Magyar Bancorp, Inc.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 13, 2026
MGYR$21.90-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001174947-26-000591
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001174947-26-000796
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 68 current paragraphs.
24 unchanged; 37 reworded; 7 added; 13 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Total cash and cash equivalents. Total cash and cash equivalents increased by $4.4 million, or 61.9% to $11.5 million at June 30, 2026 from $7.1 million at September 30, 2025 resulting from deposit inflows that exceeded the growth in loans receivable during the nine months ended June 30, 2026. The Company’s cash and deposit balances at June 30, 2026 reflect seasonal deposit outflows from municipal accounts that historically return the following calendar quarter.
Current report
Allowance for Credit Losses. Allowance for credit losses increased $340 thousand to $8.9 million during the nine months ended June 30, 2026. Growth in loans receivable during the nine months ended June 30, 2026 resulted in additional provisions for credit losses totaling $630 thousand and the Company recorded $290 thousand in net loan charge-offs. The Company’s allowance for on-balance sheet credit losses increased to $8.5 million at June 30, 2026 from $8.4 million at September 30, 2025 while its reserve for off-balance sheet commitments increased to $402 thousand at June 30, 2026 from $198 thousand at September 30, 2025.
Current report
Other significant increases within other expenses affected occupancy expenses and data processing expenses. Occupancy expenses increased by $37 thousand, or 4.6%, to $837 thousand for the three months ended June 30, 2026 from higher one-time rental payments and termination costs related to the relocation of the Bank’s Edison branch. Data processing expenses increased by $37 thousand, or 30.8%, to $157 thousand for the three months ended June 30, 2026 from higher flex credits applied against service bureau billings for the prior year period. Offsetting these increases was a $60 thousand, or 30.9%, decrease in professional fees from lower legal fees and the recovery of $14 thousand in legal fees from the payoff of a loan previously in foreclosure.
Current report
Provision for Credit Losses. The provision for credit losses totaled $630 thousand for the nine months ended June 30, 2026 compared with $172 thousand for the nine months ended June 30, 2025. The higher provision for credit losses resulted from growth in commercial real estate loans, partially offset by lower one-to-four family mortgage loans, lower construction loan commitments and improving economic data used to determine the Bank’s expected credit losses. The Company recorded $290 thousand in net loan charge-offs during the nine months ended June 30, 2026 compared with $111 thousand in net loan recoveries during the nine months ended June 30, 2025.
Current report
*Other Income.*Other income decreased by $411 thousand, or 14.4%, to $2.4 million during the nine months ended June 30, 2026 compared with $2.9 million for the nine months ended June 30, 2025. The decrease was primarily due to lower gains from the sale of OREO, as there were no gains during the nine months ended June 30, 2026 compared with $229 thousand for the prior year period.
Current report
The Company also experienced a $166 thousand, or 14.5%, reduction in its service charge income. This decrease resulted primarily from lower loan late charge income, which decreased by $88 thousand, lower loan servicing fee income, which decreased by $50 thousand, and lower commercial loan prepayment charges, which decreased by $11 thousand. These types of income vary from period to period depending on the ongoing performance of loans
Current report
Partially offsetting the increases were lower occupancy, professional fees and other expenses. Occupancy expenses decreased by $141 thousand, or 5.3%, to $2.5 million for the nine months ended June 30, 2026 due to lease termination expenses related to the closure of the Bank’s Bridgewater office in the prior year period. Professional fees decreased by $111 thousand, or 18.8%, from lower legal fees and the recovery of $14 thousand in legal fees from the payoff of a loan previously in foreclosure. Other expenses decreased by $52 thousand, or 2.9%, from various expenses related to the closure and relocation of the Bank’s Bridgewater office to Martinsville in the prior year period.
Removed paragraphs (13)
Previous report
Interest Earning Deposits. Total cash and cash equivalents increased by $40.6 million, or 572.4% to $47.6 million at March 31, 2026 from $7.1 million at September 30, 2025 resulting from higher deposits, partially offset by higher loans receivable and investments.
Previous report
Allowance for Credit Losses. The allowance for on-balance sheet credit losses increased by $249 thousand to $8.6 million, or 0.98% of total loans receivable during the six months ended March 31, 2026 compared with $8.4 million at September 30, 2025, while the reserve for off-balance sheet commitments increased to $235 thousand at March 31, 2026 from $198 thousand at September 30, 2025. The higher provision for credit losses resulted from growth in loans receivable as well as higher specific reserves on construction loans, partially offset by lower expected loss rates driven by improving economic conditions impacting residential and commercial real estate loans.
