Magyar Bancorp, Inc.
For the period ended Jun 30, 2025. Filed Aug 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.
Jun 30, 2025 · Filed Aug 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 2025-03-31; filed 2025-05-13.
0001174947-25-000760
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001174947-25-001154
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 85 previous paragraphs and 70 current paragraphs.
23 unchanged; 38 reworded; 9 added; 22 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 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 (9)
Current report
Interest Earning Deposits. Total interest-earning deposits with banks decreased $18.5 million, or 72.5%, to $7.1 million at June 30, 2025 from $25.6 million at September 30, 2024 resulting from deployment of these funds into loans receivable during the nine months ended June 30, 2025. The Company’s cash balance reflects seasonal deposit outflows from municipal accounts that historically return the following calendar quarter.
Current report
***Interest and Dividend Income.***Interest and dividend income increased $1.7 million, or 13.5%, to $14.0 million for the three months ended June 30, 2025 compared with $12.3 million for the three months ended June 30, 2024. The increase was attributable to a 24-basis point increase in the yield on interest-earning assets to 5.74% for the three months ended June 30, 2025 from 5.50% for the three months ended June 30, 2024, as well as a $77.6 million, or 10.4%, increase in the average balance of interest-earning assets.
Current report
Interest paid on borrowings increased $56 thousand, or 27.2%, to $262 thousand for the three months ended June 30, 2025 from $206 thousand for the three months ended June 30, 2024. The average balance of borrowings increased $5.5 million to $34.0 million for the three months ended June 30 2025 from $28.5 million for the three months ended June 30, 2024, and the cost of the borrowings increased by 18 basis points to 3.08% for the three months ended June 30, 2025 from 2.90% for the three months ended June 30, 2024.
Current report
Provision for Credit Losses. The Company recorded a net provision for credit losses totaling $101 thousand for the three months ended June 30, 2025 compared with a net recovery of credit losses totaling $54 thousand for the three months ended June 30, 2024. The higher provision for credit losses resulted from growth in commercial real estate, residential mortgage and commercial business loans, partially offset by lower construction loan balances, which require higher provisions for credit loss. The Company recorded $3 thousand in net loan recoveries during the three months ended June 30, 2025 compared with $1 thousand in net loan recoveries during the three months ended June 30, 2024.
Current report
***Other Income.***Other income increased $227 thousand, or 55.5%, to $636 thousand during the three months ended June 30, 2025 compared to $409 thousand for the three months ended June 30, 2024. The increase was primarily due to higher income on bank owned life insurance, which increased $79 thousand, or 84.9%, to $172 thousand for the three months ended June 30, 2025 from $93 thousand for the three months ended June 30, 2024 resulting from the restructure of policies totaling $7.9 million. In addition, the Company recorded higher service fee income, which increased $58 thousand, or 20.6%, to $340 thousand for the three months ended June 30, 2025 from $282 thousand for the three months ended June 30, 2024 primarily from higher commercial loan prepayment charges and late charges on loans.
Current report
Interest and Dividend Income. Interest and dividend income increased $4.6 million, or 12.9%, to $40.4 million for the nine months ended June 30, 2025 from $35.8 million for the nine months ended June 30, 2024. The increase was attributable to a 27-basis point increase in the yield on interest-earning assets to 5.67% for the nine months ended June 30, 2025 from 5.40% for the nine months ended June 30, 2024, as well as a $79.0 million, or 10.9%, increase in the average balance of net loan receivable.
Current report
The average balance of interest-bearing deposits increased $97.3 million, or 15.8%, to $715.0 million for the nine months ended June 30, 2025 from $617.7 million for the nine months ended June 30, 2024, while the average cost of such deposits decreased 4-basis points to 3.03% from 3.07%. Interest paid on interest-bearing deposits increased $2.0 million, or 14.3%, to $16.2 million for the nine months ended June 30, 2025 from $14.2 million for the nine months ended June 30, 2024. A 29-basis point decrease in the cost of the Company’s $494.2 million average balance in money market and interest-bearing checking account balances more than offset a 43-basis point increase in the Company’s $166.7 million average balance of time deposits.
