SR Bancorp, Inc.

Business

The Company, a Maryland corporation, is the holding company for Somerset Regal Bank. The Bank, which was formed in1887, serves Essex, Hunterdon, Middlesex, Morris, Somerset and Union counties in New Jersey. The Bank is a New Jersey chartered commercial bank subject to federal and state laws and regulations. As a locally managed community bank, the Bank provides retail and commercial banking services to individuals, businesses and local municipalities through its 14 full-service branch locations.

Somerset Savings Bank converted from the mutual to stock form of organization and SR Bancorp, Inc. (the "Company") completed its stock offering on* September 19, 2023.The Company’s common stock began trading on the Nasdaq Capital Market under the trading symbol “SRBK” on September 20, 2023.*Promptly following the completion of the conversion and related stock offering, Regal Bancorp, Inc., a New Jersey corporation (“Regal Bancorp”), merged with and into the Company, with the Company as the surviving entity (the “Merger”). Regal Bank, a New Jersey chartered commercial bank headquartered in Livingston, New Jersey and the wholly-owned subsidiary of Regal Bancorp, merged with and into Somerset Bank, which had converted to a commercial bank charter, and was renamed Somerset Regal Bank (the “Bank”).

Principles of Consolidation

The consolidated financial statements include the accounts of SR Bancorp, Inc. and its wholly owned subsidiary 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 has had limited activity.

Basis of Presentation and Use of Estimates

The financial information contained in this Annual Report on Form10-K as of and for the years ended* June 30, 2026and2025* is for the Company and the Bank, unless indicated otherwise. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates. Prior period amounts have been reclassified when necessary to conform to the current year’s presentation. Such reclassifications didnot have a material impact on the operating results or financial position of the Company.

Material estimates that are particularly susceptible to change are: the allowance for credit losses; the evaluation of goodwill for impairment; and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual results could differ from those estimates.

Segment Reporting

Accounting Standards Codification ("ASC") Topic280, 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 banker 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 performance and profitability of our single business segment. Consolidated net income is used to assess performance by comparing results 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.

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 doesnot have any significant concentrations to anyone industry or customer.

Note3 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 and the purchase of government-sponsored agency securities, backed by the full faith and credit of the United States.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks and interest-earning deposits in other banks with original maturities ofthree months or less. The Company maintains accounts at other financial institutions with balances in excess of federal deposit insurance limits. The Company hasnot experienced any loss in such accounts.

F-8

Securities

Investments in debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Debt and equity securities that are bought and held principally to sell in the near term are classified as trading securities and reported at fair value, with unrealized holding gains and losses included in earnings.

Debt and equity securitiesnot classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and reported at fair value, with unrealized holding gains or losses, net of deferred income taxes, reported in the accumulated other comprehensive income/loss component of stockholders' equity.

Premiums/discounts on all securities are amortized/accreted to maturity by use of the level yield method. Gain or loss on sales of securities is based on the specific identification method.

Equity securities with readily determinable fair values are measured at fair value. Any realized or unrealized gains or losses are recognized in earnings. Dividends are included in interest income.

In compliance with Accounting Standards Topic326: Financial Instruments – Credit Losses (“ASC326”), the Company conducts periodic reviews of its investment portfolio to determine the appropriate level of its allowance for credit losses (“ACL”). On a quarterly basis, the Company assesses investments with unrealized losses in its available-for-sale and held-to-maturity portfolios regarding its ability and intent to hold those investments until fair value equals or exceeds amortized cost.

The Company's held-to-maturity ("HTM") portfolio consists principally of highly-rated GSE residential mortgage-backed securities. The Company segments its HTM securities into GSE, residential mortgage-backed securities, collateralized mortgage obligations ("CMOs"), and other debt securities to determine the ACL. The ACL is determined based on the security's historical losses and the ratings of major investment securities rating services, adjusted for certain qualitative factors. The Company has determined that for GSE residential mortgage-backed securities, it would be appropriate to assume the expected credit loss to be zero. At both* June 30, 2026and2025*, the Company hadno HTM securities that were past due30 days or more as to principal or interest payments. Based on its review of HTM securities, the Company deemedno ACL reserve was necessary for the years ended* June 30, 2026* or2025.

The Company ownedno available-for-sale ("AFS") securities at* June 30, 2026or2025.*

F-9

Loans Receivable

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance and credited to income. Loan origination fees and costs are deferred and recognized over the life of the loans as an adjustment to yield (interest income). Discounts and premiums on purchased loans are amortized to income using the interest method over the expected lives of the loans.

