#United States #financial results #SR Bancorp #Bound Brook #Somerest Regal Bank

SR Bancorp, Inc. Announces Quarterly Financial Results

On January 28, 2026, SR Bancorp, Inc. (NASDAQ: SRBK), the holding entity for Somerset Regal Bank, released its financial results for the fourth quarter and the six-month period ending December 31, 2025. The company reported a net income of $834,000, translating to $0.11 per basic and diluted share, a decline from $1.0 million or $0.12 per share in the corresponding period of 2024.

Financial Overview

The decrease in net income for the quarter was primarily attributed to fluctuations in net accretion income due to fair value adjustments from the acquisition of Regal Bancorp in September 2023. If these adjustments are excluded, the net income for Q4 2025 stands at $689,000 compared to $452,000 in Q4 2024.

For the first half of the fiscal year 2025, total net income reached $1.5 million, or $0.20 per share, compared to $2.4 million for the same period in 2024.

Total assets of the bank increased significantly, reaching $1.14 billion as of December 31, 2025, reflecting a growth of $58.6 million or 5.4% since June 30, 2025. The total loans portfolio showed healthy expansion, increasing to $835.4 million, a rise of $38.2 million or 4.8% over the previous period.

Detailed Performance Metrics

Interest Income and Expense

Interest income also showed a positive trend during this quarter, climbing to $12.3 million, a 6.6% increase from $11.5 million the previous year. This rise was driven by a higher average balance of interest-earning assets. The interest accruing from loans rose significantly, although a slight decrease was observed in interest from securities and interest-bearing deposits at other banks.

Conversely, interest expense increased as well, from $4.3 million to $4.5 million due to higher liabilities and competitive rates offered on deposits. This trend contributed to an increase in net interest income to $7.8 million, equating to a 7.6% rise year-on-year.

Credit Loss Provision

In light of the growing loan portfolio, the company set aside a provision for credit losses amounting to $49,000 for the quarter, contrasting with a mere $12,000 for the same quarter last year. It is noteworthy that there were no charge-offs recorded during this period.

Noninterest Income and Expense

Noninterest income fell by 7.3% to $581,000, primarily due to reduced service charges on deposits and fees related to loans. On the expense side, noninterest expenses rose by 11.2%, reaching $7.2 million. The significant part of this increase was attributable to salary adjustments and benefits.

Looking Ahead

As Somerset Regal Bank continues to adapt to market dynamics, its financial performance reflects both the challenges and opportunities within the banking sector. The bank's strategic decisions, driven by growth and market competitiveness, will be pivotal as it navigates future quarters.

The results from the recent reporting period showcase a stable but cautious outlook for SR Bancorp, as they maintain a solid foundation with a prominent position in the New Jersey banking landscape.

Additional insights and information on the bank can be found on their official website Somerset Regal Bank.