SR Bancorp(US:SRBK)2026-01-28 21:00Financial Performance - Net income for the three months ended December 31, 2025, was $834,000, a decrease of $187,000 or 18.3% compared to $1.0 million for the same period in 2024[4] - Net income for the six months ended December 31, 2025, was $1.5 million, a decrease of $861,000 or 36.1% compared to $2.4 million for the same period in 2024[14] - The company reported a basic earnings per share of $0.11 for the three months ended December 31, 2025, down from $0.12 for the same period in 2024[36] - Adjusted net income for the three months ended December 31, 2025, was $689 million, compared to $452 million for the same period in 2024, representing an increase of approximately 52.5%[40] Assets and Loans - Total assets increased by $58.6 million, or 5.4%, to $1.14 billion at December 31, 2025, compared to $1.08 billion at June 30, 2025[3] - Net loans rose by $38.2 million, or 4.8%, to $835.4 million at December 31, 2025, from $797.2 million at June 30, 2025[3] - Loans receivable, net, increased by $38.2 million, or 4.8%, to $835.4 million at December 31, 2025, from $797.2 million at June 30, 2025, due to strong market demand[26] - Cash and cash equivalents rose by $24.1 million, or 41.6%, to $81.8 million at December 31, 2025, from $57.8 million at June 30, 2025[24] - Deposits increased by $45.5 million, or 5.4%, to $891.5 million at December 31, 2025, from $846.0 million at June 30, 2025[27] Income and Expenses - Interest income increased by $765,000, or 6.6%, to $12.3 million for the three months ended December 31, 2025, driven by an increase in the average balance of interest-earning assets[5] - Net interest income increased by $552,000, or 7.6%, to $7.8 million for the three months ended December 31, 2025, with a net interest margin of 3.06%[8] - Noninterest income decreased by $46,000, or 7.3%, to $581,000 for the three months ended December 31, 2025, primarily due to a decrease in service charges and fees[11] - Noninterest expense increased by $726,000, or 11.2%, to $7.2 million for the three months ended December 31, 2025, largely due to higher salaries and employee benefits[12] - Total noninterest income for the six months ended December 31, 2025, was $1.146 million, compared to $1.279 million for the same period in 2024, a decrease of 10.4%[36] Credit Quality - The provision for credit losses was $49,000 for the three months ended December 31, 2025, compared to $12,000 for the same period in 2024[10] - The allowance for credit losses on loans as a percentage of total gross loans was 0.66% for both the three months ended December 31, 2025, and 2024, showing stability in asset quality[38] - Non-performing loans as a percentage of total gross loans remained low at 0.02% for the three months ended December 31, 2025, consistent with the previous year[38] Efficiency and Ratios - The effective tax rate was 23.3% for the three months ended December 31, 2025, compared to 24.1% for the same period in 2024[13] - The efficiency ratio for the three months ended December 31, 2025, was 86.42%, compared to 82.75% for the same period in 2024, indicating a decline in operational efficiency[38] - The return on average equity for the three months ended December 31, 2025, was 1.68%, down from 2.16% for the same period in 2024, reflecting a decrease in profitability[38] Shareholder Value - Equity decreased by $5.3 million, or 2.8%, to $188.5 million at December 31, 2025, from $193.8 million at June 30, 2025, primarily due to stock repurchases[29] - Tangible book value per share increased to $19.25 as of December 31, 2025, up from $18.45 as of December 31, 2024, reflecting a growth of approximately 4.3%[38] Liquidity - The company borrowed an additional $20.0 million from the Federal Home Loan Bank of New York during the six months ended December 31, 2025, to enhance liquidity for new loans[28] - The total gross loans to total deposits ratio was 94.33% for the three months ended December 31, 2025, unchanged from the same period in 2024, indicating stable lending practices[38]