SRBK

BOUND BROOK, N.J., July 28, 2026 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $940,000, or $0.13 per basic share and diluted share, for the three months ended June 30, 2026 compared to net income of $2.2 million, or $0.28 per basic share and $0.27 per diluted share, for the three months ended June 30, 2025. Excluding $102,000 of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023, net income would have been $867,000 for the three months ended June 30, 2026. Excluding $1.5 million of gains from life insurance proceeds and $428,000 of net accretion income related to fair value adjustments, net income would have been $412,000 for the three months ended June 30, 2025. See "Non-GAAP Financial Information" contained herein for additional information. The Company reported net income of $3.4 million, or $0.45 per basic and $0.44 per diluted share, for the year ended June 30, 2026, compared to net income of $5.1 million for the year ended June 30, 2025. Excluding $749,000 of net accretion income related to fair value adjustments, net income would have been $2.8 million for the year ended June 30, 2026. Excluding $1.5 million of gains from life insurance proceeds and $2.8 million of net accretion income related to fair value adjustments, net income would have been $1.6 million for the year ended June 30, 2025. Total assets were $1.19 billion at June 30, 2026, an increase of $105.0 million, or 9.7%, from $1.08 billion at June 30, 2025. Net loans were $901.2 million at June 30, 2026, an increase of $104.0 million, or 13.0%, from $797.2 million at June 30, 2025. Total deposits were $926.4 million at June 30, 2026, an increase of $80.4 million, or 9.5%, from $846.0 million at June 30, 2025. The increase in loans was funded primarily by the increase in deposits and $35.0 million of additional borrowings. Comparison of Operating Results for the Three Months Ended June 30, 2026 and 2025 General. Net income decreased $1.3 million, to $940,000, for the three months ended June 30, 2026, compared to net income of $2.2 million for the three months ended June 30, 2025. Net income for the three months ended June 30, 2026 included $102,000 of net accretion income related to fair value adjustments. Net income for the three months ended June 30, 2025 included $1.5 million of gains from life insurance proceeds and $428,000 of net accretion income related to fair value adjustments. Interest Income. Interest income increased $1.2 million, or 9.8%, to $12.9 million for the three months ended June 30, 2026 from $11.7 million for the three months ended June 30, 2025. The increase resulted from a $1.3 million, or 12.8%, increase in interest income on loans, partially offset by a $229,000, or 37.1%, decrease in interest income on interest bearing deposits at other banks. The increase in the interest income on loans was due to a $88.6 million increase in the average balance of loans from $789.0 million for the three months ended June 30, 2025 to $877.6 million for the three months ended June 30, 2026 and also due to an eight basis point increase in the yield on loans. The decrease in interest income on interest bearing deposits with other banks was due to a $52.5 million decrease in the average balance as such funds were used to fund loan originations. Interest Expense. Interest expense increased $573,000, or 13.5%, to $4.8 million for the three months ended June 30, 2026 from $4.3 million for the three months ended June 30, 2025, due to a $509,000 increase in interest expense on money market accounts and a $127,000 increase in interest expense on borrowings, partially offset by a decrease in interest expense on certificates of deposit of $60,000, resulting from a 24 basis point decrease in the average rate. The increase in interest expense on money market accounts was due to an increase of $58.9 million, or 18.4%, in the average balance and an increase of 25 basis points in the average rate to 2.08% for the three months ended June 30, 2026 from 1.82% for the three months ended June 30, 2025 as the Company raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. Interest on borrowings increased $127,000, or 37.7%, due to $35.0 million of additional borrowings during the period, offset by a 94 basis point decrease in the average cost. Net Interest Income. Net interest income increased $579,000, or 7.8%, to $8.0 million for the three months ended June 30, 2026 from $7.5 million for the three months ended June 30, 2025. Net interest rate spread increased 26 basis points to 2.59% for the three months ended June 30, 2026 from 2.33% for the three months ended June 30, 2025. Net interest margin increased 15 basis points to 3.05% for the three months ended June 30, 2026 from 2.90% for the three months ended June 30, 2025. Net interest-earning assets decreased $50.8 million, or 19.4%, to $211.0 million for the three months ended June 30, 2026 from $261.8 million for the three months ended June 30, 2025. The increase in the Company's net interest rate spread and net interest margin were primarily a result of the yield on interest-earning assets increasing at a faster rate than the cost of interest-bearing liabilities. Provision for Credit Losses. The Company establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb estimated expected credit losses attributable to loans at the balance sheet date. In determining the level of the allowance for credit losses, the Company considers, among other things, past and current loss experience, evaluations of real estate collateral, economic conditions, the amount and type of lending, adverse situations that may affect a borrower's ability to repay a loan and the levels of delinquent, classified and criticized loans. The amount of the allowance is based on estimates, and the ultimate losses may vary from such estimates as more information becomes available or conditions change. The Company assesses the allowance for credit losses and records provisions for credit losses on a quarterly basis. The Company recorded a provision for credit losses of $271,000 during the three months ended June 30, 2026 reflecting loan growth during the period compared to a provision for credit losses of $238,000 for the three months ended June 30, 2025. The Company had no charge-offs for the three months ended June 30, 2026 and 2025 and no non-performing loans at June 30, 2026 or June 30, 2025. The Company's allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2026 compared to 0.67% at June 30, 2025. Noninterest Income. Noninterest income decreased $1.5 million, or 73.0%, to $548,000, for the three months ended June 30, 2026 from $2.0 million for the three months ended June 30, 2025, as a result of a $1.5 million gain from life insurance proceeds due to the death of a former employee in 2025. Noninterest Expense. Noninterest expense increased $244,000, or 3.6%, to $7.1 million for the three months ended June 30, 2026 from $6.8 million for the three months ended June 30, 2025 due to a $302,000, or 8.3%, increase in salaries and employee benefits expense due to the issuance of additional equity awards in the second fiscal quarter as well as annual merit increases and a $41,000, or 13.9%, increase in furniture and equipment, offset by a $102,000, or 23.7%, decrease in professional fees. Income Tax Expense. The provision for income taxes was $309,000 for the three months ended June 30, 2026 compared to $215,000 for the three months ended June 30, 2025. The Company's effective tax rate was 24.7% for the three months ended June 30, 2026 compared to 8.9% for the three months ended June 30, 2025. The lower effective tax rate in 2025 was attributable to $1.5 million of tax-exempt income from life insurance proceeds. Comparison of Operating Results for the Year Ended June 30, 2026 and 2025 General. Net income decreased $1.8 million to $3.4 million for the year ended June 30, 2026 from net income of $5.1 million for the year ended June 30, 2025. Net income for the year ended June 30, 2026 included $749,000 of net accretion income related to fair value adjustments resulting from the Regal Bancorp merger. Net income for the year ended June 30, 2025 included $1.5 million of gains from life insurance proceeds and $2.8 million of net accretion income related to fair value adjustments. Interest Income. Interest income increased $3.3 million, or 7.0%, to $49.6 million for the year ended June 30, 2026 from $46.3 million for the year ended June 30, 2025 due to a 24 basis point increase in the yield on interest-earning assets and a $17.6 million increase in the average balance of interest-earning assets. The increase resulted from a $3.7 million, or 8.9%, increase in interest income on loans due to the net growth of the loan portfolio. The increase was offset by a $410,000 decrease in interest income from interest bearing deposits at other banks primarily due to a $40.2 million decrease in the average balance, offset by a 136 basis point increase in the yield. The increase in interest income on loans was driven by a $70.2 million increase in the average balance of loans from $771.7 million for the year ended June 30, 2025 to $841.9 million for the year ended June 30, 2026. Interest Expense. Interest expense increased $1.6 million, or 9.6%, to $18.3 million for the year ended June 30, 2026 from $16.7 million for the year ended June 30, 2025, primarily due to a $2.1 million increase in interest expense on money market accounts. Interest expense on money market accounts increased due to an increase of $60.2 million in the average balance and an increase of 30 basis points in the average rate to 1.98% for the year ended June 30, 2026 from 1.68% for the year ended June 30, 2025, as the Company raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. The increase was partially offset by a $994,000 decrease in interest expense from certificates of deposit driven by a 42 basis point decline in the average rate due to the lower interest rate environment, offset a $4.4 million increase in the average balance. Net Interest Income. Net interest income increased $1.6 million, or 5.6%, to $31.2 million for the year ended June 30, 2026 from $29.6 million for the year ended June 30, 2025. Net interest rate spread increased 22 basis points to 2.57% for the year ended June 30, 2026 from 2.35% for the year ended June 30, 2025. Net interest margin increased 11 basis points to 3.04% for the year ended June 30, 2026 from 2.93% for the year ended June 30, 2025. Net interest-earning assets decreased $46.9 million, or 17.9%, to $215.2 million for the year ended June 30, 2026 from $262.1 million for the year ended June 30, 2025. The increase in the Company's net interest rate spread and net interest margin were primarily a result of the yield on interest-earning assets increasing at a faster rate than the cost of interest-bearing liabilities. Provision for Credit Losses. The Company recorded a provision for credit losses of $575,000 for the year ended June 30, 2026 reflecting the loan growth during the period, compared to a provision for credit losses of $133,000 for the year ended June 30, 2025. The provision of $133,000 includes a recovery of $155,000 recorded during the first quarter of 2025, resulting from updates made to model assumptions in the calculation of the Company's allowance for credit losses, offset by provisions of $288,000 recorded during the remainder of the fiscal year reflecting loan growth, which includes an adjustment of $157,000 due to a revised calculation of the quantitative loss factor based on updated information related to historical loss factors of both Somerset Savings Bank, SLA and Regal Bank. The Company had no charge-offs during the years ended June 30, 2026 and 2025 and no non-performing loans at June 30, 2026 or June 30, 2025. The Company's allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2026 compared to 0.67% at June 30, 2025. Noninterest Income. Noninterest income decreased $1.5 million to $2.2 million for the year ended June 30, 2026 from $3.7 million for the year ended June 30, 2025, primarily as a result of a $1.5 million gain from life insurance proceeds due to the death of a former employee in 2025. Noninterest Expense. Noninterest expense increased $1.4 million, or 5.2%, to $28.5 million for the year ended June 30, 2026 from $27.1 million for the year ended June 30, 2025, primarily due to a $1.8 million, or 12.9%, increase in salaries and employee benefits resulting from a full year of stock-based compensation expense incurred during the year ended June 30, 2026, compared to a partial period of such expense during the year ended June 30, 2025, as well as annual merit increases in employee compensation. The increase in salaries and employee benefits was partially offset by decreases of $160,000 in professional fees, $97,000 in insurance expenses and $174,000 in other expenses. Income Tax Expense. The provision for income taxes was $1.0 million for the year ended June 30, 2026 compared to $991,000 for the year ended June 30, 2025. The Company's effective tax rate was 23.8% for the year ended June 30, 2026 compared to 16.2% for the year ended June 30, 2025. The lower effective tax rate in 2025 was attributable to $1.5 million of tax-exempt income from life insurance proceeds. Comparison of Financial Condition at June 30, 2026 and June 30, 2025 Assets. Assets increased $105.0 