SR Bancorp Inc (SRBK) is a community banking holding company that operates Somerset Regal Bank, a New Jersey chartered commercial bank serving individuals and businesses in communities surrounding its offices. The company earns revenue primarily through net interest income, collecting deposits and deploying them into loans, with supplemental noninterest income from service charges, fees, and bank-owned life insurance. SR Bancorp was formed through a mutual-to-stock conversion and concurrent merger with Regal Bancorp, Inc., completed September 19, 2023, which combined Somerset Bank with Regal Bank and renamed the combined entity Somerset Regal Bank. At June 30, 2025, the allowance for credit losses stood at 0.65% of total loans, and the bank reported no non-performing loans. The company operates in an intensely competitive market against commercial banks, savings institutions, credit unions, mortgage brokerage firms, finance companies, mutual funds, insurance companies, and brokerage and investment banking firms, many of which have substantially greater resources and market presence.

Revenue model

Net interest income from the spread between deposit funding costs and loan yields is the primary revenue source. Noninterest income includes service charges and fees on deposits ($894K, FY2025), fees and service charges on loans ($145K, FY2025), and increases in cash surrender value of bank-owned life insurance ($1.043M, FY2025).

Products and services

Deposit products including savings accounts, club accounts, interest-bearing accounts, and certificates of deposit. Loan products spanning residential mortgages, commercial real estate loans, and commercial business loans. Internet banking and online bill payment. Investment securities including mortgage-backed securities and collateralized mortgage obligations. Bank-owned life insurance.

Customers and end markets

Individual retail depositors and borrowers, small businesses, and commercial clients in communities surrounding the bank's New Jersey offices. End markets include residential real estate lending, commercial real estate, and commercial business lending.

Value-chain role

Deposit-taking and direct lending institution. Acquires retail and commercial deposits and originates loans directly, retaining credit risk on balance sheet. Also invests in mortgage-backed securities as a secondary liquidity and yield vehicle.

Geographic exposure

New Jersey community banking market, with Somerset Regal Bank headquartered following the merger of Somerset Bank (Somerset County area) and Regal Bank (headquartered in Livingston, New Jersey).

Competitors

Commercial banks, Savings institutions, Credit unions, Mortgage brokerage firms, Finance companies, Mutual funds, Insurance companies, Brokerage and investment banking firms

Source: SEC 10-K, filed 2025-09-29

Industry: Savings Institutions, Not Federally Chartered Peers: Truist Financial Corp FIRST OTTAWA BANCSHARES, INC QNB Corp