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MAGYAR BANCORP, INC. ANNOUNCES FISCAL FOURTH QUARTER AND FISCAL YEAR END FINANCIAL RESULTS, DECLARES QUARTERLY DIVIDEND New Brunswick, New Jersey, October 30, 2025 – Magyar Bancorp (NASDAQ: MGYR) (the "Company"), parent company of Magyar Bank, reported today the results of its operations for the three months and fiscal year ended September 30, 2025. News 400 Somerset St., New Brunswick, NJ 08901 732.342.7600 The Company reported $2.5 million in net income for the three months ended September 30, 2025 compar ...

Accessibility StatementSkip Navigation NEW BRUNSWICK, N.J., Oct. 30, 2025 /PRNewswire/ -- Magyar Bancorp (NASDAQ: MGYR) (the "Company"), parent company of Magyar Bank, reported today the results of its operations for the three months and fiscal year ended September 30, 2025. The Company reported $2.5 million in net income for the three months ended September 30, 2025 compared with net income of $2.5 million for the three months ended September 30, 2024. The Company also reported net income of $9.8 million f ...

Company Overview - Magyar Bancorp is a New Jersey bank with approximately $1 billion in assets, primarily focused on commercial real estate loan assets within its home state [1]. Growth and Size - The bank has experienced significant growth, doubling its size over the past decade [1].

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the registrant, Magyar Bancorp, Inc., and its Form 10-Q filing status for the quarter ended June 30, 2025 [Registrant Details](index=1&type=section&id=Registrant%20Details) This section provides the basic identification details of the registrant, Magyar Bancorp, Inc., for its quarterly report on Form 10-Q for the period ended June 30, 2025 Registrant and Filing Information | Detail | Value | | :--- | :--- | | Registrant Name | Magyar Bancorp, Inc. | | Filing Type | Form 10-Q | | Quarterly Period Ended | June 30, 2025 | | Commission File Number | 000-51726 | | Trading Symbol | MGYR | | Exchange | The NASDAQ Stock Market, LLC | | Filer Status | Non-accelerated filer, Smaller reporting company | | Shares Outstanding (August 1, 2025) | 6,450,948 | [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, with explanatory notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (In Thousands) | Item | June 30, 2025 | September 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Total cash and cash equivalents | $7,051 | $25,596 | $(18,545) | -72.45% | | Investment securities - available for sale | $21,604 | $15,616 | $5,988 | 38.35% | | Investment securities - held to maturity | $69,520 | $79,816 | $(10,296) | -12.90% | | Loans receivable | $843,991 | $780,162 | $63,829 | 8.18% | | Allowance for credit losses-loans | $(8,059) | $(7,548) | $(511) | 6.77% | | Total assets | $987,488 | $951,918 | $35,570 | 3.74% | | **Liabilities** | | | | | | Deposits | $819,962 | $796,674 | $23,288 | 2.92% | | Borrowings | $36,054 | $28,568 | $7,486 | 26.20% | | Total liabilities | $871,165 | $841,370 | $29,795 | 3.54% | | **Stockholders' Equity** | | | | | | Retained earnings | $64,558 | $58,644 | $5,914 | 10.08% | | Total stockholders' equity | $116,323 | $110,548 | $5,775 | 5.22% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Presents the company's financial performance, detailing revenues, expenses, and net income over specific reporting periods Consolidated Statements of Income Highlights (In Thousands, Except Per Share Data) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Absolute) | Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest and dividend income | $13,988 | $12,327 | $1,661 | 13.48% | $40,417 | $35,805 | $4,612 | 12.88% | | Total interest expense | $5,810 | $5,543 | $267 | 4.82% | $16,919 | $14,853 | $2,066 | 13.91% | | Net interest and dividend income | $8,178 | $6,784 | $1,394 | 20.55% | $23,498 | $20,952 | $2,546 | 12.15% | | Total provision for (recovery of) credit losses | $101 | $(54) | $155 | -287.04% | $172 | $441 | $(269) | -60.99% | | Total other income | $636 | $409 | $227 | 55.50% | $2,860 | $1,639 | $1,221 | 74.50% | | Total other expenses | $5,239 | $5,055 | $184 | 3.64% | $16,047 | $15,184 | $863 | 5.68% | | Income before income tax expense | $3,474 | $2,192 | $1,282 | 58.48% | $10,139 | $6,966 | $3,173 | 45.55% | | Income tax expense | $1,004 | $501 | $503 | 100.40% | $2,904 | $1,726 | $1,178 | 68.25% | | Net income | $2,470 | $1,691 | $779 | 46.07% | $7,235 | $5,240 | $1,995 | 38.07% | | Earnings per share - basic | $0.40 | $0.27 | $0.13 | 48.15% | $1.16 | $0.82 | $0.34 | 41.46% | | Earnings per share - diluted | $0.40 | $0.27 | $0.13 | 48.15% | $1.16 | $0.82 | $0.34 | 41.46% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents the company's comprehensive income, including net income and other comprehensive income components, for specific reporting periods Consolidated Statements of Comprehensive Income Highlights (In Thousands) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Absolute) | Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $2,470 | $1,691 | $779 | 46.07% | $7,235 | $5,240 | $1,995 | 38.07% | | Unrealized (loss) gain on securities available for sale | $115 | $(14) | $129 | -921.43% | $141 | $487 | $(346) | -71.05% | | Deferred income tax effect | $(28) | $4 | $(32) | -800.00% | $(35) | $(120) | $85 | 70.83% | | Total other comprehensive income (loss) | $87 | $(10) | $97 | -970.00% | $106 | $367 | $(261) | -71.12% | | Total comprehensive income | $2,557 | $1,681 | $876 | 52.11% | $7,341 | $5,607 | $1,734 | 30.93% | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Details changes in the company's equity accounts, including common stock, retained earnings, and accumulated other comprehensive loss Changes in Stockholders' Equity (In Thousands) | Item | Balance, Sep 30, 2024 | Balance, Jun 30, 2025 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Common Stock Par Value | $71 | $71 | $0 | 0.00% | | Additional Paid-In Capital | $63,085 | $63,607 | $522 | 0.83% | | Treasury Stock | $(7,364) | $(8,209) | $(845) | 11.47% | | Unearned ESOP Shares | $(2,972) | $(2,894) | $78 | -2.62% | | Retained Earnings | $58,644 | $64,558 | $5,914 | 10.08% | | Accumulated Other Comprehensive Loss | $(916) | $(810) | $106 | -11.57% | | Total Stockholders' Equity | $110,548 | $116,323 | $5,775 | 5.22% | - Net income contributed **$7,235 thousand** to retained earnings for the nine months ended June 30, 2025, while dividends paid on common stock totaled **$1,322 thousand** (**$0.21 per share**) and treasury stock purchases amounted to **$869 thousand** for **60,410 shares**[106](index=106&type=chunk)[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for specific reporting periods Consolidated Statements of Cash Flows Highlights (Nine Months Ended June 30, In Thousands) | Activity | 2025 | 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $7,543 | $5,463 | $2,080 | 38.07% | | Net cash used in investing activities | $(55,001) | $(60,918) | $5,917 | -9.71% | | Net cash provided by financing activities | $28,913 | $31,970 | $(3,057) | -9.56% | | Net decrease in cash and cash equivalents | $(18,545) | $(23,485) | $4,940 | -21.03% | | Cash and cash equivalents, end of period | $7,051 | $49,047 | $(41,996) | -85.62% | - The significant decrease in cash and cash equivalents was primarily due to net cash used in investing activities, driven by a net increase in loans receivable (**$63.49 million**) and purchases of investment securities, partially offset by proceeds from maturities and repayments of investment securities and redemption of BOLI[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies and specific financial instruments [Basis of Presentation](index=10&type=section&id=NOTE%20A%20%E2%80%93%20BASIS%20OF%20PRESENTATION) Outlines the basis for preparing consolidated financial statements, including GAAP conformity and management's key estimates - The consolidated financial statements include Magyar Bancorp, Inc., its wholly-owned subsidiary Magyar Bank, and the Bank's wholly-owned subsidiaries. They