Loan Portfolio and Asset Quality - The company offers unsecured personal loans up to $5,000 and rehabilitation loans up to $10,000, with rehabilitation loans subject to a 70% loan-to-value limit [37]. - As of June 30, 2024, the company had loan participations of $4.9 million and purchased $41.5 million of loans from mortgage brokers for its portfolio, compared to $42.6 million in the previous year [39]. - The maximum amount that can be lent to one borrower is limited to 15% of stated capital and reserves, which equates to $29.9 million as of June 30, 2024 [41]. - Total non-performing loans amounted to $50, with a non-performing loans to total loans ratio of 0.01% as of June 30, 2024, compared to 0.06% in the previous year [48]. - The company reported total past due loans of $734,355,000 and total current loans of $735,017,000 as of June 30, 2024 [44]. - The delinquency status for residential mortgages showed 572 loans past due for 30-59 days, with a total of 394,723 current loans [44]. - The company had no troubled debt restructurings as of June 30, 2024, indicating stable asset quality [47]. - The Management Loan Committee can approve residential and commercial loans up to $1.0 million and $3.0 million respectively, with larger loans requiring Board approval [40]. - The company has a loan policy limit of $15.0 million for one borrower and $20.0 million for related borrowers [41]. - As of June 30, 2024, the company had no real estate owned, indicating effective management of foreclosures [49]. - As of June 30, 2024, the company had $50,000 in loans classified as substandard, a decrease from $145,000 as of June 30, 2023, with no assets classified as doubtful or loss [51]. - The allowance for credit losses (ACL) as of June 30, 2024, was $5,229,000, reflecting a comprehensive assessment of probable and estimable losses in the loan portfolio [59]. - The ACL allocated to owner-occupied commercial real estate loans was $1,331,000, representing 25.46% of the total allocated allowance [59]. - The company has established a methodology for determining the allowance for credit losses, which is subject to review by regulatory agencies [52]. Investment Portfolio - The company sold $35.4 million in lower-yielding investment securities during the year ended June 30, 2024, resulting in a pre-tax realized loss of approximately $4.4 million [64]. - The redeployment of $30.9 million from the sale of securities into residential and commercial real estate mortgages is expected to generate an additional $1.4 million in pre-tax earnings annually [64]. - The investment portfolio as of June 30, 2024, consisted primarily of U.S. government-sponsored enterprises totaling $145.7 million, with additional investments in subordinated debentures and collateralized mortgage obligations [63]. - The weighted average yield of the investment securities portfolio was 1.73% as of June 30, 2024, with various maturities contributing to the overall yield [66]. - The company maintains an investment in Federal Home Loan Bank of New York stock as part of its regulatory requirements [63]. - The company aims to maximize portfolio yield while minimizing risk and meeting liquidity needs through its investment policy [61]. Deposits and Funding - As of June 30, 2024, total deposits amounted to $807.1 million, a significant increase from $503.9 million in 2023, representing a growth of 59.9% [74]. - Non-interest-bearing demand deposits increased to $108.0 million (13.39% of total deposits) from $40.7 million (8.07% of total deposits) in 2023 [74]. - Interest-bearing deposits rose to $252.9 million (31.33% of total deposits) with an average interest rate of 1.13%, compared to $137.5 million (27.29%) at an average rate of 0.06% in 2023 [74]. - Time deposits increased to $272.8 million (33.80% of total deposits) with an average interest rate of 3.81%, up from $159.5 million (31.65%) at an average rate of 2.22% in 2023 [74]. - The aggregate amount of uninsured deposits grew to $109.7 million in 2024 from $21.2 million in 2023, indicating a substantial rise in higher-value deposits [74]. - The company had access to Federal Home Loan Bank advances of up to $100.0 million based on unused qualifying collateral as of June 30, 2024 [77]. Employee and Organizational Structure - As of June 30, 2024, the company had 116 full-time employees and two part-time employees, with no union representation [78]. - The company offers a competitive total rewards package, including a 401(k) plan with matching contributions and an Employee Stock Ownership Plan [80]. - The company maintains a strong commitment to employee development, providing access to various training programs and resources [81]. - Somerset Regal Bank, the company's only subsidiary, operates