relating to share-based payment transactions be recognized in financial statements. The cost is measured based on the grant date fair value of the equity instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. 11

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The stock compensation accounting guidance requires that compensation costs for all stock awards be calculated and recognized over the directors or employees’ service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options. An option is considered to be forfeited, if the grant stock option were not exercised prior to vesting. At the date of grant, the Bank estimates the forfeiture rate as part of its initial determination of the fair-value of options granted and then adjusts forfeitures as they occur.

​

Note 2:    Debt Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	Gross		​ ​ ​	Gross		​ ​ ​	​	​
​	​	Amortized		​	Unrealized		​	Unrealized		​	Approximate
​	​	Cost		​	Gains		​	Losses		​	Fair Value
Available-for-sale Securities:	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​
U.S. Government agencies	​	$	1,098,426	​	$	18,497	​	$	(3,565)	​	$	1,113,358
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		3,768,449	​		37,659	​		(163,788)	​		3,642,320
State and political subdivisions	​		5,334,440	​		19,245	​		(285,777)	​		5,067,908
​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	$	10,201,315	​	$	75,401	​	$	(453,130)	​	$	9,823,586

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Gross		​	Gross		​	​	​
​	​	Amortized		​	Unrealized		​	Unrealized		​	Approximate
​	​ ​ ​	Cost		​ ​ ​	Gains		​ ​ ​	Losses		​ ​ ​	Fair Value
Available-for-sale Securities:		​	​		​	​		​	​		​	​
September 30, 2025		​	​		​	​		​	​		​	​
U.S. Government agencies	​		2,476,121	​		17,389	​		(5,960)	​		2,487,550
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		3,984,674	​		26,641	​		(188,437)	​		3,822,878
State and political subdivisions	​		3,688,794	​		—	​		(343,108)	​		3,345,686
​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	$	10,149,589	​	$	44,030	​	$	(537,505)	​	$	9,656,114

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Gross		​	Gross		​	​	​
​	​	Amortized		​	Unrealized		​	Unrealized		​	Approximate
​	​ ​ ​	Cost		​ ​ ​	Gains		​ ​ ​	Losses		​ ​ ​	Fair Value
Held-to-maturity Securities:		​	​		​	​		​	​		​	​
December 31, 2025		​	​		​	​		​	​		​	​
Mortgage-backed Government Sponsored Enterprises (GSEs)	​	$	63,435	​	$	—	​	$	(509)	​	$	62,926
​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Gross		​	Gross		​	​	​
​	​	Amortized		​	Unrealized		​	Unrealized		​	Approximate
​	​	Cost		​ ​ ​	Gains		​ ​ ​	Losses		​ ​ ​	Fair Value
Held-to-maturity Securities:	​	​	​	​	​	​	​	​	​	​	​	​
September 30, 2025	​		​	​		​	​		​	​		​
Mortgage-backed Government Sponsored Enterprises (GSEs)	​	$	67,723	​	$	—	​	$	(543)	​	$	67,180

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Notes to Consolidated Financial Statements

The Company had no allowance for credit losses on available-for-sale and held-to-maturity securities at December 31, 2025 and September 30, 2025.

​

The amortized cost and fair value of available-for-sale securities at December 31, 2025 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties:

​

​	​	​	​	​	​	​
​	​	Amortized		​	Fair
​	​ ​ ​	Cost		​ ​ ​	Value
December 31, 2025		​	​		​	​
Within one year	​	$	—	​	$	—
One to five years	​		—	​		—
Five to ten years	​		1,331,555	​		1,310,509
After ten years	​		5,101,311	​		4,870,757
​	​		6,432,866	​		6,181,266
Mortgage-backed GSEs	​		3,768,449	​		3,642,320
Totals	​	$	10,201,315	​	$	9,823,586

​

Maturity information for held-to-maturity securities is not presented since expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was approximately $1.1 million at December 31, 2025 and September 30, 2025.

Proceeds from sales of available for sale securities totaled approximately $2.1 million during the three-month period ended December 31, 2025, resulting in gross realized losses of $12,000. There were no sales of available for sale securities during the three-month period end December 31, 2024.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments, comprised of 20 securities at December 31, 2025 and 25 securities at September 30, 2025, was approximately $6.5 million and $8.4 million or 66% and 86%, respectively, of the fair value of the Company’s total investment portfolio. These declines primarily resulted from changes in market interest rates.

Based on evaluation of available evidence, including recent changes in market interest rates and information obtained from regulatory filings, management believes the declines in fair value for these securities are not credit-related. 13

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses, for which an allowance for credit loss has not been recorded, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and September 30, 2025:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	December 31, 2025
​	​	Less than 12 Months					​	12 Months or More					​	Total
​	​	Fair		​	Unrealized		​	Fair		​	Unrealized		​	Fair		​	Unrealized
Description of Securities	​	Value		​	Losses		​	Value		​	Losses		​	Value		​	Losses
Available for sale	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
U.S. Government agencies	​	$	617,978	​	$	(3,565)	​	$	—	​	$	—	​	$	617,978	​	$	(3,565)
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		—	​		—	​		2,811,650	​		(163,788)	​		2,811,650	​		(163,788)
State and political subdivisions	​		—	​		—	​		3,016,245	​		(285,777)	​		3,016,245	​		(285,777)
​	​	$	617,978	​	$	(3,565)	​	$	5,827,895	​	$	(449,565)	​	$	6,445,873	​	$	(453,130)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Held to maturity	​		​	​		​	​		​	​		​	​		​	​		​
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		—	​	$	—	​	$	62,926	​		(509)	​		62,926	​		(509)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	$	617,978	​	$	(3,565)	​	$	5,890,821	​	$	(450,074)	​	$	6,508,799	​	$	(453,639)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	September 30, 2025
​	​	Less than 12 Months					​	12 Months or More					​	Total
​	​	Fair		​	Unrealized		​	Fair		​	Unrealized		​	Fair		​	Unrealized
Description of Securities	​	Value		​	Losses		​	Value		​	Losses		​	Value		​	Losses
Available for sale	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
U.S. Government agencies	​	$	—	​	$	—	​	$	1,994,040	​	$	(5,960)	​	$	1,994,040	​	$	(5,960)
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		560,974	​		(15,975)	​		2,418,879	​		(172,462)	​		2,979,853	​		(188,437)
State and political subdivisions	​		1,414,624	​		(67,653)	​		1,931,062	​		(275,455)	​		3,345,686	​		(343,108)
​	​	$	1,975,598	​	$	(83,628)	​	$	6,343,981	​	$	(453,877)	​	$	8,319,579	​	$	(537,505)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Held to maturity	​		​	​		​	​		​	​		​	​		​	​		​
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		—	​		—	​		67,180	​		(543)	​		67,180	​		(543)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	$	1,975,598	​	$	(83,628)	​	$	6,411,161	​	$	(454,420)	​	$	8,386,759	​	$	(538,048)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

U.S. Government Agencies and State and Political Subdivisions

Unrealized losses on these securities have not been recognized because the issuers’ bonds are of high credit quality, values have only been impacted by changes in interest rates since the securities were purchased, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date. Because the decline in market value was attributable to changes in interest rates, and not credit quality, and because the Company typically does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company has not established an allowance for credit losses for these securities at December 31, 2025 and September 30, 2025. 14

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Mortgage-backed GSEs

The unrealized losses on the Company’s investment in residential mortgage-backed government sponsored enterprises were caused primarily by changes in interest rates. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates, and not credit quality, and because the Company typically does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company has not established an allowance for credit losses for these securities at December 31, 2025 and September 30, 2025.

​

Note 3:    Loans and Allowance for Credit Losses

Categories of loans were as follows:

​

​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​	September 30,
​	​ ​ ​	2025		​ ​ ​	2025
​	​	**** ​
Real estate loans:		​	​	​	​	​
Residential	​	$	82,973,747	​	$	78,774,355
Multi-family	​		1,189,731	​		1,204,664
Agricultural	​		42,174,498	​		46,317,040
Commercial	​		2,303,098	​		2,326,429
Construction and land	​		4,452,493	​		4,264,994
Home equity line of credit (HELOC)	​		4,789,750	​		4,771,614
Commercial and industrial	​		1,078,903	​		1,233,406
Consumer	​		4,831,305	​		5,085,548
​	​	​	​	​	​	​
Total loans	​		143,793,525	​		143,978,050
​	​	​	​	​	​	​
Less:	​		​	​		​
Undisbursed loans in process	​		430,384	​		415,915
Net deferred loan fees	​		302,499	​		304,570
Allowance for credit losses	​		913,370	​		960,307
​	​	​	​	​	​	​
Net loans	​	$	142,147,272	​	$	142,297,258

​

Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of these loans at December 31, 2025 and September 30, 2025, were approximately $16.0 million and $16.4 million respectively. At December 31, 2025 and September 30, 2025 the mortgage-servicing rights included in other assets on the balance sheet were approximately $108,000 and $111,000, respectively.

