srbk20260930

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 September 30, 2026

☐	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

incorporation or organization)

(I.R.S. Employer
Identification No.)

220 West Union Avenue

Bound Brook, New Jersey

08805

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (732) 560-1700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

SRBK

The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 09, 2026, the registrant had 7,793,906 shares of common stock, $0.01 par value per share, outstanding.

Table of Contents

Table of Contents

		Page

PART I.	FINANCIAL INFORMATION	1

Item 1.	Consolidated Financial Statements (unaudited)	1
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders' Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	42

PART II.	OTHER INFORMATION	43

Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44
Signatures		45

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements (unaudited).

SR Bancorp, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

September 30, 2026 (Unaudited) and June 30, 2026

(In thousands, except for share data)

	*September 30,*			*June 30,*
	*2026*			*2026*

Assets
Cash and due from banks	$	4,488		$	3,838
Interest-bearing deposits at other banks		55,700			67,623
Total cash and cash equivalents		60,188			71,461
Securities held-to-maturity, at amortized cost		122,656			131,154
Equity securities, at fair value		24			27
Loans receivable, net of allowance for credit losses of $6,116 and $5,938, respectively		947,379			901,191
Premises and equipment, net		4,605			4,815
Right-of-use asset		2,539			2,747
Restricted equity securities, at cost		2,885			4,235
Accrued interest receivable		3,794			3,477
Bank owned life insurance		38,658			38,389
Goodwill and intangible assets		25,284			25,540
Other assets		8,355			9,139
Total assets	$	1,216,367		$	1,192,175
Liabilities and Equity
Liabilities
Deposits:
Noninterest-bearing		98,643			128,155
Interest-bearing		880,603			798,266
Total deposits		979,246			926,421
Borrowings		35,000			65,000
Advance payments by borrowers for taxes and insurance		9,109			9,639
Accrued interest payable		225			216
Lease liability		2,571			2,785
Other liabilities		7,899			6,319
Total liabilities		1,034,050			1,010,380
Equity
Preferred Stock, $0.01 par value, 5,000,000 shares authorized, none issued		—			—
Common stock, $0.01 par value, 50,000,000 authorized; 7,917,229 and 7,934,356 shares issued and outstanding as of September 30, 2026, and June 30, 2026, respectively		79			79
Additional paid-in capital		66,622			66,465
Retained earnings		122,889			122,257
Unearned compensation ESOP		(6,180	)		(6,275	)
Accumulated other comprehensive loss		(1,093	)		(731	)
Total stockholders' equity		182,317			181,795
Total liabilities and stockholders' equity	$	1,216,367		$	1,192,175

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

For the Three Months Ended September 30, 2026 and 2025

(In thousands, except for share data, unaudited)

	*Three Months Ended*
	*September 30,*
	*2026*			*2025*
Interest Income
Loans, including fees	$	12,678		$	10,895
Securities:
Taxable		615			584
Interest bearing deposits at other banks		405			456
Total interest income		13,698			11,935
Interest Expense
Deposits:
Demand		2,260			1,565
Savings and time		2,587			2,395
Borrowings		549			380
Total interest expense		5,396			4,340
Net Interest Income		8,302			7,595
Provision for Credit Losses		177			171
Net Interest Income After Provision for Credit Losses		8,125			7,424
Noninterest Income
Service charges and fees		239			230
Increase in cash surrender value of bank owned life insurance		269			265
Fees and service charges on loans		39			32
Unrealized loss on equity securities		(3	)		(2	)
Realized gain on sale of loans		42			—
Other		16			40
Total noninterest income		602			565
Noninterest Expense
Salaries and employee benefits		4,088			3,853
Occupancy		548			536
Furniture and equipment		339			353
Data processing		546			540
Advertising		139			130
FDIC premiums		123			120
Directors fees		104			97
Professional fees		453			437
Insurance		128			134
Telephone, postage and supplies		159			202
Other		670			692
Total noninterest expense		7,297			7,094
Income Before Income Tax Expense		1,430			895
Income Tax Expense		362			202
Net Income	$	1,068		$	693
Basic earnings per share	$	0.15		$	0.09
Diluted earnings per share	$	0.15		$	0.09
Weighted average number of common shares outstanding - basic		7,042,332			7,845,230
Weighted average number of common shares outstanding - diluted		7,325,728			7,927,521

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Three Months Ended September 30, 2026 and 2025

(In thousands, unaudited)

	Three Months Ended
	September 30,
	2026			2025
Net Income	$	1,068		$	693
Other Comprehensive Income
Change in defined pension plan for unrealized actuarial (losses) gains net of income tax benefit of $142 and $(113), respectively		(362	)		289
Total other comprehensive (loss) income		(362	)		289
Total comprehensive income	$	706		$	982

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders' Equity

For the Three Months Ended September 30, 2026 and 2025

(In thousands, unaudited)

																*Accumulated*
	*Common*			*Common*			*Additional*						*Unearned*			*Other*
	*Stock*			*Stock*			*Paid in*			*Retained*			*ESOP*			*Comprehensive*
	*Shares*			*Amount*			*Capital*			*Earnings*			*Compensation*			*Loss*			*Total*
Balance, June 30, 2026		7,934,356		$	79		$	66,465		$	122,257		$	(6,275	)	$	(731	)	$	181,795
Net income		—			—			—			1,068			—			—			1,068
Other comprehensive (loss), net of tax		—			—			—			—			—			(362	)		(362	)
Repurchase of common shares		(17,127	)		—			(331	)		—			—			—			(331	)
Cash dividends declared on common stock, $0.06 per share		—			—			—			(436	)		—			—			(436	)
ESOP shares earned, 9,508 shares		—			—			91			—			95			—			186
Incentive plan compensation expense		—			—			397			—			—			—			397
Balance, September 30, 2026		7,917,229		$	79		$	66,622		$	122,889		$	(6,180	)	$	(1,093	)	$	182,317
Balance, June 30, 2025		8,875,170		$	89		$	80,843		$	120,505		$	(6,655	)	$	(1,002	)	$	193,780
Net income		—			—			—			693			—			—			693
Other comprehensive (loss), net of tax		—			—			—			—			—			289			289
Repurchase of common shares		(198,310	)		(2	)		(2,924	)		—			—			—			(2,926	)
Cash dividends declared on common stock, $0.05 per share		—			—			—			(400	)		—			—			(400	)
ESOP shares earned, 9,508 shares		—			—			43			—			95			—			138
Incentive plan compensation expense		—			—			359			—			—			—			359
Balance, September 30, 2025		8,676,860		$	87		$	78,321		$	120,798		$	(6,560	)	$	(713	)	$	191,933

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

For the Three Months Ended September 30, 2026 and 2025

(In thousands, except for share data, unaudited)

	*Three Months Ended*
	*September 30,*
	*2026*			*2025*
Cash Flows from Operating Activities
Net income	$	1,068		$	693
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		177			171
Depreciation		236			218
Deferred income tax (benefit) expense		(142	)		72
Accretion of acquisition fair value adjustments, net		(303	)		(618	)
Amortization of core deposit intangible asset		256			315
Net amortization of premiums and discounts on securities		30			42
Net amortization of deferred loan fees, costs and discounts		102			50
Income from cash surrender value of bank owned life insurance		(269	)		(265	)
Stock-based compensation expense		583			497
Unrealized loss on equity securities		3			2
Gain on sale of loans held for sale		(42	)		—
Proceeds from sales of loans held for sale		1,751			—
Originations of loans held for sale		(1,709	)		—
(Increase) decrease in:
Accrued interest receivable		(316	)		(87	)
Other assets		(232	)		470
Increase (decrease) in other liabilities		1,580			(338	)
Net cash provided by operating activities		2,773			1,222
Cash Flows from Investing Activities
Proceeds from maturities, calls and principal repayments of securities held-to-maturity		8,468			3,570
Purchase of securities held-to-maturity		—			—
Net (decrease) increase in loans receivable		(45,333	)		(28,793	)
Purchase of bank owned life insurance		—			—
Purchase of premises and equipment		(26	)		(76	)
Redemption (purchase) of restricted equity securities		1,350			(225	)
Net cash used in investing activities		(35,541	)		(25,524	)
Cash Flows from Financing Activities
Net increase in interest bearing deposits		82,325			20,764
Net (decrease) increase in noninterest bearing deposits		(29,512	)		2,811
Net decrease in advance payments by borrowers for taxes and insurance		(530	)		(392	)
Net (decrease) increase in borrowings		(30,000	)		5,000
Dividends paid		(460	)		(429	)
Repurchase of common stock		(328	)		(2,926	)
Cash paid for excise taxes on repurchased shares		—			—
Exercise of stock options		—			—
Receipts from equity plan participants for withholding taxes on share-based awards		—			—
Cash paid for withholding taxes on share-based awards		—			—
Net cash provided by financing activities		21,495			24,828
Net (decrease) increase in cash and cash equivalents		(11,273	)		526
Cash and Cash Equivalents, Beginning of Period		71,461			57,779
Cash and Cash Equivalents, End of Period	$	60,188		$	58,305
Supplementary Cash Flow Information
Cash paid during the period for:
Interest paid	$	5,247		$	4,287
Income taxes paid		—		$	—

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

1.	Summary of Significant Accounting Policies

Basis of Presentation and Use of Estimates

The accompanying unaudited Consolidated Financial Statements of SR Bancorp, Inc. (the “Company”) have been prepared in conformity with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. The Consolidated Financial Statements are prepared on an accrual basis and include the accounts of the Company’s wholly-owned subsidiary, Somerset Regal Bank (the “Bank”) and its wholly-owned subsidiaries Somerset Investment Co. (the “Investment Co.”), RB Properties, LLC and Somerset Consumer Service Corp. (“SCS”). All significant intercompany accounts and transactions have been eliminated in consolidation.

The Investment Co. is a special purpose entity subject to the investment company provisions of the New Jersey Corporation Business Tax Act whose activities are limited to holding investment securities and recognizing income and other gains/losses thereon. RB Properties, LLC was formed to own and manage real estate property acquired through foreclosure or in lieu of foreclosure in connection with loans. RB Properties, LLC is currently inactive. SCS was originally formed to sell annuity products and is currently inactive.

The interim Consolidated Financial Statements reflect all adjustments, including normal and recurring accruals, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended September 30, 2026 are not necessarily indicative of the results of operations that may be expected for the full fiscal year or any other period. In preparing the Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the periods presented. Actual results could differ from these estimates.

Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2026.

Business

SR Bancorp, Inc., a Maryland corporation, is the holding company for Somerset Regal Bank. The Bank, a New Jersey chartered commercial bank which was formed in 1887, serves Essex, Hunterdon, Middlesex, Morris, Somerset and Union counties in New Jersey. As a locally managed commercial bank, the Bank provides retail and commercial banking services to individuals, businesses and local municipalities through its 14 full-service branch locations.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

On September 19, 2023, Somerset Savings Bank, SLA converted from the mutual to stock form of organization at which point, the Company became the holding company for Somerset Regal Bank. On that same date, SR Bancorp, Inc. completed its stock offering. The Company’s common stock began trading on the Nasdaq Capital Market under the trading symbol “SRBK” on September 20, 2023. Somerset Regal Bank was formed through the combination of Somerset Savings Bank, SLA and Regal Bank, two New Jersey chartered institutions, on September 19, 2023.

