Capital return programs are aggressive, with $5.0 million in 2025Q3 buybacks frequently exceeding the quarterly net income of $886,000, necessitating consistent liquidation of the investment securities portfolio.
| Cash from Operations | 8.45M | 4.67M | -1.74M | 2.32M | 1.03M | 2.39M |
| Operating CF Growth % | 230.08% | 368.26% | -174.96% | 124.15% | -56.62% | - |
| Net Income | 4.62M | 5.14M | -10.86M | 1.55M | 1.87M | 1.25M |
| Depreciation & Amortization | 2.14M | 2.34M | 2.17M | 394K | 395K | 452K |
| Deferred Taxes | -235K | -298K | -1.4M | -366K | 264K | -6K |
| Other Non-Cash Items | -211K | -4.18M | 7.31M | 591K | 507K | 876K |
| Working Capital Changes | 87K | 558K | 515K | 148K | -2M | -186K |
| Cash from Investing | -68.78M | -50.48M | 11.75M | 2.69M | -34.9M | -71.95M |
| Purchase of Investments | -6M | 0 | 0 | -894K | -54.79M | -154.83M |
| Sale/Maturity of Investments | 9.51M | 14M | 64.19M | 32.39M | 48.47M | 63.76M |
| Net Investment Activity | 3.51M | 14M | 64.19M | 31.5M | -6.32M | -91.07M |
| Acquisitions | 0 | 0 | -14.24M | 0 | 0 | 0 |
| Other Investing | -71.25M | -64.05M | -37.09M | -28.29M | -28.26M | 19.36M |
| Cash from Financing | 61.79M | 57.69M | -6.55M | 2.09M | 12.46M | 28.65M |
| Dividends Paid | -1.67M | -444K | 0 | 0 | 0 | 0 |
| Share Repurchases | -16.05M | -11.32M | 0 | 0 | 0 | 0 |
| Stock Issued | 237K | 0 | 79.45M | 0 | 0 | 0 |
| Net Stock Activity | -15.82M | -11.32M | 79.45M | 0 | 0 | 0 |
| Debt Issuance (Net) | 1000K | 1000K | -1000K | 1000K | 1000K | 0 |
| Other Financing | 72.43M | 39.46M | -66M | -17.91M | 382K | 28.65M |
| Net Change in Cash | 1.46M | 11.87M | 3.46M | 7.11M | -21.41M | -40.91M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 81.84M | 45.91M | 42.45M | 35.34M | 56.75M | 97.66M |
| Cash at End | 63.68M | 57.78M | 45.91M | 42.45M | 35.34M | 56.75M |
| Interest Paid | 15.59M | 15.47M | 9.58M | 2.43M | 1.53M | 2.42M |
| Income Taxes Paid | 100K | 0 | 475K | 0 | 370K | 100K |
| Free Cash Flow | 8.14M | 4.23M | -2.84M | 1.8M | 708K | 2.15M |
| FCF Growth % | 23.34% | 248.96% | -257.48% | 154.8% | -67.01% | - |
CRE concentration and NIM
According to recent SEC filings, SRBK has consistently returned capital to shareholders through buybacks, totaling $5.0 million in 2025Q3 alone, despite net income remaining modest at $886,000, which suggests a strategy prioritizing capital reduction over organic growth or balance sheet expansion in the current environment.
The bank's decision to execute buybacks while net income remains under pressure may indicate management's attempt to manage excess capital post-conversion. Investors should monitor whether this pace of capital return is sustainable without compromising the bank's ability to absorb potential credit losses in its concentrated CRE portfolio.
As reported in financial statements, SRBK has been a consistent net seller of investment securities, with $6.0 million in sales during 2025Q3, a trend that appears to be providing the necessary liquidity to fund ongoing share repurchases rather than reinvesting into higher-yielding assets.
The consistent liquidation of the investment portfolio suggests a strategic shift away from holding securities, likely to mitigate duration risk or to free up capital. This reliance on asset sales to fund capital returns warrants further investigation into the long-term impact on the bank's interest-earning asset base.
Based on SRBK's reported figures, the bank's ability to generate organic capital is currently constrained, as dividend payments and buybacks frequently exceed quarterly net income, which may indicate a reliance on existing capital buffers rather than current earnings to support shareholder return programs.
The disconnect between net income and cash outflows for capital returns suggests that the bank is in a capital-distribution phase following its conversion. This approach may limit the bank's flexibility to pursue inorganic growth opportunities if the current economic environment in New Jersey deteriorates.
As noted in the quarterly cash flow data, SRBK reported zero provision expense in 2025Q3, following a period of volatile provisioning, which suggests an inconsistent approach to reserve building that may not fully reflect the underlying credit risks within the bank's commercial real estate loan book.
The lack of consistent provisioning appears to contrast with the bank's high concentration in CRE, potentially masking the true cost of credit risk. Investors should monitor future periods to see if this lack of provisioning is a temporary anomaly or a structural shift in the bank's risk management philosophy.
Quick answers to the most common questions about buying SRBK stock.
SR Bancorp, Inc. Common stock (SRBK) generated $4.7M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
SR Bancorp, Inc. Common stock (SRBK) generated $4.2M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SR Bancorp, Inc. Common stock (SRBK) spent $0.4M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, SR Bancorp, Inc. Common stock (SRBK) returned $0.4M to shareholders via cash dividends and spent $11.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.