million, or 9.7%, to $1.19 billion at June 30, 2026 from $1.08 billion at June 30, 2025. The increase was primarily driven by new loan originations, resulting in a net increase of $104.0 million in loans receivable and a $13.7 million increase in cash and cash equivalents, partially offset by a $10.7 million decrease in securities. Cash and Cash Equivalents. Cash and cash equivalents increased $13.7 million, or 23.7%, to $71.5 million at June 30, 2026 from $57.8 million at June 30, 2025 primarily due to an increase in deposits and a $35.0 million increase in borrowings from the Federal Home Loan Bank of New York during the year ended June 30, 2026. Securities. Securities held-to-maturity decreased $10.7 million, or 7.5%, to $131.1 million at June 30, 2026 from $141.8 million at June 30, 2025. The decrease was primarily due to principal repayments and maturities in excess of purchases. Loans. Loans receivable, net, increased $104.0 million, or 13.0%, to $901.2 million at June 30, 2026 from $797.2 million at June 30, 2025, driven by increases in residential mortgage loans of $48.5 million and multi-family commercial loans of $33.0 million. Deposits. Deposits increased $80.4 million, or 9.5%, to $926.4 million at June 30, 2026 from $846.0 million at June 30, 2025. Increases in interest-bearing deposit accounts resulted from the Company having increased rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. At June 30, 2026, $128.2 million, or 13.8%, of total deposits consisted of noninterest-bearing deposits. At June 30, 2026, $191.6 million, or 20.7%, of total deposits were uninsured. Borrowings. During the year ended June 30, 2026, the Company borrowed an additional $35.0 million from the Federal Home Loan Bank of New York to provide for additional liquidity to fund new loans increasing the total outstanding borrowings to $65.0 million. At June 30, 2025, there were $30.0 million of outstanding borrowings. Equity. Equity decreased $12.0 million, or 6.2%, to $181.8 million at June 30, 2026 from $193.8 million at June 30, 2025. The decrease was primarily due to the repurchase of 978,778 shares of common stock at a cost of $16.0 million, partially offset by net earnings of $3.4 million. About Somerset Regal Bank Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At June 30, 2026, Somerset Regal Bank had $1.19 billion in total assets, $901.2 million in net loans, $926.4 million in deposits and total equity of $181.8 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward-Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, real estate market values in the Bank's lending area, changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies, trade restrictions and measures impacting our borrowers and the broader economy, risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors, the failure to maintain current technologies and the operational risks associated with the adoption of artificial intelligence and other emerging technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. NON-GAAP FINANCIAL INFORMATION This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-fourth-quarter-and-full-year-financial-results-302836936.html

BOUND BROOK, N.J., June 18, 2026 /PRNewswire/ -- SR Bancorp, Inc. (NASDAQ: SRBK), the holding company for Somerset Regal Bank, announced that its Board of Directors has declared the payment of a quarterly cash dividend of $0.06 per share, an increase of $0.01 per share, or 20%, payable on July 15, 2026 to stockholders of record as of June 30, 2026. Christopher J. Pribula, President and Chief Executive Officer of SR Bancorp, Inc. said: "Consistent with our commitment to enhancing shareholder value, we are pleased our earnings and strong financial position allows the 20% increase in our dividend." About SR Bancorp, Inc. SR Bancorp, Inc. is the holding company for Somerset Regal Bank, a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At March 31, 2026, Somerset Regal Bank had $1.14 billion in total assets, $859.1 million in net loans, $897.6 million in deposits and total equity of $181.3 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, our ability to successfully integrate acquired operations and realize the expected level of synergies and cost savings, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. View original content:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-20-increase-in-quarterly-dividend-302804002.html

BOUND BROOK, N.J., April 28, 2026 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $886,000 for the three months ended March 31, 2026, or $0.12 per basic and diluted share, compared to net income of $537,000 for the three months ended March 31, 2025, or $0.06 per basic and diluted share. Excluding $142,000 of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023, net income would have been $784,000 for the three months ended March 31, 2026. Excluding $575,000 of net accretion income related to fair value adjustments, net income would have been $124,000 for the three months ended March 31, 2025. See "Non-GAAP Financial Information" contained herein for additional information. The Company reported net income of $2.4 million for the nine months ended March 31, 2026, or $0.32 per basic and $0.31 per diluted share, compared to a net income of $2.9 million for the nine months ended March 31, 2025, or $0.34 per basic and diluted share. Excluding $647,000 of net accretion income related to fair value adjustments, net income would have been $1.9 million for the nine months ended March 31, 2026. Excluding $2.4 million of net accretion income related to fair value adjustments, net income would have been $1.2 million for the nine months ended March 31, 2025. Total assets were $1.14 billion at March 31, 2026, an increase of $59.0 million, or 5.4%, from $1.08 billion at June 30, 2025. Net loans were $859.1 million, an increase of $61.9 million, or 7.8%, from $797.2 million at June 30, 2025. Cash and cash equivalents increased $5.9 million, or 10.2%, to $63.7 million at March 31, 2026, from $57.8 million at June 30, 2025. The increases in loans and cash and cash equivalents were funded primarily through increased deposits and an additional $20.0 million of borrowings. Total deposits were $894.3 million, an increase of $48.3 million, or 5.7%, from $846.0 million at June 30, 2025. Comparison of Operating Results for the Three Months Ended March 31, 2026 and 2025 General. Net income increased $349,000, or 65.0%, to $886,000 for the three months ended March 31, 2026 compared to net income of $537,000 for the three months ended March 31, 2025. Net income for the three months ended March 31, 2026 and 2025 included $142,000 and $575,000, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023. Interest Income. Interest income increased $992,000, or 8.6%, to $12.5 million for the three months ended March 31, 2026 from $11.5 million for the three months ended March 31, 2025, due to a $21.5 million increase in the average balance of interest-earning assets and a 29 basis point increase in the yield. These increases resulted from a $1.0 million, or 9.9%, increase in interest income on loans and a $43,000, or 7.2%, increase in interest income on securities, partly offset by a $77,000, or 14.3%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was primarily due to a $70.0 million increase in the average balance of loans from $778.5 million for the three months ended March 31, 2025 to $848.5 million for the three months ended March 31, 2026. The increase in interest income on securities was due to a 23 basis point increase in the yield, partially offset by a $9.4 million decrease in the average balance. The decrease in interest income on interest-bearing deposits at other banks was due to a $39.0 million decrease in the average balance of deposits. Interest Expense. Interest expense increased $363,000, or 8.4%, to $4.7 million for the three months ended March 31, 2026 from $4.3 million for the three months ended March 31, 2025, due to a $68.4 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was primarily due to an increase of $61.0 million, or 20.0%, in the average balance of interest-bearing demand deposits and a $20.0 million, or 66.7%, increase in the average balance of borrowings for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, partially offset by a decrease of $23.2 million in the average balance of savings and club accounts. The increase was primarily due to a 22 basis point increase in the average rate of interest-bearing demand deposits to 1.97% for the three months ended March 31, 2026 from 1.75% for the three months ended March 31, 2025, resulting from competitively priced rates, partially offset by a 40 basis point decrease in the average rate of certificates of deposit. Net Interest Income. Net interest income increased $629,000, or 8.8%, to $7.8 million for the three months ended March 31, 2026 from $7.2 million for the three months ended March 31, 2025. Net interest rate spread increased 30 basis points to 2.55% for the three months ended March 31, 2026 from 2.25% for the three months ended March 31, 2025. Net interest margin increased 18 basis points to 3.00% for the three months ended March 31, 2026 from 2.82% for the three months ended March 31, 2025. Net interest-earning assets decreased $46.9 million, or 18.1%, to $211.9 million for the three months ended March 31, 2026 from $258.8 million for the three months ended March 31, 2025. The increase in the Company's net interest rate spread and net interest margin were primarily a result of an increase in the yield on interest-earning assets and the decrease in the cost of interest-bearing liabilities. Provision for Credit Losses. The Company establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Company considers, among other factors, past and current loss experience, evaluations of real estate collateral, economic conditions, the type and volume of lending, adverse situations that may affect a borrower's repayment capacity, trends in delinquent, classified or criticized loans, and other risk factors. The allowance is developed using reasonable and supportable forecasts and quantitative modeling techniques, combined with qualitative factors to address risks not captured in historical data, including emerging loan products or localized economic changes. Actual losses may vary from such estimates as more information becomes available or conditions change. The Company assesses the allowance for credit losses and records provisions for credit losses in the income statement on a quarterly basis. The Company recorded a provision for credit losses of $84,000 during the three months ended March 31, 2026 reflecting the loan growth during the period, compared to a provision for credit losses of $37,000 for the three months ended March 31, 2025. The Company had no charge-offs for the three months ended March 31, 2026 or 2025, respectively. The Company had no non-performing loans at March 31, 2026 or March 31, 2025. The Company's allowance for credit losses as a percentage of total loans was 0.66% at March 31, 2026 compared to 0.65% at March 31, 2025. Noninterest Income. Noninterest income increased $4,000, or 0.7%, to $545,000 for the three months ended March 31, 2026 from $541,000 for the three months ended March 31, 2025 primarily due to an increase in the cash surrender value of bank owned life insurance of $4,000 and an increase in the gain on sale of loans of $12,000, offset by a decrease in service charges and fees of $12,000. Noninterest Expense. Noninterest expense increased $44,000, or 0.6%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to a $318,000, or 8.6%, increase in salaries and employee benefits expense driven by annual merit increases and the recognition of employee stock-based compensation during the three months ended March 31, 2026 compared to a partial period of expense during the three months ended March 31, 2025, offset by decreases in other expenses of $184,000 and $46,000 in professional fees. Income Tax Expense. The provision for income taxes was $282,000 for the three months ended March 31, 2026 compared to $89,000 for the three months ended March 31, 2025. The Company's effective tax rate was 24.1% for the three months ended March 31, 2026 compared to 14.2% for the three months ended March 31, 2025 due to the non-deductibility of expenses related to incentive stock options. Comparison of Operating Results for the Nine Months Ended March 31, 2026 and 2025 General. Net income decreased $512,000, or 17.5%, to $2.4 million for the nine months ended March 31, 2026 compared to net income of $2.9 million for the nine months ended March 31, 2025. Net income for the nine months ended March 31, 2026 and 2025 included $647,000 and $2.4 million, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023. Interest Income. Interest income increased $2.2 million, or 6.5%, to $36.7 million for the nine months ended March 31, 2026 from $34.5 million for the nine months ended March 31, 2025 due to a $15.1 million increase in the average balance of interest-earning assets, and a 22 basis point increase in the yield. The increase resulted from a $2.5 million, or 8.0%, increase in interest income on loans, offset by a $181,000, or 11.5%, decrease in interest income on interest-bearing deposits at other banks and a $87,000, or 4.7%, decrease in interest income on