It's like a New Jersey-focused Bank of America.

It's like a small, New Jersey-based PNC Bank.

• Deposit Services: Accepting various types of deposit accounts, including checking, savings, money market, and certificates of deposit.
• Lending Services: Providing a range of loans such as residential mortgages, commercial real estate loans, home equity loans, business loans, and construction loans.
• Investment and Financial Planning Services: Offering non-deposit investment products, insurance, fixed and variable annuities, and retirement planning for customers.

Magyar Bancorp (MGYR) primarily serves a diverse customer base rather than having a few major customers. Based on its operations as a community bank, it sells banking and financial services to the following categories of customers:

• Individuals: Consumers seeking deposit accounts (demand, savings, NOW, money market, retirement accounts, certificates of deposit), residential mortgage loans, home equity loans and lines of credit, non-deposit investment products, and financial planning services.
• Businesses: Commercial entities requiring commercial banking services, multi-family and commercial real estate mortgage loans, commercial business loans, construction loans, small business administration loans, and financial planning services.
• Nonprofit Organizations: Nonprofits that utilize various commercial banking services provided by the bank.

John Fitzgerald, President and Chief Executive Officer

John Fitzgerald has served as President and Chief Executive Officer of Magyar Bank since 2010. He joined Magyar Bank in June 2001, initially as Department Head of Commercial Lending, and later held the position of Executive Vice President and Chief Operating Officer from 2005 to 2009. Prior to his tenure at Magyar Bank, Mr. Fitzgerald was the Vice President of Commercial Lending at United Trust Bank. He has a long tenure with the company, serving as CEO for over 15 years.

Jon Ansari, Executive Vice President and Chief Financial Officer

Jon Ansari is the Executive Vice President and Chief Financial Officer of both Magyar Bancorp, Inc. and Magyar Bank, a position he has held since 2005. He also serves as a director for the company since 2017. Mr. Ansari joined Magyar Bank in July 1999 and progressively advanced through various financial roles, including Vice President of Finance, Controller, Assistant Controller, and Accountant, before being appointed CFO.

Peter Brown, Senior Vice President and Chief Lending Officer

Peter Brown has been the Senior Vice President and Chief Lending Officer of Magyar Bank and Magyar Bancorp, Inc. since July 2019. He initially joined Magyar Bank in 2013 as Vice President, Commercial Lending Officer. Before joining Magyar Bank, Mr. Brown held the role of President/CEO of Manasquan Savings Bank, bringing over 30 years of banking experience to his current position.

Key Risks to Magyar Bancorp (MGYR)

• Concentration in Commercial Real Estate (CRE) Lending and Credit Risk: Magyar Bancorp has a significant concentration in commercial real estate loan assets in New Jersey, representing a considerable portion of its loan portfolio. This concentration exposes the bank to elevated credit risk, particularly as commercial real estate loans are considered a riskier type of loan. Historically, the bank has experienced large lending losses, especially during economic downturns. Community banks, like Magyar Bancorp, often have a higher concentration of loans to small businesses and individuals, increasing their overall exposure to credit risk.
• Interest Rate Risk and Intense Competition for Deposits: Magyar Bancorp faces significant interest rate risk, where changes in interest rates can impact its profitability. The bank operates in a highly competitive environment for deposits, which drives up the cost of funds. Regional banks must offer higher rates to retain liquidity, directly squeezing profitability. The balance between the duration of the bank's assets and the rising cost of its liabilities presents a continuous risk. Net interest margins and the cost of funds are identified as crucial external risks for community banks.
• Regulatory Scrutiny, Compliance Costs, and Cybersecurity: Magyar Bancorp is subject to increasing regulatory scrutiny and the financial burden of compliance modernization. Regulators are increasingly targeting smaller financial institutions for compliance failures, leading to a material increase in non-interest expenses dedicated to legal and compliance functions. Additionally, cybersecurity is a top internal risk for community banks, including Magyar Bancorp, given their access to funds and sensitive customer data. Community banks are particularly vulnerable to cyberattacks due to fewer resources compared to larger institutions.

The rise of digital-only banks (neobanks) and financial technology (FinTech) companies represents a clear emerging threat to traditional community banks like Magyar Bancorp. These digital-first competitors offer banking services, including deposit accounts, lending, and payment solutions, often with lower fees, higher interest rates on deposits, and more seamless digital experiences, effectively bypassing the need for physical branch locations. This model allows them to attract customers, particularly younger demographics and those seeking convenience, who may be less tied to a physical banking presence. This phenomenon directly challenges the branch-centric business model and customer acquisition strategies of Magyar Bancorp, potentially eroding its deposit base and loan origination opportunities.