​ 15

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months ended December 31, 2025 and 2024.

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended December 31, 2025
​	​	​		​	Provision		​	​		​	​		​	​
​	​	Balance		​	(credit)		​	​		​	​		​	Balance
​	​ ​ ​	October 1, 2025		​ ​ ​	for credit losses		​ ​ ​	Charge-offs		​ ​ ​	Recoveries		​ ​ ​	December 31, 2025
​	​	**** ​
Real estate loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential	​	$	745,709	​	$	(31,682)	​	$	—	​	$	—	​	$	714,027
Multi-family	​		2,409	​		(30)	​		—	​		—	​		2,379
Agricultural	​		92,634	​		(8,577)	​		—	​		—	​		84,057
Commercial	​		4,653	​		(65)	​		—	​		—	​		4,588
Construction and land	​		8,530	​		375	​		—	​		—	​		8,905
Home equity line of credit (HELOC)	​		14,315	​		54	​		—	​		—	​		14,369
Commercial and industrial	​		2,453	​		(295)	​		—	​		—	​		2,158
Consumer	​		89,604	​		40,220	​		(105,076)	​		58,139	​		82,887
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Allowance for credit losses on loans	​	$	960,307	​	$	—	​	$	(105,076)	​	$	58,139	​	$	913,370
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended December 31, 2024
​	​	​		​	Provision		​	​		​	​		​	​
​	​	Balance		​	(credit)		​	​		​	​		​	Balance
​	​ ​ ​	October 1, 2024		​ ​ ​	for credit losses		​ ​ ​	Charge-offs		​ ​ ​	Recoveries		​ ​ ​	December 31, 2024
Real estate loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential	​	$	691,852	​	$	(27,799)	​	$	—	​	$	—	​	$	664,053
Multi-family	​		2,525	​		(24)	​		—	​		—	​		2,501
Agricultural	​		107,284	​		4,964	​		—	​		—	​		112,248
Commercial	​		4,917	​		(319)	​		—	​		—	​		4,598
Construction and land	​		92,660	​		(10,875)	​		—	​		—	​		81,785
Home equity line of credit (HELOC)	​		14,910	​		(215)	​		—	​		—	​		14,695
Commercial and industrial	​		3,314	​		44	​		—	​		—	​		3,358
Consumer	​		45,806	​		34,224	​		(3,497)	​		—	​		76,533
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total loans	​	$	963,268	​	$	—	​	$	(3,497)	​	$	—	​	$	959,771

​

​

​

​

The Company had $629,000 of loans individually evaluated at December 31, 2025, and $1.3 million of loans individually evaluated at September 30, 2025. The Company had no loans identified as collateral dependent at December 31, 2025 or September 30, 2025.

​ 16

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

​

The Company has adopted a standard loan grading system for all loans, as follows:

Pass. Loans of sufficient quality, which generally are protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral.

Special Mention. Loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date.

Substandard. Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Usually, this classification includes all 90 days or more, non-accrual, and past due loans.

Doubtful. Loans which have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss. Loans considered uncollectible and of such little value that continuance as an asset without the establishment of a specific reserve is not warranted.

Risk characteristics of each loan portfolio segment are described as follows:

Residential Real Estate

These loans include first liens and junior liens on 1-4 family residential real estate (both owner and non-owner occupied). The main risks for these loans are changes in the value of the collateral and stability of the local economic environment and its impact on the borrowers’ employment. Management specifically considers unemployment and changes in real estate values in the Bank’s market area.

Multi-family Real Estate

These loans include loans on residential real estate secured by property with five or more units. The main risks are changes in the value of the collateral, ability of borrowers to collect rents, vacancy and changes in the tenants’ employment status. Management specifically considers unemployment and changes in real estate values in the Bank’s market area.

Agriculture Real Estate

These loans are primarily loans on farm ground and include loans secured by residential properties located on farm ground, but agricultural activities may not be the primary occupation of the borrowers. The main risks are changes in the value of the collateral and changes in the economy or borrowers’ business operations. Management specifically considers unemployment and changes in real estate values in the Bank’s market area.

Commercial Real Estate

These loans are generally secured by owner-occupied commercial real estate including warehouses and offices. The main risks are changes in the value of the collateral and ability of borrowers to successfully conduct their business operations. Management specifically considers unemployment and changes in real estate values in the Bank’s market area. 17

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Construction and Land Real Estate

These loans include construction loans for 1-4 family residential and commercial properties (both owner and non-owner occupied) and first liens on land. The main risks for construction loans include uncertainties in estimating costs of construction and in estimating the market value of the completed project. The main risks for land loans are changes in the value of the collateral and stability of the local economic environment. Management specifically considers unemployment and changes in real estate values in the Bank’s market area.

HELOC

These loans are generally secured by owner-occupied 1-4 family residences. The main risks for these loans are changes in the value of the collateral and stability of the local economic environment and its impact on the borrowers’ employment. Management specifically considers unemployment and changes in real estate values in the Bank’s market area.

Commercial and Industrial

The commercial and industrial portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of the borrower and the economic conditions that impact the cash flow stability from business operations.

Consumer Loans

These loans include vehicle loans, share loans and unsecured loans. The main risks for these loans are the depreciation of the collateral values (vehicles) and the financial condition of the borrowers. Major employment changes are specifically considered by management.

​ 18

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

​

Information regarding the credit quality indicators most closely monitored for other than residential real estate loans by class as of December 31, 2025 and September 30, 2025, follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Term Loans Amortized Cost Basis by Origination Year																	​	​	Revolving Loans	​	​	Revolving Loans	​	​	​
​	​	For The Years Ending September 30,																	​	​	Amortized	​	​	Converted	​	​	​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023		​ ​ ​	2022		​ ​ ​	Prior		​ ​ ​	​	Cost Basis	​	​	to Term	​	Total
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	-	​	$	189,729	​	$	368,468	​	$	-	​	$	726,550	​	$	1,018,351	​	$	-	​	$	-	​	$	2,303,098
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	-	​	$	189,729	​	$	368,468	​	$	-	​	$	726,550	​	$	1,018,351	​	$	-	​	$	-	​	$	2,303,098
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Construction and land	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	1,138,477	​	$	1,376,648	​	$	1,774,615	​	$	23,653	​	$	62,552	​	$	76,548	​	$	-	​	$	-	​	$	4,452,493
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	1,138,477	​	$	1,376,648	​	$	1,774,615	​	$	23,653	​	$	62,552	​	$	76,548	​	$	-	​	$	-	​	$	4,452,493
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Construction and land	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial and industrial	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	345,703	​	$	733,200	​	$	-	​	$	1,078,903
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	345,703	​	$	733,200	​	$	-	​	$	1,078,903
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial and industrial	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Multi Family	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	-	​	$	-	​	$	-	​	$	-	​	$	922,789	​	$	266,942	​	$	-	​	$	-	​	$	1,189,731
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	-	​	$	-	​	$	-	​	$	-	​	$	922,789	​	$	266,942	​	$	-	​	$	-	​	$	1,189,731
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Multi Family	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Agricultural	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	-	​	$	2,837,853	​	$	13,865,925	​	$	8,901,381	​	$	7,668,703	​	$	8,653,353	​	$	-	​	$	-	​	$	41,927,215
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	247,283	​	​	-	​	​	-	​	​	-	​	​	247,283
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	-	​	$	2,837,853	​	$	13,865,925	​	$	8,901,381	​	$	7,915,986	​	$	8,653,353	​	$	-	​	$	-	​	$	42,174,498
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Agricultural	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	1,138,477	​	$	4,404,230	​	$	16,009,008	​	$	8,925,033	​	$	9,380,594	​	$	10,360,895	​	$	733,200	​	$	-	​	$	50,951,440
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	247,283	​	​	-	​	​	-	​	​	-	​	​	247,283
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	1,138,477	​	$	4,404,230	​	$	16,009,008	​	$	8,925,033	​	$	9,627,877	​	$	10,360,895	​	$	733,200	​	$	-	​	$	51,198,723
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