securities. The increase in interest income on loans was due to a $64.1 million increase in the average balance of loans from $765.9 million for the nine months ended March 31, 2025 to $830.0 million for the nine months ended March 31, 2026. The decrease in interest income on securities was primarily due to a $12.8 million decrease in the average balance of securities resulting from maturities and repayments. The decrease in interest income on interest-bearing deposits at other banks was due to a $36.1 million decrease in the average balance, offset by a 141 basis point increase in the yield. Interest Expense. Interest expense increased $1.0 million, or 8.4%, to $13.5 million for the nine months ended March 31, 2026 from $12.5 million for the nine months ended March 31, 2025, due to a $61.0 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was due to an increase of $63.5 million, or 22.1%, in the average balance of interest-bearing demand deposits a $20.3 million, or 91.3%, increase in the average balance of borrowings for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025, partially offset by a decrease of $23.7 million in the average balance of savings and club accounts. The increase was primarily due to a 30 basis point increase in the average rate of interest-bearing demand deposits to 1.93% for the nine months ended March 31, 2026 from 1.63% for the nine months ended March 31, 2025 resulting from competitively priced rates, partially offset by a 49 basis point decrease in the average rate of certificates of deposits. Net Interest Income. Net interest income increased $1.2 million, or 5.4%, to $23.2 million for the nine months ended March 31, 2026 from $22.0 million for the nine months ended March 31, 2025. Net interest rate spread increased 22 basis points to 2.56% for the nine months ended March 31, 2026 from 2.34% for the nine months ended March 31, 2025. Net interest margin increased 11 basis points to 3.04% for the nine months ended March 31, 2026 from 2.93% for the nine months ended March 31, 2025. Net interest-earning assets decreased $45.9 million, or 17.5%, to $216.3 million for the nine months ended March 31, 2026 from $262.2 million for the nine months ended March 31, 2025. The increase in the Company's net interest rate spread and net interest margin were primarily a result of an increase in the yield on interest-earning assets. Provision for Credit Losses. The Company recorded a provision for credit losses of $305,000 during the nine months ended March 31, 2026 reflecting the loan growth during the period, compared to a recovery for credit losses of $105,000 for the nine months ended March 31, 2025, which reflected updates made to certain qualitative factors in the calculation of the Company's allowance. The Company had no charge-offs for the nine months ended March 31, 2026 or 2025, respectively. The Company had no non-performing loans at March 31, 2026 or March 31, 2025. The Company's allowance for credit losses as a percentage of total loans was 0.66% at March 31, 2026 compared to 0.65% at March 31, 2025. Noninterest Income. Noninterest income decreased $274,000, or 13.9%, to $1.7 million for the nine months ended March 31, 2026 from $2.0 million for the nine months ended March 31, 2025, primarily due to a decrease in service charges and fees of $110,000 and a decrease in other income of $98,000 during the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. Noninterest Expense. Noninterest expense increased $1.1 million, or 5.2%, to $21.4 million for the nine months ended March 31, 2026 from $20.3 million for the nine months ended March 31, 2025 predominantly due to a $1.5 million, or 14.5%, increase in salaries and employee benefits expense driven by the recognition of stock-based compensation during the nine months ended March 31, 2026 compared to a partial period of expense during the nine months ended March 31, 2025, as well annual merit increases in employee compensation. The increase in salaries and employee benefits was partially offset by decreases of $77,000 in data processing expenses, $85,000 in insurance expenses and $335,000 in other expenses. Income Tax Expense. The provision for income taxes was $738,000 for the nine months ended March 31, 2026, compared to $776,000 for the nine months ended March 31, 2025. The Company's effective tax rate was 23.4% for the nine months ended March 31, 2026 compared to 21.0% for the nine months ended March 31, 2025. Comparison of Financial Condition at March 31, 2026 and June 30, 2025 Assets. Assets increased $59.0 million, or 5.4%, to $1.14 billion at March 31, 2026 from $1.08 billion at June 30, 2025. The increase was driven primarily by new loan originations, resulting in a net increase of $61.9 million in loans receivable, as well as an increase in cash and cash equivalents of $5.9 million primarily due to an increase in deposits and borrowings. Cash and Cash Equivalents. Cash and cash equivalents increased $5.9 million, or 10.2%, to $63.7 million at March 31, 2026 from $57.8 million at June 30, 2025 due to an increase in deposits and borrowings from the Federal Home Loan Bank of New York. Securities. Securities held-to-maturity decreased $7.0 million, or 5.0%, to $134.8 million at March 31, 2026 from $141.8 million at June 30, 2025. The decrease was primarily due to principal repayments and maturities, partially offset by the purchase of a $6.0 million subordinated note issued by another financial institution. Loans. Loans receivable, net, increased $61.9 million, or 7.8%, to $859.1 million at March 31, 2026 from $797.2 million at June 30, 2025, driven by commercial loan growth of $33.9 million, residential mortgage loan growth of $27.0 million and consumer loan growth of $1.0 million as a result of strong market demand. Deposits. Deposits increased $48.3 million, or 5.7%, to $894.3 million at March 31, 2026 from $846.0 million at June 30, 2025. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on certain interest-bearing deposit accounts in an effort to remain competitive in the market area. At March 31, 2026, $111.3 million, or 12.4%, of total deposits consisted of noninterest-bearing deposits. At March 31, 2026, $164.6 million, or 18.4%, of total deposits were uninsured. Borrowings. During the nine months ended March 31, 2026, the Company borrowed an additional $20.0 million from the Federal Home Loan Bank of New York to provide additional liquidity to fund new loans. At March 31, 2026 and 2025, the Company had $50.0 million and $30.0 million in outstanding borrowings, respectively. Equity. Equity decreased $9.3 million, or 4.8%, to $184.5 million at March 31, 2026 from $193.8 million at June 30, 2025. The decrease was primarily due to the repurchase of 761,229 shares of common stock at a cost of $12.0 million, partially offset by net earnings of $2.4 million. About Somerset Regal Bank Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At March 31, 2026, Somerset Regal Bank had $1.14 billion in total assets, $859.1 million in net loans, $894.3 million in deposits and total equity of $184.5 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward-Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, the impact of a potential government shutdown, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. NON-GAAP FINANCIAL INFORMATION This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-financial-results-302756185.html

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like SR Bancorp (NASDAQ:SRBK). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide SR Bancorp with the means to add long-term value to shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. So a growing EPS generally brings attention to a company in the eyes of prospective investors. It's an outstanding feat for SR Bancorp to have grown EPS from US$0.048 to US$0.53 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that SR Bancorp's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. SR Bancorp maintained stable EBIT margins over the last year, all while growing revenue 9.2% to US$32m. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart. Check out our latest analysis for SR Bancorp Since SR Bancorp is no giant, with a market capitalisation of US$140m, you should definitely check its cash and debt before getting too excited about its prospects. It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, small purchases are not always indicative of conviction, and insiders don't always get it right. Shareholders in SR Bancorp will be more than happy to see insiders committing themselves to the company, spending US$301k on shares in just twelve months. When you contrast that with the complete lack of sales, it's easy for shareholders to be brimming with joyful expectancy. Zooming in, we can see that the biggest insider purchase was by Executive Chairman David Orbach for US$99k worth of shares, at about US$13.20 per share. The good news, alongside the insider buying, for SR Bancorp bulls is that insiders (collectively) have a meaningful investment in the stock. As a matter of fact, their holding is valued at US$12m. That's a lot of money, and no small incentive to work hard. As a percentage, this totals to 8.6% of the shares on issue for the business, an appreciable amount considering the market cap. SR Bancorp's earnings have taken off in quite an impressive fashion. Just as heartening; insiders both own and are buying more stock. These factors seem to indicate the company's potential and that it has reached an inflection point. We'd suggest SR Bancorp belongs near the top of your watchlist. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SR Bancorp that you should be aware of. The good news is that SR Bancorp is not the only stock with insider buying. Here's a list of small cap, undervalued companies in the US with insider buying in the last three months! Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

BOUND BROOK, N.J., March 19, 2026 /PRNewswire/ -- SR Bancorp, Inc. (NASDAQ: SRBK), the holding company for Somerset Regal Bank, announced that its Board of Directors has declared the payment of a quarterly cash dividend. The dividend of $0.05 per share will be paid on April 15, 2026 to stockholders of record as of March 31, 2026. David Orbach, Executive Chairman of SR Bancorp, Inc said: "We are pleased to be in a strong financial position giving us the ability to pay a cash dividend." About SR Bancorp, Inc. SR Bancorp, Inc. is the holding company for Somerset Regal Bank, a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At December 31, 2025, Somerset Regal Bank had $1.14 billion in total assets, $835.4 million in net loans, $891.5 million in deposits and total equity of $188.5 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, our ability to successfully integrate acquired operations and realize the expected level of synergies and cost savings, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-payment-of-quarterly-cash-dividend-of-0-05-per-share-302718164.html

BOUND BROOK, N.J., Jan. 28, 2026 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $834,000 for the three months ended December 31, 2025 (unaudited), or $0.11 per basic and diluted share, compared to net income of $1.0 million for the three months ended December 31, 2024 (unaudited). Excluding $202,000 of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023, net income would have been $689,000 for the three months ended December 31, 2025. Excluding $791,000 of net accretion income related to fair value adjustments, net income would have been $452,000 for the three months ended December 31, 2024. See "Non-GAAP Financial Information" contained herein for additional information. The Company reported net income of $1.5 million for the six months ended December 31, 2025, or $0.20 per basic and diluted share, compared to a net income of $2.4 million for the six months ended December 31, 2024. Excluding $505,000 of net accretion income related to fair value adjustments, net income would have been $1.2 million for the six months ended December 31, 2025. Excluding $1.8 million of net accretion income related to fair value adjustments, net income would have been $1.1 million for the six months ended December 31, 2024. Total assets were $1.14 billion at December 31, 2025, an increase of $58.6 million, or 5.4%, from $1.08 billion at June 30, 2025. Net loans were $835.4 million, an increase of $38.2 million, or 4.8%, from $797.2 million at June 30, 2025. Total deposits were $891.5 million, an increase of $45.5 million, or 5.4%, from $846.0 million at June 30, 2025. The increase in loans and a $24.0 million, or 41.6%, increase in cash and cash equivalents was funded primarily through increased deposits and an additional $20.0 million of borrowings. Comparison of Operating Results for the Three Months Ended December 31, 2025 and 2024 General. Net income decreased $187,000, or 18.3%, to $834,000 for the three months ended December 31, 2025 compared to net income of $1.0 million for the three months ended December 31, 2024. Net income for the three months ended December 31, 2025 and 2024 included $202,000 and $791,000, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023. Interest Income. Interest income increased $765,000, or 6.6%, to $12.3 million for the three months ended December 31, 2025 from $11.5 million for the three months ended