SR Bancorp (SRBK) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $1.0 million, down from $1.6 million in Q4 2023; six-month net income was $2.4 million, reversing a $8.9 million loss in the prior year period.

• Adjusted net income for Q4 was $452,000, excluding $791,000 of net accretion income from the Regal Bancorp acquisition; for six months, adjusted net income was $1.1 million, excluding $1.8 million of net accretion income.

• Results reflect the impact of the September 2023 merger with Regal Bancorp, including accretion income and prior period merger-related costs.

• Total assets grew to $1.06 billion, up 4.3% from June 30, 2024, driven by $43.9 million growth in loans receivable and increased deposits.

• Completed the conversion to stock form and the merger with Regal Bancorp in September 2023.

Financial highlights

• Net interest income for Q4 2024 was $7.2 million, down 19.7% year-over-year; for the six months, it rose 12.7% to $14.8 million.

• Net interest margin declined to 2.88% for Q4 2024 (from 3.56%) and 2.98% for the six months (from 3.10%).

• Noninterest income rose 71.8% for the quarter and 45.7% for the six months, driven by higher service charges and loan fees.

• Noninterest expense fell 12.9% for the quarter and 35.4% for the six months, reflecting lower salaries and the absence of prior year merger and charitable costs.

• Allowance for credit losses was 0.65% of total loans at December 31, 2024, with no non-performing loans or charge-offs at period end.

Outlook and guidance

• Management expects continued focus on commercial loan growth and maintaining strong capital and liquidity positions.

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

• Forward-looking statements are subject to risks including competition, interest rate changes, economic conditions, integration of acquisitions, and regulatory changes.