SR BANCORP, INC. ANNOUNCES QUARTERLY FINANCIAL RESULTS
SR Bancorp reported net income of $537,000 ($0.06 per share) for Q1 2025, down from $1.1 million in Q1 2024. Total assets reached $1.07 billion, marking a 5.2% increase from June 2024. Net loans grew 6.7% to $780.8 million, while deposits increased 3.5% to $835.6 million.
The bank's performance reflects significant changes following its September 2023 conversion from mutual to stock form and merger with Regal Bancorp. Net interest income decreased 13.1% to $7.2 million, with net interest margin declining to 2.82%. The bank maintained strong asset quality with no non-performing loans and an allowance for credit losses at 0.65% of total loans.
Notable metrics include a 27.2% increase in interest expense to $4.3 million and a 5% growth in noninterest income to $542,000. The bank's efficiency improved with a 6.7% reduction in noninterest expenses to $7.1 million, primarily due to decreased data processing and occupancy costs.
SR Bancorp ha registrato un utile netto di 537.000 dollari (0,06 dollari per azione) nel primo trimestre del 2025, in calo rispetto a 1,1 milioni di dollari nel primo trimestre del 2024. Gli attivi totali hanno raggiunto 1,07 miliardi di dollari, con un incremento del 5,2% rispetto a giugno 2024. I prestiti netti sono cresciuti del 6,7% raggiungendo 780,8 milioni di dollari, mentre i depositi sono aumentati del 3,5% a 835,6 milioni di dollari.
La performance della banca riflette cambiamenti significativi dopo la conversione da mutuale a società per azioni avvenuta a settembre 2023 e la fusione con Regal Bancorp. Il reddito netto da interessi è diminuito del 13,1% attestandosi a 7,2 milioni di dollari, con un margine di interesse netto sceso al 2,82%. La banca ha mantenuto una solida qualità degli attivi, senza prestiti in sofferenza e con un accantonamento per perdite su crediti pari allo 0,65% dei prestiti totali.
Tra i dati rilevanti si segnala un aumento del 27,2% delle spese per interessi, salite a 4,3 milioni di dollari, e una crescita del 5% dei ricavi non da interessi, che hanno raggiunto 542.000 dollari. L’efficienza della banca è migliorata grazie a una riduzione del 6,7% delle spese non da interessi, scese a 7,1 milioni di dollari, principalmente per la diminuzione dei costi di elaborazione dati e di occupazione.
SR Bancorp reportó un ingreso neto de 537.000 dólares (0,06 dólares por acción) en el primer trimestre de 2025, una disminución respecto a 1,1 millones de dólares en el primer trimestre de 2024. Los activos totales alcanzaron 1.070 millones de dólares, lo que representa un aumento del 5,2% desde junio de 2024. Los préstamos netos crecieron un 6,7% hasta 780,8 millones de dólares, mientras que los depósitos aumentaron un 3,5% hasta 835,6 millones de dólares.
El desempeño del banco refleja cambios significativos tras su conversión de mutual a sociedad anónima en septiembre de 2023 y la fusión con Regal Bancorp. Los ingresos netos por intereses disminuyeron un 13,1% hasta 7,2 millones de dólares, con un margen neto de interés que bajó al 2,82%. El banco mantuvo una sólida calidad de activos, sin préstamos morosos y con una provisión para pérdidas crediticias del 0,65% sobre el total de préstamos.
Entre las métricas destacadas, los gastos por intereses aumentaron un 27,2% hasta 4,3 millones de dólares y los ingresos no relacionados con intereses crecieron un 5% hasta 542.000 dólares. La eficiencia del banco mejoró con una reducción del 6,7% en gastos no relacionados con intereses, que cayeron a 7,1 millones de dólares, principalmente debido a menores costos en procesamiento de datos y ocupación.
