Magyar Bancorp Inc
For the period ended Mar 31, 2025. Filed May 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 13, 2025
MGYR$21.90-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-13.
0001174947-25-000166
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001174947-25-000760
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 50 previous paragraphs and 85 current paragraphs.
18 unchanged; 24 reworded; 35 added; 8 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Interest Earning Deposits. Total interest-earning deposits with banks increased $46.7 million, or 194.4%, to $70.7 million at March 31, 2025 from $25.6 million at September 30, 2024 from net deposit inflows during the six months ended March 31, 2025.
Current report
Investment Securities. At March 31, 2025, investment securities totaled $94.0 million, reflecting a decrease of $1.4 million, or 1.5%, from $95.4 million at September 30, 2024. The decrease resulted from matured bonds totaling $4.5 million and payments from mortgage-backed securities totaling $3.8 million during the six months ended March 31, 2025. Offsetting these decreases were purchases of mortgage-backed securities totaling $6.9 million.
Current report
Bank Owned Life Insurance. Bank owned life insurance (“BOLI”) decreased $2.9 million, or 12.5%, to $20.4 million at March 31, 2025 from $23.3 million at September 30, 2024.
Current report
In August 2024, the Company restructured approximately $7.9 million of its BOLI portfolio with the simultaneous purchase and surrender/exchange of BOLI policies. During the six months ended March 31, 2025, the Company received $3.2 million from policy surrenders and recorded a $329 thousand increase in the cash surrender value of the BOLI policies. The restructure increased the yield on the BOLI portfolio from 2.59% (3.71% tax-equivalent) to 3.26% (4.66% tax-equivalent) at March 31, 2025.
Current report
Deposits. Total deposits increased $61.0 million, or 7.7%, to $857.7 million at March 31, 2025 from $796.7 million at September 30, 2024.
Current report
Included with total deposit at March 31, 2025 were $33.1 million in brokered deposits, compared with $29.6 million at September 30, 2024. The Company issued $3.8 million of five-year term certificates of deposit and had one redemption totaling $250 thousand during the six months ended March 31, 2025.
Current report
Uninsured deposits were approximately $169.3 million and $122.3 million at March 31, 2025 and September 30, 2024, respectively.
Current report
***Borrowed Funds.***Borrowings increased $5.3 million, or 18.7%, to $33.9 million at March 31, 2025 from $28.6 million at September 30, 2024.
Current report
During the six months ended March 31, 2025, the Company borrowed $6.9 million from the Federal Home Loan Bank of New York, of which $1.9 million was a zero-cost advance for a three-year term and a $5.0 million was a four-year advance with an initial rate of 4.468% and an embedded 5.0% SOFR interest rate cap. The borrowings were used to fund the Company’s loan growth and were offset by $1.5 million in principal repayment.
Current report
***Interest and Dividend Income.***Interest and dividend income increased $1.6 million, or 13.5%, to $13.5 million for the three months ended March 31, 2025 compared with $11.9 million for the three months ended March 31, 2024. The increase was attributable to a 23-basis point increase in the yield on interest-earning assets to 5.68% for the three months ended March 31, 2025 from 5.45% for the three months ended March 31, 2024, as well as a $78.8 million, or 8.9%, increase in the average balance of interest-earning assets.
Current report
Interest Expense. Interest expense increased $651 thousand, or 13.0%, to $5.6 million for the three months ended March 31, 2025 from $5.0 million for the three months ended March 31, 2024. The average balance of interest-bearing liabilities increased $116.4 million, or 18.1%, to $758.9 million while the cost of interest-bearing liabilities decreased 13 basis points to 3.02% for the three months ended March 31, 2025 compared with 3.15% for the three months ended March 31, 2024.
Current report
Provision for Credit Losses. The Company recorded a net $30 thousand reduction to its allowance for credit losses for the three months ended March 31, 2025 compared to a $14 thousand provision during the three months ended March 31, 2024.
Current report
Provisions for on-balance sheet credit losses were $70 thousand from growth in total loans receivable during the quarter. The Company reduced its allowance for off-balance sheet credit losses by $100 thousand from a reduction in unfunded construction loan commitments during the quarter. Net recoveries from a previously charged-off commercial business loan totaled $5 thousand during the three months ended March 31,2025 compared with $65 thousand in net loan recoveries during the three months ended March 31, 2024.
Current report
***Other Income.***Other income increased $646 thousand, or 103.9%, to $1.3 million during the three months ended March 31, 2025 compared to $622 thousand for the three months ended March 31, 2024.