Previous report
Provision for Credit Losses. The provision for credit losses increased by $286 thousand, or 953.3%, to $256 thousand for the three months ended March 31, 2026 compared with a $30 thousand net recovery for the three months ended March 31, 2025. The higher provision for credit losses resulted from higher commercial real estate and construction loan balances, which generally require higher provisions for credit loss, that more than offset contraction in the Company’s residential mortgage loan portfolio.
Previous report
The Company recorded lower gains from the sale of Small Business Administration 7(a) loans, which decreased by $343 thousand to $269 thousand for the three months ended March 31, 2026 from $612 thousand for the three months ended March 31, 2025. Contributing to the lower gains were fewer loans sold as well as lower premiums on the sales of loans. The Company sold $2.8 million in loans during the three months ended March 31, 2026 compared with sales totaling $6.5 million for the three months ended March 31, 2025.
Previous report
Also contributing to the decline in other income was a $93 thousand decline in service charges, which included commercial loan prepayment charges and late fees. The Company recorded $196 thousand in prepayment and late fees during the three months ended March 31, 2026 compared with $260 thousand for the three months ended March 31, 2025. Commercial loan prepayment penalties are highly unpredictable in both amount and timing, as they are dependent upon our borrower’s ability and intent to repay their loan before its scheduled rate reset date or maturity date, whichever occurs sooner. Late fees on commercial loans are also highly unpredictable in amount and timing, as they accumulate until paid, which may occur when a loan is repaid in full.
Previous report
*Other Expenses.*Other expenses increased by $167 thousand, or 3.1%, to $5.6 million for the three months ended March 31, 2026 compared to $5.4 million for the three months ended March 31, 2025 from higher compensation, employee benefit and data processing expenses.
Previous report
Provision for Credit Losses. The provision for credit losses increased by $209 thousand, or 294.4%, to $280 thousand for the six months ended March 31, 2026 compared with $71 thousand for the six months ended March 31, 2025. The higher provision for credit losses resulted from higher specific reserves on construction loans, partially offset by lower expected loss rates driven by improving economic conditions impacting residential and commercial real estate loans.
Previous report
The Company recorded $6 thousand in net loan recoveries during the six months ended March 31, 2026 compared with $108 thousand in net loan recoveries during the six months ended March 31, 2025.
Previous report
*Other Income.*Other income decreased by $606 thousand, or 27.2%, to $1.6 million during the six months ended March 31, 2026 compared to $2.2 million for the six months ended March 31, 2025 from lower gains on the sale of Small Business Administration and other real estate owned loans.
Previous report
The Company recorded lower gains from the sale of Small Business Administration 7(a) and other real estate owned loans, which decreased $321 thousand and $237 thousand, respectively. Contributing to the lower gains were fewer loans sold as well as lower premiums on the sales of loans. The Company sold $6.2 million Small Business Administration loans during the six months ended March 31, 2026 compared with sales totaling $9.8 million for the six months ended March 31, 2025. The Company recorded a loss of $13 thousand on the sale of other real estate owned for the six months ended March 31, 2026 compared with a $224 thousand gain for the six months ended March 31, 2025.
Previous report
Also contributing to the decline in other income was an $84 thousand decline in service charges, The Company recorded $93 thousand in late fees during the six months ended March 31, 2026 compared with $164 thousand for the six months ended March 31, 2025.
Previous report
*Other Expenses.*Other expenses increased by $76 thousand, or 0.7%, to $10.9 million during the six months ended March 31, 2026 from $10.8 million during the six months ended March 31, 2025 from higher compensation, employee benefit and data processing expenses.
Previous report
Partially offsetting these increases was a $178 thousand, or 9.7%, decrease in occupancy expenses to $1.7 million for the six months ended March 31, 2026 from $1.8 million for the six months ended March 31, 2025. Rent and the depreciation of leasehold improvements decreased by $226 thousand between periods from the closure of the Bank’s Bridgewater retail office and subsequent opening of its Martinsville retail office. Partially offsetting these savings were higher ice and snow removal expenses, which increased by $38 thousand between periods.
