SR BANCORP, INC. ANNOUNCES QUARTERLY FINANCIAL RESULTS

Rhea-AI Summary

SR Bancorp (NASDAQ: SRBK) reported net income of $834,000 for the quarter ended December 31, 2025, or $0.11 per share, down from $1.0 million a year earlier. Six‑month net income was $1.5 million, down from $2.4 million.

Total assets rose to $1.14 billion, loans to $835.4 million, and deposits to $891.5 million at December 31, 2025. Cash and cash equivalents increased 41.6% to $81.8 million. Net interest income and margin improved, while noninterest expense and provisions increased year‑over‑year.

Positive

• Cash and cash equivalents increased 41.6% to $81.8 million
• Total assets grew to $1.14 billion (+5.4% vs June 30, 2025)
• Loans receivable, net rose to $835.4 million (+4.8% vs June 30, 2025)
• Total deposits increased to $891.5 million (+5.4% vs June 30, 2025)
• Net interest income improved 7.6% for the quarter to $7.8 million

Negative

• Quarterly net income declined 18.3% to $834,000 (Q4 2025 vs Q4 2024)
• Six‑month net income declined 36.1% to $1.5 million
• Noninterest expense rose 11.2% to $7.2 million for the quarter
• Provision for credit losses increased to $221,000 for six months (from a $142,000 recovery)
• One non‑performing loan of $176,000 at December 31, 2025

Key Figures

Q4 2025 net income: $834,000 Q4 2025 EPS: $0.11 per share Net income (6M): $1.5 million +5 more

8 metrics

Q4 2025 net income $834,000 Three months ended December 31, 2025

Q4 2025 EPS $0.11 per share Three months ended December 31, 2025, basic and diluted

Net income (6M) $1.5 million Six months ended December 31, 2025

Total assets $1.14 billion Balance at December 31, 2025

Net loans $835.4 million Balance at December 31, 2025

Total deposits $891.5 million Balance at December 31, 2025

Allowance for credit losses 0.66% of total loans As of December 31, 2025

Non-performing loan $176,000 Single non-performing loan at December 31, 2025

Market Reality Check

Price: $16.83 Vol: Volume 36,896 is 7% above...

normal vol

$16.83 Last Close

Volume Volume 36,896 is 7% above the 20-day average of 34,469. normal

Technical Shares at $16.89 are trading above the 200-day MA of $14.54 and 1.3% below the 52-week high.

Peers on Argus

SRBK gained 1.56% while key regional bank peers like BSBK, AFBI, FNWD, MGYR, and...

SRBK gained 1.56% while key regional bank peers like BSBK, AFBI, FNWD, MGYR, and RMBI all showed modest gains. However, no peers appeared in the momentum scanner, indicating a company-specific rather than scanner-defined sector move.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Quarterly earnings	Negative	-0.3%	Q3 2025 net income fell sharply and margin compressed despite balance sheet growth.
Sep 12	Annual results	Positive	-0.1%	Corrected FY2025 report showed strong swing to profit and asset growth.
Jul 31	Annual results	Positive	+0.3%	Q4 and FY2025 moved from prior-year losses to solid profitability and growth.
Apr 30	Quarterly earnings	Negative	-0.1%	Q1 2025 net income and margin declined even as assets and loans expanded.
Jan 31	Quarterly earnings	Neutral	-1.4%	Mixed Q4 2024 with YoY profit decline but major improvement over prior losses.

Pattern Detected

Earnings headlines have produced relatively modest moves, with a mix of aligned and divergent reactions, and the stock sometimes softening even on fundamentally positive reports.

Recent Company History

Over the past year, SR Bancorp’s earnings reports have shown a transition from losses to profitability while managing margin pressure. Events on Jan 31, Apr 30, Jul 31, Sep 12, and Oct 30, 2025 highlighted growing assets and loans, alongside lower or pressured net income in several quarters. The current announcement of lower net income but continued balance sheet growth fits this pattern of trade-offs between profitability, funding costs, and franchise expansion.

Historical Comparison

earnings

+0.4 %

Average Historical Move

Historical Analysis

In the past 12 months, SRBK released five earnings updates with an average move of 0.43%, indicating historically muted price reactions to financial results.

