Net interest income remains stagnant at $7.8 million as of 2025Q3, while the net interest margin has failed to exceed 0.7% over the last eight quarters.
| Net Interest Income | 30.76M | 29.58M | 29.37M | 13.69M | 11.9M | 10.77M |
| NII Growth % | 11.67% | 0.71% | 114.53% | 15.08% | 10.52% | - |
| Net Interest Margin % | 2.69% | 2.73% | 2.88% | 2.1% | 1.83% | 1.68% |
| Interest Income | 48.54M | 46.31M | 40.87M | 16.12M | 13.43M | 13.18M |
| Interest Expense | 17.78M | 16.73M | 11.49M | 2.43M | 1.53M | 2.42M |
| Loan Loss Provision | 409K | 133K | 4.07M | 0 | 0 | 0 |
| Non-Interest Income | 2.92M | 3.73M | -2.49M | 1.26M | 1.35M | 1.21M |
| Non-Interest Income % | 5.67% | 7.46% | -6.49% | 7.28% | 9.14% | 8.42% |
| Total Revenue | 51.45M | 50.05M | 38.37M | 17.38M | 14.78M | 14.39M |
| Revenue Growth % | 92.59% | 30.42% | 120.74% | 17.59% | 2.72% | - |
| Non-Interest Expense | 28.19M | 27.05M | 34.58M | 13.15M | 11.01M | 10.58M |
| Efficiency Ratio | 54.78% | 54.06% | 90.12% | 75.66% | 74.5% | 73.53% |
| Operating Income | 5.08M | 6.13M | -11.77M | 1.8M | 2.23M | 1.4M |
| Operating Margin % | 9.87% | 12.24% | -30.67% | 10.37% | 15.11% | 9.69% |
| Operating Income Growth % | - | 152.06% | -752.75% | -19.29% | 60.14% | - |
| Pretax Income | 5.58M | 6.13M | -11.77M | 1.8M | 2.23M | 1.4M |
| Pretax Margin % | 10.84% | 12.24% | -30.67% | 10.37% | 15.11% | 9.69% |
| Income Tax | 953K | 991K | -909K | 250K | 363K | 145K |
| Effective Tax Rate % | 17.09% | 16.17% | 7.72% | 13.87% | 16.25% | 10.39% |
| Net Income | 4.62M | 5.14M | -10.86M | 1.55M | 1.87M | 1.25M |
| Net Margin % | 8.99% | 10.26% | -28.3% | 8.93% | 12.66% | 8.69% |
| Net Income Growth % | 4421.5% | 147.29% | -799.29% | -17% | 49.68% | - |
| Net Income (Continuing) | 4.62M | 5.14M | -10.86M | 1.55M | 1.87M | 1.25M |
| EPS (Diluted) | 0.61 | 0.61 | -1.59 | 0.16 | 0.20 | 0.13 |
| EPS Growth % | 12886.96% | 138.36% | -1093.75% | -20% | 53.85% | - |
| EPS (Basic) | - | 0.61 | -1.59 | 0.16 | 0.20 | 0.13 |
| Diluted Shares Outstanding | 7.56M | 8.44M | 6.83M | 9.51M | 9.51M | 9.51M |
CRE concentration and NIM
According to the latest quarterly filings, SRBK's net interest income has remained largely flat at $7.8 million as of 2025Q3, reflecting a lack of meaningful growth in interest-earning assets despite the bank's recent transition from a mutual-form institution to a public entity.
The inability to expand net interest income suggests that the bank is struggling to deploy its post-conversion capital into higher-yielding assets effectively. Investors should monitor whether this stagnation stems from a deliberate conservative lending posture or an inability to compete for quality loan originations in the competitive New Jersey market.
As reported in financial statements, the bank's net interest margin has remained anchored at 0.7% for the past eight quarters, indicating that funding cost pressures are likely offsetting any potential yield improvements from the loan portfolio in the current interest rate environment.
A static NIM of 0.7% appears significantly lower than regional peers, suggesting that the bank's deposit base may be more sensitive to rate hikes than previously anticipated. This lack of margin expansion warrants further investigation into the bank's deposit beta and the composition of its interest-bearing liabilities.
Based on the provided financial data, SRBK's efficiency ratio has fluctuated significantly, reaching 57.6% in 2025Q3, which highlights the challenges of managing a brick-and-mortar cost structure while attempting to scale operations following the recent Regal Bank acquisition integration.
The volatility in the efficiency ratio suggests that the bank has yet to achieve meaningful operating leverage, as non-interest expenses appear to scale inconsistently with revenue. This may indicate that the bank is still absorbing the administrative and regulatory costs associated with its recent public conversion and expansion efforts.
As noted in the quarterly income statements, the bank reported zero provision expense in 2025Q3, a sharp contrast to the $238,000 provision recorded in 2024Q4, which suggests an inconsistent approach to building reserves against potential loan losses in the current economic cycle.
The absence of provision expense may artificially inflate short-term earnings, potentially masking underlying credit risks within the commercial real estate portfolio. Investors should monitor whether this lack of provisioning is sustainable or if it reflects a temporary pause in reserve building that could lead to future earnings volatility.
Quick answers to the most common questions about buying SRBK stock.
SR Bancorp, Inc. Common stock (SRBK) is profitable, generating $5.1M in net income for the fiscal year ending 2024 with a net profit margin of 10.3%.
SR Bancorp, Inc. Common stock (SRBK) reported an operating income of $6.1M, resulting in an operating profit margin of 12.2%. This margin reflects the operational efficiency of the business before interest and taxes.
SR Bancorp, Inc. Common stock (SRBK) generated $33.2M in gross profit for the year, representing a gross profit margin of 66.3%. This demonstrates the company's core pricing power and production efficiency.