Kind 8-Okay Magyar Bancorp, Inc. For: Jul 26 – StreetInsider.com

July 28, 2022 By admin

FREE Breaking Information Alerts from StreetInsider.com!
StreetInsider.com Prime Tickers, 7/27/2022
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-Okay
 
CURRENT REPORT
 
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest occasion reported): July 26, 2022
 
MAGYAR BANCORP, INC.
(Actual Identify of Registrant as Laid out in Constitution)
 
 
Registrant’s phone quantity, together with space code: (732) 342-7600
 
 
Not Relevant
(Former identify or former tackle, if modified since final report)
 
Test the suitable field beneath if the Kind 8-Okay submitting is meant to concurrently fulfill the submitting obligation of the registrant below any of the next provisions (see Normal Instruction A.2. beneath):
 
 
 
 
 
Securities registered pursuant to Part 12(b) of the Act:
 
 
Point out by verify mark whether or not the registrant is an rising progress firm as outlined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Trade Act of 1934 (§240.12b-2 of this chapter).
Rising Development Firm
 
If an rising progress firm, point out by verify mark if the registrant has elected to not use the prolonged transition interval for complying with any new or revised monetary accounting requirements supplied pursuant to Part 13(a) of the Trade Act.

 
 
 
 
On July 26, 2022, Magyar Bancorp, Inc. (the “Firm”) issued a press launch concerning its outcomes of operations and monetary situation at and for the three months and 9 months ended June 30, 2022. The textual content of the press launch is included as Exhibit 99.1 to this report. The knowledge included within the press launch textual content is taken into account to be “furnished” below the Securities Trade Act of 1934. The Firm will embrace monetary statements and extra analyses at and for the three months and 9 months ended June 30, 2022, as a part of its Kind 10-Q for the interval.
 
 
On July 26, 2022, the Firm introduced that its Board of Administrators has authorised a quarterly money dividend of $0.03 per frequent share to shareholders of report on the shut of enterprise on August 4, 2022, payable on August 18, 2022.
 
The textual content of the press launch, dated July 26, 2022, asserting the dividend, and which additionally consists of the Firm’s quarterly earnings announcement, as said above, is included as Exhibit 99.1 to this report and is included herein by reference.
 
 
 
 
 
  
 

 
 
SIGNATURES
 
Pursuant to the necessities of the Securities Trade Act of 1934, the Registrant has duly precipitated this report back to be signed on its behalf by the undersigned, hereunto duly licensed.
 
 
 

 
 
 

 
 
400 Somerset St., New Brunswick, NJ 08901
732.342.7600
 
MAGYAR BANCORP, INC. ANNOUNCES THIRD QUARTER FINANCIAL RESULTS AND DECLARES DIVIDEND.
 
New Brunswick, New Jersey, July 26, 2022 – Magyar Bancorp (NASDAQ: MGYR) (“Firm”), father or mother firm of Magyar Financial institution, reported at present the outcomes of its operations for the three and 9 months ended June 30, 2022.
 
The Firm reported a 27% improve in its internet revenue for the three months ended June 30, 2022, to $2,117,000 in contrast with internet revenue of $1,668,000 for the three months ended June 30, 2021. Web revenue for the 9 months ended June 30, 2022 was $5,489,000 in contrast with internet revenue of $4,510,000 for the 9 months ended June 30, 2021.
 
Primary and diluted earnings per share had been $0.31 for the three months ended June 30, 2022 in comparison with $0.24 for the three months ended June 30, 2021. Primary and diluted earnings per share had been $0.81 for the 9 months ended June 30, 2022 in comparison with $0.64 for the 9 months ended June 30, 2021.
 
The Firm additionally introduced that its Board of Administrators declared a quarterly money dividend of $0.03 per share, which will probably be paid on August 18, 2022 to stockholders of report as of August 4, 2022.
 
“We’re happy to report one other sturdy quarter,” said John Fitzgerald, President and Chief Government Officer of Magyar Bancorp. “Our internet curiosity margin elevated 18 foundation factors through the quarter on a 12 months over 12 months foundation because of prudent administration of our stability sheet. As well as, our return on common belongings has grown to 1.06% for the quarter ending June 30, 2022, a direct reflection of the sustained earnings progress the Financial institution has produced through the fiscal 12 months. As we head into the ultimate quarter of our fiscal 12 months, we count on the constructive earnings momentum to proceed.”
 