Concentrations of Credit Risk

The Company's lending activity is concentrated in loans secured by real estate located primarily in New Jersey. Credit risk exposure in this area of lending is mitigated by adhering to conservative underwriting practices and policies, and close monitoring of the loan portfolio. The Company does not have any significant concentrations to any one industry or customer.

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. The Company's portfolio consists principally of highly-rated government-sponsored agency securities.

Segment Reporting

Accounting Standards Codification ("ASC") Topic 280, Segment Reporting, establishes standards for the way business enterprises report information about operating segments in annual Consolidated Financial Statements. The Company operates exclusively as a community bank within the "Community Banking" financial services industry. Community Banking encompasses the Company's primary business, which includes providing a wide range of commercial, retail and related banking services. The Company's primary focus within Community Banking is to grow loans using deposits generated by the Company's branches. Our business is generated principally in central and northern New Jersey.

The Company’s CEO is the chief operating decision maker who uses consolidated net income to assess the performance and profitability of our single business segment. The Company assesses consolidated net income on a monthly basis, including variances to budget and prior period results. Consideration is given to performance of components of the business, such as branches and geographic regions, which are then aggregated. 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.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Recently Adopted Accounting Changes

In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for annual financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU require annual disclosure of more detailed tax rate reconciliation categories and income taxes paid by geography and jurisdiction. The Company adopted this standard on July 1, 2025, which did not have a material impact on our financial statements. 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.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards ("ASU 2024-01"). This update provides guidance for profits interest and similar awards. 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. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. The Company adopted ASU 2024-02 on July 1, 2025, which did not have a material impact on its consolidated financial statements.

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. ASU 2024-03 outlines the specific costs that are required to be disclosed, which include costs such as: employee compensation, depreciation, intangible asset amortization, and selling costs. It also requires qualitative descriptions of the amounts remaining in the relevant income statement captions that are not separately disaggregated quantitatively in the notes to the financial statements and the entity's definition of selling expenses. The disclosures are required for each interim and annual reporting period. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026. In January 2025, the FASB issued Accounting Standards Update 2025-01, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Clarifying the Effective Date" ("ASU 2025-01"), clarifying the interim reporting date when an entity must adopt ASU 2024-03. According to ASU 2025-01, ASU 2024-03 is effective for interim periods within fiscal years beginning after December 15, 2027. 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.

In September 2025, FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). This update modernizes internal-use software guidance to adapt to the agile basis predominantly used to develop software. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company does not expect the adoption of ASU 2025-06 will have a material impact on its consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans (“ASU 2025-08”). 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. 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”). ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026 on a prospective basis. Early adoption is permitted. The Company does not expect the adoption of ASU 2025-08 will have a material impact on its consolidated financial statements.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

In December 2025, FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). This update improves navigability of the required interim disclosures and clarifies when that guidance is applicable. The amendments in this Update are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company does not expect the adoption of ASU 2025-11 will have a material impact on its consolidated financial statements.

In December 2025, FASB issued ASU 2025-12, Codification Improvements ("ASU 2025-12"). This update makes changes to the Accounting Standards Codification affecting a wide variety of topics to clarify, correct errors and make minor improvements. 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. 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 occurring after September 30, 2026 up to the date these financial statements were issued and filed with the Securities and Exchange Commission and has not identified any subsequent events.

2.	Earnings Per Share

Basic earnings (loss) per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding. 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.

The following table presents the composition of the weighted average common shares used in the earnings per share calculation:

	*Three Months Ended*
	*September 30,*
	*2026*			*2025*
Net income	$	1,068		$	693
Weighted average number of common shares outstanding		7,932,004			8,810,261
Less: Average unallocated ESOP shares		(622,769	)		(660,800	)
Less: Average unvested restricted stock awards		(266,903	)		(304,231	)
Weighted average common shares outstanding used to calculate basic earnings per common share		7,042,332			7,845,230
Add: Dilutive effect of common stock equivalents		283,396			82,291
Weighted average common shares outstanding used to calculate diluted earnings per common share		7,325,728			7,927,521
Basic income per common share	$	0.15		$	0.09
Diluted income per common share	$	0.15		$	0.09
Number of common stock equivalents excluded from the calculation of diluted earnings as they are anti-dilutive		58,805			760,593

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

3.	Investment Securities

The Company owned no investment securities available-for-sale at September 30, 2026 or June 30, 2026. The amortized cost and approximate fair value of securities held-to-maturity are as follows at the dates indicated:

	*September 30, 2026*
			*Gross*		*Gross*
	*Amortized*		*Unrealized*		*Unrealized*			*Fair*
	*Cost*		*Gains*		*Losses*			*Value*
	(In thousands)
Federal National Mortgage Association	$	75,902	$	4	$	(15,388	)	$	60,518
Federal Home Loan Mortgage Corporation		38,875		11		(7,127	)		31,759
Government National Mortgage Association		167		1		—			168
Subordinated Debt		6,000		—		(63	)		5,937
CMO		1,512		—		(90	)		1,422
Foreign Government Bonds		200		—		—			200
Total	$	122,656	$	16	$	(22,668	)	$	100,004

	*June 30, 2026*
			*Gross*		*Gross*
	*Amortized*		*Unrealized*		*Unrealized*			*Fair*
	*Cost*		*Gains*		*Losses*			*Value*
	(In thousands)
Federal National Mortgage Association	$	78,006	$	3	$	(11,842	)	$	66,167
Federal Home Loan Mortgage Corporation		40,130		—		(5,477	)		34,653
Government National Mortgage Association		176		2		—			178
Subordinated Debt		11,000		—		(161	)		10,839
CMO		1,642		—		(89	)		1,553
Foreign Government Bonds		200		—		—			200
Total	$	131,154	$	5	$	(17,569	)	$	113,590

The amortized cost and fair value of securities held-to-maturity by contractual maturity at September 30, 2026 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations. Securities are assigned to categories based on contractual maturity except for mortgage-backed securities and CMOs, which are based on the estimated average life of the securities.

	*September 30, 2026*
	*Amortized*		*Fair*
	*Cost*		*Value*
	(In thousands)
Due within 1 year	$	—	$	—
Due after 1 but within 5 years		200		200
Due after 5 but within 10 years		6,000		5,937
Due after 10 years		—		—
Mortgage-backed securities		116,456		93,867
Total	$	122,656	$	100,004

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

On a quarterly basis, management evaluates whether there is a credit loss associated with any declines in fair value on its securities portfolio. Management considers the nature of the collateral, default rates, delinquency rates, credit ratings and interest rate changes, among other factors. The Company's held-to-maturity portfolio predominantly consists of mortgage-backed securities issued by the U.S. government and government-sponsored agencies for which management has determined to have no expected credit loss. The Company's held-to-maturity portfolio also included an investment grade subordinated note issued by a bank holding company located in New Jersey. At September 30, 2026 and June 30, 2026, the Company had no securities held-to-maturity that were past due 30 days or more with respect to principal or interest payments.

Equity securities consisted of several equity investments in consumer banking and financial services companies. At September 30, 2026 and June 30, 2026, the Company had $24,000 and $27,000, respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities for the three months ended September 30, 2026 and 2025:

	*Three Months Ended*
	*September 30,*
	*2026*			*2025*
	(In thousands)
Net loss recognized on equity securities	$	(3	)	$	(2	)
Less: Net gain recognized on equity securities sold/acquired		—			—
Net unrealized loss recognized on equity securities	$	(3	)	$	(2	)

At September 30, 2026 and June 30, 2026, mortgage-backed securities with a carrying value of $7.3 million were pledged as collateral to secure public funds on deposit. During the three months ended September 30, 2026 and 2025, there were no sales of securities held-to-maturity.

4.	Loans Receivable

Loans at September 30, 2026 and June 30, 2026 are summarized as follows:

	September 30,			June 30,
	2026			2026
	(In thousands)
Owner occupied commercial real estate loans	$	47,050		$	48,903
Other commercial real estate loans	$	94,490			92,663
Multi-family loans	$	284,466			252,924
Commercial and industrial loans	$	19,678			18,797
Total commercial loans		445,684			413,287
Residential mortgage loans	$	489,742			475,870
Consumer and other loans	$	15,283			15,331
Total loans		950,709			904,488
Allowance for credit losses		(6,116	)		(5,938	)
Deferred loan costs, net		2,786			2,641
Loans receivable, net	$	947,379		$	901,191

The Company engages primarily in the lending of fixed-rate and adjustable-rate residential mortgage loans and adjustable-rate commercial and multifamily real estate loans. Lending activities are targeted to individuals within the Company's geographic footprint. Risks associated with lending activities include changes in economic conditions and 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 is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-income ratios, credit scores and conservative underwriting standards with loan-to-value ratios of generally no more than 75% for commercial loans, 75% for multifamily loans and 80% for residential loans. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion generally require private mortgage insurance. The real estate home equity portfolio consists of fixed-rate home equity loans and variable-rate home equity lines of credit. Risks associated with second lien loans secured by residential properties are generally lower than commercial loans and include general economic risks, such as the strength of the job market, employment stability and the strength of the housing market.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

At September 30, 2026 and June 30, 2026, commercial loans represented 46.9% and 45.7% of total loans, respectively, while residential mortgage and consumer and other loans represented 53.1% and 54.3%, respectively, nearly all of which is concentrated within our primary market area in New Jersey. At September 30, 2026 and June 30, 2026, the Company held 95.6% and 95.5%, respectively, of its commercial loan portfolio in commercial real estate, consisting of multi-family, mixed use and owner occupied loans, with less than 2.12% secured by office buildings as of September 30, 2026 and less than 1.0% secured by office buildings as of June 30, 2026. The Company had one non-accrual residential loan of $99,000 at September 30, 2026 and no non-accrual commercial loans at September 30, 2026 and June 30, 2026.

The following tables summarize the activity in the allowance for credit losses by loan class for the three months ended September 30, 2026 and 2025.

