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Analogy 1: SRBK is like Bank of America for the Danbury, Connecticut community.

Analogy 2: SRBK is like Chase Bank for the local Connecticut community.

Analogy 3: SRBK is like a smaller, community-oriented Wells Fargo.

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Major Products and Services of SR Bancorp (SRBK)

• Deposit Services: Attracting funds from individuals and businesses through various account types, including checking, savings, money market, and certificates of deposit.
• Residential Mortgage Lending: Providing loans to individuals for the purchase or refinancing of one-to-four family and multi-family residential properties.
• Commercial Real Estate Lending: Offering financing solutions to businesses for the acquisition, development, or refinancing of commercial properties.
• Commercial Business Lending: Extending loans to businesses for purposes such as working capital, equipment financing, and other operational needs.
• Consumer Lending: Providing various loans to individuals, including home equity lines of credit, automobile loans, and other personal loans.

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SR Bancorp (SRBK) is a bank holding company for Somerset Savings Bank, a community bank headquartered in New Jersey. As a financial institution, it does not sell products or services primarily to other companies in the traditional sense where those companies would then resell SRBK's offerings or incorporate them into their own products. Instead, SR Bancorp provides financial services directly to a diverse base of customers, primarily individuals and businesses within its operating area.

The categories of customers that SR Bancorp serves are:

• Individuals and Households: This category includes consumers who utilize the bank for a wide range of personal banking services such as checking accounts, savings accounts, money market accounts, certificates of deposit, residential mortgage loans, home equity loans and lines of credit, and various other consumer loans.

• Businesses: SR Bancorp serves small to medium-sized businesses and non-profit organizations, offering commercial deposit accounts, business checking, commercial and industrial (C&I) loans, lines of credit, term loans, and treasury management services to support their operational and growth needs.

• Commercial Real Estate Investors and Developers: A significant portion of a community bank's loan portfolio often consists of commercial real estate (CRE) loans. SR Bancorp provides financing for the acquisition, development, and refinancing of income-producing properties such as multi-family residential buildings, office buildings, retail centers, and industrial properties to local investors and developers.

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• Fidelity National Information Services, Inc. (Symbol: FIS)
• Federal Home Loan Bank of New York

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William P. Taylor, Chief Executive Officer and Executive Vice Chairman

Mr. Taylor has served as Chief Executive Officer of SR Bancorp Inc. since December 2012, with a tenure of over 12 years. He has been a Director of SR Bancorp Inc. since 2007. Previously, Mr. Taylor was Chairman of the Board of Somerset Savings Bank since 2018, and served as its Chief Executive Officer since 2013 and President since 2009. He joined Somerset Savings Bank in 1983 as an assistant vice president and controller. Mr. Taylor holds a Bachelor's of Science degree in accounting from Wake Forest University.

Harris M. Faqueri, Vice President and Chief Financial Officer

Mr. Faqueri serves as Vice President and Chief Financial Officer of SR Bancorp and Somerset Regal Bank. Prior to this role, he was the Vice President and Chief Financial Officer of Somerset Savings Bank since March 2021. Before joining Somerset Savings Bank, Mr. Faqueri held the position of Vice President, Accounting at Investors Bank in Short Hills, New Jersey.

David M. Orbach, Executive Chairman

Mr. Orbach has been the Executive Chairman of SR Bancorp and Executive Vice Chairman of Somerset Regal Bank since September 2023, following SR Bancorp's acquisition of Regal Bancorp and its subsidiary Regal Bank. He previously served as Executive Chairman of the Board of Regal Bancorp since its formation in 2017 and of Regal Bank since 2011. Mr. Orbach was the lead organizer in founding Regal Bank in 2007. From 2005 to 2011, he was the Managing Partner and Founder of Gallant Funding, L.P., a private mezzanine and bridge lending company focused on commercial real estate in the New Jersey and New York regions. Before founding Gallant, Mr. Orbach served as Vice President and General Counsel, as well as a Director and Corporate Secretary, of NorCrown Bank.

Christopher J. Pribula, President and Chief Operating Officer

Mr. Pribula is the President and Chief Operating Officer of SR Bancorp and Somerset Regal Bank. He previously held the roles of President and Chief Operating Officer of Somerset Savings Bank since 2019, and Executive Vice President and Chief Operating Officer starting in 2013. Mr. Pribula joined Somerset Savings Bank in 2006 as Vice President – Operations Division Manager. His career includes experience at several other community banks, such as The Chatham Trust Company, West Jersey Community Bank, Prestige State Bank, and Somerset Hills Bank, before his tenure at Somerset Savings Bank.

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The key risks to SR Bancorp's business (SRBK) are primarily centered around interest rate fluctuations, intense market competition, and a significant concentration in residential mortgage loans.