 
Outcomes of Operations for the Three Months Ended June 30, 2022
 
Web revenue elevated $449,000, or 26.9%, to $2.1 million through the three month interval ended June 30, 2022 in contrast with the three month interval ended June 30, 2021, on account of greater internet curiosity and dividend revenue in addition to decrease non-interest bills, partially offset by decrease non-interest revenue.
 
The Firm’s internet curiosity and dividend revenue elevated $506,000, or 7.8%, to $7.0 million for the quarter ended June 30, 2022 from $6.5 million for the quarter ended June 30, 2021. The rise was attributable to a $28.4 million improve in common internet interest-earning belongings in addition to an 18 foundation level improve within the Firm’s internet curiosity margin to three.72% for the three months ended June 30, 2022 in comparison with 3.54% for the three months ended June 30, 2021.
 
 
 

Curiosity and dividend revenue elevated $378,000, or 5.3%, to $7.5 million for the three months ended June 30, 2022 from $7.1 million for the three months ended June 30, 2021. The rise was attributable to greater common balances of interest-earning belongings, which elevated $18.4 million, in addition to a ten foundation level improve within the yield on interest-earning belongings. Larger market rates of interest resulted in greater yields on each interest-earning deposits and funding securities. Whereas the common balances of loans receivable had been comparatively flat between durations, the yield on loans receivable elevated by eight foundation factors to 4.57% for the three months ended June 30, 2022 from 4.49% for the three months ended June 30, 2021. The upper mortgage yield for the present interval resulted from the reinvestment of repaid Paycheck Safety Program (“PPP”) loans (incomes 1.0%) into higher-yielding industrial actual property loans in addition to the receipt of $211,000 in curiosity revenue recorded with the payoff of a non-performing mortgage.
 
Curiosity expense decreased $128,000, or 20.0%, to $512,000 for the three months ended June 30, 2022 in contrast with the three months ended June 30, 2021. The price of interest-bearing liabilities decreased 10 foundation factors to 0.42% for the three months ended June 30, 2022 in contrast with 0.52% for the three months ended June 30, 2021 ensuing from decrease interest-bearing legal responsibility prices between durations. As well as, the common stability of noninterest-bearing liabilities elevated $10.1 million, or 4.9%, to $214.1 million.
 
The Firm’s provision for mortgage losses was $205,000 for the three months ended June 30, 2022 in comparison with $246,000 for the three months ended June 30, 2021. The decreased provisions for mortgage losses resulted from decrease particular reserves for non-performing loans, partially offset by greater balances of (non-PPP) loans receivable excellent between durations. There have been no charge-offs or recoveries through the three months ended June 30, 2022 and 2021.
 
Non-interest revenue decreased $45,000, or 6.2%, to $676,000 through the three months ended June 30, 2022 in comparison with $721,000 for the three months ended June 30, 2021. The Firm recorded decrease beneficial properties from the gross sales of SBA loans, which had been $134,000 for the three months ended June 30, 2022 in contrast with $380,000 for the three months ended June 30, 2021. Partially offsetting the decline had been greater rate of interest swap charges, which elevated $76,000, greater service fees, which elevated $55,000, and a $67,000 achieve recorded on the sale of an OREO property.
 
Non-interest bills decreased $157,000, or 3.4%, to $4.4 million through the three months ended June 30, 2022 from $4.6 million through the three months ended June 30, 2021. The lower was primarily attributable to skilled charges, which decreased $181,000, or 47.8%, on account of decrease authorized and consulting charges associated to the gathering and foreclosures of non-performing loans. Mortgage servicing bills and FDIC deposit insurance coverage premiums decreased $94,000 and $59,000, respectively, from decrease ranges of non-performing loans and the Firm’s greater capital ranges. Partially offsetting these decreases had been greater compensation and advertising and enterprise improvement bills. Compensation and profit expense elevated $80,000, or 3.1%, on account of annual advantage will increase, fewer open positions inside the Financial institution, and bills for the worker inventory possession plan ensuing from the Firm’s inventory providing in July 2021. Advertising and enterprise improvement bills elevated $77,000, or 116.7%, because the Financial institution is celebrating its 100 12 months anniversary with elevated occasions and promoting, whereas enterprise improvement alternatives elevated because the COVID pandemic restrictions had been lifted.
 
The Firm recorded tax expense of $886,000 on pre-tax revenue of $3.0 million for the three months ended June 30, 2022, in comparison with $676,000 on pre-tax revenue of $2.3 million for the three months ended June 30, 2021. The Firm’s efficient tax charge for the three months ended June 30, 2022 was 29.5% in contrast with 28.8% for the three months ended June 30, 2021.
 
