Controls and Procedures.
−Removed: (a) Evaluation of disclosure controls and procedures.
+Added: Evaluation of disclosure controls and procedures.
Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the fiscal year (the “Evaluation Date”).
−Removed: Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were not effective because of the material weakness described below.
−Removed: (b) Management’s Annual Report on Internal Control over Financial Reporting.
+Added: Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were operating effectively.
+Added: Management’s Annual Report on Internal Control over Financial Reporting.
Our management is responsible for establishing and maintaining effective internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).
Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we evaluated the effectiveness of our internal control over financial reporting based on criteria established in “Internal Control — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: Based on this assessment, management, including our Principal Executive Officer and Principal Financial Officer, concluded that our internal control over financial reporting was not effective as of June 30, 2025 based on the criteria of the “Internal Control — Integrated Framework (2013).” Management identified a material weakness in internal controls related to the untimely recognition of income from life insurance contracts resulting from the death of a former employee.
+Added: Based on this assessment, management, including our Principal Executive Officer and Principal Financial Officer, concluded that our internal control over financial reporting was operating effectively as of June 30, 2026 based on the criteria of the “Internal Control — Integrated Framework (2013).” As of June 30, 2025, our management identified a material weakness in internal controls related to the untimely recognition of income from life insurance contracts resulting from the death of a former employee.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the registrant’s annual or interim financial statements will not be prevented or detected on a timely basis.
−Removed: The identified
−Removed: material weakness resulted in a material misstatement in the Company’s consolidated financial statements.
−Removed: We are implementing remedial changes to improve our internal control over financial reporting described below.
−Removed: (c) Remediation Activities
−Removed: Management has instituted a new reconciliation control to address the above control deficiency.
−Removed: The deficiency originated from differences in the contract balances reported by our bank-owned life insurance (“BOLI”) administrator as compared to the underlying insurance carriers.
−Removed: The new control requires that in the event of a death of an individual insured by any active BOLI policies, management will obtain the death benefit information for which it is contractually entitled to receive from the insurance carriers and reconcile such information to the BOLI administrator records.
−Removed: All required entries will be recorded in the period in which the death occurred.
−Removed: Management believes the foregoing efforts will effectively remediate the material weakness.
−Removed: As management continues to evaluate and work to improve its internal control over financial reporting, management may determine to take additional measures to address control deficiencies or determine to modify the remediation plan described above.
−Removed: (d) Attestation Report of the Registered Public Accounting Firm.
+Added: The identified material weakness resulted in a material misstatement in the Company’s consolidated financial statements for the year ended June 30, 2025.
+Added: Management has since remediated that deficiency as described below.
+Added: Remediation Activities
+Added: Management has designed and implemented a new reconciliation control to address the material weakness identified as of June 30, 2025.
+Added: The material weakness resulted from differences between the contract balances reported by our bank-owned life insurance (“BOLI”) administrator and the balances reported by the underlying insurance carriers.
+Added: The new control requires management, at least annually and as of any reporting period immediately following the death of an individual insured under an active BOLI policy, to obtain policy balances directly from the applicable insurance carriers and reconcile those balances to the records provided by our BOLI administrator.
+Added: Management tested the design and operating effectiveness of this control and, based on the results of such testing, concluded that the control was operating effectively as of June 30, 2026.
+Added: Accordingly, management concluded that the material weakness identified as of June 30, 2025 had been remediated as of June 30, 2026.
+Added: Attestation Report of the Registered Public Accounting Firm.
Not applicable because the Company is an emerging growth company.
−Removed: (e) Changes in internal controls.
−Removed: Other than the changes described above, there were no changes in our internal control over financial reporting that occurred during the fourth quarter of fiscal 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: Changes in internal controls.
+Added: Other than the changes described above, there were no changes in our internal control over financial reporting that occurred during the fiscal year that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Other Information.
−Removed: No t applicable.
−Removed: Disclo sure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
+Added: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
+Added: Not applicable.
Directors, Executive Officers and Corporate Governance.
−Removed: Information regarding directors, executive officers and corporate governance of the Company is presented under the headings “Other Information Relating to Directors and Executive Officers — Delinquent Section 16(a) Reports Compliance,” “Proposal 1 — Election of Directors,” “Corporate Governance — Code of Ethics for Senior Officers,” “Corporate Governance — Insider Trading Policy” and “— Committees of the Board of Directors — Audit Committee” in the Company’s definitive Proxy Statement for the 2025 Annual Meeting of Stockholders (the “Proxy Statement”) and is incorporated herein by reference.
+Added: Information regarding directors, executive officers and corporate governance of the Company is presented under the headings “Other Information Relating to Directors and Executive Officers — Section 16 (a) Beneficial Ownership Reporting Compliance,” “Proposal 1 — Election of Directors,” “Corporate Governance — Code of Ethics for Senior Officers,” “Corporate Governance — Insider Trading Policy” and “Corporate Governance — Committees of the Board of Directors — Audit Committee” in the Company’s definitive Proxy Statement for the 2026 Annual Meeting of Stockholders (the “Proxy Statement”) and is incorporated herein by reference.
A copy of the Code of Ethics for Senior Officers is available to shareholders in the “Corporate Governance Documents” section of the “Investor Relations” portion of Somerset Regal Bank’s website of www.somersetregalbank.com .
5 unchanged sentences
The following table sets forth information regarding outstanding options and shares under the 2024 Equity Incentive Plan at June 30, 2026:
+Added: Securities to be
+Added: Remaining for
+Added: Future Issuance
+Added: Exercise Price
+Added: of Outstanding
Plan Category
−Removed: Number of Securities to be Issued Upon Exercise of Outstanding Options
−Removed: Weighted-Average Exercise Price of Outstanding Options
−Removed: Number of Securities Remaining for Future Issuance under Equity Compensation Plans
Equity Compensation Plans Approved by Security Holders
5 unchanged sentences
Exhibits, Financial Statement Schedules.
−Removed: (a) Financial Statements and Schedules:
+Added: Financial Statements and Schedules:
Consolidated Financial Statements of SR Bancorp and Subsidiaries
1 unchanged sentence
Consolidated Statements of Financial Condition as of June 30, 2026 and 2025
−Removed: Consolidated Statements of Income (Loss) for the years ended June 30, 2025 and 2024
−Removed: Consolidated Statements of Comprehensive Income (Loss) for the years ended June 30, 2025 and 2024
+Added: Consolidated Statements of Income for the Years Ended June 30, 2026 and 2025
+Added: Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2026 and 2025
Consolidated Statements of Changes in Equity for the Years Ended June 30, 2026 and 2025
10 unchanged sentences
(Incorporated by reference to the Registrant's Annual Report on Form 10-K (File No.
−Removed: 001-41808) filed on October 15, 2024)
+Added: 001-41808) filed on September 28, 2023)
Form of Common Stock Certificate of SR Bancorp, Inc.
3 unchanged sentences
001-41808) filed on October 16, 2024)
−Removed: Employment Agreement, dated July 25, 2022, by and between Somerset Regal Bank, SLA and William P.
−Removed: Taylor (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No.
−Removed: 333-270489) as initially filed on March 13, 2023)
−Removed: Employment Agreement, dated July 25, 2022, by and between Somerset Regal Bank, SLA and Christopher J.
−Removed: Pribula (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No.
−Removed: 333-270489) as initially filed on March 13, 2023)
−Removed: Employment Agreement, dated July 25, 2022, by and between Somerset Regal Bank, SLA and David Orbach (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No.
−Removed: 333-270489) as initially filed on March 13, 2023)
+Added: Amended and Restated Employment Agreement, dated April 22, 2026, by and between Somerset Regal Bank and William P.
+Added: Taylor (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No.
+Added: 001-41808) as filed on April 24, 2026)
+Added: Amended and Restated Employment Agreement, dated April 22, 2026, by and between Somerset Regal Bank and Christopher J.
+Added: Pribula (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No.
+Added: 001-41808) as filed on April 24, 2026)
+Added: Amended and Restated Employment Agreement, dated April 22, 2026, by and between Somerset Regal Bank and David Orbach (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No.
+Added: 001-41808) as filed on April 24, 2026)
Somerset Savings Bank Supplemental Executive Retirement Plan (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No.
2 unchanged sentences
333-270489) as initially filed on March 13, 2023)
+Added: Employment Agreement, dated April 22, 2026, by and between Somerset Regal Bank and Neil Viotto.
Somerset Regal Bank Supplemental Executive Retirement Plan (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No.