SR Bancorp는 2025년 1분기에 537,000달러(주당 0.06달러)의 순이익을 보고했으며, 이는 2024년 1분기의 110만 달러에서 감소한 수치입니다. 총 자산은 10억 7천만 달러에 달하며, 2024년 6월 대비 5.2% 증가했습니다. 순대출금은 6.7% 증가한 7억 8,080만 달러를 기록했고, 예금은 3.5% 증가한 8억 3,560만 달러였습니다.
은행의 실적은 2023년 9월 상호조합에서 주식회사로 전환하고 Regal Bancorp와 합병한 이후의 중요한 변화를 반영합니다. 순이자수익은 13.1% 감소한 720만 달러였으며, 순이자마진은 2.82%로 하락했습니다. 은행은 부실대출이 없고 총대출 대비 0.65%의 대손충당금을 유지하며 우수한 자산 건전성을 유지했습니다.
주요 지표로는 이자비용이 27.2% 증가하여 430만 달러에 달했고, 비이자수익은 5% 증가한 54만 2천 달러를 기록했습니다. 데이터 처리비용과 점포 운영비용 감소로 인해 비이자비용은 6.7% 줄어든 710만 달러로 효율성이 향상되었습니다.
SR Bancorp a annoncé un bénéfice net de 537 000 dollars (0,06 dollar par action) pour le premier trimestre 2025, en baisse par rapport à 1,1 million de dollars au premier trimestre 2024. Le total des actifs a atteint 1,07 milliard de dollars, soit une augmentation de 5,2 % depuis juin 2024. Les prêts nets ont augmenté de 6,7 % pour atteindre 780,8 millions de dollars, tandis que les dépôts ont progressé de 3,5 % à 835,6 millions de dollars.
La performance de la banque reflète des changements significatifs suite à sa conversion de mutuelle en société par actions en septembre 2023 et sa fusion avec Regal Bancorp. Le revenu net d’intérêts a diminué de 13,1 % pour s’établir à 7,2 millions de dollars, avec une marge nette d’intérêts en baisse à 2,82 %. La banque a maintenu une forte qualité d’actifs, sans prêts non performants et avec une provision pour pertes sur crédits représentant 0,65 % du total des prêts.
Parmi les indicateurs notables, les charges d’intérêts ont augmenté de 27,2 % pour atteindre 4,3 millions de dollars et les revenus hors intérêts ont progressé de 5 % à 542 000 dollars. L’efficacité de la banque s’est améliorée grâce à une réduction de 6,7 % des charges hors intérêts, tombées à 7,1 millions de dollars, principalement en raison d’une baisse des coûts liés au traitement des données et à l’occupation des locaux.
SR Bancorp meldete für das erste Quartal 2025 einen Nettogewinn von 537.000 US-Dollar (0,06 US-Dollar je Aktie), was einen Rückgang gegenüber 1,1 Millionen US-Dollar im ersten Quartal 2024 darstellt. Die Gesamtaktiva erreichten 1,07 Milliarden US-Dollar, was einem Anstieg von 5,2 % seit Juni 2024 entspricht. Die Nettokredite stiegen um 6,7 % auf 780,8 Millionen US-Dollar, während die Einlagen um 3,5 % auf 835,6 Millionen US-Dollar zunahmen.
Die Leistung der Bank spiegelt bedeutende Veränderungen nach der Umwandlung von einer Genossenschaft in eine Aktiengesellschaft im September 2023 und der Fusion mit Regal Bancorp wider. Der Nettozinsertrag sank um 13,1 % auf 7,2 Millionen US-Dollar, mit einer Nettomarge von 2,82 %. Die Bank hielt eine starke Vermögensqualität mit keinen notleidenden Krediten und einer Rückstellung für Kreditverluste von 0,65 % der Gesamtkredite aufrecht.
Bemerkenswerte Kennzahlen sind ein Anstieg der Zinsaufwendungen um 27,2 % auf 4,3 Millionen US-Dollar und ein Wachstum der sonstigen Erträge um 5 % auf 542.000 US-Dollar. Die Effizienz der Bank verbesserte sich durch eine Reduzierung der sonstigen Aufwendungen um 6,7 % auf 7,1 Millionen US-Dollar, hauptsächlich aufgrund geringerer Datenverarbeitungs- und Raumkosten.