	*Three Months Ended September 30, 2026*
	*Owner*
	*Occupied*			*Other*				*Commercial*
	*Commercial*			*Commercial*		*Multi-*		*and*		*Residential*			*Consumer*
	*Real Estate*			*Real Estate*		*Family*		*Industrial*		*Mortgage*			*and Other*		*Total*
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	481		$	186	$	1,739	$	206	$	2,975		$	351	$	5,938
Charge-offs		—			—		—		—		—			—		—
Recoveries		—			—		—		1		—			—		1
Provisions (credits)		(17	)		1		187		7		(1	)		—		177
Ending balance	$	464		$	187	$	1,926	$	214	$	2,974		$	351	$	6,116
Ending balance,
Individually evaluated for impairment	$	—		$	—	$	—	$	—	$	—		$	—	$	—
Ending balance,
Collectively evaluated for impairment	$	464		$	187	$	1,926	$	214	$	2,974		$	351	$	6,116
Loans Receivable:
Ending balance	$	47,050		$	94,490	$	284,466	$	19,678	$	489,742		$	15,283	$	950,709
Ending balance,
Individually evaluated for impairment	$	—		$	—	$	—	$	—	$	—		$	—	$	—
Ending balance,
Collectively evaluated for impairment	$	47,050		$	94,490	$	284,466	$	19,678	$	489,742		$	15,283	$	950,709

	*Three Months Ended September 30, 2025*
	*Owner*
	*Occupied*			*Other*				*Commercial*
	*Commercial*			*Commercial*		*Multi-*		*and*		*Residential*		*Consumer*
	*Real Estate*			*Real Estate*		*Family*		*Industrial*		*Mortgage*		*and Other*		*Total*
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	675		$	179	$	1,830	$	135	$	2,308	$	235	$	5,362
Charge-offs		—			—		—		—		—		—		—
Recoveries		—			—		—		—		—		—		—
Provisions (credits)		(38	)		40		27		61		68		13		171
Ending balance	$	637		$	219	$	1,857	$	196	$	2,376	$	248	$	5,533
Ending balance,
Individually evaluated for impairment	$	—		$	—	$	—	$	—	$	—	$	—	$	—
Ending balance,
Collectively evaluated for impairment	$	637		$	219	$	1,857	$	196	$	2,376	$	248	$	5,533
Loans Receivable:
Ending balance	$	52,385		$	80,969	$	224,867	$	17,646	$	439,851	$	13,786	$	829,504
Ending balance,
Individually evaluated for impairment	$	—		$	—	$	—	$	—	$	—	$	—	$	—
Ending balance,
Collectively evaluated for impairment	$	52,385		$	80,969	$	224,867	$	17,646	$	439,851	$	13,786	$	829,504

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table presents the credit risk profile of loans by class and fiscal year of origination as of September 30, 2026 and June 30, 2026:

	*September 30, 2026*
	*2027*		*2026*		*2025*		*2024*		*2023*		*Prior*		*Revolving*		*Total*
	(In thousands)
Owner Occupied Commercial Real Estate
Risk Rating
Pass	$	—	$	2,135	$	—	$	6,851	$	3,647	$	34,417	$	—	$	47,050
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Owner Occupied Commercial Real Estate	$	—	$	2,135	$	—	$	6,851	$	3,647	$	34,417	$	—	$	47,050
Other Commercial Real Estate
Risk Rating
Pass	$	5,197	$	28,060	$	5,668	$	1,334	$	3,432	$	50,799	$	—	$	94,490
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Other Commercial Real Estate	$	5,197	$	28,060	$	5,668	$	1,334	$	3,432	$	50,799	$	—	$	94,490
Multi-Family
Risk Rating
Pass	$	46,208	$	46,775	$	49,816	$	28,116	$	25,027	$	88,524	$	—	$	284,466
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Multi-Family	$	46,208	$	46,775	$	49,816	$	28,116	$	25,027	$	88,524	$	—	$	284,466
Commercial and Industrial
Risk Rating
Pass	$	20	$	11,364	$	1,350	$	859	$	1,650	$	4,435	$	—	$	19,678
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial and Industrial	$	20	$	11,364	$	1,350	$	859	$	1,650	$	4,435	$	—	$	19,678
Residential Mortgage
Risk Rating
Pass	$	26,341	$	94,702	$	63,436	$	48,119	$	46,604	$	210,540	$	—	$	489,742
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Residential Mortgage	$	26,341	$	94,702	$	63,436	$	48,119	$	46,604	$	210,540	$	—	$	489,742
Consumer and Other
Risk Rating
Pass	$	429	$	1,327	$	711	$	285	$	208	$	419	$	11,904	$	15,283
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Consumer and Other	$	429	$	1,327	$	711	$	285	$	208	$	419	$	11,904	$	15,283
Total Loans
Pass	$	78,195	$	184,363	$	120,981	$	85,564	$	80,568	$	389,134	$	11,904	$	950,709
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Loans	$	78,195	$	184,363	$	120,981	$	85,564	$	80,568	$	389,134	$	11,904	$	950,709
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	*June 30, 2026*
	*2026*		*2025*		*2024*		*2023*		*2022*		*Prior*		*Revolving*		*Total*
	(In thousands)
Owner Occupied Commercial Real Estate
Risk Rating
Pass	$	3,175	$	—	$	6,884	$	3,702	$	7,570	$	27,572	$	—	$	48,903
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Owner Occupied Commercial Real Estate	$	3,175	$	—	$	6,884	$	3,702	$	7,570	$	27,572	$	—	$	48,903
Other Commercial Real Estate
Risk Rating
Pass	$	28,221	$	5,687	$	1,339	$	3,450	$	886	$	53,080	$	—	$	92,663
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Other Commercial Real Estate	$	28,221	$	5,687	$	1,339	$	3,450	$	886	$	53,080	$	—	$	92,663
Multi-Family
Risk Rating
Pass	$	46,067	$	52,730	$	28,209	$	25,224	$	21,870	$	78,824	$	—	$	252,924
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Multi-Family	$	46,067	$	52,730	$	28,209	$	25,224	$	21,870	$	78,824	$	—	$	252,924
Commercial and Industrial
Risk Rating
Pass	$	8,971	$	1,360	$	869	$	3,042	$	1,321	$	3,234	$	—	$	18,797
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial and Industrial	$	8,971	$	1,360	$	869	$	3,042	$	1,321	$	3,234	$	—	$	18,797
Residential Mortgage
Risk Rating
Pass	$	97,723	$	65,064	$	49,303	$	46,960	$	67,429	$	149,391	$	—	$	475,870
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Residential Mortgage	$	97,723	$	65,064	$	49,303	$	46,960	$	67,429	$	149,391	$	—	$	475,870
Consumer and Other
Risk Rating
Pass	$	1,686	$	730	$	669	$	279	$	51	$	404	$	11,512	$	15,331
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Consumer and Other	$	1,686	$	730	$	669	$	279	$	51	$	404	$	11,512	$	15,331
Total Loans
Pass	$	185,843	$	125,571	$	87,273	$	82,657	$	99,127	$	312,505	$	11,512	$	904,488
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Loans	$	185,843	$	125,571	$	87,273	$	82,657	$	99,127	$	312,505	$	11,512	$	904,488
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

As of September 30, 2026, the Company had one residential mortgage loan totaling $99,000 that was considered collateral dependent and was placed on non-accrual. In October 2026, the borrower remitted all past-due amounts, bringing the loan current, and the loan was restored to accrual status. As of June 30, 2026, the Company had no collateral dependent or non-accrual loans.

The following tables present the classes of loans summarized by past due status as of September 30, 2026 and June 30, 2026:

	*September 30, 2026*
	*Delinquency Status*
					*90 Days or*
					*More Past*
					*Due and*
					*Still*				*Total*
	*30-59 Days*		*60-89 Days*		*Accruing*		*Non-*		*Past*		*Total*
	*Past Due*		*Past Due*		*Past Due*		*Accrual*		*Due*		*Current*		*Total*
	(In thousands)
Owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	47,050	$	47,050
Other commercial real estate		—		—		—		—		—		94,490		94,490
Multi-family		—		—		—		—		—		284,466		284,466
Commercial and industrial		—		—		—		—		—		19,678		19,678
Residential mortgage		3,499		152		—		99		3,750		485,992		489,742
Consumer and other		45		98		—		—		143		15,140		15,283
Total	$	3,544	$	250	$	—	$	99	$	3,893	$	946,816	$	950,709

	*June 30, 2026*
	*Delinquency Status*
					*90 Days or*
					*More Past*
					*Due and*
					*Still*				*Total*
	*30-59 Days*		*60-89 Days*		*Accruing*		*Non-*		*Past*		*Total*
	*Past Due*		*Past Due*		*Past Due*		*Accrual*		*Due*		*Current*		*Total*
	(In thousands)
Owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	48,903	$	48,903
Other commercial real estate		—		—		—		—		—		92,663		92,663
Multi-family		—		—		—		—		—		252,924		252,924
Commercial and industrial		—		—		—		—		—		18,797		18,797
Residential mortgage		1,525		629		—		—		2,154		473,716		475,870
Consumer and other		47		—		—		—		47		15,284		15,331
Total	$	1,572	$	629	$	—	$	—	$	2,201	$	902,287	$	904,488

At September 30, 2026 and June 30, 2026, the Company had no foreclosed real estate owned and there were no loan modifications to borrowers experiencing financial difficulty.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

5.	Premises and Equipment

Premises and equipment at September 30, 2026 and June 30, 2026 are summarized as follows:

	*September 30,*			*June 30,*
	*2026*			*2026*
	(In thousands)
Land	$	926		$	926
Buildings and leasehold improvements		9,095			9,078
Furniture, fixtures and equipment		6,898			6,889
Total		16,919			16,893
Accumulated depreciation		(12,314	)		(12,078	)
Net	$	4,605		$	4,815

Depreciation expense amounted to $236,000 and $218,000 for the three months ended September 30, 2026 and 2025, respectively.

6.	Leases

The Company accounts for its leases in accordance with ASC Topic 842. The Company's right-of-use asset and operating lease liability are recognized at lease commencement based on the present value of the remaining lease payment obligations using discount rates that represent the Company’s incremental borrowing rate as of the lease commencement dates. The Company leases only office space and equipment under operating leases, with original lease terms ranging from five to ten years. The Company elected not to include short-term leases with initial terms of twelve months or less on the Consolidated Statements of Financial Condition. As of September 30, 2026, the Company had not entered into any material leases that have not yet commenced. The operating lease agreements recognized on the Consolidated Statements of Financial Condition as a right-of-use asset and a corresponding lease liability, as well as other information related to the Company's operating leases, are summarized in the table below.

	Three Months Ended
	September 30,
	2026		2025
	(In thousands)
Operating lease cost	$	218	$	219
Cash paid for amounts included in the measurement of lease liabilities	$	214	$	212

	*September 30,*			*June 30,*
	*2026*			*2026*
	(In thousands)
Right-of-use asset	$	2,539		$	2,747
Lease liability	$	2,571		$	2,785
Weighted-average remaining lease term, in years		3.33			3.53
Weighted-average discount rate		1.56	%		1.56	%

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Future undiscounted minimum lease payments for operating leases with initial terms of one year or more as of September 30, 2026 are as follows:

	(Dollars in
September 30, 2026	thousands)
2027	$	663
2028		785
2029		733
2030		353
2031		104
Thereafter		—
Total future minimum lease payments		2,638
Less: imputed interest		(67	)
Total	$	2,571

7.	Goodwill and Intangible Assets

Goodwill and core deposit intangibles resulted from the Company's acquisition of Regal Bancorp in September 2023, which was accounted for under FASB ASC 805, Business Combinations. As of September 30, 2026, the carrying amount of goodwill was $20.4 million and the carrying amount of the core deposit intangibles, net of accumulated amortization, was $4.9 million. The intangible assets are related to core deposits and are being amortized over 10 years, using an accelerated method.

