STLE 8-K
Steele Bancorp Inc (STLE)
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(State or other jurisdiction of
incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| None | None | None |
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Exhibit
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Number Description
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99.1
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104
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Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)
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| Date: April 23, 2025 | Mifflinburg Bancorp, Inc. | |||
| By: | /s/ Thomas C. Graver Jr. | |||
| Name: | Thomas C. Graver Jr. | |||
| Title: | Senior Executive Vice President & Chief Financial Officer | |||
Exhibit 99.1
Press Release – For Immediate Release
Wednesday, April 23, 2025
Mifflinburg Bancorp, Inc., Reports First Quarter 2025 Earnings
Mifflinburg, PA – Mifflinburg Bancorp, Inc. (“Company”) (OTC Pink: MIFF), parent company of Mifflinburg Bank and Trust Company (“Bank”), has released its unaudited consolidated financial statements for the first quarter of 2025.
Financial Results
Net income, as reported under U.S. Generally Accepted Accounting Principles (“GAAP”), for the quarter-ended March 31, 2025 was $1,806,000 compared to $1,356,000 for the same period in 2024, a 33.2% increase. Basic and diluted earnings per share for the quarters-ended March 31, 2025 and 2024 were $0.97 and $0.73, respectively. Return on average assets and return on average equity were 1.20% and 12.66% for the quarter ended March 31, 2025 compared to 0.97% and 9.88% for the same period of 2024.
Net interest income for the quarter-ended March 31, 2025 was $4.7 million compared to $3.8 million for the same period in 2024, a 23.8% increase. The significant increase in net interest income is primarily driven by loan growth of 3.0% quarter-to-date and by market interest rates starting to decline thus slowing the increase in cost of funds. Yield on earning assets increased 55 basis points, to 5.24% for the quarter-ended March 31, 2025 compared to the quarter-ended March 31, 2024, while the cost of funds increased 14 basis points, to 2.35%, as compared to the same time period in 2024. The net interest margin increased from 2.87% for the quarter-ended March 31, 2024 to 3.31% for the quarter-ended March 31, 2025.
The Bank recorded a provision for credit losses of $70,000 for the quarter-ended March 31, 2025. This is offset by a $63,000 reduction in the unfunded commitment reserve. The Bank did not record a provision for credit losses for the quarter-ended March 31, 2024.
Non-interest income for the quarter-ended March 31, 2025 was $585,000 compared to $567,000 for the same period in 2024, a 3.2% increase. The increase in non-interest income is primarily the result of a $52,000 gain on sale of premises in the first quarter of 2025.
Non-interest expense for the quarter-ended March 31, 2025 was $3.1 million compared to $2.8 million for the same period in 2024, a 10.1% increase. The increase in non-interest expense is primarily the result of merger expenses totaling $163,000 that was recorded in the first quarter of 2025.
An income tax provision of $419,000 was recorded for the quarter ended March 31, 2025, compared to an income tax provision of $231,000 for the quarter ended March 31, 2024, an 81.4% increase. The increase in the tax provision is primarily the result of non-deductible merger expenses and by tax-exempt interest income representing a smaller percentage of total interest income.
Financial Condition
Total assets increased to $607.9 million as of March 31, 2025 from $596.7 million as of December 31, 2024, an increase of 1.9%. Cash and cash equivalents increased $3.8 million from December 31, 2024 to March 31, 2025. Net loans increased by $13.0 million, or 3.0%, offset by securities available for sale decreasing $5.2 million and by interest-bearing time deposits decreasing $1.0 million from December 31, 2024 to March 31, 2025. Total deposits increased $16.9 million from December 31, 2024 to March 31, 2025, and Federal Home Loan Bank advances decreased $9.0 million from December 31, 2024 to March 31, 2025.
When compared to December 31, 2024, stockholders’ equity, excluding accumulated other comprehensive loss, increased $1.8 million to $62.1 million as of March 31, 2025. For the quarter-ended March 31, 2025 no cash dividends were paid to stockholders, as compared to $1.45 for the year-ended December 31, 2024. Mifflinburg Bancorp, Inc. remains well capitalized, with an equity-to-assets ratio of 9.6% as of March 31, 2025 and 9.4% at December 31, 2024.
