SR Bancorp, Inc. (SRBK)

SR Bancorp, Inc. announced a quarterly cash dividend of $0.05 per share and authorized its second stock repurchase program in July 2025. For the full year 2025, net income reached $3.7 million, a turnaround from a $10.9 million loss in 2024; total assets grew to $1.08 billion, net loans increased to $797.3 million, and total deposits rose to $846.0 million. The net interest margin decreased to 2.90% from 3.22% year-over-year. In Q4 2025, the company posted net income of $823,000, compared to a $3.0 million loss in Q4 2024. Earlier in 2024, SR Bancorp reported a net loss of $10.9 million for the year ended June 30, 2024, primarily due to one-time expenses.

The banking industry typically experiences seasonal trends in loan demand, with lows in late January and February, increasing through July, peaking in August or September, and decreasing until December. This seasonality is influenced by interest rates and seasonal activities, such as the spring home-buying season, and likely applies to SR Bancorp, Inc.'s products and services in New Jersey.

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank, providing retail and commercial banking services to individuals, businesses, and local municipalities. The company offers deposit instruments, business checking accounts, bill payment services, and various loans, including residential mortgage, commercial real estate, and consumer loans. SR Bancorp also engages in investment activities.

SR Bancorp, Inc. primarily serves communities within New Jersey, operating approximately 14 branches across Essex, Hunterdon, Middlesex, Morris, Somerset, and Union counties through its subsidiary, Somerset Regal Bank.

While specific details are limited, a "Snowflake Analysis" noted a "Flawless balance sheet with questionable track record" and "Large one-off items impacting financial results." This suggests financial strength but potential concerns about past events or non-recurring financial items.

SR Bancorp's ownership is primarily held by individual investors (59%) and institutions (34%). The largest shareholder is the Somerset Regal Bank Employee Stock Ownership Plan (9.2%). Other major institutional owners include AllianceBernstein L.P. (6.4%) and The Vanguard Group (4.9%). Insiders have been actively buying shares, with notable purchases by Christopher J. Pribula, William P. Taylor, and David M. Orbach.