19

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

​	​	Term Loans Amortized Cost Basis by Origination Year																	​	​	Revolving Loans	​	​	Revolving Loans	​	​	​
​	​	For The Years Ending September 30,																	​	​	Amortized	​	​	Converted	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023		​ ​ ​	2022		​ ​ ​	2021		​ ​ ​	Prior		​ ​ ​	​	Cost Basis	​	​	to Term	​	Total
September 30, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	190,000	​	$	369,645	​	$	-	​	$	731,021	​	$	905,151	​	$	130,612	​	$	-	​	$	-	​	$	2,326,429
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	190,000	​	$	369,645	​	$	-	​	$	731,021	​	$	905,151	​	$	130,612	​	$	-	​	$	-	​	$	2,326,429
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Construction and land	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	918,152	​	$	3,176,710	​	$	-	​	$	87,960	​	$	13,578	​	$	21,899	​	$	-	​	$	-	​	$	4,218,299
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	46,695	​	​	-	​	​	-	​	​	46,695
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	918,152	​	$	3,176,710	​	$	-	​	$	87,960	​	$	13,578	​	$	68,594	​	$	-	​	$	-	​	$	4,264,994
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Construction and land	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial and industrial	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	-	​	$	-	​	$	-	​	$	-	​	$	124,594	​	$	257,022	​	$	851,790	​	$	-	​	$	1,233,406
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	-	​	$	-	​	$	-	​	$	-	​	$	124,594	​	$	257,022	​	$	851,790	​	$	-	​	$	1,233,406
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial and industrial	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Multi Family	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	-	​	$	-	​	$	-	​	$	929,569	​	$	-	​	$	275,095	​	$	-	​	$	-	​	$	1,204,664
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	-	​	$	-	​	$	-	​	$	929,569	​	$	-	​	$	275,095	​	$	-	​	$	-	​	$	1,204,664
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Multi Family	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Agricultural	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	901,007	​	$	15,856,843	​	$	10,492,312	​	$	7,589,939	​	$	4,318,434	​	$	6,467,816	​	$	-	​	$	-	​	$	45,626,351
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	293,231	​	​	250,092	​	​	-	​	​	147,366	​	​	-	​	​	-	​	​	690,689
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	901,007	​	$	15,856,843	​	$	10,785,543	​	$	7,840,031	​	$	4,318,434	​	$	6,615,182	​	$	-	​	$	-	​	$	46,317,040
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Agricultural	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Risk Rating	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	2,009,159	​	$	19,403,198	​	$	10,492,312	​	$	9,338,489	​	$	5,361,757	​	$	7,152,444	​	$	851,790	​	$	-	​	$	54,609,149
Special Mention	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Substandard	​	​	-	​	​	-	​	​	293,231	​	​	250,092	​	​	-	​	​	194,061	​	​	-	​	​	-	​	​	737,384
Doubtful	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	2,009,159	​	$	19,403,198	​	$	10,785,543	​	$	9,588,581	​	$	5,361,757	​	$	7,346,505	​	$	851,790	​	$	-	​	$	55,346,533
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

​

​ 20

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

​

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes.  Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the amortized cost in residential and consumer loans based on payment activity:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Term Loans Amortized Cost Basis by Origination Year																	​	Revolving Loans		​	Revolving Loans		​	​	​
​	​	For The Years Ending September 30,																	​	Amortized		​	Amortized		​	​	​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023		​ ​ ​	2022		​ ​ ​	Prior		​ ​ ​	Cost Basis		​ ​ ​	Cost Basis		​ ​ ​	Total
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential real estate and HELOC	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Payment Performance	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Performing	​	$	8,285,051	​	$	13,307,212	​	$	6,665,795	​	$	4,341,152	​	$	12,337,371	​	$	37,575,757	​	$	4,789,750	​	$	93,625	​	$	87,395,713
Nonperforming	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	367,784	​	​	-	​	​	-	​	​	367,784
Total	​	$	8,285,051	​	$	13,307,212	​	$	6,665,795	​	$	4,341,152	​	$	12,337,371	​	$	37,943,541	​	$	4,789,750	​	$	93,625	​	$	87,763,497
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential real estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consumer	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Payment Performance	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Performing	​	$	255,249	​	$	1,430,274	​	$	209,927	​	$	2,862,458	​	$	42,088	​	$	31,309	​	$	-	​	$	-	​	$	4,831,305
Nonperforming	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total	​	$	255,249	​	$	1,430,274	​	$	209,927	​	$	2,862,458	​	$	42,088	​	$	31,309	​	$	-	​	$	-	​	$	4,831,305
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consumer	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	88,511	​	$	16,565	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	105,076
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Payment Performance	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Performing	​	$	8,540,300	​	$	14,737,486	​	$	6,875,722	​	$	7,203,610	​	$	12,379,459	​	$	37,607,066	​	$	4,789,750	​	$	93,625	​	$	92,227,018
Nonperforming	​	​	-	​	​	-	​	-	-	​	-	-	​	-	-	​	-	367,784	​	-	-	​	-	-	​	​	367,784
Total	​	$	8,540,300	​	$	14,737,486	​	$	6,875,722	​	$	7,203,610	​	$	12,379,459	​	$	37,974,850	​	$	4,789,750	​	$	93,625	​	$	92,594,802
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Term Loans Amortized Cost Basis by Origination Year																	​	Revolving Loans		​	Revolving Loans		​	​	​
​	​	For The Years Ending September 30,																	​	Amortized		​	Amortized		​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023		​ ​ ​	2022		​ ​ ​	2021		​ ​ ​	Prior		​ ​ ​	Cost Basis		​ ​ ​	Cost Basis		​ ​ ​	Total
September 30, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential real estate and HELOC	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Payment Performance	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Performing	​	$	12,630,915	​	$	8,140,586	​	$	5,183,326	​	$	9,284,260	​	$	17,417,339	​	$	25,437,880	​	$	4,771,614	​	$	98,177	​	$	82,964,097
Nonperforming	​	​	-	​	​	-	​	​	-	​	​	116,431	​	​	259,992	​	​	205,449	​	​	-	​	​	-	​	​	581,872
Total	​	$	12,630,915	​	$	8,140,586	​	$	5,183,326	​	$	9,400,691	​	$	17,677,331	​	$	25,643,329	​	$	4,771,614	​	$	98,177	​	$	83,545,969
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential real estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consumer	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Payment Performance	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Performing	​	$	1,545,259	​	$	146,486	​	$	3,255,323	​	$	49,261	​	$	23,431	​	$	36,588	​	$	-	​	$	-	​	$	5,056,348
Nonperforming	​	​	-	​	​	26,873	​	​	-	​	​	2,327	​	​	-	​	​	-	​	​	-	​	​	-	​	​	29,200
Total	​	$	1,545,259	​	$	173,359	​	$	3,255,323	​	$	51,588	​	$	23,431	​	$	36,588	​	$	-	​	$	-	​	$	5,085,548
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consumer	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current period gross charge-offs	​	$	156	​	$	18,040	​	$	138,992	​	$	-	​	$	-	​	$	-	​	$	-	​	$	-	​	$	157,188
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Payment Performance	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Performing	​	$	14,176,174	​	$	8,287,072	​	$	8,438,649	​	$	9,333,521	​	$	17,440,770	​	$	25,474,468	​	$	4,771,614	​	$	98,177	​	$	88,020,445
Nonperforming	​	​	-	​	​	26,873	​	-	-	​	-	118,758	​	-	259,992	​	-	205,449	​	-	-	​	-	-	​	​	611,072
Total	​	$	14,176,174	​	$	8,313,945	​	$	8,438,649	​	$	9,452,279	​	$	17,700,762	​	$	25,679,917	​	$	4,771,614	​	$	98,177	​	$	88,631,517

​

​

​ 21

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The Company evaluates the loan risk grading system definitions on an ongoing basis. No significant changes were made during the three months ended December 31, 2025 or the year ended September 30, 2025.

The following tables present the Bank’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2025 and September 30, 2025:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	December 31, 2025
​	​	​		​	​		​	Greater Than		​	​		​	​		​	​	​	​	Total Loans >
​	​	30-59 Days		​	60-89 Days		​	90 Days		​	Total		​	​		​	​	Total Loans	​	90 Days &
​	​ ​ ​	Past Due		​ ​ ​	Past Due		​ ​ ​	Past Due		​ ​ ​	Past Due		​ ​ ​	Current		​	​	Receivable	​ ​ ​	Accruing
Real estate loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential	​	$	2,118,593	​	$	65,239	​	$	350,824	​	$	2,534,656	​	$	80,439,091	​	$	82,973,747	​	$	—
Multi-family	​		—	​		—	​		—	​		—	​		1,189,731	​		1,189,731	​		—
Agricultural	​		—	​		—	​		—	​		—	​		42,174,498	​		42,174,498	​		—
Commercial	​		—	​		—	​		—	​		—	​		2,303,098	​		2,303,098	​		—
Construction and land	​		—	​		—	​		—	​		—	​		4,452,493	​		4,452,493	​		—
Home equity line of credit (HELOC)	​		106,637	​		—	​		—	​		106,637	​		4,683,113	​		4,789,750	​		—
Commercial and industrial	​		16,463	​		—	​		—	​		16,463	​		1,062,440	​		1,078,903	​		—
Consumer	​		65,932	​		—	​		45,147	​		111,079	​		4,720,226	​		4,831,305	​		45,147
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	$	2,307,625	​	$	65,239	​	$	395,971	​	$	2,768,835	​	$	141,024,690	​	$	143,793,525	​	$	45,147

