STOCKS TELEGRAPH

Tag: financial institution

  • 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.