Magyar Bancorp Reports 41.3% Increase in Net Income for Q2 Fiscal 2025

Magyar Bancorp, Inc. reported a significant increase in its financial performance for the second quarter of fiscal year 2025, with net income rising to $2.7 million, a 41.3% increase from $1.9 million in the same period last year. This growth was driven by a 13.8% increase in net interest and dividend income, which reached $7.9 million, and a notable rise in other income, which more than doubled to $1.3 million. The company's earnings per share also improved, rising to $0.43 from $0.30 year-over-year.

Total assets for Magyar Bancorp increased by $69.9 million, or 7.3%, to $1.0 billion as of March 31, 2025, compared to $951.9 million at the end of the previous fiscal year. This growth was primarily attributed to a substantial increase in interest-earning deposits with banks, which surged by 194.4% to $70.7 million, and a 3.7% rise in loans receivable, which reached $809.0 million. The company’s commercial real estate loans were a significant contributor, increasing by 7.4% to $495.2 million, representing 61.1% of total loans.

In terms of operational developments, Magyar Bancorp's total deposits rose by $61.0 million, or 7.7%, to $857.7 million, with notable increases in interest-bearing accounts. The company also reported a decrease in non-performing loans, which fell to $81,000 from $232,000, reflecting improved asset quality. The allowance for credit losses increased to $8.2 million, or 0.98% of total loans, indicating a proactive approach to managing potential credit risks.

Strategically, Magyar Bancorp has continued to focus on enhancing its product offerings and operational efficiency. The company restructured its bank-owned life insurance portfolio, resulting in an increased yield from 2.59% to 3.26%. Additionally, the company repurchased 37,486 shares of its common stock during the six months ended March 31, 2025, as part of its ongoing stock repurchase program, which has a remaining capacity of 2,924 shares.

Looking ahead, Magyar Bancorp remains optimistic about its growth trajectory, supported by a strong capital position and a commitment to maintaining asset quality. The company’s Tier 1 capital ratio stood at 10.90% as of March 31, 2025, indicating a solid capital base to support future growth initiatives. Management anticipates that continued focus on commercial real estate and effective risk management strategies will further enhance the company’s financial performance in the upcoming quarters.