#United States #Magyar Bancorp #MGYR #New Brunswick #Magyar Bank

Magyar Bancorp Reports First Quarter Financial Results

Magyar Bancorp, Inc. (NASDAQ: MGYR), the parent company of Magyar Bank, has recently revealed its financial results for the three-month period that ended on December 31, 2025. The company has achieved an outstanding 50% increase in net income, reaching $3.1 million compared to $2.1 million during the same period last year.

Earnings Growth and Dividend Declaration

In terms of earnings per share, both basic and diluted figures stand at $0.51 and $0.50 respectively, up from $0.34 in the prior year. Additionally, the Board of Directors has declared a quarterly cash dividend of $0.10 per share, set to be distributed on February 26, 2026, to shareholders on record as of February 12, 2026.

John Fitzgerald, the President and CEO of Magyar Bancorp, expressed his satisfaction with the company’s strong earnings in the first quarter of the new fiscal year. He emphasized their commitment to prudent lending and responsible deposit growth, which, in conjunction with a more normalized yield curve, contributed positively to the shareholders' returns. This commitment is reflected in the increase of their net interest margin, which rose by 37 basis points to 3.59%. This growth can be attributed to the Federal Reserve's rate cuts and repricing of commercial term loans, a trend that is expected to persist in the upcoming year.

Analysis of Financial Operations

The net income surge results from an increase in net interest income, a decrease in credit loss provisions, and lower other expenses, albeit slightly counterbalanced by a dip in other income. The company's net interest income rose by 19% to $8.9 million due to a significant uptick in interest-earning assets. Meanwhile, interest and dividend income also saw a climb, increasing from $12.9 million to $14.6 million.

Furthermore, the average balance of interest-bearing liabilities showed a rise by $53.2 million, bringing the total to $763.4 million. Notably, the costs linked to loans decreased by nine basis points to 2.96%, attributed to reduced short-term market rates.

The provision for credit losses experienced a significant decrease of 78.2%, down to $23,000, indicating a positive shift in the company's financial health compared to the previous year.

Balance Sheet Highlights

In terms of the balance sheet, total assets have grown by 4.8% to $1.045 billion, driven primarily by larger interest-earning deposits and loans receivable. Cash and cash equivalents saw a remarkable 381% increase, amounting to $34.1 million. This increase stemmed largely from heightened deposits over the quarter.

Moreover, total loans receivable also experienced growth, rising by $18.9 million or 2.2% to reach $877.8 million, primarily concentrated in commercial real estate loans. Notably, the proportion of non-performing loans has proactively decreased, enhancing the overall asset quality of the bank.

In terms of deposits, the bank observed a noteworthy increase of 5.5%, accumulating to $859.1 million, as various account categories, including certificates of deposits and non-interest-bearing checking accounts, demonstrated promising growth.

Summary and Future Outlook

Overall, Magyar Bancorp's strong financial performance in the first quarter reflects the robust execution of its banking strategies and solid risk management practices. With favorable market conditions and improved operational efficiency, the bank appears well-positioned to maintain its growth trajectory and continue rewarding its shareholders in the forthcoming quarters.

For more detailed updates, visit Magyar Bank's official site.