SR BANCORP, INC. ANNOUNCES QUARTERLY FINANCIAL RESULTS
SR Bancorp (NASDAQ: SRBK) reported net income of $1.4 million ($0.16 per share) for Q3 2024, compared to a net loss of $10.5 million in Q3 2023. Total assets reached $1.05 billion, up 3.1% from June 2024. Net loans increased 4.9% to $767.7 million, while deposits grew 1.5% to $819.4 million. The company's net interest margin improved to 3.21% from 2.41% year-over-year. Notable developments include a $20 million short-term borrowing to fund loan growth and the closure of a retail branch in Livingston, New Jersey.
SR Bancorp (NASDAQ: SRBK) ha riportato un utile netto di 1,4 milioni di dollari (0,16 dollari per azione) per il terzo trimestre del 2024, rispetto a una perdita netta di 10,5 milioni di dollari nel terzo trimestre del 2023. Il totale degli attivi ha raggiunto 1,05 miliardi di dollari, in aumento del 3,1% rispetto a giugno 2024. I prestiti netti sono aumentati del 4,9% a 767,7 milioni di dollari, mentre i depositi sono cresciuti dell'1,5% a 819,4 milioni di dollari. Il margine di interesse netto dell'azienda è migliorato al 3,21% rispetto al 2,41% anno su anno. Sviluppi significativi includono un prestito a breve termine di 20 milioni di dollari per finanziare la crescita dei prestiti e la chiusura di una filiale al dettaglio a Livingston, nel New Jersey.
SR Bancorp (NASDAQ: SRBK) reportó un ingreso neto de 1.4 millones de dólares (0.16 dólares por acción) para el tercer trimestre de 2024, en comparación con una pérdida neta de 10.5 millones de dólares en el tercer trimestre de 2023. Los activos totales alcanzaron 1.05 mil millones de dólares, un aumento del 3.1% desde junio de 2024. Los préstamos netos aumentaron un 4.9% a 767.7 millones de dólares, mientras que los depósitos crecieron un 1.5% a 819.4 millones de dólares. El margen de interés neto de la empresa mejoró al 3.21% desde el 2.41% interanualmente. Desarrollos notables incluyen un préstamo a corto plazo de 20 millones de dólares para financiar el crecimiento de préstamos y el cierre de una sucursal minorista en Livingston, Nueva Jersey.
SR Bancorp (NASDAQ: SRBK)는 2024년 3분기 순이익으로 140만 달러 (주당 0.16달러)를 보고했으며, 2023년 3분기에는 1050만 달러의 순손실을 기록했습니다. 총 자산은 10억 5000만 달러에 도달했으며, 2024년 6월 대비 3.1% 증가했습니다. 순대출은 4.9% 증가해 7억 6770만 달러에 달했으며, 예금은 1.5% 증가해 8억 1940만 달러로 늘어났습니다. 회사의 순이자마진은 전년 대비 2.41%에서 3.21%로 개선되었습니다. 주목할 만한 발전 사항으로는 대출 성장을 지원하기 위한 2000만 달러의 단기 차입금과 뉴저지주 리빙스턴의 소매 지점 폐쇄가 포함됩니다.
SR Bancorp (NASDAQ: SRBK) a annoncé un bénéfice net de 1,4 million de dollars (0,16 dollar par action) pour le troisième trimestre 2024, comparé à une perte nette de 10,5 millions de dollars au troisième trimestre 2023. Les actifs totaux ont atteint 1,05 milliard de dollars, en hausse de 3,1 % par rapport à juin 2024. Les prêts nets ont augmenté de 4,9 % pour atteindre 767,7 millions de dollars, tandis que les dépôts ont crû de 1,5 % à 819,4 millions de dollars. La marge d'intérêt nette de l'entreprise s'est améliorée à 3,21 % contre 2,41 % d'une année sur l'autre. Les développements notables incluent un emprunt à court terme de 20 millions de dollars pour financer la croissance des prêts et la fermeture d'une agence de vente au détail à Livingston, dans le New Jersey.
SR Bancorp (NASDAQ: SRBK) meldete für das 3. Quartal 2024 einen Nettogewinn von 1,4 Millionen Dollar (0,16 Dollar pro Aktie) im Vergleich zu einem Nettverlust von 10,5 Millionen Dollar im 3. Quartal 2023. Die Gesamtaktiva betrugen 1,05 Milliarden Dollar, was einem Anstieg von 3,1 % seit Juni 2024 entspricht. Die Nettodarlehen stiegen um 4,9 % auf 767,7 Millionen Dollar, während die Einlagen um 1,5 % auf 819,4 Millionen Dollar zulegten. Die Nettomarge der Zinsen des Unternehmens verbesserte sich von 2,41 % auf 3,21 % im Jahresvergleich. Zu den bemerkenswerten Entwicklungen gehören eine kurzfristige Kreditaufnahme von 20 Millionen Dollar zur Finanzierung des Darlehenswachstums sowie die Schließung einer Filiale in Livingston, New Jersey.