- Total assets increased 5.2% to $1.07B from $1.02B at June 30, 2024
- Net loans grew 6.7% to $780.8M, showing strong lending activity
- Total deposits increased 3.5% to $835.6M
- Zero non-performing loans at March 31, 2025, improved from $220,000 year prior
- Nine-month net income of $2.9M vs loss of $7.8M in prior year period
- Quarterly net income declined 49.5% to $537,000 from $1.1M year-over-year
- Net interest margin decreased 49 basis points to 2.82% from 3.31%
- Interest expense increased 27.2% to $4.3M due to higher deposit costs
- Net interest income decreased 13.1% to $7.2M from $8.3M year-over-year
- Cost of interest-bearing deposits rose 106 basis points to 1.75%
Insights
SR Bancorp shows asset growth but concerning decline in profitability metrics with net interest margin compression and significant earnings decreases.
SR Bancorp's Q1 2025 results reveal significant pressures on the bank's core profitability despite growth in key balance sheet metrics. The headline numbers show a 49.5% drop in quarterly net income to
The bank's fundamental earnings engine is weakening considerably. Net interest income decreased
The balance sheet shows growth, with assets up
Some positive elements include no non-performing loans, reduced noninterest expense (
The increasing funding costs – particularly the 106 basis point jump in interest-bearing deposit costs – coupled with declining yields on loans presents a fundamental challenge to the bank's business model. While maintaining a clean loan book is commendable, the significant compression in earnings power overshadows the positive balance sheet growth.
The Company reported net income of
Total assets were
Completed Stock Offering and Merger
The conversion of Somerset Savings Bank, SLA from the mutual to stock form of organization and related stock offering by the Company was completed on September 19, 2023. In connection therewith, the Company sold 9,055,172 shares of common stock at a price of
Promptly following the completion of the conversion and related stock offering, Regal Bancorp merged with and into the Company, with the Company as the surviving entity (the "Merger"). Immediately following the Merger, Regal Bank, a
Comparison of Operating Results for the Three Months Ended March 31, 2025 and 2024
General. Net income decreased
Interest Income. Interest income decreased
Interest Expense. Interest expense increased
Net Interest Income. Net interest income decreased
Provision for Credit Losses. The Bank 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 probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Bank 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 Bank assesses the allowance for credit losses and records provisions for credit losses on a quarterly basis.
The Bank recorded a provision for credit losses of
Noninterest Income. Noninterest income increased
Noninterest Expense. Noninterest expense decreased
Income Tax Expense. The provision for income taxes was
Comparison of Operating Results for the Nine Months Ended March 31, 2025 and 2024
General. Net income increased
Interest Income. Interest income increased
Interest Expense. Interest expense increased
Net Interest Income. Net interest income increased
Provision for Credit Losses. The Bank recorded a recovery for credit losses of
Noninterest Income. Noninterest income increased
Noninterest Expense. Noninterest expense decreased
Income Tax Expense. The provision for income taxes was
Comparison of Financial Condition at March 31, 2025 and June 30, 2024
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 nine months ended March 31, 2025, the Bank borrowed
