Seneca Bancorp Reports $172,000 Net Income for Fiscal Year 2025, Down 75.8%

Seneca Bancorp, Inc. reported a net income of $172,000 for the fiscal year ending December 31, 2025, a significant decrease of 75.8% compared to $712,000 in the previous year. This decline was primarily attributed to a $1.2 million increase in non-interest expenses, a $535,000 rise in the provision for credit losses, and a $501,000 increase in interest expenses. However, the company did see a 9.5% increase in interest income, totaling $14.6 million, driven by a $730,000 increase in loan interest income, reflecting a growing loan portfolio and higher interest rates.

Total assets for Seneca Bancorp increased by 11.1% to $312.1 million as of December 31, 2025, up from $280.9 million in 2024. This growth was primarily fueled by an increase in net loans, which rose by 11.7% to $226.0 million, and a 49.9% increase in premises and equipment, reflecting ongoing investments in branch expansion. The company’s total deposits also grew by 11.3% to $234.4 million, with core deposits increasing by 20.2% to $172.1 million, indicating a successful strategy to enhance its low-cost deposit base.

In terms of operational developments, Seneca Bancorp has focused on expanding its commercial lending portfolio, which now constitutes 48.6% of total loans, up from 37.2% in 2020. The company has also made strategic investments in new branch locations, including a new branch in Manlius, New York, which opened in June 2025, and plans for additional branches in Camillus and Clay, New York, to capitalize on regional economic growth driven by developments such as the Micron Technology semiconductor facility.

The company’s allowance for credit losses on loans increased to $1.9 million, or 0.84% of total loans, reflecting a proactive approach to managing credit risk amid rising delinquencies. Total delinquent loans rose to $5.6 million at year-end, up from $2.6 million in 2024, primarily due to increased delinquencies in one- to four-family residential and commercial real estate loans. Despite these challenges, Seneca Bancorp remains committed to maintaining strong asset quality and managing interest rate risk through its diversified loan portfolio.

Looking ahead, Seneca Bancorp aims to continue its growth trajectory by enhancing its commercial lending capabilities, expanding its market presence, and offering a wider range of financial services through its subsidiary, Financial Quest. The company is well-capitalized and positioned to navigate potential economic fluctuations, with a focus on leveraging its local market knowledge and customer relationships to drive future profitability.