Current report
Interest expense on borrowings increased $30 thousand, or 4.5%, to $693 thousand for the nine months ended June 30, 2025 from $663 thousand for the nine months ended June 30, 2024. The average balance of borrowings increased $2.9 million, or 10.1%, to $31.9 million for the nine months ended June 30, 2025 from $28.9 million for the nine months ended June 30, 2024, while the cost of borrowings decreased 16 basis points to 2.90% for the nine months ended June 30, 2025 compared with 3.06% for the nine months ended June 30, 2024.
Current report
***Other Expenses.***Other expenses increased $863 thousand, or 5.7%, to $16.0 million during the nine months ended June 30, 2025 from $15.2 million during the nine months ended June 30, 2024. The increase was primarily attributable to higher compensation and benefit expense, which increased $663 thousand, or 7.6%, to $9.4 million during the nine months ended June 30, 2025 from $8.7 million for the year ended June 30, 2024, and higher medical benefits and incentive accruals as well as annual merit increases. In addition, occupancy expense increased $222 thousand, or 9.2%, to $2.6 million from $2.4 million due to lease termination expenses related to the closure of the Bank’s Bridgewater office.
Removed paragraphs (22)
Previous 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.
Previous 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.
Previous report
Uninsured deposits were approximately $169.3 million and $122.3 million at March 31, 2025 and September 30, 2024, respectively.
Previous 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.
Previous report
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 report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (38)
Previous wording
When used in this filing and in future filings by the Company with the Securities and Exchange Commission, in the Company’s press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases, “anticipate,” “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “projected,” “believes”, or similar expressions are intended to identify “forward looking statements.” Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed by the Company in Item 1A of its Annual Report on Form 10-K as may be supplemented by Quarterly Reports on Form 10-Q filed with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services, levels of uninsured deposits, and with respect to the loans extended by the Company and real estate owned, the following: risks related to the economic environment in the market areas in which the Bank operates, particularly with respect to the real estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and the risk that significant expense may be incurred by the Company in connection with the resolution of these loans.
Current wording
When used in this filing and in future filings by the Company with the Securities and Exchange Commission, in the Company’s press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases, “anticipate,” “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “projected,” “believes”, or similar expressions are intended to identify “forward looking statements.” Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed by the Company in Item 1A of its Annual Report on Form 10-K as may be supplemented by Quarterly Reports on Form 10-Q filed with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services, levels of uninsured deposits, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, and with respect to the loans extended by the Company and real estate owned, the following: risks related to the economic environment in the market areas in which the Bank operates, particularly with respect to the real estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and the risk that significant expense may be incurred by the Company in connection with the resolution of these loans.
Previous 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.
Current wording
Total Assets. Total assets increased $35.6 million, or 3.7%, to $987.5 million at June 30, 2025 from $951.9 million at September 30, 2024. The increase was attributable to higher balances of loans receivable, partially offset by lower cash equivalents and investment securities.
Previous 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.
Current wording
Loans Receivable. Total loans receivable increased $64.2 million, or 8.2%, to $845.4 million at June 30, 2025 from $781.2 million at September 30, 2024. The increase in total loans receivable during the nine months ended June 30, 2025 occurred in commercial real estate loans, which increased $62.7 million, in one-to four-family residential real estate loans (including home equity lines of credit), which increased $3.7 million, and in construction and land loans, which increased $3.2 million. Partially offsetting these increases were commercial business loans, which decreased $4.9 million and other loans, which decreased $530 thousand.
Previous 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.
Current wording
As of June 30, 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 266% 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
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.
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 June 30, 2025 and September 30, 2024, we had $288 thousand and $116 thousand of non-performing commercial real estate loans, respectively.
Previous 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.
Current wording
Total non-performing loans increased $688 thousand, or 296.6%, to $920 thousand at June 30, 2025 from $232 thousand at September 30, 2024. The ratio of non-performing loans to total loans increased to 0.11% at June 30, 2025 from 0.03% at September 30, 2024.
Previous 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.