Current report
Higher other income was primarily due to higher gains from the sale of Small Business Administration (“SBA”) 7(a) loans, which increased $399 thousand, or 187.3%, to $612 thousand during the three months ended March 31, 2025 from $213 thousand during the three months ended March 31, 2024. The Company sold loans totaling $6.5 million during the three months ended March 31, 2025 compared with $2.2 million during the three months ended March 31, 2024.
Current report
Service charges increased $191 thousand, or 65.0%, to $485 thousand during the three months ended March 31, 2025 from $294 thousand during the three months ended March 31, 2024. The Company recorded higher commercial loan prepayment charges, loan fees and late charges on loans during the three months ended March 31, 2025.
Current report
Income on bank-owned life insurance policies increased $71 thousand, or 78.0%, to $162 thousand during the three months ended March 31, 2025 from $91 thousand during the three months ended March 31, 2024. The higher income on bank owned life insurance resulted from the restructure of policies totaling $7.9 million during the quarter ended September 30, 2024.
Current report
Compensation and benefit expense increased $218 thousand, or 7.2%, to $3.2 million during the three months ended March 31, 2025 from $3.0 million during the three months ended March 31, 2024. The increase was attributable to higher employee medical benefits and incentive accruals as well as annual merit increases.
Current report
Occupancy expenses increased $46 thousand, or 5.7%, to $849 thousand during the three months ended March 31, 2025 from $803 thousand during the three months ended March 31, 2024 due to higher seasonal snow and ice removal.
Current report
Other expenses increased $38 thousand, or 6.8%, to $600 thousand during the three months ended March 31, 2025 from $562 thousand during the three months ended March 31, 2024 primarily due to higher loan servicing costs.
Current report
Net Interest and Dividend Income. Net interest and dividend income increased $1.1 million, or 8.1%, to $15.3 million for the six months ended March 31, 2025 from $14.2 million for the six months ended March 31, 2024. The increase was attributable to a $61.2 million, or 7.0%, increase in the average balance of interest-earning assets to $940.8 million for the six months ended March 31, 2025 from $879.6 million for the same period at March 31, 2024, as well as a 4-basis point increase in the Company’s net interest margin to 3.27% for the six months ended March 31, 2025 from 3.23% for the six months ended March 31, 2024.
Current report
Interest and Dividend Income. Interest and dividend income increased $2.9 million, or 12.6%, to $26.4 million for the six months ended March 31, 2025 from $23.5 million for the six months ended March 31, 2024. The increase was attributable to a 29-basis point increase in the yield on interest-earning assets to 5.64% for the six months ended March 31, 2025 from 5.35% for the six months ended March 31, 2024, as well as a $61.2 million, or 7.0%, increase in the average balance of interest-earning assets.
Current report
The average balance of loans receivable, net of allowance for credit losses, increased $79.7 million, or 11.1%, to $794.6 million during the six months ended March 31, 2025 from $714.9 million during the six months ended March 31, 2024, while the yield on loans receivable increased 27 basis points to 6.06% for the six months ended March 31, 2025 from 5.79% for the six months ended March 31, 2024. The higher average balance and yield accounted for a $3.4 million, or 16.4%, increase in loan interest income between periods.
Current report
Interest earned on investment securities, including interest-earning deposits and excluding FHLBNY stock, decreased $422 thousand, or 15.4%, to $2.3 million for the six months ended March 31, 2025 from $2.7 million for the six months ended March 31, 2024. The average balance of investment securities and interest-earning deposits decreased by $18.7 million, or 11.5%, to $143.7 million for the six months ended March 31, 2025 from $162.4 million for the six months ended March 31, 2024. Partially offsetting this decrease was a 15-basis point increase in the yield of such assets to 3.25% for the six months ended March 31, 2025 from 3.40% for the six months ended March 31, 2024.
Current report
Interest Expense. Interest expense increased $1.8 million, or 19.3%, to $11.1 million for the six months ended March 31, 2025 compared with $9.3 million for the six months ended March 31, 2024. The average balance of interest-bearing liabilities increased $107.5 million, or 17.2%, to $743.3 million while the cost of interest-bearing liabilities increased 5 basis points to 3.03% for the six months ended March 31, 2025 compared with 2.98% for the six months ended March 31, 2024.