are prepared on an accrual basis in conformity with US GAAP, reflecting management's estimates and assumptions, particularly for allowance for credit losses, available-for-sale securities valuation, OREO valuation, and deferred income tax assets[24](index=24&type=chunk)[26](index=26&type=chunk) [Recent Accounting Pronouncements](index=10&type=section&id=NOTE%20B%20-%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) Discusses the impact of recently issued accounting standards on the company's financial reporting - ASU 2023-07, 'Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,' effective for fiscal years beginning after **December 15, 2023**, requires detailed segment expense disclosures. The Company is analyzing its impact and plans to incorporate additional disclosures upon adoption[29](index=29&type=chunk) [Contingencies](index=10&type=section&id=NOTE%20C%20-%20CONTINGENCIES) Addresses potential future liabilities or gains arising from past events, such as litigation - Management believes that the resolution of routine litigation arising in the normal course of business would not have a **material adverse effect** on the Company's consolidated financial position or results of operations[30](index=30&type=chunk) [Earnings Per Share](index=10&type=section&id=NOTE%20D%20-%20EARNINGS%20PER%20SHARE) Details the calculation of basic and diluted earnings per share for common stockholders Earnings Per Share (3 & 9 Months Ended June 30) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Income applicable to common shares (in thousands) | $2,470 | $1,691 | $7,235 | $5,240 | | Weighted average shares outstanding - basic | 6,217,639 | 6,336,702 | 6,224,253 | 6,358,581 | | Weighted average shares outstanding - diluted | 6,232,247 | 6,336,702 | 6,232,173 | 6,358,581 | | Earnings per share - basic | $0.40 | $0.27 | $1.16 | $0.82 | | Earnings per share - diluted | $0.40 | $0.27 | $1.16 | $0.82 | - Options to purchase **281,200 shares** and **87,240 restricted shares** were outstanding at June 30, 2025, and included in diluted EPS calculation. In contrast, **293,200 options** and **124,320 restricted shares** were anti-dilutive and excluded at June 30, 2024[32](index=32&type=chunk) [Other Comprehensive Income (Loss)](index=11&type=section&id=NOTE%20E%20%E2%80%93%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Reports items of comprehensive income or loss not recognized in net income, such as unrealized gains/losses on AFS securities Other Comprehensive Income (Loss) (In Thousands) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Unrealized holding gain (loss) on AFS investments (before tax) | $115 | $(14) | $141 | $487 | | Deferred income tax effect | $(28) | $4 | $(35) | $(120) | | Total other comprehensive income (loss), net | $87 | $(10) | $106 | $367 | [Fair Value Disclosures](index=11&type=section&id=NOTE%20F%20%E2%80%93%20FAIR%20VALUE%20DISCLOSURES) Provides information on fair value measurements of financial instruments, categorized by input observability levels - The Company categorizes fair value measurements into three levels based on input observability: **Level 1** (quoted prices in active markets), **Level 2** (quoted prices for similar instruments or observable inputs), and **Level 3** (significant unobservable inputs). Securities available-for-sale and derivatives are measured at fair value on a recurring basis, primarily using **Level 2** inputs. Other real estate owned (OREO) is measured at fair value on a non-recurring basis using **Level 3** inputs, primarily appraisals adjusted for liquidation expenses[35](index=35&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) Assets and Liabilities Measured at Fair Value on a Recurring Basis (June 30, 2025, In Thousands) | Item | Total | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | :--- | | **Assets:** | | | | | | Securities available for sale | $21,604 | $0 | $21,604 | $0 | | Derivative assets | $977 | $0 | $977 | $0 | | **Liabilities:** | | | | | | Derivative liabilities | $977 | $0 | $977 | $0 | Other Real Estate Owned (OREO) Measured at Fair Value on a Non-Recurring Basis (In Thousands) | Item | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Other real estate owned (Level 3) | $2,167 | $1,501 | | Valuation Technique | Appraisal | Appraisal | | Unobservable Input | Liquidation expenses | Liquidation expenses | | Range (Weighted Average) | -1.5% to -1.5% (-1.5%) | -13.0% to -19.6% (-14.6%) | [Investment Securities](index=14&type=section&id=NOTE%20G%20-%20INVESTMENT%20SECURITIES) Details the composition and fair value of the company's investment securities portfolio, categorized as AFS or HTM Investment Securities Summary (June 30, 2025, In Thousands) | Security Type | Amortized Cost | Fair Value | Gross Unrealized Gains | Gross Unrealized Losses | | :--- | :--- | :--- | :--- | :--- | | **Available-for-sale:** | | | | | | Mortgage backed securities - residential | $91 | $82 | $0 | $(9) | | Mortgage-backed securities-residential (GSE) | $16,003 | $14,876 | $62 | $(1,189) | | Corporate securities | $6,500 | $6,646 | $146 | $0 | | **Held-to-maturity:** | | | | | | Mortgage-backed securities - residential | $6,781 | $6,094 | $0 | $(687) | | Mortgage-backed securities - commercial | $4,024 | $4,036 | $19 | $(7) | | Mortgage backed securities - residential (GSE) | $41,601 | $36,383 | $1 | $(5,219) | | Debt securities | $10,500 | $9,940 | $0 | $(560) | | Private label mortgage-backed securities - residential | $179 | $176 | $0 | $(3) | | Obligations of state and political subdivisions | $3,435 | $3,068 | $1 | $(368) | | Corporate securities | $3,000 | $2,894 | $0 | $(106) | | **Total Investment Securities** | **$92,114** | **$84,195** | **$229** | **$(8,148)** | - The Company monitors the credit quality of held-to-maturity debt securities quarterly, primarily through credit ratings. At June 30, 2025, and September 30, 2024, there were **no non-performing held-to-maturity debt securities**, and **no allowance for credit losses was required**, as the majority are explicitly or implicitly guaranteed by the U.S. government[54](index=54&type=chunk)[55](index=55&type=chunk) [Unrealized Losses on Investment Securities Available-for-Sale](index=17&type=section&id=NOTE%20H%20%E2%80%93%20UNREALIZED%20LOSSES%20ON%20INVESTMENT%20SECURITIES%20AVAILABLE-FOR-SALE) Analyzes unrealized losses on available-for-sale securities, assessing their credit-related or interest rate-driven nature Available-for-Sale Securities with Unrealized Losses (June 30, 2025, In Thousands) | Security Type | Number of Securities | Fair Value | Unrealized Losses | | :--- | :--- | :--- | :--- | | U.S. government agencies: Mortgage-backed securities - residential | 1 | $82 | $(9) | | U.S. government-sponsored enterprises: Mortgage-backed securities - residential | 9 | $8,875 | $(1,189) | | Total | 10 | $8,957 | $(1,198) | - Unrealized losses on available-for-sale securities are primarily due to fluctuations in interest rates, not credit-related events. The Company does not intend to sell these securities and expects full recovery of amortized costs, thus **no credit loss allowance is deemed necessary** for these unrealized losses[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [Loans Receivable, Net and Related Allowance for Credit Losses](index=18&type=section&id=NOTE%20I%20%E2%80%93%20LOANS%20RECEIVABLE,%20NET%20AND%20RELATED%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) Presents the composition of the loan portfolio, net of deferred costs, and the allowance for credit losses Loans Receivable Composition (In Thousands) | Loan Type | June 30, 2025 | September 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | One-to-four family residential | $245,235 | $246,201 | $(966) | -0.39% | | Commercial real estate | $523,990 | $461,319 | $62,671 | 13.59% | | Construction and land | $25,930 | $22,722 | $3,208 | 14.12% | | Home equity loans and lines of credit | $29,415 | $24,728 | $4,687 | 18.95% | | Commercial business | $19,135 | $24,011 | $(4,876) | -20.31% | | Other | $1,705 | $2,235 | $(530) | -23.71% | | Total loans receivable | $845,410 | $781,216 | $64,194 | 8.22% | | Net deferred loan costs | $(1,419) | $(1,054) | $(365) | 34.63% | | Total loans receivable, net | $843,991 | $780,162 | $63,829 | 8.18% | - The Company uses a **ten-point internal risk rating system**, aggregating the first six categories as 'Pass.' Criticized categories include Special Mention, Substandard, and Doubtful. Loans over three months past due are classified as Substandard. An external loan review company semi-annually assesses the portfolio for appropriate risk grading[61](index=61&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[71](index=71&type=chunk) Non-Accrual Loans and Collateral Dependent Loans (In Thousands) | Loan Type | June 30, 2025 | September 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | One-to-four family residential | $632 | $116 | $516 | 444.83% | | Commercial real estate | $288 | $116 | $172 | 148.28% | | Total Non-Accrual Loans | $920 | $232 | $688 | 296.55% | - The Allowance for Credit Losses (ACL) increased by **$283 thousand** to **$8.3 million** (**0.98% of total loans receivable**) during the nine months ended June 30, 2025, driven by growth in commercial real estate and construction portfolios. The allowance for on-balance sheet credit losses increased to **$8.1 million**, while the reserve for off-balance sheet commitments decreased to **$222 thousand**[74](index=74&type=chunk) [Deposits](index=25&type=section&id=NOTE%20J%20-%20DEPOSITS) Details the composition of the company's deposit base by type, including demand, savings, and certificates of deposit Deposits by Type (In Thousands) | Deposit Type | June 30, 2025 | September 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Demand accounts | $116,343 | $132,837 | $(16,494) | -12.42% | | Savings accounts | $53,277 | $52,853 | $424 | 0.80% | | NOW accounts | $138,944 | $146,744 | $(7,800) | -5.31% | | Money market accounts | $330,875 | $304,588 | $26,287 | 8.63% | | Certificates of deposit | $166,556 | $146,674 | $19,882 | 13.56% | | Retirement certificates | $13,967 | $12,978 | $989 | 7.62% | | Total Deposits | $819,962 | $796,674 | $23,288 | 2.92% | - Brokered certificates of deposit increased to **$41.3 million** at June 30, 2025, from **$29.6 million** at September 30, 2024. Deposits exceeding the federal deposit insurance maximum of **$250 thousand** totaled **$444.1 million** at June 30, 2025, up from **$380.0 million** at September 30, 2024[78](index=78&type=chunk)[79](index=79&type=chunk) [Financial Instruments with Off-Balance Sheet Risk](index=26&type=section&id=NOTE%20K%20-%20FINANCIAL%20INSTRUMENTS%20WITH%20OFF-BALANCE%20SHEET%20RISK) Discloses financial instruments with off-balance sheet risk, such as loan commitments and interest rate swaps - The Company uses interest rate swaps with commercial lending customers, which are simultaneously offset by third-party swaps to minimize net risk exposure. Changes in fair value for these non-hedging derivatives are recognized in earnings, with credit risk considered negligible. The notional amount of customer and third-party interest rate swaps was **$41.6 million** at June 30, 2025, up from **$34.9 million** at September 30, 2024[81](index=81&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) Off-Balance Sheet Commitments (In Thousands) | Commitment Type | June 30, 2025 | September 30, 2024 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Letters of credit | $785 | $620 | $165 | 26.61% | | Unused lines of credit | $85,484 | $88,272 | $(2,788) | -3.16% | | Fixed rate loan commitments | $3,432 | $1,804 | $1,628 | 90.24% | | Variable rate loan commitments | $34,177 | $26,843 | $7,334 | 27.32% | | Total | $123,878 | $117,539 | $6,339 | 5.39% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operating results, highlighting key changes in assets, liabilities, equity, and income statement items [Forward-Looking Statements](index=27&type=section&id=Forward-Looking%20Statements) Warns readers about inherent risks and uncertainties in forward-looking statements, disclaiming any obligation to update them - The report contains forward-looking statements identified by words like 'anticipate,' 'will allow,' 'expects to,' and 'believes.' These statements are subject to numerous risks and uncertainties, including general economic conditions, interest rate changes, regulatory factors, competition, and real estate market risks. Readers are cautioned not to place undue reliance on these statements, and the Company disclaims any obligation to update them[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) [Comparison of Financial Condition at June 30, 2025 and September 30, 2024](index=28&type=section&id=Comparison%20of%20Financial%20Condition) Compares the company's financial position, including assets, liabilities, and equity, between two reporting periods Key Financial Condition Changes (June 30, 2025 vs. September 30, 2024, In Millions) | Item | Sep 30, 2024 | Jun 30, 2025 | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $951.9 | $987.5 | $35.6 | 3.7% | | Interest Earning Deposits | $25.6 | $7.1 | $(18.5) | -72.5% | | Loans Receivable | $781.2 | $845.4 | $64.2 | 8.2% | | Investment Securities | $95.4 | $91.1 | $(4.3) | -4.5% | | Bank Owned Life Insurance (BOLI) | $23.3 | $20.6 | $(2.7) | -11.8% | | Total Deposits | $796.7 | $820.0 | $23.3 | 2.9% | | Borrowings | $28.6 | $36.1 | $7.5 | 26.2% | | Stockholders' Equity | $110.5 | $116.3 | $5.8 | 5.2% | | Book Value Per Share | $16.98 | $18.03 | $1.05 | 6.18% | - Loans receivable growth was primarily in commercial real estate (**$62.7 million**), one-to-four family residential (**$3.7 million**), and construction and land loans (**$3.2 million**). Non-performing loans increased by **$688 thousand** to **$920 thousand**, raising the ratio of non-performing loans to total loans from **0.03% to 0.11%**[91](index=91&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk)[99](index=99&type=chunk) Commercial Real Estate (CRE) Loan Composition (June 30, 2025, In Thousands) | Category | Amount | Percent of Total CRE | | :--- | :--- | :--- | | Owner-occupied | $228,671 | 43.6% | | Non-owner occupied | $295,319 | 56.4% | | Total CRE Loans | $523,990 | 100.0% | - Non-owner occupied commercial real estate loans to total risk-based capital were approximately **266%** at June 30, 2025, down from **270%** at September 30, 2024. Management believes appropriate risk management practices are in place[101](index=101&type=chunk) - The Company restructured **$7.9 million** of its BOLI portfolio in August 2024, increasing the yield from **2.59%** (**3.71% tax-equivalent**) to **3.36%** (**4.81% tax-equivalent**) at June 30, 2025[102](index=102&type=chunk) - Deposits increased primarily in money market accounts (**$26.3 million**) and certificates of deposit (**$20.9 million**), while non-interest bearing checking accounts decreased by **$16.5 million**. Borrowings increased by **$7.5 million**, including **$9.0 million** from FHLBNY to fund loan growth[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Average Balance Sheets for the Three and Nine Months Ended June 30, 2025 and 2024](index=30&type=section&id=Average%20Balance%20Sheets%20and%20Net%20Interest%20Income%20Analysis) Analyzes average balance sheet components and their impact on net interest income and margin over specified periods Net Interest Income and Margin (3 Months Ended June 30, In Thousands) | Metric | 2025 | 2024 | Change (Absolute) | Change (Basis Points) | | :--- | :--- | :--- | :--- | :--- | | Average Interest-Earning Assets | $978,431 | $900,036 | $78,395 | | | Yield on Interest-Earning Assets | 5.74% | 5.50% | | 24 bps | | Average Interest-Bearing Liabilities | $772,143 | $686,679 | $85,464 | | | Cost of Interest-Bearing Liabilities | 3.02% | 3.24% | | -22 bps | | Net Interest and Dividend Income | $8,178 | $6,784 | $1,394 | | | Interest Rate Spread | 2.72% | 2.26% | | 46 bps | | Net Interest Margin | 3.35% | 3.02% | | 33 bps | Net Interest Income and Margin (9 Months Ended