SR Bancorp (SRBK) is:

• Like a newly public regional bank in New Jersey, similar to a much smaller Valley National Bancorp (VLY) focused on specific counties.
• Think of it as a local New Jersey community bank providing everyday financial services, much like a neighborhood branch of TD Bank, but operating as an independent, publicly traded company.

Major products and services of SR Bancorp (SRBK):

• Deposit Products: Services enabling individuals and small businesses to securely save money, including checking accounts, savings accounts, and certificates of deposit.
• Loan Products: Financial services providing credit to individuals and small businesses, encompassing mortgages, consumer loans, and commercial loans.

```html

SR Bancorp (SRBK), through its subsidiary Somerset Savings Bank, primarily sells its financial products and services to individuals and small businesses within its primary market in New Jersey. As a bank, it serves a diverse customer base rather than having a few major corporate customers.

The categories of customers it serves are:

1. Individuals: These customers utilize a variety of deposit products such as checking accounts, savings accounts, and certificates of deposit, as well as loan products including mortgages, home equity loans, and other consumer loans for personal use.
2. Small Businesses: This category includes local enterprises that rely on the bank for business deposit accounts (checking and savings), and various lending solutions such as commercial real estate loans, lines of credit, and term loans to support their operations and growth.

```

null

Christopher J. Pribula, President and Chief Executive Officer Mr. Pribula is the President and Chief Executive Officer of SR Bancorp and Somerset Regal Bank, a position he assumed on January 1, 2026. Prior to this, he served as President and Chief Operating Officer of SR Bancorp and Somerset Regal Bank from September 2023 through December 2025. Mr. Pribula's tenure with the bank began in 2006, and he previously held the role of President and Chief Operating Officer of Somerset Savings Bank since 2019. Harris M. Faqueri, Senior Vice President and Chief Financial Officer Mr. Faqueri serves as Senior Vice President and Chief Financial Officer of SR Bancorp and Somerset Regal Bank. His previous role was Vice President and Chief Financial Officer of Somerset Savings Bank, which he held since March 2021. Before joining Somerset Savings Bank, Mr. Faqueri was Vice President, Accounting at Investors Bank, Short Hills, New Jersey. David M. Orbach, Executive Chairman Mr. Orbach is the Executive Chairman of SR Bancorp. He also serves as the Executive Vice Chairman of Somerset Regal Bank. Prior to the merger with Somerset Savings Bank in 2023, Mr. Orbach was the Executive Chairman of Regal Bancorp since its formation and Executive Chairman of Regal Bank since 2011. Neil C. Viotto, Executive Vice President and Chief Operating Officer Mr. Viotto was promoted to Executive Vice President and Chief Operating Officer of SR Bancorp and Somerset Regal Bank, effective January 1, 2026. He rejoined the bank in October 2022 as Senior Vice President—Senior Mortgage Lending Officer. His earlier tenure with Somerset Savings Bank was from 2011 to 2021, where he served as Loan Originations Manager. Between his two stints at the bank, he was the Director of Residential Lending for Peapack Gladstone Bank from May 2021 to October 2022. William P. Taylor, Executive Vice Chairman Mr. Taylor retired as Chief Executive Officer of SR Bancorp and Somerset Regal Bank, effective January 1, 2026, after a 42-year career with the company. He remains a director of the company and serves as Executive Vice Chairman of the Bank. Mr. Taylor joined the bank in 1983 as Assistant Vice President and Controller, advancing to President in 2009 and CEO in 2013. During his leadership, he oversaw the bank's conversion to a public company and its merger with Regal Bank in 2023.

Here are the key risks to SR Bancorp (SRBK):

1. Execution Risk of Conversion, Stock Offering, and Acquisition Integration: SR Bancorp is a newly formed entity whose existence and initial operations are contingent upon the successful completion of several complex, foundational transactions. These include its conversion from a mutual to a stock form of organization, the associated stock offering to raise capital, and the acquisition and subsequent integration of Regal Bancorp. Risks encompass potential delays, failure to secure all necessary regulatory and shareholder approvals, challenges in achieving the anticipated capital raise, and difficulties in integrating the operations, systems, and cultures of Somerset Savings Bank and Regal Bancorp. Failure to successfully execute any of these critical steps could severely impact SR Bancorp's formation, financial stability, and strategic growth.
2. Interest Rate Risk: As a financial institution that offers a variety of deposit and loan products, SR Bancorp (through Somerset Savings Bank) is inherently exposed to significant interest rate risk. Changes in prevailing interest rates can adversely affect its net interest income, which is the difference between interest earned on assets (like loans) and interest paid on liabilities (like deposits). Rapid or unexpected fluctuations in interest rates could lead to a decrease in profitability, impact its ability to attract and retain deposits, and affect the value of its investment portfolio.
3. Credit Risk and Geographic Concentration: Somerset Savings Bank primarily serves individuals and small businesses within specific New Jersey counties (Hunterdon, Middlesex, and Somerset, expanding into Essex, Morris, and Union with the acquisition of Regal Bancorp). This geographic concentration exposes SR Bancorp to credit risk, which is the risk that borrowers will default on their loans. A localized economic downturn, industry-specific challenges, or an increase in unemployment within these operating regions could lead to a deterioration in the quality of its loan portfolio and an increase in loan losses, disproportionately impacting its financial performance.