Current report
The average balance of interest-bearing deposits increased $105.9 million, or 17.7%, to $703.4 million for the six months ended March 31, 2025 from $597.5 million for the six months ended March 31, 2024, while the average cost of such deposits increased seven basis points to 3.04% from 2.97%. As a result, interest paid on interest-bearing deposits increased $1.8 million, or 20.6%, to $10.7 million for the six months ended March 31, 2025 from $8.9 million for the six months ended March 31, 2024.
Current report
Interest expense on borrowings decreased $26 thousand, or 5.7%, to $431 thousand for the six months ended March 31, 2025 from $457 thousand for the six months ended March 31, 2024. The cost of borrowings decreased 34 basis points to 2.80% for the six months ended March 31, 2025 compared with 3.14% for the six months ended March 31, 2024, while the average balance of borrowings increased $1.6 million, or 5.6%, to $30.8 million for the six months ended March 31, 2025 from $29.2 million for the six months ended March 31, 2024.
Current report
***Other Income.***Other income increased $994 thousand, or 80.7%, to $2.2 million during the six months ended March 31, 2025 compared to $1.2 million for the six months ended March 31, 2024.
Current report
Higher other income was primarily due to higher gains from the sale of SBA 7(a) loans and other real estate owned (“OREO”). Gains from the sale of SBA loans increased $506 thousand, or 148.0%, to $848 thousand during the six months ended March 31, 2025 from $342 thousand during the six months ended March 31, 2024. The Company sold loans totaling $8.9 million during the six months ended March 31, 2025 compared with $3.8 million during the six months ended March 31, 2024. The Company recorded a $224 thousand gain on the sale of one OREO property during the six months ended March 31, 2025 compared with no sales or gains during the six months ended March 31, 2024.
Current report
Service charges increased $210 thousand, or 35.2%, to $807 thousand during the six months ended March 31, 2025 from $597 thousand during the six months ended March 31, 2024. The Company recorded higher commercial loan prepayment charges, loan fees and late charges on loans during the six months ended March 31, 2025.
Current report
Income on bank-owned life insurance policies increased $143 thousand, or 76.9%, to $329 thousand during the six months ended March 31, 2025 from $186 thousand during the six months ended March 31, 2024. The higher income on bank owned life insurance resulted from the restructure of policies totaling $7.9 million during the quarter ended September 30, 2024.
Current report
***Other Expenses.***Other expenses increased $679 thousand, or 6.7%, to $10.8 million during the six months ended March 31, 2025 from $10.1 million during the six months ended March 31, 2024.
Current report
Compensation and benefit expense increased $452 thousand, or 7.7%, to $6.3 million during the six months ended March 31, 2025 from $5.9 million during the six months ended March 31, 2024. The increase was attributable to higher employee medical benefits and incentive accruals as well as annual merit increases.
Current report
Occupancy expenses increased $247 thousand, or 15.5%, to $1.8 million during the six months ended March 31, 2025 from $1.6 million during the six months ended March 31, 2024 due to lease termination expenses related to the closure of the Bank’s Bridgewater office in the Company’s first quarter as well as higher seasonal snow and ice removal during the six months ended March 31, 2025 compared with the six months ended March 31, 2024.
Current report
Income Tax Expense. The Company recorded tax expense of $1.9 million on pre-tax income of $6.7 million for the six months ended March 31, 2025, compared to $1.2 million on pre-tax income of $4.8 million for the six months ended March 31, 2024. The increase in income tax expense was driven by higher pre-tax income as well as changes in deferred tax items that lowered the Company’s tax expense during the six months ended March 31, 2024. The Company’s effective tax rate for the six months ended March 31, 2025 was 28.5% compared with 25.7% for the six months ended March 31, 2024.
Removed paragraphs (8)
Previous report
Interest Earning Deposits. Total cash and cash equivalents increased $32.9 million, or 128.7%, to $58.5 million at December 31, 2024 from $25.6 million at September 30, 2024 resulting from higher deposits, partially offset by higher loans receivable and investments.
Previous report
Investment Securities. At December 31, 2024, investment securities totaled $98.0 million, reflecting an increase of $2.6 million, or 2.7%, from $95.4 million at September 30, 2024. The increase resulted from $4.9 million purchase of mortgage-backed securities, offset by principal repayments totaling $2.1 million and a $237 thousand decrease in the market value of the Company’s available-for-sale investment securities during the three months ended December 31, 2024.
Previous report
***Borrowed Funds.***Borrowings increased $1.9 million, or 6.5%, to $30.4 million at December 31, 2024 from $28.6 million at September 30, 2024. During the three months ended December 31, 2024, the Company borrowed an additional $1.9 million from the Federal Home Loan Bank of New York under a program that provides a zero-cost advance for a three-year term.