The changes in the carrying amount of goodwill and core deposit intangibles for the three months ended September 30, 2026 and 2025 are summarized as follows:

	Three Months Ended
	September 30,
	2026			2025
	(In thousands)
Balance at beginning of period	$	25,540		$	26,708
Amortization expense		(256	)		(315	)
Balance at end of period	$	25,284		$	26,393

Goodwill and intangible assets at September 30, 2026 and June 30, 2026:

	*September 30,*		*June 30,*
	*2026*		*2026*
	(In thousands)
Goodwill	$	20,417	$	20,417
Core deposit intangibles, net of amortization		4,867		5,123
Goodwill and intangible assets	$	25,284	$	25,540

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

As of September 30, 2026, the amortization of the core deposit intangibles in future fiscal years is as follows:

	*Amount*
	(In thousands)
2027	$	694
2028		774
2029		657
2030		650
Thereafter		2,092
Total	$	4,867

8.	Deposits

Deposits at September 30, 2026 and June 30, 2026 consisted of the following:

	*September 30,*		*June 30,*
	*2026*		*2026*
	(In thousands)
Demand accounts:
Interest-bearing	$	428,195	$	389,869
Noninterest-bearing		98,643		128,155
Total demand accounts		526,838		518,024
Savings and club		120,318		128,689
Certificates of deposit		332,090		279,708
Total	$	979,246	$	926,421

As of September 30, 2026 and June 30, 2026, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $193.9 million and $191.6 million, respectively. Certificates of deposit with balances in excess of the Federal Deposit Insurance Corporation (the "FDIC") insurance limit of $250,000 at September 30, 2026 and June 30, 2026 amounted to approximately $71.3 million and $70.9 million, respectively. Uninsured deposits totaling $32.1 million and $26.7 million at September 30, 2026 and June 30, 2026, respectively, of municipalities and local government agencies are protected under a New Jersey supplemental insurance program with collateralized assets.

At September 30, 2026, the scheduled maturities of certificates of deposit are as follows:

	(In thousands)
Year ending September 30, 2027	$	270,482
Year ending September 30, 2028		58,626
Year ending September 30, 2029		1,594
Year ending September 30, 2030		776
Year ending September 30, 2031		612
Total	$	332,090

9.	Borrowings

The Company can borrow overnight funds from the Federal Home Loan Bank (the "FHLB") under a redesigned overnight advance program up to the Company’s maximum borrowing capacity based on the Company’s ability to collateralize such borrowings, subject to limits authorized by the Company's Board of Directors. At September 30, 2026 and June 30, 2026, the Company's maximum authorized borrowing capacity at the FHLB was $165.0 million.

At September 30, 2026, the Company had an outstanding borrowing of $35.0 million with the Federal Home Loan Bank of New York at a fixed rate of 3.67% maturing on September 8, 2027. At June 30, 2026, the Company had outstanding borrowings totaling $65.0 million with the Federal Home Loan Bank of New York.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

As of September 30, 2026 and June 30, 2026, the Company's Board of Directors had authorized borrowings of up to $25.0 million from the Federal Reserve Bank of New York (the “FRB-NY”), secured by pledges of the Company’s qualifying loan portfolio and generally on overnight terms with an interest rate quoted at the time of the borrowing. The Company had no outstanding borrowings from the FRB-NY at September 30, 2026 or June 30, 2026.

10.

Commitments and Contingencies

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the statement of financial position.

The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

At September 30, 2026, total unfunded loan-related commitments, including lines of credit, amounted to $106.5 million, comprised of $38.8 million for unused equity lines of credit and $67.7 million to originate loans, expiring within three months.

At June 30, 2026, total unfunded loan-related commitments, including lines of credit, amounted to $71.0 million, comprised of $40.8 million for unused equity lines of credit and $30.2 million to originate loans, expiring within three months.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the counterparty.

A reserve for unfunded commitments is recognized and included in other liabilities on the Consolidated Statements of Financial Condition. Periodic adjustments to either increase or decrease the reserve are recognized in non-interest expense in the Consolidated Statements of Income. The Company recorded $0 and $5,000 of expense for the three months ended September 30, 2026 and 2025, respectively. The balance for unfunded commitments was $60,000 at September 30, 2026 and June 30, 2026.

11.

Stock-Based Compensation

The Company has several compensation and benefit arrangements involving shares of the Company’s stock. Stock-based compensation expense included the following components for the three-month periods ended September 30, 2026 and 2025:

	*Three Months Ended*
	*September 30,*
	*2026*		*2025*
	(In thousands)
Fair value of 9,508 shares earned by ESOP participants	$	186	$	138

Incentive Plan Awards:
Stock options	$	193	$	176
Restricted stock awards		204		183
Total incentive plan compensation expense	$	397	$	359

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

On November 20, 2024, the Company adopted the SR Bancorp, Inc. 2024 Equity Incentive Plan ("2024 Equity Plan”). The 2024 Equity Plan authorizes 1,331,110 shares of common stock for equity-based compensation awards including restricted stock awards, restricted stock units, non-qualified stock options, and incentive stock options. As of September 30, 2026, there were 183,959 shares available for future grants.

Stock Options

The following table represents stock option activities for the periods indicated:

	*Three Months Ended September 30, 2026*
					*Weighted-*
			*Weighted-*		*Average*
			*Average*		*Remaining*		*Aggregate*
			*Exercise*		*Contractual*		*Intrinsic*
	*Shares*		*Price*		*Term (years)*		*Value*
								(In thousands)
Balance at beginning of period		795,628	$	12.35		—	$	—
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited or expired		—		—		—		—
Balance at end of period		795,628	$	12.35		8.35	$	5,169

Exercisable - September 30, 2026		128,349	$	11.95		8.27	$	886

	*Three Months Ended September 30, 2025*
					*Weighted-*
			*Weighted-*		*Average*
			*Average*		*Remaining*		*Aggregate*
			*Exercise*		*Contractual*		*Intrinsic*
	*Shares*		*Price*		*Term (years)*		*Value*
								(In thousands)
Balance at beginning of period		760,593	$	12.03		9.52	$	1,116
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited or expired		—		—		—		—
Balance at end of period		760,593	$	12.03		9.27	$	2,326

Exercisable - September 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 day of the reporting period and the exercise price.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Restricted Stock Awards

The following table represents information regarding restricted stock award activities for the periods indicated:

	*Three Months Ended*				*Three Months Ended*
	*September 30, 2026*				*September 30, 2025*
			*Weighted-*				*Weighted-*
			*Average*				*Average*
			*Grant Date*				*Grant Date*
	*Number*		*Fair Value*		*Number*		*Fair Value*
	*of Shares*		*Per Share*		*of Shares*		*Per Share*
Balance at beginning of period-non-vested		266,903	$	12.43		304,231	$	12.03
Granted		—		—		—		—
Vested		—		—		—		—
Forfeited or expired		—		—		—		—
Balance at end of period-non-vested		266,903	$	12.43		304,231	$	12.03

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 September 30, 2026:

			*Weighted*
			*Average*
			*Period*
	*Amount*		*(years)*
	(In thousands)
Stock options	$	2,567		3.38
Restricted stock awards		2,728		3.40
Total	$	5,295

12.

Regulatory Capital

The Bank is subject to regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Consolidated Financial Statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the following table) of total capital, Tier 1 capital (as defined in the regulations) and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. A capital conservation buffer of 2.50%, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements and must be maintained to avoid limitations on capital distributions.

In 2021, the Bank adopted the new community bank leverage ratio framework. This framework simplifies the regulatory capital requirements by requiring the Bank to meet only the Tier 1 capital to average assets (leverage) ratio. The Bank must only maintain a leverage ratio greater than the 8.0% required minimum to be considered well capitalized under this framework. The Bank can opt out of the new framework and return to the risk-weighting framework at any time.

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Market risk, credit risk, operational risk and deposit outflows are some of the factors that can impact the capital adequacy ratio and in turn, adversely affect the performance of the Bank. As of September 30, 2026, the Bank met all capital adequacy requirements to which it is subject. As of September 30, 2026, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank's category. The Bank's actual capital amounts and ratios are as follows:

						*To be Well*
						*Capitalized*
						*under Prompt*
						*Corrective*
	*Actual*					*Action Provisions*
	*Amount*		*Ratio*			*Amount*		*Ratio*
	(In thousands)
September 30, 2026:
Tier 1 capital (to average total assets)	$	155,292		13.46	%	$	92,283		8.00	%
June 30, 2026:
Tier 1 capital (to average total assets)	$	153,342		13.81	%	$	99,945		9.00	%

13.

Fair Value Measurements and Disclosures

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Additionally, from time to time, the Company 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.

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as an exit price representing the amount that would be received to sell an asset or settle a liability in an orderly transaction between market participants. A three-level hierarchy has been established for fair value measurements based upon the inputs to the valuation of an asset or liability.

Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities;

Level 2 - Valuation is determined from quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument;

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.

For financial assets measured at fair value on a recurring basis as of September 30, 2026 and June 30, 2026, the fair value measurements by level within the fair value hierarchy used are as follows:

	*September 30, 2026*
Description	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
	(In thousands)
Equity securities		24		—		—		24
Total	$	24	$	—	$	—	$	24

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	*June 30, 2026*
Description	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
	(In thousands)
Equity securities		27		—		—		27
Total	$	27	$	—	$	—	$	27

The classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Equity securities are measured at fair value using quoted market prices in an active market for identical assets and are classified as Level 1 in the hierarchy. The estimated fair values of equity securities are determined by obtaining quoted prices on nationally recognized exchanges (Level 1 inputs).

There were no transfers between levels within the fair value hierarchy during the three months ended September 30, 2026 and 2025.

Financial Assets Measured at Fair Value on a Nonrecurring Basis

There were no financial assets measured at fair value on a nonrecurring basis at September 30, 2026 and June 30, 2026.

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. The fair value of financial assets that are not measured at fair value in the financial statements were based on the exit price notion. The following estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, the estimates below are not necessarily indicative of amounts that could be realized in the marketplace. The use of different market assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Carrying amounts and estimated fair value measurements by level within the fair value hierarchy of the Company's financial instruments used at September 30, 2026 and June 30, 2026 were as follows:

	*September 30, 2026*
	*Carrying*		*Fair*
Description	*Value*		*Value*		*(Level 1)*		*(Level 2)*		*(Level 3)*
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	60,188	$	60,179	$	60,179	$	—	$	—
Securities held-to-maturity, at amortized cost		122,656		100,004		—		100,004		—
Restricted equity securities, at cost		2,885		2,885		—		2,885		—
Loans receivable, net		947,379		929,500		—		—		929,500
Accrued interest receivable		3,794		3,794		—		3,794		—
Financial Liabilities:
Deposits		979,246		976,895		647,156		329,739		—
Borrowings		35,000		34,679		34,679		—		—

Table of Contents

SR Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	*June 30, 2026*
	*Carrying*		*Fair*
Description	*Value*		*Value*		*(Level 1)*		*(Level 2)*		*(Level 3)*
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	71,461	$	71,461	$	71,461	$	—	$	—
Securities held-to-maturity, at amortized cost		131,154		113,590		—		113,590		—
Restricted equity securities, at cost		4,235		4,235		—		4,235		—
Loans receivable, net		901,191		897,123		—		—		897,123
Accrued interest receivable		3,477		3,477		—		3,477		—
Financial Liabilities:
Deposits		926,421		924,949		646,713		278,236		—
Borrowings		65,000		65,000		65,000		—		—

Securities Held-to-Maturity

All debt securities are measured at fair value using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices and are classified as Level 2 in the hierarchy.

Loans

The fair values of performing loans were estimated by segregating the portfolio into its primary loan categories—owner occupied commercial real estate, other commercial real estate, multi-family, commercial and industrial, residential and consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed/variable). The Company discounts the contractual cash flows for each loan category using market interest rates for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments.

Deposits

The fair value of deposits with no defined maturities (e.g. demand deposits, interest-bearing demand accounts, money market accounts and savings accounts) is the amount payable on demand of the liabilities at the reporting date (i.e. their carrying amounts). This approach to estimating fair value excludes the significant benefit that results from the low-cost funding provided by such deposit liabilities, as compared to alternative sources of funding. Deposits with stated maturities (time deposits) have been valued using the present value of cash flows discounted at rates approximating the current market for similar deposits.

Borrowed Funds

The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FRB-NY or FHLB advances represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following management discussion and analysis of the Company’s consolidated financial condition as of September 30, 2026 and the results of operations for the three months ended September 30, 2026 and 2025 should be read in conjunction with the Consolidated audited Financial Statements, including notes thereto, and the other information therein included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2026, as filed with the Securities and Exchange Commission, and in conjunction with the Consolidated Statements of Financial Condition as of September 30, 2026, the Consolidated Statements of Income, the Consolidated Statements of Comprehensive Income, the Consolidated Statements of Changes in Stockholders’ Equity and the Consolidated Statements of Cash Flows for the three months ended September 30, 2026 and 2025. The Consolidated Statement of Financial Condition as of June 30, 2026 was derived from the audited Consolidated Statements of Financial Condition that was included in the Company's Annual Report on Form 10-K for the year ended June 30, 2026. As used in this Quarterly Report on Form 10-Q, “we,” “us,” “our,” and the “Company” refer to SR Bancorp, Inc., and its consolidated subsidiaries, unless otherwise noted.

Forward-Looking Statements

This quarterly report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

•

statements of our goals, intentions and expectations;

•

statements regarding our business plans, prospects, financial condition and performance, growth and operating strategies;

•

statements regarding the quality of our loan and investment portfolios; and

•

estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not undertake any obligation to update any forward-looking statements after the date of this report.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

•

general economic conditions, either nationally or in our market areas, that are worse than expected, including potential recessionary conditions;

•

inflation and changes in the interest rate environment or the shape of the yield curve that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, and/or increase the level of defaults, losses and prepayments on loans we have made and make;

•

changes in the level and direction of loan delinquencies and write-offs and changes in estimates of and the methodology calculating the adequacy of the allowance for credit losses;

•

our ability to access cost-effective funding;

•

changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;

•

fluctuations in real estate values and both residential and commercial real estate market conditions;

Table of Contents

•

demand for loans and deposits in our market area;

•

our ability to implement and change our business strategy;

•

competition among depository and other financial institutions;

•

adverse changes in the securities or secondary mortgage markets;

•

changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums or changes in the fiscal or monetary policies of the U.S. Treasury or Board of Governors of the Federal Reserve System;

•

the imposition of tariffs or other domestic or international governmental policies and any retaliatory responses;

•

the impact of any federal government shutdown;

•

changes in the quality or composition of our loan or investment portfolios;

•

technological changes that may be more difficult or expensive than expected to implement;

•

the failure to maintain current technologies and/or to successfully implement future information technology enhancements;

•

the inability of third-party providers to perform as expected;

•

a failure or breach of our operational or security systems or infrastructure, including cyberattacks;

•

our ability to manage market risk, credit risk and operational risk;

•

changes in consumer spending, borrowing and savings habits;

•

changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;

•

the current or anticipated impact of military conflict, terrorism or other geopolitical event;

•

our ability to retain key employees;

•

our compensation expense associated with equity allocated or awarded to our employees; and

•

changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

Table of Contents

Critical Accounting Policies

Certain of our accounting policies are material to the presentation of our financial condition and results of operation, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances that could affect these judgments include, but are not limited to, changes noted above in "Forward-Looking Statements." Our significant accounting policies are discussed in detail in Note 1 to our Consolidated Financial Statements included elsewhere in this document.

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company,” we plan to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our Consolidated Financial Statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

Management believes our most critical accounting policies, which involve the most complex or subjective decisions or assessments, are the determination of the allowance for credit losses, the assessment of the impairment of goodwill and intangible assets and the valuation of our deferred tax asset.

Allowance for Credit Losses: The allowance for credit losses (“ACL”), calculated in accordance with ASC 326, is deducted from the amortized cost basis of loans. The ACL represents an amount that, in management’s judgment, is adequate to absorb the lifetime expected credit losses that may be experienced on outstanding loans based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of economic conditions and prepayment experience. The allowance for credit losses is measured and recorded upon the initial recognition of a financial asset. Determination of the adequacy of the allowance is inherently complex and requires the use of significant and highly subjective estimates. Loans are charged-off against the allowance when deemed uncollectible by management. Adjustments to the allowance are reported on our income statement as a component of the provision for credit losses.

In calculating the allowance for credit losses, loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles include the type of loan, underlying collateral, geographical similarity and historical or expected credit loss patterns. The Company applies two methodologies to estimate the allowance on its pooled portfolio segments: a cohort method based on common characteristics and the weighted average remaining life method. The models related to these methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a one-year economic outlook for the applicable economic variables.

In some cases, management may determine that an individual loan exhibits unique risk characteristics that differentiate the loan from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing, among other things, the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk rating of the loan and economic conditions affecting the borrower.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making qualitative factor adjustments include, among other things: the impact of changes in lending policies and procedures, including changes in underwriting standards and practices for collections; write-offs, and recoveries; actual and expected changes in national, regional, and local economic and business conditions and developments that affect the collectability of the loan pools; changes in the composition and size of the loan portfolio and in the terms of the underlying loans; changes in the experience, ability, and depth of our lending management and staff; changes in amount and severity of past due and nonaccrual assets; changes to the quality of our internal loan review system; the existence, growth, and effect of any concentrations of credit; and regulatory, legal and environmental events. Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment and changes in the financial condition of borrowers.

Table of Contents

Goodwill and Other Intangible Assets: Our intangible assets consist of goodwill and core deposit intangibles. The initial recording of goodwill and other intangible assets requires subjective judgments concerning estimates of the fair value of the acquired assets and assumed liabilities. Goodwill is not amortized but is subject to annual tests for impairment, or more often if events or circumstances indicate it may be impaired. We may elect to perform a qualitative assessment as a part of the annual impairment test if the qualitative assessment indicates it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then goodwill is impaired and written down to its estimated fair value.

During the year ended June 30, 2026, we performed a qualitative assessment of goodwill. Based on that assessment, we determined that it was more likely than not that the reporting unit’s fair value was not less than its carrying amount. We concluded that our goodwill was not impaired as of June 30, 2026. As of September 30, 2026, no triggering events were identified and therefore, we did not perform an interim impairment evaluation.

Core deposit intangibles are amortized on an accelerated basis using an estimated life of ten years. The core deposit intangibles are evaluated annually for impairment in accordance with GAAP. An impairment loss will be recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset.

Deferred Tax Assets: Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced by a valuation allowance for the amount of the deferred tax asset that is more likely than not to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

We recognize interest and/or penalties related to income tax matters in other operating expenses.

Comparison of Financial Condition at September 30, 2026 and June 30, 2026

Total Assets. Total assets increased $24.2 million, or 2.0%, to $1.22 billion at September 30, 2026 from $1.19 billion at June 30, 2026. The increase was driven primarily by new loan originations, resulting in an increase of $46.2 million in loans receivable, partially offset by decreases in cash and cash equivalents of $11.3 million and securities of $8.5 million.

Cash and Cash Equivalents. Cash and cash equivalents decreased $11.3 million, or 15.8%, to $60.2 million at September 30, 2026 from $71.5 million at June 30, 2026 as excess funds were used to fund loan growth.

Securities. Securities held-to-maturity decreased $8.5 million, or 6.5%, to $122.7 million at September 30, 2026 from $131.2 million at June 30, 2026. The decrease was primarily due to the call of a subordinated note, resulting in cash proceeds of $5.0 million, as well as principal repayments and maturities on mortgage-backed securities, with no new purchases during the period.

Loans. Loans receivable, net, increased $46.2 million, or 5.1%, to $947.4 million at September 30, 2026 from $901.2 million at June 30, 2026, driven by multi-family loan growth of $31.5 million and residential mortgage loan growth of $13.9 million as a result of strong market demand. During the three months ended September 30, 2026, we originated $65.9 million of loans and purchased an additional $12.9 million.

Table of Contents

Bank Owned Life Insurance. Bank owned life insurance increased $269,000, or 0.7%, to $38.7 million at September 30, 2026 from $38.4 million at June 30, 2026 due to an increase in the cash surrender value of the underlying assets.

Goodwill and Intangible Assets. Goodwill and the core deposit intangible asset recognized from the acquisition of Regal Bancorp in September 2023 totaled $25.3 million at September 30, 2026 compared to $25.5 million at June 30, 2026. The decrease was due to the amortization of the core deposit intangible asset.

Total Liabilities. Total liabilities increased $23.7 million, or 2.3%, to $1.03 billion at September 30, 2026 from $1.01 billion at June 30, 2026. The increase was primarily due to a $52.8 million increase in deposits, partially offset by a $30.0 million decrease in borrowings.

Deposits. Deposits increased $52.8 million, or 5.7%, to $979.2 million at September 30, 2026 from $926.4 million at June 30, 2026. Included in the Company’s deposits at September 30, 2026 were $50.0 million in brokered certificates of deposit obtained during the first fiscal quarter to pay down borrowings and fund loan growth. At September 30, 2026, $98.6 million, or 10.1%, of total deposits consisted of noninterest-bearing deposits. At September 30, 2026, $193.9 million, or 19.8%, of total deposits were uninsured.

Borrowings. At September 30, 2026 and June 30, 2026, the Company had $35.0 million and $65.0 million in outstanding borrowings, respectively, as the Company utilized brokered deposits to pay down borrowings and fund loan growth.

Total Equity. Total equity increased $522,000, or 0.3%, to $182.3 million at September 30, 2026 from $181.8 million at June 30, 2026. The increase was primarily due to net income of $1.1 million, partially offset by the payment of cash dividends at a cost of $436,000, a $362,000 increase in accumulated other comprehensive loss and the repurchase of 17,127 shares of common stock at a cost of $328,000.

