SR Bancorp, Inc. (NASDAQ: SRBK), the holding company for Somerset Regal Bank, reported financial results for the three months ended September 30, 2026. The company announced net income of $1.1 million for the quarter, representing a 54.1% increase compared to the same period in 2025. This figure equates to $0.15 per basic and diluted share.
Excluding $47,000 of net accretion income related to fair value adjustments from the acquisition of Regal Bancorp in September 2023, net income would have been $1.0 million. Total assets stood at $1.22 billion as of September 30, 2026, an increase of $24.2 million, or 2.0%, from the previous quarter. Net loans increased by $46.2 million, or 5.1%, to $947.4 million, driven by commercial and residential mortgage loan growth.
Deposits increased by $52.8 million, or 5.7%, to $979.2 million. The company utilized $50.0 million in brokered certificates of deposits obtained during the first fiscal quarter to pay down borrowings and fund loan growth. Total borrowings decreased from $65.0 million to $35.0 million during the period.
Net interest income rose 9.3% to $8.3 million, while the net interest margin decreased two basis points to 3.03%. The company recorded a provision for credit losses of $177,000 and reported no charge-offs or non-performing loans. Noninterest income increased 6.5% to $602,000, primarily due to gains on the sale of loans. Noninterest expense increased 2.9% to $7.3 million, largely due to a 6.1% increase in salaries and employee benefits.
The company repurchased 17,127 shares of common stock at a cost of $328,000 during the quarter. Total equity increased to $182.3 million.