Previous report
***Interest and Dividend Income.***Interest and dividend income increased $1.3 million, or 11.7%, to $12.9 million for the three months ended December 31, 2024 compared with $11.6 million for the three months ended December 31, 2023. The increase was attributable to a 33-basis point increase in the yield on earning assets to 5.59% for the three months ended December 31, 2024 from 5.26% for the three months ended December 31, 2023 as well as a $44.1 million, or 5.1%, increase in the average balance of interest-earning assets. The increase in yield on the Company’s assets was attributable to higher market interest rates on loans and investments between periods.
Previous report
Interest Expense. Interest expense increased $1.2 million, or 26.6%, to $5.5 million for the three months ended December 31, 2024 from $4.3 million for the three months ended December 31, 2023. The cost of interest-bearing liabilities increased 25 basis points to 3.05% for the three months ended December 31, 2024 compared with 2.80% for the three months ended December 31, 2023 while the average balance of interest-bearing liabilities increased $99.0 million, or 16.2%, to $710.2 million.
Previous report
***Other Income.***Other income increased $347 thousand, or 57.0%, to $956 thousand during the three months ended December 31, 2024 compared to $609 thousand for the three months ended December 31, 2023. The increase was the result of higher gains on the sale of other real estate owned, which totaled $224 thousand for the three months ended December 31, 2024 compared with $0 for the three months ended December 31, 2023, and higher gains on the sale of SBA loans, which totaled $236 thousand for the three months ended December 31, 2024 compared with $129 thousand for the three months ended December 31, 2023. In addition, income on bank owned life insurance increased $72 thousand, or 75.8%, to $167 thousand from the Company’s restructure of policies totaling $7.9 million during the quarter ended September 30, 2024.
Previous report
Compensation and benefit expenses increased $234 thousand, or 8.2%, to $3.1 million due to the additions of a commercial lender and a commercial credit analyst, higher medical insurance expenses, higher incentive accruals and annual merit increases. Occupancy expenses increased $201 thousand, or 25.4%, to $991 thousand due to the opening and operation of the Bank’s new branch office in Martinsville, NJ. In addition, the Company incurred one-time lease termination expenses totaling $130,000 related to the closure of the Bank’s Bridgewater office during the three months ended December 31, 2024. The relocation of the Bank’s branch office from Bridgewater to Martinsville is expected to save the Company $225 thousand per year.
Previous report
Data processing expenses decreased $49 thousand, or 35.0%, to $91 thousand for the three months ended December 31, 2024 from $140 thousand for the three months ended December 31, 2023. During the three months ended December 31, 2024, the Bank extended its core services contract, resulting in the expedited usage of existing flex credits available under the original contract term.
Reworded paragraphs (24)
Previous wording
Total Assets. Total assets increased $56.5 million, or 5.9%, to $1.0 billion at December 31, 2024 from $951.9 million at September 30, 2024. The increase was attributable to higher interest-earning deposits with banks and higher balances of loans receivable.
Current wording
Total Assets. Total assets increased $69.9 million, or 7.3%, to $1.0 billion at March 31, 2025 from $951.9 million at September 30, 2024. The increase was attributable to higher balances of interest-earning deposits with banks and loans receivable.
Previous wording
Loans Receivable. Total loans receivable increased $25.3 million, or 3.2%, to $805.5 million at December 31, 2024 from $780.2 million at September 30, 2024. The increase in total loans receivable during the quarter ended December 31, 2024 occurred primarily in commercial real estate loans, which increased $20.1 million, or 4.4%, to $481.4 million, or 59.7% of loans. The Company also grew in construction loans, which increased $3.3 million, and one-to four-family residential real estate loans (including home equity lines of credit), which increased $2.2 million. Partially offsetting these increases were commercial business loans, which decreased $231 thousand.
Current wording
Loans Receivable. Total loans receivable increased $28.8 million, or 3.7%, to $809.0 million at March 31, 2025 from $780.2 million at September 30, 2024. The increase in total loans receivable during the six months ended March 31, 2025 occurred primarily in commercial real estate loans, which increased $33.9 million, or 7.4% to $495.2 million, or 61.1% of total loans. The Company also grew its one-to four-family residential real estate loans (including home equity lines of credit), which increased $3.8 million. Partially offsetting these increases were construction and land loans, which decreased $5.2 million, commercial business loans, which decreased $3.0 million and other loans, which decreased $483 thousand.