Typical Pattern

Earnings releases show SRBK progressing from prior losses to sustained profitability while expanding assets and loans, but with recurring pressure on net interest margin and quarterly net income volatility.

Market Pulse Summary

This announcement details lower net income for the quarter and six months while highlighting continu...

Analysis

This announcement details lower net income for the quarter and six months while highlighting continued growth in assets, loans, and deposits. Net interest margin and spread improved, but noninterest expenses, especially salaries and stock-based compensation, increased. Credit quality metrics remain conservative with a small non-performing loan and a 0.66% allowance ratio. Investors may track future earnings, expense discipline, and loan growth sustainability against this backdrop.

Key Terms

fair value adjustments, net interest margin, net interest rate spread, provision for credit losses, +2 more

6 terms

fair value adjustments financial

"net accretion income related to fair value adjustments resulting from the acquisition..."

Adjustments made in a company's financial records to update the reported value of assets or liabilities so they reflect current estimated worth instead of original purchase cost. They matter to investors because these bookkeeping updates can change reported profit, net worth and perceived risk—like re-tagging items in a store when market prices shift—so they affect valuation, comparisons between firms, and buy/sell decisions.

net interest margin financial

"Net interest margin increased 18 basis points to 3.06% for the three months ended..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

net interest rate spread financial

"Net interest rate spread increased 30 basis points to 2.57% for the three months ended..."

Net interest rate spread is the difference between the average interest a lender earns on its loans and the average interest it pays to fund those loans, expressed as a percentage. For investors, it shows how much a financial firm earns from its core lending business — like the markup a shop charges between buying and selling goods — so a wider spread generally means higher profitability from lending, while a narrower spread can signal squeezed earnings or greater risk.

provision for credit losses financial

"The Company recorded a provision for credit losses of $49,000 during the three months ended..."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

allowance for credit losses financial

"The Company's allowance for credit losses as a percentage of total loans was 0.66%..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

subordinated note financial

"offset by the purchase of a $6.0 million subordinated note."

A subordinated note is a loan-like security a company issues that ranks below its other debts when paying creditors; if the company runs into trouble, holders of subordinated notes are repaid only after senior lenders. Because they are lower in the repayment order, these notes typically offer higher interest to compensate for greater risk, so investors balance the chance of higher returns against a higher likelihood of loss in distress—like taking a back-seat on a bus with a bigger fare.

AI-generated analysis. Not financial advice.

BOUND BROOK, N.J., Jan. 28, 2026 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $834,000 for the three months ended December 31, 2025 (unaudited), or $0.11 per basic and diluted share, compared to net income of $1.0 million for the three months ended December 31, 2024 (unaudited). Excluding $202,000 of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023, net income would have been $689,000 for the three months ended December 31, 2025. Excluding $791,000 of net accretion income related to fair value adjustments, net income would have been $452,000 for the three months ended December 31, 2024. See "Non-GAAP Financial Information" contained herein for additional information.

The Company reported net income of $1.5 million for the six months ended December 31, 2025, or $0.20 per basic and diluted share, compared to a net income of $2.4 million for the six months ended December 31, 2024. Excluding $505,000 of net accretion income related to fair value adjustments, net income would have been $1.2 million for the six months ended December 31, 2025. Excluding $1.8 million of net accretion income related to fair value adjustments, net income would have been $1.1 million for the six months ended December 31, 2024.

Total assets were $1.14 billion at December 31, 2025, an increase of $58.6 million, or 5.4%, from $1.08 billion at June 30, 2025. Net loans were $835.4 million, an increase of $38.2 million, or 4.8%, from $797.2 million at June 30, 2025. Total deposits were $891.5 million, an increase of $45.5 million, or 5.4%, from $846.0 million at June 30, 2025. The increase in loans and a $24.0 million, or 41.6%, increase in cash and cash equivalents was funded primarily through increased deposits and an additional $20.0 million of borrowings.

