MAGYAR BANCORP, INC. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND DECLARES DIVIDEND

Rhea-AI Summary

Magyar Bancorp (NASDAQ: MGYR) reported fiscal first quarter results for the three months ended December 31, 2025, with net income of $3.1 million, up 50% year-over-year and basic EPS $0.51. The Board declared a $0.10 per share quarterly cash dividend payable Feb 26, 2026 to holders of record Feb 12, 2026.

Net interest income rose 19% to $8.9 million, driven by a 37-basis-point increase in net interest margin to 3.59% and higher average interest-earning assets. Total deposits increased 5.5% to $859.1 million and total assets rose to $1.045 billion.

Positive

• Net income +50.4% to $3.1 million quarter-over-quarter
• Basic EPS $0.51 for the quarter
• Net interest income +19.0% to $8.9 million
• Net interest margin increased by 37 bps to 3.59%
• Total deposits +5.5% to $859.1 million
• Non-performing loans ratio improved to 0.04%

Negative

• Other income decreased 16.6% (loss of $224k prior-year OREO gains)
• Income tax expense increased ~36.6% to $1.1 million

News Market Reaction – MGYR

+0.20% 2.0x vol

1 alert

+0.20% Session close to close

$116.87M Market Cap

2.0x Rel. Volume

In the Jan 30 session, MGYR gained 0.20%, reflecting a mild positive market reaction. Trading volume was above average at 2.0x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights robust first-quarter performance, with net income rising to $3.1 millio...

Analysis

This announcement highlights robust first-quarter performance, with net income rising to $3.1 million, EPS improving to up to $0.51, and net interest margin expanding to 3.59%. The quarterly dividend increased to $0.10 per share, while assets reached $1.045 billion and non-performing loans remained low at 0.04% of total loans. Investors monitoring this story may focus on continued loan growth, credit quality trends, and the bank’s ability to sustain margin gains amid changing rate conditions.

Key Figures

Q1 2026 net income: $3.1 million Q1 2026 EPS: $0.51 basic / $0.50 diluted Quarterly dividend: $0.10 per share +5 more

8 metrics

Q1 2026 net income $3.1 million Three months ended December 31, 2025 vs $2.1M prior-year quarter

Q1 2026 EPS $0.51 basic / $0.50 diluted Vs $0.34 basic and diluted for three months ended December 31, 2024

Quarterly dividend $0.10 per share Payable February 26, 2026 to holders of record February 12, 2026

Net interest & dividend income $8.9 million Quarter ended December 31, 2025 vs $7.4M in prior-year quarter

Net interest margin 3.59% Up 37 basis points from 3.22% for quarter ended December 31, 2024

Total assets $1.045 billion At December 31, 2025 vs $997.7 million at September 30, 2025

Total loans receivable $877.8 million At December 31, 2025 vs $858.9 million at September 30, 2025

Non-performing loans ratio 0.04% Non-performing loans to total loans at December 31, 2025

Previous Dividends,earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Oct 30	Q4 & FY earnings	Positive	+0.1%	Q4 and FY2025 results with higher net income and raised dividend.
Jul 24	Q3 earnings	Positive	+2.7%	Q3 2025 net income up 46% and dividend increased to $0.08.
Apr 30	Q2 earnings	Positive	+2.4%	Q2 2025 net income up 41% with higher EPS and margin.
Jan 23	Q1 earnings	Positive	+1.9%	Q1 2025 net income up 26% and deposits above $848M.
Oct 31	Q4 & FY earnings	Positive	-0.8%	FY2024 earnings growth with loan portfolio up 12% and dividend.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across the last 5 earnings/dividend releases, MGYR typically saw modest positive moves, with 4 positive reactions and 1 negative despite consistently strong fundamentals.

Recent Company History

Over the past year, Magyar Bancorp reported multiple quarters of strong earnings growth, rising net income, and expanding net interest margin. Prior releases highlighted dividend increases from $0.05 to $0.08 per share and steady loan and asset growth above $1 billion. Non-performing loans remained low, while book value per share trended higher. This announcement continues that pattern with higher net income, EPS, and a higher dividend, building on momentum seen in prior quarters.

Key Terms

net interest margin, basis points, other real estate owned, mortgage-backed securities, +4 more

8 terms

net interest margin financial

""Our net interest margin has increased by 37 basis points to 3.59%...""

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

""net interest margin has increased by 37 basis points to 3.59%...""

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

other real estate owned financial

"There were no gains from the sales of other real estate owned..."

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

mortgage-backed securities financial

"purchased two floating-rate mortgage-backed securities issued by U.S government agencies..."