Previous wording
As of December 31, 2024 and September 30, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital were estimated at approximately 280% and 270%, respectively. Management believes that Magyar Bank has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring loan portfolio performance and stressing of the commercial real estate portfolio under adverse economic conditions.
Current wording
As of March 31, 2025 and September 30, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital were estimated at approximately 268% and 270%, respectively. Management believes that Magyar Bank has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring loan portfolio performance and stressing of the commercial real estate portfolio under adverse economic conditions.
Previous wording
Our asset quality with respect to commercial real estate loans has remained strong despite recent economic and market conditions. As of December 31, 2024 and September 30, 2024, we had $0 and $116 thousand of non-performing commercial real estate loans, respectively.
Current wording
The Company’s asset quality with respect to commercial real estate loans has remained strong despite recent economic and market conditions. As of March 31, 2025 and September 30, 2024, we had $0 and $116 thousand of non-performing commercial real estate loans, respectively.
Previous wording
Total non-performing loans increased $107 thousand, or 46.1%, to $339 thousand at December 31, 2024 from $232 thousand at September 30, 2024. The increase was due to the addition of two loans secured by residential mortgages, partially offset by the payoff of one loan secured by commercial real estate. The ratio of non-performing loans to total loans increased to 0.04% at December 31, 2024 from 0.03% at September 30, 2024.
Current wording
Total non-performing loans decreased $151 thousand, or 65.1%, to $81 thousand at March 31, 2025 from $232 thousand at September 30, 2024. The ratio of non-performing loans to total loans decreased to 0.01% at March 31, 2025 from 0.03% at September 30, 2024.
Previous wording
The allowance for credit losses increased $204 thousand to $8.2 million, or 1.02% of total loans receivable, during the three months ended December 31, 2024. Growth in loans receivable during the quarter resulted in additional provisions for credit losses totaling $101 thousand and the Company recorded $103 thousand in net loan recoveries. The Company’s allowance for on-balance sheet credit losses increased to $7.9 million at December 31, 2024 from $7.5 million at September 30, 2024 while its reserve for off-balance sheet commitments decreased to $340 thousand at December 31, 2024 from $449 thousand at September 30, 2024.
Current wording
The allowance for credit losses increased $179 thousand to $8.2 million, or 0.98% of total loans receivable, during the six months ended March 31, 2025. Growth in loans receivable during the six months ended March 31, 2025 resulted in additional provisions for credit losses totaling $71 thousand and the Company recorded $108 thousand in net loan recoveries. The Company’s allowance for on-balance sheet credit losses increased to $7.9 million at March 31, 2025 from $7.5 million at September 30, 2024 while its reserve for off-balance sheet commitments decreased to $240 thousand at March 31, 2025 from $449 thousand at September 30, 2024.
Previous wording
The allowance for on-balance sheet loan losses as a percentage of non-performing loans decreased to 2,318.6% at December 31, 2024 from 3,253.5% at September 30, 2024. The allowance for on-balance sheet loan losses as a percentage of total loans was 0.97% at December 31, 2024 and September 30, 2024, respectively. Future increases in the allowance for credit losses may be necessary based on possible future increases in non-performing loans and charge-offs, the possible deterioration of collateral values, and the possible deterioration of the current economic environment.
Current wording
The allowance for on-balance sheet loan losses as a percentage of total loans was 0.98% at March 31, 2025 and 0.97% at September 30, 2024. Future increases in the allowance for credit losses may be necessary based on possible future increases in non-performing loans and charge-offs, the possible deterioration of collateral values, and the possible deterioration of the current economic environment.
Previous wording
Investment securities at December 31, 2024 consisted of $68.3 million in mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises, $19.0 million in U.S. government-sponsored enterprise debt securities, $7.1 million in corporate notes, $3.4 million in municipal bonds, and $187 thousand in “private-label” mortgage-backed securities. There was no allowance for credit losses for the Company’s investment securities for the three months ended December 31, 2024.
Current wording
Investment securities at March 31, 2025 consisted of $68.8 million in mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises, $14.5 million in U.S. government-sponsored enterprise debt securities, $7.1 million in corporate notes, $3.4 million in municipal bonds, and $183 thousand in “private-label” mortgage-backed securities. There was no allowance for credit losses for the Company’s investment securities at March 31, 2025 and September 30, 2024.
