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Magyar Bancorp Reports Strong Third Quarter Financial Results

Magyar Bancorp, Inc. (NASDAQ: MGYR), the parent company of Magyar Bank, has published its financial results for the third quarter, showing remarkable performance amid ongoing market fluctuations. For the quarter ending June 30, 2026, the company reported a net income of $3.1 million, a notable increase of 25.2% from $2.5 million over the same period last year. This growth extends to their fiscal nine-month results, which show net income of $9.3 million compared to $7.2 million in the previous year, reflecting a 28% increase.

Positive Earnings Outlook

In terms of per-share earnings, basic and diluted earnings per share (EPS) were recorded at $0.50 and $0.49 respectively for the quarter, improving from $0.40 for both measures one year prior. Over the nine-month period, basic EPS reached $1.49, an increase from $1.16 the previous year, reflecting a strong operational performance. These financial results have prompted the Board of Directors to declare a quarterly cash dividend of $0.10 per share, payable on August 20, 2026, to shareholders of record on August 6, 2026.

Factors Behind the Growth

Magyar Bancorp’s President and CEO, John Fitzgerald, stated, "We are pleased to report another strong performance for our fiscal third quarter." Despite challenges like market volatility and inflationary pressures, the Company's net interest margin increased by 30 basis points, which played a significant role in achieving these results. The bank was also honored by Keefe Bruyette & Woods for the third consecutive year, acknowledging its status among high-performing banks demonstrating consistent earnings growth.

Operational Highlights

For the quarter, net interest and dividend income rose by 15.2% to $9.4 million, driven by upsurges in the average balance of interest-earning assets and an increase in net interest margin to 3.65%. Interest income increased by 9% due to a better yield on interest-earning assets. Although interest expenses only marginally increased, the provisions for credit losses were more significant, reflecting various economic factors and loan growth dynamics.

The bank also saw a high demand for loans, particularly in commercial real estate, which, however, was countered by drops in residential and construction loan areas. Total loans receivable did rise by 3.6% to $890 million as of June 30, 2026.

Financial Stability and Asset Growth

The company's total assets grew to over $1 billion, with a marked increase attributed to the growth in loans, investments, and cash equivalents. Stable growth in deposits was also noted, rising significantly to $853.9 million. Interestingly, the bank reported a decrease in non-performing loans to $359,000, reflecting a robust credit quality outlook. The efficient management of expenditures, particularly labor and benefits, contributed to the positive financial picture.

Conclusion: A Robust Future Ahead

In summary, Magyar Bancorp's financial report showcases its resilience and ability to thrive amidst economic challenges. The Company appears well-poised for continued progress, backed by a solid strategy and commitment to growth as it approaches the final quarter of its fiscal year. With an experienced leadership team and a focus on community engagement, Magyar Bank remains a key player in the financial landscape of Central New Jersey. Investors and stakeholders can look forward to its ongoing success and strategic initiatives.