SR BANCORP, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Rhea-AI Summary
SR Bancorp (NASDAQ: SRBK) reported net income of $940,000 ($0.13 per share) for the quarter ended June 30, 2026, down from $2.2 million a year earlier, largely reflecting prior-year life insurance gains and higher expenses. Full-year 2026 net income was $3.4 million ($0.45 basic, $0.44 diluted) versus $5.1 million in 2025.
Total assets rose 9.7% year over year to $1.19 billion, driven by net loan growth of 13.0% to $901.2 million and a 9.5% increase in deposits to $926.4 million. Net interest income increased for both the quarter and year, with net interest margin improving to 3.05% for the quarter and 3.04% for the year.
The company recorded provisions for credit losses of $271,000 for the quarter and $575,000 for the year, reflecting loan growth, while reporting no charge-offs and no non-performing loans at June 30, 2026. Borrowings from the Federal Home Loan Bank rose by $35.0 million to support loan funding, and equity decreased $12.0 million, or 6.2%, to $181.8 million, primarily due to the repurchase of 978,778 shares of common stock.
Positive
- Net interest income up $1.6 million (5.6%) year over year to $31.2 million
- Net interest margin expanded to 3.05% quarterly and 3.04% for full year
- Loan portfolio grew $104.0 million (13.0%) year over year to $901.2 million
- Deposits increased $80.4 million (9.5%) year over year to $926.4 million
- Asset quality strong with 0 non-performing loans and no charge-offs in 2026
- Allowance for credit losses maintained at 0.65% of total loans at June 30, 2026
Negative
- Net income declined $1.8 million year over year to $3.4 million
- Quarterly net income fell $1.3 million to $940,000 versus prior-year quarter
- Noninterest income decreased $1.5 million for the year to $2.2 million
- Noninterest expense rose $1.4 million (5.2%) to $28.5 million in 2026
- Provision for credit losses increased to $575,000 from $133,000 year over year
- Borrowings from FHLB increased $35.0 million, raising total to $65.0 million
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The Company reported net income of
Total assets were
Comparison of Operating Results for the Three Months Ended June 30, 2026 and 2025
General. Net income decreased
Interest Income. Interest income increased
Interest Expense. Interest expense increased
Net Interest Income. Net interest income increased
Provision for Credit Losses. The Company establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb estimated expected credit losses attributable to loans at the balance sheet date. In determining the level of the allowance for credit losses, the Company considers, among other things, past and current loss experience, evaluations of real estate collateral, economic conditions, the amount and type of lending, adverse situations that may affect a borrower's ability to repay a loan and the levels of delinquent, classified and criticized loans. The amount of the allowance is based on estimates, and the ultimate losses may vary from such estimates as more information becomes available or conditions change. The Company assesses the allowance for credit losses and records provisions for credit losses on a quarterly basis.
The Company recorded a provision for credit losses of
Noninterest Income. Noninterest income decreased
Noninterest Expense. Noninterest expense increased
Income Tax Expense. The provision for income taxes was
Comparison of Operating Results for the Year Ended June 30, 2026 and 2025
General. Net income decreased
Interest Income. Interest income increased
Interest Expense. Interest expense increased
Net Interest Income. Net interest income increased
Provision for Credit Losses. The Company recorded a provision for credit losses of
Noninterest Income. Noninterest income decreased
Noninterest Expense. Noninterest expense increased
Income Tax Expense. The provision for income taxes was
Comparison of Financial Condition at June 30, 2026 and June 30, 2025
Assets. Assets increased
Cash and Cash Equivalents. Cash and cash equivalents increased
Securities. Securities held-to-maturity decreased
Loans. Loans receivable, net, increased
Deposits. Deposits increased
Borrowings. During the year ended June 30, 2026, the Company borrowed an additional
Equity. Equity decreased
About Somerset Regal Bank
Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At June 30, 2026, Somerset Regal Bank had
Forward-Looking Statements
Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, real estate market values in the Bank's lending area, changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies, trade restrictions and measures impacting our borrowers and the broader economy, risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors, the failure to maintain current technologies and the operational risks associated with the adoption of artificial intelligence and other emerging technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement.
