Executive Summary
In Q4 2023, SR Bancorp Inc (NASDAQ: SRBK) reported a revenue of $7,506,000, marking a year-over-year increase of 61.14%, although it saw a quarter-over-quarter decline of 38.28%. The bank has faced significant challenges, culminating in a net loss of $3,032,000 and an eye-watering net income decrease of 385.23% compared to the previous quarter. Despite the unfavorable net income outcome, the company has demonstrated operational resilience through strong gross profit margins. Management identified key operational adjustments and strategic initiatives aimed at navigating the current economic environment, including increased emphasis on loan products and cost management practices that could stabilize performance moving forward.
Key Performance Indicators
QoQ: -38.28% | YoY:61.14%
QoQ: -38.28% | YoY:61.14%
QoQ: -385.23% | YoY:71.12%
QoQ: 858.33% | YoY:204.55%
Key Insights
**Revenue Performance**: Overall revenue for Q4 stood at $7.51 million, with YoY growth of 61.14%, reflecting recovery from previous downturns but showing a QoQ decline of 38.28%.
**Profitability Analysis**: Despite the revenue increase, SR Bancorp's net income reported a significant loss of $3.03 million for the quarter, equating to an EPS of $1.15. The loss signifies a steep drop compared to net income in the previous quarter and reflects ongoing operational challenges.
**Balance Sheet ...
Financial Highlights
Revenue Performance: Overall revenue for Q4 stood at $7.51 million, with YoY growth of 61.14%, reflecting recovery from previous downturns but showing a QoQ decline of 38.28%.
Profitability Analysis: Despite the revenue increase, SR Bancorp's net income reported a significant loss of $3.03 million for the quarter, equating to an EPS of $1.15. The loss signifies a steep drop compared to net income in the previous quarter and reflects ongoing operational challenges.
Balance Sheet Health: The total assets reported at $1.02 billion outstripped total liabilities of $821.36 million, resulting in a healthy equity position of $199.48 million—highlighting overall financial stability.
Cash Flow Insights: Operating cash flow of $4.67 million illustrates the bank's capacity to generate cash from core business activities, albeit with net cash used in financing activities amounting to $34.70 million, underlining reliance on external financing.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.51M |
61.14% |
-38.28% |
| Gross Profit |
7.51M |
61.14% |
-38.28% |
| Net Income |
-3.03M |
71.12% |
-385.23% |
| EPS |
1.15 |
204.55% |
858.33% |
Key Financial Ratios
operatingProfitMargin
65.6%
Management Commentary
Operational Strategy: Management emphasized, 'We are focusing on optimizing our loan offerings to enhance profitability and returns.' This aligns with our goals to better serve small business customers across New Jersey.
Financial Stability: Commenting on the cash position, the CFO stated, 'With $45.91 million in cash and short-term investments, we are well-positioned to manage our immediate obligations and continue to grow our banking franchise.'
"We are focusing on optimizing our loan offerings to enhance profitability and returns."
— CEO
"With $45.91 million in cash and short-term investments, we are well-positioned to manage our immediate obligations and continue to grow our banking franchise."
— CFO
Forward Guidance
Management underscored a cautious but optimistic outlook, highlighting strategic pivots designed to enhance cost efficiency and revenue generation. The focus will be on enhancing operational efficiencies and a commitment to maintaining liquidity, even as economic fluctuations present ongoing challenges. Key performance metrics to monitor include loan growth rates and net income recovery, as management anticipates gradual improvements in profitability in the upcoming quarters.