Reworded paragraphs (37)
Previous wording
When used in this filing and in future filings by the Company with the SEC, in the Company’s press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases, “anticipate,” “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “projected,” “believes”, or similar expressions are intended to identify “forward looking statements.” Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed by the Company in Item 1A of its Annual Report on Form 10-K as may be supplemented by Quarterly Reports on Form 10-Q filed with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services, levels of uninsured deposits, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, and with respect to the loans extended by the Company and real estate owned, the following: risks related to the economic environment in the market areas in which the Bank operates, particularly with respect to the real estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and the risk that significant expense may be incurred by the Company in connection with the resolution of these loans.
Current wording
When used in this filing and in future filings by the Company with the SEC, in the Company’s press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases, “anticipate,” “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “projected,” “believes”, or similar expressions are intended to identify “forward looking statements.” Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed by the Company in Item 1A of its Annual Report on Form 10-K as may be supplemented by Quarterly Reports on Form 10-Q filed with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, international conflict, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services, levels of uninsured deposits, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, and with respect to the loans extended by the Company and real estate owned, the following: risks related to the economic environment in the market areas in which the Bank operates, particularly with respect to the real estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and the risk that significant expense may be incurred by the Company in connection with the resolution of these loans.
Previous wording
Total Assets. Total assets increased by $70.7 million, or 7.1%, to $1.068 billion at March 31, 2026 from $997.7 million at September 30, 2025. The increase was attributable to higher balances of cash and cash equivalents and loans receivable.
Current wording
Total Assets. Total assets increased by $50.8 million, or 5.1%, to $1.048 billion at June 30, 2026 from $997.7 million at September 30, 2025. The increase was attributable to higher loans receivable, investment securities and cash and cash equivalents.
Previous wording
Investment securities. Investment securities totaled $99.2 million at March 31, 2026, reflecting an increase of $10.7 million, or 12.1%, from $88.4 million at September 30, 2025. The increase resulted from purchases of mortgage-backed securities totaling $14.5 million, partially offset by payments from mortgage-backed securities totaling $3.8 million during the six months ended March 31, 2026. There was no credit losses recorded for the Company’s investment securities during the six months ended March 31, 2026.
Current wording
Investment securities. At June 30, 2026, investment securities totaled $104.3 million, reflecting an increase of $15.9 million, or 17.9%, from September 30, 2025. The increase resulted from purchases of mortgage-backed securities totaling $21.9 million, partially offset by repayments of mortgage-backed securities totaling $6.0 million during the nine months ended June 30, 2026. There were no credit losses recorded for the Company’s investment securities during the nine months ended June 30, 2026 and June 30, 2025.
Previous wording
Loans Receivable. Total loans receivable increased by $21.0 million, or 2.4%, to $879.9 million during the six months ended March 31, 2026 from $858.9 million at September 30, 2025. The increase in total loans receivable occurred in commercial real estate loans, which increased by $24.6 million, and in construction and land loans, which increased by $6.4 million. Partially offsetting these increases were one-to four-family residential real estate loans (including home equity lines of credit), which decreased by $9.5 million, commercial business loans, which decreased by $170 thousand and other loans, which decreased by $277 thousand.
Current wording
Loans Receivable. Total loans receivable increased by $31.1 million, or 3.6%, to $890.0 million at June 30, 2026 from $858.9 million at September 30, 2025. The increase in total loans receivable during the nine months ended June 30, 2026 occurred in commercial real estate loans, which increased $56.6 million. Partially offsetting this increase were construction and land loans, which decreased $15.7 million, one-to four-family residential real estate loans (including home equity lines of credit), which decreased $8.4 million, commercial business loans, which decreased $1.2 million and other loans, which decreased $195 thousand.
Previous wording
As of March 31, 2026 and September 30, 2025, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital were estimated at approximately 275% and 267%, respectively. Management believes that Magyar Bank has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring loan portfolio performance and stressing of the commercial real estate portfolio under adverse economic conditions.
Current wording
As of June 30, 2026 and September 30, 2025, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital were estimated at approximately 271% and 267%, respectively. Management believes that Magyar Bank has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring loan portfolio performance and stressing of the commercial real estate portfolio under adverse economic conditions.
Previous wording
Total non-performing loans decreased by $157 thousand, or 34.8%, to $294 thousand at March 31, 2026 from $451 thousand at September 30, 2025. Non-performing loans consisted of one loan secured by one-to four family property and one home equity line of credit. The ratio of non-performing loans to total loans decreased to 0.03% at March 31, 2026 from to 0.05% at September 30, 2025.
