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Magyar Bancorp, Inc. (MGYR)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 net income was $2.53M with diluted EPS of $0.40 (basic $0.41), essentially flat year over year, as higher net interest income and lower tax expense were offset by higher credit loss provisions and the absence of prior-year OREO gains .
  • Net interest margin expanded to 3.47% in Q4 (from 3.35% in Q3 and 3.31% in Q2), driven by loan repricing and lower cost of interest-bearing liabilities, a key support to earnings momentum .
  • Loans grew to $857.4M at FY-end, up 9.9% year over year, while non-performing loans fell to $451K in Q4 (0.05% of loans), signaling improving asset quality into year-end .
  • The Board declared a $0.08 quarterly dividend payable Nov 25, 2025; total equity rose to $118.8M and book value per share increased to $18.34 .
  • Management highlighted a 40% stock price increase from Sep 30, 2024 to Sep 30, 2025 as validation of strategy and performance, a potential sentiment catalyst; no explicit financial guidance ranges were provided for FY2026 .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expansion continued through Q4, reaching 3.47% on higher loan yields and lower deposit costs, underpinning stronger net interest and dividend income of $8.40M in Q4 .
  • Loan growth of 9.9% year over year was concentrated in commercial real estate (+15.6%) and construction (+28.9%), boosting earning assets and reinforcing NIM trends .
  • Asset quality improved into Q4: NPLs decreased to $451K (0.05% of loans), with payoffs and cures noted; allowance coverage remained 0.97% of loans .
  • “We are proud to announce record earnings for Magyar Bancorp,” and the CEO cited prudent balance sheet management and 10% loan growth as drivers of a 25% year-over-year net income increase for FY2025 .

What Went Wrong

  • Non-interest income fell 56.8% year over year in Q4 to $0.85M due to no OREO sale gains versus $1.3M in the prior-year quarter, partially offset by swap fees and loan service charges .
  • Provision for credit losses rose to $0.23M in Q4, reflecting growth in CRE loans and construction commitments, modestly pressuring pre-tax earnings versus prior year .
  • Interest expense edged up 2.6% year over year to $5.89M in Q4; while the cost of liabilities decreased, average interest-bearing liabilities rose 9.2% .
  • The company did not provide explicit quantitative guidance ranges (revenue, margins, tax rate) for FY2026; investors must infer trajectory from commentary and quarterly trends .

Financial Results

MetricQ2 2025Q3 2025Q4 2025
Net Income ($USD Millions)$2.681 $2.470 $2.525
Diluted EPS ($USD)$0.43 $0.40 $0.40
Basic EPS ($USD)$0.43 $0.40 $0.41
Net Interest & Dividend Income ($USD Millions)$7.876 $8.178 $8.398
Other Income ($USD Millions)$1.268 $0.636 $0.853
Total Revenue ($USD Millions) (Net Interest + Other Income)$9.144 $8.814 $9.251
Net Interest Margin (%)3.31% 3.35% 3.47%
Return on Avg Assets (%)1.05% 0.96% 1.00%
Return on Avg Equity (%)9.55% 8.84% 9.05%
Provision for Credit Losses ($USD Millions)-$0.030 $0.101 $0.229
Interest Expense ($USD Millions)$5.648 $5.810 $5.891
Interest & Dividend Income ($USD Millions)$13.524 $13.988 $14.289

KPIs and balance sheet

KPIQ2 2025Q3 2025Q4 2025
Assets ($USD Millions)$1,021.9 $987.5 $997.7
Total Loans Receivable ($USD Millions)$809.0 $844.0 $857.4
Deposits ($USD Millions)$857.7 $820.0 $814.3
Borrowings ($USD Millions)$33.9 $36.1 $49.1
Book Value Per Share ($USD)$17.65 $18.03 $18.34
Non-Performing Loans ($USD Thousands)$81 $920 $451
NPLs / Total Loans (%)0.01% 0.11% 0.05%
Allowance to Total Loans (%)0.98% 0.95% 0.97%
Other Real Estate Owned ($USD Millions)$2.54 $2.17 $2.17

Segment breakdown: Not applicable; the company does not report segment revenue .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per Share ($)Q4 2025$0.08 (Q3 declared Aug 21 payment) $0.08 payable Nov 25, 2025; record Nov 13, 2025 Maintained
Net Interest MarginFY/Q4Not provided Not provided N/A
Revenue, OpEx, OI&E, Tax RateFY/Q4Not provided Not provided N/A
Share RepurchaseFY202560,410 shares repurchased YTD through Q3 20,000 shares repurchased FY2025; 5% authorization outstanding Lower reported FY total vs Q3 YTD disclosure (document discrepancy)

Earnings Call Themes & Trends

Note: No Q4 2025 earnings call transcript found; themes summarized from quarterly press releases [SearchDocuments result none] .