June 30, In Thousands) | Metric | 2025 | 2024 | Change (Absolute) | Change (Basis Points) | | :--- | :--- | :--- | :--- | :--- | | Average Interest-Earning Assets | $953,301 | $886,309 | $66,992 | | | Yield on Interest-Earning Assets | 5.67% | 5.40% | | 27 bps | | Average Interest-Bearing Liabilities | $746,894 | $646,653 | $100,241 | | | Cost of Interest-Bearing Liabilities | 3.03% | 3.07% | | -4 bps | | Net Interest and Dividend Income | $23,498 | $20,952 | $2,546 | | | Interest Rate Spread | 2.64% | 2.33% | | 31 bps | | Net Interest Margin | 3.30% | 3.16% | | 14 bps | [Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024](index=32&type=section&id=Comparison%20of%20Operating%20Results%20-%20Three%20Months) Compares the company's operating performance, including net income and key revenue/expense drivers, for the three-month periods - Net income increased by **$779 thousand** (**46.1%**) to **$2.5 million**, driven by a **$1.4 million** (**20.5%**) increase in net interest and dividend income and a **$227 thousand** (**55.5%**) increase in other income. This was partially offset by a **$155 thousand** increase in provision for credit losses and higher income tax expense[113](index=113&type=chunk)[114](index=114&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) - Interest and dividend income rose by **$1.7 million** (**13.5%**) due to a **24-basis point** increase in asset yield and a **$77.6 million** increase in average interest-earning assets. Loan interest income specifically increased by **$1.6 million** (**15.0%**) due to higher average balances and yields[115](index=115&type=chunk)[116](index=116&type=chunk) - Interest expense increased by **$267 thousand** (**4.8%**), despite a **22-basis point** decrease in the cost of interest-bearing liabilities, primarily due to an **$85.5 million** increase in average interest-bearing liabilities. Interest paid on deposits increased by **$211 thousand**, and interest on borrowings increased by **$56 thousand**[117](index=117&type=chunk)[118](index=118&type=chunk) - Other income saw significant growth from bank-owned life insurance (up **$79 thousand**, **84.9%**) due to policy restructuring, and service charges (up **$58 thousand**, **20.6%**) from commercial loan prepayment and late charges. Other expenses increased by **$184 thousand** (**3.6%**), mainly due to a **$211 thousand** (**7.3%**) rise in compensation and employee benefits[119](index=119&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Income tax expense more than doubled to **$1.0 million**, reflecting higher pre-tax income and a higher effective tax rate of **28.9%** (up from **22.9%** in the prior year)[123](index=123&type=chunk) [Comparison of Operating Results for the Nine Months Ended June 30, 2025 and 2024](index=34&type=section&id=Comparison%20of%20Operating%20Results%20-%20Nine%20Months) Compares the company's operating performance, including net income and key revenue/expense drivers, for the nine-month periods - Net income increased by **$2.0 million** (**38.1%**) to **$7.2 million**, driven by a **$2.5 million** (**12.2%**) increase in net interest and dividend income and a **$1.2 million** (**74.5%**) increase in other income, alongside a **$269 thousand** decrease in provision for credit losses. These gains were partially offset by higher other expenses and income tax expense[124](index=124&type=chunk)[125](index=125&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Interest and dividend income increased by **$4.6 million** (**12.9%**), primarily from a **$5.0 million** (**15.9%**) rise in loan interest income due to higher average loan balances and yields. However, interest earned on investment securities and interest-earning deposits decreased by **$402 thousand** (**9.9%**) due to lower average balances and yields[126](index=126&type=chunk)[127](index=127&type=chunk) - Interest expense increased by **$2.1 million** (**13.9%**), mainly due to a **$97.3 million** increase in average interest-bearing deposits, despite a **4-basis point** decrease in the average cost of deposits. Interest expense on borrowings also increased by **$30 thousand**[128](index=128&type=chunk)[129](index=129&type=chunk) - Other income significantly increased due to higher gains from SBA 7(a) loan sales (up **$506 thousand** to **$848 thousand**), gains from OREO sales, commercial loan prepayment charges, and income from BOLI policies. Other expenses increased by **$863 thousand** (**5.7%**), primarily from higher compensation and benefits (**$663 thousand**) and occupancy expenses (**$222 thousand**) due to an office closure[130](index=130&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Income tax expense increased to **$2.9 million** on higher pre-tax income, with the effective tax rate rising to **28.6%** from **24.8%** in the prior year[135](index=135&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Assesses the company's ability to meet financial obligations and maintain adequate capital levels - The Company's liquidity is supported by asset maturities, repayments, sales, excess cash, new deposits, and FHLBNY advances. At June 30, 2025, the Company had an aggregate net borrowing capacity of **$133.2 million** from FHLBNY. There has been **no material adverse change** in the Company's ability to fund operations[136](index=136&type=chunk)[137](index=137&type=chunk) Off-Balance Sheet Commitments (June 30, 2025, In Thousands) | Commitment Type | Amount | | :--- | :--- | | Letters of credit | $785 | | Commitments to originate loans | $37,600 | | Commitments to fund undisbursed balances of closed loans and unused lines of credit | $85,500 | - At June 30, 2025, the Bank's Tier 1 capital to total assets was **10.97%**, and total qualifying capital to risk-weighted assets was **15.71%**, indicating **strong capital adequacy**[138](index=138&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are not applicable for smaller reporting companies under SEC regulations - Quantitative and Qualitative Disclosures About Market Risk are **not applicable** to smaller reporting companies[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated disclosure controls and procedures, confirming their effectiveness and no material changes to internal controls - Disclosure controls and procedures were evaluated and deemed **effective** as of June 30, 2025[140](index=140&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[141](index=141&type=chunk) [PART II. OTHER INFORMATION](index=36&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Confirms no legal proceedings requiring disclosure for the Company - **No legal proceedings** to report[142](index=142&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors from the Annual Report on Form 10-K - **No material changes** to risk factors from the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[143](index=143&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchase programs, including a new authorization for 5% of shares and shares repurchased during the period - On May 22, 2025, the Company authorized its fifth stock repurchase program to repurchase up to an additional **5%** (**323,547 shares**) of its outstanding common stock for general corporate purposes[145](index=145&type=chunk) - The Company repurchased **60,410 shares** of common stock during the nine months ended June 30, 2025, holding **646,877 treasury shares** at an average cost of **$12.69** as of that date[147](index=147&type=chunk) - The fourth stock repurchase program, authorizing up to **337,146 shares**, was completed on **April 17, 2025**, at an average price of **$12.23**[149](index=149&type=chunk) Common Stock Repurchases (Quarter Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Remaining Shares Under Current Program | | :--- | :--- | :--- | :--- | | April 1, 2025 through April 30, 2025 | 2,924 | $13.97 | — | | May 1, 2025 through May 31, 2025 | 20,000 | $15.42 | 303,547 | | June 1, 2025 through June 30, 2025 | — | — | 303,547 | [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirms no defaults occurred on senior securities - **No defaults** upon senior securities[150](index=150&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable, and no Rule 10b5-1 trading arrangements were adopted or terminated - Mine Safety Disclosures are **not applicable**[150](index=150&type=chunk) - **No directors or executive officers** adopted or terminated Rule 10b5-1 trading arrangements during the nine months ended June 30, 2025[150](index=150&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) Notes the completion of the fourth stock repurchase program and other non-applicable items - The Company completed its fourth stock repurchase program, totaling **337,146 shares** at an average price of **$12.23**, on **April 17, 2025**[149](index=149&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data files - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer (**31.1, 31.2, 32.1, 32.2**) and interactive data files (XBRL) for the consolidated financial statements and notes (**101, 104**)[153](index=153&type=chunk) [Signature Pages](index=38&type=section&id=Signature%20Pages) Contains signatures of the CEO and CFO, certifying the report filing on August 13, 2025 - The report was signed by John S. Fitzgerald, President and Chief Executive Officer, and Jon R. Ansari, Executive Vice President and Chief Financial Officer, on **August 13, 2025**[155](index=155&type=chunk)

[Company Announcement & Highlights](index=1&type=section&id=Company%20Announcement%20%26%20Highlights) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Magyar Bancorp reported a significant increase in net income and basic and diluted earnings per share for both the three and nine months ended June 30, 2025, with the Board of Directors also declaring an increased quarterly cash dividend Net Income and EPS Overview | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change (%) | | :------------------------- | :------------------------------- | :------------------------------- | :--------- | :------------------------------ | :------------------------------ | :--------- | | Net Income | $2.5 million | $1.7 million | 46% | $7.2 million | $5.2 million | 38.5% | | Basic & Diluted EPS | $0.40 | $0.27 | 48.1% | $1.16 | $0.82 | 41.5% | - The Company's Board of Directors declared an increase in its quarterly cash dividend to **$0.08 per share**, payable on August 21, 2025[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) President and CEO John Fitzgerald highlighted the success of the Community Banking strategy, attributing strong financial results to solid loan growth and prudent balance sheet management, while also noting the company's recognition for consistent earnings growth - The Community Banking strategy continues to produce strong financial results, driven by solid loan growth and prudent balance sheet management[5](index=5&type=chunk) - Net income increased **46% year over year**, and net interest margin expanded on a linked quarter basis[5](index=5&type=chunk) - Magyar Bancorp's stock price increased over **17%** during the quarter and was included in Keefe Bruyette & Woods' 2025 Honor Roll for consistent earnings growth over the past decade[5](index=5&type=chunk) [Results of Operations - Three Months Ended June 30, 2025](index=1&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025) [Net Income and Key Drivers](index=1&type=section&id=Net%20Income%20and%20Key%20Drivers_Q3) Net income for the three months ended June 30, 2025, increased by $779 thousand, or 46.1%, to $2.5 million, primarily driven by higher net interest income and other income, partially offset by increased provisions for credit loss, other expenses, and income tax expense Net Income (QoQ) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Income | $2.5 million | $1.7 million | $779K | 46.1% | - The increase in net income was primarily due to higher net interest income and other income, partially offset by higher provisions for credit loss, other expenses, and income tax expense[6](index=6&type=chunk) [Net Interest and Dividend Income](index=1&type=section&id=Net%20Interest%20and%20Dividend%20Income_Q3) Net interest and dividend income rose by 20.5% to $8.2 million, driven by a 33-basis point increase in net interest margin to 3.35% and a $78.4 million increase in average interest-earning assets, with interest income increasing due to higher yields and loan balances, while interest expense rose despite a decrease in the cost of liabilities Net Interest and Dividend Income (QoQ) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Interest & Dividend Income | $8.2 million | $6.8 million | $1.4 million | 20.5% | | Net Interest Margin | 3.35% | 3.02% | +33 bps | | | Interest & Dividend Income | $14.0 million | $12.3 million | $1.7 million | 13.5% | | Interest Expense | $5.8 million | $5.5 million | $267K | 4.8% | - The increase in net interest income was attributable to a **33-basis point increase** in net interest margin and a **$78.4 million increase** in the average balance of interest-earning assets[7](index=7&type=chunk) - Interest expense increased due to an **$85.5 million (12.4%) increase** in the average balance of interest-bearing liabilities, partially offset by a **22-basis point decrease** in the cost of such liabilities to 3.02%[9](index=9&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses_Q3) The Company recorded a net provision for credit losses of $101 thousand for the three months ended June 30, 2025, a shift from a net recovery in the prior year, primarily due to growth in commercial real estate, residential mortgage, and commercial business loans Provision for Credit Losses (QoQ) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | Net Provision for Credit Losses | $101 thousand | ($54 thousand) | | Net Loan Recoveries | $3 thousand | $1 thousand | - Higher provision for credit losses resulted from growth in commercial real estate, residential mortgage, and commercial business loans, partially offset by lower construction loan balances[10](index=10&type=chunk) [Other Income](index=2&type=section&id=Other%20Income_Q3) Other income increased significantly by 55.5% to $636 thousand, mainly driven by higher income from bank-owned life insurance due to policy restructuring and increased service fee income from commercial loan prepayment and late charges Other Income (QoQ) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Other Income | $636 thousand | $409 thousand | $227K | 55.5% | | BOLI Income | $172 thousand | $93 thousand | $79K | 84.9% | | Service Fees | $340 thousand | $282 thousand | $58K | 20.6% | - The increase in other income was primarily due to higher income on bank-owned life insurance (up **84.9%**) resulting from policy restructuring and higher service fee income (up **20.6%**) from commercial loan prepayment and late charges[11](index=11&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses_Q3) Other expenses increased by 3.6% to $5.2 million, primarily due to higher compensation and benefit expenses, which rose by 7.3% to $3.1 million, driven by increased medical benefits, incentive accruals, and annual merit increases Other Expenses (QoQ) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Other Expenses | $5.2 million | $5.0 million | $184K | 3.6% | | Compensation & Benefit Expense | $3.1 million | $2.9 million | $211K | 7.3% | - The increase in other expenses was primarily attributable to higher compensation and benefit expense due to increased medical benefits, incentive accruals, and annual merit increases[12](index=12&type=chunk) [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense_Q3) Income tax expense increased to $1.0 million on higher pre-tax income of $3.5 million, resulting in an effective tax rate of 28.9% for the quarter, up from 22.9% in the prior year, partly due to changes in deferred tax items Income Tax Expense (QoQ) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :----------------- | :--------------------------- | :--------------------------- | | Income Tax Expense | $1.0 million | $501 thousand | | Pre-tax