Magyar Bancorp(MGYR) - 2024 Q4 - Annual Results

Financial Performance - Net income for the three months ended September 30, 2024, increased by $357 thousand, or 16.3%, to $2.5 million compared to $2.2 million for the same period in 2023[5] - Basic and diluted earnings per share for the three months ended September 30, 2024, were $0.41 and $1.23, respectively, compared to $0.34 and $1.20 for the same period in 2023[3] - Net income for the three months ended September 30, 2024, was $2.542 million, compared to $2.185 million for the same period in 2023, reflecting a year-over-year increase of 16.4%[34] - The return on average assets was 1.06% for the three months ended September 30, 2024, compared to 1.00% for the same period in 2023[34] Loan and Asset Growth - The loan portfolio grew by 12% annually, with total loans receivable increasing by $20.9 million, or 2.7%, during the quarter and $83.0 million, or 11.9%, for the year[4][23] - Total assets increased by $44.6 million, or 4.9%, to $951.9 million during the year ended September 30, 2024, attributed to an $82.8 million increase in net loans receivable[20] - Non-performing loans decreased to $232 thousand, down from $5.084 million, indicating improved asset quality[35] Income and Revenue Sources - Interest and dividend income increased by $2.2 million, or 20.2%, to $12.8 million for the three months ended September 30, 2024, driven by a 9.5% growth in average interest-earning assets[7] - Non-interest income surged by $1.1 million, or 137.1%, to $2.0 million during the three months ended September 30, 2024, primarily from gains on other real estate and SBA loans[13] Deposits and Equity - Total deposits rose by $7.5 million, or 0.9%, to $796.7 million during the three months ended September 30, 2024, with a year-over-year increase of $41.2 million, or 5.5%[28] - Total equity increased by $5.7 million, or 5.5%, to $110.5 million at September 30, 2024, driven by net income of $7.8 million[31] Credit Quality and Risk Management - The allowance for credit losses decreased by $333 thousand to $8.0 million for the year ended September 30, 2024, due to the adoption of ASU 2016-13[25] - Non-performing loans decreased by $4.4 million, or 94.9%, to $232 thousand at September 30, 2024, resulting in a non-performing loan ratio of 0.03%[24] Branch Expansion and Strategic Initiatives - The company opened a new branch office in Martinsville to enhance its market presence and support loan and deposit generation[4] - The company is restructuring $7.9 million of its BOLI portfolio, expected to increase the crediting rate from 2.24% to 4.93%[27] Other Financial Metrics - Net interest margin decreased by 28 basis points to 3.08% for the quarter ended September 30, 2024, compared to 3.36% for the same quarter in 2023[6] - Bank owned life insurance (BOLI) increased by $5.1 million, or 27.8%, to $23.3 million for the three months ended September 30, 2024[27] - Certificates of deposit increased by $55.0 million, or 52.5%, to $159.7 million, while interest-bearing checking accounts rose by $31.6 million, or 27.4%, to $146.7 million[28] - The book value per share increased to $16.98 at September 30, 2024, up from $15.70 at September 30, 2023[31] - The company repurchased 110,278 shares at an average price of $12.64 during the three months ended September 30, 2024[30]