NEW BRUNSWICK, N.J. - Magyar Bancorp (NASDAQ:MGYR), the parent company of Magyar Bank, disclosed its financial results for the fourth quarter and the fiscal year ending September 30, 2024. The company reported a net income of $2.5 million for the quarter, up from $2.2 million in the same period last year. For the fiscal year, net income rose slightly to $7.8 million from $7.7 million.
Earnings per share for the quarter and fiscal year were $0.41 and $1.23, respectively, compared to $0.34 and $1.20 for the same periods the previous year. The Board of Directors also declared a quarterly cash dividend of $0.05 per share, payable on November 27, 2024, to shareholders of record as of November 14, 2024.
John Fitzgerald, President and CEO, commented on the financial outcomes amidst an industry-wide challenging environment due to the prolonged inversion of the yield curve. He attributed the bank's performance to careful management of regulatory lending ratios and a 12% annual increase in the loan portfolio. The bank's net-interest margin saw a slight increase from 3.02% on June 30, 2024, to 3.08% on September 30, 2024.
Fitzgerald also highlighted gains from other real estate owned due to the bank's efforts in securing collateral for previously non-performing loans. Additionally, he announced the opening of a new branch in Martinsville, which is expected to contribute to the generation of loans and deposits, complementing the bank's digital offerings.
Magyar Bancorp, established in 1922, operates seven branches in Central New Jersey and offers a range of financial products and services. The company's forward-looking statements in the press release are subject to numerous risks and uncertainties, as detailed in its filings with the SEC.
This financial update is based on a press release statement from Magyar Bancorp.
InvestingPro Insights
Magyar Bancorp's recent financial results align with several key metrics and insights from InvestingPro. The company's profitable status over the last twelve months, as highlighted by InvestingPro, is reflected in the reported net income increase for both the fourth quarter and fiscal year 2024.
InvestingPro data shows that Magyar Bancorp has a P/E ratio of 10.61, indicating that the stock is trading at a relatively modest valuation compared to its earnings. This could be attractive to value-oriented investors, especially considering the company's consistent profitability and dividend payments.
The company's dividend yield of 2.19% and impressive dividend growth of 125% over the last twelve months underscore Magyar Bancorp's commitment to returning value to shareholders. This is particularly noteworthy given the challenging industry environment mentioned by CEO John Fitzgerald.
InvestingPro Tips suggest that Magyar Bancorp's stock generally trades with low price volatility, which may appeal to risk-averse investors seeking stability. Additionally, the stock is trading near its 52-week high, reflecting investor confidence in the company's performance and outlook.
It's worth noting that InvestingPro has identified several more tips that could provide deeper insights into Magyar Bancorp's financial health and market position. Investors interested in a more comprehensive analysis may find value in exploring the full range of tips available through the InvestingPro product.
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