A mortgage-backed security is an investment made by pooling many home loans and selling the right to the borrowers’ monthly payments to investors, so you receive a stream of principal and interest much like collecting payments on a bundle of IOUs. It matters to investors because it provides regular income but carries risks from homeowners missing payments or paying off loans early, and its value moves with interest rates and housing market conditions.

non-performing loans financial

"Total non-performing loans decreased $90 thousand, or 20.0%, to $361 thousand..."

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

allowance for credit losses financial

"The allowance for credit losses increased $73 thousand to $8.4 million..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

certificates of deposit financial

"occurred in certificates of deposit (including individual retirement accounts)..."

A certificate of deposit (CD) is a bank product where you deposit money for a fixed period in exchange for a guaranteed interest rate; think of it as lending your savings to a bank for a set time in return for a promised return. It matters to investors as a low-risk, predictable place to park cash, earn higher interest than a checking account, and compare returns against other options — but withdrawing early usually incurs a penalty and government insurance typically covers balances up to set limits.

SBA loans financial

"higher gains from the sale of SBA loans, which increased by $22 thousand."

SBA loans are small-business loans that carry a guarantee from the U.S. Small Business Administration, meaning the government promises to cover part of the lender’s loss if the borrower can’t repay. For investors, these loans matter because they make credit more available and less risky for small companies, which can support business growth and local economic activity—similar to a safety net that encourages banks to lend where they might otherwise be cautious.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW BRUNSWICK, N.J., Jan. 29, 2026 /PRNewswire/ -- Magyar Bancorp (NASDAQ: MGYR) ("Company"), parent company of Magyar Bank, reported today the results of its operations for the three months ended December 31, 2025.

The Company reported a 50% increase in net income for the three months ended December 31, 2025 to $3.1 million from $2.1 million for the three months ended December 31, 2024.

Basic and diluted earnings per share were $0.51 and $0.50, respectively, for the three months ended December 31, 2025 compared to $0.34 for basic and diluted earnings per share for the three months ended December 31, 2024.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share, which will be paid on February 26, 2026 to stockholders of record as of February 12, 2026.

"We are very pleased to report strong earnings for the first quarter of our new fiscal year," stated John Fitzgerald, President and Chief Executive Officer of Magyar Bancorp. "Our commitment to growing the Company's balance sheet with prudent lending and responsible deposit growth, combined with further normalization of the yield curve during the most recent quarter, produced favorable results for our shareholders."

"Our net interest margin has increased by 37 basis points to 3.59% for the quarter ended December 31, 2025 from the quarter ended December 31, 2024 resulting from the Federal Reserve's rate cuts and   commercial term loans repricing higher, a trend that we expect will continue throughout the coming year."

Results of Operations
Net income increased $1.1 million, or 50.4%, to $3.1 million during the three months ended December 31, 2025 compared with $2.1 million during the three months ended December 31, 2024, from higher net interest income, lower provisions for credit losses and lower other expenses, partially offset by lower other income.

The Company's net interest and dividend income increased by $1.5 million, or 19.0%, to $8.9 million for the quarter ended December 31, 2025 from $7.4 million for the quarter ended December 31, 2024. The increase was attributable to a $62.3 million increase in the average balance of interest-earning assets between periods, as well as a 37 basis point increase in the Company's net interest margin to 3.59% for the three months ended December 31, 2025 from 3.22% for the three months ended December 31, 2024.

Interest and dividend income increased $1.7 million, or 12.8%, to $14.6 million for the three months ended December 31, 2025 compared with $12.9 million for the three months ended December 31, 2024. The increase was attributable to a 31-basis point increase in the yield on interest-earning assets to 5.90% for the three months ended December 31, 2025 from 5.59% for the three months ended December 31, 2024 as well as a $70.3 million, or 8.9%, increase in the average balance of loans receivable, net. The increase in yield on the Company's assets was attributable to higher market interest rates on loans and investments between periods.

Interest expense increased $238 thousand, or 4.4%, to $5.7 million for the three months ended December 31, 2025 from $5.5 million for the three months ended December 31, 2024. The average balance of interest-bearing liabilities increased $53.2 million, or 7.5%, to $763.4 million while the cost of interest-bearing liabilities decreased by nine basis points to 2.96% for the three months ended December 31, 2025 compared with 3.05% for the three months ended December 31, 2024, resulting primarily from lower short-term market interest rates.

The Company's provision for credit losses decreased $79 thousand, or 78.2%, to $23 thousand for the three months ended December 31, 2025 compared to $101 thousand for the three months ended December 31, 2024. Provisions for on-balance sheet credit losses were $71 thousand from growth in total loans receivable during the quarter, while $49 thousand was recovered from its reserves for off-balance sheet credit losses from contraction in unfunded loan commitments during the quarter. The Company recorded $2 thousand in net recoveries during the three months ended December 31, 2025 compared with $103 thousand in net recoveries during the three months ended December 31, 2024.

