SR Bancorp reported third‑quarter 2025 results for the period ending September 30, 2025, with net income of $693,000, or $0.09 per basic and diluted share, a 49.3% decline from the $1.4 million earned in the same quarter a year earlier. The drop is largely attributable to a $303,000 reduction in net accretion income from fair‑value adjustments related to the 2023 acquisition of Regal Bank, while core operating income remained positive.
Interest income increased 4.1% to $11.9 million, driven by a $609 million rise in the average balance of loans. Interest expense rose 12.1% to $4.3 million, reflecting higher deposit rates and additional borrowings. Net interest income held steady at $7.6 million, but the net interest margin fell to 3.05% from 3.21% in the prior quarter, and the net interest rate spread contracted to 2.56% from 2.70%. The margin compression is linked to rising funding costs, including increased competition for deposits and the impact of the Federal Reserve’s higher rate path.
Provision for credit losses increased to $171,000 from $154,000 a year earlier. Noninterest income fell 29.5% to $565,000, with a $123,000 decline in other income and a $66,000 drop in service charges and fees. The decline in other income reflects lower fee‑based revenue from loan servicing and reduced interest‑related fee income.
Noninterest expense rose 4.0% to $7.1 million, driven by a $613,000 increase in salaries and employee benefits, including stock‑based compensation. The company reported no charge‑offs or non‑performing loans during the quarter, indicating stable credit quality.
Total assets grew to $1.11 billion, up 2.4% from $1.08 billion at June 30, 2025, supported by a 3.7% rise in loans to $826.4 million and a 2.8% increase in deposits to $869.6 million. Equity declined slightly to $191.9 million, primarily due to the repurchase of 198,310 shares for $2.9 million. In July 2025, the board authorized a second share‑repurchase program for up to 10% of outstanding shares, underscoring management’s confidence in the company’s capital position.
The company declared a quarterly cash dividend of $0.05 per share, payable in October 2025. Management emphasized confidence in the bank’s capital position and its continued focus on growth through organic lending expansion and strategic acquisitions.
No forward guidance beyond the dividend declaration was provided in the release.
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