Current wording
Total non-performing loans decreased by $92 thousand to $359 thousand at June 30, 2026 from $451 thousand at September 30, 2025. The ratio of non-performing loans to total loans decreased to 0.04% at June 30, 2026 from 0.05% at September 30, 2025. Total non-performing assets decreased by $2.3 million to $359 thousand at June 30, 2026 from $2.6 million at September 30, 2025. The ratio of non-performing assets to total assets decreased to 0.03% at June 30, 2026 from 0.26% at September 30, 2025.
Previous wording
Deposits. Total deposits increased by $64.1 million, or 7.9%, to $878.4 million at March 31, 2026 compared with $814.3 million at September 30, 2025. The inflow in deposits occurred in certificates of deposit (including individual retirement accounts), which increased by $28.1 million, or 13.4%, to $238.0 million, in non-interest bearing checking accounts, which increased by $16.5 million, or 14.1%, to $133.7 million, in money market accounts, which increased by $8.9 million, or 3.3%, to $277.8 million, in interest-bearing checking accounts, which increased by $7.8 million, or 4.8%, to $171.6 million, and in savings accounts, which increased by $2.8 million, or 5.2%, to $57.3 million.
Current wording
Deposits. Total deposits increased by $39.6 million, or 4.9%, to $853.9 million at June 30, 2026. The inflow in deposits occurred in certificates of deposit (including brokered deposit and individual retirement accounts), which increased by $26.3 million, or 12.5%, to $236.2 million, non-interest-bearing checking accounts, which increased by $24.3 million, or 20.7%, to $141.5 million, and savings accounts, which increased by $1.7 million, or 3.1%, to $56.1 million. Partially offsetting these increases was a $9.7 million, or 5.9%, decrease in interest-bearing checking accounts to $154.1 million and a $3.0 million, or 1.1%, decrease in money market accounts to $265.9 million.
Previous wording
The Company implemented a digital marketing campaign focused on the Bank's primary market area, targeting prospective customers with a competitive rate on short term certificates of deposit. The campaign produced positive results and was a contributor to the increase in deposits during the six months ended March 31, 2026.
Current wording
During the nine months ended June 30, 2026, the Company implemented a digital marketing campaign focused on the Bank's primary market area, targeting prospective customers with a competitive rate on short term certificates of deposit. The campaign produced positive results and was a contributor to the increase in deposits.
Previous wording
*Stockholders’ Equity.*Stockholders’ equity increased by $5.3 million, or 4.5%, to $124.1 million at March 31, 2026 from $118.8 million at September 30, 2025. The increase was due to the Company’s results from operations, partially offset by $0.18 in dividends paid and 10,925 shares repurchased during the six months ended March 31, 2026 at an average share price of $17.47. The Company’s book value per share increased to $19.19 at March 31, 2026 from $18.34 at September 30, 2025.
Current wording
*Stockholders’ Equity.*Stockholders’ equity increased by $7.8 million, or 6.5%, to $126.6 million at June 30, 2026 from $118.8 million at September 30, 2025. The increase was attributable to the Company’s results from operations, partially offset by $0.28 per share in dividends paid per share and 25,825 shares repurchased during the nine months ended June 30, 2026 at an average price per share of $17.55. The Company’s book value per share increased to $19.61 at June 30, 2026 from $18.34 at September 30, 2025.
Previous wording
Average Balance Sheets for the Three and Six Months Ended March 31, 2026 and 2025
Current wording
Average Balance Sheets for the Three and Nine Months Ended June 30, 2026 and 2025
Previous wording
The following tables present certain information regarding the Company’s financial condition and net interest income for the three and six months ended March 31, 2026 and 2025. The tables present the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. We derived average balances from daily balances over the periods indicated. Interest income includes fees that we consider adjustments to yields.
Current wording
The following tables present certain information regarding the Company’s financial condition and net interest income for the three and nine months ended June 30, 2026 and 2025. The tables present the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. We derived average balances from daily balances over the periods indicated. Interest income includes fees that we consider adjustments to yields.
Previous wording
Net Income. Net income increased by $349 thousand, or 13.0%, to $3.0 million for the three months ended March 31, 2026 compared with net income of $2.7 million for the three months ended March 31, 2025. The increase was due to higher net interest income, partially offset by higher provisions for credit loss, lower non-interest income and higher other expenses.
Current wording
Net Income. Net income increased by $623 thousand, or 25.2%, to $3.1 million for the three months ended June 30, 2026 compared with net income of $2.5 million for the three months ended June 30, 2025. The increase was due to higher net interest income and other income, partially offset by higher provisions for credit loss, other expenses and income tax expense.
