Magyar Bancorp, Inc. reported a significant increase in its financial performance for the three months ended December 31, 2025, with net income rising to $3.1 million, a 50.4% increase from $2.1 million in the same period last year. This growth was driven by a $1.5 million increase in net interest and dividend income, which reached $8.9 million, alongside a decrease in provisions for credit losses and lower other expenses. The company's earnings per share also improved, with basic earnings per share rising to $0.51 from $0.34 year-over-year.
Total assets for Magyar Bancorp increased by $47.8 million, or 4.8%, to $1.045 billion as of December 31, 2025, compared to $997.7 million at the end of September 2025. This growth was primarily attributed to a substantial rise in interest-earning deposits, which surged by $27 million, or 381.4%, to $34.1 million. Loans receivable also saw an increase of $18.9 million, or 2.2%, reaching $877.8 million, with notable growth in commercial real estate loans, which rose by $15.7 million.
In terms of operational developments, the company reported a decrease in non-performing loans, which fell to $361,000 from $451,000, reflecting a strong asset quality. The allowance for credit losses increased to $8.4 million, or 0.96% of total loans, due to growth in the loan portfolio and specific reserves for individually evaluated loans. Additionally, the company successfully sold its only other real estate owned (OREO) property, reducing OREO to zero from $2.2 million in the previous quarter.
Strategically, Magyar Bancorp has focused on expanding its presence in New Jersey, evidenced by a new lease agreement for retail office space in Edison, New Jersey, which is expected to enhance its market reach. The company also reported a 5.5% increase in total deposits, amounting to $859.1 million, driven by growth in various account types, including certificates of deposit and non-interest-bearing checking accounts. The stockholders' equity rose to $121.7 million, reflecting the company's operational success and prudent financial management.
Looking ahead, Magyar Bancorp remains optimistic about its growth trajectory, emphasizing its commitment to maintaining strong asset quality and expanding its loan portfolio. The company is well-positioned to navigate potential market challenges, with a robust capital base and a focus on strategic growth initiatives.
About Magyar Bancorp, Inc.
Magyar Bancorp, Inc. is a Delaware holding company that owns Magyar Bank, a community savings bank in New Jersey. The bank offers retail deposit products and originates loans primarily in residential, commercial real estate, small business, and consumer segments. It serves individuals and small to medium-sized businesses, focusing on local markets with competitive interest rates, regulated by federal and state authorities, emphasizing asset quality, risk management, and community development.
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