Magyar Bancorp(US:MGYR)2023-08-14 16:01Financial Position - Total assets increased by $58.9 million, or 7.4%, to $857.4 million at June 30, 2023, from $798.5 million at September 30, 2022[99]. - Total loans receivable rose by $73.6 million, or 11.7%, to $702.5 million at June 30, 2023, driven by a $59.6 million increase in commercial real estate loans[103]. - Total deposits grew by $25.7 million, or 3.9%, to $693.5 million at June 30, 2023, with significant increases in money market accounts and certificates of deposit[109]. - Stockholders' equity increased by $4.3 million, or 4.3%, to $102.8 million at June 30, 2023, with a book value per share rising to $15.41[112]. - Cash and interest-earning deposits with banks decreased by $8.5 million, or 27.6%, to $22.4 million at June 30, 2023[100]. - Investment securities totaled $92.5 million at June 30, 2023, reflecting a decrease of $8.4 million, or 8.3%, from $100.9 million at September 30, 2022[100]. - At June 30, 2023, the Bank's Tier 1 capital as a percentage of total assets was 11.21%[149]. - The Company had an aggregate borrowing capacity of $112.2 million based on eligible loan collateral pledged to the FHLBNY at June 30, 2023[147]. Loan Performance - Non-performing loans increased by $725,000, or 25.6%, to $3.6 million at June 30, 2023, with the ratio of non-performing loans to total loans rising to 0.51%[105]. - The allowance for loan losses as a percentage of total loans decreased to 1.19% at June 30, 2023, from 1.34% at September 30, 2022[107]. - The provision for loan losses recorded a credit of $81,000 for the three months ended June 30, 2023, compared to a provision of $205,000 for the same period in 2022[127]. - Provision for loan losses increased to $432,000 for the nine months ended June 30, 2023, compared to $376,000 for the same period in 2022, reflecting growth in the loan portfolio and increased charge-offs[142]. Income and Expenses - Net income decreased by $199,000, or 9.4%, to $1.9 million for the three months ended June 30, 2023, compared to $2.1 million for the same period in 2022[118]. - Net interest and dividend income decreased by $74,000, or 1.1%, to $6.9 million for the three months ended June 30, 2023, from $7.0 million for the same period in 2022[119]. - Interest and dividend income increased by $2.3 million, or 30.8%, to $9.8 million for the three months ended June 30, 2023, compared to $7.5 million for the same period in 2022[120]. - Interest expense increased by $2.4 million, or 463.9%, to $2.9 million for the three months ended June 30, 2023, from $512,000 for the same period in 2022[123]. - Other income decreased by $55,000, or 8.1%, to $621,000 during the three months ended June 30, 2023, compared to $676,000 for the same period in 2022[129]. - Net interest and dividend income increased by $946,000, or 4.8%, to $20.7 million for the nine months ended June 30, 2023, from $19.8 million for the same period in 2022[133]. - Other expenses increased by $454,000, or 10.2%, to $4.9 million during the three months ended June 30, 2023, compared to $4.4 million for the same period in 2022[130]. - Interest and dividend income increased by $6.1 million, or 28.3%, to $27.5 million for the nine months ended June 30, 2023, compared to $21.4 million for the same period in 2022[134]. - Interest income on loans receivable increased by $5.3 million, or 26.3%, to $25.6 million for the nine months ended June 30, 2023, driven by a 61 basis point increase in yield to 5.18%[135]. - Interest earned on investment securities increased by $700,000, or 66.7%, to $1.8 million for the nine months ended June 30, 2023, despite a 23.4% decrease in the average balance of investment securities[137]. - Interest expense increased by $5.1 million, or 318.0%, to $6.7 million for the nine months ended June 30, 2023, primarily due to a 130 basis point increase in the cost of interest-bearing liabilities[138]. - Other income decreased by $46,000, or 2.4%, to $1.9 million during the nine months ended June 30, 2023, with no gains recorded on the sale of OREO[144]. - Other expenses increased by $701,000, or 5.2%, to $14.3 million during the nine months ended June 30, 2023, primarily due to higher compensation and benefit expenses[145]. - The effective tax rate for the nine months ended June 30, 2023, was 29.9%, compared to 29.1% for the same period in 2022[146]. Borrowings - Borrowings surged by $29.9 million, or 191.4%, to $45.5 million at June 30, 2023, primarily to fund loan growth[111]. - The cost of interest-bearing deposits increased by 176 basis points to 2.12% for the quarter ended June 30, 2023, from 0.36% for the same period in 2022[124]. - The average balance of loans receivable increased by $68.1 million during the nine months ended June 30, 2023[133].