13 unchanged sentences
SR Bancorp, Inc.
−Removed: Clawback Policy*
+Added: Clawback Policy (Incorporated by reference to the Registrant’s Annual Report on Form 10-K (File No.
+Added: 001-41808) as filed on September 29, 2025)
Inline XBRL Instance Document –the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
1 unchanged sentence
Cover Page Interactive Data File (embedded within the Inline XBRL document)
+Added: # Indicates a management contract or compensatory plan or arrangement.
* Filed herewith.
2 unchanged sentences
September 25, 2026
−Removed: /s/ William P.
+Added: /s/ Christopher J.
+Added: Christopher J.
Chief Executive Officer
1 unchanged sentence
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.
−Removed: /s/ William P.
+Added: /s/ Christopher J.
Director and Chief Executive Officer
1 unchanged sentence
September 25, 2026
+Added: Christopher J.
/s/ Harris M.
2 unchanged sentences
September 25, 2026
−Removed: /s/ Christopher J.
−Removed: Director, President and Chief Operating Officer
+Added: Executive Chairman
September 25, 2026
−Removed: Christopher J.
−Removed: Director (Executive Chairman)
+Added: /s/ William P.
+Added: Executive Vice Chairman
September 25, 2026
8 unchanged sentences
Marc Lebovitz
+Added: /s/ Robert Mustard
+Added: September 25, 2026
+Added: Robert Mustard
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
1 unchanged sentence
Consolidated Statements of Financial Condition as of June 30, 2026 and 2025
−Removed: Consolidated Statements of Income (Loss) for the years ended June 30, 2025 and 2024
−Removed: Consolidated Statements of Comprehensive Income (Loss) for the years ended June 30, 2025 and 202 4
+Added: Consolidated Statements of Income for the Years Ended June 30, 2026 and 2025
+Added: Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2026 and 2025
Consolidated Statements of Changes in Equity for the Years Ended June 30, 2026 and 2025
1 unchanged sentence
Notes to Consolidated Financial Statements.
−Removed: REPORT OF INDEPENDENT REGIS TERED PUBLIC ACCOUNTING FIRM
−Removed: To the stakeholders and the Board of Directors of SR Bancorp Inc:
+Added: REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
+Added: To the shareholders and the Board of Directors of SR Bancorp Inc:
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial condition of SR Bancorp Inc.
−Removed: and Subsidiaries (the "Company") as of June 30, 2025 and June 30, 2024, the related consolidated statements of income, comprehensive income (loss), changes in equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "consolidated financial statements").
+Added: and Subsidiaries (the "Company") as of June 30, 2026 and June 30, 2025, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "consolidated financial statements").
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and June 30, 2025, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.
4 unchanged sentences
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America.
+Added: We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
23 unchanged sentences
Equity securities, at fair value
−Removed: Loans receivable, net of allowance for credit losses of $ 5,362 and
−Removed: $ 5,229 , respectively
+Added: Loans receivable, net of allowance for credit losses of $ 5,938 and $ 5,362 , respectively
Premises and equipment, net
15 unchanged sentences
Common stock, $ 0.01 par value, 50,000,000 authorized;
−Removed: 8,875,170 and 9,507,930 shares issued and outstanding
−Removed: as of June 30, 2025, and June 30, 2024, respectively
+Added: 7,934,356 and 8,875,170 shares issued and outstanding as of June 30, 2026 and June 30, 2025, respectively
Additional paid-in capital
7 unchanged sentences
and Subsidiaries
−Removed: Consolidated Statem ents of Income (Loss)
+Added: Consolidated Statements of Income
For the Years Ended June 30, 2026 and 2025
4 unchanged sentences
Securities, taxable
−Removed: Federal funds sold
Interest bearing deposits at other banks
6 unchanged sentences
Net Interest Income After Provision For Credit Losses
−Removed: Noninterest Income (Loss)
+Added: Noninterest Income
Service charges and fees
1 unchanged sentence
Fees and service charges on loans
−Removed: Unrealized gain on equity securities
−Removed: Realized loss on sale of securities
−Removed: Gain on sale of loans
+Added: Unrealized (loss) gain on equity securities
+Added: Realized gain on sale of loans
Gains from life insurance proceeds
−Removed: Total noninterest income (loss)
+Added: Total noninterest income
Noninterest Expense
7 unchanged sentences
Total noninterest expense
−Removed: Income (Loss) Before Income Tax Expense (Benefit)
−Removed: Income Tax Expense (Benefit)
−Removed: Net Income (Loss)
−Removed: Basic earnings (loss) per share
−Removed: Diluted earnings (loss) per share
−Removed: Weighted average number of common
−Removed: shares outstanding - basic
−Removed: Weighted average number of common
−Removed: shares outstanding - diluted
+Added: Income Before Income Tax Expense
+Added: Income Tax Expense
+Added: Basic earnings per share
+Added: Diluted earnings per share
+Added: Weighted average number of common shares outstanding - basic
+Added: Weighted average number of common shares outstanding - diluted
The accompanying notes are an integral part of these consolidated financial statements.
1 unchanged sentence
and Subsidiaries
−Removed: Consolidated Statements of Comprehensive Income (Loss)
+Added: Consolidated Statements of Comprehensive Income
For the Years Ended June 30, 2026 and 2025
1 unchanged sentence
Year Ended June 30,
−Removed: Net Income (Loss)
−Removed: Other Comprehensive Income (Loss)
−Removed: Unrealized holding gains (losses) on securities available-for-sale
−Removed: arising during the year, net of income tax (expense) benefit of
−Removed: $ 0 and $( 119 ), respectively (a)
−Removed: Reclassification adjustment for losses on sale of securities included in
−Removed: net loss, net of income tax (expense) benefit of $ 0 and $( 1,154 ),
−Removed: Total change in unrealized gains
−Removed: Change in defined pension plan for unrealized actuarial gains net
−Removed: of income tax (expense) of $( 83 ), and $( 58 ), respectively (b)
+Added: Other Comprehensive Income
+Added: Change in defined pension plan for unrealized actuarial gains net of income tax (expense) of $( 106 ), and $( 83 ), respectively (a)
Total other comprehensive income
−Removed: Total comprehensive income (loss)
−Removed: (a) Income tax amounts on unrealized holding gains (losses) on securities available-for-sale are included in the net deferred tax asset described in Note 13.
−Removed: (b) Income tax amounts on the change in the defined benefit pension plan for unrealized actuarial gains (losses) are included in the net deferred tax asset described in Note 13.
+Added: Total comprehensive income
+Added: Income tax amounts on the change in the defined benefit pension plan for unrealized actuarial gains (losses) are included in the net deferred tax asset described in Note 12.
The accompanying notes are an integral part of these consolidated financial statements.