Equity. Equity decreased
About Somerset Regal Bank
Somerset Regal Bank is a full-service
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
SR Bancorp, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Financial Condition March 31, 2025 (Unaudited) and June 30, 2024 (Dollars in thousands) | ||||||||
March 31, 2025 | June 30, 2024 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 4,537 | $ | 8,622 | ||||
Interest-bearing deposits at other banks | 57,687 | 37,287 | ||||||
Total cash and cash equivalents | 62,224 | 45,909 | ||||||
Securities held-to-maturity, at amortized cost | 145,413 | 156,144 | ||||||
Equity securities, at fair value | 32 | 25 | ||||||
Loans receivable, net of allowance for credit losses of | 780,795 | 731,859 | ||||||
Premises and equipment, net | 4,972 | 5,419 | ||||||
Right-of-use asset | 1,926 | 2,311 | ||||||
Restricted equity securities, at cost | 2,581 | 1,231 | ||||||
Accrued interest receivable | 2,964 | 2,695 | ||||||
Bank owned life insurance | 37,876 | 37,093 | ||||||
Goodwill and intangible assets | 27,039 | 28,141 | ||||||
Other assets | 8,085 | 10,017 | ||||||
Total assets | $ | 1,073,907 | $ | 1,020,844 | ||||
Liabilities and Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 106,020 | $ | 108,026 | ||||
Interest-bearing | 729,564 | 699,074 | ||||||
Total deposits | 835,584 | 807,100 | ||||||
Borrowings | 30,000 | — | ||||||
Advance payments by borrowers for taxes and insurance | 8,318 | 8,073 | ||||||
Accrued interest payable | 237 | 149 | ||||||
Lease liability | 2,012 | 2,403 | ||||||
Other liabilities | 2,688 | 3,636 | ||||||
Total liabilities | 878,839 | 821,361 | ||||||
Equity | ||||||||
Preferred Stock, | — | — | ||||||
Common stock, | 92 | 95 | ||||||
Additional paid-in capital | 84,466 | 91,436 | ||||||
Retained earnings | 118,705 | 116,205 | ||||||
Unearned compensation ESOP | (6,751) | (7,036) | ||||||
Accumulated other comprehensive loss | (1,444) | (1,217) | ||||||
Total stockholders' equity | 195,068 | 199,483 | ||||||
Total liabilities and stockholders' equity | $ | 1,073,907 | $ | 1,020,844 | ||||
SR Bancorp, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Statements of Income For the Three and Nine Months Ended March 31, 2025 (Unaudited) and March 31, 2024 (Unaudited) (Dollars in thousands)
| ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Interest Income | ||||||||||||||||
Loans, including fees | $ | 10,346 | $ | 9,819 | $ | 31,069 | $ | 23,760 | ||||||||
Securities: | ||||||||||||||||
Taxable | 600 | 779 | 1,848 | 2,489 | ||||||||||||
Federal funds sold | — | 76 | — | 157 | ||||||||||||
Interest bearing deposits at other banks | 537 | 974 | 1,578 | 3,071 | ||||||||||||
Total interest income | 11,483 | 11,648 | 34,495 | 29,477 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand | 1,332 | 122 | 3,500 | 504 | ||||||||||||
Savings and time | 2,584 | 3,031 | 8,136 | 6,834 | ||||||||||||
Borrowings | 383 | 227 | 842 | 707 | ||||||||||||
Total interest expense | 4,299 | 3,380 | 12,478 | 8,045 | ||||||||||||
Net Interest Income | 7,184 | 8,268 | 22,017 | 21,432 | ||||||||||||
Provision (Credit) for Credit Losses | 38 | (142) | (105) | 3,913 | ||||||||||||
Net Interest Income After Provision (Credit) | 7,146 | 8,410 | 22,122 | 17,519 | ||||||||||||
Noninterest Income | ||||||||||||||||
Service charges and fees | 230 | 193 | 782 | 576 | ||||||||||||
Increase in cash surrender value of bank owned life insurance | 259 | 247 | 783 | 655 | ||||||||||||
Fees and service charges on loans | 35 | 36 | 128 | 47 | ||||||||||||
Unrealized gain on equity securities | 3 | 1 | 7 | 3 | ||||||||||||
