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

Core Viewpoint - SR Bancorp, Inc. reported significant improvements in financial performance for the quarter and year ended June 30, 2025, with net income of $2.2 million for the quarter and $5.1 million for the year, compared to net losses in the previous year. The results were positively impacted by gains from life insurance proceeds and adjustments related to the acquisition of Regal Bancorp. Financial Performance Summary - For the three months ended June 30, 2025, net income was $2.2 million, or $0.28 per basic share, compared to a net loss of $3.0 million for the same period in 2024 [1][5] - For the year ended June 30, 2025, net income was $5.1 million, or $0.61 per share, compared to a net loss of $10.9 million for the previous year [2][15] Income and Expenses - Interest income increased by $319,000, or 2.8%, to $11.7 million for the quarter, driven by a $644,000 increase in interest income on loans [6] - Interest expense rose by $806,000, or 23.4%, to $4.3 million for the quarter, primarily due to increased interest on demand deposits [7] - Net interest income decreased by $487,000, or 6.1%, to $7.5 million for the quarter, with a net interest margin of 2.90% [8][9] Provision for Credit Losses - The provision for credit losses was $238,000 for the quarter, reflecting loan growth and adjustments based on updated historical loss factors, compared to $153,000 for the same period in 2024 [11][20] Noninterest Income and Expenses - Noninterest income increased by $5.9 million, or 152.2%, to $2.0 million for the quarter, primarily due to gains from life insurance proceeds [12] - Noninterest expense increased by $216,000, or 3.3%, to $6.8 million for the quarter, largely due to higher salaries and employee benefits [13] Balance Sheet Highlights - Total assets increased by $63.6 million, or 6.2%, to $1.08 billion at June 30, 2025, driven by loan growth [3][24] - Net loans increased by $65.3 million, or 8.9%, to $797.2 million, while total deposits rose by $38.9 million, or 4.8%, to $846.0 million [3][27] - Equity decreased by $5.7 million, or 2.9%, to $193.8 million, primarily due to stock repurchases [29] Recent Corporate Actions - The conversion of Somerset Savings Bank from mutual to stock form and the related stock offering were completed on September 19, 2023, followed by the merger with Regal Bancorp [4]