SR Bancorp (SRBK) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net income rose 54.1% YoY to $1.068M, or $0.15 per basic and diluted share; adjusted net income was $1.034M.

• Assets rose 2.0% QoQ to $1.216B; net loans increased $46.2M and deposits rose $52.8M, while borrowings fell $30.0M.

Financial highlights

• Net interest income increased 9.3% YoY to $8.302M; interest income rose 14.8% to $13.7M and interest expense rose 24.3% to $5.4M.

• Provision for credit losses was $177K versus $171K, leaving $8.125M of net interest income after provision.

• Noninterest income rose 6.5% to $602K, including a $42K realized gain on loan sales; noninterest expense increased 2.9% to $7.297M.

• Income before taxes was $1.430M versus $895K; tax expense was $362K versus $202K, and the effective tax rate was 25.3% versus 22.6%.

• Excluding acquisition-related fair-value accretion, adjusted net income was $1.034M versus $475K; net accretion was $47K versus $303K.

Outlook and guidance

• Strategy focuses on commercial and multifamily originations through broker relationships and competitive pricing in the primary market.

• Management said liquidity sources were sufficient for short- and long-term needs; liquid assets were 6.1% of deposits against a 4%–15% target range.

• Funding plans account for $270.5M of certificates of deposit due within one year; management expects a significant portion to remain and can adjust offered deposit rates.