0001193125-26-051277
SEC filingSR Bancorp, Inc. reported a solid fiscal second quarter for 2026, demonstrating stable core banking performance. Net interest income, the primary revenue driver, totaled $7.8 million for the period ending December 31, 2025, supported by $12.3 million in total interest income. After accounting for a $49K provision for credit losses, net interest income stood at $7.7 million. Noninterest income contributed $581K, while noninterest expenses totaled $7.2 million, led by salaries and employee benefits of $3.9 million. The company reported net income of $834K and income before tax of $1.1 million. On the balance sheet, total assets reached $1.14 billion, with loans receivable netting $835.4 million. Total deposits increased to $891.5 million, comprising $769.8 million in interest-bearing deposits and $121.7 million in noninterest-bearing deposits. Stockholders' equity strengthened to $188.5 million. Cash flow from financing activities provided $57.2 million, significantly offsetting $38.0 million used in investing activities, resulting in a net increase of $24.1 million in cash and cash equivalents.
SR Bancorp, Inc. demonstrated steady financial performance for the fiscal second quarter ended December 31, 2025. The company generated total interest income of $12.3 million against total interest expense of $4.5 million, resulting in a net interest income of $7.8 million. After a provision for credit losses of $49K, the net interest income stood at $7.7 million. Noninterest income added $581K, primarily from service charges and bank-owned life insurance. With total noninterest expenses of $7.2 million, the company achieved an income before income tax expense of $1.1 million and a net income of $834K. The balance sheet reflects a robust position with total assets of $1.14 billion and stockholders' equity of $188.5 million.
Revenue generation was heavily reliant on interest-bearing activities. Interest income from loans, including fees, contributed $11.3 million, representing the vast majority of the $12.3 million total interest income. Additional interest income streams included taxable securities ($534K) and interest-bearing deposits at other banks ($481K). Noninterest income provided supplementary revenue, totaling $581K. Key contributors included service charges and fees ($224K), increase in cash surrender value of bank-owned life insurance ($268K), and other income sources. No specific segment breakdown or geographic mix was disclosed in the provided data.
The company maintained a strong net interest margin, with net interest income ($7.8M) representing 63.4% of total interest income. The efficiency ratio, approximated by noninterest expense ($7.2M) relative to the sum of net interest income and noninterest income ($8.4M), indicates tight cost management. The primary expense driver was salaries and employee benefits at $3.9 million, followed by professional fees and data processing costs. Income tax expense was $254K, representing an effective tax rate on the $1.1M pre-tax income. Profitability was constrained by high noninterest expenses relative to income generated.
Operating activities provided $4.8M in cash, driven by net income adjustments including $1.0M in stock-based compensation. Investing activities used $38.0M, primarily due to a $37.4M net increase in loans receivable and $6.0M in securities purchases. Financing activities provided $57.2M, fueled by a $37.9M increase in interest-bearing deposits and $20.0M in short-term borrowings, partially offset by $7.1M in stock repurchases and $835K in dividends paid. Total cash and cash equivalents increased by $24.1M, ending at $57.8M. The allowance for credit losses stood at $5,533.
The provided XBRL data and document content do not contain specific forward-looking statements, management guidance, or strategic priorities regarding future periods. Investors should refer to the full 10-Q filing's Management's Discussion and Analysis (MD&A) section for detailed outlook information, risk factors, and strategic initiatives. The significant stock repurchase activity ($7.1M) and dividend payments ($835K) suggest a focus on shareholder returns.