Executive Summary

Quarter ended December 31, 2024: Net income was $1.02M ($0.12 EPS) as funding costs continued to rise; net interest margin compressed 33 bps sequentially to 2.88% while efficiency remained elevated at 82.8% .
Credit quality was pristine (no non-performing loans, no charge-offs) and the allowance stood at 0.65% of loans, supporting a low-risk profile despite balance-sheet growth .
Balance sheet expanded: loans +$43.9M QoQ to $775.8M and deposits +$17.0M QoQ to $824.1M; growth was partly funded by $30.0M of new FHLB borrowing, increasing interest expense pressure .
No formal financial guidance was issued; subsequent event: the board initiated a $0.05 quarterly cash dividend (payable April 15, 2025), signaling confidence in capital and earnings trajectory .
Street consensus was not available via S&P Global at time of analysis; therefore, no beat/miss assessment can be made for EPS or revenue (estimates unavailable from S&P Global at the time of request).

What Went Well and What Went Wrong

What Went Well
- Zero NPLs and no charge-offs; ACL/loans of 0.65% with stable asset quality metrics, reducing downside credit risk .
- Loans grew 6.0% QoQ (+$43.9M) and deposits rose 2.1% QoQ (+$17.0M), supporting top-line interest income capacity over time .
- Noninterest expense fell 35.4% YoY (driven by lower salaries/benefits and data processing), partially offsetting NIM pressure and underscoring continued cost discipline .
- CEO on capital return (subsequent event): “We are pleased to be in a strong financial position giving us the ability to pay a cash dividend.” — William P. Taylor .
What Went Wrong
- Net interest margin fell to 2.88% (3.21% in prior quarter; 3.56% prior year) as deposit costs rose and asset yields moderated, squeezing spread (2.27% vs 2.70% prior quarter) .
- Net interest income decreased 19.7% YoY to $7.24M as the cost of interest-bearing deposits climbed (cost on interest-bearing deposits up to 1.75% from 0.69% YoY) .
- Reliance on wholesale funding increased (FHLB borrowings to $30.0M from $0 at June 30, 2024) to support loan growth, elevating funding costs and interest expense sensitivity .

Financial Results

P&L and Margins (oldest → newest)

Metric	Q4 FY2024 (Jun 30, 2024)	Q1 FY2025 (Sep 30, 2024)	Q4 2023 (Dec 31, 2023)	Q4 2024 (Dec 31, 2024)
Total Net Revenue = NII + Noninterest Income ($M)	$4.054	$8.395	$9.384	$7.866
Net Interest Income ($M)	$7.939	$7.594	$9.019	$7.239
Noninterest Income ($M)	$(3.885)	$0.801	$0.365	$0.627
Net Income ($M)	$(3.032)	$1.367	$1.607	$1.021
Diluted EPS ($)	$(0.34)	$0.16	$0.18	$0.12
Net Interest Margin (%)	3.22%	3.21%	3.56%	2.88%
Net Interest Rate Spread (%)	2.69%	2.70%	3.08%	2.27%
Efficiency Ratio (%)	162.78%	81.23%	79.67%	82.75%
Consensus EPS (S&P Global)	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)
Consensus Revenue (S&P Global)	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)

Notes: Consensus estimates were unavailable from S&P Global at the time of analysis, so no beat/miss assessment could be made.

Balance Sheet and Credit KPIs (oldest → newest)

Metric	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024
Total Assets ($B)	$1.021B	$1.053B	$1.065B
Net Loans ($M)	$731.9M	$767.7M	$775.8M
Total Deposits ($M)	$807.1M	$819.4M	$824.1M
Borrowings ($M)	$0.0M	$20.0M	$30.0M
Noninterest-Bearing Deposits ($M)	$108.0M	$114.3M	$95.0M
Uninsured Deposits ($M, % of total)	$109.7M (13.6%)	$137.6M (16.8%)	$128.3M (15.6%)
ACL / Loans (%)	0.71%	0.66%	0.65%
NPLs / Loans (%)	0.01%	0.00%	0.00%
Tangible Book Value/Share ($)	$18.02	$18.17	$18.45

Loan Growth Detail (current quarter)

Category	QoQ Change (Dec 31, 2024 vs Jun 30, 2024)
Residential Mortgages	+$11.5M
Total Commercial Loans	+$24.0M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend (Quarterly)	First payment Apr 15, 2025	None	$0.05/share	Initiated
Financial Guidance (Revenue/NIM/OpEx/Tax)	FY/Quarter	Not provided	Not provided	Maintained “no formal guidance” stance

No explicit quantitative outlook was issued in the Q4 2024 materials; the company continues to discuss drivers qualitatively (deposit competition, asset mix, securities repositioning) without formal targets .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in our document set; we searched for “earnings-call-transcript” in the quarter window and found none. Themes below reflect disclosures across the prior two earnings releases and the current quarter.

