Magyar Bancorp Reports 29.4% Increase in Net Income for Six Months Ending March 31, 2026

Magyar Bancorp, Inc. reported a significant increase in its financial performance for the six months ending March 31, 2026, with net income rising to $6.2 million, a 29.4% increase from $4.8 million in the same period last year. This growth was primarily driven by a rise in net interest income, which increased by 18.1% to $18.1 million, attributed to a higher average balance of interest-earning assets and an improved net interest margin of 3.63%. Interest and dividend income also saw an increase of 11.7%, reaching $29.5 million, reflecting a 28 basis point rise in yield on interest-earning assets.

Total assets for Magyar Bancorp increased by $70.7 million, or 7.1%, to $1.068 billion as of March 31, 2026, compared to $997.7 million at the end of September 2025. This growth was fueled by a substantial increase in cash and cash equivalents, which surged by 572.4% to $47.6 million, and a 2.4% rise in loans receivable, which reached $879.9 million. The company also reported a notable increase in investment securities, totaling $99.2 million, up 12.1% from the previous period.

In terms of operational developments, Magyar Bancorp's total deposits rose by $64.1 million, or 7.9%, to $878.4 million, driven by increases across various account types, including certificates of deposit and non-interest-bearing checking accounts. The company implemented a digital marketing campaign that successfully attracted new customers, contributing to this deposit growth. Additionally, the allowance for credit losses increased to $8.6 million, or 0.98% of total loans, reflecting higher specific reserves on construction loans amid a growing loan portfolio.

Looking ahead, Magyar Bancorp remains optimistic about its growth trajectory, emphasizing its commitment to maintaining strong asset quality and effective risk management practices. The company noted that its capital ratios remain robust, with Tier 1 capital at 11.15% of total assets, indicating a solid foundation for future expansion. However, management cautioned that various economic factors, including interest rate fluctuations and market conditions, could impact future performance.