MGYR · Magyar Bancorp, Inc.

Magyar Bancorp reported strong second-quarter results for fiscal 2026, with net income increasing 13% to $3.0 million compared to $2.7 million in the same quarter last year. The improvement was driven by a 17.2% increase in net interest and dividend income to $9.2 million, reflecting a 35-basis-point expansion in net interest margin to 3.66%. This margin expansion was supported by a 25-basis-point increase in yield on interest-earning assets to 5.93%, while the cost of interest-bearing liabilities declined 10 basis points to 2.92%. Loan growth remained robust, with average net loans receivable increasing 8.1% year-over-year. However, the company recorded a provision for credit losses of $256,000 versus a net recovery of $30,000 in the prior year, driven by higher commercial real estate and construction loan balances. Non-interest income declined 32.4% to $857,000, primarily due to lower gains from SBA loan sales. Operating expenses rose 3.1% to $5.6 million, largely from higher compensation and benefits. The effective tax rate was 29.0%. Management expressed confidence in sustaining momentum, citing strong credit underwriting and expected continued margin expansion. Additionally, the board declared a quarterly cash dividend of $0.10 per share, payable on May 21, 2026 to shareholders of record as of May 7, 2026. Overall, the results highlight solid earnings growth, improved asset quality with non-performing loans down 34.8%, and a strengthened balance sheet with book value per share rising to $19.19.