Comparison of Operating Results for the Three Months Ended December 31, 2025 and 2024

General. Net income decreased $187,000, or 18.3%, to $834,000 for the three months ended December 31, 2025 compared to net income of $1.0 million for the three months ended December 31, 2024. Net income for the three months ended December 31, 2025 and 2024 included $202,000 and $791,000, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023.

Interest Income. Interest income increased $765,000, or 6.6%, to $12.3 million for the three months ended December 31, 2025 from $11.5 million for the three months ended December 31, 2024 due to a $13.4 million increase in the average balance of interest-earning assets and a 24 basis point increase in the yield. The increase resulted from a $857,000, or 8.2%, increase in interest income on loans, partly offset by a $52,000, or 8.9%, decrease in interest income on securities, and a $40,000, or 7.7%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was primarily due to a $61.4 million increase in the average balance of loans from $770.6 million for the three months ended December 31, 2024 to $832.0 million for the three months ended December 31, 2025. The decrease in interest income on securities was primarily due to a $14.3 million decrease in the average balance of securities resulting from maturities and repayments, offset by the purchase of a $6.0 million subordinated note. The decrease in interest income on interest-bearing deposits at other banks was due a $33.7 million decrease in the average balance of deposits.

Interest Expense. Interest expense increased $213,000, or 4.9%, to $4.5 million for the three months ended December 31, 2025 from $4.3 million for the three months ended December 31, 2024, due to a $59.6 million increase in the average balance of interest-bearing liabilities partially offset by a seven basis point decrease in the cost. The increase in the average balance was primarily due to a $18.3 million, or 74.3%, increase in the average balance of borrowings for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 and an increase of $68.1 million, or 24.0%, in the average balance of interest-bearing demand deposits.  The decrease was primarily due to a 49 basis point decrease in the average rate of certificates of deposit, offset by an increase of 20 basis points in the cost of interest-bearing demand deposits to 1.95% for the three months ended December 31, 2025 from 1.75% for the three months ended December 31, 2024, as the Bank offered competitive rates on certain interest-bearing deposit products in the market area.

Net Interest Income. Net interest income increased $552,000, or 7.6%, to $7.8 million for the three months ended December 31, 2025 from $7.2 million for the three months ended December 31, 2024. Net interest rate spread increased 30 basis points to 2.57% for the three months ended December 31, 2025 from 2.27% for the three months ended December 31, 2024. Net interest margin increased 18 basis points to 3.06% for the three months ended December 31, 2025 from 2.88% for the three months ended December 31, 2024. Net interest-earning assets decreased $46.3 million, or 17.4%, to $219.1 million for the three months ended December 31, 2025 from $265.4 million for the three months ended December 31, 2024. The increase in the Company's net interest rate spread and net interest margin were primarily a result of a decrease in the cost of interest-bearing liabilities while the yield on interest-earning assets 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 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 Company considers, among other factors, past and current loss experience, evaluations of real estate collateral, economic conditions, the type and volume of lending, adverse situations that may affect a borrower's repayment capacity, while adjusting for delinquency trends, classified or criticized loans, and other risk factors. The allowance is developed using reasonable and supportable forecasts and quantitative modeling techniques, combined with qualitative factors to address risks not captured in historical data, including emerging loan products or localized economic changes. Actual 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 in the income statement on a quarterly basis.

The Company recorded a provision for credit losses of $49,000 during the three months ended December 31, 2025 reflecting the loan growth during the period, compared to a provision for credit losses of $12,000 for the three months ended December 31, 2024. The Company had no charge-offs for the three months ended December 31, 2025 or 2024. The Company had one non-performing loan of $176,000 at December 31, 2025 and no non-performing loans at December 31, 2024. The Company's allowance for credit losses as a percentage of total loans was 0.66% at December 31, 2025 compared to 0.65% at December 31, 2024.

Noninterest Income. Noninterest income decreased $46,000, or 7.3%, to $581,000 for the three months ended December 31, 2025 from $627,000 for the three months ended December 31, 2024 primarily due to a decrease in service charges and fees on deposits of $32,000 and a decrease in fees and service charges on loans of $14,000 during the three months ended December 31, 2025 compared to the three months ended December 31, 2024.