December 31, 2024 due to a $13.4 million increase in the average balance of interest-earning assets and a 24 basis point increase in the yield. The increase resulted from a $857,000, or 8.2%, increase in interest income on loans, partly offset by a $52,000, or 8.9%, decrease in interest income on securities, and a $40,000, or 7.7%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was primarily due to a $61.4 million increase in the average balance of loans from $770.6 million for the three months ended December 31, 2024 to $832.0 million for the three months ended December 31, 2025. The decrease in interest income on securities was primarily due to a $14.3 million decrease in the average balance of securities resulting from maturities and repayments, offset by the purchase of a $6.0 million subordinated note. The decrease in interest income on interest-bearing deposits at other banks was due a $33.7 million decrease in the average balance of deposits. Interest Expense. Interest expense increased $213,000, or 4.9%, to $4.5 million for the three months ended December 31, 2025 from $4.3 million for the three months ended December 31, 2024, due to a $59.6 million increase in the average balance of interest-bearing liabilities partially offset by a seven basis point decrease in the cost. The increase in the average balance was primarily due to a $18.3 million, or 74.3%, increase in the average balance of borrowings for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 and an increase of $68.1 million, or 24.0%, in the average balance of interest-bearing demand deposits. The decrease was primarily due to a 49 basis point decrease in the average rate of certificates of deposit, offset by an increase of 20 basis points in the cost of interest-bearing demand deposits to 1.95% for the three months ended December 31, 2025 from 1.75% for the three months ended December 31, 2024, as the Bank offered competitive rates on certain interest-bearing deposit products in the market area. Net Interest Income. Net interest income increased $552,000, or 7.6%, to $7.8 million for the three months ended December 31, 2025 from $7.2 million for the three months ended December 31, 2024. Net interest rate spread increased 30 basis points to 2.57% for the three months ended December 31, 2025 from 2.27% for the three months ended December 31, 2024. Net interest margin increased 18 basis points to 3.06% for the three months ended December 31, 2025 from 2.88% for the three months ended December 31, 2024. Net interest-earning assets decreased $46.3 million, or 17.4%, to $219.1 million for the three months ended December 31, 2025 from $265.4 million for the three months ended December 31, 2024. The increase in the Company's net interest rate spread and net interest margin were primarily a result of a decrease in the cost of interest-bearing liabilities while the yield on interest-earning assets increased. Provision for Credit Losses. The Company establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Company considers, among other factors, past and current loss experience, evaluations of real estate collateral, economic conditions, the type and volume of lending, adverse situations that may affect a borrower's repayment capacity, while adjusting for delinquency trends, classified or criticized loans, and other risk factors. The allowance is developed using reasonable and supportable forecasts and quantitative modeling techniques, combined with qualitative factors to address risks not captured in historical data, including emerging loan products or localized economic changes. Actual losses may vary from such estimates as more information becomes available or conditions change. The Company assesses the allowance for credit losses and records provisions for credit losses in the income statement on a quarterly basis. The Company recorded a provision for credit losses of $49,000 during the three months ended December 31, 2025 reflecting the loan growth during the period, compared to a provision for credit losses of $12,000 for the three months ended December 31, 2024. The Company had no charge-offs for the three months ended December 31, 2025 or 2024. The Company had one non-performing loan of $176,000 at December 31, 2025 and no non-performing loans at December 31, 2024. The Company's allowance for credit losses as a percentage of total loans was 0.66% at December 31, 2025 compared to 0.65% at December 31, 2024. Noninterest Income. Noninterest income decreased $46,000, or 7.3%, to $581,000 for the three months ended December 31, 2025 from $627,000 for the three months ended December 31, 2024 primarily due to a decrease in service charges and fees on deposits of $32,000 and a decrease in fees and service charges on loans of $14,000 during the three months ended December 31, 2025 compared to the three months ended December 31, 2024. Noninterest Expense. Noninterest expense increased $726,000, or 11.2%, to $7.2 million for the three months ended December 31, 2025 from $6.5 million for the three months ended December 31, 2024 predominantly due to a $558,000, or 16.6%, increase in salaries and employee benefits expense driven by annual merit increases as well as the recognition of stock-based compensation during the three months ended December 31, 2025 compared to a partial period of expense during the three months ended December 31, 2024 as the initial expense recognition commenced on November 21, 2024. Income Tax Expense. The provision for income taxes was $254,000 for the three months ended December 31, 2025 compared to $324,000 for the three months ended December 31, 2024. The Company's effective tax rate was 23.3% for the three months ended December 31, 2025 compared to 24.1% for the three months ended December 31, 2024. Comparison of Operating Results for the Six Months Ended December 31, 2025 and 2024 General. Net income decreased $861,000, or 36.1%, to $1.5 million for the six months ended December 31, 2025 compared to net income of $2.4 million for the six months ended December 31, 2024. Net income for the six months ended December 31, 2025 and 2024 included $505,000 and $1.8 million, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023. Interest Income. Interest income increased $1.2 million, or 5.4%, to $24.2 million for the six months ended December 31, 2025 from $23.0 million for the six months ended December 31, 2024 due to a $12.6 million increase in the average balance of interest-earning assets, and a 19 basis point increase in the yield. The increase resulted from a $1.5 million, or 7.1%, increase in interest income on loans, offset by a $129,000, or 10.3%, decrease in interest income on securities and a $105,000, or 10.1%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was due to a $61.1 million increase in the average balance of loans from $759.7 million for the six months ended December 31, 2024 to $820.8 million for the six months ended December 31, 2025, offset by a five basis point decrease in the yield on loans. The decrease in interest income on securities was primarily due to a $14.4 million decrease in the average balance of securities resulting from maturities and repayments. The decrease in interest income on interest-bearing deposits at other banks was due to a $34.1 million decrease in the average balance of deposits at other banks. Interest Expense. Interest expense increased $679,000, or 8.3%, to $8.9 million for the six months ended December 31, 2025 from $8.2 million for the six months ended December 31, 2024, due to a $57.4 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was due to a $20.4 million, or 111.5%, increase in the average balance of borrowings for the six months ended December 31, 2025 compared to the six months ended December 31, 2024, as well as an increase of $64.7 million, or 23.3%, in the average balance of interest-bearing demand deposits. In addition, there was an increase of 35 basis points in the cost of interest-bearing deposits to 1.91% for the six months ended December 31, 2025 from 1.56% for the six months ended December 31, 2024 resulting from competitively priced rates offered on certain interest-bearing deposit products in the market area, offset by a 49 basis point decrease in the average rate of certificates of deposit. Net Interest Income. Net interest income increased $554,000, or 3.7%, to $15.4 million for the six months ended December 31, 2025 from $14.8 million for the six months ended December 31, 2024. Net interest rate spread increased 18 basis points to 2.57% for the six months ended December 31, 2025 from 2.39% for the six months ended December 31, 2024. Net interest margin increased seven basis points to 3.05% for the six months ended December 31, 2025 from 2.98% for the six months ended December 31, 2024. Net interest-earning assets decreased $44.8 million, or 17.0%, to $219.1 million for the six months ended December 31, 2025 from $263.9 million for the six months ended December 31, 2024. The increase in the Company's net interest rate spread and net interest margin were primarily a result of a decrease in the cost of interest-bearing liabilities while the yield on interest-earning assets increased. Provision for Credit Losses. The Company recorded a provision for credit losses of $221,000 during the six months ended December 31, 2025 reflecting the loan growth during the period, compared to a recovery for credit losses of $142,000 for the six months ended December 31, 2024, which reflected updates made to certain qualitative factors in the calculation of the Company's allowance. The Company had no charge-offs for the six months ended December 31, 2025 or 2024. The Company had one non-performing loan of $176,000 at December 31, 2025 and no non-performing loans at December 31, 2024. The Company's allowance for credit losses as a percentage of total loans was 0.66% at December 31, 2025 compared to 0.65% at December 31, 2024. Noninterest Income. Noninterest income decreased $133,000, or 10.4%, to $1.1 million for the six months ended December 31, 2025 from $1.3 million for the six months ended December 31, 2024, primarily due to a decrease in service charges and fees on deposits of $98,000 and a decrease in fees and service charges on loans of $38,000 during the six months ended December 31, 2025 compared to the six months ended December 31, 2024. Noninterest Expense. Noninterest expense increased $1.1 million, or 8.7%, to $14.3 million for the six months ended December 31, 2025 from $13.2 million for the six months ended December 31, 2024 predominantly due to a $1.2 million, or 17.7%, increase in salaries and employee benefits expense driven by the recognition of stock-based compensation during the six months ended December 31, 2025 compared to a partial period of expense during the six months ended December 31, 2024, as well annual merit increases in employee compensation. The increase in salaries and employee benefits was partially offset by a decrease of $68,000 in insurance expenses and a decrease of $57,000 in occupancy expenses due to the closure of a retail branch location. Income Tax Expense. The provision for income taxes was $456,000 for the six months ended December 31, 2025, compared to $687,000 for the six months ended December 31, 2024. The Company's effective tax rate was 23.0% for the six months ended December 31, 2025 compared to 22.3% for the six months ended December 31, 2024. Comparison of Financial Condition at December 31, 2025 and June 30, 2025 Assets. Assets increased $58.6 million, or 5.4%, to $1.14 billion at December 31, 2025 from $1.08 billion at June 30, 2025. The increase was driven by new loan originations, resulting in a net increase of $38.2 million in loans receivable, as well as increase in cash and cash equivalents of $24.1 million primarily due to an increase in deposits and borrowings. Cash and Cash Equivalents. Cash and cash equivalents increased $24.1 million, or 41.6%, to $81.8 million at December 31, 2025 from $57.8 million at June 30, 2025 due to an increase in deposits and borrowings from the Federal Home Loan Bank of New York. Securities. Securities held-to-maturity decreased $1.0 million, or 0.7%, to $140.8 million at December 31, 2025 from $141.8 million at June 30, 2025. The decrease was primarily due to principal repayments and maturities, partially offset by the purchase of a $6.0 million subordinated note. Loans. Loans receivable, net, increased $38.2 million, or 4.8%, to $835.4 million at December 31, 2025 from $797.2 million at June 30, 2025, driven by commercial loan growth of $24.2 million, residential mortgage loan growth of $12.7 million and consumer loan growth of $1.3 million as a result of strong market demand. Deposits. Deposits increased $45.5 million, or 5.4%, to $891.5 million at December 31, 2025 from $846.0 million at June 30, 2025. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on time deposit accounts in an effort to remain competitive in the market area. At December 31, 2025, $121.7 million, or 13.7%, of total deposits consisted of noninterest-bearing deposits. At December 31, 2025, $172.6 million, or 19.4%, of total deposits were uninsured. Borrowings. During the six months ended December 31, 2025, the Company borrowed an additional $20.0 million from the Federal Home Loan Bank of New York to provide additional liquidity to fund new loans. At December 31, 2025 and 2024, the Company had $50.0 million and $30.0 million in outstanding borrowings, respectively. Equity. Equity decreased $5.3 million, or 2.8%, to $188.5 million at December 31, 2025 from $193.8 million at June 30, 2025. The decrease was primarily due to the repurchase of 465,702 shares of common stock at a cost of $7.1 million, partially offset by net earnings of $1.5 million. All repurchased shares of common stock were retired upon acquisition and are no longer outstanding. About Somerset Regal Bank Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At December 31, 2025, Somerset Regal Bank had $1.14 billion in total assets, $835.4 million in net loans, $891.5 million in deposits and total equity of $188.5 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward-Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, the impact of a potential government shutdown, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. NON-GAAP FINANCIAL INFORMATION This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-quarterly-financial-results-302672936.html