Following the completion of the Merger, the loans receivable portfolio was segmented as follows: multi-family real estate loans, owner occupied commercial real estate loans, other commercial real estate loans, commercial and industrial loans, residential mortgage loans and consumer loans.

The accrual of interest is generally discontinued when the contractual payment of principal or interest has become over90 days past due or management has serious doubts about further collectability of principal or interest, even when the loan is currently performing. A loan* mayremain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generallysix* months) and the ultimate collectability of the total contractual principal and interest isno longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments.

Allowance for Credit Losses

The ACL is a significant accounting estimate used in the preparation of the Company's consolidated financial statements. The Company recognizes lifetime expected credit losses on loans and other financial instruments immediately when a financial asset is originated or purchased is accordance with ASC326. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that donot share risk characteristics are evaluated on an individual basis. Arriving at an appropriate level of ACL involves a high degree of judgment. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers* may*necessitate future additions or reductions to the allowance.

The Company estimates expected credit losses using a combination of the cohort method and weighted average remaining maturities method. The loan portfolio is segmented into pools of loans by similar attributes and risk characteristics, as of a particular point in time, to which expected losses are calculated over their remaining lives, or until sufficiently attrited (i.e., have reached an acceptable stage at which a significant majority of all losses are expected to have been recognized). Each model factors historical loss rates into quantitative adjustments, to which management applies qualitative adjustments. 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.

F-10

The ACL is increased by the provision for credit losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off against the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off,no portion of the allowance for credit losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all credit losses.

Mortgage loans are secured by the borrower’s residential or non-residential real estate in afirst lien position. Mortgage loans have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Commercial real estate loans consist of multi-family real estate, owner-occupied, mixed use and other commercial real estate, as well as other commercial loans. Commercial and industrial loans are extended to businesses as either unsecured or secured by various types of collateral, such as accounts receivable, inventory, equipment and/or real estate. Consumer loans are primarily home equity loans and are generally secured by the borrower’s personal residence in asecond lien position.

From time to time, we* maymodify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications mayresult in new loans. Loan modifications to borrowers experiencing financial difficulty may*be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things.

Our policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those assets characterized by the distinct possibility that we will sustain some loss if the deficiencies arenot corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets (or portions of assets) classified as loss are those considered uncollectible and are charged to the ACL as their continuance as assets isnot warranted. Assets that donot expose us to risk sufficient to warrant classification inone of the aforementioned categories, but which possess potential weaknesses that deserve closer attention, are designated as special mention. As of* June 30, 2026*, we hadno assets designated as loss, doubtful, substandard or special mention.

Loans that donot share risk characteristics with existing pools are evaluated on an individual basis, such as collateral dependent loans. The Company considers a loan to be collateral dependent when management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the financial asset is expected to be provided substantially through the operation or sale of the collateral. When repayment is expected to be from the operation of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the net present value from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance* maybezero* if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.

F-11

In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses and* mayrequire the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination, which may**not* be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for credit losses is adequate.

The Company made the following elections under ASC326 regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the consolidated statements of financial condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income when a loan is placed on non-accrual status. The Company's policy is to write-off accrued interest when a loan is placed on non-accrual status. Historically, the Company hasnot experienced uncollectible accrued interest receivable on investment debt securities.

The exposure for unfunded commitments is a component of other liabilities on the Company's consolidated statement of financial condition and represents the estimate for current expected credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit, unfunded loan commitments, availability on construction and land development loans and standby and commercial letters of credit. The process used to determine the ACL for these exposures is consistent with the process for determining the ACL for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to the provision for unfunded commitments on the consolidated statements of income is made to account for the change in the ACL on unfunded commitment exposures between reporting periods.

Premises and Equipment, net

Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets. Routine maintenance and repairs are expensed as incurred, while significant expenditures for improvements are capitalized. Gains or losses upon disposition are reflected in earnings as realized. Bank premises and equipment are reviewed by management for potential impairment whenever events or circumstances indicate that carrying amounts* may**not* be recoverable.

Leases

The lease liability for operating leases is measured and recognized as the present value of all future lease payment obligations. The right-of-use asset for operating leases is measured as the amount of the lease liability, plus any unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized.

The discount rate used to compute the lease liability is the implicit rate in the lease contract, if readily determinable, or the Company's incremental borrowing rate. The implicit rates of the Company's operating leases arenot readily determinable, therefore the Company uses its incremental borrowing rate at the commencement date of each lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment.

