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Magyar Bancorp Reports Strong Q3 Results

On July 24, 2025, Magyar Bancorp, Inc. (NASDAQ: MGYR), the parent organization of Magyar Bank, revealed its financial outcomes for the third quarter and the first nine months of the fiscal year ending June 30, 2025. Reflecting a solid performance, the company announced a considerable 46% increase in net income for the quarter, amounting to $2.5 million, up from $1.7 million during the same period last year. Similarly, year-to-date figures showed a substantial rise, with net income reaching $7.2 million, compared to $5.2 million for the first nine months of 2024.

A highlight of the report was the increase in earnings per share, which rose to $0.40 for the recent quarter, a significant improvement from $0.27 a year prior. Furthermore, the nine-month earnings per share figure also improved to $1.16 from $0.82 compared to the prior year. These results were attributed to factors such as robust loan growth and effective balance sheet management, demonstrating the strength of Magyar Bancorp's community banking strategy.

John Fitzgerald, President and CEO of Magyar Bancorp, expressed his pride in the company's performance, citing a solid 46% increase in net income and an expanded net interest margin in the current quarter. He noted that despite facing market volatility, the company’s stock price appreciated over 17%, and Magyar Bancorp earned a spot on Keefe Bruyette & Woods' esteemed 2025 Honor Roll of high-performing banks.

Financial Highlights for Q3 2025

The financial metrics for the three months ended June 30, 2025, displayed strong growth:

• - Net Interest Income: Increased by $1.4 million, or 20.5%, totaling $8.2 million.
• - Provision for Credit Losses: The company recorded a provision of $101,000, showing a conservative approach to loan performance risks.
• - Other Income: Expanded by 55.5% to $636,000, mainly due to improved performance in bank-owned life insurance and service fees.

Total income for the quarter reached $14.0 million, representing a robust increase of 13.5% year-over-year, driven by a higher yield on interest-earning assets as well as increased balances of loans receivable. The effective management of expenses also played a critical role, as overall expenses increased by a modest 3.6% to $5.2 million, despite climbing costs associated with compensation and benefits.

Financial Results for Nine Months Ended June 30, 2025

Looking at the performance over the first three quarters of the fiscal year, the trend of growth continued:

• - Net Income: Up by 38.1% compared to last year, reaching $7.2 million.
• - Interest Income: Gained $4.6 million or 12.9% to total $40.4 million.
• - Non-performing Loans: Increased slightly to $920,000 from $232,000 earlier, which prompted an increase in the allowance for credit losses.

The financial robustness was marked by a significant increase in total assets, totaling $987.5 million, influenced by a rise in loans receivable. The net interest margin also showed improvement, increasing to 3.30% from 3.16%, largely due to an increase in the average balance of interest-earning assets.

Dividend Declaration

In light of these positive results, Magyar Bancorp’s Board of Directors has declared a quarterly cash dividend of $0.08 per share, set to be distributed on August 21, 2025, to shareholders on record as of August 7, 2025.

As we move toward the final quarter of the fiscal year, Magyar Bancorp appears well-positioned for continued success, and stakeholders can remain optimistic about the company's strategic direction and market engagement. With a comprehensive range of financial products and services offered through its branches across Central New Jersey, Magyar Bank continues to fortify its commitment to serving local communities effectively.

For more information, visit Magyar Bank's website.