Previous wording
Deposits. Total deposits increased $52.2 million, or 6.5%, to $848.8 million at December 31, 2024 from $796.7 million at September 30, 2024. The inflow in deposits occurred in money market accounts, which increased $27.0 million, or 8.9%, to $331.6 million, in interest-bearing checking accounts, which increased $22.0 million, or 15.0%, to $168.8 million, in savings accounts, which increased $2.4 million, or 4.6%, to $55.3 million, and in certificates of deposit (including individual retirement accounts), which increased $2.3 million, or 1.4%, to $161.9 million. Partially offsetting these increases was a $1.6 million, or 1.2%, decrease in non-interest bearing checking accounts to $131.2 million.
Current wording
The inflow in deposits occurred in interest-bearing checking accounts, which increased $30.3 million, or 20.6%, to $177.0 million, in money market accounts, which increased $22.5 million, or 7.4%, to $327.1 million, in certificates of deposit (including individual retirement accounts), which increased $6.1 million, or 3.8%, to $165.7 million, in savings accounts, which increased $1.7 million, or 3.2%, to $54.6 million and in non-interest bearing checking accounts, which increased $462 thousand, or 0.4%, to $133.3 million.
Previous wording
Stockholders’ Equity. Stockholders’ equity increased $1.1 million, or 1.0%, to $111.7 million at December 31, 2024 from $110.5 million at September 30, 2024. The increase was due to the results from operations, partially offset by dividends paid totaling $0.09 per share and the repurchase of 31,737 shares during the quarter at an average share price of $13.75. The Company’s book value per share increased to $17.23 at December 31, 2024 from $16.98 at September 30, 2024.
Current wording
Stockholders’ Equity. Stockholders’ equity increased $3.7 million, or 3.4%, to $114.3 million at March 31, 2025 from $110.5 million at September 30, 2024. The increase was primarily due to the results from operations, partially offset by dividends paid totaling $0.15 per share and the repurchase of 37,486 shares during the six months ended March 31, 2025. The Company’s book value per share increased to $17.65 at March 31, 2025 from $16.98 at September 30, 2024.
Previous wording
Average Balance Sheets for the Three Months Ended December 31, 2024 and 2023
Current wording
Average Balance Sheets for the Three and Six Months Ended March 31, 2025 and 2024
Previous wording
The following table presents certain information regarding the Company’s financial condition and net interest income for the three months ended December 31, 2024 and 2023. The table presents the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. We derived average balances from daily balances over the period indicated. Interest income includes fees that we consider adjustments to yields.
Current wording
The following tables present certain information regarding the Company’s financial condition and net interest income for the three and six months ended March 31, 2025 and 2024. The tables present the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. We derived average balances from daily balances over the period indicated. Interest income includes fees that we consider adjustments to yields.
Previous wording
Net Income. Net income increased $443 thousand, or 26.2%, to $2.1 million for the three-month period ended December 31, 2024 compared with net income of $1.7 million for the three months ended December 31, 2023. The increase was due to higher net interest income, lower provisions for credit losses and higher other income, partially offset by higher other expenses.
Current wording
Net Income. Net income increased $784 thousand, or 41.3%, to $2.7 million for the three-month period ended March 31, 2025 compared with net income of $1.9 million for the three months ended March 31, 2024. The increase was due to higher net interest income and other income, partially offset by higher other expenses.
Previous wording
Net Interest and Dividend Income. Net interest and dividend income increased $200 thousand, or 2.8%, to $7.4 million for the three months ended December 31, 2024 from $7.2 million for the three months ended December 31, 2023. The increase was attributable to a $44.1 million increase in the average balance of interest-earning assets between periods, partially offset by a seven-basis point decrease in the Company’s net interest margin to 3.22% for the three months ended December 31, 2024 from 3.29% for the three months ended December 31, 2023.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased $953 thousand, or 13.8%, to $7.9 million for the three months ended March 31, 2025 from $6.9 million for the three months ended March 31, 2024. The increase was attributable to a 14-basis point increase in the Company’s net interest margin to 3.31% for the three months ended March 31, 2025 from 3.17% for the three months ended March 31, 2024.
Previous wording
The average balance of loans receivable, net of allowance for credit losses, increased $82.8 million to $786.0 million during the three months ended December 31, 2024 from $703.2 million during the three months ended December 31, 2023, while the yield on loans receivable increased 30 basis points to 5.99% for the three months ended December 31, 2024 from 5.69% for the three months ended December 31, 2023 due to higher market interest rates. The higher average balance and yield accounted for a $1.8 million, or 17.7%, increase in loan interest income between periods.
