Magyar Bancorp, Inc.

What they do

Magyar Bancorp owns 100% of Magyar Bank, a New Jersey-chartered savings bank founded in 1922 and headquartered in New Brunswick, New Jersey. It gathers retail deposits from its main office and seven branches and invests them, along with wholesale funding, in commercial real estate, residential mortgage, commercial business, SBA, home equity, construction and land loans, and investment securities. Revenue comes mainly from interest on loans and securities, plus fees and service charges. It is regulated by the New Jersey Department of Banking and Insurance and the FDIC.

Revenue drivers

• Commercial real estate loans — The largest loan category and the main source of interest income; total loans receivable were $890.0 million at June 30, 2026, with CRE growing $56.6 million during the nine months then ended.
• Owner-occupied and non-owner-occupied CRE mix — Within CRE, owner-occupied loans were $249.6 million (42.3% of the CRE table) at June 30, 2026, led by hotel/motel at $74.5 million; non-owner-occupied included multi-family at $97.7 million and retail at $96.8 million.
• One-to-four-family residential real estate and home equity — Residential real estate loans including home equity lines of credit decreased $8.4 million during the nine months ended June 30, 2026, and remain a secondary lending category.
• Investment securities and fee income — Investment securities totaled $104.3 million at June 30, 2026, up $15.9 million, consisting primarily of mortgage-backed securities plus U.S. Government and agency obligations; the bank also earns fees and service charges.

Recent performance

For the quarter ended June 30, 2026, net income rose 25.2% to $3.1 million from $2.5 million a year earlier, with diluted EPS of $0.49 versus $0.40. Net interest and dividend income increased 15.2% to $9.4 million as the net interest margin widened 30 basis points to 3.65% and average interest-earning assets rose $57.0 million. For the nine months ended June 30, 2026, net income was $9.3 million versus $7.2 million, and diluted EPS was $1.47 versus $1.16. Total assets grew 5.1% to $1.048 billion at June 30, 2026 from $997.7 million at September 30, 2025, driven by higher loans, securities and cash. The company declared a quarterly cash dividend of $0.10 per share payable August 20, 2026.

Strategy

Management emphasizes margin expansion, citing a 30-basis-point year-over-year improvement in net interest margin in the June 2026 quarter. Growth is concentrated in commercial real estate lending, which increased $56.6 million in the nine months ended June 30, 2026, funded by deposit inflows that exceeded loan growth. The bank holds a securities portfolio weighted toward mortgage-backed securities and U.S. government and agency obligations. Magyar also highlights recognition by Keefe Bruyette & Woods on its 2026 Honor Roll for the third consecutive year, which management links to consistent earnings growth. No new product or acquisition initiatives are described in the excerpts.

Risks

• Commercial real estate concentration — CRE is the largest and fastest-growing part of the loan book, and management attributes a higher provision for credit losses to CRE growth.
• Office and hotel exposure — Owner-occupied hotel/motel loans were $74.5 million and non-owner-occupied office loans were $38.2 million at June 30, 2026, segments sensitive to real estate valuations.
• Credit losses — The company recorded a $351 thousand provision for credit losses in the June 2026 quarter, including a $300 thousand charge-off on one construction loan relationship.
• Geographic and market concentration — Deposits are concentrated in Middlesex and Somerset Counties and lending is limited to New Jersey, so regional real estate and economic conditions directly affect results.

Outlook

CEO John Fitzgerald said the company is well positioned to produce solid results heading into the final quarter of its fiscal year, citing the higher net interest margin and the 25% quarterly earnings increase. The company noted that June 30, 2026 cash and deposit balances reflect seasonal municipal deposit outflows that historically return the following calendar quarter. Management did not provide specific numeric guidance for the coming quarter or fiscal year in the excerpts.