Steele Bancorp, Inc.

Steele Bancorp, Inc. engages in business combinations, which are accounted for using the acquisition method under Accounting Standards Codification ("ASC") 805, Business Combinations. This involves identifying the acquirer and closing date, then recording the fair value of acquired assets and assumed liabilities on the acquisition date. The company uses internal or third-party valuations, such as appraisals or discounted cash flow analyses, to determine these fair values. Identifiable assets and liabilities are measured at fair value and recognized separately from goodwill or any bargain purchase gain. The results of operations for acquired entities are included in the consolidated statement of income from the acquisition date. Significant judgments are involved in calculating intangible assets, including core deposits and the fair value of loans. Core deposit intangibles are determined using a discounted cash flow model that considers factors like discount rate, attrition rate, interest rate, cost of alternative funds, and net maintenance costs. Loans acquired are recorded at their acquisition-date fair value, which is estimated by discounting expected principal and interest cash flows at a market rate. Management evaluates factors such as remaining loan life, delinquency status, estimated prepayments, payment options, loan features, internal risk grade, collateral value, and the interest rate environment. The company's acquisition of NUBC closed on August 1, 2025, with its results of operations and footnote disclosures reflecting the acquired assets and assumed liabilities. Acquisition-related costs, including advisory, legal, accounting, valuation, professional, consulting, systems conversion, integration planning, and advertising fees, are incurred to effect these business combinations.