Noninterest Expense. Noninterest expense increased $726,000, or 11.2%, to $7.2 million for the three months ended December 31, 2025 from $6.5 million for the three months ended December 31, 2024 predominantly due to a $558,000, or 16.6%, increase in salaries and employee benefits expense driven by annual merit increases as well as the recognition of stock-based compensation during the three months ended December 31, 2025 compared to a partial period of expense during the three months ended December 31, 2024 as the initial expense recognition commenced on November 21, 2024.

Income Tax Expense. The provision for income taxes was $254,000 for the three months ended December 31, 2025 compared to $324,000 for the three months ended December 31, 2024. The Company's effective tax rate was 23.3% for the three months ended December 31, 2025 compared to 24.1% for the three months ended December 31, 2024.

Comparison of Operating Results for the Six Months Ended December 31, 2025 and 2024

General. Net income decreased $861,000, or 36.1%, to $1.5 million for the six months ended December 31, 2025 compared to net income of $2.4 million for the six months ended December 31, 2024. Net income for the six months ended December 31, 2025 and 2024 included $505,000 and $1.8 million, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023.

Interest Income. Interest income increased $1.2 million, or 5.4%, to $24.2 million for the six months ended December 31, 2025 from $23.0 million for the six months ended December 31, 2024 due to a $12.6 million increase in the average balance of interest-earning assets, and a 19 basis point increase in the yield. The increase resulted from a $1.5 million, or 7.1%, increase in interest income on loans, offset by a $129,000, or 10.3%, decrease in interest income on securities and a $105,000, or 10.1%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was due to a $61.1 million increase in the average balance of loans from $759.7 million for the six months ended December 31, 2024 to $820.8 million for the six months ended December 31, 2025, offset by a five basis point decrease in the yield on loans. The decrease in interest income on securities was primarily due to a $14.4 million decrease in the average balance of securities resulting from maturities and repayments. The decrease in interest income on interest-bearing deposits at other banks was due to a $34.1 million decrease in the average balance of deposits at other banks.

Interest Expense. Interest expense increased $679,000, or 8.3%, to $8.9 million for the six months ended December 31, 2025 from $8.2 million for the six months ended December 31, 2024, due to a $57.4 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was due to a $20.4 million, or 111.5%, increase in the average balance of borrowings for the six months ended December 31, 2025 compared to the six months ended December 31, 2024, as well as an increase of $64.7 million, or 23.3%, in the average balance of interest-bearing demand deposits. In addition, there was an increase of 35 basis points in the cost of interest-bearing deposits to 1.91% for the six months ended December 31, 2025 from 1.56% for the six months ended December 31, 2024 resulting from competitively priced rates offered on certain interest-bearing deposit products in the market area, offset by a 49 basis point decrease in the average rate of certificates of deposit.

Net Interest Income. Net interest income increased $554,000, or 3.7%, to $15.4 million for the six months ended December 31, 2025 from $14.8 million for the six months ended December 31, 2024. Net interest rate spread increased 18 basis points to 2.57% for the six months ended December 31, 2025 from 2.39% for the six months ended December 31, 2024. Net interest margin increased seven basis points to 3.05% for the six months ended December 31, 2025 from 2.98% for the six months ended December 31, 2024. Net interest-earning assets decreased $44.8 million, or 17.0%, to $219.1 million for the six months ended December 31, 2025 from $263.9 million for the six months ended December 31, 2024. The increase in the Company's net interest rate spread and net interest margin were primarily a result of a decrease in the cost of interest-bearing liabilities while the yield on interest-earning assets increased.

Provision for Credit Losses. The Company recorded a provision for credit losses of $221,000 during the six months ended December 31, 2025 reflecting the loan growth during the period, compared to a recovery for credit losses of $142,000 for the six months ended December 31, 2024, which reflected updates made to certain qualitative factors in the calculation of the Company's allowance. The Company had no charge-offs for the six months ended December 31, 2025 or 2024. The Company had one non-performing loan of $176,000 at December 31, 2025 and no non-performing loans at December 31, 2024. The Company's allowance for credit losses as a percentage of total loans was 0.66% at December 31, 2025 compared to 0.65% at December 31, 2024.

