MGYR earnings analysis
What we found in MGYR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.49
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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