For all underlying classes of assets, the Company has electednot to recognize right-of-use assets and lease liabilities for leases that have a term of12 months or less at lease commencement. Leases containing termination clauses in which either party* mayterminate the lease without cause and the notice period is less than12* months are also deemed short-term leases. The Company recognizes short-term lease costs on a straight-line basis over the lease term.

Leases acquired in a business combination are evaluated as of the acquisition date to determine if the terms of the acquired leases are more or less favorable than the market terms of similar agreements on the acquisition date. If the lease terms are favorable as compared to the market, the Company records an asset. If the lease terms are unfavorable as compared to the market, the Company records a liability. The Company acquired $3.4 million of operating leases in the acquisition of Regal Bancorp.

F-12

Restricted Equity Securities

Restricted stock, which represents a required investment in the capital stock of correspondent banks related to available credit facilities, are carried at cost. As of those dates, restricted stock* may*include investments in the capital stock of the Federal Home Loan Bank ("FHLB") of New York, Atlantic Community Bankers Bank (“ACBB”) and Bankers Compliance Group (“BCG”).

Federal law requires a member institution of the FHLB system to hold stock of its district bank according to a predetermined formula. At* June 30, 2026and2025*, the Bank held $4.1 million and $2.5 million, respectively, in stock of the FHLB of New York. At* June 30, 2026and2025*, the Company held $120,000 in stock of ACBB and BCG combined.

Management evaluates the stock for impairment in accordance with guidance on accounting by certain entities that lend or finance the activities of others. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as: (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB.

Management believesno impairment charge was necessary related to the FHLB, ACBB or BCG stock as of* June 30, 2026* or* June 30, 2025*.

Bank Owned Life Insurance

The Company invests in bank owned life insurance as a source of funding for employee benefit expenses. Bank owned life insurance involves the purchasing of life insurance by the Company on a chosen group of employees. The Company is the owner and beneficiary of the policies. This investment is carried as an asset in the consolidated statement of financial condition at the cash surrender value of the underlying policies. Increases in the cash surrender value of the policies, as well as proceeds, are recorded as income in the consolidated statement of income.

Goodwill and Other Intangible Assets

The Company accounts for business combinations using the purchase accounting method. Purchase accounting requires that all assets acquired and liabilities assumed be recorded at their estimated fair values as of the acquisition date. Any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Conversely, a gain is recorded if the purchase price is below the fair value of the net assets acquired. The Company recorded goodwill through the merger of Regal Bancorp that it tests for impairment at least annually and more frequently as conditions warrant. As of* June 30, 2026*, goodwill amounted to*$20.4* million. The Company evaluated and concluded that goodwill wasnot impaired as of that date.

Goodwill isnot amortized to expense, but is evaluated for impairment at least annually. Write-downs of the balance are charged to expense in the period in which goodwill is determined to be impaired. The Company recorded goodwill through the merger of Regal Bancorp that is tested for impairment in thefourth quarter of every year, or more frequently as conditions warrant. As of* June 30, 2026,goodwill amounted to $20.4 million. The Company engaged an independentthird*-party appraiser to perform a qualitative assessment of goodwill as of* June 30, 2026,*which concluded that goodwill wasnot impaired as of that date.

Intangible assets are amortized over their estimated lives. The Company recorded a core deposit premium intangible through the merger of Regal Bancorp that is amortized on an accelerated basis overten years. At* June 30, 2026,*the core deposit premium intangible asset had a gross carrying amount of $9.1 million and accumulated amortization of $4.0 million.

Revenue Recognition

The Company earns income from various sources, including loans, investment securities, BOLI, deposit accounts, and sales of assets. The revenue is recognized as it is earned and when collectability is reasonably assured.

Interest income on loans is accrued on the unpaid principal balance and recorded daily. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment to the related loan yield using the interest method. Other loan fees, including late charges, are recognized as the transactions occur.

F-13

Interest income on debt securities, including purchase premiums and discounts, is also accrued using the interest method over the term of the securities. Income from dividends on equity securities are recorded when declared.

Noninterest income is accounted for under ASC606, Revenue from Contracts with Customers, and is discussed in greater detail below. Fees and service charges related to deposit accounts are largely based on contracts with customers that are short-term in nature and where the performance obligations are satisfied as services are rendered. Fees are either fixed at a specific amount or assessed as a percentage of the transaction amount.No judgments or estimates are required by management to determine the amount and timing of the related revenue. Descriptions of the primary revenue contracts included as components of noninterest income are as follows:

Other income items are transactional in nature and are recorded as they occur.

