SR Bancorp earnings increased 54.1% year over year to $1.1 million for the three months ended September 30, 2026, as higher interest income outweighed rising interest expenses. The company announced the results on October 26, reporting basic earnings per share of $0.15.
Key Takeaways
- Net interest income increased 9.3% to $8.3 million.
- Loans and deposits expanded from their June 30 balances.
- The quarter included a $177,000 provision for credit losses.
SR Bancorp earnings benefit from larger earning balances
Quarterly net income rose from $693,000 in the corresponding 2025 period. Management attributed the improvement to a $99.2 million increase in the average balance of interest-earning assets and a 21-basis-point increase in yield.
Interest income increased 14.8% to $13.7 million. That figure represents interest income, rather than total revenue after funding costs. Interest expenses rose 24.3%, leaving net interest income—the difference between interest earned and interest paid—at $8.3 million.
The faster percentage increase in interest expenses shows that funding costs remained a constraint, even as the larger earning-asset base supported income growth. The $177,000 provision for credit losses was a separate charge against quarterly earnings.
| Item | Details |
|---|---|
| Total assets | $1.22 billion at September 30, 2026; $1.19 billion at June 30, 2026. |
| Net loans | $947.4 million at September 30, 2026; $901.2 million at June 30, 2026. |
| Total deposits | $979.2 million at September 30, 2026; $926.4 million at June 30, 2026. |
Loans and deposits grow from June balances
Net loans increased 5.1% to $947.4 million at September 30, compared with $901.2 million at June 30. Deposits also grew, while total assets reached $1.22 billion. These are quarter-end balance-sheet comparisons, distinct from the year-over-year comparison used for net income.
SR Bancorp is the holding company for Somerset Regal Bank, which serves individuals and businesses across central and northern New Jersey. Its activities include gathering deposits and financing residential mortgages, commercial real estate and consumer credit.
Alongside its lending business, the company’s fiscal 2026 annual filing describes its reliance on third-party service providers for customer accounts, electronic banking and financial reporting. That disclosure provides operating-risk context; it does not establish the September quarter’s financial results.
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