Form 4: SR Bancorp COO Boosts Stake with New Equity Awards

SR Bancorp's President and COO, Christopher J. Pribula, reported the acquisition of restricted stock and stock options, increasing his beneficial ownership in the company.

Summary

• Christopher J. Pribula, President and COO of SR Bancorp, Inc. (SRBK), reported transactions on December 17, 2025.
• Acquired 5,705 shares of common stock as restricted stock, granted at a price of $0, with vesting at a rate of 20% per year commencing on December 17, 2026.
• Acquired 14,262 stock options, granted at a price of $0, with an exercise price of $16.55, vesting at a rate of 20% per year commencing on December 17, 2026, and expiring on December 17, 2035.
• Following these transactions, Pribula directly beneficially owns 55,638 shares of common stock, which includes restricted stock vesting 20% annually from January 29, 2026.
• Indirect beneficial ownership of common stock totals 25,485 shares, held through a 401(k) (20,946 shares), spouse (1,000 shares), son (250 shares), daughter (250 shares), and an ESOP (3,039 shares).
• Direct beneficial ownership of stock options totals 114,095 options, comprising 99,833 options with an exercise price of $12.50 (vesting 20% annually from January 29, 2026, expiring January 29, 2035) and the newly acquired 14,262 options.

Sentiment

Score: 7

Explanation: The filing indicates increased insider ownership and alignment of executive interests with shareholders through equity compensation, which is generally viewed positively. However, it does not contain information on financial performance or strategic developments that would significantly alter the company's outlook.

Positives

• Increased insider ownership by a key executive, signaling confidence in the company's future.
• Equity awards align the interests of the President and COO with those of shareholders, as the value of his compensation is tied to the company's stock performance.

Risks

• The value of the restricted stock and stock options is subject to market fluctuations of SR Bancorp's common stock.
• The compensation structure relies on future stock performance, which may not materialize as expected.

Future Outlook

The future outlook for the reporting person's equity holdings is tied to the vesting schedules of the restricted stock and stock options, which will occur annually at a rate of 20% starting from December 17, 2026, for the newly acquired awards, and from January 29, 2026, for certain previously held awards. The ultimate value of these awards will depend on SR Bancorp's stock price performance.

Industry Context

The acquisition of restricted stock and stock options by a senior executive is a common practice in the financial services industry, including community banks like SR Bancorp. This form of equity compensation is designed to incentivize long-term performance and align management's financial interests with those of shareholders, a standard approach to corporate governance and executive retention.

Comparison to Industry Standards

• The use of restricted stock and stock options as executive compensation is a widely adopted practice across the financial sector, comparable to compensation structures seen in regional banks and other publicly traded financial institutions.
• The vesting schedules (20% annually over five years) are typical for long-term incentive plans, aiming to retain executives and reward sustained performance, similar to programs at peers like Provident Financial Services or Lakeland Bancorp.

Related Party Transactions

• Indirect beneficial ownership of common stock includes shares held by spouse (1,000 shares), son (250 shares), and daughter (250 shares).

Stakeholder Impact

• Shareholders: The increased equity stake of a key executive may be perceived as a positive signal of management's commitment and confidence in the company's long-term value.
• Employees: The executive's compensation structure, including equity awards, is part of the overall compensation philosophy that could influence employee morale and retention, particularly for other executives and key personnel.

Next Steps

• Annual vesting of 20% of the newly acquired restricted stock and stock options commencing December 17, 2026.
• Annual vesting of 20% of certain previously held restricted stock and stock options commencing January 29, 2026.

Key Dates

Keywords

SR Bancorp, SRBK, Form 4, Insider Transaction, Executive Compensation, Restricted Stock, Stock Options, Equity Awards, Christopher J. Pribula