Outcomes of Operations for the 9 Months Ended June 30, 2022
 
Web revenue elevated $979,000, or 21.7%, to $5.5 million through the 9 month interval ended June 30, 2022 in contrast with the nine-month interval ended June 30, 2021, on account of greater internet curiosity and dividend revenue, decrease provisions for mortgage losses and decrease non-interest bills, partially offset by decrease non-interest revenue.
 
 
 

The Firm’s internet curiosity and dividend revenue elevated $898,000, or 4.8%, to $19.8 million for the 9 months ended June 30, 2022 from $18.9 million for the 9 months ended June 30, 2021. The rise was attributable to a $50.2 million improve in common internet interest-earning belongings in addition to a two foundation level improve within the Firm’s internet curiosity margin to three.54% for the 9 months ended June 30, 2022 in comparison with 3.52% for the 9 months ended June 30, 2021.
 
Curiosity and dividend revenue elevated $167,000, or 0.8%, to $21.4 million for the 9 months ended June 30, 2022 from $21.2 million for the 9 months ended June 30, 2021. The rise was attributable to greater common balances of interest-earning belongings, which elevated $29.0 million, partially offset by a 12 foundation level lower within the yield on interest-earning belongings to three.83% for the 9 months ended June 30, 2022. Larger common balances of funding securities and better yields on interest-earning deposits contributed to the rise in curiosity in dividend revenue between durations. In the meantime, a $15.9 million lower within the common balances of loans receivable was partially offset by a seven foundation level improve within the yield on loans receivable to 4.57% for the 9 months ended June 30, 2022 from 4.50% for the 9 months ended June 30, 2021. The upper mortgage yield for the present interval resulted from the reinvestment of repaid Paycheck Safety Program (“PPP”) loans (incomes 1.0%) into higher-yielding industrial actual property loans in addition to $356,000 in curiosity revenue acquired in reference to non-performing loans.
 
Curiosity expense decreased $731,000, or 31.2%, to $1.6 million for the 9 months ended June 30, 2022 in contrast with the 9 months ended June 30, 2021. The price of interest-bearing liabilities decreased 18 foundation factors to 0.44% for the 9 months ended June 30, 2022 in contrast with 0.62% for the 9 months ended June 30, 2021 ensuing from decrease interest-bearing legal responsibility prices between durations. As well as, the common stability of noninterest-bearing liabilities elevated $17.6 million, or 9.4%, to $203.5 million.
 
The Firm’s provision for mortgage losses was $376,000 for the 9 months ended June 30, 2022 in comparison with $1.4 million for the 9 months ended June 30, 2021. The decrease provisions for mortgage losses resulted from decrease changes to the Firm’s historic mortgage losses associated to the COVID-19 pandemic’s anticipated impression on the Firm’s client and enterprise mortgage portfolios. As well as, the Firm recorded $54,000 in internet recoveries through the 9 months ended June 30, 2022 in contrast with $47,000 in internet recoveries through the 9 months ended June 30, 2021.
 
Non-interest revenue decreased $986,000, or 34.2%, to $1.9 million through the 9 months ended June 30, 2022 in comparison with $2.9 million for the 9 months ended June 30, 2021. Charges for different buyer providers had been $0 for the 9 months ended June 30, 2022 in contrast with $777,000 for the 9 months ended June 30, 2021. The charges through the 2021 fiscal interval had been earned from the Small Enterprise Reduction Grant program supplied in response to the COVID pandemic for which the Firm acquired a payment of three.0% of the grants it assisted with processing. As well as, rate of interest swap charges and beneficial properties on the gross sales of belongings decreased $132,000 and $129,000, respectively. Decrease swap charges had been the results of considerably greater market rates of interest whereas the decrease beneficial properties resulted from decrease SBA mortgage sale beneficial properties, which declined by $196,000, partially offset by greater OREO beneficial properties totaling $67,000.
 