TopicPrevious Mentions (Q2 2025)Previous Mentions (Q3 2025)Current Period (Q4 2025)Trend
Net interest margin and deposit costsNIM 3.31%; liability cost down to 3.02%; average liabilities +18.1% NIM 3.35%; liability cost 3.02%; liabilities +12.4% NIM 3.47%; liability cost down to 3.10%; liabilities +9.2% Improving margin with easing funding costs
Loan growth and mixLoans +3.7% YTD; CRE +$33.9M; construction down; residential up Loans +8.2% YTD; CRE +$62.7M; construction +$3.2M; residential +$3.7M Loans +9.9% FY; CRE +15.6%; construction +28.9%; residential +1.2% Broad-based growth led by CRE/construction
Asset qualityNPLs down to $81K; 0.01% of loans; OREO $2.54M NPLs up to $920K; 0.11% of loans; OREO $2.17M NPLs down to $451K; 0.05% of loans; OREO $2.17M Volatility in Q3; improvement in Q4
Non-interest income driversSBA gains +$0.399M; higher BOLI income Other income +$0.227M YoY; higher BOLI, service fees Non-interest income -56.8% YoY; no OREO gains; swap/loan fees up modestly Normalization without OREO sales
BOLI restructurePolicies restructured; higher crediting rate supports income Continued benefit to BOLI income Final surrendered proceeds Aug 2025; crediting rate increased to 4.67% (6.67% tax-equivalent) Structural yield uplift sustained

Management Commentary

  • “We are proud to announce record earnings for Magyar Bancorp… A 20 basis point increase in our net interest margin from the prior year, combined with prudent balance sheet management and a 10% growth in the loan portfolio led to a 25% increase in net income from the prior year end.” — John Fitzgerald, President & CEO .
  • “We are pleased to provide our shareholders with a strong return this past year, and Management feels the Bank is well positioned to continue its strong performance in our next fiscal year.” — John Fitzgerald, President & CEO .
  • Management attributed higher asset yields to loan originations and repricing of adjustable-rate commercial term loans; deposit costs benefited from lower short-term market rates .

Q&A Highlights

  • No Q4 2025 earnings call transcript was found; no Q&A highlights available [SearchDocuments result none].

Estimates Context

  • S&P Global consensus estimates for MGYR were unavailable for Q4 2025 (EPS and revenue), as well as for prior quarters; therefore, no beat/miss comparison versus Street expectations could be made [GetEstimates returned no consensus].
  • Actual revenue series (S&P Global) recorded: Q2 2025 $9.174M*, Q3 2025 $8.713M*, Q4 2025 $9.022M*. Values retrieved from S&P Global.*
MetricQ2 2025Q3 2025Q4 2025
S&P Global EPS Consensus Mean ($)N/A*N/A*N/A*
S&P Global Revenue Consensus Mean ($USD Millions)N/A*N/A*N/A*
Actual Revenue ($USD Millions)9.174*8.713*9.022*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margin trajectory is favorable: NIM expanded to 3.47% in Q4, supported by repricing in CRE loans and lower deposit costs; this should remain a core earnings lever if rate backdrop stays benign .
  • Credit quality improved at year-end with NPLs down to $451K (0.05% of loans), while the allowance ratio held at ~0.97%; higher Q4 provisioning reflected growth rather than deterioration .
  • Non-interest income normalized without OREO gains; recurring fee streams (swap fees, service charges) partially offset volatility, reducing reliance on episodic gains .
  • Balance sheet growth remains disciplined: loans +9.9% FY with deposit mix shifts (CDs up, money market/non-interest checking down), and higher FHLB borrowings to match-fund CRE originations .
  • Capital actions support shareholder returns: $0.08 quarterly dividend maintained and book value per share up to $18.34; repurchase authorization still available (up to ~5% of shares) .
  • With no explicit FY2026 guidance and limited Street coverage, quarterly NIM, credit cost, and deposit mix updates will be the key narrative drivers; watch for sustainability of margin expansion and fee income mix .
  • Documented year-over-year stock appreciation (+40%) signals improving investor sentiment; continuation likely hinges on consistent core earnings growth and asset quality stability .