Other income decreased $159 thousand, or 16.6%, to $797 thousand during the three months ended December 31, 2025 compared to $956 thousand for the three months ended December 31, 2024. There were no gains from the sales of other real estate owned during the three months ended December 31, 2025 compared with $224 thousand for the prior year period. Offsetting this decline were higher interest rate swap fees, which increased by $31 thousand, and higher gains from the sale of SBA loans, which increased by $22 thousand.   

Other expenses decreased by $54 thousand, or 1.0%, to $5.4 million during the three months ended December 31, 2025. The decrease was primarily attributable to lower occupancy expenses, which declined by $172 thousand, or 17.4%, to $819 thousand for the three months ended December 31, 2025 compared with $991 thousand for the prior year period, due to lease termination expenses and ongoing savings related to the closure of the Bank's Bridgewater office in October 2024. Offsetting this decrease were higher compensation and benefit expenses, which increased by $88 thousand, or 2.9%, to $3.2 million, due to annual merit increases, and higher data processing expenses, which increased by $66 thousand, or 72.5%, to $157 thousand, due to one-time credits applied during the prior year period.

The Company recorded tax expense of $1.1 million on pre-tax income of $4.3 million for the three months ended December 31, 2025, compared to $805 thousand on pre-tax income of $2.9 million for the three months ended December 31, 2024.

Balance Sheet Comparison
Total assets increased $47.8 million, or 4.8%, to $1.045 billion at December 31, 2025 from $997.7 million at September 30, 2025. The increase was attributable to larger interest-earning deposits with banks, investment securities and loans receivable.

Total cash and cash equivalents increased $27.0 million, or 381.4%, to $34.1 million at December 31, 2025 from $7.1 million at September 30, 2025 resulting from higher deposits, partially offset by higher loans receivable and investments.

At December 31, 2025, investment securities totaled $93.1 million, reflecting an increase of $4.7 million, or 5.3%, from September 30, 2025. The Company purchased two floating-rate mortgage-backed securities issued by U.S government agencies totaling $6.3 million during the quarter. There were no other-than-temporary-impairment charges for the Company's investment securities during the three months ended December 31, 2025.

Total loans receivable increased $18.9 million, or 2.2%, to $877.8 million at December 31, 2025 from $858.9 million at September 30, 2025. The increase in total loans receivable during the quarter ended December 31, 2025 occurred primarily in commercial real estate loans, which increased by $15.7 million, or 2.9%, to $548.9 million, or 62.5% of loans. The Company also grew its construction and land loans, which increased by $5.4 million, or 18.6%, to $34.7 million.  Partially offsetting these increases were one-to four-family residential real estate loans (including home equity lines of credit), which decreased $983 thousand, commercial business loans, which decreased $971 thousand, and other loans, which decreased $280 thousand.

Total non-performing loans decreased $90 thousand, or 20.0%, to $361 thousand at December 31, 2025 from $451 thousand at September 30, 2025. The ratio of non-performing loans to total loans decreased to 0.04% at December 31, 2025 from 0.05% at September 30, 2025.

The Company sold its only other real estate owned ("OREO") property during the quarter, reducing its OREO to zero from $2.2 million at September 30, 2025. The ratio of non-performing assets to total assets decreased to 0.03% at December 31, 2025 from 0.26% at September 30, 2025.

The allowance for credit losses increased $73 thousand to $8.4 million, or 0.96% of total loans receivable, during the three months ended December 31, 2025. Growth in loans receivable during the quarter as well as an increase in specific reserves for individually evaluated loans resulted in additional provisions for credit losses that were largely offset by reductions resulting from lower adjustments to pooled loans for economic and business conditions.

Total deposits increased $44.8 million, or 5.5%, to $859.1 million at December 31, 2025. The inflow in deposits occurred in certificates of deposit (including individual retirement accounts), which increased $26.3 million, or 12.5%, to $236.3, in non-interest bearing checking accounts, which increased by $25.7 million, or 22.0%, to $143.0 million, in money market accounts, which increased $12.3 million, or 4.6%, to $281.2 million, and in savings accounts, which increased $754 thousand, or 1.4%, to $55.2 million.  Partially offsetting these increases was a $20.3 million, or 12.4%, decrease in interest-bearing checking accounts to $143.4 million.