Income | $3.5 million | $2.2 million | | Effective Tax Rate | 28.9% | 22.9% | - The increase in income tax expense was driven by higher pre-tax income and changes in deferred tax items that lowered the Company's tax expense in the prior year[13](index=13&type=chunk) [Results of Operations - Nine Months Ended June 30, 2025](index=2&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20June%2030%2C%202025) [Net Income and Key Drivers](index=2&type=section&id=Net%20Income%20and%20Key%20Drivers_9M) Net income for the nine months ended June 30, 2025, increased by $2.0 million, or 38.1%, to $7.2 million, primarily due to higher net interest income, lower provisions for credit loss, and increased other income, partially offset by higher other expenses and income tax expense Net Income (YoY 9M) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Income | $7.2 million | $5.2 million | $2.0 million | 38.1% | - The increase in net income was due to higher net interest income, lower provisions for credit loss, and higher other income, partially offset by higher other expenses and income tax expense[14](index=14&type=chunk) [Net Interest and Dividend Income](index=3&type=section&id=Net%20Interest%20and%20Dividend%20Income_9M) Net interest and dividend income increased by 12.2% to $23.5 million for the nine-month period, driven by a $67.0 million increase in average interest-earning assets and a 14-basis point expansion in net interest margin to 3.30%, with interest income growing due to higher asset yields and increased average net loans receivable, while interest expense rose despite a decrease in the average cost of interest-bearing liabilities Net Interest and Dividend Income (YoY 9M) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Interest & Dividend Income | $23.5 million | $21.0 million | $2.5 million | 12.2% | | Net Interest Margin | 3.30% | 3.16% | +14 bps | | | Interest & Dividend Income | $40.4 million | $35.8 million | $4.6 million | 12.9% | | Interest Expense | $16.9 million | $14.8 million | $2.1 million | 13.9% | - The increase in net interest income was attributable to a **$67.0 million (7.6%) increase** in the average balance of interest-earning assets and a **14-basis point increase** in net interest margin[15](index=15&type=chunk) - Interest expense increased due to a **$100.2 million (15.5%) increase** in the average balance of interest-bearing liabilities, despite a **four-basis point decrease** in the average cost of such liabilities[17](index=17&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses_9M) The provision for credit losses decreased to $172 thousand for the nine months ended June 30, 2025, from $441 thousand in the prior year, primarily due to lower construction loan commitments, which offset growth in other loan categories Provision for Credit Losses (YoY 9M) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | Provision for Credit Losses | $172 thousand | $441 thousand | | Net Loan Recoveries | $111 thousand | $67 thousand | - The lower provision for credit losses resulted from lower construction loan commitments, which more than offset growth in commercial real estate, residential mortgage, and commercial business loans[18](index=18&type=chunk) [Other Income](index=3&type=section&id=Other%20Income_9M) Other income significantly increased by 74.5% to $2.9 million for the nine-month period, primarily driven by higher gains from the sale of Small Business Administration 7(a) loans, as well as increased gains from OREO sales, commercial loan prepayment charges, late charges, and bank-owned life insurance income Other Income (YoY 9M) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Other Income | $2.9 million | $1.6 million | $1.3 million | 74.5% | | Gains from SBA 7(a) loan sales | $848 thousand | $342 thousand | $506K | 147.9% | - The increase in other income was primarily due to higher gains from the sale of Small Business Administration 7(a) loans, and also higher gains from OREO sales, commercial loan prepayment charges, late charges, and bank-owned life insurance policies[19](index=19&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses_9M) Other expenses increased by 5.7% to $16.0 million for the nine months, mainly due to higher compensation and benefit expenses (up 7.6% to $9.4 million) from increased medical benefits, incentive accruals, and merit increases, with occupancy expense also rising due to lease termination expenses from an office closure Other Expenses (YoY 9M) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Other Expenses | $16.0 million | $15.2 million | $863K | 5.7% | | Compensation & Benefit Expense | $9.4 million | $8.7 million | $663K | 7.6% | | Occupancy Expense | $2.6 million | $2.4 million | $222K | 9.2% | - The increase in other expenses was primarily attributable to higher compensation and benefit expense and increased occupancy expense due to lease termination expenses related to an office closure[20](index=20&type=chunk) [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense_9M) Income tax expense for the nine months increased to $2.9 million on pre-tax income of $10.1 million, resulting in an effective tax rate of 28.6%, up from 24.8% in the prior year Income Tax Expense (YoY 9M) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :----------------- | :--------------------------- | :--------------------------- | | Income Tax Expense | $2.9 million | $1.7 million | | Pre-tax Income | $10.1 million | $7.0 million | | Effective Tax Rate | 28.6% | 24.8% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) [Assets](index=4&type=section&id=Assets) Total assets increased by 3.7% to $987.5 million at June 30, 2025, primarily driven by higher loans receivable, partially offset by decreases in cash and investment securities, with cash balances decreasing due to deployment into loans and seasonal municipal deposit outflows Asset Changes (vs. Sep 30, 2024) | Metric | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :----------------- | :--------- | :--------- | | Total Assets | $987.5 million | $951.9 million | $35.6 million | 3.7% | | Cash & Interest-Earning Deposits | $7.1 million | $25.6 million | ($18.5 million) | -72.5% | | Investment Securities | $91.1 million | $95.4 million | ($4.3 million) | -4.5% | - The increase in total assets was attributable to higher loans receivable, partially offset by lower cash and investment securities[22](index=22&type=chunk) - Cash and interest-earning deposits decreased due to deployment into loans receivable and seasonal municipal deposit outflows[23](index=23&type=chunk) [Loans and Asset Quality](index=4&type=section&id=Loans%20and%20Asset%20Quality) Total loans receivable increased by 8.2% to $845.4 million, primarily in commercial real estate, residential real estate, and construction loans, while non-performing loans increased significantly, raising the ratio of non-performing loans to total loans to 0.11%, and the allowance for credit losses also increased to $8.3 million Loan and Asset Quality Changes (vs. Sep 30, 2024) | Metric | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :----------------- | :--------- | :--------- | | Total Loans Receivable | $845.4 million | $781.2 million | $64.2 million | 8.2% | | Non-Performing Loans | $920 thousand | $232 thousand | $688K | 296.6% | | Non-Performing Loans to Total Loans | 0.11% | 0.03% | +0.08% | | | Allowance for Credit Losses | $8.3 million | $8.0 million | $283K | 3.5% | | Allowance for Credit Losses to Total Loans | 0.98% | 1.02% | -0.04% | | - Total loans receivable increased primarily in commercial real estate loans (**$62.7 million**), one-to four-family residential real estate loans (**$3.7 million**), and construction and land loans (**$3.2 million**)[25](index=25&type=chunk) - Non-performing loans increased by **$688 thousand**, leading to an increase in the ratio of non-performing loans to total loans from **0.03% to 0.11%**[26](index=26&type=chunk) [Liabilities and Equity](index=4&type=section&id=Liabilities%20and%20Equity) Total deposits increased by 