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Magyar Bancorp Financial Report: Q4 and Full Year Results

Date: October 30, 2025
Location: New Brunswick, New Jersey

Magyar Bancorp, the parent company of Magyar Bank, recently declared its financial results for the fourth quarter and the fiscal year ending September 30, 2025. The report indicated a net income of $2.5 million for the latest quarter, matching the amount reported for the same quarter the previous year. However, the total net income for the entire fiscal year saw a notable rise to $9.8 million, an increase from $7.8 million in 2024.

Earnings Per Share Performance

The earnings per share also demonstrated a positive trend, with basic earnings at $0.41 and diluted earnings at $0.40 for Q4 2025, remaining consistent with the previous year. Over the fiscal year, it climbed to $1.57 for basic earnings and $1.56 for diluted earnings, compared to $1.23 in the previous fiscal year. With this performance, the company’s Board of Directors has declared a quarterly cash dividend of $0.08 per share, set for payment on November 25, 2025 for shareholders of record by November 13, 2025.

Management Insights

John Fitzgerald, the President and CEO of Magyar Bancorp, expressed pride in announcing record earnings for the bank. He attributed this success to a 20 basis point increase in the net interest margin compared to the prior year, prudent management of the balance sheet, and a 10% growth in the loan portfolio, contributing to a 25% increase in net income year over year. The market's response to these successes is evident with Magyar's stock price appreciating 40% from September 30, 2024, to September 30, 2025.

Detailed Operational Results

In the most recent quarter, net income decreased marginally by $17,000, or 0.7%, compared to the same period last year, mainly due to lower gains from the sale of real estate and higher provisions for credit losses. However, an increase in net interest income and lower tax expenses contributed positively as well. Notably, net interest and dividend income surged $1.4 million, or 19.6%, amounting to $8.4 million for the three months ended September 30, 2025, compared to $7.0 million the previous year. The company’s net interest margin catapulted by 39 basis points, reaching 3.47%, reaffirming the profitable management of interest-earning assets.

The growth in interest income was also reflected in a $1.5 million increase for total interest and dividend income, totaling $14.3 million, with significant enhancement in the average balance of interest-earning assets, now at $958.8 million. The yield on these assets improved to 5.91% compared to 5.60% the previous year.

Provisions and Non-Interest Income

The company reported $229,000 in provisions for credit losses for Q4 2025, contrasting with a recovery from the prior year. A robust growth in the company’s commercial real estate loans justified this provision. On the whole, for the fiscal year, total provisions for credit loss were $402,000, compared to $90,000 in 2024.

Different sectors affecting non-interest income showed fluctuations, such as a significant drop in financial gains from real estate sales and a modest increase of 2.8% in total non-interest income during the year. Conversely, non-interest expenses saw a slight rise, mainly driven by higher compensation costs, underscoring the inflationary pressures in operational costs.

Balance Sheet Strength

In terms of overall financial health, total assets rose by $10.2 million, reaching $997.7 million from the previous quarter. For the entire year, total assets increased $45.7 million fueled by a notable uptick in loan receivables driven by commercial real estate.

Conversely, total deposits marginally decreased by $5.7 million in the recent quarter yet reflected a $17.6 million increase for the fiscal year, showcasing a resilient banking operation amidst fluctuating market conditions.

Conclusion

Magyar Bancorp continues to demonstrate strong financial performance and robust management practices, reinforcing its position as a leading community bank. With stable growth and strategic expansion, it maintains a favorable outlook for future fiscal endeavors. For further information, please visit Magyar Bank’s official website.

In conclusion, Magyar Bancorp's proactive approach towards growth in loan portfolios and careful financial management has resulted in commendable earnings and a strong market presence.