SR Bancorp Reports $1.0 Million Net Income for Q4 2024, Significant Recovery for Six-Month Period

SR Bancorp, Inc. reported a net income of $1.0 million for the three months ended December 31, 2024, a decrease from $1.6 million in the same period of the previous year. For the six months ended December 31, 2024, the company achieved a net income of $2.4 million, a significant recovery from a net loss of $8.9 million in the prior year. The increase in profitability for the six-month period was attributed to a rise in interest income, which increased by $5.2 million, or 29.1%, driven by a larger loan portfolio and higher yields. However, interest expense also rose sharply, increasing by $3.5 million, or 75.3%, primarily due to higher rates on deposits.

Total assets for SR Bancorp increased by $43.7 million, or 4.3%, to $1.06 billion as of December 31, 2024, compared to $1.02 billion at June 30, 2024. This growth was largely fueled by a $43.9 million increase in loans receivable, which reached $775.8 million, reflecting a strategic focus on expanding the residential mortgage and commercial loan segments. The company’s total liabilities also rose, increasing by $45.0 million, or 5.5%, to $866.4 million, primarily due to a $30.0 million advance from the Federal Home Loan Bank and a $17.0 million increase in deposits.

In terms of operational developments, SR Bancorp completed the acquisition of Regal Bancorp and Regal Bank on September 19, 2023, which significantly expanded its commercial lending capabilities. The merger resulted in the recognition of $20.4 million in goodwill and $9.1 million in core deposit intangibles. The company has since focused on integrating the operations of Regal Bank into Somerset Regal Bank, aiming to enhance its market presence in New Jersey.

The company’s deposit base increased by $17.0 million, or 2.1%, to $824.1 million, with a notable rise in interest-bearing checking accounts. However, noninterest-bearing deposits decreased, reflecting the competitive interest rate environment. As of December 31, 2024, the company had 9,239,130 shares of common stock outstanding, and it repurchased 280,769 shares during the quarter at an average price of $11.33 per share.

Looking ahead, SR Bancorp remains focused on leveraging its expanded commercial lending capabilities while managing interest rate risk and maintaining liquidity. The company is well-capitalized, exceeding all regulatory capital requirements, and plans to continue adjusting its deposit pricing strategy to remain competitive in the market. The management anticipates that the integration of Regal Bank will yield further operational efficiencies and growth opportunities in the coming periods.