2.9% to $820.0 million, driven by growth in money market accounts, certificates of deposit, and savings accounts, partially offset by decreases in checking accounts, while book value per share increased to $18.03, reflecting operational results despite dividend payments and share repurchases Liabilities and Equity Changes (vs. Sep 30, 2024) | Metric | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------- | :------------ | :----------------- | :--------- | :--------- | | Total Deposits | $820.0 million | $796.7 million | $23.3 million | 2.9% | | Money Market Accounts | $330.9 million | $304.6 million | $26.3 million | 8.6% | | Certificates of Deposit | $180.5 million | $159.6 million | $20.9 million | 13.1% | | Non-Interest Bearing Checking | $116.3 million | $132.8 million | ($16.5 million) | -12.4% | | Book Value Per Share | $18.03 | $16.98 | $1.05 | 6.2% | - Total deposits increased, with significant inflows in money market accounts (up **8.6%**) and certificates of deposit (up **13.1%**), partially offset by decreases in non-interest bearing and interest-bearing checking accounts[28](index=28&type=chunk) - Book value per share increased due to the Company's results from operations, partially offset by **$0.21 in dividends paid** and **60,410 shares repurchased**[29](index=29&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) [About Magyar Bancorp](index=5&type=section&id=About%20Magyar%20Bancorp) Magyar Bancorp is the parent company of Magyar Bank, a community bank based in New Brunswick, New Jersey, serving Central New Jersey families and businesses since 1922, operating seven branch locations - Magyar Bancorp is the parent company of Magyar Bank, a community bank headquartered in New Brunswick, New Jersey[30](index=30&type=chunk) - Magyar Bank has been serving Central New Jersey since 1922 and operates seven branch locations[30](index=30&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, highlighting that such statements are subject to numerous risks and uncertainties, including general economic conditions, interest rate changes, regulatory considerations, and market acceptance, with the Company cautioning readers not to place undue reliance on these statements and disclaiming any obligation to update them - The press release contains forward-looking statements subject to numerous risks and uncertainties, including general economic conditions, changes in interest rates, regulatory considerations, competition, and technological developments[31](index=31&type=chunk) - The Company cautions readers not to place undue reliance on forward-looking statements and disclaims any obligation to publicly release revisions to reflect future events or circumstances[31](index=31&type=chunk) [Selected Financial Data](index=6&type=section&id=Selected%20Financial%20Data) [Income Statement Data and Ratios](index=6&type=section&id=Income%20Statement%20Data%20and%20Ratios) This section provides a detailed breakdown of the Company's income statement data and key financial ratios for the three and nine months ended June 30, 2025, compared to the same periods in 2024, including net income, EPS, return on assets, return on equity, and net interest margin Income Statement Data and Ratios | Metric (in thousands, except per-share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Interest and dividend income | $13,988 | $12,327 | $40,417 | $35,805 | | Interest expense | $5,810 | $5,543 | $16,919 | $14,853 | | Net interest and dividend income | $8,178 | $6,784 | $23,498 | $20,952 | | Provision for credit losses | $101 | ($54) | $172 | $441 | | Other income | $636 | $409 | $2,860 | $1,639 | | Other expense | $5,239 | $5,055 | $16,047 | $15,184 | | Income before income tax expense | $3,474 | $2,192 | $10,139 | $6,966 | | Income tax expense | $1,004 | $501 | $2,904 | $1,726 | | Net income | $2,470 | $1,691 | $7,235 | $5,240 | | Net income per share-basic | $0.40 | $0.27 | $1.16 | $0.82 | | Net income per share-diluted | $0.40 | $0.27 | $1.16 | $0.82 | | Book value per share, at period end | $18.03 | $16.55 | $18.03 | $16.55 | | Return on average assets (annualized) | 0.96% | 0.71% | 0.96% | 0.75% | | Return on average equity (annualized) | 8.84% | 6.41% | 8.25% | 6.37% | | Net interest margin (annualized) | 3.35% | 3.02% | 3.30% | 3.16% | [Balance Sheet and Asset Quality Data](index=7&type=section&id=Balance%20Sheet%20and%20Asset%20Quality%20Data) This section presents key balance sheet figures and asset quality metrics as of June 30, 2025, compared to September 30, 2024, including total assets, loans, deposits, borrowings, shareholders' equity, non-performing loans, and related ratios Balance Sheet and Asset Quality Data | Metric (in thousands) | June 30, 2025 | September 30, 2024 | | :-------------------------------------------------- | :------------ | :----------------- | | Assets | $987,488 | $951,918 | | Total loans receivable | $843,991 | $780,162 | | Allowance for credit losses - loans | ($8,059) | ($7,548) | | Investment securities - available for sale | $21,604 | $15,616 | | Investment securities - held to maturity | $69,520 | $79,816 | | Deposits | $819,962 | $796,674 | | Borrowings | $36,054 | $28,568 | | Shareholders' Equity | $116,323 | $110,548 | | Non-performing loans | $920 | $232 | | Other real estate owned | $2,167 | $3,725 | | Total non-performing assets | $3,087 | $3,957 | | Allowance for credit losses to total loans receivable | 0.95% | 0.97% | | Non-performing loans to total loans receivable | 0.11% | 0.03% | | Non-performing assets to total assets | 0.31% | 0.42% | | Non-performing assets to total equity | 2.65% | 3.58% |

Core Viewpoint - Magyar Bancorp reported a significant increase in net income for both the three and nine months ended June 30, 2025, driven by strong loan growth and improved net interest margins [2][4][13]. Financial Performance - Net income for the three months ended June 30, 2025, rose by 46% to $2.5 million from $1.7 million in the same period of 2024 [2][5]. - For the nine months ended June 30, 2025, net income increased by 38.1% to $7.2 million compared to $5.2 million for the same period in 2024 [13]. - Basic and diluted earnings per share for the three months ended June 30, 2025, were $0.40, up from $0.27 in 2024, while for the nine months, they were $1.16 compared to $0.82 in 2024 [3][33]. Revenue and Income Sources - Net interest and dividend income for the three months ended June 30, 2025, increased by 20.5% to $8.2 million, attributed to a 33-basis point rise in net interest margin to 3.35% [6][33]. - Interest and dividend income for the nine months ended June 30, 2025, rose by 12.9% to $40.4 million, driven by a 27-basis point increase in yield on interest-earning assets [15][33]. - Other income for the three months ended June 30, 2025, increased by 55.5% to $636 thousand, primarily due to higher income from bank-owned life insurance [10][33]. Expenses and Provisions - Other expenses for the three months ended June 30, 2025, increased by 3.6% to $5.2 million, mainly due to higher compensation and benefit expenses [11][33]. - The provision for credit losses for the three months ended June 30, 2025, was $101 thousand, compared to a net recovery of $54 thousand in 2024 [9][33]. - For the nine months ended June 30, 2025, the provision for credit losses was $172 thousand, down from $441 thousand in 2024 [17][33]. Balance Sheet Highlights - Total assets increased by 3.7% to $987.5 million as of June 30, 2025, driven by higher loans receivable [22][33]. - Total loans receivable rose by 8.2% to $845.4 million, with significant increases in commercial real estate and residential real estate loans [25][33]. - Total deposits increased by 2.9% to $820.0 million, with notable inflows in money market accounts and certificates of deposit [28][33]. Stockholder Returns - The Board of Directors declared an increase in the quarterly cash dividend to $0.08 per share, payable on August 21, 2025 [3]. - The book value per share increased to $18.03 at June 30, 2025, from $16.98 at September 30, 2024 [29][33].

