SR Bancorp Announces Completion of Conversion, $90.6 million Initial Public Offering and Merger
Bound Brook, New Jersey September 20, 2023 – SR Bancorp, Inc. (“SR Bancorp”), the holding company for Somerset Regal Bank (the “Bank”) announced today that it closed its conversion of the Bank from the mutual to stock form of organization, related stock offering by SR Bancorp and acquisition of Regal Bancorp, Inc. on September 19, 2023.
William P. Taylor, Chairman and Chief Executive Officer of Somerset Regal Bank said: “We are pleased to be united with Regal Bank and welcome their customers and employees. Our merger is a partnership between two banks that are built on trusted relationships and a shared commitment to exceptional personal attention for our customers. And our commitment to the local community remains unchanged. The combination will expand our lending capabilities in new markets while also allowing us to deliver enhanced products to our customers.”
SR Bancorp sold 9,055,172 shares of its common stock at a price of $10.00 per share, which included 760,364 shares sold to Somerset Savings Bank’s Employee Stock Ownership Plan. All valid stock orders submitted by eligible purchasers in the subscription offering were filled in full. Additionally, SR Bancorp contributed 452,758 shares and $905,517 in cash to the Somerset Regal Charitable Foundation, Inc., the charitable foundation formed in connection with the conversion. Upon the completion of the conversion and offering, 9,507,930 shares of SR Bancorp common stock are outstanding. SR Bancorp’s common stock is expected to begin trading on the Nasdaq Capital Market under the trading symbol “SRBK” on September 20, 2023.
SR Bancorp also announced that it completed the acquisition of Regal Bancorp, Inc. a New Jersey corporation (“Regal Bancorp”). Following that transaction, 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 Savings Bank, which converted to a New Jersey commercial bank charter and was renamed Somerset Regal Bank. In connection with the merger, each outstanding share of Regal Bancorp common stock will be converted into the right to receive $23.00 in cash.
SR Bancorp added former Regal Bancorp directors Marc Lebovitz, Thomas Lupo and David Orbach to both its board of directors and the board of the Bank. In addition, Mr. Orbach will join SR Bancorp as its Executive Chairman and the Bank as its Executive Vice Chairman.
Regal Bancorp was advised by The Kafafian Group, Inc. and Windels Marx Lane & Mittendorf, LLP.