3 unchanged sentences
For the Years Ended June 30, 2026 and 2025
−Removed: (In thousands)
+Added: (In thousands, except share data)
Comprehensive
Balance, June 30, 2025
−Removed: Other comprehensive income,
−Removed: ESOP shares earned, 38,032
+Added: Other comprehensive income, net of tax
Repurchase of common shares
Cash dividends declared on common stock, $ 0.21 per share
−Removed: Restricted stock awards issued
+Added: ESOP shares earned, 38,032 shares
Stock-based compensation
+Added: Restricted stock awards issued
+Added: Exercise of stock options, net
+Added: Shares withheld for taxes on share-based awards
Balance, June 30, 2026
Balance, June 30, 2024
−Removed: Other comprehensive income,
−Removed: Cumulative adjustment for
−Removed: change in accounting principle
−Removed: Common stock issued,
−Removed: 9,507,930 shares
−Removed: Initial funding of ESOP, 760,634 shares
−Removed: ESOP shares committed for
−Removed: allocation to participants, 57,048 shares
+Added: Other comprehensive income, net of tax
+Added: ESOP shares earned, 38,032 shares
+Added: Repurchase of common shares
+Added: Cash dividends declared on common stock, $ 0.10 per share
+Added: Restricted stock awards issued
+Added: Stock-based compensation
Balance, June 30, 2025
7 unchanged sentences
Cash Flows from Operating Activities
−Removed: Net income (loss)
Adjustments to reconcile net income to net cash provided by operating activities:
−Removed: by operating activities:
Provision for credit losses
−Removed: Deferred income tax benefit
+Added: Deferred income taxes
Accretion of acquisition fair value adjustments, net
2 unchanged sentences
Net amortization of deferred loan fees, costs and discounts
−Removed: Amortization of right-of-use asset
Income from cash surrender value of bank owned life insurance
Stock-based compensation expense
−Removed: Unrealized gain on equity securities
−Removed: Loss on sale of investments, net
+Added: Unrealized loss (gain) on equity securities
Gain on sale of loans held for sale
1 unchanged sentence
Originations of loans held for sale
−Removed: Gain on sale of premises and equipment
−Removed: Noncash expense of common shares contributed to Somerset Regal Bank Charitable Foundation
(Increase) decrease in:
Accrued interest receivable
−Removed: Decrease in other liabilities
−Removed: Net cash provided by (used in) operating activities
+Added: Increase in other liabilities
+Added: Net cash provided by operating activities
Cash Flows from Investing Activities
−Removed: Proceeds from sales, maturities, and principal repayments of securities available-for-sale
Proceeds from maturities, calls and principal repayments of securities held-to-maturity
Proceeds from sale of securities available-for-sale
−Removed: Proceeds from sale of time deposits in other financial institutions
+Added: Purchase of securities held-to-maturity
Net increase in loans receivable
+Added: Purchases of bank owned life insurance
Purchases of premises and equipment
1 unchanged sentence
Purchase of restricted equity securities
−Removed: Cash paid for acquisition
−Removed: Cash received from acquisition
−Removed: Net cash (used in) provided by investing activities
+Added: Net cash used by investing activities
Cash Flows from Financing Activities
−Removed: Net increase (decrease) in interest bearing deposits
−Removed: Net increase (decrease) in non-interest bearing deposits
+Added: Net increase in interest bearing deposits
+Added: Net increase in non-interest bearing deposits
Net increase in advance payments by borrowers for taxes and insurance
Net increase in short-term borrowings
−Removed: Repayment of short-term borrowings
Dividends Paid
1 unchanged sentence
Repurchase of common stock
−Removed: Net cash provided by (used in) financing activities
+Added: Cash paid for excise taxes on repurchased shares
+Added: Exercise of stock options
+Added: Receipts from equity plan participants for withholding taxes on share-based awards
+Added: Cash paid for withholding taxes on share-based awards
+Added: Net cash provided by financing activities
Net increase in cash and cash equivalents
5 unchanged sentences
Income taxes paid
−Removed: Fair value of assets acquired, net of cash and cash equivalents acquired
−Removed: Goodwill recorded at merger
−Removed: Fair value of liabilities assumed
−Removed: Fair values of 452,758 common shares contributed to Somerset Regal Bank Charitable Foundation
The accompanying notes are an integral part of these consolidated financial statements.
3 unchanged sentences
June 30, 2026 and 2025
−Removed: Summary of Sig nificant Accounting Policies
−Removed: Conversion, Stock Offering and Merger
−Removed: The conversion of Somerset Savings Bank, SLA from the mutual to stock form of organization and related stock offering by SR Bancorp, Inc.
−Removed: (the "Company"), the holding company for Somerset Savings Bank, SLA, was completed on September 19, 2023.
−Removed: The Company’s common stock began trading on the Nasdaq Capital Market under the trading symbol “SRBK” on September 20, 2023.
−Removed: The Company sold 9,055,172 shares of its common stock at a price of $ 10.00 per share, which included 760,634 shares sold to Somerset Regal Bank’s Employee Stock Ownership Plan.
−Removed: Additionally, the Company 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.
−Removed: Upon the completion of the conversion and offering, 9,507,930 shares of Company common stock were outstanding.
−Removed: Promptly following the completion of the conversion and related stock offering, Regal Bancorp, Inc., a New Jersey corporation (“Regal Bancorp”), merged with and into the Company, with the Company as the surviving entity (the “Merger”).
−Removed: 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 had converted to a commercial bank charter, and was renamed Somerset Regal Bank (the “Bank”).
−Removed: In connection with the Merger, each outstanding share of Regal Bancorp common stock converted into the right to receive $ 23.00 in cash.
−Removed: The Merger was completed on September 19, 2023.
+Added: Summary of Significant Accounting Policies
The Company, a Maryland corporation, is the holding company for Somerset Regal Bank.
2 unchanged sentences
As a locally managed community bank, the Bank provides retail and commercial banking services to individuals, businesses and local municipalities through its 14 full-service branch locations.
+Added: Somerset Savings Bank converted from the mutual to stock form of organization and SR Bancorp, Inc.
+Added: (the "Company") completed its stock offering on September 19, 2023.
+Added: The Company’s common stock began trading on the Nasdaq Capital Market under the trading symbol “SRBK” on September 20, 2023.
+Added: Promptly following the completion of the conversion and related stock offering, Regal Bancorp, Inc., a New Jersey corporation (“Regal Bancorp”), merged with and into the Company, with the Company as the surviving entity (the “Merger”).
+Added: 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 had converted to a commercial bank charter, and was renamed Somerset Regal Bank (the “Bank”).
Principles of Consolidation
10 unchanged sentences
The financial information contained in this Annual Report on Form 10 -K as of and for the years ended June 30, 2026 and 2025 is for the Company and the Bank, unless indicated otherwise.
−Removed: However, due to the timing of the Merger, the statement of income (loss) and related disclosures only includes operations of Regal Bancorp and Regal Bank since September 19, 2023.
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S.
−Removed: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the periods then
−Removed: SR Bancorp, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
−Removed: June 30, 2025 and 2024
+Added: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the periods then ended.
Actual results could differ significantly from those estimates.
16 unchanged sentences
Consideration is given to performance of components of the business, such as branches and geographic regions, which are then aggregated.
−Removed: This information is used to achieve strategic initiatives by allowing the chief operation decision maker to manage resources that drive our business and earnings.
+Added: This information is used to achieve strategic initiatives by allowing the chief operating decision maker to manage resources that drive our business and earnings.
Additionally, consolidated net income is used to benchmark the Company against its banking peers.
3 unchanged sentences
The Company does not have any significant concentrations to any one industry or customer.
−Removed: Note 4 discuss the types of investment securities in which the Company invests.
+Added: Note 3 discusses the types of investment securities in which the Company invests.
Credit risk as it relates to investment activities is mitigated through the monitoring of ratings and the purchase of government-sponsored agency securities, backed by the full faith and credit of the United States.
3 unchanged sentences
The Company has not experienced any loss in such accounts.
−Removed: Adoption of Accounting Standards Codification Topic 326:
−Removed: Financial Instruments - Credit Losses ("ASC 326")
−Removed: On July 1, 2023, the Company adopted ASC 326 ("CECL"), which requires the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model, replacing the incurred loss model that was in use through June 30, 2023.
−Removed: Under this guidance, an entity measures all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable economic forecasts.
−Removed: The CECL model applies to loans and leases, unfunded lending commitments,
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: held-to-maturity debt securities and other debt instruments measured at amortized cost.
−Removed: The Company recorded the effect of implementing CECL using a modified-retrospective approach through a cumulative effect adjustment through retained earnings as of July 1, 2023, the beginning of the reporting period in which CECL became effective.
−Removed: The adoption of the new standard resulted in an increase to the allowance for credit losses on loans of $ 34,000 , net of tax.
−Removed: No allowances were recorded for investment securities or unfunded lending commitments at adoption, as the estimates of those losses were de minimus.
Investments in debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost.
3 unchanged sentences
Gain or loss on sales of securities is based on the specific identification method.
−Removed: Sales or dispositions of securities whose fair value exceed amortized cost are recognized in earnings.
−Removed: On a quarterly basis, the Company assesses investments with unrealized losses in its available-for-sale and held-to-maturity portfolios regarding its ability and intent to hold those investments until fair value equals or exceeds amortized cost.
Equity securities with readily determinable fair values are measured at fair value.
1 unchanged sentence
Dividends are included in interest income.
−Removed: In compliance with ASC 326, the Company conducted a review of its investment portfolio to determine the appropriate level of credit losses to reserve.
−Removed: The Company did no t record an allowance for credit losses ("ACL") on its available-for-sale ("AFS") securities during the years ended June 30, 2025 and 2024 or upon implementation of CECL on July 1, 2023.
−Removed: As of and for both periods, the Company considered the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit.
−Removed: As of June 30, 2025 , the Company had no AFS securities.
−Removed: As of June 30, 2024, the Company's AFS securities consisted primarily of highly-rated government sponsored agency ("GSE") residential mortgage-backed securities.
−Removed: The unrealized losses were higher due to market uncertainty resulting from inflation and rising interest rates from the time of the security purchase.