- Net income improved significantly to $1.4 million from a $10.5 million loss year-over-year
- Net interest margin increased 80 basis points to 3.21%
- Net loans grew 4.9% to $767.7 million quarter-over-quarter
- Total deposits increased 1.5% to $819.4 million
- Non-performing loans decreased to $9,000 from $144,000 year-over-year
- 16.8% of total deposits ($137.6 million) were uninsured
- Increased borrowings by $20 million for liquidity needs
- Interest expense increased 177% year-over-year to $3.9 million
Insights
SR Bancorp's Q3 2024 results demonstrate significant improvement, with a
- Net interest income increased
83.2% to$7.6 million - Net interest margin improved by 80 basis points to
3.21% - Loan portfolio grew by
4.9% to$767.7 million - Strong asset quality with minimal non-performing loans of
$9,000
However, there are some concerns:
- High uninsured deposits at
16.8% ($137.6 million ) - Increased borrowing of
$20 million for liquidity - Interest expense rose
177% due to higher deposit costs
The bank's risk profile shows mixed signals. Positives include improved credit quality with a
However, the
Total assets were
Completed Stock Offering and Merger
The conversion of Somerset Savings Bank, SLA from the mutual to stock form of organization and related stock offering by the Company was completed on September 19, 2023. In connection therewith, the Company sold 9,055,172 shares of common stock at a price of
Promptly following the completion of the conversion and related stock offering, Regal Bancorp merged with and into the Company, with the Company as the surviving entity (the "Merger"). Immediately following the Merger, Regal Bank, a
Branch Closure
On September 25, 2024, the Company closed one of its retail branch locations in
Comparison of Operating Results for the Three Months Ended September 30, 2024 and September 30, 2023
General. Net income increased
Interest Income. Interest income increased
Interest Expense. Interest expense increased
Net Interest Income. Net interest income increased
Provision for Credit Losses. The Bank establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Bank considers, among other things, past and current loss experience, evaluations of real estate collateral, economic conditions, the amount and type of lending, adverse situations that may affect a borrower's ability to repay a loan and the levels of delinquent, classified and criticized loans. The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates as more information becomes available or conditions change. The Bank assesses the allowance for credit losses and records provisions for credit losses on a quarterly basis.
The Bank recorded a recovery for credit losses of
Noninterest Income. Noninterest income increased
Noninterest Expense. Noninterest expense decreased
Income Tax Expense. The provision for income taxes was
Comparison of Financial Condition at September 30, 2024 and June 30, 2024
Assets. Assets increased
Cash and Cash Equivalents. Cash and cash equivalents increased
Securities. Securities held-to-maturity decreased
Loans. Loans receivable, net, increased
Goodwill and Intangible Assets. Goodwill and the core deposit intangible asset recognized from the Merger totaled
Deposits. Deposits increased
Borrowings. During the three months ended September 30, 2024, the Bank borrowed
Equity. Equity increased
About Somerset Regal Bank
Somerset Regal Bank is a full-service
Forward-Looking Statements
Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, our ability to successfully integrate acquired operations and realize the expected level of synergies and cost savings, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the
SR Bancorp, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Financial Condition | ||||||||
September 30, 2024 (Unaudited) and June 30, 2024 | ||||||||
(Dollars in thousands) | ||||||||
September 30, 2024 | June 30, 2024 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 4,222 | $ | 8,622 | ||||
Interest-bearing deposits at other banks | 43,076 | 37,287 | ||||||
Total cash and cash equivalents | 47,298 | 45,909 | ||||||
Securities held-to-maturity, at amortized cost | 154,724 | 158,325 | ||||||
Equity securities, at fair value | 27 | 25 | ||||||
Loans receivable, net of allowance for credit losses of | 767,717 | 731,859 | ||||||
Premises and equipment, net | 5,204 | 5,419 | ||||||
Right-of-use asset | 2,308 | 2,311 | ||||||
Restricted equity securities, at cost | 2,131 | 1,231 | ||||||
Accrued interest receivable | 2,800 | 2,695 | ||||||
Bank owned life insurance | 37,353 | 37,093 | ||||||
Goodwill and intangible assets | 27,755 | 28,141 | ||||||
Other assets | 5,643 | 7,836 | ||||||
Total assets | $ | 1,052,960 | $ | 1,020,844 | ||||
Liabilities and Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 114,296 | $ | 108,026 | ||||
Interest-bearing | 705,088 | 699,074 | ||||||
Total deposits | 819,384 | 807,100 | ||||||
Borrowings | 20,000 | — | ||||||
