STOCKS TELEGRAPH

Tag: bank

  • Magyar Bancorp, Inc. (MGYR) Stock Continues Downward Trend Following Completion of Conversion of MHC

    Magyar Bancorp, Inc. (MGYR) stock prices were down 5.00% shortly after market trading commenced on July 15th 2021, bringing the price per share down to USD$10.96 early on in the trading day.

    Conversion of MHC

    July 14th 2021 saw the company announce the completion of the conversion of MHC from the mutual holding company to the stock holding company form of organization, with the company having completed its related stock offering. Upon the closing of the conversion, the company ceased to exist, effective from the conversion onwards. July 12th 2021 saw the company announce the results of its stock offering, with 7,098,070 shares of the company’s common stock outstanding as a result of the conversion, excluding the consideration of fractional shares.

    Net Income Reports

    Net income for the quarter ended March 31st 2021 was up 394% as compared to the prior-year quarter. Q2 of fiscal 2021 reported net income in the amount of USD$1.506 million, up from the USD$305,000 reported for the second quarter of the fiscal year 2020. Net income for the six-month period ended March 31st, 2021 was up to USD$2.843 million, as compared to the USD$858,000 reported for the same six-month period over the prior year.

    Contextualizing Income Improvements

    The benefits of the Paycheck Protection Program in conjunction with the company’s effective management of its balance sheet resulted in a 31 basis point year-over-year increase in net interest margin, despite historically low-interest rates. The 394% increase was driven, in part, by fees recognized by MGYR from its participation in the Paycheck Protection Program, as well as its role in the recently concluded Middlesex County Small Business Relief Grant.

    Maintaining Momentum

    In accordance with the company’s strong earnings growth, the company’s book value is up 7% as of the end of Q2 of fiscal 2021, as compared to the prior-year quarter. The company expects to see a continuation of its positive earnings momentum through the year as its income is augmented a second round of the PPP, in addition to additional non-interest income opportunities through the sales of guaranteed portions of SBA loans.

    Future Outlook for MGYR

    With the completion of the recent conversion of MHC, MGYR is poised to capitalize on the expanded scope of growth afforded to it as a result. The company is keen to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value with the effective leveraging of its resources.

  • Howard Bancorp, Inc. (HBMD) Stock Surges Following Announcement of Strategic Merger with FNB

    Howard Bancorp, Inc. (HBMD) stock prices surged by 28.30% shortly after market trading commenced on July 13th, 2021, bringing the price per share up to USD$20.04 early on in the trading day.

    Merger with FNB

    July 13th, 2021 saw the company announce its signing of a definitive merger agreement that would see FNB acquire Howard Bancorp, including its wholly-owned banking subsidiary, Howard Bank. The all-stock transaction will see each share valued at USD$21.96, coming out to a fully diluted market value of roughly USD$418 million, reflecting the company’s closing stock price as of the market closing on July 12th, 2021.

    Details of Merger

    Based out of Baltimore, Howard boasts roughly USD$2.6 billion in total assets, USD$2 billion in total deposits, and USD$1.9 billion in total loans and leases as of March 31st, 2021. The company operates 13 full-service banking offices spread out across Baltimore and the greater Washington, D.C., area. The strategically significant merger is expected to facilitate the continuation of the company’s growth trajectory, as well as consolidating FNB’s historic presence in the Mid-Atlantic Region.

    Scope of Acquisition

    On a pro-forma basis, the proposed merger is expected to result in FB reporting roughly USD$41 billion in total assets, USD$32 billion in deposits, as well as USD$27 billion in total loans. As per the merger agreement, that has been unanimously approved by both companies’ Boards of Directors, shareholders of HBMD will be entitled to receive 1.8 shares of FNB common stock for each already owned share of Howard’s common stock.

    Consolidated Market Presence

    The exchange ratio is fixed, with the transaction expected to qualify as a tax-free exchange for HBMD’s stockholders. Concurrently with the parent company merger, HBMD will also merge with and into FNB’s subsidiary, First National Bank of Pennsylvania. Cumulatively, the combined entity will boast the sixth-largest deposit share in the Baltimore market, consolidating their strong presence in the market. Furthermore, it will present the companies with the opportunity to deliver an unprecedented experience for its customers, communities, and dedicated teams.

    Future Outlook for HBMD

    Armed with the fortuitous pending merger, the company is poised to capitalize on the expanded scope of opportunities it finds at its disposal. HBMD is keen to leverage its additional resources in a bid to facilitate significant and sustained increases in shareholder value over the long term.