+Added: In compliance with Accounting Standards Topic 326:
+Added: Financial Instruments – Credit Losses (“ASC 326” ), the Company conducts periodic reviews of its investment portfolio to determine the appropriate level of its allowance for credit losses (“ACL”).
+Added: On a quarterly basis, the Company assesses investments with unrealized losses in its available-for-sale and held-to-maturity portfolios regarding its ability and intent to hold those investments until fair value equals or exceeds amortized cost.
The Company's held-to-maturity ("HTM") portfolio consists principally of highly-rated GSE residential mortgage-backed securities.
4 unchanged sentences
Based on its review of HTM securities, the Company deemed no ACL reserve was necessary for the years ended June 30, 2026 or 2025 .
−Removed: Loans Receivable
−Removed: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees and costs.
−Removed: Interest income is accrued on the unpaid principal balance and credited to income.
−Removed: Loan origination fees
+Added: The Company owned no available-for-sale ("AFS") securities at June 30, 2026 or 2025.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: and costs are deferred and recognized over the life of the loans as an adjustment to yield (interest income).
+Added: Loans Receivable
+Added: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees and costs.
+Added: Interest income is accrued on the unpaid principal balance and credited to income.
+Added: Loan origination fees and costs are deferred and recognized over the life of the loans as an adjustment to yield (interest income).
Discounts and premiums on purchased loans are amortized to income using the interest method over the expected lives of the loans.
1 unchanged sentence
multi-family real estate loans, owner occupied commercial real estate loans, other commercial real estate loans, commercial and industrial loans, residential mortgage loans and consumer loans.
−Removed: The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even when the loan is currently performing.
+Added: The accrual of interest is generally discontinued when the contractual payment of principal or interest has become over 90 days past due or management has serious doubts about further collectability of principal or interest, even when the loan is currently performing.
A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured.
5 unchanged sentences
The ACL is a significant accounting estimate used in the preparation of the Company's consolidated financial statements.
−Removed: Upon adoption of ASC 326 on July 1, 2023, the Company replaced the incurred loss impairment model with a requirement to recognize lifetime expected credit losses on loans and other financial instruments immediately when a financial asset is originated or purchased.
+Added: The Company recognizes lifetime expected credit losses on loans and other financial instruments immediately when a financial asset is originated or purchased is accordance with ASC 326.
The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.
17 unchanged sentences
and regulatory, legal and environmental events.
+Added: SR Bancorp, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
+Added: June 30, 2026 and
The ACL is increased by the provision for credit losses, and decreased by charge-offs, net of recoveries.
2 unchanged sentences
Because all identified losses are immediately charged off, no portion of the allowance for credit losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all credit losses.
−Removed: SR Bancorp, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
−Removed: June 30, 2025 and 2024
Mortgage loans are secured by the borrower’s residential or non-residential real estate in a first lien position.
13 unchanged sentences
As of June 30, 2026 , we had no assets designated as loss, doubtful, substandard or special mention.
−Removed: Prior to the adoption of ASC 326 on July 1, 2023, a loan was individually evaluated when the loan was considered impaired.
−Removed: A loan was considered individually impaired when, based on current information and events, it was probable that the Bank would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.
−Removed: Factors considered by management in determining whether a loan was individually impaired included payment status, collateral value and the probability of collecting scheduled principal and interest payments when due.
−Removed: Loans that experienced insignificant payment delays and payment shortfalls generally were not classified as individually impaired.
−Removed: Management determined the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.
−Removed: Impairment was measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan was collateral dependent.
−Removed: With the adoption of ASC 326, loans that do not share risk characteristics with existing pools are evaluated on an individual basis, such as collateral dependent loans.
+Added: Loans that do not share risk characteristics with existing pools are evaluated on an individual basis, such as collateral dependent loans.
The Company considers a loan to be collateral dependent when management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the financial asset is expected to be provided substantially through the operation or sale of the collateral.
2 unchanged sentences
The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.
−Removed: In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses and may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination, which may
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: not be currently available to management.
+Added: In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses and may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management.
Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for credit losses is adequate.
−Removed: Upon adoption of ASC 326 on July 1, 2023, the Company made the following elections regarding accrued interest receivable:
+Added: The Company made the following elections under ASC 326 regarding accrued interest receivable:
(i) present accrued interest receivable balances separately on the consolidated statements of financial condition;
27 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
17 unchanged sentences
This investment is carried as an asset in the consolidated statement of financial condition at the cash surrender value of the underlying policies.
−Removed: Increases in the cash surrender value of the policies, as well as proceeds, are recorded as income in the consolidated statement of income (loss).
−Removed: At June 30, 2025, the Company recorded a $ 3.0 million receivable for life insurance proceeds resulting from the death of a former employee, of which $ 1.5 million was recorded as noninterest income in the consolidated statement of income (loss).
+Added: Increases in the cash surrender value of the policies, as well as proceeds, are recorded as income in the consolidated statement of income.
Goodwill and Other Intangible Assets
−Removed: The Company recorded goodwill through the acquisition of Regal Bancorp that it tests for impairment at least annually and more frequently as conditions warrant.
+Added: The Company accounts for business combinations using the purchase accounting method.
+Added: Purchase accounting requires that all assets acquired and liabilities assumed be recorded at their estimated fair values as of the acquisition date.
+Added: Any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill.
+Added: Conversely, a gain is recorded if the purchase price is below the fair value of the net assets acquired.
+Added: The Company recorded goodwill through the merger of Regal Bancorp that it tests for impairment at least annually and more frequently as conditions warrant.
As of June 30, 2026 , goodwill amounted to $20.4 million.
−Removed: The Company evaluated and concluded that goodwill was no t impaired as of that date.
−Removed: The Company recorded a core deposit premium intangible through the acquisition of Regal Bancorp that is amortized on an accelerated basis over ten years .
+Added: The Company evaluated and concluded that goodwill was not impaired as of that date.
+Added: Goodwill is not amortized to expense, but is evaluated for impairment at least annually.
+Added: Write-downs of the balance are charged to expense in the period in which goodwill is determined to be impaired.
+Added: The Company recorded goodwill through the merger of Regal Bancorp that is tested for impairment in the fourth quarter of every year, or more frequently as conditions warrant.
+Added: As of June 30, 2026, goodwill amounted to $ 20.4 million.
+Added: The Company engaged an independent third -party appraiser to perform a qualitative assessment of goodwill as of June 30, 2026, which concluded that goodwill was not impaired as of that date.
+Added: Intangible assets are amortized over their estimated lives.
+Added: The Company recorded a core deposit premium intangible through the merger of Regal Bancorp that is amortized on an accelerated basis over ten years.
At June 30, 2026, the core deposit premium intangible asset had a gross carrying amount of $ 9.1 million and accumulated amortization of $ 4.0 million.
7 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
18 unchanged sentences
The term comprehensive income (loss) refers to net income (loss) plus other comprehensive income, that is, certain revenues, expenses, gains, and losses that are reported as separate components of equity instead of net income.
−Removed: For the Company, the primary component of other comprehensive income (loss) is the unrealized holding gains or losses on available-for-sale investment securities.
−Removed: The Company has elected to report these effects on the consolidated statements of comprehensive income (loss).
+Added: For the Company, the primary component of other comprehensive income (loss) is the unrealized actuarial gains or losses on the defined pension plan.
+Added: The Company has elected to report these effects on the consolidated statements of comprehensive income.
Advertising Costs
10 unchanged sentences
and subsidiaries’ tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes.
−Removed: The Company accounts for income taxes using the asset and liability method in accordance with accounting guidance ASC Topic 740, Income Taxes .
−Removed: Under this guidance, deferred income tax expense or benefit is determined
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
+Added: The Company accounts for income taxes using the asset and liability method in accordance with accounting guidance ASC Topic 740, Income Taxes .
+Added: Under this guidance, deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
26 unchanged sentences
The Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants' accounts under the plan.
−Removed: Accounting Pronouncements Adopted
−Removed: The Company adopted ASC 326 on July 1, 2023.
−Removed: The transition to the new Accounting Standards Update ("ASU") resulted in a cumulative effect adjustment to the allowance for credit losses of $ 47,000 , an increase in
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: deferred tax assets of $ 13,000 , and a decrease in retained earnings of $ 34,000 as of the adoption date.
−Removed: The impact of the reserve for unfunded liabilities to the consolidated financial statements was not material.