BOUND BROOK, N.J., Dec. 18, 2025 /PRNewswire/ -- SR Bancorp, Inc. (NASDAQ: SRBK), the holding company for Somerset Regal Bank, announced that its Board of Directors has declared the payment of a quarterly cash dividend. The dividend of $0.05 per share will be paid on January 15, 2026 to stockholders of record as of December 31, 2025. David Orbach, Executive Chairman of SR Bancorp, Inc said: "We are pleased to be in a strong financial position giving us the ability to pay a cash dividend." About SR Bancorp, Inc. SR Bancorp, Inc. is the holding company for Somerset Regal Bank, a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At September 30, 2025, Somerset Regal Bank had $1.11 billion in total assets, $826.4 million in net loans, $869.6 million in deposits and total equity of $191.9 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, our ability to successfully integrate acquired operations and realize the expected level of synergies and cost savings, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-payment-of-quarterly-cash-dividend-of-0-05-per-share-302645503.html

BOUND BROOK, N.J., Oct. 30, 2025 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $693,000 for the three months ended September 30, 2025 (unaudited), or $0.09 per basic and diluted share, compared to net income of $1.4 million for the three months ended September 30, 2024 (unaudited). Excluding $303,000 of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bank in September 2023, net income would have been $475,000 for the three months ended September 30, 2025. Excluding $1.0 million of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bank in September 2023, net income would have been $627,000 for the three months ended September 30, 2024. See "Non-GAAP Financial Information" contained herein for additional information. Total assets were $1.11 billion at September 30, 2025, an increase of $25.7 million, or 2.4%, from $1.08 billion at June 30, 2025. Net loans were $826.4 million, an increase of $29.2 million, or 3.7%, from $797.2 million at June 30, 2025. Total deposits were $869.6 million, an increase of $23.6 million, or 2.8%, from $846.0 million at June 30, 2025. The increase in loans was funded primarily through increased deposits and an additional $5.0 million of borrowings. Comparison of Operating Results for the Three Months Ended September 30, 2025 and 2024 General. Net income decreased $674,000, or 49.3%, to $693,000 for the three months ended September 30, 2025 compared to net income of $1.4 million for the three months ended September 30, 2024. Net income for the three months ended September 30, 2025 and 2024 included $303,000 and $1.0 million, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bank in September 2023. Interest Income. Interest income increased $468,000, or 4.1%, to $11.9 million for the three months ended September 30, 2025 from $11.5 million for the three months ended September 30, 2024 due to a $50.6 million increase in the average balance of interest-earning assets, offset by a 6 basis point decrease in the yield. The increase resulted from a $609,000, or 5.9%, increase in interest income on loans, offset by a $64,000, or 12.3%, decrease in interest income on interest-bearing deposits at other banks and a $77,000, or 11.6%, decrease in interest income on securities. The increase in interest income on loans was due to a $60.7 million increase in the average balance of loans from $748.8 million for the three months ended September 30, 2024 to $809.5 million for the three months ended September 30, 2025, offset by an 11 basis point decrease in the yield on loans. The decrease in interest income on securities was primarily due to a $14.5 million decrease in the average balance of securities resulting from maturities and repayments. The decrease in interest income on interest-bearing deposits at other banks was due to a 107 basis point decrease in the yield. Interest Expense. Interest expense increased $467,000, or 12.1%, to $4.3 million for the three months ended September 30, 2025 from $3.9 million for the three months ended September 30, 2024, due to a $55.1 million increase in the average balance of interest-bearing liabilities and an nine basis point increase in the cost. The increase in the average balance was primarily due to a $22.6 million, or 187.4%, increase in the average balance of borrowings for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and an increase of $61.4 million, or 22.5%, in the average balance of interest-bearing deposits. The increase in the cost of interest-bearing liabilities was primarily due to an increase of 51 basis points in the cost of interest-bearing deposits to 1.87% for the three months ended September 30, 2025 from 1.36% for the three months ended September 30, 2024, as the Bank raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area, offset by a 50 basis point decrease in the average rate of certificates of deposit. Net Interest Income. Net interest income was $7.6 million for the three months ended September 30, 2025, and 2024, respectively. Net interest rate spread decreased 14 basis points to 2.56% for the three months ended September 30, 2025 from 2.70% for the three months ended September 30, 2024. Net interest margin decreased 16 basis points to 3.05% for the three months ended September 30, 2025 from 3.21% for the three months ended September 30, 2024. Net interest-earning assets decreased $4.5 million, or 2.0%, to $219.0 million for the three months ended September 30, 2025 from $223.5 million for the three months ended September 30, 2024. The decrease in the Bank's net interest rate spread and net interest margin were primarily a result of the cost of interest-bearing liabilities increasing while the yield on interest-earning assets decreased. Provision for Credit Losses. The Bank establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Bank considers, among other factors, past and current loss experience, evaluations of real estate collateral, economic conditions, the type and volume of lending, adverse situations that may affect a borrower's repayment capacity, while adjusting for delinquency trends, classified or criticized loans, and other risk factors. The allowance is developed using reasonable and supportable forecasts and quantitative modeling techniques, combined with qualitative factors to address risks not captured in historical data, including emerging loan products or localized economic changes. Actual losses may vary from such estimates as more information becomes available or conditions change. The Bank assesses the allowance for credit losses and records provisions for credit losses in the income statement on a quarterly basis. The Bank recorded a provision for credit losses of $171,000 during the three months ended September 30, 2025 reflecting the loan growth during the period, compared to a recovery for credit losses of $154,000 for the three months ended September 30, 2024, reflecting updates made to the risk levels of certain qualitative factors in the calculation of the Bank's allowance. The Bank had no charge-offs for the three months ended September 30, 2025 or 2024. The Bank had no non-performing loans at September 30, 2025 and $9,000 of non-performing loans at September 30, 2024. The Bank's allowance for credit losses as a percentage of total loans was 0.67% at September 30, 2025 compared to 0.66% at September 30, 2024. Noninterest Income. Noninterest income decreased $236,000, or 29.5%, to $565,000 for the three months ended September 30, 2025 from $801,000 for the three months ended September 30, 2024, primarily due to a decrease in other income of $123,000 and a decrease in service charges and fees of $66,000 primarily due to a lower volume of account fees and card charges incurred during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Noninterest Expense. Noninterest expense increased $275,000, or 4.0%, to $7.1 million for the three months ended September 30, 2025 from $6.8 million for the three months ended September 30, 2024 primarily due to a $613,000, or 18.9%, increase in salaries and employee benefits expense primarily driven by the recognition of stock-based compensation during the three months ended September 30, 2025, whereas no such expense was recognized during the three months ended September 30, 2024. The increase in salaries and employee benefits was offset by a decrease of $210,000 in other expenses, driven by a decrease of $71,000 in the amortization expense of fair value adjustments resulting from the acquisition of Regal Bank in September 2023, a decrease of $96,000 in occupancy expenses due to the closure of a retail branch location and a decrease of $89,000 in data processing fees. Income Tax Expense. The provision for income taxes was $202,000 for the three months ended September 30, 2025, compared to $363,000 for the three months ended September 30, 2024. The Bank's effective tax rate was 22.6% for the three months ended September 30, 2025 compared to 21.0% for the three months ended September 30, 2024. The higher effective tax rate in 2025 related to the non-deductibility of expenses recognized related to incentive stock options. Comparison of Financial Condition at September 30, 2025 and June 30, 2025 Assets . Assets increased $25.7 million, or 2.4%, to $1.11 billion at September 30, 2025 from $1.08 billion at June 30, 2025. The increase was primarily driven by new loan originations, resulting in a net increase of $29.2 million in loans receivable, offset by a $3.6 million decrease in securities. Cash and Cash Equivalents . Cash and cash equivalents increased $526,000, or 0.9%, to $58.3 million at September 30, 2025 from $57.8 million at June 30, 2025. Securities. Securities held-to-maturity decreased $3.6 million, or 2.5%, to $138.2 million at September 30, 2025 from $141.8 million at June 30, 2025. The decrease was primarily due to principal repayments and maturities. Loans. Loans receivable, net, increased $29.2 million, or 3.7%, to $826.4 million at September 30, 2025 from $797.2 million at June 30, 2025, driven by residential mortgage loan growth of $12.5 million and commercial loan growth of $16.0 million as a result of strong market demand. Deposits. Deposits increased $23.6 million, or 2.8%, to $869.6 million at September 30, 2025 from $846.0 million at June 30, 2025. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on certain money market and time deposit accounts in an effort to remain competitive in the market area. At September 30, 2025, $116.9 million, or 13.4%, of total deposits consisted of noninterest-bearing deposits. At September 30, 2025, $168.2 million, or 19.3%, of total deposits were uninsured. Borrowings. During the quarter ended September 30, 2025, the Bank borrowed an additional $5.0 million from the Federal Home Loan Bank of New York to provide additional liquidity to fund new loans. At September 30, 2025 and 2024, the Bank had $35.0 million and $30.0 million in outstanding borrowings, respectively. Equity. Equity decreased $1.8 million, or 1.0%, to $191.9 million at September 30, 2025 from $193.8 million at June 30, 2025. The decrease was primarily due to the repurchase of 198,310 shares of common stock at a cost of $2.9 million, partially offset by net earnings of $693,000. All repurchased shares of common stock were retired upon acquisition and are no longer outstanding. About Somerset Regal Bank Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At September 30, 2025, Somerset Regal Bank had $1.11 billion in total assets, $826.4 million in net loans, $869.6 million in deposits and total equity of $191.9 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward-Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, the impact of the current federal government shutdown, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. NON-GAAP FINANCIAL INFORMATION This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-quarterly-financial-results-302600210.html