SR Bancorp, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Financial Condition | ||||||||
June 30, 2026 (Unaudited) and June 30, 2025 | ||||||||
(Dollars in thousands) | ||||||||
June 30, 2026 | June 30, 2025 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 3,838 | $ | 3,945 | ||||
Interest-bearing deposits at other banks | 67,623 | 53,834 | ||||||
Total cash and cash equivalents | 71,461 | 57,779 | ||||||
Securities held-to-maturity, at amortized cost | 131,154 | 141,845 | ||||||
Equity securities, at fair value | 27 | 37 | ||||||
Loans receivable, net of allowance for credit losses of | 901,191 | 797,166 | ||||||
Premises and equipment, net | 4,815 | 4,942 | ||||||
Right-of-use asset | 2,747 | 3,156 | ||||||
Restricted equity securities, at cost | 4,235 | 2,608 | ||||||
Accrued interest receivable | 3,477 | 3,072 | ||||||
Bank owned life insurance | 38,389 | 36,607 | ||||||
Goodwill and intangible assets | 25,540 | 26,708 | ||||||
Other assets | 6,408 | 10,485 | ||||||
Total assets | $ | 1,189,444 | $ | 1,084,405 | ||||
Liabilities and Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 128,155 | $ | 114,107 | ||||
Interest-bearing | 798,266 | 731,915 | ||||||
Total deposits | 926,421 | 846,022 | ||||||
Borrowings | 65,000 | 30,000 | ||||||
Advance payments by borrowers for taxes and insurance | 9,639 | 8,736 | ||||||
Accrued interest payable | 216 | 223 | ||||||
Lease liability | 2,785 | 3,211 | ||||||
Other liabilities | 3,588 | 2,433 | ||||||
Total liabilities | 1,007,649 | 890,625 | ||||||
Equity | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 79 | 89 | ||||||
Additional paid-in capital | 66,465 | 80,843 | ||||||
Retained earnings | 122,257 | 120,505 | ||||||
Unearned compensation ESOP | (6,275) | (6,655) | ||||||
Accumulated other comprehensive loss | (731) | (1,002) | ||||||
Total stockholders' equity | 181,795 | 193,780 | ||||||
Total liabilities and stockholders' equity | $ | 1,189,444 | $ | 1,084,405 | ||||
SR Bancorp, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Income | ||||||||
For the Three Months Ended June 30, 2026 (Unaudited) and June 30, 2025 | ||||||||
(Dollars in thousands) | ||||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2026 | 2025 | |||||||
Interest Income | ||||||||
Loans, including fees | $ | 11,843 | $ | 10,503 | ||||
Securities: | ||||||||
Taxable | 629 | 588 | ||||||
Interest bearing deposits at other banks | 388 | 617 | ||||||
Total interest income | 12,860 | 11,708 | ||||||
Interest Expense | ||||||||
Deposits: | ||||||||
Demand | 1,971 | 1,462 | ||||||
Savings and time | 2,394 | 2,457 | ||||||
Borrowings | 464 | 337 | ||||||
Total interest expense | 4,829 | 4,256 | ||||||
Net Interest Income | 8,031 | 7,452 | ||||||
Provision for Credit Losses | 271 | 238 | ||||||
Net Interest Income After Provision for Credit Losses | 7,760 | 7,214 | ||||||
Noninterest Income | ||||||||
Service charges and fees | 235 | 224 | ||||||
Increase in cash surrender value of bank owned life insurance | 267 | 260 | ||||||
Fees and service charges on loans | 33 | 18 | ||||||
Unrealized gain on equity securities | 3 | 5 | ||||||
Realized gain on sale of loans | 4 | — | ||||||
Gains from life insurance proceeds | — | 1,492 | ||||||
Other | 6 | 29 | ||||||