−Removed: The Company did not record an allowance for held-to-maturity securities on July 1, 2023 as the investment portfolio consisted almost entirely of debt securities backed by the full faith of the U.S.
−Removed: Government for which credit risk is deemed negligible.
−Removed: The impact of this ASU could change in the future depending on the composition, characteristics, and credit quality of the securities portfolio as well as the economic conditions at future reporting periods
−Removed: The following table below presents the impact of ASC 326 on the consolidated balance sheet:
−Removed: As reported under
−Removed: (In thousands)
−Removed: ACL on loans:
−Removed: Other commercial real estate
−Removed: Total ACL on loans
−Removed: Deferred income taxes
−Removed: Liability for credit losses for unfunded commitments
−Removed: Shareholders' equity
−Removed: Retained earnings
−Removed: In March 2022, the FASB issued ASU No.
−Removed: 2022-02, Financial Instruments—Credit Losses—Troubled Debt Restructurings and Vintage Disclosures .
−Removed: This standard eliminated the recognition and measurement guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan restructurings when a borrower is experiencing financial difficulty.
−Removed: For public business entities, these amendments require that an entity disclose current-period gross charge-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20.
−Removed: Gross charge-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination.
−Removed: 2022-02 was effective for the Company on July 1, 2023 .
−Removed: The adoption of this standard did no t have a material impact on the Company’s consolidated financial statements as the Company.
−Removed: In March 2023, FASB issued ASU No.
−Removed: 2023-02, Investments - Equity Method and Joint Ventures (Topic 323):
−Removed: Accounting for Investments in Tax Credit Structures .
−Removed: The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met.
−Removed: A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments.
−Removed: The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments.
−Removed: The Company adopted this standard on July 1, 2024 .
−Removed: The adoption of this standard did no t have a material impact on the Company’s consolidated financial statements as the Company has no such investments.
−Removed: In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280):
+Added: Accounting Pronouncements Adopted
+Added: In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023 - 07, Segment Reporting (Topic 280 ):
Improvements to Reportable Segment Disclosures .
The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses.
−Removed: This update will be
−Removed: SR Bancorp, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
−Removed: June 30, 2025 and 2024
−Removed: effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024.
+Added: This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024.
Early adoption is permitted.
The Company adopted this standard on July 1, 2024.
−Removed: The adoption of this standard did no t have a material impact on the Company’s consolidated financial statements.
−Removed: Recent Accounting Standards Not Yet Adopted
+Added: The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.
In December 2023, FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ):
1 unchanged sentence
The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures.
−Removed: This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024.
+Added: This update will be effective for annual financial statements issued for fiscal years beginning after December 15, 2024.
Early adoption is permitted.
−Removed: The Company is currently evaluating the impact of this standard, which is not expected to have a material impact on our consolidated financial statements.
−Removed: Accounting Standards Update 2024-01, Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards ("ASU 2024-01") clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance.
−Removed: ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the "Scope" and "Scope Exceptions" sections of Topic 718 to improve its clarity and operability without changing the guidance.
−Removed: Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption.
−Removed: If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle.
−Removed: ASU 2024-01 is effective for the Company for the fiscal year beginning on July 1, 2025, including interim periods, and is not expected to have a material impact on our financial statements.
+Added: The amendments in this ASU require annual disclosure of more detailed tax rate reconciliation categories and income taxes paid by geography and jurisdiction.
+Added: The Company adopted this standard on July 1, 2025, which did not have a material impact on our financial statements.
+Added: The Company updated its income tax disclosures in its Form 10‑K for the year ended June 30, 2026, using the prospective method of adoption.
+Added: In March 2024, the FASB issued ASU 2024 - 01 Compensation - Stock Compensation (Topic 718 ):
+Added: Scope Application of Profits Interest and Similar Awards ("ASU 2024 - 01" ).
+Added: This update provides guidance for profits interest and similar awards.
+Added: The Company adopted ASU 2024 - 01 on July 1, 2025, which did not have a material impact on its consolidated financial statements.
Accounting Standards Update 2024 - 02, "Codification Improvements" ("ASU 2024 - 02" ), amends the Codification to remove references to various concept statements and impacts a variety of topics in the Codification.
1 unchanged sentence
Generally, the amendments in ASU 2024 - 02 are not intended to result in significant accounting changes for most entities.
−Removed: ASU 2024-02 is effective for the Company for the fiscal year beginning on July 1, 2025, and is not expected to have a material impact on our consolidated financial statements.
+Added: The Company adopted ASU 2024 - 02 on July 1, 2025, which did not have a material impact on its consolidated financial statements.
+Added: Recent Accounting Standards Not Yet Adopted
Accounting Standards Update 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures ("ASU 2024 - 03" ) requires additional expense disclosures by public entities in the notes to the financial statements.
8 unchanged sentences
The Company is currently evaluating the impact of this standard on our consolidated financial statements, which is not expected to have a material impact on our financial statements.
+Added: In September 2025, FASB issued ASU 2025 - 06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350 - 40 ):
+Added: Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025 - 06" ).
+Added: This update modernizes internal-use software guidance to adapt to the agile basis predominantly used to develop software.
+Added: ASU 2025 - 06 is effective for fiscal years beginning after December 15, 2027.
+Added: Early adoption is permitted.
+Added: The Company does not expect the adoption of ASU 2025 - 06 will have a material impact on its consolidated financial statements.
+Added: In November 2025, the FASB issued ASU 2025 - 08 Financial Instruments - Credit Losses (Topic 326 ):
+Added: Purchased Loans (“ASU 2025 - 08” ).
+Added: This update amends the guidance in ASC 326 on the accounting for certain purchased loans and expands the use of the “gross-up approach” to a broader population of acquired loans, establishing a new category termed “purchased seasoned loans.” Under ASU 2025 - 08, entities must account for acquired loans that meet certain criteria at acquisition by recognizing the loan at its purchase price plus an allowance for expected credit losses.
+Added: This aligns the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”).
+Added: ASU 2025 - 08 is effective for annual reporting periods beginning after December 15, 2026 on a prospective basis.
+Added: Early adoption is permitted.
+Added: The Company does not expect the adoption of ASU 2025 - 08 will have a material impact on its consolidated financial statements.
+Added: In December 2025, FASB issued ASU 2025 - 11 Interim Reporting (Topic 270 ):
+Added: Narrow-Scope Improvements ("ASU 2025 - 11" ).
+Added: This update improves navigability of the required interim disclosures and clarifies when that guidance is applicable.
+Added: The amendments in this Update are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.
+Added: The Company does not expect the adoption of ASU 2025 - 11 will have a material impact on its consolidated financial statements.
+Added: In December 2025, FASB issued ASU 2025 - 12 Codification Improvements ("ASU 2025 - 12" ).
+Added: This update makes changes to the Accounting Standards Codification affecting a wide variety of topics to clarify, correct errors and make minor improvements.
+Added: The amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.
+Added: The Company does not expect the adoption of ASU 2025 - 12 will have a material impact on its consolidated financial statements.
Subsequent Events
The Company has evaluated subsequent events for recognition or disclosure through September 25, 2026 , the date consolidated financial statements were available to be issued.
−Removed: SR Bancorp, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
−Removed: June 30, 2025 and 2024
−Removed: Business Combination
−Removed: On September 19, 2023 , the Company completed its acquisition of Regal Bancorp, Inc.
−Removed: and its wholly-owned subsidiary Regal Bank, under which Regal Bancorp merged with and into the Company, with the Company as the resulting entity.
−Removed: Immediately following the Merger, Regal Bank merged with and into Somerset Bank, which had converted to a commercial bank charter, with Somerset Bank as the surviving entity, which was renamed Somerset Regal Bank.
−Removed: In connection with the Merger, each outstanding share of Regal Bancorp common stock converted into the right to receive $ 23.00 in cash.
−Removed: The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting.
−Removed: The assets and liabilities, both tangible and intangible, were recorded at their fair values as of September 19, 2023 based on management’s best estimate using the information available as of the merger date.
−Removed: The application of the acquisition method of accounting resulted in the recognition of goodwill of $ 20.5 million and a core deposit intangible of $ 9.1 million.
−Removed: At June 30, 2024, the Company finalized its review of the acquired assets and liabilities making modest adjustments to assets and liabilities reducing previously reported goodwill from $ 20.5 million to $ 20.4 million .