three additional subsidiaries focused on real estate and investment management [83]. Capital and Regulatory Compliance - Somerset Regal Bank exceeded all capital requirements as of June 30, 2024, and was classified as a "well capitalized" institution [95]. - The bank maintains a common equity Tier 1 capital ratio of 7.0%, a Tier 1 capital ratio of 8.5%, and a total capital ratio of 10.5% due to the capital conservation buffer [94]. - Somerset Regal Bank opted into the community bank leverage ratio framework, requiring a leverage ratio greater than 9% to satisfy regulatory capital requirements [95]. - The FDIC assesses institutions with less than $10 billion in total assets at rates ranging from 24.5 to 32 basis points of total assets less tangible capital [104]. - Somerset Regal Bank's most recent FDIC CRA rating, dated May 31, 2022, was "Satisfactory" [108]. - The bank is a member of the Federal Home Loan Bank System and was in compliance with capital stock requirements as of June 30, 2024 [109]. - The FDIC has the authority to establish higher capital requirements for individual institutions deemed necessary [95]. - Somerset Regal Bank's capital distributions and discretionary bonus payments are limited if it does not hold the required capital conservation buffer [94]. - The bank's loans to insiders must follow stringent credit underwriting procedures and are subject to specific limitations [103]. - The FDIC may terminate deposit insurance if the institution engages in unsafe practices or violates applicable laws [105]. - SR Bancorp has consolidated assets of less than $3 billion, thus not subject to consolidated regulatory capital requirements unless advised by the Federal Reserve [112]. - As of June 30, 2024, Somerset Regal Bank had approximately $3.6 million in federal net operating loss carryovers and approximately $7.2 million in state net operating loss carryovers [124]. - At June 30, 2024, Somerset Regal Bank had approximately $2.5 million in capital loss carryovers [125]. - The Corporation Business Tax rate in New Jersey is 9% on adjusted entire net income, with reduced rates for corporations with lower income levels [126]. - SR Bancorp qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions [121]. - Federal Reserve policies dictate that dividends should only be paid out of current earnings and if consistent with the organization's capital needs [115]. - SR Bancorp's common stock is registered with the SEC, subjecting it to various regulatory requirements under the Exchange Act [119]. - The Federal Reserve requires prior written notice for stock repurchases if the gross consideration equals 10% or more of the company's consolidated net worth [114]. - Federal law mandates that bank holding companies act as a source of financial and managerial strength to their subsidiary depository institutions [113]. - SR Bancorp has no plans to elect "financial holding company" status at this time [112].

Financial Performance - The Company reported a net loss of $3.0 million for the three months ended June 30, 2024, compared to a net income of $1.1 million for the previous quarter, marking a decrease of 385.2%[3] - SR Bancorp, Inc. reported a net loss of $10.9 million for the year ended June 30, 2024, compared to a net income of $1.6 million for the year ended June 30, 2023[26] - Noninterest income decreased by $4.4 million, or 852.9%, resulting in a loss of $3.9 million for the three months ended June 30, 2024, primarily due to a loss on the sale of investment securities[32] - The company incurred $4.4 million in merger-related expenses during the year, impacting overall financial performance[26] - The efficiency ratio deteriorated to 162.78% for the three months ended June 30, 2024, compared to 86.19% in the previous quarter, indicating increased operational costs[44] - Basic and diluted earnings per share were both reported at $(0.34) for the three months ended June 30, 2024, compared to $0.12 in the previous quarter[43] Assets and Deposits - Total assets increased by $369.4 million, or 56.7%, to $1.02 billion as of June 30, 2024, compared to $651.5 million a year earlier[6] - Total deposits increased by $303.2 million, or 60.2%, to $807.1 million as of June 30, 2024, driven by the assumption of Regal Bank's deposits[16] - Total assets increased to $1,020,844 thousand as of June 30, 2024, compared to $651,486 thousand in the previous year, representing a growth of 56.5%[40] - Total deposits rose to $807,100 thousand, up from $503,917 thousand year-over-year, reflecting a significant increase of 59.9%[40] Loans and Credit Losses - Net loans rose by $369.6 million, or 102.0%, to $731.9 million as of June 30, 2024, primarily due to the acquisition of Regal Bank's loan