SR BANCORP, INC. ANNOUNCES FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

Financial Performance - The company reported a net income of $823,000, or $0.10 per share, for the three months ended June 30, 2025, a significant improvement from a net loss of $3.0 million for the same period in 2024 [1][6] - For the year ended June 30, 2025, net income was $3.7 million, compared to a net loss of $10.9 million for the year ended June 30, 2024 [2][16] - Excluding one-time expenses, net income for the year ended June 30, 2025 would have been $1.7 million [2] Asset and Loan Growth - Total assets increased by $62.2 million, or 6.1%, to $1.08 billion at June 30, 2025, driven by new loan originations [3][24] - Net loans rose by $65.5 million, or 8.9%, to $797.3 million at June 30, 2025, with increases in residential mortgage loans and multi-family loans [3][26] Deposit and Borrowing Activity - Total deposits increased by $38.9 million, or 4.8%, to $846.0 million at June 30, 2025, attributed to raised rates on interest-bearing deposit products [3][27] - The company borrowed $30.0 million from the Federal Home Loan Bank of New York to enhance liquidity for new loans [28] Interest Income and Expense - Interest income for the three months ended June 30, 2025, increased by $319,000, or 2.8%, to $11.7 million, primarily due to a rise in interest income on loans [7] - Interest expense rose by $806,000, or 23.4%, to $4.3 million for the same period, driven by increased interest on demand deposits and borrowings [8][9] Noninterest Income and Expense - Noninterest income increased by $4.4 million, or 113.4%, to $522,000 for the three months ended June 30, 2025, recovering from a loss of $3.9 million in the prior year [13] - Noninterest expense rose by $216,000, or 3.3%, to $6.8 million, mainly due to higher salaries and employee benefits [14] Credit Loss Provisions - The company recorded a provision for credit losses of $81,000 for the three months ended June 30, 2025, down from $153,000 in the same period of 2024 [12] - The allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2025, compared to 0.71% at June 30, 2024 [12][20] Equity and Stock Activity - Total equity decreased by $7.1 million, or 3.6%, to $192.4 million at June 30, 2025, primarily due to the repurchase of common stock [29] - The company completed a stock offering and merger in September 2023, which contributed to its current financial structure [4][5]