Here are the addressable market sizes for Magyar Bancorp's main products and services in New Jersey:

• Deposit Accounts: The total deposits in New Jersey were approximately $431.46 billion as of June 30, 2024.
• Residential Mortgage Loans, Multi-family and Commercial Real Estate Mortgage Loans, Home Equity Loans and Lines of Credit, and Construction Loans: The market size for the broader Real Estate Loans & Collateralized Debt industry in New Jersey is projected to be $9.1 billion in 2026. This figure represents the industry's market size, which encompasses these various loan types, rather than the total outstanding loan balances for each specific category.
• Commercial Business Loans: This service falls under the Commercial Banking industry. The market size of the Commercial Banking industry in New Jersey is projected to be $50.6 billion in 2026.
• Small Business Administration (SBA) Loans: New lending to New Jersey businesses (loans of $1 million or less), which would include SBA loans, totaled $7.9 billion in 2023. Additionally, community banks in New Jersey provided $9.5 billion in SBA loans to small businesses cumulatively from 2010-2025.
• Non-deposit Investment Products and Financial Planning Services: Null

Magyar Bancorp (NASDAQ: MGYR) is expected to drive future revenue growth over the next two to three years through several key areas, primarily focusing on an expanding net interest margin, continued loan portfolio growth, and strategic deposit gathering. The company's management has provided forward guidance and demonstrated trends that support these drivers.

The expected drivers of future revenue growth for Magyar Bancorp are:

1. Net Interest Margin (NIM) Expansion due to Favorable Interest Rate Environment: Magyar Bancorp anticipates an increase in its net interest margin, largely driven by expected Federal Reserve rate cuts and the repricing of commercial term loans. The company's net interest margin increased by 37 basis points to 3.59% for the quarter ended December 31, 2025, from the previous year, a trend expected to continue. Analysts also project that falling rates could expand the net interest margin to approximately 3.5% or even 4% from the current 3.35%, significantly boosting earnings.
2. Growth in Loan Portfolio, particularly Commercial Real Estate (CRE) Loans: The company has demonstrated a consistent focus on growing its loan portfolio. For the fiscal year ended September 30, 2025, total loans receivable increased by $77.2 million, contributing to a 10% growth in the loan portfolio. Commercial real estate loans have been a notable area of expansion, with long-term advances from the Federal Home Loan Bank of New York being utilized to match fund commercial real estate loan originations. Management has emphasized its commitment to growing the balance sheet through prudent lending.
3. Strategic Deposit Growth: Magyar Bancorp aims for responsible deposit growth as a fundamental component of its balance sheet management strategy. The company reported that deposits rose by $61.0 million, or 7.7%, to $857.7 million in the second quarter of 2025. This deposit growth is essential for funding loan originations and expanding the company's interest-earning assets.
4. Increased Non-Interest Income from SBA Loan Sales: Gains from the sale of Small Business Administration (SBA) loans have emerged as a significant contributor to non-interest income. In the second quarter of 2025, other income substantially increased by $646 thousand, or 103.9%, largely fueled by these gains. Continued activity and success in this area could provide a reliable and growing source of revenue outside of traditional interest-based income.

Share Repurchases

• Magyar Bancorp completed a stock repurchase program authorized December 8, 2022, repurchasing 337,146 shares at an average price of $12.23 per share.
• On December 8, 2022, the Board of Directors authorized a new stock repurchase program to repurchase up to 5% of its outstanding shares, or up to 337,146 shares.
• On May 22, 2025, the Board authorized an additional stock repurchase program for up to 5% of its outstanding shares, equivalent to 323,547 shares.

Share Issuance

• Magyar Bancorp completed a second-step conversion and related public stock offering on July 14, 2021.
• In this offering, the company sold 3,910,000 shares of common stock at $10.00 per share, generating gross proceeds of $39.1 million.
• Approximately 7,098,070 shares of common stock were outstanding following the conversion as of July 14, 2021.

Capital Expenditures

• Magyar Bancorp invested $4,000 in capital expenditures in the second fiscal quarter of 2026.
• Annual capital expenditures were reported as -$0.4 million in 2021, -$0.4 million in 2022, -$0.3 million in 2023, -$0.8 million in 2024, and -$0.6 million in 2025.
• The capital raised from the 2021 conversion was intended, in part, to support the opening or acquisition of additional branch offices.