SR Bancorp, Inc. Launches Second Stock Repurchase Program to Enhance Shareholder Value

SR Bancorp, Inc. Launches Second Stock Repurchase Program

In a strategic move to bolster shareholder value, SR Bancorp, Inc., the parent company of Somerset Regal Bank, has authorized its second stock repurchase program. This initiative, announced on July 8, 2025, permits the company to repurchase up to 10% of its outstanding common shares, equating to approximately 886,137 shares. This decision comes on the heels of successfully completing its first stock repurchase program, which still has 13,802 shares remaining to be acquired.

The stock repurchase program underscores the company's commitment to returning capital to its shareholders amid favorable market conditions. As outlined in the company’s statement, the purchases will take place in either open market transactions or private agreements, including block trades. Additionally, these transactions may be conducted under plans that comply with Rule 10b5-1, facilitating a structured approach to share repurchases.

The timing and quantity of the actual repurchases are contingent on several factors. According to the company, assessments regarding the stock’s availability, overall market conditions, the trading price, and the organization’s financial standing will all play a crucial role in determining the specifics of the repurchase strategy. Notably, any market purchases will also fulfill the requirements set out in Rule 10b-18 of the Securities and Exchange Commission, ensuring compliance with legal standards.

Background on SR Bancorp, Inc.

SR Bancorp operates as the holding entity for Somerset Regal Bank, a full-service commercial bank located in Bound Brook, New Jersey. With a robust presence, the bank manages 14 branches across several counties in New Jersey, including Essex, Hunterdon, and Middlesex. As of March 31, 2025, Somerset Regal Bank reported impressive financial metrics, showcasing total assets worth approximately $1.07 billion, net loans amounting to $780.8 million, and deposits reaching $835.6 million. These figures reflect a solid foundation and a commitment to serving its local communities effectively.

SR Bancorp’s strategic direction continues to focus on enhancing both operational efficiency and customer satisfaction. The adoption of the stock repurchase program represents a calculated effort to not only improve shareholder returns but also signal confidence in the company's ongoing performance and market prospects. These measures are crucial as the bank adheres to its mission of delivering unparalleled banking services to customers while navigating a competitive financial landscape.

Forward-Looking Statements

As with any financial initiative, it is essential to acknowledge potential risks and uncertainties. The statements made by SR Bancorp comprise forward-looking assertions as described under the Private Securities Litigation Reform Act of 1995. Meeting the expectations projected in these statements may encounter challenges stemming from economic conditions, shifts in interest rates, competitive pressures, and other market dynamics. There may also be effects from fiscal policies implemented by the government, macroeconomic fluctuations, and changes in investor behavior.

The company emphasizes that actual outcomes may diverge from these forward-looking predictions due to the ever-evolving landscape of economic conditions and company operations. Thus, stakeholders and investors are advised to consider these factors with caution and not overly rely on the forecasts provided.

In conclusion, SR Bancorp’s second stock repurchase program is a proactive approach to enhance shareholder value, demonstrating the company’s commitment to its investors and its belief in future growth potential amid dynamic market conditions. For more detailed information about the bank's services and the latest updates, investors can visit the official website of Somerset Regal Bank at somersetregalbank.com.