Medway-based Service Bancorp, the holding company for Strata Bank, reported net income for the fourth quarter of $2 million, compared to a net loss of $20,000 for the same quarter a year ago, but still found itself more than $6 million in the red for the six-month period ended Dec. 31.

Strata recently signed an agreement and plan of merger under which the bank will re-mutualize and merge into Middlesex Savings Bank, headquartered in Natick.

Service Bancorp’s net loss for the six months ended Dec. 31 was $6.1 million, compared with a net loss of $244,000 for the same period in 2007.

The fiscal year-to-date loss was "primarily due to non-cash charges for other-than-temporary impairment (OTTI) on securities during the current periods," according to the company.

For the quarter ended Dec. 31, the most significant factor affecting the company’s operating results was the recognition of $2.5 million of tax benefits in connection with certain OTTI charges, including the merger plan, the company said.

Under terms of the agreement with Middlesex Savings, the public stockholders of Service Bancorp will receive $28.00 in cash in exchange for each share of common stock.