Noninterest Income. Noninterest income decreased $133,000, or 10.4%, to $1.1 million for the six months ended December 31, 2025 from $1.3 million for the six months ended December 31, 2024, primarily due to a decrease in service charges and fees on deposits of $98,000 and a decrease in fees and service charges on loans of $38,000 during the six months ended December 31, 2025 compared to the six months ended December 31, 2024.

Noninterest Expense. Noninterest expense increased $1.1 million, or 8.7%, to $14.3 million for the six months ended December 31, 2025 from $13.2 million for the six months ended December 31, 2024 predominantly due to a $1.2 million, or 17.7%, increase in salaries and employee benefits expense driven by the recognition of stock-based compensation during the six months ended December 31, 2025 compared to a partial period of expense during the six months ended December 31, 2024, as well annual merit increases in employee compensation. The increase in salaries and employee benefits was partially offset by a decrease of $68,000 in insurance expenses and a decrease of $57,000 in occupancy expenses due to the closure of a retail branch location.

Income Tax Expense. The provision for income taxes was $456,000 for the six months ended December 31, 2025, compared to $687,000 for the six months ended December 31, 2024. The Company's effective tax rate was 23.0% for the six months ended December 31, 2025 compared to 22.3% for the six months ended December 31, 2024.

Comparison of Financial Condition at December 31, 2025 and June 30, 2025

Assets. Assets increased $58.6 million, or 5.4%, to $1.14 billion at December 31, 2025 from $1.08 billion at June 30, 2025. The increase was driven by new loan originations, resulting in a net increase of $38.2 million in loans receivable, as well as increase in cash and cash equivalents of $24.1 million primarily due to an increase in deposits and borrowings.

Cash and Cash Equivalents. Cash and cash equivalents increased $24.1 million, or 41.6%, to $81.8 million at December 31, 2025 from $57.8 million at June 30, 2025 due to an increase in deposits and borrowings from the Federal Home Loan Bank of New York.

Securities. Securities held-to-maturity decreased $1.0 million, or 0.7%, to $140.8 million at December 31, 2025 from $141.8 million at June 30, 2025. The decrease was primarily due to principal repayments and maturities, partially offset by the purchase of a $6.0 million subordinated note.

Loans. Loans receivable, net, increased $38.2 million, or 4.8%, to $835.4 million at December 31, 2025 from $797.2 million at June 30, 2025, driven by commercial loan growth of $24.2 million, residential mortgage loan growth of $12.7 million and consumer loan growth of $1.3 million as a result of strong market demand.

Deposits. Deposits increased $45.5 million, or 5.4%, to $891.5 million at December 31, 2025 from $846.0 million at June 30, 2025. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on time deposit accounts in an effort to remain competitive in the market area. At December 31, 2025, $121.7 million, or 13.7%, of total deposits consisted of noninterest-bearing deposits. At December 31, 2025, $172.6 million, or 19.4%, of total deposits were uninsured.

Borrowings. During the six months ended December 31, 2025, the Company borrowed an additional $20.0 million from the Federal Home Loan Bank of New York to provide additional liquidity to fund new loans. At December 31, 2025 and 2024, the Company had $50.0 million and $30.0 million in outstanding borrowings, respectively.

Equity. Equity decreased $5.3 million, or 2.8%, to $188.5 million at December 31, 2025 from $193.8 million at June 30, 2025. The decrease was primarily due to the repurchase of 465,702 shares of common stock at a cost of $7.1 million, partially offset by net earnings of $1.5 million. All repurchased shares of common stock were retired upon acquisition and are no longer outstanding.

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 December 31, 2025, Somerset Regal Bank had $1.14 billion in total assets, $835.4 million in net loans, $891.5 million in deposits and total equity of $188.5 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com.