The Bank maintained a strong liquidity position as of March 31, 2025, with additional borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $154.9 million and $1.7 million in additional borrowing capacity from the Federal Reserve’s Discount Window. In addition, the Bank has access to brokered deposits and has $16.3 million outstanding as of March 31, 2025.
About Mifflinburg Bancorp, Inc.
Mifflinburg Bancorp, Inc. is a bank holding company organized under the Pennsylvania Business Corporation Law on February 3, 1986. The assets are primarily those of its wholly owned subsidiary, Mifflinburg Bank and Trust Company, established in 1872. Mifflinburg Bank and Trust Company is a full-service commercial bank servicing customers from seven locations in Union, Snyder, Northumberland and Centre counties. The Company has 77 employees as of March 31, 2025, and total assets of $608 million.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward -looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as “anticipates,” “believes,” estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should” and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; risks related to the proposed merger with Northumberland Bancorp; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the other factors discussed in other reports Mifflinburg or Northumberland may file with the U.S. Securities and Exchange Commission (the “SEC”) . We do not undertake and specifically disclaim any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, expect as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.
Mifflinburg Bancorp, Inc. and Northumberland Bancorp Merger - Additional Information and Where to Find It
On September 25, 2024 Mifflinburg Bancorp, Inc. (OTCPK: MIFF) and Northumberland Bancorp (OTCPK: NUBC) jointly announced the signing of a definitive merger agreement to combine the two companies in a strategic merger of equals. In connection with the proposed transaction, Mifflinburg has filed a registration statement on Form S-4 with the SEC. The registration statement includes a proxy statement of Northumberland and a prospectus of Mifflinburg for the Mifflinburg common stock to be offered to Northumberland shareholders in connection with the merger, that will be sent to Northumberland's shareholders seeking their approval of the proposed merger.
The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Investors and security holders of Mifflinburg and Northumberland and their respective affiliates are urged to read the registration statement on Form S-4, the proxy statement/prospectus included within the registration statement on Form S-4 and any other relevant documents filed or to be filed with the SEC in connection with the proposed merger, as well as any amendments or supplements to those documents, because they will contain important information about Mifflinburg, Northumberland and the proposed merger. Investors and security holders will be able to obtain a free copy of the registration statement, including the proxy statement/prospectus, as well as other relevant documents filed with the SEC containing information about Mifflinburg and Northumberland, without charge, at the SEC’s website (http://www.sec.gov). Copies of documents filed with the SEC by Mifflinburg will be made available free of charge in the “Investor Relations” section of Mifflinburg’s website, https://www.mbtc.com/Resources/Investor-Relations. Copies of documents filed with the SEC by Northumberland will be made available free of charge in the "Investor Information" section of Northumberland's website, https://norrybank.com/about-us/investor-information.
Participants in Solicitation
Mifflinburg, Northumberland, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed merger under the rules of the SEC. Information regarding directors and executive officers of Mifflinburg and Northumberland will be made available in the proxy statement/prospectus filed by Mifflinburg with the SEC in connection with this proposed merger, and certain other documents filed with the SEC by Mifflinburg and Northumberland, respectively. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.