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	**** ​	September 30, 2025
​	​	​		​	​		​	Greater than		​	​		​	​		​	​		​	Total Loans>
​	​	30-59 Days		​	60-89 Days		​	90 Days		​	Total		​	​		​	Total Loans		​	90 Days &
​	​ ​ ​	Past Due		​ ​ ​	Past Due		​ ​ ​	Past Due		​ ​ ​	Past Due		​ ​ ​	Current		​ ​ ​	Receivable		​ ​ ​	Accruing
​	​	​																		​	​
Real estate loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential	​	$	575,867	​	$	220,713	​	$	581,873	​	$	1,378,453	​	$	77,395,902	​	$	78,774,355	​	$	116,431
Multi-family	​		—	​		—	​		—	​		—	​		1,204,664	​		1,204,664	​		—
Agricultural	​		—	​		156,881	​		690,990	​		847,871	​		45,469,169	​		46,317,040	​		440,598
Commercial	​		—	​		—	​		—	​		—	​		2,326,429	​		2,326,429	​		—
Construction and land	​		—	​		—	​		46,695	​		46,695	​		4,218,299	​		4,264,994	​		46,695
Home equity line of credit (HELOC)	​		—	​		—	​		—	​		—	​		4,771,614	​		4,771,614	​		—
Commercial and industrial	​		24,814	​		—	​		—	​		24,814	​		1,208,592	​		1,233,406	​		—
Consumer	​		21,247	​		—	​		29,200	​		50,447	​		5,035,101	​		5,085,548	​		29,200
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	$	621,928	​	$	377,594	​	$	1,348,758	​	$	2,348,280	​	$	141,629,770	​	$	143,978,050	​	$	632,924

​

The Company had no loans identified as collateral dependent as of December 31, 2025 and September 30, 2025.

​

​ 22

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

​

The Company’s total nonaccrual loans at December 31, 2025 and September 30, 2025, were as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Nonaccrual Loans								​	Loans Past Due		​	​	​
​	​	With No Allowance		​	With Allowance		​	​	​	​	Over 90 Days		​	Total
​	​ ​ ​ ​ ​	for Credit Loss		​ ​ ​ ​ ​	for Credit Loss		​ ​ ​ ​ ​	Total		​ ​ ​ ​ ​	and Still Accruing		​ ​ ​ ​ ​	Nonperforming
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential real estate loans	​	$	363,874	​	$	3,910	​	$	367,784	​	$	—	​	$	367,784
Agricultural	​	​	247,283	​	​	—	​	​	247,283	​	​	—	​	​	247,283
Consumer	​	​	—	​	​	—	​	​	—	​	​	45,147	​	​	45,147
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	$	611,157	​	$	3,910	​	$	615,067	​	$	45,147	​	$	660,214
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Nonaccrual Loans								​	Loans Past Due		​	​	​
​	​	With No Allowance		​	With Allowance		​	​		​	Over 90 Days		​	Total
​	​ ​ ​ ​ ​	for Credit Loss		​ ​ ​ ​ ​	for Credit Loss		​ ​ ​ ​ ​	Total		​ ​ ​ ​ ​	and Still Accruing		​ ​ ​ ​ ​	Nonperforming
September 30, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Residential real estate loans	​	$	461,488	​	$	3,953	​	$	465,441	​	$	116,431	​	$	581,872
Construction and land	​	​	250,092	​	​	—	​	​	250,092	​	​	440,598	​	​	690,690
Commercial and industrial	​	​	-	​	​	—	​	​	-	​	​	46,695	​	​	46,695
Consumer	​	​	-	​	​	—	​	​	-	​	​	29,200	​	​	29,200
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	$	711,580	​	$	3,953	​	$	715,533	​	$	632,924	​	$	1,348,457

​

​

There were no loans modified for borrowers experiencing financial difficulty during the three months ended December 31, 2025 and 2024 and during the year ended September 30, 2025. There were no loans modified for borrowers experiencing financial difficulty in the past 12 months that subsequently defaulted during the three months ended December 31, 2025 and 2024 and during the year ended September 30, 2025.

​

Note 4:    Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under U.S. GAAP reporting requirements and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Quantitative measures established by regulatory reporting standards to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined) to risk-weighted assets (as defined), common equity Tier I capital (as defined) to total risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2025, that the Bank met all capital adequacy requirements to which it is subject.

As of December 31, 2025 the most recent notification from the regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based capital, Tier I risk-based capital, common equity Tier I risk-based capital and Tier I leverage ratios as set forth in the table.

There are no conditions or events since that notification that management believes have changed the Bank’s category. 23

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The Bank’s actual and required capital amounts and ratios are as follows (table amounts in thousands):

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	To Be Well Capitalized
​	​	​	​	​	​	​	​	​	​	​	​	Under				​
​	​	​	​	​	​	​	​	​	​	​	​	Prompt Corrective				​
​	​	​				​	For Capital Adequacy				​	Action
​	​	Actual				​ ​ ​	Purposes				​	Provisions
​	​ ​ ​	Amount		​ ​ ​	Ratio	​ ​ ​	Amount		​ ​ ​	Ratio	​ ​ ​	Amount		​ ​ ​	Ratio
​	​	(Dollars in thousands)
As of December 31, 2025		​	​		​		​	​		​		​	​		​	​
Total Capital	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(to Risk-Weighted Assets)	​	$	23,299	​	18.6%	​	$	10,015	​	8.0%	​	$	12,519	​	10.0%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier 1 Capital	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(to Risk-Weighted Assets)	​	$	22,386		17.9%	​	$	7,511		6.0%	​	$	10,015		8.0%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Equity Tier I Capital	​		​		​	​		​		​	​		​		​	​
(to Risk-Weighted Assets)	​	$	22,386		17.9%	​	$	5,633		4.5%	​	$	8,137		6.5%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier I Capital	​		​		​	​		​		​	​		​		​	​
(to Average Total Assets)	​	$	22,386		12.6%	​	$	7,079		4.0%	​	$	8,849		5.0%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
As of September 30, 2025	​		​		​	​		​		​	​		​		​	​
Total Capital	​		​		​	​		​		​	​		​		​	​
(to Risk-Weighted Assets)	​	$	23,037		17.8%	​	$	10,342		8.0%	​	$	12,928		10.0%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier 1 Capital	​		​		​	​		​		​	​		​		​	​
(to Risk-Weighted Assets)	​	$	22,072		17.1%	​	$	7,757		6.0%	​	$	10,342		8.0%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common Equity Tier I Capital	​		​		​	​		​		​	​		​		​	​
(to Risk-Weighted Assets)	​	$	22,072		17.1%	​	$	5,817		4.5%	​	$	8,403		6.5%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier I Capital	​		​		​	​		​		​	​		​		​	​
(to Average Total Assets)	​	$	22,072		12.5%	​	$	7,047		4.0%	​	$	8,808		5.0%	​

​

​

Note 5:    Disclosures about Fair Value of Assets and Liabilities

Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

24

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2025 and September 30, 2025:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Fair Value Measurements Using
​	​	​		​	Quoted Prices in		​	Significant		​	​
​	​	​		​	Active Markets		​	Other		​	Significant
​	​	​		​	for		​	Observable		​	Unobservable
​	​	Fair		​	Identical Assets		​	Inputs		​	Inputs
​	​ ​ ​	Value		​ ​ ​	(Level 1)		​ ​ ​	(Level 2)		​ ​ ​	(Level 3)
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​
U.S. Government agencies	​	$	1,113,358	​	$	—	​	$	1,113,358	​	$	—
Mortgage-backed Government Sponsored Enterprises (GSEs)		​	3,642,320		​	—		​	3,642,320		​	—
State and political subdivisions		​	5,067,908		​	—		​	5,067,908		​	—
​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
September 30, 2025		​	​		​	​		​	​		​	​
U.S. Government agencies	​	$	2,487,550	​	$	—	​	$	2,487,550	​	$	—
Mortgage-backed Government Sponsored Enterprises (GSEs)	​		3,822,878	​		—	​		3,822,878	​		—
State and political subdivisions	​		3,345,686	​		—	​		3,345,686	​		—

​

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There are no liabilities measured at fair value on a recurring basis. There have been no significant changes in the valuation techniques during the three months ended December 31, 2025 and the year ended September 30, 2025.

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 are not available, securities are classified within Level 3 of the hierarchy. The Bank had no Level 3 securities.