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, the impact of a potential government shutdown, 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 and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current 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 December 31, 2025 (Unaudited) and June 30, 2025 (Dollars in thousands)
		December 31, 2025				June 30, 2025
Assets
Cash and due from banks		$	3,932			$	3,945
Interest-bearing deposits at other banks			77,910				53,834
Total cash and cash equivalents			81,842				57,779
Securities held-to-maturity, at amortized cost			140,805				141,845
Equity securities, at fair value			33				37
Loans receivable, net of allowance for credit losses of $5,582 and    $5,229, respectively			835,367				797,166
Premises and equipment, net			5,039				4,942
Right-of-use asset			2,743				3,156
Restricted equity securities, at cost			3,508				2,608
Accrued interest receivable			3,201				3,072
Bank owned life insurance			37,139				36,607
Goodwill and intangible assets			26,094				26,708
Other assets			7,190				10,485
Total assets		$	1,142,961			$	1,084,405
Liabilities and Equity
Liabilities
Deposits:
Noninterest-bearing		$	121,715			$	114,107
Interest-bearing			769,825				731,915
Total deposits			891,540				846,022
Borrowings			50,000				30,000
Advance payments by borrowers for taxes and insurance			8,334				8,736
Accrued interest payable			205				223
Lease liability			2,785				3,211
Other liabilities			1,646				2,433
Total liabilities			954,510				890,625
Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized,    none issued			—				—
Common stock, $0.01 par value, 50,000,000 authorized;    8,432,990 and 8,875,170 shares issued and outstanding    as of December 31, 2025 and June 30, 2025, respectively			84				89
Additional paid-in capital			74,429				80,843
Retained earnings			121,243				120,505
Unearned compensation ESOP			(6,465)				(6,655)
Accumulated other comprehensive loss			(840)				(1,002)
Total stockholders' equity			188,451				193,780
Total liabilities and stockholders' equity		$	1,142,961			$	1,084,405

 

SR Bancorp, Inc. and Subsidiaries   Consolidated Statements of Income For the Three and Six Months Ended December 31, 2025 (Unaudited) and December 31, 2024 (Unaudited) (Dollars in thousands, except per share data)
		Three Months Ended December 31,								Six Months Ended December 31,
		2025				2024				2025				2024
Interest Income
Loans, including fees		$	11,295			$	10,438			$	22,191			$	20,724
Securities:
Taxable			534				586				1,118				1,247
Interest bearing deposits at other banks			481				521				936				1,041
Total interest income			12,310				11,545				24,245				23,012
Interest Expense
Deposits:
Demand			1,717				1,243				3,282				2,168
Savings and time			2,398				2,768				4,793				5,552
Borrowings			404				295				783				459
Total interest expense			4,519				4,306				8,858				8,179
Net Interest Income			7,791				7,239				15,387				14,833
Provision (Credit) for Credit Losses			49				12				221				(142)
Net Interest Income After Provision (Credit) for Credit Losses			7,742				7,227				15,166				14,975
Noninterest Income
Service charges and fees			224				256				454				552
Increase in cash surrender value of bank owned life insurance			268				264				533				524
Fees and service charges on loans			23				37				55				93
Unrealized (loss) gain on equity securities			(1)				3				(4)				5
Gain on sale of loans			17				28				17				51
Other			50				39				91				54
Total noninterest income			581				627				1,146				1,279
Noninterest Expense
Salaries and employee benefits			3,924				3,366				7,776				6,606
Occupancy			531				492				1,067				1,124
Furniture and equipment			312				285				665				578
Data processing			508				461				1,049				1,089
Advertising			112				85				242				167
FDIC premiums			120				120				240				240
Directors fees			101				101				198				194
Professional fees			508				467				945				956
Insurance			117				159				250				318
Telephone, postage and supplies			167				191				369				372
Other			835				782				1,528				1,535
Total noninterest expense			7,235				6,509				14,329				13,179
Income Before Income Tax Expense			1,088				1,345				1,983				3,075
Income Tax Expense			254				324				456				687
Net Income		$	834			$	1,021			$	1,527			$	2,388
Basic earnings per share		$	0.11			$	0.12			$	0.20			$	0.27
Diluted earnings per share		$	0.11			$	0.12			$	0.20			$	0.27
Weighted average number of common    shares outstanding - basic			7,583,888				8,588,096				7,714,559				8,696,412
Weighted average number of common    shares outstanding - diluted			7,694,569				8,590,981				7,810,512				8,697,854

