10-Q · May 13, 2026
Magyar Bancorp reported a strong quarterly performance with net income increasing by 13% YoY to $3 million and EPS rising to $0.48. Total revenue reached $14.9 million, bolstered by a net interest margin expansion and…
Earnings analysis · 10-Q
MGYR earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Magyar Bancorp delivered continued earnings momentum in the June 2026 quarter: net income increased 25.2% year over year to $3.093 million and diluted EPS rose to $0.49, supported by a 30-basis-point net interest margin…
Read full summary
Magyar Bancorp delivered continued earnings momentum in the June 2026 quarter: net income increased 25.2% year over year to $3.093 million and diluted EPS rose to $0.49, supported by a 30-basis-point net interest margin expansion to 3.65%. Loans and deposits grew, operating cash flow improved to $12.130 million year to date, and asset quality benefited from lower non-performing assets. Offsetting concerns include higher credit-loss provisions and charge-offs, substantial CRE concentration, higher borrowing costs, and declining non-interest income; the filing reports no material changes to the risk factors in the prior 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.49
What stood out
-
Net income and EPS increased
Net income rose to $3.093 million from $2.470 million in the prior-year quarter, an increase of $623 thousand, or 25.2%. Diluted EPS increased to $0.49 from $0.40 year over year and from $0.48 in the prior quarter.
-
Net interest margin expanded
Net interest and dividend income increased 15.2% year over year to $9.419 million. Net interest margin expanded 30 basis points to 3.65% from 3.35%, supported by a $57.0 million increase in average interest-earning assets.
-
Loan growth drove interest income
Average net loans increased 6.3% year over year to $874.341 million, while the average loan yield increased 20 basis points to 6.35% from 6.15%. Commercial real estate loans increased $56.6 million year to date to $589.809 million.
-
Deposit growth strengthened funding
Total deposits increased $39.562 million, or 4.9%, to $853.869 million from September 30, 2025. Certificates of deposit, including brokered and retirement certificates, increased 12.5% to $236.210 million, helped by a digital marketing campaign.
-
Asset quality improved
Non-performing assets declined to $359 thousand from $2.6 million at September 30, 2025, and the non-performing asset ratio fell to 0.03% from 0.26%. Other real estate owned declined to zero from $2.167 million.
-
Operating cash flow improved
Operating cash flow was $12.130 million for the nine months ended June 30, 2026, up from $7.543 million in the prior-year period. Cash and cash equivalents increased 61.9% to $11.471 million, although investing activities used $45.795 million, including $18.695 million of AFS securities purchases and $795 thousand of capital expenditures.
What to watch
-
Higher credit costs and charge-offs
The provision for credit losses increased to $351 thousand from $101 thousand in the prior-year quarter. The company recorded $295 thousand of net loan charge-offs in the quarter, including a $300 thousand charge-off related to one construction loan relationship.
-
High commercial real estate concentration
Commercial real estate loans totaled $589.809 million, or 66.3% of total loans, and non-owner-occupied CRE loans were approximately 271% of total risk-based capital. A decline in New Jersey real estate values could therefore materially affect collateral and credit performance.
-
Funding and borrowing costs
Interest expense on borrowings increased 53.1% year over year to $401 thousand in the quarter, as the average borrowing balance rose 44.1% to $49.0 million and the average borrowing cost increased to 3.28% from 3.08%. Certificates of deposit also rose to $236.210 million, including $61.0 million of brokered CDs.
-
Non-interest income headwinds
Other income declined 14.4% year over year to $2.449 million for the nine months ended June 30, 2026, primarily because net gains on OREO fell to zero from $229 thousand and service charge income declined $166 thousand, or 14.5%.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance and states that quarterly operating results are not necessarily indicative of the year. Management disclosed liquidity capacity of $158.0 million from the FHLBNY and $109.4 million from the FRBNY at June 30, 2026, with no material adverse change in funding ability.
Earlier filings 4
10-Q · February 13, 2026
Magyar Bancorp reported a stronger quarter: total interest and dividend income rose to $14,557,000 (from $12,906,000 a year earlier) and net income increased to $3,136,000 (from $2,085,000), driving diluted EPS to $0.50…
10-Q · May 13, 2025
Magyar Bancorp reported a stronger quarter: net interest and dividend income of $7,876 thousand plus other income of $1,268 thousand (totaling $9,144 thousand) and net income of $2,681 thousand (diluted EPS $0.43) for…
10-Q · February 13, 2025
Magyar Bancorp reported a stronger quarter ended December 31, 2024 with total interest and dividend income of $12,906,000 and net income of $2,085,000 (EPS $0.34), both up versus the prior year. Loan balances and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.