Gains or losses on sales of assets are recorded in accordance with ASC860, "Transfers and Servicing," and are generally recognized when the asset has been legally transferred to the buyer and the Company hasno continuing involvement with the asset. The Company doesnot generally finance the sale of foreclosed assets.

Comprehensive Income (Loss)

U.S. GAAP requires comprehensive income (loss) and its components to be reported when a company presents a full set of financial statements. The term comprehensive income (loss) refers to net income (loss) plus other comprehensive income, that is, certain revenues, expenses, gains, and losses that are reported as separate components of equity instead of net income. For the Company, the primary component of other comprehensive income (loss) is the unrealized actuarial gains or losses on the defined pension plan. The Company has elected to report these effects on the consolidated statements of comprehensive income.

Advertising Costs

Advertising costs are expensed in the period in which they are incurred and recorded as non-interest expense in the consolidated statements of income (loss). Advertising expense was approximately $488,000 and $385,000 for years ended* June 30, 2026and2025*, respectively.

Income Taxes

SR Bancorp, Inc. and its subsidiaries file a consolidated federal income tax return. Income taxes are allocated to SR Bancorp, Inc. and its subsidiaries based on their respective income or loss included in the consolidated income tax return. Separate state income tax returns are filed by SR Bancorp, Inc. and its subsidiaries.

Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on SR Bancorp, Inc. and subsidiaries’ tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes.

F-14

The Company accounts for income taxes using the asset and liability method in accordance with accounting guidance ASC Topic740, Income Taxes. Under this guidance, deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. 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 earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset that isnot likely to be realized. Management believes, based upon current facts, that it is more likely thannot that there will be sufficient taxable income in future years to realize the deferred tax assets.

The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements in accordance with accounting guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the Company’s evaluation, no significant income tax uncertainties were identified. Therefore, the Company recognizedno adjustment for unrecognized tax benefits for the years ended* June 30, 2026* or* June 30, 2025*.

The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the consolidated statements of income. No interest and penalties were recorded during year ended* June 30, 2026* or2025.

Retirement Benefits

The Bank has a funded noncontributory defined benefit pension plan that covered substantially all employees meeting certain eligibility requirements as of* April 30, 2023.The cost of the pension plan is based on actuarial computations of current and future benefits for employees. The Bank froze the pension plan with respect to participation and benefit accounts effective as of April 30, 2023.*

The Bank follows the accounting guidance applicable to a defined benefit pension plan that requires an employer to: (a) recognize in its statement of financial condition an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur.

The Bank also maintains a401(k) Plan. Eligible employees who are at least21 years old become participants in the401(k) Plan after they have been employed forsix consecutive months. Under the401(k) Plan, a participant* may*elect to defer, on a pre-tax basis, between 2% and 100% of their eligible compensation. In addition to salary deferral contributions, the Bank makes contributions equal to 3% of the participant’s plan compensation. A participant is immediately 100% vested in his or her salary deferral contributions and employer contributions.

Employee Stock Ownership Plan (the“ESOP”)

As part of the conversion and stock offering, the Bank established the Somerset Regal Bank Employee Stock Ownership Plan to provide eligible employees of the Bank the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Bank employees. The ESOP was funded through the purchase of 760,634 shares through a loan from the Company. The cost of shares issued to the ESOP, butnot yet allocated to participants, is shown as a reduction of stockholders' equity. The Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants' accounts under the plan.

F-15

Accounting Pronouncements Adopted

In* November 2023,the Financial Accounting Standards Board (“FASB”) issued ASU2023*-07, Segment Reporting (Topic280*): Improvements to Reportable Segment Disclosures*. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after* December 15, 2023,and interim periods for fiscal years beginning after December 15, 2024.Early adoption is permitted. The Company adopted this standard on July 1, 2024.The adoption of this standard didnot* have a material impact on the Company’s consolidated financial statements.

In* December 2023,FASB issued ASU2023*-09, Income Taxes (Topic740): 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 didnot* have a material impact on our financial statements. The Company updated its income tax disclosures in its Form10‑K for the year ended* June 30, 2026,*using the prospective method of adoption.

In* March 2024,the FASB issued ASU2024*-01 Compensation - Stock Compensation (Topic718): Scope Application of Profits Interest and Similar Awards ("ASU2024-01"). This update provides guidance for profits interest and similar awards. The Company adopted ASU2024-01 on* July 1, 2025,which didnot* have a material impact on its consolidated financial statements.

