SR Bancorp, Inc. (NASDAQ:SRBK), a Maryland-based savings institution, has announced the approval of a new Equity Incentive Plan and the election of directors following its recent Annual Meeting of Stockholders, as reported in its Form 8-K filing with the Securities and Exchange Commission.
On Wednesday, stockholders of SR Bancorp approved the SR Bancorp, Inc. 2024 Equity Incentive Plan. The plan aims to provide eligible employees, directors, and consultants with equity-based compensation opportunities, aligning their interests with those of the company's stockholders. The Equity Plan was detailed in the company's proxy statement filed on October 17, 2024, and a copy of the plan was filed with the SEC as part of this report.
In addition to the Equity Plan approval, the annual stockholder meeting, which took place on Wednesday, resulted in the election of three directors. Mary E. Davey, Thomas Lupo, and John W. Mooney were elected to serve three-year terms on the board of directors. The election saw a majority of votes cast in favor of the nominees, with Davey receiving 4,649,572 for and 379,206 withhold votes, Lupo with 4,653,796 for and 374,982 withhold votes, and Mooney securing 4,611,525 for and 444,163 withhold votes.
Furthermore, the stockholders ratified the appointment of Baker Tilly US, LLP as the company's independent registered public accounting firm for the fiscal year ending June 30, 2025. This decision was made with an overwhelming majority of 7,140,225 votes for, 177,082 votes against, and 22,443 abstentions.
The filing also confirms that there have been no changes to the company's business address, and the principal executive offices remain located at 220 West Union Avenue, Bound Brook, New Jersey.
This news article is based on the press release statement and the information contained within the SEC filing. It provides a factual summary of the key events and decisions made by SR Bancorp's stockholders at the Annual Meeting.
In other recent news, SR Bancorp, the parent company of Somerset Regal Bank, has launched its first stock repurchase program. The company intends to repurchase up to 950,793 shares, equating to roughly 10% of its outstanding common stock. This development follows the completion of the company's stock offering in September 2023.
The repurchase transactions are expected to occur on the open market or through private transactions, adhering to the guidelines of SEC Rule 10b5-1. The specifics of the program will be determined by various factors including market conditions, stock availability, trading price, potential alternative capital uses, and SR Bancorp's financial performance.
SR Bancorp has not committed to a fixed number of shares or a specific timeline for the repurchase. CEO William P. Taylor expressed confidence in the company's capital strength, which facilitates these stock purchases.
These recent developments come as Somerset Regal Bank reported total assets of $1.02 billion, net loans of $731.9 million, deposits totaling $807.1 million, and total equity of $199.5 million as of June 30, 2024. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from expectations.
InvestingPro Insights
SR Bancorp's recent Annual Meeting of Stockholders and the approval of its new Equity Incentive Plan come at a time when the company is experiencing significant growth. According to InvestingPro data, SR Bancorp's revenue growth stands at an impressive 164.18% over the last twelve months as of Q1 2025, with quarterly revenue growth reaching an extraordinary 1623.59% in Q1 2025. This robust growth trajectory aligns well with the company's decision to implement an equity-based compensation plan, potentially attracting and retaining top talent to sustain this momentum.
InvestingPro Tips highlight that SR Bancorp is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation. This could be particularly relevant for investors considering the company's recent corporate governance decisions and growth prospects. Additionally, the company is trading near its 52-week high, reflecting market confidence in its recent performance and strategic decisions.
It's worth noting that SR Bancorp does not currently pay a dividend to shareholders, which may be a strategic choice to reinvest profits into growth initiatives, such as the newly approved Equity Incentive Plan. For investors seeking more comprehensive analysis, InvestingPro offers 6 additional tips for SR Bancorp, providing deeper insights into the company's financial health and market position.
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