SR Bancorp, Inc. declared a quarterly cash dividend of $0.05 per share, to be paid on January 15 2026 to shareholders of record as of December 31 2025. The announcement follows the bank’s strong balance‑sheet profile, with total assets of $1.11 billion and deposits of $869.6 million as of September 30 2025, and a Tier 1 capital ratio of 15.50%, placing the bank well above regulatory adequacy thresholds.
The dividend signals confidence in the bank’s liquidity and earnings generation. A Tier 1 ratio above 15% indicates a robust capital buffer, while the $0.05 per share payout reflects the bank’s ability to return excess cash to shareholders without compromising its commercial‑lending strategy. The move also provides a modest yield—approximately 1.18% to 1.25% based on the annualized $0.20 dividend—making the stock attractive to income‑focused investors in a low‑interest‑rate environment.
SR Bancorp has a long history of quarterly dividends at $0.05 per share. The ex‑dividend date for the prior quarter was September 30 2025, with a payment date of October 15 2025. The annual dividend of $0.20 per share has remained consistent, underscoring the bank’s commitment to steady shareholder returns.
Financial performance in the most recent quarter shows mixed results: net income fell 49.3% year‑over‑year in Q3 2025, driven by lower non‑interest income and higher interest expense, while Q2 2025 saw a turnaround with net income of $2.2 million after a loss in the same quarter a year earlier, helped by life‑insurance proceeds. Despite the earnings dip, the bank’s liquidity and capital position remain strong enough to support the dividend payout.
Management highlighted the dividend as a reflection of the bank’s solid financial footing. Executive Chairman David Orbach said the bank is “pleased to be in a strong financial position giving us the ability to pay a cash dividend.” The announcement also coincides with a leadership transition: CEO William P. Taylor will retire effective January 1 2026, with Christopher Pribula slated to succeed him. The transition is expected to maintain continuity in strategy while positioning the bank for future growth.
The dividend declaration, coupled with the CEO transition, positions SR Bancorp to continue delivering value to shareholders while navigating a competitive regional banking landscape. The bank’s capital adequacy, liquidity, and steady dividend history provide a foundation for sustained shareholder returns amid evolving market conditions.
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