Accounting Standards Update2024-02, "Codification Improvements" ("ASU2024-02"), 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 andnot required to understand or apply the guidance. Generally, the amendments in ASU2024-02 arenot intended to result in significant accounting changes for most entities. The Company adopted ASU2024-02 on* July 1, 2025,which didnot* have a material impact on its consolidated financial statements.

Recent Accounting StandardsNot Yet Adopted

Accounting Standards Update2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures ("ASU2024-03") requires additional expense disclosures by public entities in the notes to the financial statements. ASU2024-03 outlines the specific costs that are required to be disclosed, which include costs such as: employee compensation, depreciation, intangible asset amortization, selling costs and depreciation. It also requires qualitative descriptions of the amounts remaining in the relevant income statement captions that arenot 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. ASU2024-03 is effective for fiscal years beginning after* December 15, 2026.In January 2025,the FASB issued Accounting Standards Update2025*-01, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Clarifying the Effective Date" ("ASU2025-01"), clarifying the interim reporting date when an entity must adopt ASU2024-03. According to ASU2025-01, ASU2024-03 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 isnot* expected to have a material impact on our financial statements.

In* September 2025,FASB issued ASU2025*-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU2025-06"). This update modernizes internal-use software guidance to adapt to the agile basis predominantly used to develop software. ASU2025-06 is effective for fiscal years beginning after* December 15, 2027.Early adoption is permitted. The Company doesnot* expect the adoption of ASU2025-06 will have a material impact on its consolidated financial statements.

In* November 2025,the FASB issued ASU2025*-08 Financial Instruments - Credit Losses (Topic326): Purchased Loans (“ASU2025-08”). This update amends the guidance in ASC326 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 ASU2025-08, 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”). ASU2025-08 is effective for annual reporting periods beginning after* December 15, 2026on a prospective basis. Early adoption is permitted. The Company doesnot* expect the adoption of ASU2025-08 will have a material impact on its consolidated financial statements.

In* December 2025,FASB issued ASU2025*-11 Interim Reporting (Topic270): Narrow-Scope Improvements ("ASU2025-11"). 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 doesnot* expect the adoption of ASU2025-11 will have a material impact on its consolidated financial statements.

In* December 2025,FASB issued ASU2025*-12 Codification Improvements ("ASU2025-12"). 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 doesnot* expect the adoption of ASU2025-12 will have a material impact on its consolidated financial statements.

Subsequent Events

The Company has evaluated subsequent events for recognition or disclosure through* September 25, 2026*, the date consolidated financial statements were available to be issued.

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 arenot deemed outstanding for earnings per share calculations.

F-16

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

The amortized cost and approximate fair values of securities held-to-maturity at* June 30, 2026* and* June 30, 2025* are as follows:

F-17

The amortized cost and fair value of securities held-to-maturity by contractual maturity at* June 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 with or without call or prepayment penalties. 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.

At* June 30, 2026* and* June 30, 2025*, the Bank had $27,000 and $37,000, 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 years ended* June 30, 2026* and* June 30, 2025*:

On a quarterly basis, management evaluates whether there is a credit loss associated with any declines in fair value on securities. Management considers the nature of the collateral, default rates, delinquency rates, credit ratings and interest rate changes, among other factors. However, the Company has determined that highly-rated issues of mortgage-backed securities of government-sponsored agencies have azero expected credit loss.

At* June 30, 2026* and* June 30, 2025*, mortgage-backed securities with a carrying value of approximately $1.6 million and $1.7 million, respectively, were pledged as collateral to secure public funds on deposit.

Loans at* June 30, 2026* and* June 30, 2025* are summarized as follows:

The Company engages primarily in the lending of fixed-rate and adjustable-rate residential mortgage and consumer loans and adjustable-rate commercial loans. Lending activities are primarily targeted to individuals within the Company's geographic footprint. Risks associated with lending activities include economic, political and global conditions and changes in 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 in these areas of lending are minimized by the evaluation of the creditworthiness of the borrower, including debt-to-income ratios, credit scores and conservative underwriting standards that contain loan-to-value ratios of generallyno more than 75% for multi-family and commercial loans and 80% for residential loans. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by 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 withsecond 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.