Total noninterest income | 548 | 2,028 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 3,930 | 3,628 | ||||||
Occupancy | 542 | 538 | ||||||
Furniture and equipment | 336 | 295 | ||||||
Data processing | 564 | 550 | ||||||
Advertising | 127 | 121 | ||||||
FDIC premiums | 80 | 120 | ||||||
Directors fees | 105 | 79 | ||||||
Professional fees | 328 | 430 | ||||||
Insurance | 126 | 138 | ||||||
Telephone, postage and supplies | 153 | 187 | ||||||
Other | 768 | 729 | ||||||
Total noninterest expense | 7,059 | 6,815 | ||||||
Income Before Income Tax Expense | 1,249 | 2,427 | ||||||
Income Tax Expense | 309 | 215 | ||||||
Net Income | $ | 940 | $ | 2,212 | ||||
Basic earnings per share | $ | 0.13 | $ | 0.28 | ||||
Diluted earnings per share | $ | 0.13 | $ | 0.27 | ||||
Weighted average number of common shares outstanding - basic | 7,148,933 | 8,023,666 | ||||||
Weighted average number of common shares outstanding - diluted | 7,430,275 | 8,061,281 | ||||||
SR Bancorp, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Income | ||||||||
For the Years Ended June 30, 2026 (Unaudited) and June 30, 2025 | ||||||||
(Dollars in thousands) | ||||||||
Year Ended | ||||||||
June 30, | ||||||||
2026 | 2025 | |||||||
Interest Income | ||||||||
Loans, including fees | 45,406 | 41,685 | ||||||
Securities: | ||||||||
Taxable | 2,390 | 2,436 | ||||||
Interest bearing deposits at other banks | 1,784 | 2,194 | ||||||
Total interest income | 49,580 | 46,315 | ||||||
Interest Expense | ||||||||
Deposits: | ||||||||
Demand | 7,050 | 4,963 | ||||||
Savings and time | 9,586 | 10,593 | ||||||
Borrowings | 1,712 | 1,178 | ||||||
Total interest expense | 18,348 | 16,734 | ||||||
Net Interest Income | 31,232 | 29,581 | ||||||
Provision for Credit Losses | 575 | 133 | ||||||
Net Interest Income After Provision for Credit Losses | 30,657 | 29,448 | ||||||
Noninterest Income | ||||||||
Service charges and fees | 906 | 894 | ||||||
Increase in cash surrender value of bank owned life insurance | 1,063 | 1,043 | ||||||
Fees and service charges on loans | 123 | 145 | ||||||
Unrealized (loss) gain on equity securities | (10) | 13 | ||||||
Realized gain on sale of loans | 33 | 51 | ||||||
Gains from life insurance proceeds | — | 1,492 | ||||||
Other | 101 | 96 | ||||||
Total noninterest income | 2,216 | 3,734 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 15,705 | 13,916 | ||||||
Occupancy | 2,199 | 2,219 | ||||||
Furniture and equipment | 1,326 | 1,218 | ||||||
Data processing | 2,129 | 2,191 | ||||||
Advertising | 488 | 385 | ||||||
FDIC premiums | 440 | 480 | ||||||
Directors fees | 403 | 366 | ||||||
Professional fees | 1,694 | 1,854 | ||||||
Insurance | 492 | 589 | ||||||
Telephone, postage and supplies | 689 | 755 | ||||||
Other | 2,908 | 3,082 | ||||||
Total noninterest expense | 28,473 | 27,055 | ||||||
Income Before Income Tax Expense | 4,400 | 6,127 | ||||||
Income Tax Expense | 1,047 | 991 | ||||||
Net Income | $ | 3,353 | $ | 5,136 | ||||
Basic earnings per share | $ | 0.45 | $ | 0.61 | ||||
Diluted earnings per share | $ | 0.44 | $ | 0.61 | ||||
Weighted average number of common shares outstanding - basic | 7,492,364 | 8,431,942 | ||||||
Weighted average number of common shares outstanding - diluted | 7,636,439 | 8,444,355 | ||||||