Current wording
The average balance of loans receivable, net of allowance for credit losses, increased $76.6 million, or 10.5%, to $803.4 million during the three months ended March 31, 2025 from $726.8 million during the three months ended March 31, 2024, while the yield on loans receivable increased 24 basis points to 6.12% for the three months ended March 31, 2025 from 5.88% for the three months ended March 31, 2024. The higher average balance and yield accounted for a $1.6 million, or 15.1%, increase in loan interest income between periods.
Previous wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLB stock, decreased $433 thousand, or 30.5%, to $987 thousand for the three months ended December 31, 2024 from $1.4 million for the three months ended December 31, 2023. The average yield on such assets decreased 33 basis points to 3.06% for the three months ended December 31, 2024 from 3.39% for the three months ended December 31, 2023 while the average balance of investment securities and interest-earning deposits decreased by $38.8 million, or 23.2%, to $128.2 million for the three months ended December 31, 2024 from $167.0 million for the three months ended December 31, 2023.
Current wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLB stock, increased $12 thousand, or 0.9%, to $1.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The average balance of investment securities and interest-earning deposits increased by $1.9 million, or 1.2%, to $159.6 million for the three months ended March 31, 2025 from $157.7 million for the three months ended March 31, 2024 while the yield on such assets decreased 1 basis points to 3.40% for the three months ended March 31, 2025 from 3.41% for the three months ended March 31, 2024.
Previous wording
The average balance of interest-bearing deposits increased $99.1 million, or 17.0%, to $680.7 million for the three months ended December 31, 2024 from $581.6 million for the three months ended December 31, 2023, while the average cost of such deposits increased 28 basis points to 3.06% from 2.78%. As a result, interest paid on interest-bearing deposits increased $1.2 million to $5.3 million for the three months ended December 31, 2024 compared with $4.1 million for the three months ended December 31, 2023.
Current wording
The average balance of interest-bearing deposits increased $113.0 million, or 18.4%, to $726.7 million for the three months ended March 31, 2025 from $613.7 million for the three months ended March 31, 2024, while the average cost of such deposits decreased 13 basis points to 3.03% from 3.16%. As a result, interest paid on interest-bearing deposits increased $650 thousand, or 13.6%, to $5.4 million for the three months ended March 31, 2025 compared with $4.8 million for the three months ended March 31, 2024.
Previous wording
Interest paid on borrowings decreased $28 thousand, or 11.9%, to $208 thousand for the three months ended December 31, 2024 from $236 thousand for the three months ended December 31, 2023. While the average balance of borrowings only decreased $48 thousand to $29.5 million for the three months ended December 31, 2024 compared to $29.6 million for the three months ended December 31, 2023, the cost of the borrowings decreased by 36 basis points to 2.80% for the three months ended December 31, 2024 from 3.16% for the three months ended December 31, 2023.
Current wording
Interest paid on borrowings increased $1 thousand, or 0.5%, to $223 thousand for the three months ended March 31, 2025 from $222 thousand for the three months ended March 31, 2024. While the average balance of borrowings increased $3.3 million to $32.1 million for the three months ended March 31 2025 compared to $28.8 million for the three months ended March 31, 2025, the cost of the borrowings decreased by 31 basis points to 2.81% for the three months ended March 31, 2025 from 3.12% for the three months ended March 31, 2025.
Previous wording
***Other Expenses.***Other expenses increased $389 thousand, or 7.7%, to $5.4 million during the three months ended December 31, 2024 compared to $5.0 million for the three months ended December 31, 2023. The increase was attributable to higher compensation and occupancy expenses, partially offset by lower data processing expenses.
Current wording
***Other Expenses.***Other expenses increased $290 thousand, or 5.7%, to $5.4 million during the three months ended March 31, 2025 compared to $5.1 million for the three months ended March 31, 2024.
Previous wording
Income Tax Expense. The Company recorded tax expense of $805 thousand on pre-tax income of $2.9 million for the three months ended December 31, 2024, compared to tax expense of $700 thousand on pre-tax income of $2.4 million for the three months ended December 31, 2023. The Company’s effective tax rate for the three months ended December 31, 2024 was 27.9% compared with 29.8% for the three months ended December 31, 2023.
Current wording
Income Tax Expense. The Company recorded income tax expense of $1.1 million on pre-tax income of $3.8 million for the three months ended March 31, 2025, compared with $526 thousand on pre-tax income of $2.4 million for the three months ended March 31, 2024. The increase was driven by higher pre-tax income as well as changes in deferred tax items that lowered the Company’s tax expense during the three months ended March 31, 2024. The Company’s effective tax rate for the three months ended March 31, 2025 was 29.0% compared with 21.7% for the three months ended March 31, 2024.
