SR Bancorp, Inc.

SR Bancorp, Inc.

Overview

• Maryland-chartered bank holding company and parent of Somerset Regal Bank.
• Primary business: ownership of the outstanding common stock of Somerset Regal Bank. The holding company uses the Bank’s premises and assets under an expense allocation arrangement.
• Somerset Regal Bank is a New Jersey-chartered commercial bank (state nonmember) regulated by the New Jersey Department of Banking and Insurance (NJDBI) and the FDIC.
• Stock and ownership actions:
  • Completed mutual-to-stock conversion and related stock offering on September 19, 2023.
  • SR Bancorp sold 9,055,172 shares at $10.00 per share; 760,634 shares were sold to Somerset Regal Bank’s Employee Stock Ownership Plan.
  • SR Bancorp contributed 452,758 shares and $905,517 in cash to the Somerset Regal Charitable Foundation, Inc.
  • Following the transaction, 9,507,930 SR Bancorp shares were outstanding.
  • On September 19, 2023, SR Bancorp acquired Regal Bancorp, Inc.; Regal Bank merged with Somerset Savings Bank to form Somerset Regal Bank.
• Website: www.somersetregalbank.com

Corporate and regulatory structure

• SR Bancorp is the parent holding company; Somerset Regal Bank is the sole bank subsidiary.
• Somerset Regal Bank subsidiaries: RB Properties, LLC; Somerset Investment Company; Somerset Consumer Service Corporation (inactive).
• Regulatory and reporting:
  • Bank regulated by NJDBI and the FDIC.
  • SR Bancorp regulated by the Federal Reserve as a bank holding company and subject to SEC reporting requirements as a public company.
  • SR Bancorp has not elected financial holding company status.
  • The Bank operates under capital standards, risk-based capital requirements, and the Community Bank Leverage Ratio framework (opted into this framework).
• Capital and status (as of 6/30/2026):
  • The Bank exceeded all capital requirements and is classified as well capitalized.
  • Emerging growth company and smaller reporting company status under SEC rules.

Financial and operating snapshot (as of 6/30/2026)

• Total assets: $1.19 billion
• Deposits: $926.4 million
• Stockholders’ equity: $181.8 million
• Staffing:
  • 115 full-time employees
  • 1 part-time employee
  • No union representation
• Branch network (14 locations in New Jersey):
  • Main office: Bound Brook (owned; 15,000 sq ft)
  • Branches: Somerville, Raritan, Middlesex, Whitehouse Station, Flemington, Manville, Livingston (leased), Roseland (leased), Florham Park (leased), Millburn (leased), West Orange (leased), Springfield (leased), Somerset (leased)
• Market presence:
  • Operations in Essex, Hunterdon, Middlesex, Morris, Somerset, and Union counties in New Jersey.
  • Headquarters and largest branch presence in Somerset County.
  • FDIC market share in Somerset County: $305.5 million in deposits and 3.61% market share (8th largest among 25 institutions) as of 6/30/2026.

Loan portfolio and credit quality

• Total loans (gross): $904.5 million
  • Residential mortgage loans: $475.9 million (52.6% of loans)
  • Commercial loans: $413.3 million (45.69%)
    • Owner-occupied commercial real estate: $48.9 million
    • Other commercial real estate: $92.7 million
    • Multi-family loans: $252.9 million
    • Commercial and industrial loans: $18.8 million
  • Consumer and other loans: $15.3 million (1.69%)
• Delinquencies (as of 6/30/2026):
  • 90 days or more past due: $1.6 million
  • 30–59 days past due: $0.6 million
  • 60–89 days past due: $0
  • Accruing past due: $0
  • Current: $902.3 million
• Non-performing assets: none as of 6/30/2026 (and 6/30/2025)
• Classified assets and special mention: none as of 6/30/2026 (and 6/30/2025)
• Allowance for credit losses (ACL):
  • ACL balance: $5.94 million (as of 6/30/2026)
  • Beginning balance: $5.362 million
  • Provisions (credit) for the year: $575 thousand
  • Charge-offs: none
  • Recoveries: $1 thousand
  • Ending balance: $5.938 million
  • ACL as a percentage of total loans: 0.65%
  • ACL allocation (as of 6/30/2026):
    • Residential mortgage: $2.975 million (50.10% of ACL)
    • Multi-family: $1.739 million (29.29%)
    • Owner-occupied CRE: $0.481 million (8.10%)
    • Other CRE: $0.186 million (3.13%)
    • C&I: $0.206 million (3.47%)
    • Consumer and other: $0.351 million (5.91%)

Investment securities and liquidity

• Held-to-maturity securities:
  • Total cost: $131.154 million; fair value: $113.590 million
  • Weighted average yield: 1.99%
  • Maturity distribution (cost basis):
    • After one year through five years: $0.2 million
    • After five years through ten years: $11.0 million
  • Mortgage-backed securities and CMOs:
    • FNMA/FHLMC: $118.136 million cost; $100.820 million fair value; 1.64% yield
    • GNMA: $0.176 million cost; $0.178 million fair value; 5.62% yield
    • CMOs: $1.642 million cost; $1.553 million fair value; 2.50% yield
• Other investments:
  • Restricted equity securities: $4.2 million (including $4.1 million in Federal Home Loan Bank of New York stock)
• Funding sources:
  • Deposits are the primary funding source.
  • Uninsured deposits: $191.6 million; uninsured CDs: $30.4 million (as of 6/30/2026)
• Borrowings:
  • FHLB New York borrowings: $65.0 million (6/30/2026); $30.0 million (6/30/2025)
  • Availability: up to $135.0 million of additional FHLB advances based on collateral
  • No outstanding Federal Reserve Bank of New York borrowings (as of both dates)

Funding and deposits

• Deposit mix (as of 6/30/2026):
  • Non-interest-bearing demand deposits: $128.2 million (13.83%)
  • Interest-bearing deposits: $389.9 million (42.09%), average rate 1.60%
  • Savings and club accounts: $128.7 million (13.89%), average rate 0.07%
  • Time deposits: $279.7 million (30.19%), average rate 3.35%
  • Total deposits: $926.4 million
• Uninsured CD maturity distribution (total $30.361 million):
  • Three months or less: $7.477 million
  • Three to six months: $7.409 million
  • Six to twelve months: $12.795 million
  • More than twelve months: $2.680 million

Lending practices and operations

• Loan mix includes residential, commercial real estate, multi-family, C&I, and consumer loans.
• The 2023 merger expanded commercial lending capabilities and increased CRE and multi-family exposure.
• Origination sources: existing customers, broker referrals, walk-ins, purchases from correspondent banks, advertising, and referrals.
• Purchased loans and servicing rights: purchased $40.5 million (2026) and $41.2 million (2025) from mortgage brokers; servicing rights acquired with these loans.
• Loan approval process: delegated to committees with Board approval required for larger commitments.
• One-borrower exposure policy: generally 15% of stated capital and reserves; Board policy limits include a $15.0 million loan to one borrower and related borrowers up to $20.0 million.
• Delinquency handling: 15-day past-due notice; loans 90 days or more delinquent are placed on non-accrual; recovery and forbearance practices in place.

Key historical facts

• Completed mutual-to-stock conversion, stock offering, and the Regal Bancorp, Inc. merger in 2023, which expanded geographic reach and diversified the loan portfolio toward commercial/CRE and multi-family lending.
• SR Bancorp’s stock is SEC-registered; the company qualifies as an emerging growth company and a smaller reporting company under SEC rules.

If you would like this reorganized into a section-by-section extract or charts (loan mix, deposit mix, capital ratios), I can prepare those from the figures above.