Current wording
The allowance for credit losses increased $283 thousand to $8.3 million, or 0.98% of total loan receivable during the nine months ended June 30, 2025. Growth in loans receivable during the nine months ended June 30, 2025 resulted in additional provisions for credit losses totaling $172 thousand and the Company recorded $111 thousand in net loan recoveries. The Company’s allowance for on-balance sheet credit losses increased to $8.1 million at June 30, 2025 from $7.5 million at September 30, 2024 while its reserve for off-balance sheet commitments decreased to $222 thousand at June 30, 2025 from $449 thousand at September 30, 2024. The decrease in our reserves for off balance sheet commitments resulted from contraction in our construction loan commitments during the nine months ended June 30, 2025.
Previous 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.
Current wording
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 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 wording
Investment Securities. At June 30, 2025, investment securities totaled $91.1 million, reflecting a decrease of $4.3 million, or 4.5%, from September 30, 2024. The decrease resulted from matured and called bonds totaling $8.5 million and payments from mortgage-backed securities totaling $5.2 million during the nine months ended June 30, 2025. Offsetting these decreases were purchases of mortgage-backed securities totaling $6.9 million and corporate notes totaling $2.5 million.
Previous 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.
Current wording
Investment securities at June 30, 2025 consisted of $67.4 million in mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises, $10.5 million in U.S. government-sponsored enterprise debt securities, $9.6 million in corporate notes, $3.4 million in municipal bonds, and $179 thousand in “private-label” mortgage-backed securities. There was no allowance for credit losses for the Company’s investment securities at June 30, 2025 and September 30, 2024.
Previous wording
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 wording
Bank Owned Life Insurance. Bank owned life insurance (“BOLI”) decreased $2.7 million, or 11.8%, to $20.6 million at June 30, 2025 from $23.3 million at September 30, 2024.
Previous wording
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 wording
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 nine months ended June 30, 2025, the Company received $3.2 million from policy surrenders and recorded a $501 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 3.36% (4.81% tax-equivalent) at June 30, 2025.
Previous 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.
Current wording
Deposits. Total deposits increased $23.3 million, or 2.9%, to $820.0 million at June 30, 2025. The inflow in deposits occurred in money market accounts, which increased $26.3 million, or 8.6%, to $330.9 million, in certificates of deposit (including individual retirement accounts), which increased $20.9 million, or 13.1%, to $180.5 million, and in savings accounts, which increased $424 thousand, or 0.8%, to $53.3 million. Partially offsetting these increases were a $16.5 million, or 12.4%, decrease in non-interest bearing checking accounts to $116.3 million, and a $7.8 million, or 5.3%, decrease in interest-bearing checking accounts to $138.9 million.
Previous wording
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 wording
Included with total deposit at June 30, 2025 were $41.3 million in brokered deposits, compared with $29.6 million at September 30, 2024. The Company issued $14.1 million of five-year term brokered certificates of deposit during the nine months ended June 30, 2025.
Previous wording
***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 wording
***Borrowed Funds.***Borrowings increased $7.5 million, or 26.2%, to $36.1 million at June 30, 2025 from $28.6 million at September 30, 2024.
Previous wording
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 wording
During the nine months ended June 30, 2025, the Company borrowed $9.0 million from the Federal Home Loan Bank of New York, of which $4.0 million were a zero-cost advances for three-year terms and $5.0 million was for 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 repayments.
Previous 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.
Current wording
Stockholders’ Equity. Stockholders’ equity increased $5.8 million, or 5.2%, to $116.3 million at June 30, 2025 from $110.5 million at September 30, 2024. The increase was primarily due to the Company’s results from operations, which increased $7.2 million, partially offset by dividends paid totaling $1.3 million at $0.21 per share and $869 thousand stock repurchase of 60,410 shares during the nine months ended June 301, 2025. The Company’s book value per share increased to $18.03 at June 30, 2025 from $16.98 at September 30, 2024.
Previous wording
Average Balance Sheets for the Three and Six Months Ended March 31, 2025 and 2024
Current wording
Average Balance Sheets for the Three and Nine Months Ended June 30, 2025 and 2024
Previous 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.