portfolio[15] - The Company recorded a provision for credit losses of $153,000 for the three months ended June 30, 2024, reflecting loan growth during the period[12] - The provision for credit losses was $4.2 million for the year ended June 30, 2024, reflecting the company's strategy related to the acquisition of Regal Bancorp[26] - Non-performing loans as a percentage of total gross loans remained low at 0.01% as of June 30, 2024, compared to 0.03% in the previous quarter[44] - The allowance for credit losses on loans as a percentage of non-performing loans was exceptionally high at 10,458.00%[44] Equity and Capital - Equity increased by $77.4 million, or 63.4%, to $199.5 million as of June 30, 2024, largely due to $86.9 million in net proceeds from the Company's initial public offering[17] - Goodwill and intangible assets were recorded at $28.1 million as of June 30, 2024, resulting from the merger with Regal Bancorp[36] Interest Income and Expenses - Net interest income decreased by $329,000, or 4.0%, to $7.9 million for the three months ended June 30, 2024, with a net interest margin of 3.22%[11] - Total interest income increased to $40.9 million for the year ended June 30, 2024, up from $16.1 million in the previous year, representing a growth of 153.5%[22] - Net interest income after provision for credit losses was $25.3 million for the year ended June 30, 2024, compared to $13.7 million in the previous year[22] - Total noninterest expense rose to $34.6 million for the year ended June 30, 2024, up from $13.2 million in the previous year, indicating increased operational costs[22] - Net interest income after provision for credit losses was $7,786 thousand for the three months ended June 30, 2024, down from $8,410 thousand in the previous quarter, a decrease of 7.4%[43] - The net interest margin decreased to 3.22% for the three months ended June 30, 2024, down from 3.31% in the previous quarter[44] Mergers and Acquisitions - The merger with Regal Bancorp was completed on September 19, 2023, resulting in significant increases in assets and deposits[7] - The Company closed two retail branch locations in New Jersey due to proximity to other branches following the merger[8]

Financial Position - SR Bancorp, Inc. repositioned its balance sheet related to its investment securities portfolio as of May 23, 2024[4] - The press release regarding the financial condition and results of operation was issued on May 23, 2024[4] Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]

Core Viewpoint - SR Bancorp, Inc. has completed a balance sheet repositioning strategy by selling lower-yielding investment securities to enhance future earnings potential [1][2]. Financial Performance - The company sold $35.4 million in book value of investment securities, incurring a pre-tax realized loss of approximately $4.4 million [2]. - The anticipated proceeds of $30.9 million from the sale will be redeployed into residential and commercial real estate mortgages, expected to generate an additional $1.4 million in pre-tax earnings annually, with a positive spread differential of approximately 465 basis points [2]. - The loss from the sale is projected to be recouped within approximately 3.27 years [2]. Capital Position - The loss on the sale of securities had a minimal impact on shareholders' equity and the company's book value per share [3]. - Somerset Regal Bank's capital levels remain well above the requirements to be categorized as well-capitalized following the sale [3]. Future Outlook - The repositioning strategy is expected to be accretive to earnings, net interest margin, and return on assets in future periods [3]. Company Overview - Somerset Regal Bank, a full-service commercial bank headquartered in Bound Brook, New Jersey, operates 15 branches across several counties [4]. - As of March 31, 2024, the bank reported total assets of $1.05 billion, net loans of $698.9 million, deposits of $838.0 million, and total equity of $199.3 million [4].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-41808 SR Bancorp, Inc. (Exact Name of Registrant as Specified in its Charter) Maryland 92-2601722 (St ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements reflect significant asset growth and a six-month net loss, primarily driven by the stock conversion and merger with Regal Bancorp, Inc [Condensed Consolidated Statements of Financial Condition](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased by **65.0%** to **$1.07 billion**, primarily due to the Regal Bancorp acquisition, which significantly boosted loans, deposits, and stockholders' equity Consolidated Statement of Financial Condition (Unaudited) | Account | Dec 31, 2023 ($ in thousands) | June 30, 2023 ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total