F-18

At* June 30, 2026*, commercial loans represented 45.7% of total loans, while residential mortgage, consumer and other loans represented 54.3%, nearly all of which was concentrated within our primary market area in New Jersey. The Company holds 95.5% of its commercial loan portfolio in commercial real estate, consisting of multi-family, mixed use, owner occupied and non-owner occupied loans, with less than 1% secured by office buildings. At* June 30, 2026*, the Company hadno non-accrual loans.

The following tables summarize the activity in the allowance for credit losses by loan class for the years ended* June 30, 2026* and* June 30, 2025*.

F-19

F-20

The following tables present the credit risk profile of loans by class and fiscal year of origination as of* June 30, 2026* and* June 30, 2025*:

F-21

F-22

The following tables present the recorded investment in loans receivable by major category and credit quality indicators at* June 30, 2026* and* June 30, 2025*:

The following table presents the amortized cost basis of non-accrual loans and loans90 days or more past due and still accruing, by loan portfolio class with related allowance, as of* June 30, 2026*:

The following tables provide a breakdown of impaired loans by loan portfolio class and related allowance as of* June 30, 2025*:

F-23

The following tables present the classes of loans summarized by the past due status as of* June 30, 2026* and* June 30, 2025*:

As of* June 30, 2026*, the Bank had madeno loan modifications to creditors experiencing financial difficulty.

Premises and equipment at* June 30, 2026* and* June 30, 2025* are summarized as follows:

Depreciation expense amounted to $947,000 and $910,000 for the years ended* June 30, 2026* and* June 30, 2025*, respectively.

F-24

The Company accounts for its leases in accordance with ASC Topic842. 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 toten years. The Company electednot to include short-term leases with initial terms oftwelve months or less on the consolidated statements of financial condition. 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.

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

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

Goodwill and core deposit intangibles resulted from the Company's acquisition of Regal Bancorp, which was accounted for under FASB ASC805, Business Combinations. In accordance with ASC805, the Company recorded $20.4 million of goodwill along with $9.1 million of core deposit intangibles. The intangible assets are related to core deposits and are being amortized over 10 years, using an accelerated method.

F-25

The changes in the carrying amount of goodwill and core deposit intangibles are summarized as follows:

Goodwill and Intangible assets at* June 30, 2026* and* June 30, 2025*:

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

Deposits at* June 30, 2026* and* June 30, 2025* consisted of the following:

Certificates of deposit with balances in excess of the FDIC insurance limit of*$250,000* at* June 30, 2026* and* June 30, 2025* amounted to approximately $30.4 million and $24.9 million, respectively.

F-26

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

At* June 30, 2026* there were $65.0 million of borrowings from the FHLB of New York.

At* June 30, 2026* and* June 30, 2025*, the Company could borrow overnight funds from the FHLB-NY under a redesigned overnight advance program up to the Company's maximum borrowing capacity based on the Company's ability to collateralize such borrowings. At* June 30, 2026*, the Company's maximum borrowing capacity was $135.0 million.

At* June 30, 2026* and* June 30, 2025*, the Company's Board of Directors had authorized borrowings of up to $25.0 million from the Federal Reserve Bank of New York (“FRB-NY”). All borrowings are secured by pledges of the Company's qualifying loan portfolio and are generally on overnight terms with an interest rate quoted at the time of the borrowing.

F-27

Retirement Plan

The Bank has a non-contributory pension plan covering all eligible employees. The plan is a defined benefit plan that provides benefits based on a participant’s years of service and overall annual compensation.

The following tables set forth the plan’s funded status and components of net periodic pension:

F-28

The Company's mortality rate assumptions use the projected mortality improvement scale,Mortality Projection-2021, as published by the Society of Actuaries. The components of the pension and post-retirement net periodic benefit cost for the periods indicated are provided in the table below:

For the years ended* June 30, 2026* and2025, the plan’s assets realized an annual return of approximately 8%. The weighted-average allocation by asset category is as follows:

The fair values of the Bank’s pension plan assets at* June 30, 2026* and* June 30, 2025*, by asset category (see Note16 for the definitions of levels), are as follows:

F-29

The Bank didnot contribute to the pension plan during the year ended* June 30, 2026*. Benefit payments, which reflect expected future service, are expected to be paid as follows:

As of* June 30, 2026* and* June 30, 2025*, unrecognized net loss of $1.0 million and $1.4 million, respectively, was included in accumulated other comprehensive income.

