SR Bancorp is the holding company for Somerset Regal Bank, a community bank serving individuals and small businesses across central and northern New Jersey through 14 branches in eight counties. The bank formed in its current structure in September 2023, when Somerset Savings Bank converted from a mutual to a stock company, raised capital through an IPO, and simultaneously merged with Regal Bank. The merger combined Somerset's residential mortgage lending background with Regal's commercial lending expertise. The bank's loan portfolio totals roughly $800M and is weighted toward residential mortgage loans, which make up about 53% of total loans, followed by multi-family loans at 27% and commercial real estate loans at 16%, with a small C&I component consisting primarily of SBA loans. Like most community banks, Somerset Regal makes money on the spread between deposit funding costs and loan and investment yields — net interest income. The bank funds itself primarily through deposits, which totaled $846M as of mid-2025, and deploys that funding into loans and a held-to-maturity investment portfolio of agency mortgage-backed securities. Going forward, management aims to grow the commercial loan book, particularly commercial real estate and C&I lending, to reduce the bank's historical reliance on residential mortgages. The bank has also indicated potential interest in M&A over time. As of mid-2025, credit quality was clean with no non-performing loans or classified assets.