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Magyar Bancorp Announces Fiscal Year 2026 Financial Results

Magyar Bancorp, Inc. (NASDAQ: MGYR), the holding company for Magyar Bank, announced its financial results for the fiscal fourth quarter and for the year ended September 30, 2026. With a notable increase in both net income and dividends, the company is setting a strong precedent for the future.

Financial Highlights

For the three months ending on September 30, 2026, Magyar Bancorp reported a 31% increase in net income, totaling $3.3 million compared to $2.5 million during the same period in 2025. Similarly, the total net income for the fiscal year surged by 29%, rising to $12.6 million from $9.8 million in the previous year. This impressive growth reflects both a strong business strategy and effective operational management.

The company's basic and diluted earnings per share reached $0.53 and $0.52, respectively, for the fourth quarter, up from $0.41 and $0.40 for the same period in 2025. For the full fiscal year, the earnings per share were documented at $2.02 and $1.99, compared to $1.57 and $1.56 in 2025.

Quarterly Dividend Declaration

In a significant move, the Board of Directors declared a quarterly cash dividend of $0.12 per share, which will be payable on November 24, 2026, for stockholders of record as of November 10, 2026.

John Fitzgerald, the President and Chief Executive Officer, emphasized pride in achieving another year of record earnings. He stated, “Despite a volatile interest rate environment, our business strategy produced a 35 basis points increase in our net interest margin from the prior year, thanks to substantial loan and deposit growth and diligent balance sheet management. Our strong performance has allowed us to increase our quarterly dividend to $0.12 per share, marking the second rise in our dividend this fiscal year.”

Operational Performance

The increase in net income for the quarter was attributed mainly to a higher net interest income. For the fiscal year, net interest and dividend income grew by $5.6 million, equivalent to 17.5%, amounting to $37.5 million compared to $31.9 million the previous year. Higher yields on both loans and deposits, along with the increase in interest-earning assets of $61.6 million, significantly contributed to this growth.

Net interest margin also saw an improvement, increasing by 35 basis points to 3.69% for the fiscal year. The average balance of interest-earning assets stood at $1.016 billion, reflecting a strategic focus on increasing the efficiency of its asset usage.

However, provisions for credit losses did increase, reflecting growth in commercial real estate loans and commitments during the year. Despite this, the ratio of non-performing loans remained low at 0.05%.

Balance Sheet Strength

Magyar Bancorp's total assets reached $1.086 billion, marking an increase of 8.9% from the previous year, largely fueled by an increase in loans and cash balances. Total loans receivable grew by 5.7% to $908.2 million, indicating robust demand for lending services.

The growth in deposits was equally impressive, with total deposits rising by 73 million, or 9%, to reach $887.3 million. This growth is reflective of increased customer trust in the bank’s services.

Looking Ahead

With a solid financial foundation and commitment to enhancing shareholder value, Magyar Bancorp appears well-positioned for continued success. As it heads into 2027, the bank expects to maintain its strong performance, bolstered by effective management strategies and growth initiatives.

Magyar Bank has been a vital financial partner for families and businesses in Central New Jersey since its establishment in 1922, and it remains dedicated to providing an array of financial products and services across its multiple branch locations. For more information about the bank’s offerings, visit Magyar Bank.

In conclusion, the fiscal year 2026 has been a landmark year for Magyar Bancorp, showcasing its resilience in navigating market challenges while rewarding its shareholders with increased dividends. The financial results and outlook highlight a positive trajectory, indicative of the bank's continuous efforts to foster growth and community support.