Current wording
The following tables present certain information regarding the Company’s financial condition and net interest income for the three and nine months ended June 30, 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 $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.
Current wording
Net Income. Net income increased $779 thousand, or 46.1%, to $2.5 million for the three months ended June 30, 2025 compared with net income of $1.7 million for the three months ended June 30, 2024. The increase was due to higher net interest income and other income, partially offset by higher provisions for credit loss, other expenses and income tax expense.
Previous 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.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased $1.4 million, or 20.5%, to $8.2 million for the three months ended June 30, 2025 from $6.8 million for the three months ended June 30, 2024. The increase was attributable to a 33-basis point increase in the Company’s net interest margin to 3.35% for the three months ended June 30, 2025 from 3.02% for the three months ended June 30, 2024, as well as a $78.4 million increase in the average balance of interest-earning assets between the periods.
Previous 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.
Current wording
The average balance of loans receivable, net of allowance for credit losses, increased $76.6 million, or 10.4%, to $822.5 million during the three months ended June 30, 2025 from $744.9 million during the three months ended June 30, 2024, while the yield on loans receivable increased 25 basis points to 6.15% for the three months ended June 30, 2025 from 5.90% for the three months ended June 30, 2024. The higher average balance and yield accounted for a $1.6 million, or 15.0%, increase in loan interest income between periods.
Previous wording
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 wording
Interest Expense. Interest expense increased $267 thousand, or 4.8%, to $5.8 million for the three months ended June 30, 2025 from $5.5 million for the three months ended June 30, 2024. The average balance of interest-bearing liabilities increased $85.5 million, or 12.4%, to $772.1 million from $686.6 million, while the cost of interest-bearing liabilities decreased 22 basis points to 3.02% for the three months ended June 30, 2025 compared with 3.24% for the three months ended June 30, 2024.
Previous 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.
Current wording
The average balance of interest-bearing deposits increased $79.9 million, or 12.1%, to $738.1 million for the three months ended June 30, 2025 from $658.2 million for the three months ended June 30, 2024, while the average cost of such deposits decreased 24 basis points to 3.01% from 3.25%. Interest paid on interest-bearing deposits increased $211 thousand, or 4.0%, to $5.5 million for the three months ended June 30, 2025 compared with $5.3 million for the three months ended June 30, 2024.
Previous wording
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 wording
***Other Expenses.***Other expenses increased $184 thousand, or 3.6%, to $5.2 million during the three months ended June 30, 2025 compared to $5.1 million for the three months ended June 30, 2024. The increase was primarily attributable to higher compensation and benefit expense, which increased $211 thousand, or 7.3%, to $3.1 million for the three months ended June 30, 2025 from $2.9 million for the three months ended June 30, 2024. The increase was attributable to higher employee medical benefits and incentive accruals as well as annual merit increases.
Previous 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.
Current wording
Income Tax Expense. The Company recorded income tax expense of $1.0 million on pre-tax income of $3.5 million for the three months ended June 30, 2025, compared with $501 thousand on pre-tax income of $2.2 million for the three months ended June 30, 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 three months ended June 30, 2024. The Company’s effective tax rate for the three months ended June 30, 2025 was 28.9% compared with 22.9% for the three months ended June 30, 2024.
Previous wording
Comparison of Operating Results for the Six Months Ended March 31, 2025 and 2024
Current wording
Comparison of Operating Results for the Nine Months Ended June 30, 2025 and 2024
Previous wording
***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.
Current wording
***Net Income.***Net income increased $2.0 million, or 38.1%, to $7.2 million during the nine months ended June 30, 2025 compared with $5.2 million for the nine months ended June 30, 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.
Previous wording
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 wording
Net Interest and Dividend Income. Net interest and dividend income increased $2.5 million, or 12.2%, to $23.5 million for the nine months ended June 30, 2025 from $21.0 million for the nine months ended June 30, 2024. The increase was attributable to a $67.0 million, or 7.6%, increase in the average balance of interest-earning assets to $953.3 million for the nine months ended June 30, 2025 from $886.3 million for the same period at June 30, 2024, as well as a 14-basis point increase in the Company’s net interest margin to 3.30% for the nine months ended June 30, 2025 from 3.16% for the nine months ended June 30, 2024.