−Removed: The following table sets forth assets acquired and liabilities assumed in the acquisition of Regal Bancorp, at their estimated fair values as of the closing date of the transaction:
−Removed: at acquisition
−Removed: (In thousands)
−Removed: Consideration paid ( 3,023,369 Regal Bancorp shares
−Removed: at $ 23.00 per share)
−Removed: Assets Acquired
−Removed: Cash and cash equivalents
−Removed: Time deposits in other financial institutions
−Removed: Securities available-for-sale, at fair value
−Removed: Securities held-to-maturity, at amortized cost
−Removed: Federal Home Loan Bank stock and other
−Removed: restricted stock
−Removed: Loans receivable, net
−Removed: Allowance for credit losses
−Removed: Accrued interest receivable
−Removed: Premises and equipment, net
−Removed: Right-of-use asset
−Removed: Core deposit intangible
−Removed: Deferred costs
−Removed: Bank owned life insurance
−Removed: Net deferred tax asset
−Removed: Total assets acquired
−Removed: Liabilities assumed
−Removed: Lease liability
−Removed: Deferred compensation
−Removed: Accrued expenses and other liabilities
−Removed: Total liabilities assumed
−Removed: Net assets acquired
−Removed: Goodwill recorded at merger
−Removed: SR Bancorp, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
−Removed: June 30, 2025 and 2024
−Removed: (a) Adjustment for interest rate and credit risk to reduce loans to fair value, to be amortized as an increase to interest income over their remaining term
−Removed: (b) Elimination of Regal Bank allowance for credit losses.
−Removed: (c) Elimination of pre-existing goodwill.
−Removed: (d) Recording of new intangible asset for the fair value of core deposits, to be amortized on an accelerated basis over the estimated average life of the deposit base.
−Removed: (e) Elimination of pre-existing intangible asset for the fair value of core deposits.
−Removed: (f) Elimination of deferred costs
−Removed: (g) Recording of the deferred income tax effects of fair value adjustments.
−Removed: (h) Adjustment to reduce time deposits to fair value, to be amortized as an increase to interest expense over their remaining term.
−Removed: (i) Final adjustments of income taxes, other assets and other liabilities.
−Removed: During the year ended June 30, 2024, the Company recorded one-time merger-related expenses of $ 3.9 million, consisting of $ 2.6 million for change in control payments, $ 612,000 for investment banking services, $ 414,000 related to the termination of a data processing contract, $ 99,000 for legal-related expenses, $ 42,000 for severance payments, $ 17,000 in other professional services and $ 30,000 in other miscellaneous expenses.
−Removed: In addition, the Company recorded a $ 5.4 million charitable contribution expense for the establishment of the Somerset Regal Charitable Foundation, as well as a $ 4.2 million provision for estimated credit losses in connection with the acquired loan portfolio.
−Removed: The Company had no merger-related expenses incurred during the year ended June 30, 2025.
−Removed: The fair value of loans acquired from Regal Bank was estimated using cash flow projections based on the remaining maturity and repricing terms.
−Removed: Cash flows were adjusted by estimating future credit losses and the rate of prepayments.
−Removed: Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans.
−Removed: There was no carryover of Regal Bank’s allowance for loan losses associated with the loans that were acquired.
−Removed: The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the sum-of-the-years digits method.
−Removed: The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations.
−Removed: Accordingly, the Company recognizes amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair value.
−Removed: At June 30, 2024, the Company finalized its review of the acquired assets and assumed liabilities and did not record any further adjustments to the carrying value.
−Removed: The fair value of retail demand and interest-bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand.
−Removed: The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities.
Earnings (Loss) Per Share
Basic earnings (loss) per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding.
−Removed: Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potential dilutive common shares (such as those resulting from the exercise of stock options and vested restricted stock awards) were issued during the period, computed using the treasury stock method.
+Added: Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potential dilutive common shares (such as those resulting from the exercise of stock options and unvested restricted stock awards) were issued during the period, computed using the treasury stock method.
Unallocated ESOP shares are not deemed outstanding for earnings per share calculations.
1 unchanged sentence
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
1 unchanged sentence
Year Ended June 30,
−Removed: Net income (loss)
+Added: (Dollars in thousands, except per share amounts)
Weighted average number of common shares outstanding
1 unchanged sentence
Average unvested restricted stock awards
−Removed: Weighted average common shares outstanding used to calculate basic
−Removed: earnings per common share
+Added: Weighted average common shares outstanding used to calculate basic earnings per common share
Dilutive effect of common stock equivalents
−Removed: Weighted average common shares outstanding used to calculate diluted
−Removed: earnings per common share
+Added: Weighted average common shares outstanding used to calculate diluted earnings per common share
Basic income (loss) per common share
Diluted income (loss) per common share
−Removed: Number of common stock equivalents excluded from the calculation of
−Removed: diluted earnings as they are anti-dilutive
+Added: Number of common stock equivalents excluded from the calculation of diluted earnings as they are anti-dilutive
Investment Securities
16 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
9 unchanged sentences
Mortgage-backed securities
−Removed: The unrealized losses as of June 30, 2025 and June 30, 2024, categorized by the length of time of continuous loss position and the fair value of related securities held-to-maturity, were as follows:
−Removed: June 30, 2025
−Removed: Less than 12 Months
−Removed: More than 12 Months
−Removed: (In thousands)
−Removed: Federal National Mortgage
−Removed: Federal Home Loan Mortgage
−Removed: Subordinated Debt
−Removed: June 30, 2024
−Removed: Less than 12 Months
−Removed: More than 12 Months
−Removed: (In thousands)
−Removed: Federal National Mortgage
−Removed: Federal Home Loan Mortgage
−Removed: Government National
−Removed: Mortgage Association
−Removed: Subordinated Debt
−Removed: SR Bancorp, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
−Removed: June 30, 2025 and 2024
At June 30, 2026 and June 30, 2025 , the Bank had $ 27,000 and $ 37,000 , respectively, in equity securities recorded at fair value.
1 unchanged sentence
(In thousands)
−Removed: Net gains recognized on equity securities
+Added: Net (losses) gains recognized on equity securities
Net gains recognized on equity securities sold/acquired
−Removed: Net unrealized gains recognized on equity securities
+Added: Net unrealized (losses) gains recognized on equity securities
On a quarterly basis, management evaluates whether there is a credit loss associated with any declines in fair value on securities.
17 unchanged sentences
Loans receivable, net
−Removed: The Company engages primarily in the lending of fixed-rate and adjustable-rate commercial real estate and residential mortgage loans.
−Removed: Lending activities are targeted to individuals within the Company's geographic footprint.
−Removed: Risks associated with lending activities include economic conditions and changes in interest rates, which can adversely impact both the ability of borrowers to repay their loans and the value of the associated collateral.
+Added: The Company engages primarily in the lending of fixed-rate and adjustable-rate residential mortgage and consumer loans and adjustable-rate commercial loans.
+Added: Lending activities are primarily targeted to individuals within the Company's geographic footprint.
+Added: Risks associated with lending activities include economic, political and global conditions and changes in interest rates, which can adversely impact both the ability of borrowers to repay their loans and the value of the associated collateral.
Credit risk exposure in these areas of lending are minimized by the evaluation of the creditworthiness of the borrower, including debt-to-income ratios, credit scores and conservative underwriting standards that contain loan-to-value ratios of generally no more than 75 % for multi-family and commercial loans and 80 % for residential loans.
4 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: At June 30, 2025, commercial loans represented 45.0 % of total loans receivable, net, while residential mortgage, consumer and other loans represented 55.0 % , nearly all of which was concentrated within our primary market area in New Jersey.
−Removed: The Company holds 82.0 % of its commercial loan portfolio in commercial real estate, consisting of multi-family, mixed use and owner occupied loans, with less than 1 % secured by office buildings.
−Removed: At June 30, 2025 , the Company had no non-accrual commercial loans.
−Removed: The Company adopted ASC 326 on July 1, 2023.
−Removed: All disclosures are presented in accordance with ASC 326 as of June 30, 2025 and June 30, 2024 .
+Added: At June 30, 2026 , commercial loans represented 45.7 % of total loans, while residential mortgage, consumer and other loans represented 54.3 %, nearly all of which was concentrated within our primary market area in New Jersey.
+Added: The Company holds 95.5 % of its commercial loan portfolio in commercial real estate, consisting of multi-family, mixed use, owner occupied and non-owner occupied loans, with less than 1 % secured by office buildings.
+Added: At June 30, 2026 , the Company had no non-accrual loans.
The following tables summarize the activity in the allowance for credit losses by loan class for the years ended June 30, 2026 and June 30, 2025 .
