SR Bancorp, Inc. reported a significant turnaround in its financial performance for the fiscal year ending June 30, 2025, achieving a net income of $5.1 million compared to a net loss of $10.9 million in the previous year. This improvement was largely attributed to the completion of the merger with Regal Bancorp and the associated fair value adjustments, which contributed $2.8 million to net income. The company’s total assets increased by 6.2% to $1.08 billion, driven by a net increase of $65.3 million in loans receivable, while total deposits rose by 4.8% to $846.0 million.
The merger with Regal Bancorp, finalized on September 19, 2023, expanded SR Bancorp's market presence into Essex, Morris, and Union Counties, New Jersey, enhancing its commercial lending capabilities. The company sold 9,055,172 shares of common stock at $10.00 per share during its stock offering, raising capital to support its growth strategy. As of June 30, 2025, the company had 119 full-time employees and two part-time employees, with no labor union representation.
Operationally, SR Bancorp's loan portfolio composition shifted, with residential mortgage loans comprising 53.4% and commercial loans making up 45.0% of total loans. The company reported no non-performing loans as of June 30, 2025, a notable improvement from the previous year. The allowance for credit losses was maintained at 0.67% of total loans, reflecting a conservative approach to credit risk management. The company also reported a significant increase in noninterest income, which rose to $3.7 million from a loss of $2.5 million in the prior year, primarily due to gains from life insurance proceeds.
Looking ahead, SR Bancorp aims to leverage its expanded market presence and enhanced lending capabilities to drive growth. The company plans to focus on increasing its commercial loan originations and expanding its core deposit base, which represented 68.3% of total deposits as of June 30, 2025. Additionally, the company is committed to maintaining high asset quality and enhancing customer service through technology investments. Despite the positive outlook, SR Bancorp acknowledges the competitive landscape and potential economic challenges that could impact its growth trajectory.
About SR Bancorp, Inc.
SR Bancorp, Inc. is a Maryland-based holding company for Somerset Regal Bank, offering banking services in New Jersey. It provides a range of deposit and loan products, including residential, commercial real estate, multi-family, and consumer loans. The company focuses on community banking, commercial and residential lending, and investment securities, serving diverse markets with competitive banking solutions and regulatory compliance.
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