Nonrecurring Measurements

The Company had no assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2025 and September 30, 2025. 25

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The estimated fair values of the Company’s financial instruments not carried at fair value on the balance sheets are as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Carrying		​	Fair		​	Fair Value Measurements Using
​	​ ​ ​	Value		​ ​ ​	Value		​ ​ ​	Level 1		​ ​ ​	Level 2		​ ​ ​	Level 3
December 31, 2025		​	​		​	​		​	​		​	​		​	​
Financial assets:		​	​		​	​		​	​		​	​		​	​
Cash and cash equivalents	​	$	4,735,234	​	$	4,735,234	​	$	4,735,234	​	$	—	​	$	—
Interest-bearing time deposits	​		100,000	​		100,000	​		100,000	​		—	​		—
Held-to-maturity securities	​		63,435	​		62,926	​		—	​		62,926	​		—
Loans held for sale	​		7,094,236	​		7,419,000	​		—	​		—	​		7,419,000
Loans, net	​		142,147,272	​		136,381,000	​		—	​		—	​		136,381,000
FHLB stock	​		1,046,900	​		1,046,900	​		—	​		1,046,900	​		—
Bank owned life insurance	​		1,888,660	​		1,888,660	​		1,888,660	​		—	​		—
Accrued interest receivable	​		553,245	​		553,245	​		553,245	​		—	​		—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Financial liabilities:	​		​	​		​	​		​	​		​	​		​
Deposits	​		146,917,940	​		147,043,353	​		95,123,353	​		—	​		51,920,000
FHLB advances	​		1,000,000	​		1,000,000	​		—	​		1,000,000	​		—
Accrued interest payable	​		412,072	​		412,072	​		412,072	​		—	​		—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
September 30, 2025	​		​	​		​	​		​	​		​	​		​
Financial assets:	​		​	​		​	​		​	​		​	​		​
Cash and cash equivalents	​	$	5,363,187	​	$	5,363,187	​	$	5,363,187	​	$	—	​	$	—
Interest-bearing time deposits	​		100,000	​		100,000	​		100,000	​		—	​		—
Held-to-maturity securities	​		67,723	​		67,180	​		—	​		67,180	​		—
Loans held for sale	​		8,051,398	​		8,461,000	​		—	​		—	​		8,461,000
Loans, net	​		142,297,258	​		135,944,000	​		—	​		—	​		135,944,000
FHLB stock	​		1,208,100	​		1,208,100	​		—	​		1,208,100	​		—
Bank owned life insurance	​		1,876,454	​		1,876,454	​		1,876,454	​		—	​		—
Accrued interest receivable	​		678,357	​		678,357	​		678,357	​		—	​		—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Financial liabilities:	​		​	​		​	​		​	​		​	​		​
Deposits	​		143,988,029	​		145,550,412	​		93,702,412	​		—	​		51,848,000
FHLB advances	​		6,000,000	​		5,999,000	​		—	​		5,999,000	​		—
Accrued interest payable	​		319,239	​		319,239	​		319,239	​		—	​		—

​

Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Fair value estimates may not be realizable in an immediate settlement of the instrument. In some instances, there are no quoted market prices for the Company’s various financial instruments, in which case fair values may be based on estimates using present value or other valuation techniques, or based on judgments regarding future expected loss experience, current economic conditions, risk characteristic of the financial instruments, or other factors. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Subsequent changes in assumptions could significantly affect the estimates.

​

Note 6:    Commitments and Credit Risks

Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based 26

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Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The allowance for credit losses for off balance sheet liabilities was $5,000 at December 31, 2025 and September 30, 2025, and was being held in other liabilities on the balance sheet.

Commitments outstanding were as follows:

​

​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​	September 30,
​	​ ​ ​	2025		​ ​ ​	2025
Commitments to originate loans	​	$	4,011,554	​	$	2,445,371
Undisbursed balance of loans closed	​		7,117,286	​	​	7,154,955
​	​	​	​	​	​	​
Total	​	$	11,128,840	​	$	9,600,326

​

​

Note 7:   Earnings Per Share

​

Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Unallocated common shares held by the Employee Stock Ownership Plan (“ESOP”) are not included in the weighted-average number of common shares outstanding for purposes of calculating basic earnings per common share until they are committed to be released.

The following table sets forth the computation of basic and diluted earnings per share:

​

​	​	​	​
​	Three Months Ended
​	December 31,
​	2025	​	2024
​	​	​	​
Net income	$ 171,270	​	$ 276,308
​	​	​	​
Weighted-average common shares outstanding, gross	1,027,349	​	1,022,970
​	​	​	​
Less unallocated ESOP shares	(70,867)	​	(70,926)
​	​	​	​
Weighted-average common shares outstanding	956,482	​	952,044
​	​	​	​
Basic earnings per share	$ 0.18	​	$ 0.29
​	​	​	​
Weighted-average common shares outstanding	956,482	​	952,044
​	​	​	​
Diluted effect of share based compensation	14,834	​	-
​	​	​	​
Weighted-average common shares outstanding - Diluted	971,316	​	952,044
​	​	​	​
Diluted earnings per share	$ 0.18	​	$ 0.29

​

​

​

​ 27

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

​

​

Note 8: Employee Stock Ownership Plan (ESOP)

In connection with the Conversion in July 2023, the Company established a leveraged ESOP for eligible employees of the Bank. The ESOP trust purchased 81,838 shares of Company common stock at the initial public offering price of $10.00 per share financed by the 15-year term loan with the Company. The interest rate of the loan is 8.50% and the maturity date is December 31, 2037. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Bank’s discretionary contributions to the ESOP. When the loan payments are made, ESOP shares are allocated to the participants based on relative compensation. The Bank recognizes expense based on the average fair value of the shares to be allocated to the ESOP participants.

Activity in the ESOP for the three months ended December 31, 2025 and 2024 is as follows:

​

​	​	​	​	​
​	​	For the Three Months Ended
​	​	December 31,
​	​	2025	​	2024
Shares committed to be released to participants	​	—	​	—
Shares allocated to participants	​	16,368	​	10,912
Unreleased shares	​	65,470	​	70,926
​	​	​	​	​
ESOP shares at end of plan year	​	81,838	​	81,838
​	​	​	​	​
Fair value of unreleased shares	​	$ 1,031,153	​	$ 992,964

​

​

​

​

Note 9: Share Based Compensation Arrangements

In February 2025, the Company’s shareholders approved the Mercer Bancorp, Inc. 2025 Equity Incentive Plan (the “2025 Plan”). The 2025 Plan authorized the issuance or delivery to participants of up to 143,215 shares of the Company’s common stock pursuant to the grants of restricted stock awards, restricted stock unit awards, incentive stock options and non-qualified stock options. Of this number, the maximum number of shares of Company common stock that may be issued under the 2025 Plan pursuant to the exercise of stock options is 102,297 shares and the maximum number of shares of Company common stock that may be issued as restricted stock awards or restricted stock units is 40,918. Shares subject to award under the 2025 Plan may be authorized but unissued shares or treasury shares.

A summary of the status of the Company’s unvested restricted shares as of December 31, 2025, and changes during the three month period then ended, is presented below:

​

​	​	​	​	​	​
​	​	​	​	​	Weighted-average
​	​	​	​	​	Grant Date
​	​	​	Shares	​	Fair Value
​	​	​	​	​	​
Nonvested shares, October 1, 2025	​	​	31,504	​	$ 14.05
Awarded	​	​	-	​	-
Vested	​	​	-	​	-
Forfeited	​	​	-	​	-
​	​	​	​	​	​
Nonvested shares, December 31, 2025	​	​	31,504	​	$ 14.05

​

​

​ 28

Table of Contents

Mercer Bancorp, Inc.

Notes to Consolidated Financial Statements

The following table summarizes stock option activity for the three month period ended December 31, 2025:

​

​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	Weighted-average	​	​
​	​	​	​	​	​	Remaining	​	Aggregate
​	​	​	​	Weighted-average	​	Contractual Term	​	Intrinsic
December 31, 2025	​	Shares	​	Exercise Price	​	(Years)	​	Value
​	​	​	​	​	​	​	​	​
Outstanding, beginning of period	​	81,634	​	$ 14.06	​	9.48	​	$ 117,786
Awarded	​	-	​	-	​	-	​	-
Exercised	​	-	​	-	​	-	​	-
Forfeited	​	-	​	-	​	-	​	-
​	​	​	​	​	​	​	​	​
Outstanding, end of period	​	81,634	​	$ 14.06	​	9.23	​	$ 138,195
​	​	​	​	​	​	​	​	​
Shares exercisable at December 31, 2025	​	-	​	$ -	​	​	​	​

​

​

As of December 31, 2025, there was approximately $707,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the 2025 Plan. That cost is expected to be recognized over a weighted-average period of 4.2 years. During the three months ended December 31, 2025, the Company recorded $22,000 in share-based compensation expense related to restricted stock awards, which is included in salaries and employee benefits and director fees. During three months ended December 31, 2025, the Company recorded $20,000 in share-based compensation expense related to stock options, which is included in salaries and employee benefits and director fees.