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Mifflinburg Bancorp, Inc. Consolidated Balance Sheets |
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(Dollars in thousands, except per share data) |
March 31, 2025 (Unaudited) |
*December 31, 2024 |
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Assets |
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Cash and due from banks |
$ | 5,929 | $ | 4,580 | ||||
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Interest-bearing demand deposits |
4,277 | 3,213 | ||||||
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Federal funds sold |
2,793 | 1,386 | ||||||
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Total cash and cash equivalents |
12,999 | 9,179 | ||||||
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Interest-bearing time deposits |
9,389 | 10,369 | ||||||
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Debt securities available-for-sale, at fair value |
110,869 | 116,053 | ||||||
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Marketable equity securities, at fair value |
275 | 268 | ||||||
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Restricted investments in bank stock, at cost |
2,026 | 2,300 | ||||||
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Loans held for sale |
234 | - | ||||||
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Loans |
449,448 | 436,339 | ||||||
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Allowance for credit losses |
(4,451 | ) | (4,379 | ) | ||||
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Net loans |
444,997 | 431,960 | ||||||
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Premises and equipment, net |
8,061 | 8,251 | ||||||
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Accrued interest receivable |
2,032 | 1,804 | ||||||
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Other real estate owned |
77 | - | ||||||
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Bank owned life insurance |
13,029 | 12,966 | ||||||
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Net deferred tax asset |
2,100 | 2,247 | ||||||
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Other assets |
1,811 | 1,305 | ||||||
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Total Assets |
$ | 607,899 | $ | 596,702 | ||||
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Liabilities and Stockholders' Equity |
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Liabilities |
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Deposits: |
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Noninterest-bearing |
$ | 81,866 | $ | 69,746 | ||||
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Interest-bearing |
424,550 | 419,783 | ||||||
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Total deposits |
506,416 | 489,529 | ||||||
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Repurchase agreements |
1,880 | 1,143 | ||||||
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Federal Home Loan Bank advances |
34,001 | 43,050 | ||||||
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Accrued interest payable |
1,904 | 1,736 | ||||||
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Other liabilities |
5,333 | 5,327 | ||||||
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Total Liabilities |
549,534 | 540,785 | ||||||
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Commitments and Contingencies |
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Redeemable Common Stock Held By Employee Stock Ownership Plan |
1,802 | 1,877 | ||||||
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Stockholders' Equity |
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Common stock, par value $1.00 per share; authorized 5,000,000 shares; issued 2,160,000 shares; outstanding 1,858,536 and 1,858,536 shares at March 31, 2025 and December 31, 2024, respectively |
2,160 | 2,160 | ||||||
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Capital surplus |
1,899 | 1,899 | ||||||
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Retained earnings |
65,819 | 64,013 | ||||||
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Accumulated other comprehensive loss |
(3,782 | ) | (4,424 | ) | ||||
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Treasury stock, at cost: 2025: 301,464 shares; 2024: 301,464 shares |
(7,731 | ) | (7,731 | ) | ||||
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Total Stockholders' Equity |
58,365 | 55,917 | ||||||
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Less maximum cash obligation to ESOP shares |
1,802 | 1,877 | ||||||
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Total Stockholders’ Equity Less Maximum Cash Obligations Related to ESOP Shares |
56,563 | 54,040 | ||||||
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Total Liabilities and Stockholders' Equity |
$ | 607,899 | $ | 596,702 | ||||
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* Derived from audited consolidated financial statements. |
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Mifflinburg Bancorp, Inc. Consolidated Statements of Income |
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For the Three Months Ended March 31, |
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(Dollars In Thousands, Except Share and Per Share Data) (unaudited) |
2025 |
2024 |
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Interest and Dividend Income |
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Interest and fees on loans |
$ | 6,407 | $ | 5,167 | ||||
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Interest-bearing deposits in banks |
116 | 146 | ||||||
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Federal funds sold |
6 | 8 | ||||||
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Securities: |
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Taxable |
531 | 473 | ||||||
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Tax-exempt |
295 | 306 | ||||||
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Dividends |
48 | 47 | ||||||
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Total Interest and Dividend Income |
7,403 | 6,147 | ||||||
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Interest Expense |
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Deposits |
2,218 | 2,030 | ||||||
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Federal Home Loan Bank advances |
442 | 171 | ||||||
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Other borrowings |
1 | 116 | ||||||
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Total Interest Expense |
2,661 | 2,317 | ||||||
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Net Interest Income |
4,742 | 3,830 | ||||||
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Provision for credit losses |
7 | - | ||||||
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Net Interest Income after provision for credit losses |
4,735 | 3,830 | ||||||
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Noninterest Income |