cash and cash equivalents | 90,238 | 42,449 | 112.6% | | Loans receivable, net | 695,751 | 362,252 | 92.1% | | Goodwill and intangible assets | 29,032 | — | N/A | | **Total assets** | **1,074,940** | **651,486** | **65.0%** | | Total deposits | 843,311 | 503,917 | 67.4% | | **Total liabilities** | **876,959** | **529,402** | **65.7%** | | **Total stockholders' equity** | **197,981** | **122,084** | **62.2%** | [Condensed Consolidated Statements of (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20(Loss)%20Income) The company reported a **$1.6 million** net income for the three months ended December 31, 2023, but a **$8.9 million** net loss for the six-month period, primarily due to increased credit loss provisions and noninterest expenses including merger-related costs Financial Performance Summary (Unaudited) | Metric ($ in thousands) | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2023 | Six Months Ended Dec 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 9,019 | 3,451 | 13,164 | 6,878 | | Provision (Credit) for Credit Losses | (107) | — | 4,055 | — | | Total Noninterest Income | 365 | 353 | 878 | 701 | | Total Noninterest Expense | 7,476 | 3,329 | 20,413 | 6,705 | | **Net Income (Loss)** | **1,607** | **399** | **(8,891)** | **753** | | **Diluted EPS** | **$0.18** | **N/A** | **($1.81)** | **N/A** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant corporate actions including the mutual-to-stock conversion, IPO, and Regal Bancorp merger, which impacted accounting, loan portfolio composition, and regulatory capital status - On September 19, 2023, the company completed its conversion from a mutual to a stock organization, sold **9,055,172 shares** at **$10.00 per share**, and began trading on Nasdaq as 'SRBK'[23](index=23&type=chunk)[24](index=24&type=chunk) - Immediately following the conversion, the company acquired Regal Bancorp, Inc. for **$23.00 per share** in cash, accounted for using the acquisition method, resulting in goodwill of **$20.5 million** and a core deposit intangible of **$9.1 million**[25](index=25&type=chunk)[91](index=91&type=chunk) - The company adopted ASC 326 (CECL) on July 1, 2023, resulting in a cumulative effect adjustment that decreased retained earnings by **$34,000**[36](index=36&type=chunk)[87](index=87&type=chunk) - Post-merger, commercial loans constituted **44.8%** of total loans as of December 31, 2023, a significant increase from pre-merger levels[110](index=110&type=chunk)[111](index=111&type=chunk) - The Bank is considered 'well capitalized' as of December 31, 2023, with a Tier 1 capital to average total assets ratio of **16.19%**, exceeding the **9.00%** requirement[141](index=141&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant financial changes to the September 2023 stock conversion and Regal Bancorp merger, resulting in substantial asset growth, a six-month net loss due to one-time expenses, and enhanced liquidity and capital - The increase in total assets by **$423.5 million** to **$1.07 billion** was primarily due to the acquisition of Regal Bancorp, which had **$428.0 million** in assets, and net proceeds of **$86.9 million** from the stock offering[175](index=175&type=chunk) - The loan portfolio grew by **$333.5 million (92.1%)**, mainly from the **$336.0 million** in loans acquired from Regal, shifting the commercial loan mix to **44.83%** of total loans at December 31, 2023[179](index=179&type=chunk) - The six-month net loss of **$8.9 million** was driven by one-time expenses, including a **$5.4 million** charitable contribution, a **$4.2 million** provision for credit losses, and **$3.9 million** in merger expenses, which, if excluded, would have resulted in a **$1.2 million** net income[202](index=202&type=chunk)[203](index=203&type=chunk) - Net interest income for the three months ended December 31, 2023, increased **161.3%** to **$9.0 million**, with the net interest margin expanding to **3.56%** from **2.28%** year-over-year, reflecting the higher-yielding acquired loan portfolio[191](index=191&type=chunk) - Liquidity was significantly boosted by the net proceeds from the stock offering, with the company maintaining sufficient liquidity, evidenced by a liquid assets to total deposits ratio of **10.7%** at December 31, 2023[226](index=226&type=chunk)[235](index=235&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with sensitivity analysis indicating that a **200 basis point** increase in rates would decrease Economic Value of Equity by **17.71%** and Net Interest Income by **6.59%** Economic Value of Equity (EVE) Sensitivity Analysis (Dec 31, 2023) | Change in Interest Rates (bps) | Estimated Decrease in EVE (%) | | :--- | :--- | | +400 | (37.84)% | | +300 | (28.98)% | | +200 | (17.71)% | | +100 | (7.47)% | | -100 | 4.93% | | -200 | 7.66% | Net Interest Income (NII) Sensitivity Analysis - Year 1 (Dec 31, 2023) | Change in Interest Rates (bps) | Year 1 Change From Level (%) | | :--- | :--- | | +400 | (18.80)% | | +300 | (14.21)% | | +200 | (6.59)% | | +100 | 1.89% | | -100 | (4.26)% | | -200 | (8.80)% | [Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[239](index=239&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended December 31, 2023, that materially affected, or are reasonably likely to materially affect, the company's internal controls[240](index=240&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any pending legal proceedings that are expected to have a material adverse effect on its financial condition, results of operations, or cash flows - The company reports no pending legal proceedings that would have a material adverse effect on its financial condition or operations[243](index=243&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes in the risk factors applicable to the company from those disclosed in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023 - No material changes to risk factors have occurred since the last Annual Report on Form 10-K[244](index=244&type=chunk) [Other Information Items](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities, no defaults upon senior securities, and no other material information for the reporting period - The company reports no unregistered sales of equity securities, defaults upon senior securities, or other information for the period[245](index=245&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) The report lists the exhibits filed, which include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act (Sections 302 and 906) and Inline XBRL data files - Exhibits filed with the report include certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act, along with XBRL data files[246](index=246&type=chunk)

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended September 30, 2023 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, reflecting the impact of the September 2023 conversion and merger [Condensed Consolidated Statements of Financial Condition](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $1.11 billion, driven by the Regal Bancorp acquisition and common stock issuance | Financial Metric | September 30, 2023 (Unaudited) (in Thousands) | June 30, 2023 (in Thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,108,452** | **$651,486** | | Total cash and cash equivalents | $121,111 | $42,449 | | Loans receivable, net | $692,403 | $362,252 | | Goodwill and intangible assets | $29,487 | $0 | | **Total Liabilities** | **$913,973** | **$529,402** | | Total deposits | $877,294 | $503,917 | | **Total Stockholders' Equity** | **$194,479** | **$122,084** | [Condensed Consolidated Statements of (Loss) Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20%28Loss%29%20Income) The company reported a $10.5 million net loss for Q3 2023, driven by credit loss provisions and increased noninterest expenses | Metric (in Thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net Interest Income | $4,145 | $3,427 | | Provision for Credit Losses | $(4,162) | $0 | | Total Noninterest Income | $513 | $341 | | Total Noninterest Expense | $12,937 | $3,369 | | (Loss) Income Before Income Tax | $(12,441) | $399 | | **Net (Loss) Income** | **$(10,498)** | **$354** | | **Diluted EPS** | **$(10.03)** | **N/A** | [Condensed Consolidated Statements of Comprehensive (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20%28Loss%29) Total comprehensive loss reached $11.56 million in Q3 2023, including net loss and other comprehensive losses | Metric (in Thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net (Loss) Income | $(10,498) | $354 | | Total other comprehensive loss | $(1,063) | $(774) | | **Total comprehensive loss** | **$(11,561)** | **$(420)** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $194.5 million, primarily due to common stock issuance, partially offset by net loss - Common stock issued in the quarter amounted to **9,507,930 shares**, contributing **$91.6 million** to equity[14](index=14&type=chunk) - The net loss for the quarter reduced retained earnings by **$10.5 million**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $78.7 million, primarily from financing activities including common stock issuance | Cash Flow Activity (in Thousands) | Three Months Ended Sep 30, 2023 | | :--- | :--- | | Net cash (used in) provided by operating activities | $(6,080) | | Net cash used in investing activities | $(571) | | Net cash provided by financing activities | $85,313 | | **Net increase in cash and cash equivalents** | **$78,662** | - The