Key Highlights

● SR Bancorp reported total Assets of $1.19 billion and deposits of $926.4 million across 14 New Jersey branches.

● Somerset Savings Bank merged with Regal Bank on September 19, 2023 in a deal valued at approximately $69.5 million.

● Regal Bancorp shareholders received $23.00 in cash per share, with stockholders' Equity now at $181.8 million.

● Residential mortgages make up 52.6% of the $904.5 million Loan portfolio, which carries zero non-performing assets.

SR Bancorp (NASDAQ:SRBK), the Holding Company for Somerset Regal Bank, filed its first Annual Report since a 2023 bank merger, reporting total assets of $1.19 billion and deposits of $926.4 million across 14 branches in New Jersey. The 10-K covers the fiscal year ended June 30, 2026.

Post-Merger Scale

On September 19, 2023, Somerset Savings Bank merged with Regal Bank to form Somerset Regal Bank, with Regal Bancorp shareholders receiving $23.00 in cash for each share of Regal Bancorp common stock, a deal the filing values at approximately $69.5 million in total consideration. This 10-K is described as the company's first annual report reflecting a full picture of the combined institution's scale. As of June 30, 2026, SR Bancorp reported $181.8 million in stockholders' equity and a gross loan portfolio of $904.5 million, with zero Non-Performing Assets and an allowance for Credit losses of $5.938 million, equal to 0.65% of total loans.

Where the Bank Operates

Somerset Regal Bank, which traces its roots to 1887, operates across six New Jersey counties: Essex, Hunterdon, Middlesex, Morris, Somerset, and Union. The bank's largest single-county deposit base is in Somerset County, where it holds $305.5 million in deposits, good for an 8th-place ranking and a 3.61% Market Share among the 25 financial institutions competing there. The combination with Regal Bank specifically expanded the company's commercial lending capabilities and market presence in Essex, Morris, and Union counties. Community banks of this size typically compete for deposits and loans against both larger regional banks and other community institutions, and the market-share figures the company discloses for Somerset County give a sense of how fragmented competition remains even after the Merger added scale.

The Loan Book and Workforce

The bank's lending is concentrated in residential mortgages, which make up 52.6% of the loan portfolio, followed by Commercial Real Estate lending, split between 28% multi-family loans and 15.7% other commercial real estate, with commercial and industrial loans rounding out 2.1% of the book. SR Bancorp employed 115 full-time and one part-time employee as of the filing. As of September 21, 2026, the company had 7,931,396 shares of common stock outstanding.

Why the Merger Structure Matters

Bank holding company mergers like the Somerset-Regal combination typically require regulatory approval from banking supervisors in addition to Shareholder votes, given the heightened scrutiny applied to deposit-taking institutions. The all-cash consideration paid to Regal Bancorp shareholders, at $23.00 per share, meant that Regal's owners received a fixed cash payout rather than stock in the combined company, a structural choice that eliminates ongoing ownership dilution concerns for Somerset's existing shareholders but also means Regal shareholders did not participate in any subsequent appreciation of the combined bank.

What the Filing Does Not Say

The 10-K summary reviewed does not disclose SR Bancorp's Net Income for fiscal 2026, its net interest margin, or specific asset quality trends beyond the zero non-performing assets figure and the loan-loss allowance ratio. It also does not detail integration costs associated with the 2023 merger or provide forward guidance on branch expansion or additional acquisitions.

Establishing a Post-Merger Performance Baseline

As SR Bancorp's first full annual report following the 2023 merger, this 10-K sets a baseline for the combined bank's scale; investors should watch subsequent quarterly filings for trends in the $904.5 million loan portfolio's credit quality, given the currently reported zero level of non-performing assets, and for any commentary on further expansion within its six-county New Jersey footprint.