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Service charges on deposit accounts |
131 | 105 | ||||||
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ATM fees and debit card income |
183 | 181 | ||||||
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Mortgage banking revenue |
42 | 77 | ||||||
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Commissions from investment product sales |
48 | 30 | ||||||
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Gain from sale of premises |
52 | - | ||||||
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Net marketable equity security gains |
7 | 51 | ||||||
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Earnings on bank owned life insurance |
63 | 64 | ||||||
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Other |
59 | 65 | ||||||
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Total Noninterest Income |
585 | 573 | ||||||
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Noninterest Expense |
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Salaries and employee benefits |
1,795 | 1,750 | ||||||
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Net occupancy and equipment expense |
302 | 299 | ||||||
| Loss on sale of other real estate owned | - | 6 | ||||||
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Data processing fees |
177 | 172 | ||||||
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Pennsylvania shares tax |
114 | 106 | ||||||
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Professional fees |
46 | 49 | ||||||
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Advertising expense |
31 | 34 | ||||||
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FDIC deposit insurance |
67 | 63 | ||||||
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Merger expenses |
163 | - | ||||||
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Other |
400 | 337 | ||||||
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Total Noninterest Expense |
3,095 | 2,816 | ||||||
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Income Before Income Taxes |
2,225 | 1,587 | ||||||
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Income Taxes |
419 | 231 | ||||||
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Net Income |
$ | 1,806 | $ | 1,356 | ||||
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Earnings Per Share – Basic and diluted |
$ | 0.97 | $ | 0.73 | ||||
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Weighted Average Shares Outstanding |
1,858,536 | 1,858,536 | ||||||
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Mifflinburg Bancorp, Inc. Key Ratios and Other Data (Unaudited) |
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As of and for the Three Months Ended |
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($ in thousands) |
March 31, 2025 |
December 31, 2024 |
March 31, 2024 |
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Average Balances |
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Cash and due from banks |
$ | 5,248 | $ | 5,537 | $ | 5,399 | ||||||
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Interest-bearing deposits |
11,589 | 18,438 | 17,805 | |||||||||
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Securities available for sale, at fair value |
123,172 | 128,500 | 126,519 | |||||||||
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Mortgage loans held for sale |
20 | 3 | 79 | |||||||||
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Loans, gross |
446,174 | 385,723 | 391,261 | |||||||||
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Loans, net of allowance for credit losses |
441,793 | 381,888 | 387,427 | |||||||||
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Total assets |
604,318 | 593,544 | 559,265 | |||||||||
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Noninterest bearing deposits |
80,664 | 79,632 | 76,884 | |||||||||
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Interest-bearing and savings deposits |
287,708 | 281,232 | 277,621 | |||||||||
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Time deposits |
129,558 | 108,075 | 113,595 | |||||||||
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Total deposits |
497,930 | 468,939 | 468,100 | |||||||||
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Stockholders’ equity |
57,061 | 52,106 | 54,912 | |||||||||
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Financial Ratios |
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Return on average assets (Annualized) |
1.20 | % | 0.28 | % | 0.97 | % | ||||||
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Return on average equity (Annualized) |
12.66 | % | 2.93 | % | 9.88 | % | ||||||
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Efficiency ratio (1) |
58.10 | % | 78.87 | % | 63.91 | % | ||||||
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Allowance for Loan Credit Losses |
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Beginning balance |
$ | 4,379 | $ | 3,861 | $ | 3,861 | ||||||
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Provision for credit losses |
70 | 569 | - | |||||||||
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Charge-offs |
- | (62 | ) | (5 | ) | |||||||
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Recoveries |
2 | 11 | 1 | |||||||||
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Ending balance |
$ | 4,451 | $ | 4,379 | $ | 3,857 | ||||||
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(1) |
The efficiency ratio is calculated as noninterest expense divided by the sum of noninterest income and net interest income. |
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Mifflinburg Bancorp, Inc. Asset Quality Data (Unaudited) |
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As of the Three Months Ended |
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($ in thousands) |
March 31, 2025 |
December 31, 2024 |
March 31, 2024 |
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Nonperforming Assets |
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Nonaccrual loans |
$ | 366 | $ | 438 | $ | 330 | ||||||
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Other real estate owned |
77 | - | - | |||||||||
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Total nonperforming assets |
$ | 443 | $ | 438 | $ | 330 | ||||||
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Loans 90 days or more past due and accruing |
- | - | - | |||||||||
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Asset Quality Ratios |
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Nonperforming assets to loans plus other real estate |
0.10 | % | 0.10 | % | 0.08 | % | ||||||
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Allowance for credit losses on loans to total loans |
0.99 | % | 1.00 | % | 0.98 | % | ||||||
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Allowance for credit losses on loans to nonperforming loans |
1,004.74 | % | 999.77 | % | 1,165.26 | % | ||||||