1. Net Interest Margin Compression and Interest Rate Risk: SR Bancorp has experienced a decrease in its net interest margin, primarily because the cost of interest-bearing liabilities has risen at a higher rate than the yield on its interest-earning assets. For example, the net interest margin decreased to 2.88% for the three months ended December 31, 2024, from 3.56% a year prior. This indicates a challenge in maintaining profitability in a dynamic interest rate environment, where funding costs are increasing faster than the returns generated from loans and other interest-earning assets.

2. Competition for Deposits and Loans: The company operates in a competitive market and faces significant competition in attracting deposits and originating loans. This intense competition could potentially constrain SR Bancorp's future growth and its ability to expand its market share in the New Jersey counties it serves.

3. Concentration in Residential Mortgage Loans: A substantial portion of SR Bancorp's loan portfolio is concentrated in residential loans, including one-to four-family residential mortgages. At June 30, 2023, residential mortgage loans comprised 97.8% of its total loan portfolio. This high concentration exposes the company to risks associated with the residential real estate market, such as potential downturns in property values, changes in borrower repayment capabilities, or shifts in demand for such loans.

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• Increased competition from digital-first banks (neobanks) and financial technology (Fintech) companies that offer streamlined user experiences, lower fees, and often more attractive interest rates on deposits, thereby attracting younger, digitally-native customers and eroding SRBK's traditional market share.
• Pressure on Net Interest Margin (NIM) due to the rising cost of deposits. Consumers, now more digitally savvy and rate-sensitive, can easily shift funds to online-only banks or money market funds offering higher yields, forcing SRBK to increase its deposit rates to remain competitive and retain its customer base.
• Rapidly evolving customer expectations for seamless digital banking services. Failure to continually invest in and enhance mobile banking apps, online account opening, and other digital interfaces to match industry leaders could lead to customer dissatisfaction and attrition among current and prospective clients who prioritize digital convenience.

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Addressable Market Sizes for SR Bancorp's Main Products and Services in New Jersey

Commercial Banking Market (New Jersey)

Residential Mortgage Market (New Jersey)

Commercial Real Estate Lending Market (New Jersey)

Deposit Market (New York-Newark-Jersey City, NY-NJ-PA MSA)

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SR Bancorp (SRBK) is anticipated to drive future revenue growth over the next two to three years through several key strategies:

• Expansion of Loan Portfolio: The company has demonstrated consistent growth in its loan portfolio, particularly in residential mortgages and multi-family loans. Net loans increased by 8.9% to $797.3 million in fiscal year 2025. This trend continued into Q3 2025, with net loans rising to $826.4 million, a 3.7% increase from June 30, 2025. Continued emphasis on originating new loans in these segments is expected to be a primary revenue driver.
• Growth in Deposit Base: Increasing total deposits provides SR Bancorp with a stable and expanded funding base for its lending activities. Total deposits rose by 4.8% year-over-year in fiscal 2025, reaching $846.0 million. By Q3 2025, deposits further increased to $869.6 million, up 2.8% from the previous quarter. Sustained growth in deposits is crucial for supporting asset expansion and overall revenue.
• Synergies from Regal Bancorp Merger: The successful integration of Regal Bancorp, acquired in September 2023, is expected to yield long-term benefits. After the completion of merger-related restructuring, the absence of associated one-time costs contributed to a return to profitability in Q4 2025. SR Bancorp aims to leverage its enhanced capital base and achieve improved interest income and efficient expense management as a result of the merger.
• Optimization of Net Interest Income: While net interest margin has faced pressure from rising deposit costs, the bank's strategy involves improving overall interest income. This will likely be achieved by balancing loan growth with effective management of funding costs and yields on interest-earning assets. Interest income increased by 4.1% to $11.9 million in Q3 2025 due to an increase in the average balance of interest-earning assets, primarily loans.

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Share Repurchases

• SR Bancorp authorized a second stock repurchase program on July 8, 2025, allowing for the buyback of up to 886,137 shares, representing 10% of its outstanding common stock.
• The second program is expected to commence after the completion of the first repurchase program, which had 13,802 shares remaining.
• The company's first stock repurchase program, adopted on September 20, 2024, authorized the repurchase of up to 950,793 shares, which was approximately 10% of its common stock at the time, following its stock offering in September 2023.

Share Issuance

• SR Bancorp completed its mutual-to-stock conversion and related stock offering on September 19, 2023.
• In this offering, 9,055,172 shares of common stock were sold at $10.00 per share, including 760,364 shares acquired by Somerset Regal Bank's Employee Stock Ownership Plan.
• Following the conversion and offering, a total of 9,507,930 shares of SR Bancorp common stock were outstanding.

Outbound Investments

• On September 19, 2023, SR Bancorp acquired Regal Bancorp, Inc., which was immediately followed by the merger of Regal Bank (Regal Bancorp's subsidiary) into Somerset Savings Bank, resulting in the renamed Somerset Regal Bank.
• The total cost for the acquisition of Regal Bancorp, Inc. was approximately $69.5 million.
• This merger strategically expanded SR Bancorp's market presence into Essex, Morris, and Union Counties, New Jersey, and strengthened its position in Somerset County.