Magyar Bancorp(MGYR) - 2025 Q1 - Quarterly Report

Financial Performance - Net income increased by $443 thousand, or 26.2%, to $2.1 million for the three months ended December 31, 2024, compared to $1.7 million for the same period in 2023[107] - Net interest and dividend income rose by $200 thousand, or 2.8%, to $7.4 million for the three months ended December 31, 2024, from $7.2 million in the prior year[108] - Interest and dividend income increased by $1.3 million, or 11.7%, to $12.9 million for the three months ended December 31, 2024, driven by a 33-basis point increase in yield on earning assets to 5.59%[109] - Average balance of loans receivable increased by $82.8 million to $786.0 million, with yield on loans rising 30 basis points to 5.99% for the three months ended December 31, 2024[110] - Other income increased by $347 thousand, or 57.0%, to $956 thousand during the three months ended December 31, 2024, attributed to higher gains on the sale of other real estate owned and SBA loans[116] - Other expenses rose by $389 thousand, or 7.7%, to $5.4 million for the three months ended December 31, 2024, primarily due to higher compensation and occupancy expenses[117] - The effective tax rate for the three months ended December 31, 2024, was 27.9%, compared to 29.8% for the same period in 2023[120] Asset and Liability Management - Total assets increased by $56.5 million, or 5.9%, to $1.0 billion at December 31, 2024, from $951.9 million at September 30, 2024[90] - Total loans receivable rose by $25.3 million, or 3.2%, to $805.5 million at December 31, 2024, primarily driven by a $20.1 million increase in commercial real estate loans[92] - Total deposits increased by $52.2 million, or 6.5%, to $848.8 million at December 31, 2024, with significant inflows in money market accounts and interest-bearing checking accounts[101] - Borrowings increased by $1.9 million, or 6.5%, to $30.4 million at December 31, 2024, following additional borrowing from the Federal Home Loan Bank[102] - Investment securities totaled $98.0 million at December 31, 2024, reflecting a $2.6 million increase, primarily due to the purchase of mortgage-backed securities[99] Credit Quality - The allowance for credit losses increased by $204 thousand to $8.2 million, or 1.02% of total loans receivable, during the quarter ended December 31, 2024[97] - Non-performing loans rose by $107 thousand, or 46.1%, to $339 thousand at December 31, 2024, with the ratio of non-performing loans to total loans increasing to 0.04%[96] - The Company reported a decrease in non-performing commercial real estate loans from $116 thousand at September 30, 2024, to $0 at December 31, 2024[95] - Provision for credit losses decreased to $101 thousand for the three months ended December 31, 2024, compared to $481 thousand in the same period of 2023[115] Equity and Capital - Stockholders' equity grew by $1.1 million, or 1.0%, to $111.7 million at December 31, 2024, attributed to operational results and share repurchases[103] - The Company’s book value per share increased to $17.23 at December 31, 2024, from $16.98 at September 30, 2024[103] - At December 31, 2024, the Bank's Tier 1 capital as a percentage of total assets was 11.20%[123]