Previous wording
Provision for Credit Losses. The provision for credit losses decreased to $101 thousand for the three months ended December 31, 2024 compared to $481 thousand for the three months ended December 31, 2023. Provisions for on-balance sheet credit losses were $209 thousand from growth in total loans receivable during the quarter and net recoveries of previously charged-off commercial business loans totaling $103 thousand. The Company reduced its allowance for off-balance sheet credit losses by $108 thousand from the contraction in unfunded lines of credit during the quarter.
Current wording
Provision for Credit Losses. The Company recorded provisions for credit losses of $71 thousand for the six months ended March 31, 2025 compared with $495 thousand for the six months ended March 31, 2024. Provisions for on-balance sheet credit losses were $279 thousand from growth in total loans receivable during the period. The Company reduced its allowance for off-balance sheet credit losses by $208 thousand from a reduction in unfunded construction loan commitments during the period. Net recoveries from previously charged-off commercial business loans totaled $108 thousand during the six months ended March 31, 2025 compared with $66 thousand in net loan recoveries during the six months ended March 31, 2024.
Previous wording
The Company’s liquidity is a measure of its ability to fund loans, pay withdrawals of deposits, and other cash outflows in an efficient, cost-effective manner. The Company’s short-term sources of liquidity include maturity, repayment and sales of assets, excess cash and cash equivalents, new deposits, other borrowings, and new advances from the FHLBNY. Based on eligible loan collateral pledged to the FHLBNY at December 31, 2024, we had an aggregate borrowing capacity of $135.3 million. There has been no material adverse change during the nine months ended December 31, 2024 in the ability of the Company and its subsidiaries to fund their operations.
Current wording
The Company’s liquidity is a measure of its ability to fund loans, pay withdrawals of deposits, and other cash outflows in an efficient, cost-effective manner. The Company’s short-term sources of liquidity include maturity, repayment and sales of assets, excess cash and cash equivalents, new deposits, other borrowings, and new advances from the FHLBNY. Based on eligible loan collateral pledged to the FHLBNY at March 31, 2025, we had an aggregate net borrowing capacity of $128.8 million. There has been no material adverse change during the six months ended March 31, 2025 in the ability of the Company and its subsidiaries to fund their operations.
Previous wording
At December 31, 2024, the Company had commitments outstanding under letters of credit totaling $735 thousand, commitments to originate loans totaling $67.6 million, and commitments to fund undisbursed balances of closed loans and unused lines of credit totaling $74.8 million. There has been no material change during the current quarter ended December 31, 2024 in any of the Company’s other contractual obligations or commitments to make future payments.
Current wording
At March 31, 2025, the Company had commitments outstanding under letters of credit totaling $785 thousand, commitments to originate loans totaling $24.1 million, and commitments to fund undisbursed balances of closed loans and unused lines of credit totaling $83.0 million. There has been no material change during the current quarter ended March 31, 2025 in any of the Company’s other contractual obligations or commitments to make future payments.
Previous wording
At December 31, 2024, the Bank’s Tier 1 capital as a percentage of the Bank’s total assets was 11.20%, and total qualifying capital as a percentage of risk-weighted assets was 15.65%.
Current wording
At March 31, 2025, the Bank’s Tier 1 capital as a percentage of the Bank’s total assets was 10.90%, and total qualifying capital as a percentage of risk-weighted assets was 15.96%.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
(1) The average balance of loans receivable, net includes non-accrual loans.
Current report — wording carried from elsewhere
(2) Interest income and yield are calculated using the Company's 21% federal tax rate.
Current report — wording carried from elsewhere
(3) Includes passbook savings, money market passbook and club accounts.
Current report — wording carried from elsewhere
(4) Includes interest-bearing checking and money market accounts.
Current report — wording carried from elsewhere
(5) Includes certificates of deposits and individual retirement accounts.
Current report — wording carried from elsewhere
(6) Calculated as annualized net interest income divided by average total interest-earning assets.
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended March 31, 2025 and 2024
Current report — wording carried from elsewhere
***Net Income.***Net income increased $1.2 million, or 34.3%, to $4.8 million during the six-month period ended March 31, 2025 compared with $3.5 million for the six-month period ended March 31, 2024. The increase was due to higher net interest income, lower provisions for credit loss, and higher other income, partially offset by higher other expenses and income tax expense.