SR Bancorp, Inc. reported significant financial improvements in its third quarter of 2024, reflecting a robust recovery from the previous year. As of September 30, 2024, total assets increased to $1,052.96 million, up from $1,020.84 million at the end of June 2024. This growth was primarily driven by new loan originations, with loans receivable net of allowance for credit losses rising to $767.72 million, compared to $731.86 million in the prior quarter.
The company achieved a net income of $1.37 million for the three months ended September 30, 2024, a substantial turnaround from a net loss of $10.50 million during the same period in 2023. This improvement was attributed to a 106.9% increase in total interest income, which reached $11.47 million, largely due to a significant rise in interest income from loans, which surged to $10.29 million from $3.76 million year-over-year. The net interest income also saw a notable increase, rising to $7.59 million from $4.15 million in the previous year.
Total deposits increased to $819.38 million, up from $807.10 million at the end of June 2024, with demand accounts and interest-bearing deposits contributing to this growth. The company’s Tier 1 capital ratio remained strong at 16.06%, exceeding regulatory requirements, although it decreased slightly from 16.83% in the previous quarter.
Strategically, SR Bancorp completed the merger with Regal Bancorp on September 19, 2023, which has been a pivotal development for the company. The merger resulted in the recognition of $20.4 million in goodwill and $9.1 million in core deposit intangibles. The integration of Regal Bank into Somerset Bank, now renamed Somerset Regal Bank, is expected to enhance operational efficiencies and market presence.
Noninterest income for the quarter also increased to $801,000, up from $513,000 in the prior year, driven by higher service charges and fees. Conversely, noninterest expenses decreased significantly to $6.82 million from $12.94 million, primarily due to the absence of one-time charitable contributions that impacted the previous year’s results.
Overall, SR Bancorp's financial performance in Q3 2024 reflects a strong recovery trajectory, bolstered by strategic mergers and improved operational efficiencies, positioning the company favorably for future growth.
About SR Bancorp, Inc.
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