Financial Position - Total assets increased by $69.9 million, or 7.3%, to $1.0 billion at March 31, 2025, from $951.9 million at September 30, 2024[90]. - Total deposits increased by $61.0 million, or 7.7%, to $857.7 million at March 31, 2025, from $796.7 million at September 30, 2024[104]. - Stockholders' equity rose by $3.7 million, or 3.4%, to $114.3 million at March 31, 2025, from $110.5 million at September 30, 2024[109]. - Total loans receivable increased by $28.8 million, or 3.7%, to $809.0 million at March 31, 2025, with commercial real estate loans growing by $33.9 million, or 7.4%[92]. - Investment securities totaled $94.0 million at March 31, 2025, reflecting a decrease of $1.4 million, or 1.5%, from $95.4 million at September 30, 2024[100]. - Borrowings increased by $5.3 million, or 18.7%, to $33.9 million at March 31, 2025, from $28.6 million at September 30, 2024[107]. Loan and Credit Quality - Non-performing loans decreased by $151 thousand, or 65.1%, to $81 thousand at March 31, 2025, from $232 thousand at September 30, 2024[97]. - The allowance for credit losses increased by $179 thousand to $8.2 million, or 0.98% of total loans receivable, during the six months ended March 31, 2025[98]. - The provision for credit losses recorded a net reduction of $30 thousand for the three months ended March 31, 2025, compared to a $14 thousand provision in the same period of 2024[124]. Income and Earnings - Net income increased by $784 thousand, or 41.3%, to $2.7 million for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024[116]. - Net income rose by $1.2 million, or 34.3%, to $4.8 million for the six months ended March 31, 2025, compared to $3.5 million for the same period in 2024[133]. - Net interest and dividend income rose by $953 thousand, or 13.8%, to $7.9 million for the three months ended March 31, 2025, from $6.9 million in the prior year[117]. - Net interest and dividend income increased by $1.1 million, or 8.1%, to $15.3 million for the six months ended March 31, 2025, from $14.2 million for the same period in 2024[134]. - Other income surged by $646 thousand, or 103.9%, to $1.3 million during the three months ended March 31, 2025, compared to $622 thousand for the same period in 2024[126]. - Other income increased by $994 thousand, or 80.7%, to $2.2 million during the six months ended March 31, 2025, compared to $1.2 million for the same period in 2024[142]. Interest and Expenses - Interest and dividend income increased by $1.6 million, or 13.5%, to $13.5 million for the three months ended March 31, 2025, compared to $11.9 million for the same period in 2024[118]. - Interest expense increased by $651 thousand, or 13.0%, to $5.6 million for the three months ended March 31, 2025, from $5.0 million in the prior year[121]. - Interest expense increased by $1.8 million, or 19.3%, to $11.1 million for the six months ended March 31, 2025, compared to $9.3 million for the same period in 2024[138]. - Compensation and benefit expense increased by $452 thousand, or 7.7%, to $6.3 million during the six months ended March 31, 2025, from $5.9 million for the same period in 2024[146]. Asset Management - The average balance of loans receivable increased by $76.6 million, or 10.5%, to $803.4 million during the three months ended March 31, 2025[119]. - The average balance of loans receivable increased by $79.7 million, or 11.1%, to $794.6 million during the six months ended March 31, 2025, from $714.9 million for the same period in 2024[136]. - The average balance of interest-bearing deposits rose by $113.0 million, or 18.4%, to $726.7 million for the three months ended March 31, 2025[122]. - The average balance of interest-bearing deposits increased by $105.9 million, or 17.7%, to $703.4 million for the six months ended March 31, 2025, from $597.5 million for the same period in 2024[139]. Taxation - The effective tax rate for the six months ended March 31, 2025 was 28.5%, compared to 25.7% for the same period in 2024[148]. Shareholder Value - The book value per share increased to $17.65 at March 31, 2025, from $16.98 at September 30, 2024[109]. - The yield on interest-earning assets increased by 23 basis points to 5.68% for the three months ended March 31, 2025, from 5.45% in the prior year[118]. - The net interest margin improved by 14 basis points to 3.31% for the three months ended March 31, 2025, from 3.17% in the previous year[117]. Service Charges - Service charges increased by $210 thousand, or 35.2%, to $807 thousand during the six months ended March 31, 2025, from $597 thousand for the same period in 2024[144]. Borrowing Capacity - The Company had an aggregate net borrowing capacity of $128.8 million based on eligible loan collateral pledged to the FHLBNY at March 31, 2025[149].

Financial Performance - The company reported a 41% increase in net income to $2.7 million for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024[3]. - Basic and diluted earnings per share rose to $0.43 for the three months ended March 31, 2025, up from $0.30 for the same period in 2024[4]. - Net income for the six months ended March 31, 2025, was $4,765,000, up from $3,549,000 in 2024, reflecting a year-over-year increase of 34.3%[35]. - Other income for the three months ended March 31, 2025, was $1,268,000, significantly higher than $622,000 in the same period of 2024, marking a 104.0% increase[35]. Income and Revenue - Net interest and dividend income increased by $953 thousand, or 13.8%, to $7.9 million for the quarter ended March 31, 2025[8]. - Interest and dividend income grew by $1.6 million, or 13.5%, to $13.5 million for the three months ended March 31, 2025[9]. - Interest and dividend income increased to $13,524,000 for the three months ended March 31, 2025, compared to $11,920,000 for the same period in 2024, representing a growth of 13.5%[35]. Assets and Loans - Total assets increased by $69.9 million, or 7.3%, to $1.0 billion at March 31, 2025[23]. - Total loans receivable rose by $29.0 million, or 3.7%, to $810.2 million at March 31, 2025[26]. - Total assets reached $1,021,863,000 as of March 31, 2025, compared to $951,918,000 in 2024, showing an increase of 7.3%[36]. - Total loans receivable amounted to $808,993,000, up from $780,162,000 in the previous year, reflecting a growth of 3.7%[36]. Deposits and Dividends - Total deposits increased by $61.0 million, or 7.7%, to $857.7 million at March 31, 2025[29]. - The company declared a quarterly cash dividend of $0.06 per share, payable on May 28, 2025[5]. Credit Losses and Allowances - The allowance for credit losses increased to $8.2 million, or 0.98% of total loans receivable, during the six months ended March 31, 2025[28]. - The allowance for credit losses on loans was reported at $(7,936,000) for the period, indicating a decrease in provisions compared to $(7,548,000) in the previous year[36]. Tax and Margins - The effective tax rate for the three months ended March 31, 2025 was 29.0%, compared to 21.7% for the same period in 2024[14]. - The net interest margin improved to 3.31% for the three months ended March 31, 2025, compared to 3.17% for the same period in 2024[35]. Returns and Book Value - Return on average assets increased to 1.05% for the three months ended March 31, 2025, up from 0.81% in 2024[35]. - Return on average equity rose to 9.55% for the three months ended March 31, 2025, compared to 7.13% in 2024[35]. - Book value per share at the end of the period was $17.65, an increase from $16.30 in the previous year[35].

Financial Performance - Net income increased by $443 thousand, or 26.2%, to $2.1 million for the three months ended December 31, 2024, compared to $1.7 million for the same period in 2023[107] - Net interest and dividend income rose by $200 thousand, or 2.8%, to $7.4 million for the three months ended December 31, 2024, from $7.2 million in the prior year[108] - Interest and dividend income increased by $1.3 million, or 11.7%, to $12.9 million for the three months ended December 31, 2024, driven by a 33-basis point increase in yield on earning assets to 5.59%[109] - Average balance of loans receivable increased by $82.8 million to $786.0 million, with yield on loans rising 30 basis points to 5.99% for the three months ended December 31, 2024[110] - Other income increased by $347 thousand, or 57.0%, to $956 thousand during the three months ended December 31, 2024, attributed to higher gains on the sale of other real estate owned and SBA loans[116] - Other expenses rose by $389 thousand, or 7.7%, to $5.4 million for the three months ended December 31, 2024, primarily due to higher compensation and occupancy expenses[117] - The effective tax rate for the three months ended December 31, 2024, was 27.9%, compared to 29.8% for the same period in 2023[120] Asset and Liability Management - Total assets increased by $56.5 million, or 5.9%, to $1.0 billion at December 31, 2024, from $951.9 million at September 30, 2024[90] - Total loans receivable rose by $25.3 million, or 3.2%, to $805.5 million at December 31, 2024, primarily driven by a $20.1 million increase in commercial real estate loans[92] - Total deposits increased by $52.2 million, or 6.5%, to $848.8 million at December 31, 2024, with significant inflows in money market accounts and interest-bearing checking accounts[101] - Borrowings increased by $1.9 million, or 6.5%, to $30.4 million at December 31, 2024, following additional borrowing from the Federal Home Loan Bank[102] - Investment securities totaled $98.0 million at December 31, 2024, reflecting a $2.6 million increase, primarily due to the purchase of mortgage-backed securities[99] Credit Quality - The allowance for credit losses increased by $204 thousand to $8.2 million, or 1.02% of total loans receivable, during the quarter ended December 31, 2024[97] - Non-performing loans rose by $107 thousand, or 46.1%, to $339 thousand at December 31, 2024, with the ratio of non-performing loans to total loans increasing to 0.04%[96] - The Company reported a decrease in non-performing commercial real estate loans from $116 thousand at September 30, 2024, to $0 at December 31, 2024[95] - Provision for credit losses decreased to $101 thousand for the three months ended December 31, 2024, compared to $481 thousand in the same period of 2023[115] Equity and Capital - Stockholders' equity grew by $1.1 million, or 1.0%, to $111.7 million at December 31, 2024, attributed to operational results and share repurchases[103] - The Company’s book value per share increased to $17.23 at December 31, 2024, from $16.98 at September 30, 2024[103] - At December 31, 2024, the Bank's Tier 1 capital as a percentage of total assets was 11.20%[123]