  • loanDepot, Inc. (LDI) Stock Trends Higher Following Changes in Executive Leadership

    loanDepot, Inc. (LDI) stock prices were up by a marginal 1.15% shortly after market trading commenced on June 25th 2021, bringing the price per share up to USD$13.14 early on in the trading day.

    Joint Venture

    June 3rd 2021 saw the company announce an innovative new joint venture by the name of Farm Bureau Mortgage. As the second-largest retail mortgage lender in the U.S, LDI is keen to collaborate with Farm Bureau Bank, with its member-base of more than 5 million. The joint venture will see the two finance giants work together to consolidate and expand their cumulative market footprint.

    Farm Bank Bureau

    The federally chartered Savings Bank, Farm Bank Bureau has its HQ in Nevada and offers a myriad of financial products and services, including, but not limited to, checking accounts, quto loans, credit cards, and business services. Having been in operation since 1999, the Bank has come to serve local Farm Bureaus and their members in a total of 45 states.

    Dividend Payout

    May 13th 2021 had seen the company announce a regular cash dividend of USD$0.08 oper share of its Class A common stock and Class D common stock. The dividend will be paid out on July 16th 2021 to investors who were stockholders of record as of the close of July 1st 2021.

    Net Income Reports

    Net income for the first quarter of the fiscal year 2021 was reported at USD$427.9 million, down from the USD$547.2 million reported in the previous quarter. Adjusted net income was down to USD$319.4 million for the quarter, down from USD$375.7 million for the fourth quarter of 2020. These quarter-over-quarter decreases were largely attributable to a decline in gain on sale margins and increases variable expenses arising from higher loan origination volume.

    Solid Liquidity Position

    As of March 31st 2021, the company reported USD$630.5 million in unrestricted cash and cash equivalent, a massive increase from their liquidity position as of December 31st 2020. This drastic increase is largely driven by the issuance of USD$600 million in senior notes, offset by USD$6 million as per the company’s existing operating agreement. AS per the same agreement, the company also dished out profit distributions in the amount of USD$160.3 million.

    Future Outlook for LDI

    Armed with a solid liquidity position and an exciting new joint venture, LDI is poised to continue its trajectory of success. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Broadway Financial Corp. (BYFC) Stock Plummets After Falling Out of Favor with Hedge Funds

    Broadway Financial Corp. (BYFC) Stock Plummets After Falling Out of Favor with Hedge Funds

    Broadway Financial Corp. (BYFC) stock prices were down by a concerning 16.3234% shortly after market trading commenced on June 17th, 2021, bringing the price per share down to USD$2.8199 early on in the trading day.

    Merger with CFBanc Financial

    The company completed its merger with CFBanc Financial Corp., with Broadway Financial Corp. continuing on as the sole surviving entity. Immediately after the execution of the merger, Broadway Bank merged with and into City First Bank of D.C., with the latter surviving as a surviving entity which concurrently changed its name to City First Bank, National Association.

    Private Placement

    Subsequent to the merger, the company completed the sale of 18,474,000 shares of its common stock in private placements with both institutional and accredited investors. The private placements saw the generation of USD$32.9 million in gross proceeds. The combination of the merger and the completion of the private placement has seen a significant increase in the company’s total equity capitalization and growth potential, as well as facilitating increased lending to communities that report low-to-moderate incomes.

    Consolidated Net Loss

    The first quarter of the fiscal year 2021 saw the company report a consolidated net loss of USD$3.5 million, representing a consolidated net loss of USD$0.13 per share. This significant year-over-year increase in net loss is primarily driven by merger related expenses amounting to USD$5.4 million. Of this total, USD$3.4 million were severance and other compensation costs, USD$1.8 million were professional service expenses, and USD$213,000 in costs arising from insurance deals.

    Total Assets

    As of March 31st, 2021, BYFC reported total assets in the amount of USD$479.6 million, a USD$3.8 million decrease from the USD$483.4 million reported as of December 31st, 2020. This year-over-year difference is largely attributable to decreases in cash and cash equivalents, amounting to USD$8 million, and investment securities available-for-sale of USD$675,000. These developments were offset by increases in loans receivable held for investment of USD$2.4 million, deferred tax assets of USD$1.5 million, and USD$1.2 million of other assets.

    Future Outlook for BYFC

    Armed with a solid liquidity position, BYFC is poised to return to its trajectory of success. The company is keen to reverse recent downwards trends in its equity value with the effective allocation of resources. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.