10-Q · May 15, 2026
SR Bancorp reported a net income of $886,000, or $0.12 per share for Q3 2026, a notable increase from $537,000, or $0.06 per share in Q3 2025, marking a doubling of its EPS year-over-year. Despite a marginal revenue…
Earnings analysis · 10-K
SRBK earnings analysis
Filed September 25, 2026 · Our reading of the company's report
The latest report
SR Bancorp delivered solid balance-sheet growth and improved spread performance, with loans up 13.0%, deposits up 9.5% and net interest margin rising to 3.04%. However, profitability weakened: net income fell to $3.4…
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SR Bancorp delivered solid balance-sheet growth and improved spread performance, with loans up 13.0%, deposits up 9.5% and net interest margin rising to 3.04%. However, profitability weakened: net income fell to $3.4 million from $5.1 million, diluted EPS declined to $0.44 from $0.61, and noninterest income fell 40.7% because the prior year included $1.5 million of life-insurance proceeds. The outlook is mixed, combining clean credit metrics and commercial/SBA growth opportunities with concentrated real-estate exposure, meaningful rate sensitivity and substantial deposit repricing needs.
Reported figures
- Earnings per share
- $0.44
- Segment
- Community Banking: the company operates as a single community-banking segment; 2026 total interest income was $49.580 million and noninterest income was $2.216 million.
What stood out
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Loan growth drove 9.7% asset expansion
Loan-led balance-sheet expansion continued: loans receivable increased 13.0% to $901.2 million, while total assets rose 9.7% to $1.19 billion. Residential mortgage loans increased $48.5 million, multi-family loans $33.0 million, and other commercial real estate loans $20.1 million.
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Margin expansion supported net interest income
Core earnings showed some operating improvement: net interest income increased 5.6% to $31.2 million, net interest margin expanded 11 basis points to 3.04%, and the net interest-rate spread increased 22 basis points to 2.57%.
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Credit quality remained clean
Credit quality remained strong despite growth: the Bank reported no non-performing loans and no charge-offs at June 30, 2026, while all $904.5 million of loans were classified as pass-rated. The allowance for credit losses was $5.938 million, or 0.65% of total loans.
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Deposit growth supports community-bank strategy
Deposits increased 9.5% to $926.4 million, with core deposits representing 69.8% of total deposits versus 68.3% a year earlier. The company operates 14 branches across six New Jersey counties and emphasizes residential, commercial and SBA lending.
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Aggressive buybacks alongside dividends
Capital returns were substantial relative to earnings: the company repurchased 978,778 shares for $16.0 million and paid $1.6 million of dividends, while the quarterly dividend was $0.06 per share. The Bank remained well capitalized with a 13.81% Tier 1 leverage ratio versus a 9.00% well-capitalized threshold.
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Commercial and SBA roadmap advances
The company is investing in commercial and SBA capabilities, technology and digital banking. It originated $155.1 million and purchased $40.5 million of loans during 2026, and expects SBA lending to generate additional commercial relationships and potential secondary-market fee income.
What to watch
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Emerging AI governance and conduct risk
The filing newly identifies AI-specific operational, data, regulatory and reputational risks. It states that errors, bias or false information in AI applications such as credit scoring and fraud detection could cause financial losses, compliance failures and customer-retention problems, while evolving regulation could increase costs or restrict offerings.
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Concentrated New Jersey real-estate exposure
The company is increasing exposure to commercial and real estate lending while 97.9% of its loan portfolio, approximately $885.7 million, was secured by real estate at June 30, 2026. The filing warns that downturns in local real estate or economic conditions could impair collateral values, increase non-performing loans and require higher credit-loss provisions.
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Rate and deposit repricing sensitivity
Interest-rate sensitivity remains material: an instantaneous 200-basis-point rate increase would reduce estimated economic value of equity by 12.12%, while one-year net interest income would decline 3.15%. The company also had $257.4 million, or 27.8% of deposits, maturing within one year, increasing refinancing and deposit-cost risk.
Management's outlook
The 10-K provides no formal numeric revenue or EPS guidance; annual outlook was deferred to the earnings press release or call.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.