SR Bancorp, Inc. and Subsidiaries | ||||||||
Selected Ratios | ||||||||
(Dollars in thousands, except per share data) | ||||||||
Three Months Ended | Year Ended | |||||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||
(Unaudited) | (Unaudited) | |||||||
Performance Ratios: (1) | ||||||||
Return on average assets (2) | 0.33 % | 0.82 % | 0.30 % | 0.49 % | ||||
Return on average equity (3) | 1.98 % | 4.66 % | 1.74 % | 2.68 % | ||||
Net interest margin (4) | 3.05 % | 2.90 % | 3.04 % | 2.93 % | ||||
Net interest rate spread | 2.59 % | 2.33 % | 2.57 % | 2.35 % | ||||
Efficiency ratio (5) | 82.28 % | 71.89 % | 85.13 % | 81.21 % | ||||
Total gross loans to total deposits | 97.92 % | 94.86 % | 97.92 % | 94.86 % | ||||
Asset Quality Ratios: | ||||||||
Allowance for credit losses on loans as a percentage of total | 0.65 % | 0.67 % | 0.65 % | 0.67 % | ||||
Allowance for credit losses on loans as a percentage of non- | N/A | N/A | N/A | N/A | ||||
Net (charge-offs) recoveries to average outstanding loans during | N/A | N/A | N/A | N/A | ||||
Non-performing loans as a percentage of total gross loans (6) | N/A | N/A | N/A | N/A | ||||
Non-performing assets as a percentage of total assets (8) | N/A | N/A | N/A | N/A | ||||
Other Data: | ||||||||
Tangible book value per share (9) | ||||||||
Tangible common equity to tangible assets | 13.43 % | 15.80 % | 13.43 % | 15.80 % | ||||
(1) | Performance ratios for the three-month periods ended June 30, 2026 and June 30, 2025 are annualized. |
(2) | Represents net income divided by average total assets. |
(3) | Represents net income divided by average equity. |
(4) | Represents net interest income as a percentage of average interest-earning assets. |
(5) | Represents non-interest expense divided by the sum of net interest income and non-interest income. |
(6) | This ratio is not applicable for the three months and year ended June 30, 2026 and 2025 as the Company had no non-performing loans as of those periods. |
(7) | This ratio is not applicable for the three months and year ended June 30, 2026 and 2025 as the Company had no charge-offs or recoveries as of those periods. |
(8) | This ratio is not applicable for the three months and year ended June 30, 2026 and 2025 as the Company had no non-performing assets as of those periods. |
(9) | Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Goodwill and core deposit intangibles were |
NON-GAAP FINANCIAL INFORMATION
This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below.
Three Months Ended | Year Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
Net Income | $ | 940 | $ | 2,212 | $ | 3,353 | $ | 5,136 | ||||||||
Adjustments for non-recurring items: | ||||||||||||||||
Gains from life insurance proceeds | $ | — | $ | 1,492 | $ | — | $ | 1,492 | ||||||||
Net accretion, pre-tax | $ | 102 | $ | 428 | $ | 749 | $ | 2,824 | ||||||||
Subtotal | $ | 102 | $ | 1,920 | $ | 749 | $ | 4,316 | ||||||||
Tax expense | 29 | 120 | 211 | 794 | ||||||||||||
Net of items above, after-tax | $ | 73 | $ | 1,800 | $ | 538 | $ | 3,522 | ||||||||
Net Income, adjusted | $ | 867 | $ | 412 | $ | 2,815 | $ | 1,614 | ||||||||
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SOURCE SR Bancorp, Inc.