Previous wording
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 wording
The average balance of loans receivable, net of allowance for credit losses, increased $79.0 million, or 10.9%, to $803.8 million during the nine months ended June 30, 2025 from $724.8 million during the nine months ended June 30, 2024, while the yield on loans receivable increased 26-basis points to 6.09% for the nine months ended June 30, 2025 from 5.83% for the nine months ended June 30, 2024. The higher average balance and yield accounted for a $5.0 million, or 15.9%, increase in loan interest income between periods.
Previous wording
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 wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLBNY stock, decreased $402 thousand, or 9.9%, to $3.7 million for the nine months ended June 30, 2025 from $4.1 million for the nine months ended June 30, 2024. The average balance of investment securities and interest-earning deposits decreased by $12.3 million, or 7.7%, to $146.9 million for the nine months ended June 30, 2025 from $159.2 million for the nine months ended June 30, 2024, and the yield of such assets decreased 7-basis points to 3.34% for the nine months ended June 30, 2025 from 3.41% for the nine months ended June 30, 2024.
Previous wording
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 wording
Interest Expense. Interest expense increased $2.1 million, or 13.9%, to $16.9 million for the nine months ended June 30, 2025 compared with $14.9 million for the nine months ended June 30, 2024. The average balance of interest-bearing liabilities increased $100.2 million, or 15.5%, to $746.9 million from $646.6 million, while the cost of interest-bearing liabilities decreased 4-basis points to 3.03% for the nine months ended June 30, 2025 compared with 3.07% for the nine months ended June 30, 2024.
Previous 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.
Current wording
Provision for Credit Losses. The Company recorded provisions for credit losses of $172 thousand for the nine months ended June 30, 2025 compared with $441 thousand for the nine months ended June 30, 2024. The lower provision for credit losses resulted from lower construction loan commitments, which require higher provisions for credit loss, that more than offset growth in commercial real estate, residential mortgage and commercial business loans. In addition, the Company recorded $111 thousand in net loan recoveries during the nine months ended June 30, 2025 compared with $67 thousand in net loan recoveries during the nine months ended June 30, 2024.
Previous wording
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 wording
***Other Income.***Other income increased $1.2 million, or 74.5%, to $2.9 million during the nine months ended June 30, 2025 compared to $1.6 million for the nine months ended June 30, 2024. The increase was primarily due to higher gains from the sale of Small Business Administration 7(a) loans, which increased $506 thousand to $848 thousand for the nine months ended June 30, 2025 from $342 thousand for the nine months ended June 30, 2024. In addition, the Company recorded higher gains from the sale of OREO, commercial loan prepayment charges, late charges on loans and income from its bank-owned life insurance policies.
Previous wording
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.
Current wording
Income Tax Expense. The Company recorded tax expense of $2.9 million on pre-tax income of $10.1 million for the nine months ended June 30, 2025, compared to $1.7 million on pre-tax income of $7.0 million for the nine months ended June 30, 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 nine months ended June 30, 2024. The Company’s effective tax rate for the nine months ended June 30, 2025 was 28.6% compared with 24.8% for the nine months ended June 30, 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 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.
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 June 30, 2025, we had an aggregate net borrowing capacity of $133.2 million. There has been no material adverse change during the nine months ended June 30, 2025 in the ability of the Company and its subsidiaries to fund their operations.
Previous 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.
Current wording
At June 30, 2025, the Company had commitments outstanding under letters of credit totaling $785 thousand, commitments to originate loans totaling $37.6 million, and commitments to fund undisbursed balances of closed loans and unused lines of credit totaling $85.5 million. There has been no material change during the nine months ended June 30, 2025 in any of the Company’s other contractual obligations or commitments to make future payments.
Previous 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%.
Current wording
At June 30, 2025, the Bank’s Tier 1 capital as a percentage of the Bank’s total assets was 10.97%, and total qualifying capital as a percentage of risk-weighted assets was 15.71%.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
***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 report — wording carried elsewhere
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.