SR Bancorp, Inc. reported net income of $834,000, or $0.11 per basic and diluted share, for the three months ended December 31, 2025. The figure represents an 18.3% year‑over‑year decline from the $1.0 million posted for the same period in 2024, but when the $202,000 of one‑time fair‑value accretion income tied to the September 2023 acquisition of Regal Bancorp is excluded, the adjusted net income is $689,000.
Total assets increased to $1.14 billion, up 5.4% from $1.08 billion at June 30, 2025, driven by a $38.2 million rise in net loans to $835.4 million. Deposits grew 5.4% to $891.5 million, supported by a $45.5 million increase in deposits and an additional $20 million of borrowings that funded the loan and cash expansion.
Interest income rose 6.6% to $12.3 million, while interest expense increased 4.9% to $4.5 million, reflecting higher average balances of interest‑bearing liabilities. Net interest income grew 7.6% to $7.8 million, and the net interest margin improved to 3.06% from 2.88% a year earlier, indicating stronger pricing power on the bank’s core lending and deposit‑taking activities.
Non‑interest income fell 7.3% to $581,000, and non‑interest expense rose 11.2% to $7.2 million, largely due to a $558,000 increase in salaries and employee benefits. The provision for credit losses increased to $49,000 from $12,000 a year earlier, with no charge‑offs reported, underscoring stable loan quality.
Management explained that the earnings decline is largely attributable to the one‑time accretion income and ongoing integration costs from the 2023 conversion and merger, rather than a deterioration in loan quality or deposit funding. The company continues to grow its balance sheet while maintaining a healthy net interest margin, and it expects integration costs to taper as the Regal Bancorp acquisition matures.
The results suggest that SR Bancorp is expanding its asset base and improving profitability on core operations, but the rising non‑interest expenses highlight the short‑term impact of integration. With no charge‑offs and a modest increase in the credit‑loss provision, loan quality remains sound, positioning the bank for continued growth as it consolidates the acquisition and leverages its expanded deposit and loan portfolio.
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