Magyar Bancorp(MGYR) - 2024 Q2 - Quarterly Report

Financial Position - Total assets increased by $21.3 million, or 2.3%, to $928.6 million as of March 31, 2024, from $907.3 million at September 30, 2023[108]. - Total loans receivable rose by $44.3 million, or 6.4%, to $741.7 million at March 31, 2024, driven primarily by a $40.0 million increase in commercial real estate loans[110]. - Total deposits increased by $19.4 million, or 2.6%, to $774.9 million at March 31, 2024, with significant inflows in certificates of deposit and money market accounts[119]. - Stockholders' equity rose by $2.8 million, or 2.7%, to $107.6 million at March 31, 2024, primarily due to net income of $3.5 million[122]. - Investment securities totaled $95.4 million at March 31, 2024, reflecting a decrease of $609 thousand, or 0.6%, from $96.0 million at September 30, 2023[117]. - Interest-earning deposits with banks decreased by $22.5 million, or 31.1%, to $50.0 million at March 31, 2024, primarily due to deployment into loans receivable[109]. - The book value per share increased to $16.30 at March 31, 2024, from $15.70 at September 30, 2023[122]. - At March 31, 2024, the Bank's Tier 1 capital as a percentage of total assets was 10.88%[155]. Loan Performance - Non-performing loans decreased by $497 thousand, 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%[114]. - The allowance for on-balance sheet loan losses as a percentage of non-performing loans increased to 167.7% at March 31, 2024, from 163.9% at September 30, 2023[116]. - Provision for credit losses decreased to $14 thousand for the three months ended March 31, 2024, from $195 thousand for the same period in 2023, attributed to lower net charge-offs and decreased construction loan balances[137]. - The allowance for credit losses increased by $69 thousand to $8.4 million during the six months ended March 31, 2024, with provisions for credit loss totaling $495 thousand[115]. Income and Expenses - Net income increased by $101 thousand, or 5.6%, to $1.9 million for the three-month period ended March 31, 2024, compared to $1.8 million for the same period in 2023[129]. - Net income decreased by $57 thousand, or 1.6%, to $3.5 million for the six months ended March 31, 2024, compared to $3.6 million for the same period in 2023, due to higher other expenses[141]. - Net interest and dividend income remained stable at $6.9 million for both the three months ended March 31, 2024, and 2023, despite a 44-basis point decrease in net interest margin to 3.17%[130]. - Net interest and dividend income increased by $330 thousand, or 2.4%, to $14.2 million for the six months ended March 31, 2024, attributed to a $109.9 million increase in the average balance of interest-earning assets[142]. - Other income decreased by $9 thousand, or 1.4%, to $622 thousand for the three months ended March 31, 2024, compared to $631 thousand for the same period in 2023, primarily due to lower loan prepayment fees[138]. - Other expenses increased by $312 thousand, or 6.5%, to $5.1 million for the three months ended March 31, 2024, driven by higher compensation and benefit expenses[139]. Interest Income and Expense - 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%[131]. - Interest earned on investment securities increased by $798 thousand, or 151.7%, to $1.3 million, with yield rising 148 basis points to 3.41%[133]. - Interest expense surged by $2.8 million, or 124.3%, to $5.0 million, with the cost of interest-bearing liabilities increasing 140 basis points to 3.15%[134]. - Interest expense increased by $5.5 million, or 142.6%, to $9.3 million for the six months ended March 31, 2024, resulting from higher market interest rates[146]. - Average balance of interest-bearing deposits rose by $123.5 million, or 25.2%, to $613.7 million, with the average cost increasing 150 basis points to 3.16%[135]. - Average balance of borrowings increased by $2.2 million to $28.8 million, while interest paid on borrowings rose by $3 thousand, or 1.4%, to $222 thousand[136]. Loan Yield and Balances - Average balance of loans receivable increased by $60.5 million to $726.8 million, with yield on loans rising 63 basis points to 5.88% for the three months ended March 31, 2024[132]. - The average balance of loans receivable increased by $60.3 million to $714.9 million for the six months ended March 31, 2024, with a yield increase to 5.79%[144]. Tax Rate - The Company's 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[140].