On July 25, 2022, Somerset Savings Bank, SLA, Bound Brook, New Jersey, adopted a plan of conversion to convert from the mutual to stock form of organization. Somerset Savings also entered into a merger agreement to acquire Regal Bancorp, Inc. Under the terms of the merger agreement, Regal Bancorp shareholders may elect to receive 1.93 shares of SR Bancorp, Inc. (the newly formed holding company of Somerset Savings Bank) common stock (based on a $10.00 per share offering price) or $19.30 in cash for each share of Regal Bancorp common stock, subject to the allocation and proration procedures set forth in the merger agreement. The aggregate transaction value of the merger is approximately $58.4 million. As a part of the transaction, Regal Bank, the wholly-owned subsidiary of Regal Bancorp, will merge with and into Somerset Savings Bank, which will also convert to a commercial bank charter under the name Somerset Regal Bank.

These transactions represent the first proposed conversion of a mutual financial institution, related stock offering and simultaneous merger using stock as merger consideration since 2008.

Somerset Savings Bank is a full-service community bank headquartered in Bound Brook, New Jersey, that operates seven branches in Hunterdon, Middlesex and Somerset Counties, New Jersey. At March 31, 2022, Somerset Savings had $649.0 million in total assets, $317.0 million in net loans, $525.0 million in deposits and total equity of $120.2 million.

Regal Bank is a full-service community bank headquartered in Livingston, New Jersey, that operates ten branches in Essex, Morris, Somerset and Union Counties, New Jersey. At March 31, 2022, Regal Bancorp had $544.7 million in total assets, $345.7 million in net loans, $480.5 million in deposits and total equity of $46.7 million.

Luse Gorman is serving as legal counsel to Somerset Savings Bank in the transaction. The Luse Gorman team consists of John Gorman, Marc Levy , Thomas Hutton and Scott Brown.

Luse Gorman has acted as counsel on more than 100 bank M&A transactions during the past five years and more bank M&A transactions than any other law firm in the nation over the past 20 years. To learn more about our mergers and acquisitions practice, please visit our website.