Magyar Bancorp(MGYR) - 2024 Q2 - Quarterly Results

Financial Performance - The Company reported a 6% increase in net income to $1,897,000 for the three months ended March 31, 2024, compared to $1,796,000 for the same period in 2023[3]. - Basic and diluted earnings per share increased to $0.30 for the three months ended March 31, 2024, up from $0.28 for the same period in 2023[4]. - Net income for the three months ended March 31, 2024, was $1.90 million, compared to $1.80 million for the same period in 2023, a 5.6% increase[38]. - Return on average assets was 0.81% for the three months ended March 31, 2024, compared to 0.87% for the same period in 2023[38]. - Return on average equity was 7.13% for the three months ended March 31, 2024, down from 7.22% in the same period of 2023[38]. Income and Expenses - Interest and dividend income rose by $2.7 million, or 29.9%, to $11.9 million for the three months ended March 31, 2024, driven by a 67-basis point increase in yield on interest-earning assets to 5.45%[8]. - Interest expense surged by $2.8 million, or 124.3%, to $5.0 million for the three months ended March 31, 2024, due to a 140-basis point increase in the cost of interest-bearing liabilities to 3.15%[9]. - Other expenses increased by $312,000, or 6.5%, to $5.1 million for the three months ended March 31, 2024, mainly due to higher compensation and benefit expenses[12]. - The effective tax rate decreased to 21.7% for the three months ended March 31, 2024, compared to 30.5% for the same period in 2023[13]. Asset and Loan Growth - Total assets increased by $21.3 million, or 2.3%, to $928.6 million at March 31, 2024, primarily due to higher balances of loans receivable[22]. - Total loans receivable increased by $44.5 million, or 6.4%, to $742.7 million at March 31, 2024, with significant growth in commercial real estate loans[25]. - Total loans receivable amounted to $741,712,698, up from $706,206,000, indicating a rise of about 5%[39]. - Non-performing loans decreased by $497,000, or 9.8%, to $4.6 million at March 31, 2024, resulting in a ratio of non-performing loans to total loans of 0.62%[26]. - Non-performing loans accounted for 0.62% of total loans receivable, slightly down from 0.73%[39]. - Non-performing assets represented 0.62% of total assets, consistent with the previous period[39]. Shareholder Equity and Dividends - The Company declared a quarterly cash dividend of $0.05 per share, payable on May 21, 2024[4]. - Total equity for shareholders reached $107,635,104, an increase from $79,000,000, showing significant growth[39]. - Book value per share rose to $16.30 at March 31, 2024, up from $15.70 at September 30, 2023[33]. Credit Losses and Allowances - Provision for credit losses was $14, significantly lower than $195 for the same period in 2023[38]. - Allowance for credit losses stood at $7,694,848, representing 1.04% of total loans receivable, compared to 1.19% previously[39]. - The allowance for credit losses on non-performing loans was reported at 16.73%[39]. Deposits and Securities - Total deposits included an estimated $118.0 million exceeding the FDIC insurance coverage limit of $250,000[31]. - Brokered deposits increased by $7.8 million to $21.6 million as of March 31, 2024, from $13.8 million at September 30, 2023[32]. - The company reported a total of $11,913,000 in investment securities available for sale[39]. Other Income - Other income for the three months ended March 31, 2024, was $622,000, slightly down from $631,000 in the same period of 2023[38]. Strategic Focus - The company is focusing on market expansion and new product development strategies to enhance growth[39].