SR Bancorp (SRBK) investor relations material

Executive summary

• Net income for the quarter ended December 31, 2025, was $834,000, down 18.3% year-over-year; six-month net income was $1.5 million, down 36.1% year-over-year, mainly due to lower accretion income from a prior acquisition.

• Total assets increased 5.4% to $1.14 billion from June 30, 2025, driven by loan growth and higher cash balances.

• Deposits rose 5.4% to $891.5 million, and borrowings increased by $20 million to $50 million over the six-month period.

• Total equity decreased 2.8% to $188.5 million, primarily due to share repurchases.

Financial highlights

• Net interest income for the quarter rose 7.6% year-over-year to $7.8 million; for six months, it increased 3.7% to $15.4 million.

• Net interest margin improved to 3.06% for the quarter and 3.05% for the six months.

• Provision for credit losses was $49,000 for the quarter and $221,000 for six months, reflecting loan growth.

• Noninterest income declined 7.3% for the quarter and 10.4% for six months, mainly due to lower service charges and loan fees.

• Noninterest expense increased 11.2% for the quarter and 8.7% for six months, driven by higher salaries and stock-based compensation.

• Allowance for credit losses was 0.67% of total loans at December 31, 2025.

Outlook and guidance

• Management expects to continue focusing on commercial loan growth and maintaining competitive deposit rates.

• Interest rate risk remains a key focus, with strategies in place to manage exposure and maintain liquidity.