Savings and Investment Plan

The Bank has a savings and investment plan, pursuant to Section401(k) of the Internal Revenue Code, for all eligible employees. Under this plan, employees* maymake voluntary contributions in an amount equal tonot* less than 2% of their eligible compensation during a plan year. In addition, the Bank will make contributions equal to 3% of the plan year compensation for all eligible employees. The Bank, at its discretion,* maymake an additional matching contribution to those participants employed at each plan year end. Plan contributions approximated $282,000 and $264,000 for the years ended June 30, 2026* and* June 30, 2025*, respectively. No additional matching contributions were made during the years ended* June 30, 2026* and* June 30, 2025*.

Deferred Compensation

The Bank has deferred compensation plans for directors and certain officers that permit the deferral of director fees and officer compensation. Amounts deferred earn interest at rates comparable to rates the Bank pays on deposit accounts. At* June 30, 2026* and* June 30, 2025*, liabilities under the plans totaled approximately $1.89 million and $1.52 million, respectively. Interest expense approximated $70,000 and $59,000 for the years ended* June 30, 2026* and* June 30, 2025*, respectively.

The Company has several compensation and benefit arrangements involving shares of the Company’s stock. Stock-based compensation involves the following components for the years ended* June 30, 2026*, and2025:

On* November 20, 2024,the Company adopted the SR Bancorp, Inc.2024 Equity Incentive Plan ("2024* Equity Plan”). The2024 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* June 30, 2026*, there were 183,959 shares available for future grants.

F-30

Stock Options

On* November 21, 2024,the Company granted 237,695 stock options to non-employee directors. On January 29, 2025,** February 5, 2025and December 17, 2025,the Company granted 465,889,57,009 and 58,805, respectively, of stock options to certain officers and employees of the Company. The stock options vest in equal annual installments over afive-year period beginning on thefirst* anniversary of the date of grant. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model. The following table sets forth information regarding the grants:

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

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 trading day of the period and the exercise price.

F-31

Restricted Stock Awards

On* November 21, 2024,the Company granted 95,075 restricted stock awards to non-employee directors. On January 29, 2025,** February 5, 2025and December 17, 2025,*the Company granted 186,356,22,800 and 23,522, respectively, of restricted stock awards to certain officers and employees. The restricted stock awards vest in equal annual installments over afive-year period beginning on the date of grant. The restricted stock awards are measured based on grant-date fair value, which reflects the closing price of the Company’s stock on the date of grant.

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

The following table sets forth the total compensation cost related to non-vested awardsnot yet recognized and the weighted average period (in years) over which it is expected to be recognized as of* June 30, 2026*:

ESOP

The Company maintains the Somerset Regal Bank Employee Stock Ownership Plan (the "ESOP"). Coincident with its conversion on* September 19, 2023,the Company loaned the ESOP $7.6 million, and the ESOP trust purchased 760,634 shares of the Company's common stock at $10.00 per share. The loan is secured by the shares purchased, which are held until allocated to participants. Shares are released for allocation to participants as loan payments are made. Loan payments are principally funded by discretionary cash contributions by the Bank, as well as dividends, if any, paid to the ESOP on unallocated shares. Shares are allocated to eligible participants at the end of the plan year ( December 31)*on the basis of compensation, subject to federal limits.

F-32

Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to the fair market value of shares when they are earned and committed to be released to participants' accounts under the plan. The principal outstanding of the ESOP loan was $6.7 million and $6.9 million at* June 30, 2026*, and2025, respectively. Total compensation expense recognized in connection with the ESOP was $620,000 and $439,000 for the years ended* June 30, 2026*, and2025, respectively.

Shares held by the ESOP were as follows:

Prior to the year ended* June 30, 2024,the Bank qualified as a Savings Institution under the provisions of the Internal Revenue Code and, therefore, prior to January 1, 1996,was permitted to calculate its bad debt deduction using either the experience method or the specific charge off method. Retained earnings at June 30, 2026* and* June 30, 2025* included approximately $5.3 million of such bad debt allowance for which federal income taxes havenot been provided. After* January 1, 1996,*the Bank was only permitted to deduct actual charge offs. If such amount is used for purposes other than for bad debt losses, including distributions in liquidation, it will be subject to income tax at the then current rate.

The components of income tax expense are as follows for years ended* June 30, 2026* and* June 30, 2025*:

F-33

The following table presents a reconciliation between the effective income tax expense and the income tax expense which would be computed by applying the federal statutory tax rate of 21% for the years ended* June 30, 2026* and* June 30, 2025*:

The following table presents income taxes paid (net of refunds received) for the year ended* June 30, 2026:*

The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows:

A deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of such deferred tax items is reduced by the amount that is more likely thannot to be realized based on available evidence. The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At* June 30, 2026* and* June 30, 2025*, the Company had a valuation allowance of $2.1 million and $2.2 million, respectively.

