Magyar Bancorp第三季淨利潤310萬美元按年升25% 每股盈利0.50美元

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 News

 
 

 

400 Somerset St., New Brunswick, NJ 08901

732.342.7600

 

MAGYAR BANCORP, INC. ANNOUNCES THIRD QUARTER FINANCIAL
RESULTS

AND DECLARES DIVIDEND

 

New Brunswick, New Jersey, July 23, 2026 –
Magyar Bancorp (NASDAQ: MGYR) (“Company”), parent company of Magyar Bank, reported today the results of its operations for
the three and nine months ended June 30, 2026.

 

The Company reported a 25% increase in its net income
for the three months ended June 30, 2026, to $3.1 million compared with net income of $2.5 million for the three months ended June 30,
2025. Net income for the nine months ended June 30, 2026 was $9.3 million compared with net income of $7.2 million for the nine months
ended June 30, 2025.

 

Basic and diluted earnings per share were $0.50 and
$0.49, respectively, for the three months ended June 30, 2026 compared with $0.40 and $0.40, respectively, for the three months ended
June 30, 2025. Basic and diluted earnings per share were $1.49 and $1.47, respectively, for the nine months ended June 30, 2026 compared
with $1.16 and $1.16, respectively, for the nine months ended June 30, 2025.

 

The Company also announced that its Board of
Directors approved a quarterly cash dividend of $0.10 per share, which will be paid on August 20, 2026 to stockholders of record
as of August 6, 2026.

 

“We are pleased to report another strong performance
for our fiscal third quarter,” stated John Fitzgerald, President and Chief Executive Officer of Magyar Bancorp. “Despite market
volatility and inflationary pressures, Magyar Bank’s net interest margin increased 30 basis points compared to the June 30, 2025
quarter. This increase helped produce a 25% increase in net income for the quarter ending June 30, 2026, compared to June 30, 2025. In
addition, during the third quarter, Magyar was recognized by Keefe Bruyette & Woods in their 2026 Honor Roll, comprised of elite,
high performing banks with consistent earnings growth over the past decade. This is the third consecutive year Magyar has received this
honor. We believe the Company is well positioned to continue to produce solid results as we head into the final quarter of our fiscal
year.”

 

Results of Operations for the Three Months Ended
June 30, 2026

 

Net income increased by $623 thousand, or 25.2%, to
$3.1 million during the three-month period ended June 30, 2026 compared with $2.5 million during the three-month period ended June 30,
2025, from higher net interest income and other income, partially offset by higher provisions for credit loss, other expenses and income
tax expense.

 

  

  

 

The Company’s net interest and dividend income
increased by $1.2 million, or 15.2%, to $9.4 million for the quarter ended June 30, 2026 from the quarter ended June 30, 2025. The increase
was attributable to a 30-basis point increase in the Company’s net interest margin to 3.65% for the three months ended June 30,
2026 from 3.35% for the three months ended June 30, 2025, as well as a $57.0 million increase in the average balance of interest-earning
assets between the periods.

 

Interest and dividend income increased by $1.3 million,
or 9.0%, to $15.3 million for the three months ended June 30, 2026 compared with $14.0 million for the three months ended June 30, 2025.
The increase was attributable to a 17-basis point increase in the yield on interest-earning assets to 5.91% for the three months ended
June 30, 2026 from 5.74% for the three months ended June 30, 2025, as well as a $51.9 million, or 6.3%, increase in the average balance
of net loans receivable between the periods.

 

Interest expense increased by $23 thousand, or 0.4%,
to $5.8 million for the three months ended June 30, 2026 from the three months ended June 30, 2025. An eight-basis point decrease in the
cost of interest-bearing liabilities to 2.94% for the three months ended June 30, 2026 compared with 3.02% for the three months ended
June 30, 2025 was offset by a $24.3 million, or 3.1%, increase in the average balance of interest-bearing liabilities between the periods.

