SR Bancorp, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by SR Bancorp, Inc. on April 22, 2026. The filing discloses the execution of amended and restated employment agreements between Somerset Regal Bank (the wholly-owned subsidiary of SR Bancorp) and three executive officers: William Taylor, Christopher Pribula, and David Orbach. The agreements primarily reflect recent changes in executive titles.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation arrangements.
Material Changes and Executive Compensation
The material change reported is the update of employment terms for three executives. Key compensation details include:
- Base Salaries: William Taylor ($260,000), Christopher Pribula ($490,000), and David Orbach ($410,000). Salaries may be increased but not decreased by the Board or Compensation Committee.
- Contract Terms: Mr. Taylor's agreement is for one year with an option to extend for an additional twelve months. Messrs. Pribula and Orbach have three-year terms that automatically renew annually unless notice of non-renewal is given.
- Bonus Opportunities: Target cash bonuses are set at 25% of base salary for Mr. Taylor, 23% for Mr. Pribula, and 20% for Mr. Orbach.
- Perquisites: Each executive receives a monthly automobile allowance of $750 and participation in standard employee benefit plans.
Severance and Change in Control Provisions
The agreements outline significant severance protections:
- Qualifying Termination (Without Cause/Good Reason): Severance equals the greater of (1) remaining base salary and total annual bonus opportunity for the remaining term, or (2) two times the sum of base salary and average annual incentive bonus (based on the prior three years). Includes up to 18 months of COBRA premium reimbursement.
- Change in Control: If a qualifying termination occurs within two years of a change in control, severance increases to three times the sum of base salary and average annual total incentive bonus. Additionally, executives receive a lump sum equal to the cost of 36 months of health care (COBRA premiums).
- Golden Parachute Reduction: Payments subject to Internal Revenue Code Sections 280G and 4999 will be reduced if the reduction leaves the executive financially better off on an after-tax basis.
Investor Verification Checklist
- Verify the specific titles and roles of William Taylor, Christopher Pribula, and David Orbach to understand the context of the title changes.
- Review the attached Exhibits 10.1, 10.2, and 10.3 for the complete legal text of the employment agreements.
- Assess the potential financial impact of the severance provisions on the company's future liabilities, particularly in the event of a change in control.
- Confirm the company's current liquidity position to ensure it can meet the potential severance obligations described.