F-34

A corporation* maycarry forward net operating losses to the succeeding 20 taxable years for New Jersey state tax purposes. As of June 30, 2026*, the Bank had total state net operating loss carryforwards of approximately $4.3 million that expire beginning in tax year2044.

Management assesses the available evidence to estimate whether sufficient future taxable income will be generated to realize the existing deferred tax asset. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth.

On the basis of this evaluation, a valuation allowance of $2.1 million was established for the year ended* June 30, 2026* attributable to the Company'sfive-year charitable contribution and capital loss carryforwards. The amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income increased or if objective evidence in the form of cumulative losses isno longer present and additional weight is given to subjective evidence such as our projections for growth. Net deferred tax assets are included in other assets on the Consolidated Statements of Financial Condition. At* June 30, 2026* and* June 30, 2025*, the Company had a valuation allowance of $2.1 million and $2.2 million, respectively.

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 consolidated statements of financial condition.

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* 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 and purchase loans, expiring withinthree months.

At* June 30, 2025*, total unfunded loan-related commitments, including lines of credit, amounted to $79.0 million, comprised of $38.0 million for unused equity lines of credit and $41.0 million to originate and purchase loans, expiring withinthree months.

Commitments to extend credit are agreements to lend to a customer as long as there isno violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and* mayrequire payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts donot* 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 in 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, however the Company recordedno expense for the years ended* June 30, 2026* or* June 30, 2025*. The balance for unfunded commitments was $0 at both* June 30, 2026* and2025.

F-35

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, Tier1 capital (as defined in the regulations) and common equity Tier1 capital to risk-weighted assets, and of Tier1 capital to average assets. A capital conservation buffer of 2.50%, comprised of common equity Tier I capital, is also established above the regulatory minimum capital requirements and must be maintained to avoid limitations on capital distributions.

In2021, 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 Tier1 capital to average assets (leverage) ratio. The Bank must only maintain a leverage ratio greater than the 9% 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.

Market risk, credit risk, operational risk and deposits are some of the factors that can impact the capital adequacy ratio and in turn, adversely affect the performance of the Bank. As of* June 30, 2026*, management believes that the Bank met all capital adequacy requirements to which it was subject. As of* June 30, 2026*, the most recent notification from the Federal Deposit Insurance Corporation 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 areno 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:

F-36

In the ordinary course of business, the Bank has engaged, and continues to engage, in banking transactions with its directors, officers and their related parties.

At* June 30, 2026*, the Bank had $195,000 in outstanding loans to directors, officers and their related parties.

Deposits from directors, officers and their related parties held by the Bank at* June 30, 2026* and* June 30, 2025* amounted to $8.0 million and $14.1 million, respectively.

The Company leasestwo branch facilities under agreements with companies directly or indirectly affiliated with a director, as a result of the Merger. Lease expense recognized in connection with these leases amounted to $240,000 for the year ended* June 30, 2026*.

The Bank uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. From time to time, the Bank* 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 ASC820, 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. Athree-level hierarchy has been established for fair value measurements based upon the inputs to the valuation of an asset or liability.

Level1 - Valuation is based on quoted prices in active markets for identical assets or liabilities;

Level2 - 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 arenot 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;

Level3 - Valuation is derived from model-based and other techniques in which at leastone 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.

F-37

For financial assets measured at fair value on a recurring basis as of* June 30, 2026* and* June 30, 2025*, the fair value measurements by level within the fair value hierarchy used are as follows:

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

Other securities are measured at fair value using quoted market prices in an active market for identical assets and are classified as Level1 in the hierarchy. The estimated fair values of equity securities are determined by obtaining quoted prices on nationally recognized exchanges (Level1 inputs).

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 Level2 in the hierarchy.

The fair value of deposits withno 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.

Financial Assets Measured at Fair Value on a Nonrecurring Basis

There wereno financial assets measured at fair value on a nonrecurring basis at* June 30, 2026and June 30, 2025.*

F-38

Fair Value of Financial Instrumentsnot Carried at Fair Value**

The Company discloses fair value information about financial assets, whether ornot recognized in the statements of financial condition, for which it is practicable to estimate that value. The fair value of financial assets that arenot 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 arenot 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* June 30, 2026and June 30, 2025*were as follows:

F-39

Financial information pertaining to SR Bancorp, Inc. only is as follows:

F-40

F-41