Magyar Bancorp, Inc. (MGYR): Cheap, Clean, and Rate-Exposed
Magyar Bancorp, Inc. | MGYR | Published 11/11/2026
Magyar Bancorp, Inc. is the holding company for Magyar Bank, a community bank founded in 1922 and headquartered in New Brunswick, New Jersey. With $1,048.5 million in total assets at June 30, 2026, the bank operates seven branches in Central New Jersey, in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, Martinsville and Edison. It is almost entirely a real estate lender: commercial real estate and one-to-four family residential loans make up about 92.64% of the loan book, and most of its earnings come from net interest income rather than fees. There is no pending acquisition. The notable recent events are a record fiscal year ended September 30, 2026, with net income of $12.6 million, two dividend increases during that year, and the relocation of its Edison branch.
Magyar Bancorp is a plain, single-state community bank, and here that is mostly a compliment. A loan-heavy balance sheet, with 84.71% of assets in loans, and a lean cost base, with noninterest expense at 34.96% of revenue, push profitability to the upper end of the peer range despite thin fee income and a deposit base tilted toward interest-bearing accounts. Credit quality is exceptional: nonaccruals are 0.04% and classified loans 0.13% of loans, and the allowance covers problem loans many times over. Capital is strong on both a regulatory and a fair-value basis, and borrowing capacity backs up a light on-balance-sheet liquidity position. The one real weakness is interest rate risk. The one-year repricing ratio is 33.31% against a peer range of 42.72%–53.32%, and a rough +200 bp estimate cuts annual earnings to about $4 million. At a 9.04% earnings yield and 1.03x tangible fair value the stock screens cheap, but that discount may not be enough to compensate for the rate exposure.
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