​

​

​ 29

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Management’s discussion and analysis is intended to enhance your understanding of our financial condition and results of operations. The financial information in this section is derived from the accompanying financial statements. You should read the financial information in this section in conjunction with the business and financial information contained in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the Fiscal Year Ended September 30, 2025 as filed with the SEC on December 19, 2025.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “believe,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

●	statements of our goals, intentions and expectations;
●	statements regarding our business plans, prospects, growth and operating strategies;
---	---
●	statements regarding the asset quality of our loan and investment portfolios; and
---	---
●	estimates of our risks and future costs and benefits.
---	---

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this prospectus.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

●	general economic conditions, either nationally or in our market area, which are worse than expected, including the effects of inflation and monetary and fiscal policy;
●	conditions affecting our local agricultural industry, such as adverse weather conditions and the impact of government regulations, including changes in price supports, tariffs on agricultural products, trade agreements, subsidies and environmental regulations, any of which may affect the ability of our agricultural customers to repay their loans and lead to reduced consumer spending, lower economic growth, and decreased demand for our products;
---	---
●	changes in the interest rate environment that affect our margins and yields, the fair value of our financial instruments, our level of loan originations, or the level of defaults, losses and prepayments within our loan portfolio;
---	---
●	adverse changes in the securities markets;
---	---
●	changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;
---	---
●	our ability to manage market risk, credit risk and operational risk;
---	---

30

Table of Contents

●	our ability to access cost-effective funding;
●	changes in liquidity, including the amount and composition of our deposits, including the percentage of uninsured deposits in our portfolio;
---	---
●	fluctuations in real estate values and in the conditions of the residential real estate, commercial real estate, and agricultural real estate markets;
---	---
●	demand for loans and deposits in our market area;
---	---
●	our ability to implement and change our business strategies, including our ability to introduce new products and services, enter new markets and capitize on growth opportunities, and successfully integrate any acquired assets, liabilities, customers, systems and personnel;
---	---
●	competition among depository and other financial institutions;
---	---
●	changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums;
---	---
●	changes in tax laws and the effects of tariffs, trade restrictions and retaliatory responses;
---	---
●	changes in the quality or composition of our loan or investment portfolios;
---	---
●	technological changes that may be more difficult or expensive than expected;
---	---
●	the inability of third-party providers to perform as expected;
---	---
●	a failure or breach of our operational or information security systems or infrastructure, including cyberattacks;
---	---
●	our ability to enter new markets successfully and capitalize on growth opportunities;
---	---
●	changes in consumer spending, borrowing and savings habits;
---	---
●	changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;
---	---
●	our compensation expense associated with equity allocated or awarded to our employees;
---	---
●	our ability to retain key employees; and
---	---
●	changes in the financial condition, results of operations or future prospects of issuers of securities that we own.
---	---

Accordingly, you should not place undue reliance on forward-looking statements.

Critical Accounting Policies

​

The discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements, which are prepared in conformity with generally accepted accounting principles used in the United States of America. The preparation of these financial statements requires management to make estimates and 31

Table of Contents assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical accounting policies. The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

​

The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards.

​

The following represent our critical accounting policies:

​

Allowance for Credit Losses. The allowance for credit losses is the estimated amount considered necessary to cover inherent, but unconfirmed, credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for credit losses which is charged against income. In determining the allowance for credit losses, management makes significant estimates and has identified this policy as one of our most critical accounting policies.

​

Management performs a quarterly evaluation of the allowance for credit losses on loans and unfunded commitments. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.

​

The allowance for credit losses is evaluated following the accounting guidance in Accounting Standards Update (ASU) No. 2016-13 Financial Instruments – Credit Losses (Topic 326). ASC 326 sets forth the current expected credit loss (CECL) methodology that reflects expected credit losses over the lives of the credit instruments and requires consideration of a broader range of information to estimate credit losses. ASC 326 requires an estimate of all expected credit losses for loans based on historical experience, current conditions, and reasonable and supportable forecasts.

​

Actual loan losses may be significantly more than the allowances we have established which could result in a material negative effect on our financial results.

​

Comparison of Financial Condition at December 31, 2025 and September 30, 2025

​

Total Assets. Total assets were $174.2 million at December 31, 2025, a decrease of $2.0 million, or 1.1%, from September 30, 2025. The decrease was due primarily to decreases loans held for sale of $957,000, cash and cash equivelants of $628,000, Federal Home Loan Bank stock of $161,000, and loans of $150,000, which were partially offset by increases in securities available for sale of $167,000.

​

Cash and Cash Equivalents. Cash and cash equivalents decreased by $628,000, or 11.7%, to $4.7 million at December 31, 2025 from $5.4 million at September 30, 2025. The decrease was due primarily to paying down Federal Home Loan Bank advances, partially offset by funds received from the increase in deposits and decreases in loans during the three months ended December 31, 2025.

​

Investment Securities. Investment securities available for sale and held to maturity increased $167,000 to $9.8 million at December 31, 2025 compared to September 30, 2025. During the three months ended December 31, 2025, securities purchases of $2.3 million were partially offset by sales, maturities and repayments of $2.1 million, while the fair value of available for sale securities increased by $116,000.

​ 32

Table of Contents The yield on investment securities was 3.21% for the three months ended December 31, 2025, compared to 2.93% for the three months ended December 31, 2024, reflecting the increases in the overall interest rate environment.

​

Loans Held for Sale. Loans held for sale decreased by $957,000, or 11.9% to $7.1 million at December 31, 2025 compared to September 30, 2025. The decrease in loans held for sale was primarily due to paydowns of those loans. During the three months ended December 31, 2025, no new auto loans were originated for sale and there were no mortgage loans originated for sale. No sales of auto loans occurred during the three months ended December 31, 2025, and no sales of mortgage loans occurred during the three months ended December 31, 2025.

​

Net Loans. Net loans decreased by $150,000, or 0.1%, to $142.1 million at December 31, 2025 from $142.3 million at September 30, 2025. During the three months ended December 31, 2025, residential real estate loans increased $4.2 million, or 5.3%, to $83.0 million at December 31, 2025, from $78.8 million at September 30, 2025, construction and land loans increased $187,000, or 4.4%, to $4.5 million at December 31, 2025, from $4.3 million at September 30, 2025, consumer loans decreased $254,000, or 5.0%, to $4.8 million at December 31, 2025 compared to September 30, 2025, and agricultural real estate loans decreased $4.1 million, or 8.9%, to a total of $42.2 million at December 31, 2025.

​

The Bank operates amid strong competition for one- to four-family residential mortgage loans and agricultural mortgage loans in our market area.

​

The Bank’s strategy includes growing the loan portfolio, continuing to focus primarily on owner-occupied one-to-four family residential real estate loans, agricultural real estate loans and automobile loans.

​

Premises and Equipment. Premises and equipment decreased $15,000, or 0.3%, to $5.1 million during the three months ended December 31, 2025, compared to $5.2 million at September 30, 2025. The decrease was due primarily to depreciation expense of $112,000, partially offset by $99,000 in equipment purchases. The new equipment purchases were primarily related to the new mobile branch and the core conversion.

​

Deposits. Deposits increased by $2.9 million, or 2.0%, to $146.9 million at December 31, 2025 from $144.0 million at September 30, 2025. Core deposits (which we define as savings accounts, money markets, other savings deposits and checking accounts) increased $1.4 million, or 1.5%, to $95.1 million at December 31, 2025 from $93.7 million at September 30, 2025. Certificates of deposit increased $1.5 million, or 3.0%, to $51.8 million at December 31, 2025 from September 30, 2025. The increase in certificates of deposit was due primarily to an increase in brokered deposits of $2.0 million, partially offset by a $361,000 decrease in customer certificates of deposit.

​

During the three months ended December 31, 2025, management continued its strategy of pursuing growth in demand accounts and other lower cost core deposits, in part by enhancing products and services offered and increased marketing. Management intends to continue its efforts to increase core deposits, with an emphasis on growth in consumer and business demand deposits.

​

Advances from the Federal Home Loan Bank. Advances from the Federal Home Loan Bank totaled $1.0 million at December 31, 2025, a decrease of $5.0 million, or 83.3%, from September 30, 2025. Advances were repaid primarily from proceeds from deposit growth and repayments on loans held for sale, as well as cash and cash equivalents. Advances totaling $1.0 million are scheduled to mature within one year from December 31, 2025.

​

Shareholders’ Equity. Shareholders’ equity increased $370,000, or 1.5%, to $25.0 million at December 31, 2025, compared to September 30, 2025. The increase resulted primarily from net income of $171,000 for the three months ended December 31, 2025, a $91,000 increase to equity through a reduction in accumulated other comprehensive loss, a decrease of $55,000 in shares acquired by ESOP, and an increase in additional paid in capital of $52,000.

