#United States #SR Bancorp #Somerset Regal Bank #NASDAQ SRBK #Bound Brook

SR Bancorp, Inc. Releases Strong Financial Results for Q4 and FY 2025

SR Bancorp, Inc. (NASDAQ: SRBK), the parent company of Somerset Regal Bank, has announced its financial performance for the fourth quarter and the entire fiscal year ended June 30, 2025. This report showcases a noteworthy recovery from previous losses, emphasizing the company’s strategic adjustments and growth initiatives.

Quarterly Overview

In the three months concluding on June 30, 2025, SR Bancorp reported a net income of $823,000, translating to $0.10 per share. In stark contrast, the same period in 2024 saw a net loss of $3.0 million. Notably, the recent quarterly figures reflect an unaudited net income that incorporates adjustments related to the recent merger with Regal Bancorp.

Key Financial Highlights:

• - Net Income: $823,000 for Q4 2025, an improvement of $3.9 million compared to Q4 2024.
• - Net Loans: Reach $797.3 million, marking a rise of 8.9% year-over-year.
• - Deposits: Increased by 4.8% to $846.0 million.

Excluding certain one-time costs, the adjusted net income for the quarter would be approximately $515,000, reflecting the company’s maneuvering through merger-related expenses and balancing restructuring efforts.

Annual Financial Performance

For the fiscal year ending June 30, 2025, SR Bancorp registered a net income of $3.7 million compared to a net loss of $10.9 million in the previous year. The stark fluctuation underscores SR Bancorp’s recovery and market repositioning following its merger with Regal Bancorp. The turnaround is attributed to a comprehensive balance sheet restructuring strategy designed to optimize asset allocation and enhance overall financial health.

Annual Financial Summary:

• - Annual Net Income: $3.7 million for FY 2025, highlighting a recovery of $14.6 million.
• - Total Assets: Increased to $1.08 billion, a 6.1% jump from the previous year.
• - Merger Outcomes: The merger with Regal Bank effectively bolstered SR Bancorp’s financial standing, allowing for greater loan production and improved operational efficiency.

The merger involved the conversion process of Somerset Savings Bank and led to a significant stock offering that attracted substantial investments. Following this merger, the newly formed Somerset Regal Bank is now placed solidly within the commercial banking sector of New Jersey.

Increased Operational Efficiencies

SR Bancorp has navigated through challenges by adjusting interest strategies and pursuing capital infusion from higher-interest loans. The bank’s quarterly interest income saw a notable increase to $11.7 million, supported by a loan portfolio growth of $75.8 million year-on-year. However, the interest expense did rise due to competitive pressures within the market, emphasizing the need for strategic pricing in customer deposit offerings.

Interest Metrics:

• - Net Interest Income: Reached $29.6 million for FY 2025, marking a slight increase despite rising expenses.
• - Provision for Credit Losses: This fell to $24,000 for FY 2025, showing improved asset quality with no non-performing loans reported as of June 30, 2025.

Strategic Contributions and Future Perspectives

The bank made strategic charitable contributions totaling $5.4 million to establish the Somerset Regal Charitable Foundation, thereby reinforcing its commitment to social responsibility within a focused community. Moving forward, the bank aims to capitalize on the enhanced operational efficiencies and market positioning resulting from its recent merger.

Looking Ahead: SR Bancorp is optimistic about continuing its growth trajectory with strategic initiatives aimed at securing additional lending opportunities and enhancing customer engagement. Furthermore, the bank is confident that the need for digital innovation and streamlined operations will play a vital role in improving customer experiences and sustaining growth.

In summary, SR Bancorp’s fourth quarter and annual financial results demonstrate a robust recovery with optimistic visions for the future, positioning itself as a reliable option for stakeholders and potential investors in the financial sector.