company received **$84.0 million** in proceeds from the issuance of common stock as part of its conversion and stock offering[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes on accounting policies and significant events, including the September 2023 conversion and merger - On September 19, 2023, the company completed its conversion to a stock organization, sold **9,055,172 shares** at **$10.00 per share**, and merged with Regal Bancorp, Inc[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - The company adopted the CECL standard (ASU 2016-13) on July 1, 2023, resulting in a cumulative effect adjustment that decreased retained earnings by **$34,000**[31](index=31&type=chunk)[82](index=82&type=chunk) - The acquisition of Regal Bancorp resulted in the recognition of **$20.5 million** in goodwill and a **$9.0 million** core deposit intangible asset[88](index=88&type=chunk) - As of September 30, 2023, the Bank was categorized as 'well capitalized' under regulatory framework, with a Tier 1 capital to average assets ratio of **15.32%**[137](index=137&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting the impact of the September 2023 conversion and merger - The company completed its conversion to a stock organization and merger with Regal Bancorp on September 19, 2023, with the income statement for the quarter including only **11 days** of combined operations[152](index=152&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - Total assets increased by **$457.0 million (70.1%)** to **$1.11 billion**, primarily due to the **$429.4 million** in assets acquired from Regal Bancorp and net proceeds from the stock offering[174](index=174&type=chunk) - A net loss of **$10.5 million** was recorded for Q3 2023, compared to a **$354,000** net income in Q3 2022, driven by a **$5.4 million** charitable contribution, a **$4.2 million** provision for credit losses, and **$3.9 million** in other merger-related costs[182](index=182&type=chunk) - The loan portfolio composition shifted significantly post-merger, with residential mortgage loans decreasing from **97.8%** to **52.2%** of total loans, while commercial loans increased to **46.1%** of the portfolio[178](index=178&type=chunk)[179](index=179&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Assesses market risk, primarily interest rate risk, and its estimated impact on Economic Value of Equity and Net Interest Income | Change in Interest Rates (bps) | Estimated Change in EVE | Estimated Change in NII (Year 1) | | :--- | :--- | :--- | | +200 | (17.27)% | (1.8)% | | +100 | (6.82)% | +3.0% | | -100 | +4.37% | (4.9)% | | -200 | +6.45% | (10.2)% | [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[221](index=221&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[222](index=222&type=chunk) [PART II. OTHER INFORMATION](index=50&type=section&id=PART%20II.%20OTHER%20INFORMATION) Provides additional information including legal proceedings, risk factors, and equity security sales [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending legal proceedings with a material adverse effect on its financials - The company reports no pending legal proceedings that would have a material adverse effect on its financial condition or operations[224](index=224&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported compared to the prior fiscal year's Form 10-K - No material changes in risk factors were reported compared to the Form 10-K for the year ended June 30, 2023[225](index=225&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales of equity securities, use of proceeds, or issuer purchases were reported - None reported[226](index=226&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-41808 SR Bancorp, Inc. (Exact name of Registrant as specified in its Charter) Maryland 92-2601722 (State or other jurisdiction of incorpo ...

As filed with the United States Securities and Exchange Commission on July 12, 2023 Registration No. 333-270489 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 PRE-EFFECTIVE AMENDMENT NO. 3 TO THE FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 SR Bancorp, Inc. (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of incorporation or organization) Maryland 6036 92-2601722 (Standard Industrial Classification Code Number) (I.R.S. Employer ...

Table of Contents Maryland 6036 92-2601722 (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) As filed with the United States Securities and Exchange Commission on July 10, 2023 Registration No. 333-270489 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 PRE-EFFECTIVE AMENDMENT NO. 2 TO THE FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 SR Bancorp, Inc. (Exact Name of Registrant as Specified in Its Charter) (State or othe ...