​

​ 33

Table of Contents Average Balance Sheets

The following tables set forth average balance sheets, average yields and costs, and certain other information at the dates and for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average yields include the effect of net deferred fee income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average balances are calculated using monthly average balances. Non-accrual loans are included in the computation of average balances only. Average loan balances include loans held for sale.

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Three Months Ended December 31,
​	​	2025							​	2024
​	​	Average		​	​	​	​	​	​	Average		​	​	​	​	​	****
​	​	Outstanding		​	​	​	​	Average	​	Outstanding		​	​	​	​	Average
​	​	Balance		​	Interest		​	Yield/Rate	​	Balance		​	Interest		​	Yield/Rate
​	​	(Dollars in thousands)
Interest-earning assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Loans (1)	​	$	154,436	​	$	2,192		5.68	%	$	142,068	​	$	2,170		6.11	%
Taxable securities	​		5,604	​		44		3.14	​		8,123	​		58		2.86	​
Tax-exempt securities	​		4,874	​		40		3.28	​		3,628	​		28		3.09	​
Interest-earning deposits and other	​		4,755	​		64		5.38	​		5,265	​		77		5.85	​
Total interest-earning assets	​		169,669	​		2,340		5.52	​		159,084	​		2,333		5.87	​
Noninterest-earning assets	​		8,265	​					​		22,947	​					​
Allowance for credit losses	​		(947)	​					​		(967)	​					​
Total assets	​	$	176,987	​					​	$	181,064	​					​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing liabilities:	​			​					​			​		​		​	​
Interest-bearing demand deposits	​	$	32,120	​		2		0.02	%	$	40,985	​		3		0.03	%
Savings deposits	​		48,394	​		91		0.75	​		36,760	​		73		0.79	​
Certificates of deposit	​		52,272	​		458		3.50	​		40,633	​		387		3.81	​
Total interest-bearing deposits	​		132,786	​		551		1.66	​		118,378	​		463		1.56	​
Federal Home Loan Bank advances	​		3,462	​		42		4.85	​		22,500	​		277		4.92	​
Total interest-bearing liabilities	​		136,248	​		593		1.74	​		140,878	​		740		2.10	​
Noninterest-bearing demand deposits	​		14,132	​					​		15,123	​					​
Other noninterest-bearing liabilities	​		1,819	​					​		1,089	​					​
Total liabilities	​		152,199	​					​		157,090	​					​
Equity	​		24,788	​					​		23,974	​					​
Total liabilities and equity	​	$	176,987	​					​	$	181,064	​					​
Net interest income	​	​	​	​	$	1,747			​			​	$	1,593			​
Net interest rate spread (2)	​	​	​	​	​	​		3.78	%			​				3.77	%
Net interest-earning assets (3)	​	$	33,421	​					​	$	18,206	​					​
Net interest margin (4)	​	​	​	​				4.12	%			​				4.01	%
Average interest-earning assets to interest-bearing liabilities	​		124.53	%					​		112.92	%					​

​

​

(1)	Net deferred fee income included in interest earned on loans totaled $26,000 and $19,000 for the three months ended December 31, 2025 and 2024.
(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
---	---
(3)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
---	---
(4)	Net interest margin represents net interest income divided by average total interest-earning assets.
---	---

​ 34

Table of Contents Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.

​

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Three Months Ended
​	​	December 31, 2025 vs. 2024
​	​	Increase (Decrease)					​	Total
​	​	Due to					​	Increase
​	​	Volume		​ ​ ​	Rate		​ ​ ​	(Decrease)
​	​	(In thousands)
Interest-earning assets:	​	​	​	​	​	​	​	​	​
Loans	​	$	181	​	$	(159)	​	$	22
Taxable securities	​		(19)	​		5	​		(14)
Tax exempt-securities	​		10	​		2	​		12
Interest-earning deposits and other	​		(7)	​		(6)	​		(13)
Total interest-earning assets	​		165	​		(158)	​		7
​	​	​	​	​	​	​	​	​	​
Interest-bearing liabilities:	​		​	​		​	​		​
Interest-bearing demand deposits	​		(1)	​		—	​		(1)
Savings deposits	​		22	​		(4)	​		18
Certificates of deposit	​		104	​		(33)	​		71
Total interest-bearing deposits	​		125	​		(37)	​		88
Federal Home Loan Bank Advances	​		(231)	​		(4)	​		(235)
Total interest-bearing liabilities	​		(106)	​		(41)	​		(147)
​	​	​	​	​	​	​	​	​	​
Change in net interest income	​	$	271	​	$	(117)	​	$	154

​

​ 35

Table of Contents ​

​

Comparison of Operating Results for the Three Months Ended December 31, 2025 and 2024

​

General. Net income for the three months ended December 31, 2025, was $171,000, a decrease of $105,000, or 38.0%, compared to $276,000 for the three months ended December 31, 2024. The decrease in net income was primarily due to a $259,000 increase in noninterest expense, and a $32,000 decease in noninterest income, which were partially offset by a $154,000 increase in net interest income, and a $32,000 decrease in income taxes.

​

Interest Income. Interest income increased $6,000, or 0.3%, to $2.3 million for the three months ended December 31, 2025 from the three months ended December 31, 2024. This increase was attributable to a $22,000, or 1.0%, increase in interest on loans receivable, partially offset by a $2,000, or 2.8%, decrease in interest on investment securities and a $13,000, or 17.4%, decrease in interest on interest-bearing deposits and other assets.

​

The average balance of loans during the three months ended December 31, 2025 increased by $12.4 million, or 8.7%, from the balance for the three months ended December 31, 2024, while the average yield on loans decreased by 43 basis points to 5.68% for the three months ended December 31, 2025 from 6.11% for the three months ended December 31, 2024. The decrease in the average yield on loans reflects the recent decreases in the overall interest rate environment, as the Federal Reserve Board acted to decrease the federal funds rate three times, a total of 75 basis points, in 2025. These decreases in market interest rates have caused interest rates on the Bank’s adjustable-rate loans to adjust downward.

​

The average yield on investment securities increased by 28 basis points to 3.21% for the three months ended December 31, 2025, from 2.93% for the three months ended December 31, 2024, while the average balance of investment securities decreased $1.3 million to $10.5 million for the three months ended December 31, 2025, from $11.8 million for the three months ended December 31, 2024.

​

Interest income on other interest-earning deposits, comprised primarily of certificates of deposit in other financial institutions, overnight deposits and stock in the Federal Home Loan Bank, decreased $13,000, or 16.9%, for the three months ended December 31, 2025, due primarily to a decrease in the average balance of $510,000, or 9.7%, and a decrease in the average yield of 47 basis points to 5.38% for the three months ended December 31, 2025, from 5.85% for the three months ended December 31, 2024.

​

Interest Expense. Total interest expense decreased $148,000, or 20.0%, to $593,000 for the three months ended December 31, 2025, from $740,000 for the three months ended December 31, 2024. Interest expense on deposits increased $87,000, or 18.8%, due primarily to an increase of 10 basis points in the average cost of deposits to 1.66% for the three months ended December 31, 2025, from 1.56% for the three months ended December 31, 2024, and an increase of $14.4 million, or 12.2%, in the average balance of interest-bearing deposits to $132.8 million for the three months ended December 31, 2025, from $118.4 million for the three months ended December 31, 2024.

​

Interest expense on borrowings decreased $235,000, or 84.8%, for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. The decrease was due to a $19.0 million decrease in the average balance outstanding, to $3.5 million for the three months ended December 31, 2025, from $22.5 million for the three months ended December 31, 2024, and a seven basis point decrease in the weighted-average rate, to 4.85% for the three months ended December 31, 2025, from 4.92% for the three months ended December 31, 2024.

​

Net Interest Income**.** Net interest income increased $154,000, or 9.7%, to $1.7 million for the three months ended December 31, 2025, compared to $1.6 million for the three months ended December 31, 2024. The increase reflected an increase in the net interest margin to 4.12% for the three months ended December 31, 2025, from 4.01% for the three months ended December 31, 2024. The net interest margin was impacted by a series of market interest rate increases in the past several years, although in 2025 there were three decreases in the federal funds rate, totaling 75 basis points, by the Federal Reserve Board.

​ 36

Table of Contents Provision for Credit Losses. Based on an analysis of the loan portfolio and asset quality, management recorded no provision for credit losses for the three-month periods ended December 31, 2025 and 2024. The allowance for credit losses was $913,000 at December 31, 2025 and $960,000 at September 30, 2025 and represented 0.64% and 0.67% of total loans at December 31, 2025 and September 30, 2025, respectively. The determination of the adequacy of the allowance for credit losses included consideration of the levels of nonperforming loans, delinquent loans and net charge-offs of loans in both periods.

