SR Bancorp, Inc.

SR Bancorp, Inc. is a Maryland-chartered bank holding company and the parent of Somerset Regal Bank, a New Jersey state-chartered commercial bank. Through its banking subsidiary, the company gathers deposits and originates loans for individuals and small businesses in northern and central New Jersey.

— SR Bancorp, Inc.
%
Deposit products45% Transaction, savings, and time deposit accounts used to fund lending and investments.
Residential lending20% Mortgage loans made to consumers for home purchase, refinance, and related needs.
Commercial real estate lending20% Loans secured by income-producing or owner-occupied real estate.
Commercial and SBA lending10% Business loans and SBA-backed credit for small businesses in the bank's market.
Fee-based banking services5% Digital banking, payment, and servicing features that support customer relationships.

The company serves individuals and small businesses in its New Jersey branch markets, with a community-bank model...

  • Retail deposit customersprimary

    Individuals and households that place checking, savings, and time deposits with the bank for convenience and local service.

  • Residential mortgage borrowerssecondary

    Consumers financing home purchases, refinances, or other residential property needs.

  • Small business customersprimary

    Local businesses that use deposit accounts, lines of credit, and term loans for operations and growth.

  • Commercial real estate borrowersprimary

    Owners and investors financing income-producing or owner-occupied properties in the bank's footprint.

  • SBA lending customerssecondary

    Small businesses seeking government-guaranteed financing and related banking relationships.

SR Bancorp’s banking business is concentrated in northern and central New Jersey, where Somerset Regal Bank operates 14...

  • •14 branches across northern and central New Jersey
  • •Primary counties include Essex, Hunterdon, Hudson, Middlesex, Morris, Somerset, and Union
  • •Customer base is concentrated in the bank's local market area
  • •Local real estate and employment trends affect loan demand and credit quality

The company’s strategy is to deepen core deposits, expand commercial lending, and use its community-bank franchise to...

01
Grow core depositsshort-term

Deposits are the main funding source for loans and investments, so stable core funding supports balance-sheet growth.

02
Expand commercial banking relationshipsmedium-term

Commercial loans and deposits can deepen customer ties and improve relationship profitability.

03
Build SBA lending capabilitymedium-term

SBA lending can attract small-business customers and create secondary-market fee income.

04
Strengthen digital deliveryshort-term

Online and mobile tools help retain customers and extend service beyond branches.

The company is exposed to credit risk, especially in commercial real estate and small-business lending, because loan...

high

Local economic downturn in the New Jersey market

Borrower repayment capacity and real estate collateral values depend on local employment and property conditions.

Scope
Concentrated branch footprint in New Jersey
Materiality
high
high

Credit losses in commercial real estate and business lending

These portfolios depend on borrower cash flow and collateral performance, which can weaken in stress periods.

Scope
Commercial real estate loans, commercial business loans
Materiality
high
high

Operational and cyber risk

The bank processes a high volume of transactions and stores sensitive customer data, creating exposure to fraud and breaches.

Scope
Payments, online banking, internal controls
Materiality
high
high

Interest-rate risk

Net interest income depends on the spread between loan yields and deposit costs, which can move quickly with rates.

Scope
Deposit pricing and loan repricing
Materiality
high
medium

Reputation risk

Community banking depends on customer trust, service quality, and local market perception.

Scope
Branch-based and relationship banking model
Materiality
medium
Allowance for credit losses (ASC 326)
Loan loss provision and net income
Goodwill and intangible asset impairment
Non-cash write-downs to equity and earnings
Deferred tax asset valuation
Tax expense and balance-sheet asset value
Fair value of investment securities and foreclosed real estate
Other comprehensive income, gains/losses, and asset values

S&T BANCORP INC

STBA · State Commercial Banks

UNITY BANCORP INC /NJ/

UNTY · State Commercial Banks

RBB Bancorp

RBB · State Commercial Banks

Princeton Bancorp, Inc.

BPRN · State Commercial Banks

Seneca Bancorp, Inc.

SNNF · National Commercial Banks

PARKE BANCORP, INC.

PKBK · State Commercial Banks

: 29/04/2026