SRBKMEDIUM SIGNALFINANCIAL10-K

SRBK experienced a substantial increase in interest expense alongside reduced capital spending, reflecting rising funding costs in the current rate environment.

The meaningful rise in interest expense indicates pressure on net interest margins as the bank faces higher deposit costs and funding expenses. While the company maintained modest asset growth and improved its cash position, the reduced capital expenditures may signal more conservative investment spending or completion of prior infrastructure projects.

Comparing 2025-09-29 vs 2024-10-16View on EDGAR →
FINANCIAL ANALYSIS

SRBK's financial profile shows mixed signals with cash and equivalents growing modestly to $57.8 million while interest expense rose substantially to $2.4 million, reflecting the challenging rate environment for community banks. Capital expenditures declined significantly to $433,000, suggesting either reduced infrastructure investment needs or more conservative spending. The overall picture indicates a bank managing through higher funding costs while maintaining adequate liquidity and scaling back discretionary investments.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-60.7%
$1.1M→$433K

Capex reduced 60.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Interest Expense
P&L
+58.2%
$1.5M→$2.4M

Interest expense surged 58.2% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
+25.9%
$45.9M→$57.8M

Cash grew 25.9% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2025-09-29
PRIOR — 2024-10-16
ADDED
At June 30, 2025, SR Bancorp had total assets of $1.08 billion, deposits of $846.0 million and total stockholders' equity of $193.8 million.
Information on our website is not to be considered a part of this document.
Pharmaceutical, life sciences, financial services, technology and transportation and logistics companies are among the largest employment sectors in the counties served by Somerset Regal Bank.
Middlesex County is the most populous county with a total population of 890,000, while Hunterdon County is the least populous county with a total population of 132,000.
Based on June 30, 2025 deposit data, Somerset Regal Bank s $364.6 million of deposits provided for a 2.1% market share of bank and thrift deposits in Somerset County, which was the nineth largest market share out of 20 financial institutions in the market.
Competition We face significant competition for deposits and loans.
At June 30, 2025, residential mortgage loans comprised 53.4% of our total loan portfolio and commercial loans comprised 45.0%, which largely consisted of multi-family loans.
Owner Occupied Commercial Real Estate Other Commercial Real Estate Multi- Family Commercial and Industrial Residential Mortgage Consumer and Other Total (In thousands) Amounts due in: One year or less $ 54 $ 886 $ 3,460 $ 3,258 $ 204 $ 7,310 $ 15,172 After one through five years 860 5,554 23,193 4,505 5,515 781 40,408 After five through 15 years 17,464 29,320 77,491 2,253 76,195 4,265 206,988 More than 15 years 36,749 36,782 115,790 2,237 345,431 682 537,671 Total $ 55,127 $ 72,542 $ 219,934 $ 12,253 $ 427,345 $ 13,038 $ 800,239 3 Fixed Versus Adjustable-Rate Loans.
The following tables sets forth our fixed and adjustable-rate loans at June 30, 2025 that are contractually due after June 30, 2026.
Due After June 30, 2026 Fixed Adjustable Total (In thousands) Owner occupied commercial real estate loans $ $ 55,073 $ 55,073 Other commercial real estate loans 71,656 71,656 Multi-family loans 216,474 216,474 Commercial and industrial loans 8,995 8,995 Total commercial loans $ $ 352,198 $ 352,198 Residential mortgage loans 330,434 96,707 427,141 Consumer and other loans 3,096 2,632 5,728 Total loans $ 333,530 $ 451,537 $ 785,067 One- to Four Family-Residential Mortgage Loans .
REMOVED
At June 30, 2024, SR Bancorp had total assets of $1.02 billion, deposits of $807.1 million and total equity of $199.5 million.
However, as of June 30, 2023, the conversion had not been completed.
Accordingly, the financial and other information contained in this document at and for the year ended June 30, 2023 is for Somerset Savings Bank, SLA, unless indicated otherwise.
Information on our website should not be considered a part of this document.
Pharmaceutical, financial services, professional services and retail companies are among the largest employers in the counties served by Somerset Regal Bank.
Employment data shows that jobs in services and education/healthcare/social services accounted for the largest and second largest employment sectors, respectively, in the counties and in New Jersey.
Wholesale/retail trade was the third largest employment sector for the counties followed by manufacturing jobs in the counties of Hunterdon, Morris and Somerset.
Finance/insurance/real estate was the fourth largest employment sector for the counties of Essex, Middlesex and the State of New Jersey.
Transportation/utility jobs were the fourth largest employment sector for Union County.
Middlesex County is the most populous county with a total population of 861,000, while Hunterdon County is the least populous county with a total population of 130,000.
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