Non-interest bills decreased $442,000, or 3.2%, to $13.6 million through the 9 months ended June 30, 2022 from $14.0 million through the 9 months ended June 30, 2021. The lower was primarily attributable to skilled charges, which decreased $526,000, or 38.1%, on account of decrease authorized and consulting charges associated to the gathering and foreclosures of non-performing loans. Mortgage servicing bills and FDIC deposit insurance coverage premiums decreased $208,000 and $209,000, respectively, from decrease ranges of non-performing loans and the Firm’s greater capital ranges. Partially offsetting these decreases had been greater compensation and advertising and enterprise improvement bills. Compensation and profit expense elevated $305,000, or 3.9%, on account of annual advantage will increase, fewer open positions inside the Financial institution, and bills for the worker inventory possession plan ensuing from the Firm’s inventory providing in July 2021. Advertising and enterprise improvement bills elevated $182,000, or 106.4%, because the Financial institution is celebrating its 100 12 months anniversary with elevated occasions and promoting, whereas enterprise improvement alternatives elevated because the COVID pandemic restrictions had been lifted.
 
 
 

The Firm recorded tax expense of $2.2 million on pre-tax revenue of $7.7 million for the 9 months ended June 30, 2022, in comparison with $1.9 million on pre-tax revenue of $6.4 million for the 9 months ended June 30, 2021. The Firm’s efficient tax charge for the 9 months ended June 30, 2022 was 29.1% in contrast with 29.6% for the 9 months ended June 30, 2021.
 
 
Steadiness Sheet Comparability
 
Complete belongings elevated $16.7 million, or 2.2%, to $790.7 million at June 30, 2022 in comparison with $774.0 million at September 30, 2021. The rise was attributable to greater balances of loans receivable, internet of allowance for mortgage losses, and funding securities, partially offset by decrease balances of interest-earning deposits with banks.
 
Money and interest-earning deposits with banks decreased $48.9 million, or 65.0% to $26.3 million at June 30, 2022 from $75.2 million at September 30, 2021. Curiosity bearing deposits with banks had been used to fund mortgage originations and funding safety purchases through the 9 months ended June 30, 2022.
 
At June 30, 2022, funding securities totaled $101.3 million, reflecting a rise of $30.7 million, or 43.5%, from September 30, 2021. The Firm bought 9 mortgage-backed securities totaling $20.7 million, seven callable U.S. government-sponsored enterprise bonds totaling $12.3 million, three municipal bonds totaling $1.5 million, and one company notice totaling $5.0 million through the 9 months ended June 30, 2022. Repayments of mortgage-backed securities and bond calls totaled $7.4 million. There have been no gross sales of funding securities through the interval.
 
Funding securities at June 30, 2022 consisted of $64.7 million in mortgage-backed securities issued by U.S. authorities businesses and U.S. government-sponsored enterprises, $24.8 million in U.S. government-sponsored enterprise debt securities, $8.0 million in company notes, $3.5 million in municipal bonds and $229,000 in “private-label” mortgage-backed securities. Accessible-for-sale funding securities had a price of $11.5 million and a market worth of $10.1 million reflecting an unrealized lack of $1.5 million at June 30, 2022. The unrealized loss on securities available-for-sale displays greater market rates of interest, which adversely impacts the market value of the securities. There have been no other-than-temporary-impairment fees for the Firm’s funding securities for the 9 months ended June 30, 2022.
 
Complete loans receivable elevated $31.2 million, or 5.2%, through the 9 months ended June 30, 2022 to $625.8 million at June 30, 2022 and had been comprised of $335.4 million (53.6%) in industrial actual property loans, $208.0 million (33.2%) in one- to four- household residential mortgage loans, $40.6 million (6.5%) in industrial enterprise loans, $23.1 million (3.7%) in development loans, $15.6 million (2.5%) in residence fairness strains of credit score, and $3.1 million (0.5%) in different loans. Included with the industrial enterprise loans had been $370,000 in PPP loans. The rise in whole loans receivable through the 9 months ended June 30, 2022 occurred in industrial actual property loans, which elevated $54.5 million, or 19.4%, in one- to four- household residential mortgage loans, which elevated $5.0 million, or 2.5%, and in development loans, which elevated $2.8 million, or 13.8%. Partially offsetting these will increase had been decreases in industrial enterprise loans, which decreased $28.1 million (PPP loans decreased $24.8 million), residence fairness strains of credit score, which decreased $2.4 million, development loans, which decreased $3.6 million, and different loans, which decreased $653,000.
 
 
 

Complete non-performing loans decreased $3.6 million, or 43.9%, to $4.6 million at June 30, 2022 from $8.2 million at September 30, 2021. The lower was attributable to 4 loans totaling $1.5 million paid present by the debtors and the total reimbursement of three loans totaling $2.1 million through the 9 months ended June 30, 2022. The ratio of non-performing loans to whole loans decreased to 0.73% at June 30, 2022 from 1.37% at September 30, 2021.
 