The Company's book value per share increased to $18.79 at December 31, 2025 from $18.34 at September 30, 2025. The increase was due to the Company's results from operations, partially offset by $0.08 in dividends paid and 2,037 shares repurchased during the quarter at an average share price of $16.85.

About Magyar Bancorp
Magyar Bancorp is the parent company of Magyar Bank, a community bank headquartered in New Brunswick, New Jersey. Magyar Bank has been serving families and businesses in Central New Jersey since 1922 with a complete line of financial products and services.  Magyar operates seven branch locations in New Brunswick, North Brunswick, South Brunswick, Branchburg, Martinsville, and Edison (2). Please visit us online at www.magbank.com. 

Forward Looking Statements
This press release contains statements about future events that constitute forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward- looking terminology, such as "may," "will," "believe," "expect," or similar terms or variations on those terms, or the negative of those terms.  Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed in the Company's filings with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company's pricing, products and services, and with respect to the loans extended by the Bank and real estate owned, the following: risks related to the economic environment in the market areas in which the Bank operates, particularly with respect to the real estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and the risk that significant expense may be incurred by the Company in connection with the resolution of non-performing loans. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

MAGYAR BANCORP, INC. AND SUBSIDIARY
Selected Financial Data
(Dollars In Thousands, Except for Per-Share Amounts)
		Three Months Ended
		December 31,
		2025		2024
Income Statement Data:
	Interest and dividend income	$         14,557		$         12,906
	Interest expense	5,700		5,462
	Net interest and dividend income	8,857		7,444
	Provision for credit losses	22		101
	Net interest and dividend income after
	provision for credit losses	8,835		7,343
	Other income	797		956
	Other expense	5,355		5,409
	Income before income tax expense	4,277		2,890
	Income tax expense	1,141		805
	Net income	$           3,136		$           2,085
Per Share Data:
	Net income per share-basic	$             0.51		$             0.34
	Net income per share-diluted	$             0.50		$             0.34
	Book value per share, at period end	$           18.79		$           17.23
Selected Ratios (annualized):
	Return on average assets	1.22 %		0.86 %
	Return on average equity	10.29 %		7.42 %
	Net interest margin	3.59 %		3.22 %

 

		December 31,		September 30,
		2025		2025
		(Dollars in Thousands)
Balance Sheet Data:
	Assets	$         1,045,498		$            997,660
	Loans receivable	876,115		857,353
	Allowance for credit losses- loans	(8,423)		(8,350)
	Investment securities - available for sale, at fair value	26,952		21,182
	Investment securities - held to maturity, at cost	66,189		67,266
	Deposits	859,074		814,307
	Borrowings	49,054		49,054
	Shareholders' Equity	121,748		118,842
Asset Quality Data:
	Non-performing loans	$                   361		$                   451
	Other real estate owned	-		2,167
	Total non-performing assets	$                   361		$                2,618
	Allowance for credit losses to non-performing loans	NM*		NM*
	Allowance for credit losses to total loans receivable	0.96 %		0.97 %
	Non-performing loans to total loans receivable	0.04 %		0.05 %
	Non-performing assets to total assets	0.03 %		0.26 %
	Non-performing assets to total equity	0.30 %		2.20 %
	* Not meaningful

 

View original content:https://www.prnewswire.com/news-releases/magyar-bancorp-inc-announces-first-quarter-financial-results-and-declares-dividend-302674244.html

SOURCE Magyar Bancorp

FAQ

What did Magyar Bancorp (MGYR) report for net income in Q1 2026?

Magyar Bancorp reported net income of $3.1 million for the quarter ended December 31, 2025. According to the company, this represents a 50.4% increase versus the prior-year quarter, driven by higher net interest income and lower provisions for credit losses.

How much dividend did MGYR declare and when will it be paid?

The board declared a $0.10 per share quarterly cash dividend. According to the company, the dividend will be paid on February 26, 2026 to shareholders of record as of February 12, 2026.

Why did MGYR's net interest margin improve in Q1 2026?

MGYR's net interest margin increased to 3.59% for the quarter ended December 31, 2025. According to the company, the improvement resulted from Federal Reserve rate cuts and commercial term loans repricing higher, boosting yields on interest-earning assets.

How did Magyar Bancorp's deposits and assets change in the quarter?

Total deposits rose to $859.1 million, an increase of 5.5%, and total assets increased to $1.045 billion. According to the company, deposit growth was led by CDs and non-interest checking inflows during the quarter.

What drove the decline in MGYR's other income in Q1 2026?

Other income fell 16.6% to $797 thousand for the quarter. According to the company, the decline chiefly reflected the absence of prior-year gains from sales of other real estate owned, partially offset by higher swap fees and SBA loan sale gains.