 

The Company recorded a net provision for credit losses
totaling $351 thousand for the three months ended June 30, 2026 compared with a net provision for credit losses totaling $101 thousand
for the three months ended June 30, 2025. The increase resulted from growth in commercial real estate loans, partially offset by lower
one-to-four family mortgage loans, lower construction loan commitments and improving economic data used to determine the Bank’s
expected credit losses. The Company recorded $295 thousand in net loan charge-offs during the three months ended June 30, 2026 compared
with $3 thousand in net loan recoveries during the three months ended June 30, 2025. During the three months ended June 30, 2026 the Company
recorded a $300 thousand charge-off related to unique circumstances involving one construction loan relationship.

 

Other income increased by $180 thousand, or 28.3%,
to $816 thousand during the three months ended June 30, 2026 compared with $636 thousand for the three months ended June 30, 2025. The
increase was primarily due to higher gains on the sale of SBA loans, partially offset by lower service charge and interest rate swap fee
income.

 

Other expenses increased by $292 thousand, or 5.6%,
to $5.5 million during the three months ended June 30, 2026 compared with $5.2 million for the three months ended June 30, 2025. The increase
was primarily attributable to higher compensation and benefit expense, which increased $255 thousand, or 8.2%, to $3.4 million, due to
higher medical benefits and incentive accruals as well as annual merit increases.

 

The Company recorded tax expense of $1.3 million on
pre-tax income of $4.4 million for the three months ended June 30, 2026, compared with $1.0 million on pre-tax income of $3.5 million
for the three months ended June 30, 2025. The increase in income tax expense was driven by higher pre-tax income. The Company’s
effective tax rate for the three months ended June 30, 2026 was 28.9% compared with 29.0% for the three months ended June 30, 2025.

 

Results of Operations for the Nine Months Ended
June 30, 2026

 

Net income increased by $2.1 million, or 28.0%, to
$9.3 million during the nine months ended June 30, 2026 compared with $7.2 million for the nine months ended June 30, 2025 due to higher
net interest income, partially offset by higher provisions for credit loss, lower other income, higher other expenses and higher income
tax expense.

 

The Company’s net interest and dividend income
increased by $4.0 million, or 17.1%, to $27.5 million for the nine months ended June 30, 2026 from $23.5 million for the nine months ended
June 30, 2025. The increase was attributable to a 33-basis point increase in the Company’s net interest margin to 3.63% for the
nine months ended June 30, 2026 from 3.30% for the nine months ended June 30, 2025 as well as a $58.6 million, or 6.2%, increase in the
average balance of interest-earning assets between the periods.

 

  

  

 

Interest and dividend income increased by $4.4 million,
or 10.8%, to $44.8 million for the nine months ended June 30, 2026 from $40.4 million for the nine months ended June 30, 2025. The increase
was attributable to a 25-basis point increase in the yield on interest-earning assets to 5.92% for the nine months ended June 30, 2026
from 5.67% for the nine months ended June 30, 2025, as well as a $62.5 million, or 7.8%, increase in the average balance of net loans
receivable.

 

Interest expense increased by $335 thousand, or 2.0%,
to $17.3 million for the nine months ended June 30, 2026 from $16.9 million for the nine months ended June 30, 2025. This increase was
attributable to a higher average balance of interest-bearing liabilities, which increased by $38.0 million, or 5.1%, to $784.9 million,
but was partially offset by a nine-basis point decrease in the cost of such liabilities to 2.94% for the nine months ended June 30, 2026
compared with 3.03% for the nine months ended June 30, 2025.

 

The Company’s provision for credit losses totaled
$630 thousand for the nine months ended June 30, 2026 compared with $172 thousand for the nine months ended June 30, 2025. The higher
provision for credit losses resulted from growth in commercial real estate loans, partially offset by lower one-to-four family mortgage
loans, lower construction loan commitments and improving economic data used to determine the Bank’s expected credit losses. The
Company recorded $290 thousand in net loan charge-offs during the nine months ended June 30, 2026 compared with $111 thousand in net loan
recoveries during the nine months ended June 30, 2025.

 

Other income decreased by $411 thousand, or 14.4%,
to $2.4 million during the nine months ended June 30, 2026 compared with $2.9 million for the nine months ended June 30, 2025. The decrease
was primarily due to lower gains from the sale of OREO, as there were no gains during the nine months ended June 30, 2026 compared with
$229 thousand for the prior year period. In addition, the Company recorded lower commercial loan prepayment charges and late charges on
loans.

