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SR Bancorp, Inc. Reveals Fourth Quarter and Annual Financial Results

On September 12, 2025, SR Bancorp, Inc. (NASDAQ: SRBK), the holding company for Somerset Regal Bank, announced remarkable financial results for the quarter ending June 30, 2025, alongside a comprehensive review of its annual performance. This report highlights a substantial transformation compared to the previous year, showcasing a net income of $2.2 million for the quarter, in stark contrast to a $3.0 million loss during the same period in 2024.

Key Financial Highlights

The revised financial metrics for SR Bancorp include substantial gains reflecting the bank’s robust performance:

• - Quarterly Net Income: $2.2 million, or $0.28 per share, against a previous loss of $3.0 million.
• - Annual Net Income: $5.1 million, translating to $0.61 per share, compared to a loss of $10.9 million in 2024.

These significant results come primarily from the inclusion of $1.5 million in gains from life insurance proceeds and adjustments in the allowance for credit losses, contributing to a positive outlook for the institution.

Operational Dynamics

The operational metrics illustrate a sound growth trajectory:

• - Total Assets have increased to $1.08 billion, marking a 6.2% rise from $1.02 billion year-over-year.
• - Loans rose to $797.2 million, reflecting an 8.9% increase, while total deposits reached $846.0 million, up 4.8%.

SR Bancorp's strategy of focusing on loan origination, particularly in residential and commercial real estate, has played a pivotal role in enhancing its financial standing and effectively utilizing a $30 million short-term borrowing facility to support these ventures.

Completed Stock Offering and Merger

The transformation of Somerset Savings Bank into a stock organization concluded successfully in 2023, alongside the completed merger with Regal Bancorp, further solidifying the bank’s position in the market. This merger not only increased operational scale but also brought additional capital and resources to facilitate strategic initiatives.

Comparison to Previous Year

The bank's performance between the second quarters of 2025 and 2024 reveals compelling progress:

• - Interest Income has leaped to $11.7 million, reflecting a 2.8% increase, driven by higher loan balances.
• - Net Interest Income witnessed a modest decline to $7.5 million due to increased interest expenses and changing market conditions.

The provision for credit losses was reported at $238,000 for the three months ended June 30, 2025, a contrast to $153,000 recorded in the same period last year, demonstrating proactive risk management in response to loan growth.

Noninterest Income and Expenses

Additionally, there was a 152% surge in noninterest income to $2.0 million, compared to a loss of $3.9 million the previous year. This change underscores the bank's turnaround and ability to generate a more diversified income stream. Conversely, noninterest expenses increased slightly but remain controlled, reflecting the bank’s operational efficiencies post-merger.

Conclusion

SR Bancorp's financial results for the fourth quarter and the fiscal year ended June 30, 2025, exemplify a company redefining its trajectory amid competitive pressures and challenging market conditions. The bank's leadership, alongside its strategic initiatives supported by significant mergers and adjustments in operations, positions it favorably for future growth and stability. Investors and stakeholders can look forward to continued improvement as SR Bancorp leverages its newly strengthened capital position to enhance shareholder value and community support.