​

Total nonperforming loans were $660,000 at December 31, 2025, compared to $1.3 million at September 30, 2025. Classified loans totaled $615,000 at December 31, 2025, compared to $716,000 at September 30, 2025, and total loans past due 30 days and greater were $2.8 million and $2.3 million at those respective dates. Changes in residential real estate loans were responsible for the increase in non-performing, classified, and past due loans. As a percentage of nonperforming loans, the allowance for credit losses was 138.3% at December 31, 2025 compared to 71.2% at September 30, 2025.

​

The allowance for credit losses reflects the estimate management believes to be appropriate to cover incurred probable losses which were inherent in the loan portfolio at December 31, 2025 and 2024. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact the Bank’s financial condition and results of operations. In addition, bank regulatory agencies periodically review the allowance for credit losses and may require an increase in the provision for credit losses or the recognition of loan charge-offs, based on judgments different than those of management.

​

Noninterest Income. Noninterest income totaled $120,000 for the three months ended December 31, 2025, a decrease of $32,000, or 21.0%, from $152,000 for the three months ended December 31, 2024. During the three months ended December 31, 2025, a $16,000, or 20.7%, decrease in service fees on deposits, a $5,000 decrease in gain on sale of loans, and a $12,000 increase in loss on sale of investments, were partially offset by an increase of $4,000, or 12.2%, in late charges and fees on loans. The increase in loss on sale of investments was the result of a strategic decision to increase the yield in our investment portfolio. The decrease in deposit service fee income was a result of reduced income from debit card processing as a result of our conversion to a new core processor.

​

Noninterest Expense. Noninterest expense increased $259,000, or 18.5%, to $1.7 million for the three months ended December 31, 2025, compared to $1.4 million for the three months ended December 31, 2024. The increase was due primarily to a $132,000, or 21.0%, increase salaries and employee benefits, a $72,000, or 62.7%, increase in other expenses, a $47,000, or 38.0% increase in occupancy and equipment, a $42,000, or 39.9%, increase in professional services, and an $18,000, or 10.0%, increase in data processing, which were partially offset by $37,000, or 50.6%, decrease in deposit account services expense, and a $21,000, or 25.9%, decrease in loan expenses. The reasons for the increase in salaries and employee benefits were merit increases, and increased staff for the new branch office and new mobile branch office. The reason for the increase in other expenses was primarily due to premiums on brokered certificates of deposit and charge offs due to fraudulent activity. Occupancy and equipment increased primarily due to the opening of the new branch office and new mobile branch office. Professional fees increased primarily due to expense related to the switch in auditing firms. The reason for the lower deposit account services expense is that, as stated above, since the conversion to the new core processor, our income from debit card processing as well as the corresponding expenses have been lower.

​

Income Taxes. Income taxes decreased by $32,000, or 45.7%, to $38,000 for the three months ended December 31, 2025, compared to $69,000 for the three months ended December 31, 2024. The decrease in the income tax provision was due primarily to a $137,000, or 39.6% decrease in pretax income. The effective tax rates were 18.0% and 20.8% for the three months ended December 31, 2025 and 2024, respectively.

​

​

​ 37

Table of Contents Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Cincinnati. At December 31, 2025, we had $1.0 million of outstanding borrowings from the Federal Home Loan Bank of Cincinnati. At December 31, 2025, we had the capacity to borrow an additional $49.4 million from the Federal Home Loan Bank of Cincinnati. At December 31, 2025 and 2024, the Bank had a cash management line of credit agreement with the Federal Home Loan Bank providing for additional borrowing capacity of $11.0 million. The Bank had no borrowings drawn on this line at December 31, 2025, and had $1.0 million drawn on this line at December 31, 2024.

​

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.

​

Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For further information, see the statements of cash flows contained in the financial statements beginning on page 5 of this Form 10-Q.

​

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

​

At December 31, 2025, Mercer Savings Bank exceeded all regulatory capital levels required to be considered “well capitalized.”  For further information, see Note 4 of the notes to the financial statements included as Part I, item 1 of this Quarterly Report on Form 10-Q.

​

​

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Not applicable, as the Company is a smaller reporting company.

​

Item 4.Controls and Procedures

Disclosure Controls and Procedures

​

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025. Based upon that evaluation, the principal executive officer and principal financial officer concluded that, as of December 31, 2025, the Company’s disclosure controls and procedures were effective.

​

Changes in Internal Controls Over Financial Reporting

​

During the quarter ended December 31, 2025, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

​

Part II – Other Infor mation

​ 38

Table of Contents ​

Item 1. Legal Proceedings

​

The Company is periodically involved in legal proceedings arising in the ordinary course of business. In the opinion of management, the resolution of these legal proceedings is not expected to have a material effect on the Bank’s or the Company’s financial condition or results of operations.

​

Item 1A.Risk Factors

Not applicable, as the Company is a smaller reporting company.

​

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Common Stock Repurchases. The following table presents information regarding shares of our common stock repurchased during the three months ended December 31, 2025.

​	​	​	​	​	​	​	​	​
​	​	**** ​	​	**** ​	​	Total Number of	​	Maximum Number of
​	​	**** ​	​	**** ​	​	Shares (or Units)	​	(Shares or Units)
​	​	Total Number of	​	Weighted Average	​	Purchased as Part of a	​	that May Yet Be
​	​	Shares (or Units)	​	Price Paid	​	Publicly Announced	​	Purchased Under the
Period	​	Purchased	​	per Share (or Unit)	​	Plans or Programs	​	Plans or Programs
​	​	​	​	​	​	​	​	​
October 1 to October 31, 2025	​	—	​	—	​	—	​	75,300
November 1 to November 30, 2025	​	—	​	—	​	—	​	75,300
December 1 to December 31, 2025	​	1,342	​	15.43	​	1,342	​	73,958

​

On December 18, 2024, the Company announced that it had adopted and received regulatory non-objection to a stock repurchase program. Pursuant to the program, the Company may repurchase up to 102,297 shares of its common stock, which represented approximately 10% of the Company’s outstanding common shares at the time of adoption. As of December 31, 2025, the Company had repurchased 28,339 shares for a total purchase price of $407,000. **** The repurchase program has no expiration date.

​

​

Item 3.Defaults Upon Senior Securities

None.

​

Item 4.Mine Safety Disclosures

Not applicable.

​

Item 5.Other Information

During the three months ended December 31, 2025 none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as that term is used in SEC regulations.

​ 39

Table of Contents ​

Item 6.Exhibits

​	​
3.1	Articles of Incorporation of Mercer Bancorp, Inc. (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 (file no. 333-270445), originally filed with the Securities and Exchange Commission on March 10, 2023)
3.2	Amended and Restated Bylaws of Mercer Bancorp, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on January 17, 2024)
​	​
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials for the quarter ended December 31, 2024, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Balance Sheets, (ii) Statements of Income, (iii) Statements of Comprehensive Income (Loss), (iv) Statements of Changes in Equity, (v) Statements of Cash Flows, and (vi) Notes to Financial Statements
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

​

​

​ 40

Table of Contents SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

​

​	​
​	MERCER BANCORP, INC.
​	​
​	​
Date: February 13, 2026	/s/Alvin B. Parmiter
​	Alvin B. Parmiter
​	President and Chief Executive Officer
​	​
​	​
Date: February 13, 2026	/s/Sherman E. Crum
​	Sherman E. Crum
​	Principal Financial Officer

​

​

​ 41

Exhibit 31.1

​

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

​

I, Alvin B. Parmiter, certify that:

​

1.	I have reviewed this Quarterly Report on Form 10-Q of Mercer Bancorp, Inc.;

​

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

​

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

​

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

​

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

​

b)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

​

c)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

​

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

​

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

​

b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

​

​	​
Date: February 13, 2025	/s/Alvin B. Parmiter
​	Alvin B. Parmiter
​	President and Chief Executive Officer

​

Exhibit 31.2

​

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

​

I, Sherman E. Crum, certify that:

​

1.	I have reviewed this Quarterly Report on Form 10-Q of Mercer Bancorp, Inc.;

​

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

​

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

​

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

​

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

​

b)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

​

c)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

​

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

​

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

​

b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

​

​	​
Date: February 13, 2025	/s/Sherman E. Crum
​	Sherman E. Crum
​	Principal Financial Officer

​

Exhibit 32

​

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

​

Alvin B. Parmiter, President and Chief Executive Officer of Mercer Bancorp, Inc. (the “Company”), and Sherman E. Crum, Principal Financial Officer of the Company, each certify in their capacity as an officer of the Company that they have reviewed the Quarterly Report on Form 10-Q for the quarter ended December 31, 2025 (the “Report”) and that to the best of their knowledge:

​

1.	the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

​

2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

​

​	​
Date: February 13, 2025	/s/Alvin B. Parmiter
​	Alvin B. Parmiter
​	President and Chief Executive Officer
​	​
​	​
Date: February 13, 2025	/s/Sherman E. Crum
​	Sherman E. Crum
​	Principal Financial Officer

​

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.