SR Bancorp (SRBK) Q2 2025 earnings summary

Executive summary

• Net income was $823,000 for Q4 2025, reversing a $3.0 million loss in Q4 2024; annual net income was $3.7 million for FY 2025, up from a $10.9 million loss in FY 2024, reflecting a turnaround after significant prior year merger and charitable expenses.

• Excluding non-recurring items, adjusted net income was $515,000 for Q4 2025 and $1.7 million for FY 2025.

• Total assets increased 6.1% year-over-year to $1.08 billion at June 30, 2025, driven by loan growth and higher cash balances.

• Completed the merger with Regal Bancorp and conversion to stock form in September 2023, expanding commercial lending capabilities.

• Significant one-time items in FY 2024 included $4.4 million in merger expenses, $4.2 million provision for credit losses, and $5.4 million charitable contribution.

Financial highlights

• Net interest income for FY 2025 was $29.6 million, up 0.7% year-over-year; Q4 2025 net interest income was $7.5 million, down 6.1% from Q4 2024.

• Noninterest income for FY 2025 was $2.2 million, up from a $2.5 million loss in FY 2024, mainly from the absence of prior year securities losses.

• Noninterest expense decreased 21.8% year-over-year to $27.1 million for FY 2025, reflecting lower salaries and the absence of prior year merger and charitable costs.

• Provision for credit losses was $12,000 for the quarter and a recovery of $142,000 for the six months ended December 31, 2024; $4.2 million provision in FY 2024.

• Basic and diluted EPS for Q4 2025 were $0.10, and $0.44 for FY 2025.

Outlook and guidance

• Management highlights competitive pressures, interest rate environment, and economic conditions as key uncertainties.

• The company expects to continue managing interest rate risk through asset-liability strategies and does not engage in high-risk hedging.