Lending Activities

We offer a variety of loans, including residential, commercial real estate, multi-family, commercial and industrial and consumer loans. At September 30, 2026, residential mortgage loans comprised 51.5% of our total loan portfolio and commercial loans comprised 46.9%, which consisted largely of multi-family loans.

We have been successful in growing the commercial loan originations, specifically the multi-family originations, due to our strong relationships with our existing broker network and our competitive loan pricing. We intend to continue to further compete for a greater share of commercial loan originations in our primary market area by continuing these relationships and further strengthening newer relationships within our broker network and continuing to offer competitive loan pricing.

Loan Portfolio Composition. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated.

	September 30, 2026					June 30, 2026
	Amount		Percent			Amount			Percent
	(In thousands)
Owner occupied commercial real estate loans	$	47,050		4.95	%	$	48,903			5.41	%
Other commercial real estate loans		94,490		9.94	%		92,663			10.24	%
Multi-family loans		284,466		29.92	%		252,924			27.96	%
Commercial and industrial loans		19,678		2.07	%		18,797			2.08	%
Total commercial loans		445,684		46.88	%		413,287			45.69	%
Residential mortgage loans		489,742		51.51	%		475,870			52.61	%
Consumer and other loans		15,283		1.61	%		15,331			1.69	%
Total loans		950,709		100.00	%		904,488			100.00	%
Allowance for credit losses		(6,116)					(5,938	)
Deferred loan costs, net		2,786					2,641
Loans receivable, net	$	947,379				$	901,191

Table of Contents

Contractual Maturities. The following tables set forth the contractual maturities of our total loan portfolio at September 30, 2026. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments. Actual maturities may differ.

	Owner
	Occupied		Other				Commercial
	Commercial		Commercial		Multi-		and		Residential		Consumer
	Real Estate		Real Estate		Family		Industrial		Mortgage		and Other		Total
	(In thousands)
Amounts due in:
One year or less	$	—	$	1,347	$	10,697	$	2,110	$	171	$	9,711	$	24,036
After one through five years		80		3,119		8,467		13,312		11,016		774		36,768
After five through 15 years		13,077		28,146		64,026		2,064		70,161		3,722		181,196
More than 15 years		33,893		61,878		201,276		2,192		408,394		1,076		708,709
Total	$	47,050	$	94,490	$	284,466	$	19,678	$	489,742	$	15,283	$	950,709

Fixed Versus Adjustable-Rate Loans. The following tables set forth our fixed and adjustable-rate loans at September 30, 2026 that are contractually due after September 30, 2027.

	Due After September 30, 2027
	Fixed		Adjustable		Total
	(In thousands)
Owner occupied commercial real estate loans	$	—	$	47,050	$	47,050
Other commercial real estate loans		—		93,143		93,143
Multi-family loans		—		273,769		273,769
Commercial and industrial loans		—		17,568		17,568
Total commercial loans	$	—	$	431,530	$	431,530
Residential mortgage loans		349,680		139,891		489,571
Consumer and other loans		3,338		2,234		5,572
Total loans	$	353,018	$	573,655	$	926,673

Non-Performing and Problem Assets

When a loan is 15 days past due, we send the borrower a late charge notice. If the loan delinquency is not corrected, other forms of collections are implemented, including telephone calls and collection letters. We attempt personal, direct contact with the borrower to determine the reason for the delinquency, to ensure that the borrower understands the terms of the loan and to emphasize the importance of making timely payments. If necessary, subsequent late charges and delinquency notices are issued and the account will be monitored on a regular basis thereafter. By the 90^th day of delinquency, we will send the borrower a final demand for payment, after which we may refer the loan to legal counsel to commence foreclosure proceedings. Any of our loan officers can shorten these time frames in consultation with the senior lending officer.

Generally, loans are placed on non-accrual status when payment of principal or interest is over 90 days delinquent unless the loan is considered well-secured and in the process of collection. Loans are also placed on non-accrual status if collection of principal or interest in full is in doubt. When loans are placed on a non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received. The loan may be returned to accrual status if both principal and interest payments are brought current and factors indicating doubtful collection no longer exist, including performance by the borrower under the loan terms for a six-month period. All monitored loans, including those rated special mention, substandard, doubtful or loss, are reported to the Board of Directors on a quarterly basis. In addition, management presents a quarterly credit loss allowance analysis to our Board of Directors.

Table of Contents

The following table sets forth our loan delinquencies by type and amount at the dates indicated.

	September 30, 2026
	Delinquency Status
					90 Days or
					More Past
					Due and
					Still				Total
	30-59 Days		60-89 Days		Accruing		Non-		Past		Total
	Past Due		Past Due		Past Due		Accrual		Due		Current		Total
	(In thousands)
Owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	47,050	$	47,050
Other commercial real estate		—		—		—		—		—		94,490		94,490
Multi-family		—		—		—		—		—		284,466		284,466
Commercial and industrial		—		—		—		—		—		19,678		19,678
Residential mortgage		3,499		152		—		99		3,750		485,992		489,742
Consumer and other		45		98		—		—		143		15,140		15,283
Total	$	3,544	$	250	$	—	$	99	$	3,893	$	946,816	$	950,709

	June 30, 2026
	Delinquency Status
					90 Days or
					More Past
					Due and
					Still				Total
	30-59 Days		60-89 Days		Accruing		Non-		Past		Total
	Past Due		Past Due		Past Due		Accrual		Due		Current		Total
	(In thousands)
Owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	48,903	$	48,903
Other commercial real estate		—		—		—		—		—		92,663		92,663
Multi-family		—		—		—		—		—		252,924		252,924
Commercial and industrial		—		—		—		—		—		18,797		18,797
Residential mortgage		1,525		629		—		—		2,154		473,716		475,870
Consumer and other		47		—		—		—		47		15,284		15,331
Total	$	1,572	$	629	$	—	$	—	$	2,201	$	902,287	$	904,488

The Bank had no loan modifications to borrowers experiencing financial difficulty as of September 30, 2026 or June 30, 2026.

Non-Performing Assets. The following table sets forth information regarding our non-performing assets.

	September 30,			June 30,
	2026			2026
	(In thousands)
Non-accrual loans:
Residential mortgage loans	$	99		$	—
Commercial loans		—			—
Total non-accrual loans		99			—
Accruing loans past due 90 days or more:
Residential mortgage loans		—			—
Total non-performing loans		99			—
Real estate owned		—			—
Total non-performing assets	$	99		$	—
Total non-performing loans to total loans		0.01	%		—	%
Total non-accrual loans to total loans		0.01	%		—	%
Total non-performing assets to total assets		0.01	%		—	%

Table of Contents

Allowance for Credit Losses

Our allowance for credit losses ("ACL") is maintained at a level necessary to absorb the current expected credit losses. Management, in determining the allowance for credit losses, considers historic losses and changes in the nature and volume of loan activities, along with the general economic and real estate market conditions. A description of our methodology in establishing our allowance for credit losses is set forth in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations of SR Bancorp—Critical Accounting Policies-Allowance for Credit Losses” in our Form 10-K for the year ended June 30, 2026 and in this Form 10-Q. The allowance for credit losses as of September 30, 2026 and June 30, 2026 were maintained at levels that represent management’s best estimate of current expected losses in the loan portfolio. However, this analysis process is inherently subjective, as it requires us to make estimates that are susceptible to revisions as more information becomes available. Although we believe that we have established the allowance at levels to absorb current expected losses, future additions may be necessary if economic or other conditions in the future differ from the current environment.

In addition, as an integral part of their examination process, the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance have authority to periodically review our allowance for credit losses. Such agencies may require that we recognize additions to the allowance based on their judgments of information available to them at the time of their examination.

Allocation of Allowance for Credit Losses. The following tables set forth the allowance for credit losses allocated by loan category and the percent of the allowance in each category to the total allocated allowance at the dates indicated. The allowance for credit losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.

	September 30, 2026
				Percent of
				ACL			Percent
				in Each			of Loans
				Category			in Each
				to Total			Category
				Allocated			to Total			ACL to
	ACL			Allowance			Loans			Total Loans
	(In thousands)
Owner occupied commercial real estate loans	$	464			7.59	%		4.95	%		0.05	%
Other commercial real estate loans		187			3.06			9.94			0.02
Multi-family loans		1,926			31.49			29.92			0.20
Commercial and industrial loans		214			3.50			2.07			0.02
Residential mortgage loans		2,974			48.62			51.51			0.31
Consumer and other loans		351			5.74			1.61			0.04
Total allocated allowance		6,116			100.00	%		100.00	%		0.64	%
Allowance to non-performing loans		6178	%
Allowance to total loans outstanding at the end of the period		0.64	%
Net (charge-offs) recoveries to average loans outstanding during the period		—

Table of Contents

	June 30, 2026
				Percent of
				ACL			Percent
				in Each			of Loans
				Category			in Each
				to Total			Category
				Allocated			to Total			ACL to
	ACL			Allowance			Loans			Total Loans
	(In thousands)
Owner occupied commercial real estate loans	$	481			8.10	%		5.42	%		0.05	%
Other commercial real estate loans		186			3.13			10.24			0.02
Multi-family loans		1,739			29.29			27.96			0.19
Commercial and industrial loans		206			3.47			2.08			0.02
Residential mortgage loans		2,975			50.10			52.61			0.33
Consumer and other loans		351			5.91			1.69			0.04
Total allocated allowance		5,938			100.00	%		100.00	%		0.65	%
Allowance to non-performing loans		—
Allowance to total loans outstanding at the end of the period		0.65	%
Net (charge-offs) recoveries to average loans outstanding during the period		—

Investment Activities

General. The goals of our investment policy are to maximize portfolio yield over the long term in a manner that is consistent with minimizing risk, and to meet liquidity needs, pledging requirements, and asset/liability management and interest rate risk strategies. We monitor the balance of our investment securities portfolio based on loan demand, our asset/liability management and interest rate risk analysis and our liquidity needs.

At September 30, 2026 and June 30, 2026, our investment portfolio consisted entirely of securities held-to-maturity, which were securities and obligations issued by U.S. government-sponsored enterprises, subordinated debentures issued by financial institutions in the Mid-Atlantic region, collateralized mortgage obligations and foreign government bonds.

The following table presents the maturity distribution and weighted average yields of our investment securities portfolio on a contractual maturity basis and our residential mortgage-backed securities at September 30, 2026:

	September 30, 2026
	Held to Maturity
					Weighted
	Amortized		Fair		Average
	Cost		Value		Yield
	(In thousands)
Due within one year	$	—	$	—		0.00	%
Due after one year through five years		200		200		4.43	%
Due after five years through ten years		6,000		5,937		7.75	%
Due after ten years		—		—		—
Residential mortgage-backed securities:
Issued by FNMA and FHLMC		114,777		92,277		1.63	%
Issued by GNMA		167		168		5.25	%
CMO		1,512		1,422		2.50	%
Total	$	122,656	$	100,004		1.96	%

For additional information regarding our investment securities portfolio, see Note 3 to the Notes to Financial Statements.

