SR Bancorp FY2026 10-K: Material Weakness Remediated, $3.4M Net Income, New Buyback
SRBK sits 34% above its 52-week low of $14.33.
Summary
SR Bancorp's FY2026 10-K reports $3.4M net income, remediation of a prior material weakness, and a new 801,320-share buyback plan.
Key Events · Earnings and Guidance · SRBK
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Material Weakness Remediated
Management concluded the material weakness in internal controls over BOLI income recognition, identified as of June 30, 2025, was remediated as of June 30, 2026 through a new reconciliation control.
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FY2026 Net Income Declines
Net income fell to $3.4 million ($0.45 diluted EPS) from $5.1 million ($0.61) a year earlier, primarily due to a $1.5 million prior-year life insurance gain not repeating and higher stock-based compensation.
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New 10% Buyback Authorized
On May 21, 2026, the board approved repurchasing 801,320 shares (~10% of outstanding), following completion of a prior 886,137-share plan in May 2026.
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Strong Capital Position
Somerset Regal Bank's Tier 1 leverage ratio was 13.81% at June 30, 2026, well above the 9% well-capitalized threshold under the community bank leverage ratio framework.
Analysis · SRBK · Finance
The annual report confirms remediation of the material weakness in internal controls over BOLI income recognition that was previously disclosed as of June 30, 2025. Full-year results show net income of $3.4 million, down from $5.1 million a year earlier, driven by the absence of a one-time life insurance gain and higher compensation costs. The bank remains well capitalized with a Tier 1 leverage ratio of 13.81%, and a new 10% buyback authorization signals management's view that the stock is undervalued.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 36.1% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SRBK was trading at $19.20 on NASDAQ in the Finance sector, with a market capitalization of approximately $140.9M. The 52-week trading range was $14.33 to $20.95. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.