Business
SR BANCORP, INC. ANNOUNCES QUARTERLY AND ANNUAL FINANCIAL RESULTS
BOUND BROOK, N.J., July 30, 2024 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"),
About this update from Sr Bancorp, Inc.
[{"type":"text","content":"BOUND BROOK, N.J., July 30, 2024 /PRNewswire/ -- SR Bancorp, Inc. (the \"Company\") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the \"Bank\"), announced a net loss of $10.9 million for the year ended June 30, 2024 (unaudited), compared to net income of $1.6 million for the year ended June 30, 2023. One-time expenses incurred during the year included $4.4 million of merger-related expenses and a $4.2 million provision for credit losses, each of which was related to the acquisition of Regal Bancorp (\"Regal Bancorp\"), which is described in greater detail below, as well as a $5.4 million charitable contribution to establish the Somerset Regal Charitable Foundation. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of a balance sheet repositioning strategy whereby the proceeds of $30.9 million were redeployed into residential and commercial real estate loans. It was expected that the loss would be recouped within approximately 3.27 years and that the loans would have a positive spread differential over the securities that were sold, resulting in $1.4 million of additional pre-tax earnings on an annualized basis. Excluding the aforementioned one-time expenses, offset by $4.1 million of net accretion income related to fair value adjustments, net income for the year ended June 30, 2024 would have been $1.0 million.\n\n \n \n \n \n \n \n\n \nTotal assets were $1.02 billion, an increase of $369.4 million, or 56.7%, from $651.5 million at June 30, 2023. Net loans were $731.9 million, an increase of $369.6 million, or 102.0%, from $362.3 million at June 30, 2023. Total deposits were $807.1 million, an increase of $303.2 million, or 60.2%, from $503.9 million at June 30, 2023. The increases were primarily due to the acquisition of Regal Bancorp on September 19, 2023.\nFor the three months ended June 30, 2024 (unaudited), the Company reported a net loss of $3.0 million, compared to net income of $1.1 million for the three months ended March 31, 2024 (unaudited). Excluding $1.2 million of net accretion income related to fair value adjustments, offset by a $4.4 million loss on the sale of securities and an additional $260,000 of costs related to the acquisition of Regal Bancorp, net loss would have been $499,000 for the three months ende...