Realized gain on sale of investments | — | 19 | — | 33 | ||||||||||||
Realized gain on sale of loans | — | — | 52 | — | ||||||||||||
Other | 15 | 20 | 213 | 80 | ||||||||||||
Total noninterest income | 542 | 516 | 1,965 | 1,394 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries and employee benefits | 3,681 | 3,631 | 10,288 | 12,050 | ||||||||||||
Occupancy | 557 | 772 | 1,681 | 1,674 | ||||||||||||
Furniture and equipment | 346 | 285 | 924 | 674 | ||||||||||||
Data Processing | 552 | 951 | 1,642 | 2,392 | ||||||||||||
Advertising | 97 | 75 | 264 | 204 | ||||||||||||
FDIC premiums | 120 | 120 | 360 | 348 | ||||||||||||
Directors fees | 93 | 103 | 287 | 288 | ||||||||||||
Professional fees | 467 | 357 | 1,423 | 1,775 | ||||||||||||
Insurance | 133 | 165 | 451 | 389 | ||||||||||||
Telephone, postage and supplies | 197 | 210 | 569 | 391 | ||||||||||||
Other | 819 | 902 | 2,497 | 7,799 | ||||||||||||
Total noninterest expense | 7,062 | 7,571 | 20,386 | 27,984 | ||||||||||||
Income (Loss) Before Income Tax Expense (Benefit) | 626 | 1,355 | 3,701 | (9,071) | ||||||||||||
Income Tax Expense (Benefit) | 89 | 292 | 776 | (1,243) | ||||||||||||
Net Income (Loss) | $ | 537 | $ | 1,063 | $ | 2,925 | $ | (7,828) | ||||||||
Basic earnings (loss) per share | $ | 0.06 | $ | 0.12 | $ | 0.34 | $ | (1.27) | ||||||||
Diluted earnings (loss) per share | $ | 0.06 | $ | 0.12 | $ | 0.34 | $ | (1.27) | ||||||||
Weighted average number of common | 8,303,795 | 8,790,082 | 8,567,520 | 6,187,588 | ||||||||||||
Weighted average number of common | 8,315,030 | 8,790,082 | 8,572,283 | 6,187,588 | ||||||||||||
SR Bancorp, Inc. and Subsidiaries | ||||||||||||||||
Selected Ratios (Dollars in thousands, except per share data)
| ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Performance Ratios: (1) | ||||||||||||||||
Return (loss) on average assets (2) | 0.20 % | 0.39 % | 0.56 % | -1.62 % | ||||||||||||
Return (loss) on average equity (3) | 1.13 % | 2.12 % | 3.04 % | -8.78 % | ||||||||||||
Net interest margin (4) | 2.82 % | 3.31 % | 2.93 % | 3.18 % | ||||||||||||
Net interest rate spread (5) | 2.25 % | 2.83 % | 2.34 % | 2.74 % | ||||||||||||
Efficiency ratio (6) | 91.41 % | 86.19 % | 85.01 % | 122.60 % | ||||||||||||
Total gross loans to total deposits | 94.06 % | 84.00 % | 94.06 % | 84.00 % | ||||||||||||
Asset Quality Ratios: | ||||||||||||||||
Allowance for credit losses on loans as a percentage of total gross loans | 0.65 % | 0.72 % | 0.65 % | 0.72 % | ||||||||||||
Allowance for credit losses on loans as a percentage of non-performing loans | 0.00 % | 2307.27 % | 0.00 % | 2307.27 % | ||||||||||||
Net (charge-offs) recoveries to average outstanding loans during the period | 0.00 % | 0.00 % | 0.00 % | 0.00 % | ||||||||||||
Non-performing loans as a percentage of total gross loans | 0.00 % | 0.03 % | 0.00 % | 0.03 % | ||||||||||||
Non-performing assets as a percentage of total assets | 0.00 % | 0.02 % | 0.00 % | 0.02 % | ||||||||||||
Other Data: | ||||||||||||||||
Tangible book value per share (7) | ||||||||||||||||
Tangible common equity to tangible assets | 16.05 % | 16.66 % | 16.05 % | 16.66 % | ||||||||||||
(1) | Performance ratios for the three and nine month periods ended March 31, 2025 and March 31, 2024 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 net interest rate spread as a percentage of average interest-earning assets. |
(6) | Represents non-interest expense divided by the sum of net interest income and non-interest income. |
(7) | 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 |
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SOURCE SR Bancorp, Inc.
FAQ
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