Magyar Bancorp, Inc. reported a significant increase in its financial performance for the quarter ending December 31, 2024, with net income rising to $2.1 million, a 26.2% increase from $1.7 million in the same period last year. This growth was driven by higher net interest income, which increased by 2.8% to $7.4 million, and a reduction in provisions for credit losses. The company’s total interest and dividend income also saw an increase of 11.7%, reaching $12.9 million, attributed to a higher average balance of interest-earning assets and an increase in yield.
In terms of balance sheet performance, total assets rose by $56.5 million, or 5.9%, to $1.0 billion, primarily due to an increase in loans receivable and interest-earning deposits. Loans receivable increased by $25.3 million, or 3.2%, with notable growth in commercial real estate loans, which rose by 4.4% to $481.4 million. The company also reported a 6.5% increase in total deposits, amounting to $848.8 million, driven by inflows in money market and interest-bearing checking accounts.
Operationally, Magyar Bancorp has made strategic moves, including the opening of a new branch office in Martinsville, NJ, which is expected to save the company $225,000 annually. The company also repurchased 31,737 shares of its common stock during the quarter, with a total of 618,204 shares held in treasury as of December 31, 2024. The stock repurchase program allows for the repurchase of up to 5% of outstanding shares, with 8,673 shares remaining available for repurchase.
The company’s allowance for credit losses increased to $8.2 million, or 1.02% of total loans, reflecting the growth in the loan portfolio. Non-performing loans rose to $339,000, a 46.1% increase from the previous quarter, primarily due to two new residential mortgage loans entering non-accrual status. Despite this, the company maintains a strong asset quality, with no non-performing commercial real estate loans reported.
Looking ahead, Magyar Bancorp anticipates continued growth in its loan portfolio and deposits, supported by its strategic initiatives and market conditions. The company remains cautious about potential economic fluctuations that could impact credit quality and overall financial performance.
About Magyar Bancorp, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.