 

SR Bancorp, Inc. and Subsidiaries   Selected Ratios (Dollars in thousands, except per share data)
		Three Months Ended								Six Months Ended
		December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
		(Unaudited)								(Unaudited)
Performance Ratios: (1)
Return on average assets (2)		0.30 %				0.39 %				0.28 %				0.46 %
Return on average equity (3)		1.68 %				2.16 %				1.57 %				2.47 %
Net interest margin (4)		3.06 %				2.88 %				3.05 %				2.98 %
Net interest rate spread (5)		2.57 %				2.27 %				2.57 %				2.39 %
Efficiency ratio (6)		86.42 %				82.75 %				86.67 %				81.80 %
Total gross loans to total deposits		94.33 %				95.37 %				94.33 %				95.37 %
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total gross loans		0.66 %				0.65 %				0.66 %				0.65 %
Allowance for credit losses on loans as a percentage of non-performing loans (7)		3171.59 %				N/A				3171.59 %				N/A
Net (charge-offs) recoveries to average outstanding loans during the period (8)		N/A				N/A				N/A				N/A
Non-performing loans as a percentage of total gross loans (7)		0.02 %				N/A				0.02 %				N/A
Non-performing assets as a percentage of total assets (9)		0.02 %				N/A				0.02 %				N/A
Other Data:
Tangible book value per share (10)			$19.25				$18.45				$19.25				$18.45
Tangible common equity to tangible assets		14.54 %				16.46 %				14.54 %				16.46 %

(1)	Performance ratios 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)	This ratio is not applicable for the three and six months ended December 31, 2024 as the Company had no non-performing loans as of those periods.
(8)	This ratio is not applicable for the three and six months ended December 31, 2025 and 2024 as the Company had no charge-offs or recoveries as of those periods.
(9)	This ratio is not applicable for the three and six months ended December 31, 2024 as the Company had no non-performing   assets as of those periods.
(10)	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 $26,094 and $27,388 at December 31, 2025 and December 31, 2024, respectively.

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								Six Months Ended
		December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Net Income		$	834			$	1,021			$	1,527			$	2,388
Adjustments for non-recurring items:
Net accretion/amortization, pre-tax		$	(202)			$	(791)			$	(505)			$	(1,821)
Subtotal		$	(202)			$	(791)			$	(505)			$	(1,821)
Tax expense		$	57			$	222			$	142			$	512
Net of items above, after-tax		$	(145)			$	(569)			$	(363)			$	(1,309)
Net Income, adjusted		$	689			$	452			$	1,164			$	1,079

 

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SOURCE SR Bancorp, Inc.

FAQ

What were SR Bancorp (SRBK) net income and EPS for Q4 2025?

Net income for Q4 2025 was $834,000, or $0.11 per share. According to the company, this compares to $1.0 million and higher EPS in Q4 2024, driven by lower accretion adjustments and higher expenses.

How did SRBK’s balance sheet change at December 31, 2025 compared to June 30, 2025?

Total assets rose to $1.14 billion and deposits to $891.5 million. According to the company, growth was funded by higher deposits and $20.0 million of additional borrowings.

What drove SR Bancorp’s increase in cash and cash equivalents in H2 2025?

Cash and cash equivalents increased 41.6% to $81.8 million. According to the company, the increase resulted from higher customer deposits and borrowings from the Federal Home Loan Bank.

Did SRBK’s net interest margin improve in Q4 2025 and why?

Yes, net interest margin increased to 3.06% in Q4 2025. According to the company, the improvement reflected higher yields on earning assets and a modest decrease in the cost of interest‑bearing liabilities.

Why did SR Bancorp’s noninterest expense rise in Q4 2025?

Noninterest expense rose mainly due to higher salaries and benefits and stock‑based compensation. According to the company, annual merit increases and initial recognition of stock awards drove the increase.

What credit quality changes did SRBK report as of December 31, 2025?

The company reported one non‑performing loan of $176,000 and an allowance for credit losses of 0.66% of total loans. According to the company, provisions increased to reflect loan growth and updated qualitative factors.