null

Addressable Markets for SR Bancorp's Main Products and Services

SR Bancorp, through its subsidiary Somerset Savings Bank, offers a variety of deposit and loan products to individuals and small businesses. The addressable markets for these main products and services are as follows:

• Commercial Banking Industry (Deposits and Loans): The market size for the Commercial Banking industry in New Jersey, which includes receiving deposits from customers and issuing consumer, commercial, and industrial loans, is projected to be $50.6 billion in 2026. This market size is for the state of New Jersey.
• Total Deposits: The total deposits held by banks operating in New Jersey amounted to $431 billion in 2024. This market size is for the state of New Jersey.
• Real Estate Loans & Collateralized Debt: The market size for Real Estate Loans & Collateralized Debt in New Jersey is estimated at $9.1 billion in 2026. This market size is for the state of New Jersey.
• New Home Loans: New home loans booked in New Jersey totaled $29.1 billion in 2024. This market size is for the state of New Jersey.
• Small Business Loans: Small business loans in New Jersey amounted to $21.6 billion in 2024. This market size is for the state of New Jersey. Community banks in New Jersey provided $9.5 billion in Small Business Administration (SBA) loans to small businesses between 2010 and 2025. This market size is for the state of New Jersey.

SR Bancorp (NASDAQ: SRBK) is anticipated to drive future revenue growth over the next two to three years through a combination of strategic acquisitions, expansion of its loan portfolio, and the introduction of enhanced commercial banking products and services.

Here are the key drivers:

1. Expanded Market Presence and Integration of Regal Bancorp: The acquisition of Regal Bancorp, Inc., which closed in September 2023, significantly broadened SR Bancorp's geographic footprint. This merger expanded the company's market presence into Essex, Morris, and Union Counties, New Jersey, while enhancing its existing presence in Somerset County, New Jersey. The combined entity, operating as Somerset Regal Bank, now manages 17 branches, a substantial increase from Somerset Savings Bank’s previous seven branches. This expansion is expected to drive revenue through a larger customer base and increased lending opportunities in these new and existing markets.
2. Growth in Commercial Lending and Enhanced Products: The merger with Regal Bancorp introduced valuable "commercial lending expertise" to the combined organization, a key factor expected to support future growth. Along with the conversion to a New Jersey-chartered commercial bank, SR Bancorp is positioned to offer an expanded range of commercial loan products and financial services. Management has indicated that the merger will allow them to "deliver enhanced products to our customers" and expand lending capabilities. The company's balance sheet repositioning strategy in May 2024, which involved selling lower-yielding securities to reinvest in higher-yielding residential and commercial real estate mortgages, further emphasizes a focus on growing interest income from a more robust loan portfolio.
3. Expansion of Loan Portfolio: SR Bancorp has consistently focused on expanding its loan portfolio. Recent financial results highlight this emphasis, with total net loans increasing to $835.4 million by December 31, 2025, a 4.8% rise, and further increasing to $826.4 million by September 30, 2025. This growth has been fueled by increases in both residential mortgage and commercial loans, driven by new originations and the strategic deployment of funds. The company specifically notes that interest income on loans has increased due to a larger loan portfolio and a higher average yield, particularly from commercial real estate loans.
4. Strategic Deposit Base Management: To support its loan growth initiatives, SR Bancorp is actively managing and expanding its deposit base. Total deposits grew to $891.5 million by December 31, 2025, and reached $869.6 million by September 30, 2025. The bank has proactively raised rates on certain money market and time deposit accounts to remain competitive and attract deposits, which are crucial for funding its lending activities and overall growth strategy.

Share Repurchases

• SR Bancorp adopted its first stock repurchase program on September 20, 2024, authorizing the repurchase of up to 950,793 shares, which was approximately 10% of its outstanding common stock.
• As of December 31, 2024, SR Bancorp had repurchased 347,067 shares at an average price of $11.29 each.
• A second stock repurchase program was authorized on July 8, 2025, for up to 10% of its outstanding common stock (886,137 shares), set to commence after the completion of the first program.

Share Issuance

• SR Bancorp sold 9,055,172 shares of its common stock at $10.00 per share in its initial public offering, completed on September 19, 2023.
• The net proceeds from the initial public offering amounted to $86.9 million.
• Upon completion of the conversion and offering, 9,507,930 shares of SR Bancorp common stock were outstanding, which included 452,758 shares and $905,517 in cash contributed to the Somerset Regal Charitable Foundation, Inc.

Outbound Investments

• SR Bancorp completed the acquisition of Regal Bancorp, Inc. on September 19, 2023, coinciding with the closing of its conversion and stock offering.
• The aggregate cost of the Regal Bancorp merger was approximately $69.5 million, with each outstanding share of Regal Bancorp common stock converted into the right to receive $23.00 in cash.
• This acquisition expanded SR Bancorp's market presence into Essex, Morris, and Union Counties, New Jersey.

Capital Expenditures

• In the last 12 months, SR Bancorp's capital expenditures totaled -$820,000.
• In Q2 2026, SR Bancorp invested $570 in capital expenditures, focusing on funding long-term assets and infrastructure.