BOUND BROOK, N.J., Sept. 22, 2025 /PRNewswire/ -- SR Bancorp, Inc. (NASDAQ: SRBK), the holding company for Somerset Regal Bank, announced that its Board of Directors has declared the payment of a quarterly cash dividend. The dividend of $0.05 per share will be paid on October 15, 2025 to stockholders of record as of September 30, 2025. David Orbach, Executive Chairman of SR Bancorp, Inc said: "We are pleased to be in a strong financial position giving us the ability to pay a cash dividend." About SR Bancorp, Inc. SR Bancorp, Inc. is the holding company for Somerset Regal Bank, a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At June 30, 2025, Somerset Regal Bank had $1.08 billion in total assets, $797.2 million in net loans, $846.0 million in deposits and total equity of $193.8 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, our ability to successfully integrate acquired operations and realize the expected level of synergies and cost savings, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-payment-of-quarterly-cash-dividend-of-0-05-per-share-302562166.html

BOUND BROOK, N.J. , Sept. 12, 2025 /PRNewswire/ -- On July 31, 2025, SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), issued a press release setting forth the financial results for the quarter and year ended June 30, 2025. This press release corrects certain information set forth in the original press release. Subsequent to the original press release, the Company recognized $1.5 million of gains from, and related interest on, life insurance proceeds from of the death of a former employee. In addition, the Company adjusted its allowance for credit losses with a revised calculation of the quantitative loss factor based on updated information related to historical loss factors of both Somerset Savings Bank, SLA and Regal Bank, resulting in an increase in the provision for credit losses of $157,000. Therefore, the revised earnings release reflects the following changes: The full text of the corrected release is as follows: Bound Brook, New Jersey (September 12, 2025) – SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $2.2 million, or $0.28 per basic share and $0.27 per diluted share, for the three months ended June 30, 2025, compared to a net loss of $3.0 million for the three months ended June 30, 2024. Excluding $1.5 million of gains from life insurance proceeds and $428,000 of net accretion income for fair value adjustments related to the acquisition of Regal Bancorp and its wholly-owned subsidiary Regal Bank, which is described in greater detail herein, net income would have been $412,000 for the three months ended June 30, 2025. Excluding $260,000 of merger-related costs and a $4.4 million loss on the sale of available-for-sale securities incurred as part of a balance sheet restructuring strategy whereby the proceeds from the sale of $30.9 million of securities were redeployed into residential and commercial real estate loans, offset by $1.2 million of net accretion income related to fair value adjustments, net loss would have been $499,000 for the three months ended June 30, 2024. The Company reported net income of $5.1 million, or $0.61 per basic and diluted share, for the year ended June 30, 2025, compared to a net loss of $10.9 million for the year ended June 30, 2024. Excluding $2.8 million of net accretion income related to fair value adjustments, net income would have been $2.0 million for the year ended June 30, 2025. One-time expenses incurred during the year included $4.4 million of merger-related expenses and a $4.2 million provision for credit losses, each of which was related to the acquisition of Regal Bancorp, as well as a $5.4 million charitable contribution to establish the Somerset Regal Charitable Foundation. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of a balance sheet restructuring strategy whereby the proceeds from the sale of $30.9 million of securities were redeployed into residential and commercial real estate loans. Excluding the aforementioned one-time expenses, offset by $4.1 million of net accretion income related to fair value adjustments, net income for the year ended June 30, 2024 would have been $1.0 million. Total assets were $1.08 billion at June 30, 2025, an increase of $63.6 million, or 6.2%, from $1.02 billion at June 30, 2024. Net loans were $797.2 million, an increase of $65.3 million, or 8.9%, from $731.9 million at June 30, 2024. Total deposits were $846.0 million, an increase of $38.9 million, or 4.8%, from $807.1 million at June 30, 2024. The increase in loans was funded primarily through a $30.0 million short-term borrowing and increased deposits. Completed Stock Offering and Merger The conversion of Somerset Savings Bank, SLA from the mutual to stock form of organization and related stock offering by the Company was completed on September 19, 2023. In connection therewith, the Company sold 9,055,172 shares of common stock at a price of $10.00 per share and contributed 452,758 shares and $905,517 in cash to the Somerset Regal Charitable Foundation, Inc., a charitable foundation formed in connection with the conversion. Promptly following the completion of the conversion and related stock offering, Regal Bancorp merged with and into the Company, with the Company as the surviving entity (the "Merger"). Immediately following the Merger, Regal Bank, a New Jersey chartered commercial bank headquartered in Livingston, New Jersey and the 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. The Merger was completed on September 19, 2023. Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024 General. Net income increased $5.2 million, to $2.2 million for the three months ended June 30, 2025 compared to the net loss of $3.0 million for the three months ended June 30, 2024. Net income for the three months ended June 30, 2025 included $428,000, of net accretion income related to fair value adjustments resulting from the Merger. Net income for the three months ended June 30, 2024 included $260,000 of merger-related costs, offset by $1.2 million of net accretion income related to fair value adjustments. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of a balance sheet restructuring strategy whereby the proceeds from the sale of $30.9 million of securities were redeployed into residential and commercial real estate loans. Interest Income. Interest income increased $319,000, or 2.8%, to $11.7 million for the three months ended June 30, 2025 from $11.4 million for the three months ended June 30, 2024. The increase resulted from a $644,000, or 6.5%, increase in interest income on loans, partially offset by a $204,000, or 24.8%, decrease in interest income on interest bearing deposits at other banks due to a 80 basis point decrease in the yield on overnight funds and by a $121,000, or 17.1%, decrease in interest income on securities. The increase in the interest income on loans was due to a $75.8 million increase in the average balance of loans from $713.2 million for the three months ended June 30, 2024 to $789.0 million for the three months ended June 30, 2025, offset by a 20 basis point decrease in the yield on loans in a lower interest rate environment. The decrease in interest income on securities was due to a $31.7 million decrease in the average balance of securities resulting primarily from the sale of $35.4 million of lower-yielding securities in the fourth quarter of fiscal year 2024 as part of a balance sheet restructuring, which resulted in a two basis point increase in the yield notwithstanding the lower interest rate environment. Interest Expense. Interest expense increased $806,000, or 23.4%, to $4.3 million for the three months ended June 30, 2025 from $3.5 million for the three months ended June 30, 2024, due to a $843,000 increase in interest expense on demand deposits and a $236,000, increase in interest expense on borrowings due to a new $30.0 million borrowing during the period, offset by a decrease in interest expense on certificates of deposit of $273,000, resulting from a 37 basis point decrease in the average rate. The increase in interest expense on interest-bearing demand deposits was due to an increase of $61.7 million, or 23.8%, in the average balance and an increase of 88 basis points in the cost of interest-bearing deposits to 1.82% for the three months ended June 30, 2025 from 0.94% for the three months ended June 30, 2024 as the Bank raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. Net Interest Income. Net interest income decreased $487,000, or 6.1%, to $7.5 million for the three months ended June 30, 2025 from $7.9 million for the three months ended June 30, 2024. Net interest rate spread decreased 36 basis points to 2.33% for the three months ended June 30, 2025 from 2.69% for the three months ended June 30, 2024. Net interest margin decreased 32 basis points to 2.90% for the three months ended June 30, 2025 from 3.22% for the three months ended June 30, 2024. Net interest-earning assets decreased $9.3 million, or 3.4%, to $261.8 million for the three months ended June 30, 2025 from $271.1 million for the three months ended June 30, 2024. The decrease in the Bank's net interest rate spread and net interest margin were primarily a result of the cost of interest-bearing liabilities increasing while the yield on interest-earning assets decreased. Provision for Credit Losses. The Bank establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Bank considers, among other things, past and current loss experience, evaluations of real estate collateral, economic conditions, the amount and type of lending, adverse situations that may affect a borrower's ability to repay a loan and the levels of delinquent, classified and criticized loans. The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates as more information becomes available or conditions change. The Bank assesses the allowance for credit losses and records provisions for credit losses on a quarterly basis. The Bank recorded a provision for credit losses of $238,000 during the three months ended June 30, 2025 reflecting loan growth during the period as well as an adjustment of $157,000 due to a revised calculation of the quantitative loss factor based on updated information related to historical loss factors of both Somerset Savings Bank, SLA and Regal Bank, compared to a provision for credit losses of $153,000 for the three months ended June 30, 2024. The Bank had no charge-offs for the three months ended June 30, 2025 and 2024 and no non-performing loans at June 30, 2025 compared to $50,000 of non-performing loans at June 30, 2024. The Bank's allowance for credit losses as a percentage of total loans was 0.67% at June 30, 2025 compared to 0.71% at June 30, 2024. Noninterest Income. Noninterest income increased $5.9 million, or 152.2%, to $2.0 million for the three months ended June 30, 2025 from a loss of $3.9 million for the three months ended June 30, 2024, primarily as a result of a $4.4 million loss on the sale of available-for-sale securities incurred during the fourth quarter of fiscal 2024 as part of the balance sheet restructuring strategy, as well as $1.5 million of gains from life insurance proceeds incurred during the fourth quarter of fiscal 2025. Noninterest Expense. Noninterest expense increased $216,000, or 3.3%, to $6.8 million for the three months ended June 30, 2025 from $6.6 million for the three months ended June 30, 2024, due to a $576,000, or 18.9%, increase in salaries and employee benefits expense, offset by a $158,000, or 22.3%, decrease in data processing fees resulting from the one-time cost related to the Merger in 2024 and a $137,000, or 20.3%, decrease in occupancy expense. Income Tax Expense. The provision for income taxes was $215,000 for the three months ended June 30, 2025, compared to $334,000 for the three months ended June 30, 2024. The Bank's effective tax rate was 8.9% for the three months ended June 30, 2025 compared to 12.4% for the three months ended June 30, 2024. Comparison of Operating Results for the Year Ended June 30, 2025 and 2024 General. Net income increased $16.0 million to $5.1 million for the year ended June 30, 2025 from a net loss of $10.9 million for the year ended June 30, 2024. Net income for the year ended June 30, 2025 included $2.8 million of net accretion income related to fair value adjustments resulting from the Merger as well as $1.5 million of gains from life insurance proceeds. Net loss for the year ended June 30, 2024 included an one-time expenses incurred during the year included $4.4 million of merger-related expenses and a $4.2 million provision for credit losses, each of which was related to the acquisition of Regal Bancorp, as well as a $5.4 million charitable contribution to establish the Somerset Regal Charitable Foundation. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of the balance sheet restructuring strategy. Excluding the aforementioned one-time expenses, offset by $4.1 million of net accretion income related to fair value adjustments, net income for the year ended June 30, 2024 would have been $1.0 million. Interest Income. Interest income increased $5.4 million, or 13.3%, to $46.3 million for the year ended June 30, 2025 from $40.9 million for the year ended June 30, 2024 due to a 15 basis point increase in the yield on interest-earning assets and a $87.9 million increase in the average balance of interest-earning assets. The increase resulted from a $8.1 million, or 24.0%, increase in interest income on loans due to the increased size of the loan portfolio, largely as a result of the Merger, as well as a higher average yield on the loan portfolio due to an increased proportion of higher-yielding commercial real estate loans. The increase was offset by a $762,000, decrease in interest income on securities and a $1.7 million decrease in interest income from other interest-earning assets due to lower average balances and a lower interest rate environment. The decrease in interest income on securities was due to a $44.2 million decrease in the average balance of securities, resulting primarily from the sale of $35.4 million of lower-yielding securities in the fourth quarter of fiscal year 2024 as part of the balance sheet restructuring, and a two basis point decrease in the average yield on securities due to the lower interest rate environment, which was mitigated by the balance sheet restructuring. Interest Expense. Interest expense increased $5.2 million, or 45.6%, to $16.7 million for the year ended June 30, 2025 from $11.5 million for the year ended June 30, 2024, primarily due to a $4.9 million increase in interest expense on deposits. Interest expense on interest-bearing demand deposits increased due to an increase of $96.4 million in the average balance as a result of the Merger and an increase of 112 basis points in the cost of interest-bearing deposits to 1.68% for the year ended June 30, 2025 from 0.56% for the year ended June 30, 2024 as the Bank raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. Interest expense on certificates of deposit increased $1.0 million due to a $4.9 million increase in the average balance and an increase in the average rate on certificates of deposit of four basis points to 3.83% for the year ended June 30, 2025 from 3.79% for the year ended June 30, 2024 due to the highly competitive interest rate environment in our market area. Interest expense on borrowings increased by $370,000 due to a higher average outstanding balance, offset by a 82 basis point decrease in the rate paid. Net Interest Income. Net interest income increased $210,000, or 0.7%, to $29.6 million for the year ended June 30, 2025 from $29.4 million for the year ended June 30, 2024. Net interest rate spread decreased 38 basis points to 2.35% for the year ended June 30, 2025 from 2.73% for the year ended June 30, 2024. Net interest margin decreased 26 basis points to 2.93% for the year ended June 30, 2025 from 3.19% for the year ended June 30, 2024. Net interest-earning assets increased $14.9 million, or 6.0%, to $262.0 million for the year ended June 30, 2025 from $247.2 million for the year ended June 30, 2024. The decreases in the Bank's net interest rate spread and net interest margin were primarily a result of the cost of interest-bearing liabilities increasing at a higher rate than the yield on interest-earning assets. Provision for Credit Losses. The Bank recorded a provision for credit losses of $133,000 for the year ended June 30, 2025 as compared to a provision for credit losses of $4.1 million for the year ended June 30, 2024. The provision of $133,000 represents a recovery of $155,000 recorded during the first quarter resulting from updates made to model assumptions in the calculation of the Bank's allowance for credit losses, offset by provisions of $288,000 recorded during the remainder of the fiscal year reflecting loan growth as well as an adjustment of $157,000 due to a revised calculation of the quantitative loss factor based on updated information related to historical loss factors of both Somerset Savings Bank, SLA and Regal Bank. The Bank had no charge-offs during the years ended June 30, 2025 and 2024 and no non-performing loans at June 30, 2025 compared to $50,000 of non-performing loans at June 30, 2024. The Bank's allowance for credit losses as a percentage of total loans was 0.67% at June 30, 2025 compared to 0.71% at June 30, 2024. Noninterest Income. Noninterest income increased $6.2 million to $3.7 million for the year ended June 30, 2025 from a loss of $2.5 million for the year ended June 30, 2024, primarily as a result of a $4.4 million loss on the sale of available-for-sale securities incurred during the fourth quarter of fiscal 2024 as part of the balance sheet restructuring strategy, as well as $1.5 million of gains from life insurance proceeds resulting from the death of a former employee. Noninterest Expense. Noninterest expense decreased $7.5 million, or 21.8%, to $27.1 million for the year ended June 30, 2025 from $34.6 million for the year ended June 30, 2024, primarily as a result of a $5.4 million charitable contribution made during the year ended June 30, 2024, a $1.2 million, or 7.9%, decrease in salaries and employee benefits resulting from one-time change in control payments incurred during the year ended June 30, 2024, a $909,000, or 29.3%, decrease in data processing expense due to a $414,000 early termination fee and a $242,000 deconversion fee incurred during the year ended June 30, 2024, all related to the Merger. Income Tax Expense. The provision for income taxes was $991,000 for the year ended June 30, 2025, compared to a benefit of $909,000 for the year ended June 30, 2024. The Bank's effective tax rate was 16.2% for the year ended June 30, 2025 compared to 7.7% for the year ended June 30, 2024. Comparison of Financial Condition at June 30, 2025 and June 30, 2024 Assets . Assets increased $63.6 million, or 6.2%, to $1.08 billion at June 30, 2025 from $1.02 billion at June 30, 2024. The increase was primarily driven by new loan originations, resulting in a net increase of $65.3 million in loans receivable and an $11.9 million increase in cash and cash equivalents, offset by a $14.3 million decrease in securities. Cash and Cash Equivalents . Cash and cash equivalents increased $11.9 million, or 25.9%, to $57.8 million at June 30, 2025 from $45.9 million at June 30, 2024 primarily due to a $38.9 million increase in deposits, borrowings of $30.0 million from the Federal Home Loan Bank of New York during the year ended June 30, 2025 and the decrease in securities. Securities. Securities held-to-maturity decreased $14.3 million, or 9.2%, to $141.8 million at June 30, 2025 from $156.1 million at June 30, 2024. The decrease was primarily due to principal repayments and maturities. Loans. Loans receivable, net, increased $65.3 million, or 8.9%, to $797.2 million at June 30, 2025 from $731.9 million at June 30, 2024, driven by increases in residential mortgage loans of $32.6 million and multi-family loans of $40.0 million. Deposits. Deposits increased $38.9 million, or 4.8%, to $846.0 million at June 30, 2025 from $807.1 million at June 30, 2024. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. At June 30, 2025, $114.1 million, or 13.5%, of total deposits consisted of noninterest-bearing deposits. At June 30, 2025, $145.4 million, or 17.2%, of total deposits were uninsured. Borrowings. During the year ended June 30, 2025, the Bank borrowed $30.0 million from the Federal Home Loan Bank of New York to provide for additional liquidity to fund new loans. At June 30, 2024, there were no outstanding borrowings. Equity. Equity decreased $5.7 million, or 2.9%, to $193.8 million at June 30, 2025 from $199.5 million at June 30, 2024. The decrease was primarily due to the repurchase of 936,991 shares of common stock at a cost of $11.3 million, partially offset by net earnings of $5.1 million. About Somerset Regal Bank Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At June 30, 2025, Somerset Regal Bank had $1.08 billion in total assets, $797.2 million in net loans, $846.0 million in deposits and total equity of $193.8 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward-Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. NON-GAAP FINANCIAL INFORMATION This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-fourth-quarter-and-annual-financial-results-corrected-302555326.html

BOUND BROOK, N.J., July 31, 2025 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $823,000, or $0.10 per basic and diluted share, for the three months ended June 30, 2025, compared to a net loss of $3.0 million for the three months ended June 30, 2024. Excluding $428,000 of net accretion income for fair value adjustments related to the acquisition of Regal Bancorp and its wholly-owned subsidiary Regal Bank, which is described in greater detail below, net income would have been 515,000 for the three months ended June 30, 2025. Excluding $260,000 of merger-related costs and a $4.4 million loss on the sale of available-for-sale securities incurred as part of a balance sheet restructuring strategy whereby the proceeds from the sale of $30.9 million of securities were redeployed into residential and commercial real estate loans, offset by $1.2 million of net accretion income related to fair value adjustments, net loss would have been $499,000 for the three months ended June 30, 2024. The Company reported net income of $3.7 million, or $0.44 per basic and diluted share, for the year ended June 30, 2025, compared to a net loss of $10.9 million for the year ended June 30, 2024. Excluding $2.8 million of net accretion income related to fair value adjustments, net income would have been $1.7 million for the year ended June 30, 2025. One-time expenses incurred during the year included $4.4 million of merger-related expenses and a $4.2 million provision for credit losses, each of which was related to the acquisition of Regal Bancorp, as well as a $5.4 million charitable contribution to establish the Somerset Regal Charitable Foundation. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of a balance sheet restructuring strategy whereby the proceeds from the sale of $30.9 million of securities were redeployed into residential and commercial real estate loans. Excluding the aforementioned one-time expenses, offset by $4.1 million of net accretion income related to fair value adjustments, net income for the year ended June 30, 2024 would have been $1.0 million. Total assets were $1.08 billion at June 30, 2025, an increase of $62.2 million, or 6.1%, from $1.02 billion at June 30, 2024. Net loans were $797.3 million, an increase of $65.5 million, or 8.9%, from $731.9 million at June 30, 2024. Total deposits were $846.0 million, an increase of $38.9 million, or 4.8%, from $807.1 million at June 30, 2024. The increase in loans was funded primarily through a $30.0 million short-term borrowing and increased deposits. Completed Stock Offering and Merger The conversion of Somerset Savings Bank, SLA from the mutual to stock form of organization and related stock offering by the Company was completed on September 19, 2023. In connection therewith, the Company sold 9,055,172 shares of common stock at a price of $10.00 per share and contributed 452,758 shares and $905,517 in cash to the Somerset Regal Charitable Foundation, Inc., a charitable foundation formed in connection with the conversion. Promptly following the completion of the conversion and related stock offering, Regal Bancorp merged with and into the Company, with the Company as the surviving entity (the "Merger"). Immediately following the Merger, Regal Bank, a New Jersey chartered commercial bank headquartered in Livingston, New Jersey and the 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. The Merger was completed on September 19, 2023. Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024 General. Net income increased $3.9 million, to $823,000 for the three months ended June 30, 2025 compared to the net loss of $3.0 million for the three months ended June 30, 2024. Net income for the three months ended June 30, 2025 included $428,000, of net accretion income related to fair value adjustments resulting from the Merger. Net income for the three months ended June 30, 2024 included $260,000 of merger-related costs, offset by $1.2 million of net accretion income related to fair value adjustments. