SR Bancorp, Inc. (NASDAQ: SRBK)

SR Bancorp, Inc. is a Maryland chartered company and the holding company for Somerset Regal Bank. Its primary business activity is owning the outstanding common stock of Somerset Regal Bank, which provides banking services through 14 full service branches located in Essex, Hunterdon, Hudson, Livingston, Middlesex, Morris, Somerset and Union counties in northern and central New Jersey. The bank offers a full suite of deposit products including checking, savings, money market accounts and certificates of deposit, as well as a variety of loan products such as residential mortgages, commercial real estate loans, multi family loans, commercial and industrial loans and consumer loans. Somerset Regal Bank was formed through the combination of Somerset Bank and Regal Bank on September 19, 2023, and later acquired Regal Bancorp, Inc. and merged its subsidiary bank into the combined entity. This history gives the bank a deep roots in the community, with some branches tracing their origins back to 1887.

SR Bancorp generates revenue through the banking operations of its subsidiary, Somerset Regal Bank. The bank earns interest income on its loan portfolio, which at June 30, 2025 consisted of residential mortgages representing 53.4% of total loans, commercial real estate loans at 16.0%, multi family loans at 27.5%, commercial and industrial loans at 1.5% and consumer loans at 1.6%. In addition to interest, the bank collects fees on deposit accounts, charges for services such as wire transfers and ATM usage, and earns income from its investment securities portfolio, which includes holdings in U. S. government sponsored enterprise securities and subordinated debentures. These revenues are distributed to the holding company as dividends, providing SR Bancorp with its primary source of income.

SR Bancorp operates in a highly competitive banking market in northern and central New Jersey. Its main competitors include large national banks, regional banking organizations, savings institutions, credit unions, and non depository lenders such as mortgage companies and fintech firms. Despite being smaller than many of these rivals, the company benefits from a strong local presence, deep community relationships, and the ability to make credit decisions quickly at the regional level. In Somerset County, the bank held $364.6 million in deposits as of June 30, 2025, giving it a 2.1% market share and ranking it as the ninth largest among twenty financial institutions in the county. The recent merger with Regal Bank expanded the bank’s footprint into Essex, Morris and Union Counties and added complementary lending expertise in both commercial and residential real estate, enhancing its ability to serve a broader range of customers.

The bank’s customers consist primarily of individuals, households, small to medium sized businesses, and local municipal entities within its service area. It maintains deposit relationships with a variety of towns and cities, holding approximately $31.8 million in municipal accounts as of June 30, 2025. Retail customers include individuals seeking checking and savings accounts, mortgages, home equity loans and personal loans, while commercial borrowers range from small proprietors to mid size firms needing working capital, equipment financing and commercial real estate loans. The bank also offers online and mobile banking services, allowing customers to manage accounts, pay bills and apply for credit remotely. No specific customer names are disclosed in the filing.