 

Other expenses increased by $383 thousand, or 2.4%,
to $16.4 million during the nine months ended June 30, 2026 from $16.0 million during the nine months ended June 30, 2025. The increase
was primarily attributable to higher compensation and benefit expense, which increased by $480 thousand, or 5.1%, to $9.9 million, due
to higher medical benefits and incentive accruals as well as annual merit increases. Partially offsetting this increase were lower occupancy
expenses, which decreased by $141 thousand, or 5.3%, to $2.5 million, due to lease termination expenses related to the closure of the
Bank’s Bridgewater office in the prior year period.

 

The Company recorded tax expense of $3.6 million on
pre-tax income of $12.9 million for the nine months ended June 30, 2026, compared with $2.9 million on pre-tax income of $10.1 million
for the nine months ended June 30, 2025. The Company’s effective tax rate for the nine months ended June 30, 2026 was 28.2% compared
with 28.5% for the nine months ended June 30, 2025.

 

Balance Sheet Comparison

 

Total assets increased by $50.8 million, or 5.1%,
to $1.048 billion at June 30, 2026 from $997.7 million at September 30, 2025. The increase was attributable to higher loans receivable,
investment securities and cash and cash equivalents.

 

Cash and interest-earning deposits with banks increased
by $4.4 million, or 61.9% to $11.5 million at June 30, 2026 from $7.1 million at September 30, 2025 resulting from deposit inflows that
exceeded the growth in loans receivable during the nine months ended June 30, 2026. The Company’s cash and deposit balances at June
30, 2026 reflect seasonal deposit outflows from municipal accounts that historically return the following calendar quarter.

 

  

  

 

At June 30, 2026, investment securities totaled $104.3
million, reflecting an increase of $15.9 million, or 17.9%, from September 30, 2025. The increase resulted from purchases of mortgage-backed
securities totaling $21.9 million, partially offset by repayments of mortgage-backed securities totaling $6.0 million during the nine
months ended June 30, 2026. There were no credit losses recorded for the Company’s investment securities during the nine months
ended June 30, 2026 and June 30, 2025.

 

Total loans receivable increased by $31.1 million,
or 3.6%, to $890.0 million at June 30, 2026 from $858.9 million at September 30, 2025. The increase in total loans receivable during the
nine months ended June 30, 2026 occurred in commercial real estate loans, which increased $56.6 million. Partially offsetting this increase
were construction and land loans, which decreased $15.7 million, one-to four-family residential real estate loans (including home equity
lines of credit), which decreased $8.4 million, commercial business loans, which decreased $1.2 million and other loans, which decreased
$195 thousand.

 

Total non-performing loans decreased by $92 thousand
to $359 thousand at June 30, 2026 from $451 thousand at September 30, 2025. The ratio of non-performing loans to total loans decreased
to 0.04% at June 30, 2026 from 0.05% at September 30, 2025. Total non-performing assets decreased by $2.3 million to $359 thousand at
June 30, 2026 from $2.6 million at September 30, 2025. The ratio of non-performing assets to total assets decreased to 0.03% at June 30,
2026 from 0.26% at September 30, 2025.

 

The Company’s allowance for credit losses increased
$340 thousand to $8.9 million, or 1.00% of total loans receivable, during the nine months ended June 30, 2026. Growth in loans receivable
during the nine months ended June 30, 2026 resulted in additional provisions for credit losses totaling $630 thousand and the Company
recorded $290 thousand in net loan charge-offs. The Company’s allowance for on-balance sheet credit losses increased to $8.5 million
at June 30, 2026 from $8.4 million at September 30, 2025 while its reserve for off-balance sheet commitments increased to $402 thousand
at June 30, 2026 from $198 thousand at September 30, 2025.