Table of Contents

Deposit Accounts. Deposits are primarily attracted from within our market area through the offering of a broad selection of deposit instruments, including noninterest-bearing demand deposits (such as checking accounts), interest-bearing demand accounts (such as NOW accounts), savings accounts, money market accounts and certificates of deposit. At September 30, 2026 and June 30, 2026, we held $34.5 million and $29.1 million, respectively, of accounts from a variety of local municipal relationships, which are protected under a New Jersey supplemental insurance program with collateralized assets. At September 30, 2026 and June 30, 2026, we had brokered certificates of deposit of $50.0 million and $0, respectively.

We also offer a variety of deposit accounts designed for the businesses operating in our market area. Our business banking deposit products include a business checking account designed for small businesses, and savings and money market accounts. We offer bill payment services through our online banking system.

Deposit account terms vary according to the minimum balance required, the time period the funds must remain on deposit and the interest rate, among other factors. In determining the terms of our deposit accounts, we consider the rates offered by our competition, the rates on borrowings, our liquidity needs, our profitability, and customer preferences and concerns. We generally review our deposit mix and pricing weekly. Our deposit pricing strategy has generally been to offer competitive rates on all types of deposit products, and to periodically offer special rates to attract deposits of a specific type or term.

The following table sets forth the distribution of total deposits by account type at the dates indicated.

	September 30, 2026								June 30, 2026
						Average								Average
	Amount		Percent			Rate			Amount		Percent			Rate
	(In thousands)
Noninterest-bearing demand deposits	$	98,643		10.07	%		—	%	$	128,155		13.83	%		—	%
Interest-bearing demand deposits		428,195		43.73			1.84			389,869		42.09			1.60
Savings and club accounts		120,318		12.29			0.06			128,689		13.89			0.07
Time deposits		332,090		33.91			3.36			279,708		30.19			3.35
Total	$	979,246		100.00	%				$	926,421		100.00	%

As of September 30, 2026 and June 30, 2026, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $193.9 million and $191.6 million, respectively. In addition, as of September 30, 2026 and June 30, 2026, the aggregate amount of all our uninsured certificates of deposit was $30.5 million and $30.4 million, respectively. We have no deposits that are uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance. Uninsured deposits totaling $32.1 million and $26.7 million at September 30, 2026, and June 30, 2026, respectively, of municipalities and local government agencies are protected under a New Jersey supplemental insurance program with collateralized assets.

The following table sets forth the maturity of the uninsured certificates of deposit as of the dates indicated.

	September 30,		June 30,
	2026		2026
	(In thousands)
Maturity Period:
Three months or less	$	8,332	$	7,477
Over three through six months		10,865		7,409
Over six through twelve months		9,873		12,795
Over twelve months		1,453		2,680
Total	$	30,523	$	30,361

Table of Contents

Comparison of Operating Results for the Three Months Ended September 30, 2026 and 2025

General. Net income increased $375,000, or 54.1%, to $1.1 million for the three months ended September 30, 2026 compared to net income of $693,000 for the three months ended September 30, 2025. Net income for the three months ended September 30, 2026 and 2025 included $47,000 and $303,000, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023.

Interest Income. Interest income increased $1.8 million, or 14.8%, to $13.7 million for the three months ended September 30, 2026 from $11.9 million for the three months ended September 30, 2025, due to a $99.2 million increase in the average balance of interest-earning assets and a 21 basis point increase in the yield. These increases resulted from a $1.8 million, or 16.4%, increase in interest income on loans and a $31,000, or 5.3%, increase in interest income on securities, partly offset by a $51,000, or 11.2%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was primarily due to a $108.5 million increase in the average balance of loans from $809.6 million for the three months ended September 30, 2025 to $918.0 million for the three months ended September 30, 2026 and a 14 basis point increase in the average yield to 5.52% for the three months ended September 30, 2026 from 5.38% of the three months ended September 30, 2025. The increase in interest income on securities was due to a 24 basis point increase in the yield, partially offset by a $11.7 million decrease in the average balance. The decrease in interest income on interest-bearing deposits at other banks was due to a 65 basis point decrease in the yield primarily due to the Federal Open Market Committee’s reductions in the federal funds rate.

Interest Expense. Interest expense increased $1.1 million, or 24.3%, to $5.4 million for the three months ended September 30, 2026 from $4.3 million for the three months ended September 30, 2025, primarily due to a $109.2 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was primarily due to an increase of $75.5 million, or 22.6%, in the average balance of interest-bearing demand deposits, a $25.2 million, or 9.3%, increase in the average balance of certificates of deposit due to the acquisition of $50.0 million in brokered deposits and a $23.2 million, or 66.9%, increase in the average balance of borrowings for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, partially offset by a decrease of $14.7 million in the average balance of savings and club accounts. The increase in interest expense was also due to a 33 basis point increase in the average rate of interest-bearing demand deposits to 2.20% for the three months ended September 30, 2026 from 1.87% for the three months ended September 30, 2025, resulting from competitively priced rates, partially offset by a 59 basis point decrease in the average rate on Federal Home Loan Bank borrowings from 4.39% for the three months ended September 30, 2025 to 3.80% for the three months ended September 30, 2026.

Net Interest Income. Net interest income increased $707,000, or 9.3%, to $8.3 million for the three months ended September 30, 2026 from $7.6 million for the three months ended September 30, 2025. Net interest rate spread increased one basis point to 2.57% for the three months ended September 30, 2026 from 2.56% for the three months ended September 30, 2025. Net interest margin decreased two basis points to 3.03% for the three months ended September 30, 2026 from 3.05% for the three months ended September 30, 2025. Net interest-earning assets decreased $10.0 million, or 4.6%, to $209.1 million for the three months ended September 30, 2026 from $219.1 million for the three months ended September 30, 2025. The increase in the Company’s net interest rate spread was primarily a result of an increase in the yield on interest-earning assets slightly exceeding the increase in the cost of interest-bearing liabilities.

Table of Contents

Average Balances and Yields

The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Deferred loan fees totaled $102,000 and $50,000 for the three months ended September 30, 2026 and 2025, respectively.

	Three Months Ended September 30,
	2026								2025
	Average					Average			Average					Average
	Outstanding					Yield/			Outstanding					Yield/
	Balance			Interest		Rate⁽¹⁾			Balance			Interest		Rate⁽¹⁾
	(In thousands)
Interest-earning assets:
Loans	$	918,040			12,678		5.52	%	$	809,563			10,895		5.38	%
Securities		130,882			615		1.88	%		142,604			584		1.64	%
Other		47,302			405		3.42	%		44,853			456		4.07	%
Total interest-earning assets		1,096,224			13,698		5.00	%		997,020			11,935		4.79	%
Noninterest-earning assets		89,645								93,519
Total assets	$	1,185,869							$	1,090,539
Interest-bearing liabilities:
Savings and club accounts	$	121,906			17		0.06	%	$	136,559			20		0.06	%
Interest-bearing demand accounts		410,123			2,260		2.20	%		334,605			1,565		1.87	%
Certificates of deposit		297,380			2,570		3.46	%		272,188			2,375		3.49	%
Total interest-bearing deposits		829,409			4,847		2.34	%		743,352			3,960		2.13	%
Federal Home Loan Bank advances		57,774			549		3.80	%		34,611			380		4.39	%
Total interest-bearing liabilities		887,183			5,396		2.43	%		777,963			4,340		2.23	%
Noninterest-bearing deposits		92,318								107,364
Other noninterest-bearing liabilities		23,548								14,526
Total liabilities		1,003,049								899,853
Equity		182,820								190,686
Total liabilities and equity	$	1,185,869							$	1,090,539
Net interest income					8,302								7,595
Net interest rate spread ⁽¹⁾							2.57	%							2.56	%
Net interest-earning assets ⁽²⁾	$	209,041							$	219,057
Net interest margin ⁽³⁾							3.03	%							3.05	%
Average interest-earning assets to interest-bearing liabilities		123.56	%							128.16	%

(1)	Annualized.

(2)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3)	Net interest margin represents net interest income divided by average total interest-earning assets.

Table of Contents

Rate/Volume Analysis

The following tables present the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of these tables, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the tables below.

	Three Months Ended September 30,
	2026 vs. 2025
	Increase (Decrease)
	Volume			Rate			Total Change
	(In thousands)
Interest-earning assets:
Loans	$	1,460		$	323		$	1,783
Securities		(48	)		79			31
Other		25			(76)			(51	)
Total interest-earning assets		1,437			326			1,763
Interest-bearing liabilities:
Savings and club accounts		(2	)		(1)			(3	)
Interest-bearing accounts		353			342			695
Certificates of deposit		220			(25	)		195
Federal Home Loan Bank advances		254			(85	)		169
Total interest-bearing liabilities		825			231			1,056
Change in net interest income	$	612		$	95		$	707

Provision for Credit Losses. The Company records provisions for credit losses to maintain the allowance for credit losses at a level that management estimates is appropriate to reflect expected credit losses over the remaining contractual lives of loans, considering historical loss experience, current conditions and reasonable and supportable forecasts. In determining the level of the allowance for credit losses, the Company considers, among other factors, past and current loss experience, evaluations of real estate collateral, economic conditions, the type and volume of lending, adverse situations that may affect a borrower’s repayment capacity, trends in delinquent, classified or criticized loans, and other risk factors. The allowance is developed using reasonable and supportable forecasts and quantitative modeling techniques, combined with qualitative factors to address risks not captured in historical data, including emerging loan products or localized economic changes. Actual losses may vary from such estimates as more information becomes available or conditions change. The Company assesses the allowance for credit losses and records provisions for credit losses in the income statement on a quarterly basis.

The Company recorded a provision for credit losses of $177,000 during the three months ended September 30, 2026 reflecting the loan growth during the period, compared to a provision for credit losses of $171,000 for the three months ended September 30, 2025. The Company had no charge-offs for the three months ended September 30, 2026 or 2025. The Company had one non-performing residential mortgage loan at September 30, 2026, which was subsequently restored to accrual status. At September 30, 2025, the Company had no non-performing loans. The Company’s allowance for credit losses as a percentage of total loans was 0.64% at September 30, 2026 compared to 0.67% at September 30, 2025.

Table of Contents

Noninterest Income. Noninterest income was as follows:

	Three Months Ended
	September 30,						Change
	2026			2025			Amount			Percent
	(In thousands)
Service charges and fees on deposits	$	239		$	230		$	9			3.9	%
Increase in cash surrender value of bank-owned life insurance		269			265			4			1.5	%
Fees and service charges on loans		39			32			7			21.9	%
Unrealized loss on equity securities		(3	)		(2	)		(1	)		50.0	%
Realized gain on sale of loans		42			—			42			—
Other		16			40			(24	)		(60.0	)%
Total noninterest income	$	602		$	565		$	37			6.5	%

Noninterest income increased $37,000, or 6.5%, to $602,000 for the three months ended September 30, 2026 from $565,000 for the three months ended September 30, 2025 primarily due to gain on sale of loans of $42,000 in 2026, partially offset by a decrease in the other income of $24,000.

