Magyar Bancorp (MGYR) Q1 2026 earnings summary

Executive summary

• Net income rose 50.4% year-over-year to $3.1 million for the quarter ended December 31, 2025, driven by higher net interest income, lower credit loss provisions, and reduced expenses.

• Total assets increased 4.8% to $1.045 billion, supported by growth in interest-earning deposits, investment securities, and loans receivable.

• Book value per share increased to $18.79 from $18.34 sequentially and from $17.23 year-over-year.

• Basic and diluted EPS increased to $0.51 and $0.50, respectively, from $0.34 in the prior year period.

• Quarterly cash dividend of $0.10 per share declared, payable February 26, 2026.

Financial highlights

• Net interest and dividend income grew 19.0% year-over-year to $8.9 million, with net interest margin expanding to 3.59% from 3.22%.

• Interest and dividend income rose 12.8% to $14.6 million, while interest expense increased 4.4% to $5.7 million.

• Provision for credit losses dropped 78.2% to $23 thousand; allowance for credit losses increased to $8.4 million, or 0.96% of total loans.

• Total deposits increased 5.5% to $859.1 million, with growth in certificates of deposit and non-interest bearing checking accounts.

• Other expenses decreased 1% to $5.4 million, with occupancy costs down 17.4%.

Outlook and guidance

• Management expects continued net interest margin improvement due to ongoing yield curve normalization and higher loan repricing.

• Management highlights strong asset quality and robust capital ratios, with Tier 1 capital at 11.42% of total assets and total qualifying capital at 15.77% of risk-weighted assets.

• No material changes to risk factors or forward-looking statements; management remains cautious about economic and market uncertainties.