Magyar Bancorp(MGYR) - 2025 Q2 - Quarterly Report

Financial Position - Total assets increased by $69.9 million, or 7.3%, to $1.0 billion at March 31, 2025, from $951.9 million at September 30, 2024[90]. - Total deposits increased by $61.0 million, or 7.7%, to $857.7 million at March 31, 2025, from $796.7 million at September 30, 2024[104]. - Stockholders' equity rose by $3.7 million, or 3.4%, to $114.3 million at March 31, 2025, from $110.5 million at September 30, 2024[109]. - Total loans receivable increased by $28.8 million, or 3.7%, to $809.0 million at March 31, 2025, with commercial real estate loans growing by $33.9 million, or 7.4%[92]. - Investment securities totaled $94.0 million at March 31, 2025, reflecting a decrease of $1.4 million, or 1.5%, from $95.4 million at September 30, 2024[100]. - Borrowings increased by $5.3 million, or 18.7%, to $33.9 million at March 31, 2025, from $28.6 million at September 30, 2024[107]. Loan and Credit Quality - Non-performing loans decreased by $151 thousand, or 65.1%, to $81 thousand at March 31, 2025, from $232 thousand at September 30, 2024[97]. - The allowance for credit losses increased by $179 thousand to $8.2 million, or 0.98% of total loans receivable, during the six months ended March 31, 2025[98]. - The provision for credit losses recorded a net reduction of $30 thousand for the three months ended March 31, 2025, compared to a $14 thousand provision in the same period of 2024[124]. Income and Earnings - Net income increased by $784 thousand, or 41.3%, to $2.7 million for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024[116]. - Net income rose by $1.2 million, or 34.3%, to $4.8 million for the six months ended March 31, 2025, compared to $3.5 million for the same period in 2024[133]. - Net interest and dividend income rose by $953 thousand, or 13.8%, to $7.9 million for the three months ended March 31, 2025, from $6.9 million in the prior year[117]. - Net interest and dividend income increased by $1.1 million, or 8.1%, to $15.3 million for the six months ended March 31, 2025, from $14.2 million for the same period in 2024[134]. - Other income surged by $646 thousand, or 103.9%, to $1.3 million during the three months ended March 31, 2025, compared to $622 thousand for the same period in 2024[126]. - Other income increased by $994 thousand, or 80.7%, to $2.2 million during the six months ended March 31, 2025, compared to $1.2 million for the same period in 2024[142]. Interest and Expenses - Interest and dividend income increased by $1.6 million, or 13.5%, to $13.5 million for the three months ended March 31, 2025, compared to $11.9 million for the same period in 2024[118]. - Interest expense increased by $651 thousand, or 13.0%, to $5.6 million for the three months ended March 31, 2025, from $5.0 million in the prior year[121]. - Interest expense increased by $1.8 million, or 19.3%, to $11.1 million for the six months ended March 31, 2025, compared to $9.3 million for the same period in 2024[138]. - Compensation and benefit expense increased by $452 thousand, or 7.7%, to $6.3 million during the six months ended March 31, 2025, from $5.9 million for the same period in 2024[146]. Asset Management - The average balance of loans receivable increased by $76.6 million, or 10.5%, to $803.4 million during the three months ended March 31, 2025[119]. - The average balance of loans receivable increased by $79.7 million, or 11.1%, to $794.6 million during the six months ended March 31, 2025, from $714.9 million for the same period in 2024[136]. - The average balance of interest-bearing deposits rose by $113.0 million, or 18.4%, to $726.7 million for the three months ended March 31, 2025[122]. - The average balance of interest-bearing deposits increased by $105.9 million, or 17.7%, to $703.4 million for the six months ended March 31, 2025, from $597.5 million for the same period in 2024[139]. Taxation - The effective tax rate for the six months ended March 31, 2025 was 28.5%, compared to 25.7% for the same period in 2024[148]. Shareholder Value - The book value per share increased to $17.65 at March 31, 2025, from $16.98 at September 30, 2024[109]. - The yield on interest-earning assets increased by 23 basis points to 5.68% for the three months ended March 31, 2025, from 5.45% in the prior year[118]. - The net interest margin improved by 14 basis points to 3.31% for the three months ended March 31, 2025, from 3.17% in the previous year[117]. Service Charges - Service charges increased by $210 thousand, or 35.2%, to $807 thousand during the six months ended March 31, 2025, from $597 thousand for the same period in 2024[144]. Borrowing Capacity - The Company had an aggregate net borrowing capacity of $128.8 million based on eligible loan collateral pledged to the FHLBNY at March 31, 2025[149].