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of a balance sheet restructuring strategy whereby the proceeds from the sale of $30.9 million of securities were redeployed into residential and commercial real estate loans. Interest Income. Interest income increased $319,000, or 2.8%, to $11.7 million for the three months ended June 30, 2025 from $11.4 million for the three months ended June 30, 2024. The increase resulted from a $644,000, or 6.5%, increase in interest income on loans, partially offset by a $204,000, or 24.8%, decrease in interest income on interest bearing deposits at other banks due to a 80 basis point decrease in the yield on overnight funds and by a $121,000, or 17.1%, decrease in interest income on securities. The increase in the interest income on loans was due to a $75.8 million increase in the average balance of loans from $713.2 million for the three months ended June 30, 2024 to $789.0 million for the three months ended June 30, 2025, offset by a 21 basis point decrease in the yield on loans in a lower interest rate environment. The decrease in interest income on securities was due to a $31.7 million decrease in the average balance of securities resulting primarily from the sale of $35.4 million of lower-yielding securities in the fourth quarter of fiscal year 2024 as part of a balance sheet restructuring, which resulted in a two basis point increase in the yield notwithstanding the lower interest rate environment. Interest Expense. Interest expense increased $806,000, or 23.4%, to $4.3 million for the three months ended June 30, 2025 from $3.5 million for the three months ended June 30, 2024, due to a $843,000 increase in interest expense on demand deposits and a $236,000, increase in interest expense on borrowings due to a new $30.0 million borrowing during the period, offset by a decrease in interest expense on certificates of deposit of $273,000, resulting from a 37 basis point decrease in the average rate. The increase in interest expense on interest-bearing demand deposits was due to an increase of $61.7 million, or 23.8%, in the average balance and an increase of 88 basis points in the cost of interest-bearing deposits to 1.82% for the three months ended June 30, 2025 from 0.94% for the three months ended June 30, 2024 as the Bank raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. Net Interest Income. Net interest income decreased $487,000, or 6.1%, to $7.5 million for the three months ended June 30, 2025 from $7.9 million for the three months ended June 30, 2024. Net interest rate spread decreased 36 basis points to 2.33% for the three months ended June 30, 2025 from 2.69% for the three months ended June 30, 2024. Net interest margin decreased 32 basis points to 2.90% for the three months ended June 30, 2025 from 3.22% for the three months ended June 30, 2024. Net interest-earning assets decreased $9.3 million, or 3.4%, to $261.8 million for the three months ended June 30, 2025 from $271.1 million for the three months ended June 30, 2024. The decrease in the Bank's net interest rate spread and net interest margin were primarily a result of the cost of interest-bearing liabilities increasing while the yield on interest-earning assets decreased. Provision for Credit Losses. The Bank establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Bank considers, among other things, past and current loss experience, evaluations of real estate collateral, economic conditions, the amount and type of lending, adverse situations that may affect a borrower's ability to repay a loan and the levels of delinquent, classified and criticized loans. The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates as more information becomes available or conditions change. The Bank assesses the allowance for credit losses and records provisions for credit losses on a quarterly basis. The Bank recorded a provision for credit losses of $81,000 during the three months ended June 30, 2025 reflecting the loan growth during the period, compared to a provision for credit losses of $153,000 for the three months ended June 30, 2024. The Bank had no charge-offs for the three months ended June 30, 2025 and 2024 and no non-performing loans at June 30, 2025 compared to $50,000 of non-performing loans at June 30, 2024. The Bank's allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2025 compared to 0.71% at June 30, 2024. Noninterest Income. Noninterest income increased $4.4 million, or 113.4%, to $522,000 for the three months ended June 30, 2025 from a loss of $3.9 million for the three months ended June 30, 2024, primarily as a result of $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of the balance sheet restructuring strategy. Noninterest Expense. Noninterest expense increased $216,000, or 3.3%, to $6.8 million for the three months ended June 30, 2025 from $6.6 million for the three months ended June 30, 2024, due to a $576,000, or 18.9%, increase in salaries and employee benefits expense and a $206,000 increase in professional fees, offset by a $158,000, or 22.3% decrease in data processing fees resulting from the one-time cost related to the Merger in 2024. Income Tax Expense. The provision for income taxes was $255,000 for the three months ended June 30, 2025, compared to $334,000 for the three months ended June 30, 2024. The Bank's effective tax rate was 23.7% for the three months ended June 30, 2025 compared to 12.4% for the three months ended June 30, 2024. Comparison of Operating Results for the Year Ended June 30, 2025 and 2024 General. Net income increased $14.6 million to $3.7 million for the year ended June 30, 2025 from a net loss of $10.9 million for the year ended June 30, 2024. Net income for the year ended June 30, 2025 included $2.8 million of net accretion income related to fair value adjustments resulting from the Merger. Net loss for the year ended June 30, 2024 included an one-time expenses incurred during the year included $4.4 million of merger-related expenses and a $4.2 million provision for credit losses, each of which was related to the acquisition of Regal Bancorp ("Regal Bancorp"), which is described in greater detail below, as well as a $5.4 million charitable contribution to establish the Somerset Regal Charitable Foundation. In addition, a $4.4 million loss on the sale of available-for-sale securities was incurred during the fourth quarter of fiscal 2024 as part of the balance sheet restructuring strategy. Excluding the aforementioned one-time expenses, offset by $4.1 million of net accretion income related to fair value adjustments, net income for the year ended June 30, 2024 would have been $1.0 million Interest Income. Interest income increased $5.4 million, or 13.3%, to $46.3 million for the year ended June 30, 2025 from $40.9 million for the year ended June 30, 2024 due to a 15 basis point increase in the yield on interest-earning assets and a $87.9 million increase in the average balance of interest-earning assets. The increase resulted from a $8.1 million, or 24.0%, increase in interest income on loans due to the increased size of the loan portfolio, largely as a result of the Merger, as well as a higher average yield on the loan portfolio due to an increased proportion of higher-yielding commercial real estate loans. The increase was offset by a $762,000, decrease in interest income on securities and a $3.9 million decrease in interest income from other interest-earning assets due to lower average balances and a lower interest rate environment. The decrease in interest income on securities was due to a $44.2 million decrease in the average balance of securities and a two basis point decrease in the average yield on securities, resulting primarily from the sale of $35.4 million of lower-yielding securities in the fourth quarter of fiscal year 2024 as part of the balance sheet restructuring. Interest Expense. Interest expense increased $5.2 million, or 45.6%, to $16.7 million for the year ended June 30, 2025 from $11.5 million for the year ended June 30, 2024, primarily due to a $4.9 million increase in interest expense on deposits. Interest expense on interest-bearing demand deposits increased due to an increase of $96.4 million in the average balance as a result of the Merger and an increase of 112 basis points in the cost of interest-bearing deposits to 1.68% for the year ended June 30, 2025 from 0.56% for the year ended June 30, 2024 as the Bank raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. Interest expense on certificates of deposit increased $1.0 million due to a $4.9 million increase in the average balance and an increase in the average rate on certificates of deposit of four basis points to 3.83% for the year ended June 30, 2025 from 3.79% for the year ended June 30, 2024 due to the highly competitive interest rate environment in our market area. Interest expense on borrowings increased by $370,000 due to a higher average outstanding balance, offset by a 82 basis point decrease in the rate paid. Net Interest Income. Net interest income increased $210,000, or 0.7%, to $29.6 million for the year ended June 30, 2025 from $29.4 million for the year ended June 30, 2024. Net interest rate spread decreased 38 basis points to 2.35% for the year ended June 30, 2025 from 2.73% for the year ended June 30, 2024. Net interest margin decreased 26 basis points to 2.93% for the year ended June 30, 2025 from 3.19% for the year ended June 30, 2024. Net interest-earning assets increased $14.9 million, or 6.0%, to $262.0 million for the year ended June 30, 2025 from $247.2 million for the year ended June 30, 2024. The decreases in the Bank's net interest rate spread and net interest margin were primarily a result of the cost of interest-bearing liabilities increasing at a higher rate than the yield on interest-earning assets. Provision for Credit Losses. The Bank recorded a recovery for credit losses of $24,000 for the year ended June 30, 2025 as compared to a provision for credit losses of $4.1 million for the year ended June 30, 2024. The recovery reflects a recovery of $154,000 recorded in the first quarter resulting from updates made to model assumptions in the calculation of the Bank's allowance for credit losses, offset by provisions of $130,000 recorded during the remainder of the fiscal year reflecting the loan growth during the period. The Bank had no charge-offs during the years ended June 30, 2025 and 2024 and no non-performing loans at June 30, 2025 compared to $50,000 of non-performing loans at June 30, 2024. The Bank's allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2025 compared to 0.71% at June 30, 2024. Noninterest Income. Noninterest income increased $4.7 million to $2.2 million for the year ended June 30, 2025 from a loss of $2.5 million for the year ended June 30, 2024, primarily as a result of a $4.4 million loss on the sale of available-for-sale securities incurred during the fourth quarter of fiscal 2024 as part of the balance sheet restructuring strategy, as well as an increase of $136,000 in the cash surrender value of bank owned life insurance, resulting from an increase in the average balance of the related assets. Noninterest Expense. Noninterest expense decreased $7.5 million, or 21.8%, to $27.1 million for the year ended June 30, 2025 from $34.6 million for the year ended June 30, 2024, primarily as a result of a $5.4 million charitable contribution made during the year ended June 30, 2024, a $1.2 million, or 7.9%, decrease in salaries and employee benefits resulting from one-time change in control payments incurred during the year ended June 30, 2024, a $909,000, or 29.3%, decrease in data processing expense due to a $414,000 early termination fee and a $242,000 deconversion fee incurred during the year ended June 30, 2024, all related to the Merger. Income Tax Expense. The provision for income taxes was $1.0 million for the year ended June 30, 2025, compared to a benefit of $909,000 for the year ended June 30, 2024. The Bank's effective tax rate was 21.6% for the year ended June 30, 2025 compared to 7.7% for the year ended June 30, 2024. Comparison of Financial Condition at June 30, 2025 and June 30, 2024 Assets. Assets increased $62.2 million, or 6.1%, to $1.08 billion at June 30, 2025 from $1.02 billion at June 30, 2024. The increase was primarily driven by new loan originations, resulting in a net increase of $65.5 million in loans receivable and an $11.9 million increase in cash and cash equivalents, offset by a $14.3 million decrease in securities. Cash and Cash Equivalents. Cash and cash equivalents increased $11.9 million, or 25.9%, to $57.8 million at June 30, 2025 from $45.9 million at June 30, 2024 primarily due to a $38.9 million increase in deposits, borrowings of $30.0 million from the Federal Home Loan Bank of New York during the year ended June 30, 2025 and the decrease in securities. Securities. Securities held-to-maturity decreased $14.3 million, or 9.2%, to $141.8 million at June 30, 2025 from $156.1 million at June 30, 2024. The decrease was primarily due to principal repayments and maturities. Loans. Loans receivable, net, increased $65.5 million, or 8.9%, to $797.3 million at June 30, 2025 from $731.9 million at June 30, 2024, driven by increases in residential mortgage loans of $32.6 million and multi-family loans of $40.0 million. Deposits. Deposits increased $38.9 million, or 4.8%, to $846.0 million at June 30, 2025 from $807.1 million at June 30, 2024. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on certain interest-bearing deposit products in an effort to remain competitive in the market area. At June 30, 2025, $114.1 million, or 13.5%, of total deposits consisted of noninterest-bearing deposits. At June 30, 2025, $145.4 million, or 17.2%, of total deposits were uninsured. Borrowings. During the year ended June 30, 2025, the Bank borrowed $30.0 million from the Federal Home Loan Bank of New York to provide for additional liquidity to fund new loans. At June 30, 2024, there were no outstanding borrowings. Equity. Equity decreased $7.1 million, or 3.6%, to $192.4 million at June 30, 2025 from $199.5 million at June 30, 2024. The decrease was primarily due to the repurchase of 936,991 shares of common stock at a cost of $11.3 million, partially offset by net earnings of $3.7 million. About Somerset Regal Bank Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At June 30, 2025, Somerset Regal Bank had $1.08 billion in total assets, $797.3 million in net loans, $846.0 million in deposits and total equity of $192.4 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com. Forward-Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement. NON-GAAP FINANCIAL INFORMATION This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. View original content to download multimedia:https://www.prnewswire.com/news-releases/sr-bancorp-inc-announces-fourth-quarter-and-annual-financial-results-302519027.html SOURCE SR Bancorp, Inc.