Steele Bancorp Inc.

What they do

Steele Bancorp operates through Central Penn Bank and Trust, taking deposits and making loans, and reports separate trust and investment lines alongside mortgage banking and card income. The company completed its merger with Northumberland Bancorp, Inc. on August 1, 2025, so 2025 comparative periods are pre-merger. Its common stock trades on the OTCID under the symbol STLE.

Revenue drivers

• Net interest income — The largest revenue source: $12.66 million for Q2 2026 and $24.87 million for the first half of 2026, driven by loans and securities, with the GAAP net interest margin at 4.31% for Q2 2026.
• Noninterest income — Totaled $1.89 million in Q2 2026 and $3.46 million for the first half of 2026; management attributes the increase mainly to trust fee income added in the Northumberland merger plus higher ATM and debit card income.
• Trust and investment services — A separate noninterest revenue line tracked in segment reporting; trust fee income acquired with Northumberland is cited as the primary driver of the noninterest income increase.
• Mortgage banking and card fees — Mortgage banking and credit and debit card income are reported as distinct revenue lines; ATM fees and debit card income rose on increased utilization and volume.

Recent performance

For Q2 2026, net income was $5.26 million versus $1.82 million in Q2 2025, a 188.8% increase, with diluted EPS of $1.54. Year-to-date net income was $10.14 million versus $3.63 million, and diluted EPS was $2.98. Net interest income rose 153.7% to $12.66 million for the quarter, and the GAAP net interest margin widened from 3.41% to 4.31% as yield on earning assets rose 70 basis points to 6.04% and cost of funds fell 22 basis points to 2.16%. Noninterest income rose 258.4% to $1.89 million, while noninterest expense rose 155.0% to $7.99 million. The company recorded a $212 thousand loan loss provision in Q2 2026 and a $93 thousand recovery on off-balance-sheet exposures.

Strategy

The near-term story is integration and scale from the August 1, 2025 Northumberland Bancorp merger, which management credits for growth in loans, securities, deposits and trust fee income. Reported results now include acquisition-related fair value adjustments across loans, certificates of deposit, subordinated debt, core deposit intangible, wealth management customer list intangible, mortgage servicing rights and leased or owned premises. Management points to a higher-yielding earning asset base and a lower cost of funds as the source of the margin expansion. The company also disclosed a shareholder vote and Regulation FD disclosure in May 2026 and a director or officer change in August 2026.

Risks

• Merger integration — Results since August 2025 include Northumberland, and management states the year-over-year periods are not directly comparable, so performance trends remain distorted by the combination.
• Rising operating costs — Noninterest expense increased 155.0%, from $3.13 million to $7.99 million, outpacing the 153.7% increase in net interest income for Q2 2026.
• Credit exposure — The Bank recorded a $212 thousand provision for credit losses on loans in Q2 2026 and still carries acquired loan portfolios with fair value adjustments and purchase credit deterioration.
• Concentrated market and OTC listing — The bank operates from Mifflinburg, Pennsylvania and its common stock is quoted on the OTCID rather than a national exchange, which can limit liquidity and investor visibility.

Outlook

Management does not provide explicit forward earnings guidance in the materials reviewed. It attributes the improved earnings to the Northumberland merger and to a 4.31% GAAP net interest margin in Q2 2026, supported by a lower cost of funds. The company reports that the 2026 periods include Northumberland while 2025 comparative periods do not, so reported growth rates should be read with that in mind.