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NEW BRUNSWICK, N.J. - Magyar Bancorp (NASDAQ:MGYR), the holding company for Magyar Bank with a market capitalization of $92.21 million, disclosed its financial outcomes for the recent quarter and half-year ending March 31, 2025, showing a significant rise in net income and a forthcoming dividend payment to shareholders. According to InvestingPro analysis, the company currently trades slightly below its Fair Value, suggesting potential upside opportunity.
The Company announced a 41% increase in net income for the quarter, reaching $2.7 million, up from $1.9 million in the same period the previous year. For the six-month period, net income climbed to $4.8 million, a 34.3% rise from the $3.5 million reported last year. This performance aligns with InvestingPro data showing the company has maintained profitability over the last twelve months, with a P/E ratio of 10.85 and impressive one-year total return of 26.66%.
Earnings per share also grew, with basic and diluted earnings at $0.43 for the quarter, compared to $0.30 in the prior year. For the six-month period, earnings were $0.77 and $0.76 per share, respectively, marking an increase from $0.56 per share in 2024.
Magyar Bancorp’s Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on May 28, 2025, to stockholders of record as of May 14, 2025. The company’s dividend yield stands at 1.98%, with a notable dividend growth of 21.74% over the last twelve months. InvestingPro subscribers can access additional insights about Magyar’s dividend sustainability and growth potential, along with over 30 key financial metrics and exclusive analysis.
The Company attributes its financial performance to an increase in net interest income and other income, coupled with a disciplined approach to lending and balance sheet management. President and CEO John Fitzgerald cited strong net interest margin expansion and low non-performing assets as key factors in the Bank’s performance.
The financial report detailed a rise in net interest and dividend income, which was $7.9 million for the quarter, a 13.8% increase from the previous year. This was due to both a higher average balance of interest-earning assets and an improved net interest margin.
Other income saw a significant uptick, more than doubling to $1.3 million for the quarter, driven largely by gains from the sale of Small Business Administration 7(a) loans.
Despite these gains, the Company also experienced an increase in other expenses, primarily due to higher compensation and benefit costs, as well as occupancy and loan servicing expenses.
The effective tax rate for the quarter was 29.0%, up from 21.7% in the previous year, reflecting higher pre-tax income and changes in deferred tax items.
On the balance sheet, total assets grew by 7.3% to $1.0 billion as of March 31, 2025, with loans receivable and deposits showing increases. Non-performing loans decreased, signifying an improvement in asset quality. The company maintains a conservative debt profile with a debt-to-equity ratio of 0.29, while receiving a FAIR overall Financial Health Score of 2.42 from InvestingPro’s comprehensive assessment system.
The Company’s book value per share also increased, reaching $17.65 at the end of March 2025.
Magyar Bancorp’s financial results are based on a press release statement and reflect the Company’s performance and strategic initiatives.
In other recent news, Magyar Bancorp, Inc. held its 2025 Annual Meeting of Stockholders, where several significant decisions were made. Shareholders re-elected John S. Fitzgerald, Thomas Lankey, and Joseph A. Yelencsics as directors, each to serve a three-year term. The meeting also addressed executive compensation, with a majority of shareholders supporting an annual vote on this matter. The advisory resolution to approve compensation for the company’s named executive officers passed with 3,587,725 votes in favor. Furthermore, the appointment of S.R. Snodgrass, P.C. as the independent registered public accounting firm for the fiscal year ending September 30, 2025, was ratified by a substantial majority. The company disclosed detailed voting results, ensuring transparency and accountability. These developments reflect Magyar Bancorp’s ongoing commitment to corporate governance and stakeholder engagement.
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