Magyar Bancorp Reports 26% Increase in Net Income for Q1 2025: Financial Results and Dividend Declaration

Magyar Bancorp, Inc., the parent company of Magyar Bank, disclosed its financial results for the first quarter of 2025 in a recent press release. The company reported a noteworthy 26% surge in net income for the three months ended December 31, 2024, reaching $2.1 million compared to $1.7 million for the same period in 2023. Basic and diluted earnings per share also saw an increase, standing at $0.34 and $0.33, respectively, for the quarter, compared to $0.26 in the prior year.

The Board of Directors of Magyar Bancorp declared a quarterly cash dividend of $0.06 per share. This dividend is scheduled to be distributed on February 20, 2025, to shareholders of record as of February 6, 2025. The company expressed satisfaction with the positive earnings report, mentioning that total assets crossed the $1 billion milestone in the quarter, largely fueled by a 6.5% increase in total deposits.

John Fitzgerald, the President and Chief Executive Officer of Magyar Bancorp, shared his optimism about the results. He emphasized the solid increase in earnings and the bank’s liquidity, attributing the robust performance to a growing loan pipeline and improved net interest margin following the Federal Reserve’s rate adjustments towards the end of 2024.

Financially, the company noted key figures, including an increase in net interest and dividend income, though with a slight decrease in the net interest margin. The they also highlighted lower provisions for credit losses, a rise in other income, and higher expenses during the period. The effective tax rate for the period was 27.9%, down from 29.8% in the comparable quarter.

Analysis of the balance sheet data revealed a 5.9% increase in total assets, rising to $1.0 billion at the end of December 2024. Loans receivable, investment securities, and deposits all showed positive trends. Additionally, notable ratios such as return on average assets and equity were reported at 0.86% and 7.42%, respectively.

Magyar Bancorp continues to serve communities through Magyar Bank, with a comprehensive range of financial products and services. The company affirmed its commitment to transparency by sharing forward-looking statements and addressing associated risks, underscoring its dedication to prudent risk management and growth strategies.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Magyar Bancorp’s 8K filing here.

Magyar Bancorp Company Profile

Magyar Bancorp, Inc operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit.