SR Bancorp(SRBK) - 2024 Q4 - Annual Results

Financial Performance - The Company reported a net loss of $3.0 million for the three months ended June 30, 2024, compared to a net income of $1.1 million for the previous quarter, marking a decrease of 385.2%[3] - SR Bancorp, Inc. reported a net loss of $10.9 million for the year ended June 30, 2024, compared to a net income of $1.6 million for the year ended June 30, 2023[26] - Noninterest income decreased by $4.4 million, or 852.9%, resulting in a loss of $3.9 million for the three months ended June 30, 2024, primarily due to a loss on the sale of investment securities[32] - The company incurred $4.4 million in merger-related expenses during the year, impacting overall financial performance[26] - The efficiency ratio deteriorated to 162.78% for the three months ended June 30, 2024, compared to 86.19% in the previous quarter, indicating increased operational costs[44] - Basic and diluted earnings per share were both reported at $(0.34) for the three months ended June 30, 2024, compared to $0.12 in the previous quarter[43] Assets and Deposits - Total assets increased by $369.4 million, or 56.7%, to $1.02 billion as of June 30, 2024, compared to $651.5 million a year earlier[6] - Total deposits increased by $303.2 million, or 60.2%, to $807.1 million as of June 30, 2024, driven by the assumption of Regal Bank's deposits[16] - Total assets increased to $1,020,844 thousand as of June 30, 2024, compared to $651,486 thousand in the previous year, representing a growth of 56.5%[40] - Total deposits rose to $807,100 thousand, up from $503,917 thousand year-over-year, reflecting a significant increase of 59.9%[40] Loans and Credit Losses - Net loans rose by $369.6 million, or 102.0%, to $731.9 million as of June 30, 2024, primarily due to the acquisition of Regal Bank's loan portfolio[15] - The Company recorded a provision for credit losses of $153,000 for the three months ended June 30, 2024, reflecting loan growth during the period[12] - The provision for credit losses was $4.2 million for the year ended June 30, 2024, reflecting the company's strategy related to the acquisition of Regal Bancorp[26] - Non-performing loans as a percentage of total gross loans remained low at 0.01% as of June 30, 2024, compared to 0.03% in the previous quarter[44] - The allowance for credit losses on loans as a percentage of non-performing loans was exceptionally high at 10,458.00%[44] Equity and Capital - Equity increased by $77.4 million, or 63.4%, to $199.5 million as of June 30, 2024, largely due to $86.9 million in net proceeds from the Company's initial public offering[17] - Goodwill and intangible assets were recorded at $28.1 million as of June 30, 2024, resulting from the merger with Regal Bancorp[36] Interest Income and Expenses - Net interest income decreased by $329,000, or 4.0%, to $7.9 million for the three months ended June 30, 2024, with a net interest margin of 3.22%[11] - Total interest income increased to $40.9 million for the year ended June 30, 2024, up from $16.1 million in the previous year, representing a growth of 153.5%[22] - Net interest income after provision for credit losses was $25.3 million for the year ended June 30, 2024, compared to $13.7 million in the previous year[22] - Total noninterest expense rose to $34.6 million for the year ended June 30, 2024, up from $13.2 million in the previous year, indicating increased operational costs[22] - Net interest income after provision for credit losses was $7,786 thousand for the three months ended June 30, 2024, down from $8,410 thousand in the previous quarter, a decrease of 7.4%[43] - The net interest margin decreased to 3.22% for the three months ended June 30, 2024, down from 3.31% in the previous quarter[44] Mergers and Acquisitions - The merger with Regal Bancorp was completed on September 19, 2023, resulting in significant increases in assets and deposits[7] - The Company closed two retail branch locations in New Jersey due to proximity to other branches following the merger[8]