SR Bancorp Reports 54.1% Quarterly Net Income Growth to $1.1 Million

What happened

SR Bancorp reported net income of $1.1 million, or $0.15 per share, for the quarter ended September 30, 2026, up 54.1% from $693,000 a year earlier. Net interest income rose 9.3% to $8.3 million.

Confirmed

Global impact / market context

Higher net income and net interest income, which is the profit from lending minus deposit costs, suggest the bank is earning more from its core business, giving it more cash available to support loan growth or absorb credit losses.

Analyst inference

Loans grew 5.1% and deposits 5.7%, including $50.0 million of brokered certificates of deposit, which are deposits arranged through third parties. Borrowings fell, meaning the bank relied less on borrowed money.

Analyst inference

What to watch

1. The provision for credit losses, which is money set aside for loans that may not be repaid, was $177,000, compared with $171,000 a year earlier. Confirmed
2. Watch whether deposit growth continues without heavy use of brokered certificates of deposit, which can be a costlier and less stable funding source than local customer deposits. Proposed
3. Interest expense rose 24.3%, faster than interest income at 14.8%, so funding costs could pressure profit per sale if deposit competition continues. Analyst inference

Evidence

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