6 unchanged sentences
Ending balance,
−Removed: Individually evaluated
−Removed: for impairment
+Added: Individually evaluated for impairment
Ending balance,
−Removed: Collectively evaluated
−Removed: for impairment
+Added: Collectively evaluated for impairment
Loans Receivable:
1 unchanged sentence
Ending balance,
−Removed: Individually evaluated
−Removed: for impairment
+Added: Individually evaluated for impairment
Ending balance,
−Removed: Collectively evaluated
−Removed: for impairment
+Added: Collectively evaluated for impairment
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
3 unchanged sentences
Beginning balance
−Removed: Impact of ASC 326
Provisions (credits)
1 unchanged sentence
Ending balance,
−Removed: Individually evaluated
−Removed: for impairment
+Added: Individually evaluated for impairment
Ending balance,
−Removed: Collectively evaluated
−Removed: for impairment
+Added: Collectively evaluated for impairment
Loans Receivable:
1 unchanged sentence
Ending balance,
−Removed: Individually evaluated
−Removed: for impairment
+Added: Individually evaluated for impairment
Ending balance,
−Removed: Collectively evaluated
−Removed: for impairment
+Added: Collectively evaluated for impairment
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
2 unchanged sentences
(In thousands)
−Removed: Owner Occupied Commercial
+Added: Owner Occupied Commercial Real Estate
Special mention
−Removed: Total Owner Occupied Commercial
+Added: Total Owner Occupied Commercial Real Estate
Other Commercial Real Estate
16 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
1 unchanged sentence
(In thousands)
−Removed: Owner Occupied Commercial
+Added: Owner Occupied Commercial Real Estate
Special mention
−Removed: Total Owner Occupied Commercial
+Added: Total Owner Occupied Commercial Real Estate
Other Commercial Real Estate
16 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
17 unchanged sentences
Non-Accrual Loans
−Removed: With a Related Allowance
−Removed: Without a Related Allowance
(In thousands)
3 unchanged sentences
Non-Accrual Loans
−Removed: With a Related Allowance
−Removed: Without a Related Allowance
(In thousands)
2 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
1 unchanged sentence
June 30, 2026
−Removed: 90 Days or More Past Due and Still Accruing
−Removed: Total Past Due
−Removed: Total Current
(In thousands)
−Removed: Owner occupied commercial real
+Added: Owner occupied commercial real estate
Other commercial real estate
3 unchanged sentences
June 30, 2025
−Removed: 90 Days or More Past Due and Still Accruing
−Removed: Total Past Due
−Removed: Total Current
(In thousands)
−Removed: Owner occupied commercial real
+Added: Owner occupied commercial real estate
Other commercial real estate
13 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
30 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
26 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
13 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
21 unchanged sentences
Fair value of assets
−Removed: Funded status and prepaid pension cost included in other liabilities
+Added: Funded status included in other assets
Assumptions used to determine benefit obligation:
3 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
22 unchanged sentences
Mutual funds - equity
−Removed: Mutual funds - fixed income
+Added: Bonds - fixed income
Assets at Fair Value as of June 30, 2025
6 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
17 unchanged sentences
Stock- Based Compensation
+Added: The Company has several compensation and benefit arrangements involving shares of the Company’s stock.
+Added: Stock-based compensation involves the following components for the years ended June 30, 2026 , and 2025 :
+Added: June 30, 2026
+Added: June 30, 2025
+Added: (In thousands)
+Added: Fair value of 38,032 shares earned by ESOP participants
+Added: Incentive Plan Awards:
+Added: Stock options
+Added: Restricted stock awards
+Added: Total stock-based compensation expense
+Added: Related tax benefits recognized in earnings
On November 20, 2024, the Company adopted the SR Bancorp, Inc.
2 unchanged sentences
As of June 30, 2026 , there were 183,959 shares available for future grants.
−Removed: Stock Options
−Removed: On November 21, 2024, the Company granted 237,695 stock options to non-employee directors.
−Removed: On January 29, 2025 and February 5, 2025, the Company granted 465,889 and 57,009 , respectively, of stock options to certain officers and employees of the Company.
−Removed: The stock options have a contractual term of 10 years.
−Removed: The stock options vest in equal annual installments over a five-year period beginning on the first anniversary of the date of grant.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model.
+Added: Stock Options
+Added: On November 21, 2024, the Company granted 237,695 stock options to non-employee directors.
+Added: On January 29, 2025, February 5, 2025 and December 17, 2025, the Company granted 465,889 , 57,009 and 58,805 , respectively, of stock options to certain officers and employees of the Company.
+Added: The stock options vest in equal annual installments over a five -year period beginning on the first anniversary of the date of grant.
+Added: The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model.
The following table sets forth information regarding the grants:
3 unchanged sentences
February 5, 2025
+Added: December 17, 2025
Options granted
5 unchanged sentences
February 5, 2035
+Added: December 17, 2035
Expected Volatility(1)
13 unchanged sentences
Intrinsic Value
−Removed: (In thousands)
Balance at beginning of period
1 unchanged sentence
Balance at end of period
−Removed: Exercisable at end of period
+Added: Exercisable - June 30, 2026
+Added: Year Ended June 30, 2025
+Added: Exercise Price
+Added: Intrinsic Value
+Added: Balance at beginning of period
+Added: Forfeited or expired
+Added: Balance at end of period
+Added: Exercisable - June 30, 2025
The aggregate intrinsic value is calculated by multiplying the number of in-the-money shares by the difference between the Company’s closing price on the last trading day of the period and the exercise price.
−Removed: Restricted Stock Awards
−Removed: On November 21, 2024, the Company granted 95,075 restricted stock awards to non-employee directors.
−Removed: On January 29, 2025 and February 5, 2025, the Company granted 186,356 and 22,800 , respectively, of restricted stock awards to certain officers and employees.
−Removed: The restricted stock awards vest in equal annual installments over a five-year period.
−Removed: The restricted stock awards are measured based on grant-date fair value, which reflects the closing price of the Company’s stock on the date of grant.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
+Added: Restricted Stock Awards
+Added: On November 21, 2024, the Company granted 95,075 restricted stock awards to non-employee directors.
+Added: On January 29, 2025, February 5, 2025 and December 17, 2025, the Company granted 186,356 , 22,800 and 23,522 , respectively, of restricted stock awards to certain officers and employees.
+Added: The restricted stock awards vest in equal annual installments over a five -year period beginning on the date of grant.
+Added: The restricted stock awards are measured based on grant-date fair value, which reflects the closing price of the Company’s stock on the date of grant.
The following table represents information regarding restricted stock award activities for the periods indicated:
−Removed: June 30, 2025
+Added: Year Ended June 30,
Average Grant
−Removed: Date Fair Value
−Removed: Balance at beginning of period
−Removed: Balance at end of period
−Removed: The following table represents the compensation expense and income tax benefit recognized for stock options and restricted stock awards for the period indicated:
−Removed: June 30, 2025
−Removed: (In thousands)
−Removed: Stock-based compensation expense
−Removed: Stock options
−Removed: Restricted stock awards
−Removed: Total stock-based compensation expense
−Removed: Related tax benefits recognized in earnings
+Added: Average Grant
+Added: Date Fair Value Per Share
+Added: Date Fair Value Per Share
+Added: Balance at beginning of period - non-vested
+Added: Forfeited or expired
+Added: Balance at end of period - non-vested
The following table sets forth the total compensation cost related to non-vested awards not yet recognized and the weighted average period (in years) over which it is expected to be recognized as of June 30, 2026 :
9 unchanged sentences
Shares are allocated to eligible participants at the end of the plan year ( December 31) on the basis of compensation, subject to federal limits.
−Removed: Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to the fair market value of shares when they are earned and committed to be released to participants' accounts under the plan.
−Removed: The principal outstanding of the ESOP loan was $ 6.9 and $ 7.0 million at June 30, 2025, and 2024, respectively.
−Removed: Total compensation expense recognized in connection with the ESOP was $ 438,000 and $ 515,000 for the years ended June 30, 2025, and 2024, respectively.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
+Added: Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to the fair market value of shares when they are earned and committed to be released to participants' accounts under the plan.
+Added: The principal outstanding of the ESOP loan was $ 6.7 million and $ 6.9 million at June 30, 2026 , and 2025, respectively.
+Added: Total compensation expense recognized in connection with the ESOP was $ 620,000 and $ 439,000 for the years ended June 30, 2026 , and 2025, respectively.