Noninterest Expense. Noninterest expense was as follows:

	Three Months Ended
	September 30,				Change
	2026		2025		Amount			Percent
	(In thousands)
Salaries and employee benefits	$	4,088	$	3,853	$	235			6.1	%
Occupancy		548		536		12			2.2	%
Furniture and equipment		339		353		(14	)		(4.0	)%
Data processing		546		540		6			1.1	%
Advertising		139		130		9			6.9	%
FDIC premiums		123		120		3			2.5	%
Directors fees		104		97		7			7.2	%
Professional fees		453		437		16			3.7	%
Insurance		128		134		(6	)		(4.5	)%
Telephone, postage and supplies		159		202		(43	)		(21.3	)%
Other		670		692		(22	)		(3.2	)%
Total noninterest expense	$	7,297	$	7,094	$	203			2.9	%

Noninterest expense increased $203,000, or 2.9%, to $7.3 million for the three months ended September 30, 2026 from $7.1 million for the three months ended September 30, 2025 primarily due to a $235,000, or 6.1%, increase in salaries and employee benefits expense driven by annual merit increases and increases in health care costs during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, partially offset by a decrease of $43,000 in telephone, postage and supplies expense.

Income Tax Expense. The provision for income taxes was $362,000 for the three months ended September 30, 2026 compared to $202,000 for the three months ended September 30, 2025. The Company’s effective tax rate was 25.3% for the three months ended September 30, 2026 compared to 22.6% for the three months ended September 30, 2025 primarily due to an increase in non-deductible expenses.

Market Risk

General. Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of our financial condition and results of operations to changes in market interest rates. Our ALCO/Investment Committee, which consists of members of management, is responsible for evaluating the interest rate risk in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the policy and guidelines approved by our Board of Directors. We currently utilize a third-party modeling program, prepared on a quarterly basis, to evaluate our sensitivity to changing interest rates.

Table of Contents

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. We have implemented the following strategies to manage our interest rate risk:

•

growing transaction deposit accounts;

•

emphasizing higher-yielding, shorter-term commercial real estate loans;

•

utilizing our investment securities portfolio as part of our balance sheet asset and liability and interest rate risk management strategy to reduce the impact of movements in interest rates on net interest income and economic value of equity; and

•

continuing to price our one-to four-family residential real estate loan products in a way that encourages borrowers to select our adjustable-rate loans as opposed to longer-term, fixed-rate loans.

By following these strategies, we believe that we are better positioned to react to changes in market interest rates.

We generally do not engage in hedging activities, such as engaging in futures or options, or investing in high-risk mortgage derivatives, such as collateralized mortgage obligation residual interests, real estate mortgage investment conduit residual interests or stripped mortgage-backed securities.

Economic Value of Equity. We compute amounts by which the net present value of our cash flow from assets, liabilities and off-balance sheet items (economic value of equity “EVE”) would change in the event of a range of assumed changes in market interest rates. We measure potential change in our EVE through the use of a financial model. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value. A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3% to 4% would mean, for example, a 100-basis point increase in the “Basis Point Change in Interest Rates” column below.

The table below sets forth, as of September 30, 2026, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.

At September 30, 2026
Change in Interest Rates			Estimated Increase (Decrease) in EVE
(basis points)⁽¹⁾	Estimated EVE⁽²⁾		Amount		Percent
(In thousands)
+400	$	157,080	$	(76,100)		(32.64	)%
+300		179,914		(53,266)		(22.84	)%
+200		200,217		(32,963)		(14.14	)%
+100		217,992		(15,187)		(6.51	)%
—		233,180		—		—
-100		244,980		11,801		5.06	%
-200		256,329		23,149		9.93	%
-300		265,617		32,438		13.91	%
-400		270,731		37,551		16.10	%

(1)	Assumes an immediate uniform change in interest rates at all maturities.

(2)	EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

The table above indicates that at September 30, 2026, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 14.14% decrease in EVE, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 9.93% increase in EVE.

Table of Contents

Change in Net Interest Income. The following table sets forth, at September 30, 2026, the calculation of the estimated changes in our net interest income (“NII”) that would result from the designated immediate changes in the United States Treasury yield curve.

At September 30, 2026
Change in Interest	Net Interest		Year 1		Net Interest		Year 2
Rates	Income Year 1		Change		Income Year 2		Change
(basis points)⁽¹⁾	Forecast		From Level		Forecast		From Level
(In thousands)
+400	$	32,086	$	(4,360)	$	35,743	$	(3,433)
+300		33,357		(3,089)		37,109		(2,067)
+200		34,487		(1,958)		38,083		(1,094)
+100		35,518		(928)		38,766		(410)
—		36,445		—		39,176		—
-100		36,910		465		38,729		(447)
-200		37,280		834		38,147		(1,029)
-300		37,509		1,064		37,293		(1,884)
-400		37,598		1,152		36,329		(2,848)

The table above indicates that at September 30, 2026, we would have experienced a 5.37% decrease in NII in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 2.29% increase in NII in the event of an instantaneous 200 basis point decrease in market interest rates.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The above table assumes that the composition of our interest sensitive assets and liabilities existing at the date indicated remains constant uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our NII and will differ from actual results.

Liquidity and Capital Resources

Liquidity is the ability to fund assets and meet obligations as they come due. Our primary sources of funds consist of deposit inflows, loan and security repayments and maturity of securities. In addition, we have the ability to borrow in the wholesale markets or from the Federal Home Loan Bank of New York. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. Our ALCO/Investment Committee is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies. We seek to maintain a ratio of liquid assets (including cash and federal funds sold) as a percentage of total deposits ranging between 4% and 15%. At September 30, 2026, this ratio was 6.1%. We believe that we have sufficient sources of liquidity to satisfy our short- and long-term liquidity needs as of September 30, 2026.

We regularly adjust our investments in liquid assets based upon our assessment of:

•

expected loan demand;

•

expected deposit flows;

•

yields available on interest-earning deposits and securities; and

•

the objectives of our asset/liability management program.

Excess cash is invested generally in interest-earning deposits and short- and intermediate-term securities.

Table of Contents

Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing and investing activities during any given period. At September 30, 2026, cash and cash equivalents totaled $60.2 million.

At September 30, 2026, we had $67.7 million in outstanding loan commitments and $38.8 million of unused lines of credit. Certificates of deposit due within one year of September 30, 2026 totaled $270.5 million, or 27.6% of total deposits. If these deposits do not remain with us, we will be required to seek other funding sources, including loan sales, other deposit products, including replacement certificates of deposit, brokered deposits, securities sold under agreements to repurchase (repurchase agreements) or advances from the Federal Home Loan Bank of New York and other borrowing sources. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before September 30, 2027. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Our cash flows are derived from operating activities, investing activities and financing activities as reported in our Consolidated Statements of Cash Flows included in our Consolidated Financial Statements.

Our primary investing activities are originating and purchasing loans and purchasing securities. During the three months ended September 30, 2026, we originated $65.9 million of loans and purchased an additional $12.9 million.

Financing activities consist primarily of activity in deposit accounts, borrowings and repurchases of common stock. Deposits increased $52.8 million, or 5.7%, to $979.2 million at September 30, 2026 from $926.4 million at June 30, 2026 primarily due to $50.0 million in brokered certificates of deposit obtained to pay down borrowings and fund loan growth. At September 30, 2026, $98.6 million, or 10.1%, of total deposits consisted of noninterest-bearing deposits, and $193.9 million, or 19.8%, of total deposits were uninsured.

We had outstanding borrowings of $35.0 million as of September 30, 2026 and $65.0 million as of June 30, 2026.

Somerset Regal Bank is subject to various regulatory capital requirements, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. At September 30, 2026, Somerset Regal Bank exceeded all regulatory capital requirements. Somerset Regal Bank is considered “well capitalized” under regulatory guidelines. See Note 12 of the Notes to the Consolidated Financial Statements.

Recent Accounting Pronouncements

For a discussion of the impact of recent accounting pronouncements, see Note 1 of the Notes to the Consolidated Financial Statements.

Impact of Inflation and Changing Prices

Our Consolidated Financial Statements and related notes have been prepared in accordance with GAAP. GAAP generally requires the measurement of financial position and operating results in terms of historical dollars without consideration for changes in the relative purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of our operations. Unlike industrial companies, our assets and liabilities are primarily monetary in nature. As a result, changes in market interest rates have a greater impact on our performance than the effects of inflation.

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

For information regarding market risk, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation—Market Risk.”

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Company. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be so disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of September 30, 2026.

Changes in Internal Control over Financial Reporting

There were no changes in the Company's internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) during the quarter ended September 30, 2026 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Table of Contents

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

Periodically, there have been various claims and lawsuits against us, such as claims to enforce liens, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans and other issues incident to our business. We are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors.

There have been no material changes in risk factors applicable to the Company from those disclosed in “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2026.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The Company did not have any unregistered sales of equity securities during the three months ended September 30, 2026. The table below summarizes the number of shares of the Company’s common stock that were repurchased during the three months ended September 30, 2026.

Total

Maximum

Shares

Number of

Purchased

Shares that

Total

as Part of

May Yet Be

Number

Publicly

Purchased

of Shares

Average

Announced

Under the

Purchased

Price Paid

Program

(1)

per Share

(1)

July 1 - July 31, 2026

1,890

18.93

1,890

720,591

August 1 - August 31, 2026

717

19.25

717

719,874

September 1 - September 30, 2026

14,520

19.11

14,520

705,354

Three months ended September 30, 2026

17,127

(1)

On May 21, 2026, the Company's Board of Directors approved the repurchase of 801,320 shares, or approximately 10.0% of the Company's common stock then outstanding. The current stock repurchase plan will terminate on May 21, 2027. The Board of Directors has the right to suspend or discontinue the plan at any time.

Item 3. Defaults Upon Senior Securities.

Not applicable

Item 4. Mine Safety Disclosures.

Not applicable

Item 5. Other Information.

Securities Trading Plans of Directors and Executive Officers

During the three months ended September 30, 2026, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Corporation's securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement”

Table of Contents

Item 6. Exhibits.

Exhibit Number		Description
3.1		Amended and Restated Articles of Incorporation of SR Bancorp, Inc. (Incorporated by reference to the Registrant's Registration Statement on Form S-1/A (File No. 333-270489) as filed on July 10, 2023).
3.2		Amended and Restated Bylaws of SR Bancorp, Inc. (Incorporated by reference to the Registrant's Annual Report on Form 10-K (File No. 001-41808) filed on September 28, 2023).
31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		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.
101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SR Bancorp, Inc.

Date: November 12, 2026	By:	/s/ Christopher J. Pribula
		Christopher J. Pribula
		President and Chief Executive Officer

Date: November 12, 2026	By:	/s/ Harris M. Faqueri
		Harris M. Faqueri
		Senior Vice President and
		Chief Financial Officer