Topic	Previous Mentions (Q4 FY2024 – Jun 30, 2024)	Previous Mentions (Q1 FY2025 – Sep 30, 2024)	Current Period (Q4 2024 – Dec 31, 2024)	Trend
Deposit pricing & competition	Raised rates to remain competitive; pressure on funding costs	Cost of deposits up; demand deposit cost to 1.36% and CDs to 3.99% YoY	Cost on interest-bearing deposits 1.75% YoY; continued competitive pressure	Worsening cost pressure
Balance-sheet repositioning	$35.4M securities sold at $4.4M loss to redeploy into loans	Lower securities balances; redeployment continues	Referenced the FY2024 repositioning; securities balances continue to run off	Executing plan; supports NII over time
Credit quality	NPLs ~0.01% of assets; no charge-offs	NPLs 0%; no charge-offs; recovery for credit losses	NPLs 0%; no charge-offs; small provision ($12k)	Improving/strong
Loan growth mix	Loans +$369.6M YoY post-merger	Growth in multifamily (+$25.6M) and residential (+$11.5M) QoQ	Growth in residential (+$11.5M) and commercial (+$24.0M) QoQ	Broad-based growth
Branch optimization	Closed Summit and Somerville branches	Closed Livingston branch	No new closures disclosed	Cost discipline sustained
Liquidity/borrowings	No borrowings at 6/30/24	Added $20.0M FHLB to fund loans	Borrowings at $30.0M to fund growth	Higher wholesale funding
Capital return	—	Repurchased 66,288 shares	Repurchased 347,057 shares; later initiated dividend	Increasing capital return

Management Commentary

Balance-sheet growth and funding: The company highlighted sequential loan growth (+$43.9M) and deposit growth (+$17.0M), funded in part by a $30.0M FHLB borrowing to support loan originations .
Deposit competition: Management noted increased costs on interest-bearing deposits due to competitive pricing in the market (cost on interest-bearing deposits 1.75% vs. 0.69% YoY) .
Credit: “No non-performing loans” and no charge-offs for the quarter; allowance at 0.65% of loans underpins conservative risk posture .
Capital return (subsequent event quote): “We are pleased to be in a strong financial position giving us the ability to pay a cash dividend.” — William P. Taylor, CEO .

Q&A Highlights

No Q4 2024 earnings call transcript was available; therefore, there are no Q&A takeaways or guidance clarifications to report for this quarter based on our document set (we found no “earnings-call-transcript” for SRBK in the relevant period).

Estimates Context

Consensus EPS and revenue estimates were unavailable from S&P Global at the time of analysis (S&P Global data could not be retrieved). As a result, we cannot assess beats/misses versus Street for Q4 2024.
Given the sequential NIM compression (3.21% → 2.88%) and higher deposit/funding costs, Street models may need to temper near-term NIM and NII outlooks; conversely, pristine credit metrics and ongoing loan growth could support revenue run-rate stabilization as securities runoff and loan redeployment continue .

Key Takeaways for Investors

Funding cost pressure is the central headwind: NIM dropped to 2.88% and spread to 2.27% as deposit costs rose and asset yields moderated; watch deposit mix shifts and promotional pricing intensity for margin inflection .
Asset quality remains a differentiator: zero NPLs and no charge-offs with a 0.65% ACL support earnings durability should macro conditions soften .
Growth is intact: loans +$43.9M and deposits +$17.0M QoQ; sustained loan demand and balance-sheet repricing/redeployment should aid NII over time as rate dynamics normalize .
Wholesale funding usage increased: $30.0M FHLB advances highlight the trade-off between growth and funding costs; trajectory of borrowings will be an important driver of future margins .
Cost discipline improving ex one-offs: YoY noninterest expense down 35% and efficiency normalized versus the June quarter; continued branch optimization provides further levers .
Capital return ramps: buybacks in the quarter and a new $0.05 dividend post-quarter underscore capital strength and management’s confidence in earnings power .
Near-term trading setup: absent consensus visibility, stock is likely to trade on margin trajectory (deposit beta path), credit resilience, and capital return cadence; monitoring deposit cost inflection and securities runoff redeployment are key catalysts.

Sources: Q4 2024 8‑K earnings release and exhibits; prior two quarters’ earnings materials; and subsequent dividend press release .

SR Bancorp, Inc. (SRBK)·Q4 2024 Earnings Summary