Shares held by the ESOP were as follows:
1 unchanged sentence
June 30, 2025
−Removed: (In thousands)
+Added: (Dollars in thousands)
Allocated to participants
11 unchanged sentences
Total current
−Removed: Deferred tax expense (benefit):
+Added: Deferred tax expense:
Federal income
3 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
The following table presents a reconciliation between the effective income tax expense and the income tax expense which would be computed by applying the federal statutory tax rate of 21 % for the years ended June 30, 2026 and June 30, 2025 :
+Added: June 30, 2026
+Added: June 30, 2025
(In thousands)
−Removed: Federal income tax expense (benefit), at the statutory rate
+Added: (In thousands)
+Added: Federal income tax expense, at the statutory rate
Increases (decreases) in taxes resulting from:
1 unchanged sentence
Bank owned life insurance
−Removed: Merger expenses
Other items, net
−Removed: Change in valuation allowance
−Removed: Effective income tax expense (benefit)
+Added: Change in federal valuation allowance
+Added: Effective income tax expense
+Added: The following table presents income taxes paid (net of refunds received) for the year ended June 30, 2026:
+Added: June 30, 2026
+Added: (In thousands)
The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows:
+Added: June 30, 2026
+Added: June 30, 2025
(In thousands)
2 unchanged sentences
Deferred compensation
−Removed: Unrecognized pension losses
+Added: Unrecognized pension loss
Deferred loan fees
3 unchanged sentences
Charitable contributions
−Removed: Uncollected interest
Fair value adjustments related to acquisition
9 unchanged sentences
The measurement of such deferred tax items is reduced by the amount that is more likely than not to be realized based on available evidence.
−Removed: The ultimate realization of the deferred tax asset is
+Added: The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which those temporary differences and carryforwards become deductible.
+Added: At June 30, 2026 and June 30, 2025 , the Company had a valuation allowance of $ 2.1 million and $ 2.2 million, respectively.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: dependent upon the generation of future taxable income during the periods in which those temporary differences and carryforwards become deductible.
−Removed: At June 30, 2025 and 2024, there was a valuation allowance of $ 2.2 million.
A corporation may carry forward net operating losses to the succeeding 20 taxable years for New Jersey state tax purposes.
5 unchanged sentences
Net deferred tax assets are included in other assets on the Consolidated Statements of Financial Condition.
−Removed: At June 30, 2025 and June 30, 2024 , the Company had a $ 2.2 million valuation allowance.
+Added: At June 30, 2026 and June 30, 2025 , the Company had a valuation allowance of $ 2.1 million and $ 2.2 million, respectively.
Commitments and Contingencies
16 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
26 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
8 unchanged sentences
The Company leases two branch facilities under agreements with companies directly or indirectly affiliated with a director, as a result of the Merger.
−Removed: Lease expense recognized in connection with these leases since the Merger amounted to $ 236,000 for the year ended June 30, 2025 .
+Added: Lease expense recognized in connection with these leases amounted to $ 240,000 for the year ended June 30, 2026 .
Fair Value Measurements and Disclosures
The Bank uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.
−Removed: The Company's securities available-for-sale are recorded at fair value on a recurring basis.
−Removed: Additionally, from time to time, the Bank may be required to record at fair value other assets or liabilities on a non-recurring basis.
+Added: From time to time, the Bank may be required to record at fair value other assets or liabilities on a non-recurring basis.
These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets.
6 unchanged sentences
Level 3 - Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that a market participant would use to value the asset or liability.
−Removed: The Banks’ available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss.
−Removed: The securities available-for-sale portfolio consists of U.S.
−Removed: government-sponsored enterprise and mortgage-backed securities.
−Removed: The fair values of these securities were obtained from an independent nationally recognized pricing service.
−Removed: The independent pricing service provided prices categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
16 unchanged sentences
Financial Assets Measured at Fair Value on a Nonrecurring Basis
−Removed: The following tables present those assets and liabilities measured at fair value on a non-recurring basis at June 30, 2025 and June 30, 2024, and additional quantitative information about the valuation techniques and inputs utilized to determine fair value.
−Removed: All such assets and liabilities were measured using Level 3 inputs:
−Removed: June 30, 2025
−Removed: Fair Value Measurement
−Removed: Quantitative Information
−Removed: Recorded Investment
−Removed: Valuation Allowance
−Removed: Unobservable Inputs
−Removed: (In thousands)
−Removed: Individually evaluated
−Removed: Appraisal of collateral
−Removed: Selling costs
+Added: There were no financial assets measured at fair value on a nonrecurring basis at June 30, 2026 and June 30, 2025.
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
−Removed: June 30, 2024
−Removed: Fair Value Measurement
−Removed: Quantitative Information
−Removed: Recorded Investment
−Removed: Valuation Allowance
−Removed: Unobservable Inputs
−Removed: (In thousands)
−Removed: Individually evaluated
−Removed: Appraisal of collateral
−Removed: Selling costs
−Removed: Loans which meet certain criteria are evaluated individually for impairment.
−Removed: A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement.
−Removed: The Bank's impaired loans are generally collateral dependent whose fair value is estimated through current appraisals, and adjusted as necessary by management to reflect current market conditions.
−Removed: Appraisals of collateral securing impaired loans are conducted by approved, qualified, and independent third-party appraisers.
−Removed: Such appraisals are ordered once the loan is deemed impaired, as previously described.
−Removed: Impaired loans are generally classified as Level 3 assets.
−Removed: There were no transfers between levels within the fair value hierarchy during the years ended June 30, 2025 and June 30, 2024.
−Removed: Fair Value on a Nonrecurring Basis
+Added: Fair Value of Financial Instruments not Carried at Fair Value
The Company discloses fair value information about financial assets, whether or not recognized in the statements of financial condition, for which it is practicable to estimate that value.
3 unchanged sentences
The use of different market assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.
−Removed: For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2025 and June 30, 2024 were as follows:
+Added: Carrying amounts and estimated fair value measurements by level within the fair value hierarchy of the Company's financial instruments used at June 30, 2026 and June 30, 2025 were as follows:
June 30, 2026
10 unchanged sentences
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
29 unchanged sentences
Other expense
−Removed: Contribution expense Somerset Regal Bank Charitable Foundation
−Removed: Income (loss) before income tax expense and equity in undistributed net loss of Somerset Regal Bank
−Removed: Income tax expense
−Removed: Income before undistributed net loss of Somerset Regal Bank
−Removed: Equity in undistributed net income (loss) of Somerset Regal Bank
−Removed: Net Income (Loss)
+Added: (Loss) income before income tax expense and equity in undistributed net income of Somerset Regal Bank
+Added: Income tax (benefit) expense
+Added: (Loss) income before undistributed net income of Somerset Regal Bank
+Added: Equity in undistributed net income of Somerset Regal Bank
SR Bancorp, Inc.
and Subsidiaries
−Removed: Notes to Consolidated Financial Statements — Continued
+Added: Notes to Consolidated Financial Statements
June 30, 2026 and
2 unchanged sentences
Cash Flows From Operating Activities:
−Removed: Net income (loss)
−Removed: Adjustments to reconcile net loss to cash provided by operating activities:
−Removed: Undistributed net (earnings) loss of Somerset Regal Bank
+Added: Adjustments to reconcile net income to cash provided by operating activities:
+Added: Undistributed net (earnings) of Somerset Regal Bank
Stock-based compensation
Change in other assets and other liabilities
−Removed: Contribution expense common shares contributed to Somerset Regal Bank Charitable Foundation
−Removed: Net cash provided by (used in) operating activities
+Added: Net cash provided by operating activities
Cash Flows From Investing Activities:
Investment in Somerset Regal Bank
−Removed: Dividend from Somerset Regal Bank
+Added: Dividends from Somerset Regal Bank
Principal payment received on ESOP loan
−Removed: Cash paid for acquisition
−Removed: Net cash provided by (used in) investing activities
+Added: Net cash provided by investing activities
Cash Flows From Financing Activities:
1 unchanged sentence
Cash dividends paid on common stock
−Removed: Cash proceeds from issuance of common stock
Change in due from Somerset Regal Bank
−Removed: Net cash (used in) provided by financing activities
−Removed: Net increase in cash and cash equivalents
+Added: Cash paid for excise taxes on repurchased shares
+Added: Exercise of stock options
+Added: Receipts from equity plan participants for withholding taxes on share-based awards
+Added: Cash paid for withholding taxes on share-based awards
+Added: Net cash used in financing activities
+Added: Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.