MIFFLINBURG BANCORP INC (MIFF)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered strong profitability with net income of $1.806M and EPS of $0.97, up 33% YoY, driven by loan growth and expanding net interest margin to 3.31% .
• Net interest income increased 24% YoY to $4.742M as yields on earning assets rose 55 bps YoY to 5.24% while cost of funds increased just 14 bps; efficiency ratio improved to 58.10% from 63.91% YoY, signaling better operating leverage .
• Balance sheet strengthened: deposits grew $16.9M QoQ to $506.4M, FHLB advances fell $9.0M QoQ to $34.0M; liquidity remained robust with FHLB capacity of $154.9M .
• Dividend raised: Board declared a semi-annual dividend of $0.74 per share payable June 27, 2025 (vs. $0.72 YTD in 2024), a potential support for total return .
• Merger with Northumberland Bancorp advanced as NUBC shareholders approved the transaction on April 29, 2025, subject to regulatory approvals—an ongoing strategic catalyst .

What Went Well and What Went Wrong

What Went Well

• Net interest margin expanded to 3.31% from 2.87% YoY, reflecting disciplined funding and asset yield improvement; net interest income rose 23.8% YoY to $4.7M .
• Operating efficiency improved: the efficiency ratio declined to 58.10% from 63.91% YoY, indicating better expense control relative to revenue generation .
• Liquidity and funding mix improved: deposits increased $16.9M QoQ and FHLB advances decreased $9.0M QoQ; borrowing capacity remained ample (FHLB $154.9M; Fed window $1.7M) .
• Management highlighted drivers: “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.” .
• Strategic progress: “We are encouraged by the strong support NUBC shareholders have expressed for this strategic partnership… creating enhanced long-term value for our shareholders.” (CEO Jeffrey J. Kapsar) .

What Went Wrong

• Noninterest expense increased 10.1% YoY to $3.095M, with $163K of merger expenses recorded in Q1; such items, while non-recurring, pressured operating costs .
• Credit cost commentary in the press release text appears inconsistent with the income statement table ($70K described vs. $7K reported in the financial table), requiring investor caution and follow-up for clarification .
• Quarterly ROA/ROE depressed in Q4 2024 (ROA 0.28%, ROE 2.93%), highlighting volatility in quarterly performance amidst merger and cost dynamics before the recovery in Q1 2025 .

Financial Results

Income Statement and EPS Comparison

Notes: The press release narrative references noninterest income of $567K for Q1 2024 and a $70K provision for credit losses for Q1 2025; the detailed financial tables show $573K and $7K respectively—investors should rely on the tabular disclosures and seek management clarification on the text/table discrepancy .

Key Ratios

Balance Sheet Highlights (Period-End)

Asset Quality

Guidance Changes

No explicit revenue/EPS/margin guidance was provided in Q1 2025 materials; forward-looking statements caution against reliance without SEC-filed S-4/proxy details related to the NUBC merger .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in our document set [ListDocuments returned none]. The narrative below reflects press release disclosures.

Management Commentary

• “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.” — Q1 2025 press release .
• “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.” — Q1 2025 press release .
• “We are encouraged by the strong support NUBC shareholders have expressed for this strategic partnership… creating enhanced long-term value for our shareholders.” — Jeffrey J. Kapsar, President & CEO, merger update .
• Liquidity positioning: FHLB capacity $154.9M; Fed discount window capacity $1.7M; brokered deposits outstanding $16.3M as of March 31, 2025 .

Q&A Highlights

No earnings call transcript was available for Q1 2025; therefore, there were no recorded analyst Q&A exchanges or guidance clarifications in our source set [ListDocuments returned none].

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 2025 EPS and revenue for MIFF; the SPGI mapping was unavailable, and consensus could not be obtained (Missing CIQ mapping for ticker MIFF). As a result, we cannot assess beats/misses versus Wall Street consensus at this time [GetEstimates error].

Key Takeaways for Investors

• Margin expansion is the core driver: net interest margin increased to 3.31% while cost of funds growth moderated; this underpinned YoY EPS growth of 33% and improved efficiency .
• Balance sheet mix improved QoQ: deposits rose $16.9M and FHLB advances fell $9.0M, reducing wholesale reliance while maintaining significant borrowing capacity—positive for funding resilience .
• Asset quality remains solid with low NPA/Loans + OREO at 0.10% and high ACL coverage (1,004.74% of nonperforming loans), supporting credit stability amid growth .
• Merger with NUBC is progressing post shareholder approval; regulatory approvals remain a key milestone and potential re-rating catalyst upon close .
• Elevated but manageable noninterest expenses included $163K merger-related costs in Q1; investors should normalize for such items when assessing run-rate profitability .
• Dividend increased to $0.74 (semi-annual), enhancing shareholder returns and potentially stabilizing the stock through income support .
• Documentation discrepancies (e.g., Q1 provision $7K in tables vs. $70K in text; Q1 2024 noninterest income $573K in tables vs. $567K in text) warrant investor engagement with management for clarity; rely on tabular disclosures for modeling .