Wed, Aug 14, 7:53 PM (153 days ago)
Mercer Bancorp, Inc. reported its quarterly financial results for the period ending June 30, 2024. Total assets increased by 11.1% to $176.6 million, driven primarily by a $16.5 million rise in loans and loans held for sale. Cash and cash equivalents rose by 8.1% to $6.8 million. Despite these gains, net income fell by 49.7% to $145,000 due to a significant increase in noninterest expenses and provisions for credit losses, which rose to $68,000. Interest income surged 40.8% to $2.1 million, largely from a 43.0% increase in loan interest, while interest expense skyrocketed by 299.3% to $671,000, reflecting higher costs of deposits and borrowings. The net interest margin decreased to 3.51% from 3.79% due to rising liability costs outpacing asset yields. The company adopted the CECL model, resulting in a $32,000 increase in the allowance for credit losses. Nonperforming loans decreased to $356,000. Shareholders' equity rose by 3.7% to $23.5 million, supported by retained earnings. Overall, while revenue metrics improved, increased costs and credit loss provisions significantly impacted profitability.