 

Total deposits increased by $39.6 million, or 4.9%,
to $853.9 million at June 30, 2026. The inflow in deposits occurred in certificates of deposit (including individual retirement accounts),
which increased by $26.3 million, or 12.5%, to $236.2 million, non-interest bearing checking accounts, which increased by $24.3 million,
or 20.7%, to $141.5 million, and savings accounts, which increased by $1.7 million, or 3.1%, to $56.1 million. Partially offsetting these
increases was a $9.7 million, or 5.9%, decrease in interest-bearing checking accounts to $154.1 million and a $3.0 million, or 1.1%, decrease
in money market accounts to $265.9 million.

 

The Company’s book value per share increased
to $19.61 at June 30, 2026 from $18.34 at September 30, 2025. The increase was attributable to the Company’s results from operations,
partially offset by $0.28 in dividends paid and 25,825 shares repurchased during the nine months ended June 30, 2026 at an average price
per share of $17.55.

 

 

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, Bridgewater, 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, the imposition of tariffs or other domestic or international governmental policies, acts of domestic or international
hostilities, 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.

 

Contact: John Reissner, 732.214.2083

  

  

 

MAGYAR BANCORP, INC. AND SUBSIDIARY

Selected Financial Data

 (Dollars In Thousands,
Except for Per-Share Amounts)

 

 
   
 Three Months Ended  
 Nine Months Ended 

 
   
 June 30,  
 June 30, 

 
   
 2026  
 2025  
 2026  
 2025 

 
   
    
   

 
 Income Statement Data: 
     
     
     
    

 
 Interest and dividend income 
 $15,252  
 $13,988  
 $44,762  
 $40,417 

 
 Interest expense 
  5,833  
  5,810  
  17,254  
  16,919 

 
 Net interest and dividend income 
  9,419  
  8,178  
  27,508  
  23,498 

 
 Provision for credit losses 
  351  
  101  
  630  
  172 

 
 Net interest and dividend income after 
     
     
     
    

 
    provision for credit losses 
  9,068  
  8,077  
  26,878  
  23,326 

 
 Other income 
  817  
  636  
  2,449  
  2,860 

 
 Other expense 
  5,532  
  5,239  
  16,429  
  16,047 

 
 Income before income tax expense 
  4,353  
  3,474  
  12,898  
  10,139 

 
 Income tax expense 
  1,260  
  1,004  
  3,639  
  2,904 

 
 Net income 
 $3,093  
 $2,470  
 $9,259  
 $7,235 

 
   
     
     
     
    

 
 Per Share Data: 
     
     
     
    

 
 Net income per share-basic 
 $0.50  
 $0.40  
 $1.49  
 $1.16 

 
 Net income per share-diluted 
 $0.49  
 $0.40  
 $1.47  
 $1.16 

 
 Book value per share, at period end 
 $19.61  
 $18.03  
 $19.61  
 $18.03 

 
   
     
     
     
    

 
 Selected Ratios (annualized): 
     
     
     
    

 
 Return on average assets 
  1.14%  
  0.96%  
  1.16%  
  0.96% 

 
 Return on average equity 
  10.24%  
  8.84%  
  9.68%  
  8.25% 

 
 Net interest margin 
  3.65%  
  3.35%  
  3.63%  
  3.30% 

 

 

  

  

 

 
   
 June 30,  
 September 30, 

 
   
 2026  
 2025 

 
   
 (Dollars in Thousands) 

 
 Balance Sheet Data: 
     
    

 
 Assets 
 $1,048,500  
 $997,660 

 
 Loans receivable, net 
  888,244  
  857,353 

 
 Allowance for credit losses- loans 
  (8,487) 
  (8,350)

 
 Investment securities - available for sale, at fair value 
  37,380  
  21,182 

 
 Investment securities - held to maturity, at cost 
  66,923  
  67,266 

 
 Deposits 
  853,869  
  814,307 

 
 Borrowings 
  49,054  
  49,054 

 
 Shareholders' Equity 
  126,624  
  118,842 

 
   
     
    

 
 Asset Quality Data: 
     
    

 
 Non-performing loans 
 $359  
 $451 

 
 Other real estate owned 
  —  
  2,167 

 
 Total non-performing assets 
 $359  
 $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 
  0.28%  
  2.20% 

 
 * Not meaningful