Magyar Bancorp Inc (MGYR) Reports Fiscal Fourth Quarter and Year End Financial Results
Magyar Bancorp Inc (NASDAQ:MGYR) reported a net income of $2.185 million for the three months ended September 30, 2023, compared to $2.43 million for the same period in 2022.
The company's net income for the year ended September 30, 2023, was $7.709 million, slightly lower than the $7.919 million reported for the year ended September 30, 2022.
Magyar Bancorp Inc (NASDAQ:MGYR) declared a quarterly cash dividend of $0.04 per share, payable on November 24, 2023.
The company's basic and diluted earnings per share were $0.34 and $1.20 for the three months and year ended September 30, 2023, respectively.
Magyar Bancorp Inc (NASDAQ:MGYR), the parent company of Magyar Bank, announced its financial results for the fiscal fourth quarter and year ended September 30, 2023, on October 30, 2023. The company reported a net income of $2.185 million for the three months ended September 30, 2023, compared to $2.43 million for the same period in 2022. For the year ended September 30, 2023, the net income was $7.709 million, slightly lower than the $7.919 million reported for the year ended September 30, 2022.
Financial Performance
Magyar Bancorp Inc (NASDAQ:MGYR) reported that its basic and diluted earnings per share were $0.34 and $1.20 for the three months and year ended September 30, 2023, respectively. This compares with basic and diluted earnings per share for the three months and year ended September 30, 2022, of $0.36 and $1.17, respectively.
The company's Board of Directors declared a quarterly cash dividend of $0.04 per share, which will be paid on November 24, 2023, to stockholders of record as of November 9, 2023.
We are very pleased to report strong earnings for our full fiscal year", stated John Fitzgerald, President and Chief Executive Officer. "While the inverted yield curve presented a challenging environment for the banking industry, compressing margins and increasing competition for deposits, Magyar was able to minimize its impact through balanced loan and deposit growth. This balanced growth resulted in a decline in Magyars loan-to-deposit ratio to 92.4% at September 30, 2023 from 94.2% one year earlier, providing room for continued loan growth to help offset rising funding costs."
Balance Sheet and Income Statement Highlights
Magyar Bancorp Inc (NASDAQ:MGYR) reported that total assets increased by $108.7 million, or 13.6%, to $907.3 million compared with $798.6 million for the prior year period. The increase was attributable to a $69.2 million increase in net loans receivable and a $41.3 million increase in interest-earning deposits with banks, offset by a $4.9 million decrease in investment securities.
Net interest and dividend income decreased by $233,000, or 3.2%, to $7.0 million for the three months ended September 30, 2023 from $7.2 million for the three months ended September 30, 2022. The decline was attributable to a 47 basis point decrease in the Companys net interest margin to 3.36% for the quarter ended September 30, 2023 compared to 3.83% for the quarter ended September 30, 2022.
Non-interest income increased by $15,000, or 1.8%, to $832,000 during the three months ended September 30, 2023 compared with $817,000 for the prior year period. The increase was primarily from service charges, partially offset by lower gains on the sales of loans.
Looking Ahead
As we look ahead to our next fiscal year, inflation and its impact on the economy will need to be closely monitored, but we are encouraged to see our loan pipeline remain strong and will continue maintaining strong underwriting standards," said Mr. Fitzgerald.
Explore the complete 8-K earnings release (here) from Magyar Bancorp Inc for further details.
This article first appeared on GuruFocus.
