SR Bancorp Stock Price, News & Analysis

SR Bancorp, Inc. (NASDAQ: SRBK) is a financial holding company for Somerset Regal Bank, a full-service commercial bank based in New Jersey. According to company disclosures, Somerset Regal Bank is a New Jersey commercial bank headquartered in Bound Brook, New Jersey, operating branch locations across several New Jersey counties. SR Bancorp, Inc. is incorporated in Maryland and its common stock is listed on The Nasdaq Stock Market under the symbol SRBK.

Based on the company’s stated business purpose, SR Bancorp’s principal activity is to acquire deposits from individuals and businesses in the communities it serves and to use these deposits to fund loans. Public information indicates that Somerset Regal Bank focuses on commercial banking, with a balance sheet that includes loans, securities, deposits and borrowings, and that it reports interest income, interest expense, noninterest income and noninterest expense as key components of its financial performance.

Corporate structure and relationship with Somerset Regal Bank

SR Bancorp, Inc. is described in its filings and press releases as the holding company for Somerset Regal Bank. Somerset Regal Bank is identified as a New Jersey-chartered commercial bank headquartered in Bound Brook, New Jersey. The bank operates multiple branches in New Jersey counties, and its activities include originating residential mortgage and commercial loans, holding securities, and managing deposit relationships, as reflected in its reported interest income and deposit balances.

The company has discussed the role of its bank subsidiary in generating interest income from loans and securities and in managing interest-bearing and noninterest-bearing deposits. It also reports on provisions for credit losses, noninterest income such as service charges and fees, and noninterest expenses including salaries, employee benefits, occupancy, data processing and other operating costs.

Conversion and merger history

SR Bancorp, Inc. has disclosed that the conversion of Somerset Savings Bank, SLA from the mutual to stock form of organization and the related stock offering by SR Bancorp were completed on September 19, 2023. In connection with that transaction, SR Bancorp sold shares of common stock and contributed shares and cash to the Somerset Regal Charitable Foundation, Inc., a charitable foundation formed in connection with the conversion.

Following completion of the conversion and stock offering, Regal Bancorp merged with and into SR Bancorp, Inc., with SR Bancorp as the surviving entity. Immediately after that merger, Regal Bank, a New Jersey-chartered commercial bank and wholly owned subsidiary of Regal Bancorp, merged with and into Somerset Bank, which converted to a commercial bank charter and was renamed Somerset Regal Bank. Company disclosures state that this merger was completed on September 19, 2023.

Commercial banking activities

Public earnings releases for SR Bancorp describe a balance sheet and income statement typical of a commercial bank holding company. The company reports:

• Interest income from loans, securities and interest-bearing deposits at other banks.
• Interest expense on interest-bearing demand deposits, certificates of deposit and borrowings.
• Net interest income, net interest margin and net interest rate spread as key performance indicators.
• Provisions for credit losses based on loan portfolio characteristics, collateral evaluations, economic conditions and other risk factors.
• Noninterest income that includes service charges and fees and other income, as well as gains or losses on securities and life insurance proceeds.
• Noninterest expenses such as salaries and employee benefits, occupancy, data processing and other operating expenses.

The bank’s disclosures emphasize the use of quantitative models and qualitative factors to determine the allowance for credit losses and note that actual credit losses may differ from estimates as conditions change. The company also highlights the impact of loan growth, deposit mix, interest rate changes and competitive deposit pricing on its net interest income and margins.

Capital actions and shareholder returns

SR Bancorp, Inc. has announced recurring quarterly cash dividends on its common stock. Press releases and related Form 8-K filings state that the Board of Directors has declared cash quarterly dividends of $0.05 per share, with payment dates and record dates specified in those announcements. In each case, the company notes that the dividend reflects what it describes as a strong financial position that allows it to pay a cash dividend.

The company has also disclosed the authorization of a stock repurchase program. In a press release, SR Bancorp announced that it had authorized a stock repurchase program for up to a specified percentage of its outstanding shares of common stock, described as its second stock repurchase program since completing the mutual-to-stock conversion and related stock offering. The company states that shares may be repurchased in open market or private transactions, through block trades, or pursuant to a trading plan adopted in accordance with Rule 10b5-1, and that open market purchases will be made in accordance with Rule 10b-18 and other applicable requirements.

Governance and shareholder base

SR Bancorp, Inc. files a definitive proxy statement (DEF 14A) describing its annual meeting of stockholders, director elections and auditor ratification. The proxy statement notes that SR Bancorp is the holding company for Somerset Regal Bank and that the annual meeting is held in New Jersey. It explains voting procedures for stockholders of record, beneficial owners holding shares in “street name,” and participants in the Somerset Regal Bank 401(k) Savings and Investment Plan and the Somerset Regal Bank Employee Stock Ownership Plan (ESOP).

The proxy materials describe how shares held in the ESOP and 401(k) Plan are voted, the role of broker non-votes, and the requirements for a quorum and approval of proposals. SR Bancorp’s Articles of Incorporation are described as limiting voting rights for record holders who beneficially own more than a specified percentage of outstanding common stock, with shares held in excess of that limit not entitled to vote.

Management and leadership transitions

In an 8-K filing and related press release, SR Bancorp reported that its long-serving Chief Executive Officer announced his retirement as CEO of SR Bancorp and Somerset Regal Bank, effective January 1, 2026, while remaining a director of the company and Executive Chairman of the bank. The company also disclosed that the current President and Chief Operating Officer would be appointed President and Chief Executive Officer of both the company and the bank, and that a senior mortgage lending officer would be promoted to Executive Vice President and Chief Operating Officer.

The 8-K states that the departing CEO’s resignation was not related to any disagreement with the company or the bank on matters relating to operations, policies or practices. It also notes that the bank intends to enter into new or amended employment agreements with the affected executives to reflect these changes.

Regulatory reporting and risk disclosures

SR Bancorp, Inc. files current reports on Form 8-K to announce material events such as quarterly and annual financial results, dividend declarations, annual meeting voting results and management changes. The company’s earnings releases include detailed discussions of net income or loss, interest income and expense, noninterest income and expense, provisions for credit losses, and changes in assets, loans, deposits, borrowings and equity.

The company’s public disclosures also contain forward-looking statements and associated cautionary language. These statements identify potential factors that could cause actual results to differ from expectations, including competitive pressures, interest rate changes, economic conditions, real estate market values in the bank’s lending area, changes in loan and securities portfolio quality, liquidity and deposit composition, monetary and fiscal policy, cyber and operational risks, employee retention and regulatory or accounting changes. SR Bancorp notes that it does not undertake to update forward-looking statements except as required by law.

SRBK stock and investor information

SR Bancorp, Inc.’s common stock is registered under Section 12(b) of the Securities Exchange Act of 1934 and trades on The Nasdaq Stock Market under the symbol SRBK, as indicated in its 8-K cover pages. The company’s filings identify SR Bancorp, Inc. as a Maryland corporation with a principal office in Bound Brook, New Jersey.

Investors researching SRBK can review SR Bancorp’s SEC filings, including Forms 10-K, 10-Q, 8-K and proxy statements, for detailed information on its financial condition, results of operations, risk factors, corporate governance and executive compensation. Earnings releases and other public communications provide additional context on loan growth, deposit trends, funding strategies, capital actions and the impact of the Regal Bancorp merger and mutual-to-stock conversion on the company’s balance sheet and income statement.

Frequently asked questions about SR Bancorp, Inc.