The allowance for mortgage losses elevated $430,000 through the 9 months ended June 30, 2022 to $8.5 million. The allowance for mortgage losses as a proportion of non-performing loans elevated to 185.7% at June 30, 2022 from 99.0% at September 30, 2021. Our allowance for mortgage losses as a proportion of whole loans was 1.36% at June 30, 2022 and September 30, 2021. Future will increase within the allowance for mortgage losses could also be obligatory based mostly on the expansion of the mortgage portfolio, the change in composition of the mortgage portfolio, potential future will increase in non-performing loans and charge-offs, and the potential deterioration of the present financial atmosphere.
 
OREO decreased $355,000, or 55.8%, to $281,000 through the 9 months ended June 30, 2022. The Firm bought one property totaling $368,000 for a $67,000 achieve. The remaining OREO property was below contract of sale at June 30, 2022.
 
Complete deposits elevated $20.0 million, or 3.1%, to $659.8 million through the 9 months ended June 30, 2022 from $639.8 million at September 30, 2021. Curiosity-bearing checking accounts (NOW) elevated $26.9 million, or 37.7%, to $98.2 million, cash market accounts, elevated $18.9 million, or 10.0%, to $206.8 million and financial savings accounts elevated $5.4 million, or 6.6%, to $87.1 million. These will increase had been partially offset by certificates of deposit (together with particular person retirement accounts), which decreased $29.0 million, or 24.8%, to $87.9 million and non-interest bearing checking accounts, which decreased $2.2 million, or 1.1%, to $179.8 million.
 
Borrowings decreased $8.1 million, or 34.6%, to $15.3 million at June 30, 2022 from $23.4 million at September 30, 2021. The Firm repaid matured time period borrowings from the Federal Dwelling Mortgage Financial institution of New York from interest-earning deposits with banks through the 9 months ended June 30, 2022.
 
The Firm’s e-book worth per share elevated to $14.23 at June 30, 2022 from $13.76 at September 30, 2021. The rise was because of the Firm’s internet revenue through the 9 months ended June 30, 2022, partially offset by dividends totaling $0.18 per share paid through the 9 months ended June 30, 2022.
 
 
About Magyar Bancorp
Magyar Bancorp is the father or mother firm of Magyar Financial institution, a group financial institution headquartered in New Brunswick, New Jersey. Magyar Financial institution has been serving households and companies in Central New Jersey since 1922 with a whole line of monetary services. Magyar operates seven department places in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison (2). Please go to us on-line at www.magbank.com.
 
 
 
 

Ahead Wanting Statements
This press launch accommodates statements about future occasions that represent forward-looking statements inside the which means of the Part 27A of the Securities Act of 1933 and Part 21E of the Securities Trade Act of 1934. Such forward-looking statements could also be recognized by reference to a future interval or durations, or by way of forward- wanting terminology, equivalent to “could,” “will,” “imagine,” “count on,” or related phrases or variations on these phrases, or the unfavorable of these phrases. Ahead-looking statements are topic to quite a few dangers and uncertainties, together with, however not restricted to, these dangers beforehand disclosed within the Firm’s filings with the SEC, normal financial circumstances, modifications in rates of interest, regulatory issues, competitors, technological developments, retention and recruitment of certified personnel, and market acceptance of the Firm’s pricing, services, and with respect to the loans prolonged by the Financial institution and actual property owned, the next: dangers associated to the financial atmosphere out there areas during which the Financial institution operates, significantly with respect to the actual property market in New Jersey; the danger that the worth of the actual property securing these loans could decline in worth; and the danger that vital expense could also be incurred by the Firm in reference to the decision of non-performing loans. The Firm needs to warning readers to not place undue reliance on any such forward-looking statements, which converse solely as of the date made. The Firm doesn’t undertake and particularly declines any obligation to publicly launch the results of any revisions which may be made to any forward-looking statements to mirror occasions or circumstances after the date of such statements or to mirror the prevalence of anticipated or unanticipated occasions.
 
Contact: John Reissner, 732.214.2083
 
 
 
MAGYAR BANCORP, INC. AND SUBSIDIARY
Chosen Monetary Knowledge
({Dollars} in Hundreds, Besides Per Share Knowledge)
 
 

 
 
 
 
 
 
 
Obtain full entry to all new and archived articles, limitless portfolio monitoring, e-mail alerts, customized newswires and RSS feeds – and extra!

supply