Advance payments by borrowers for taxes and insurance | 7,890 | 8,073 | ||||||
Accrued interest payable | 292 | 149 | ||||||
Lease liability | 2,405 | 2,403 | ||||||
Other liabilities | 2,445 | 3,636 | ||||||
Total liabilities | 852,416 | 821,361 | ||||||
Equity | ||||||||
Common stock, | 87 | 95 | ||||||
Additional paid-in capital | 90,706 | 91,436 | ||||||
Retained earnings | 117,572 | 116,205 | ||||||
Unearned compensation ESOP | (6,941) | (7,036) | ||||||
Accumulated other comprehensive loss | (880) | (1,217) | ||||||
Total stockholders' equity | 200,544 | 199,483 | ||||||
Total liabilities and stockholders' equity | $ | 1,052,960 | $ | 1,020,844 | ||||
SR Bancorp, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Income | ||||||||
For the three months ended September 30, 2024 (Unaudited) and September 30, 2023 (Unaudited) | ||||||||
(Dollars in thousands) | ||||||||
Three Months Ended | ||||||||
September 30, 2024 | September 30, 2023 | |||||||
(Unaudited) | ||||||||
Interest Income | ||||||||
Loans, including fees | $ | 10,286 | $ | 3,755 | ||||
Securities: | ||||||||
Taxable | 661 | 858 | ||||||
Federal funds sold | — | 10 | ||||||
Interest bearing deposits at other banks | 520 | 920 | ||||||
Total interest income | 11,467 | 5,543 | ||||||
Interest Expense | ||||||||
Deposits: | ||||||||
Demand | 926 | 47 | ||||||
Savings and time | 2,784 | 1,111 | ||||||
Borrowings | 163 | 240 | ||||||
Total interest expense | 3,873 | 1,398 | ||||||
Net Interest Income | 7,594 | 4,145 | ||||||
(Credit) Provision for Credit Losses | (154) | 4,162 | ||||||
Net Interest Income After (Credit) Provision for Credit Losses | 7,748 | (17) | ||||||
Noninterest Income | ||||||||
Service charges and fees | 296 | 171 | ||||||
Increase in cash surrender value of bank owned life insurance | 260 | 175 | ||||||
Fees and service charges on loans | 56 | 5 | ||||||
Unrealized gain (loss) on equity securities | 2 | (3) | ||||||
Realized loss on sale of investments | — | (17) | ||||||
Realized gain on sale of loans | 24 | — | ||||||
Other | 163 | 182 | ||||||
Total noninterest income | 801 | 513 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 3,240 | 4,544 | ||||||
Occupancy | 632 | 237 | ||||||
Furniture and equipment | 293 | 161 | ||||||
Data Processing | 629 | 807 | ||||||
Advertising | 82 | 57 | ||||||
FDIC premiums | 120 | 83 | ||||||
Directors fees | 92 | 88 | ||||||
Professional fees | 489 | 854 | ||||||
Insurance | 159 | 116 | ||||||
Telephone, postage and supplies | 181 | 84 | ||||||
Other | 902 | 5,906 | ||||||
Total noninterest expense | 6,819 | 12,937 | ||||||
Income Before Income Tax Expense | 1,730 | (12,441) | ||||||
Income Tax Expense | 363 | (1,943) | ||||||
Net Income | 1,367 | $ | (10,498) | |||||
Basic earnings per share | $ | 0.16 | $ | (10.03) | ||||
Diluted earnings per share | $ | 0.16 | $ | (10.03) | ||||
SR Bancorp, Inc. and Subsidiaries | ||||
Selected Ratios | ||||
(Dollars in thousands, except per share data) | ||||
Three Months Ended | ||||
September 30, 2024 | September 30, 2023 | |||
(Unaudited) | ||||
Performance Ratios: (1) | ||||
Return (loss) on average assets (2) | 0.53 % | (5.74) % | ||
Return (loss) on average equity (3) | 2.77 % | (32.39) % | ||
Net interest margin (4) | 3.21 % | 2.41 % | ||
Net interest rate spread (5) | 2.70 % | 2.12 % | ||
Efficiency ratio (6) | 81.23 % | 277.74 % | ||
Total gross loans to total deposits | 94.31 % | 79.53 % | ||
Asset Quality Ratios: | ||||
Allowance for credit losses on loans as a percentage of total gross loans | 0.66 % | 0.77 % | ||
Allowance for credit losses on loans as a percentage of non-performing loans | 56388.89 % | 3697.92 % | ||
Net (charge-offs) recoveries to average outstanding loans during the period | 0.00 % | 0.00 % | ||
Non-performing loans as a percentage of total gross loans | 0.00 % | 0.02 % | ||
Non-performing assets as a percentage of total assets | 0.00 % | 0.01 % | ||
Other Data: | ||||
Tangible book value per common share (7) | ||||
Tangible common equity to tangible assets | 16.85 % | 15.29 % | ||
(1) Performance ratios for the three month periods ended September 30, 2024 and September 30, 2023 are annualized. |
(2) Represents net income divided by average total assets. |
(3) Represents net income divided by average equity. |
(4) Represents net interest income as a percentage of average interest-earning assets. (5) Represents net interest rate spread as a percentage of average interest-earning assets. |
(6) Represents non-interest expense divided by the sum of net interest income and non-interest income. |
(7) Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Goodwill and core deposit intangibles were |
View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-quarterly-financial-results-302292149.html
SOURCE SR Bancorp, Inc.
FAQ
What was SR Bancorp's (SRBK) net income in Q3 2024?
How much did SR Bancorp's (SRBK) deposits grow in Q3 2024?
What was SR Bancorp's (SRBK) net interest margin in Q3 2024?
How much did SR Bancorp's (SRBK) loan portfolio grow in Q3 2024?