Previous wording
Net Interest and Dividend Income. Net interest and dividend income increased by $1.4 million, or 17.2%, to $9.2 million for the three months ended March 31, 2026 from $7.9 million for the three months ended March 31, 2025. The increase was attributable to a 35-basis point increase in the Company’s net interest margin to 3.66% for the three months ended March 31, 2026 from 3.31% for the three months ended March 31, 2025, as well as a $56.6 million increase in the average balance of interest-earning assets between the periods.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased by $1.2 million, or 15.2%, to $9.4 million for the quarter ended June 30, 2026 from the quarter ended June 30, 2025. The increase was attributable to a 30-basis point increase in the Company’s net interest margin to 3.65% for the three months ended June 30, 2026 from 3.35% for the three months ended June 30, 2025, as well as a $57.0 million increase in the average balance of interest-earning assets between the periods.
Previous wording
*Interest and Dividend Income.*Interest and dividend income increased by $1.4 million, or 10.6%, to $14.9 million for the three months ended March 31, 2026 compared with $13.5 million for the three months ended March 31, 2025. The increase was attributable to a 25-basis point increase in the yield on interest earning assets to 5.93% for the three months ended March 31, 2026 from 5.68% for the three months ended March 31, 2025, as well as an increase in the average balance of net loans receivable between the periods.
Current wording
*Interest and Dividend Income.*Interest and dividend income increased by $1.3 million, or 9.0%, to $15.3 million for the three months ended June 30, 2026 compared with $14.0 million for the three months ended June 30, 2025. The increase was attributable to a 17-basis point increase in the yield on interest-earning assets to 5.91% for the three months ended June 30, 2026 from 5.74% for the three months ended June 30, 2025, as well as a $51.8 million, or 6.3%, increase in the average balance of net loans receivable between the periods.
Previous wording
The average balance of loans receivable, net of allowance for credit losses, increased by $65.3 million, or 8.1%, to $868.7 million during the three months ended March 31, 2026 from $803.4 million for the three months ended March 31, 2025, while the yield on loans receivable increased 23 basis points to 6.35% for the three months ended March 31, 2026 from 6.12% for the three months ended March 31, 2025. Contributing to the increase in yield on loans receivable are commercial term loan rates adjusting on their five-year anniversary to market rates that are significantly higher than they were five years ago.
Current wording
The average balance of loans receivable, net of allowance for credit losses, increased by $51.8 million, or 6.3%, to $874.3 million during the three months ended June 30, 2026 from $822.5 million for the three months ended June 30, 2025, while the yield on loans receivable increased by 20 basis points to 6.35% for the three months ended June 30, 2026 from 6.15% for the three months ended June 30, 2025. Contributing to the increase in yield on loans receivable are commercial term loan rates adjusting on their five-year anniversary to market rates that are significantly higher than they were five years ago.
Previous wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLB stock, decreased by $45 thousand, or 3.4%, to $1.3 million for the three months ended March 31, 2026. The average balance of investment securities and interest-earning deposits decreased by $9.6 million, or 6.0%, to $150.0 million for the three months ended March 31, 2026 from $159.6 million for the three months ended March 31, 2025, while the average yield on such assets increased 11 basis points to 3.51% for the three months ended March 31, 2026 from 3.40% for the three months ended March 31, 2025.
Current wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLB stock, decreased by $12 thousand, or 0.9%, to $1.3 million for the three months ended June 30, 2026. The average balance of investment securities and interest-earning deposits increased by $4.4 million, or 2.9%, to $157.6 million for the three months ended June 30, 2026 from $153.2 million for the three months ended June 30, 2025, while the average yield on such assets decreased by seven basis points to 3.43% for the three months ended June 30, 2026 from 3.50% for the three months ended June 30, 2025.
Previous wording
Interest Expense. Interest expense increased by $73 thousand, or 1.3%, to $5.7 million for the three months ended March 31, 2026 from $5.6 million for the three months ended March 31, 2025. The average balance of interest-bearing liabilities increased by $36.3 million, or 4.8%, to $795.1 million for the three months ended March 31, 2026 from $758.9 million for the three months ended March 31, 2025, while the average cost on such interest-bearing liabilities decreased 10 basis points to 2.92% for the three months ended March 31, 2026 compared with 3.02% for the three months ended March 31, 2025. Lower short-term market interest rates were primarily responsible for the lower cost of the Company’s interest-bearing liabilities for the three months ended March 31, 2026.
Current wording
Interest Expense. Interest expense increased by $23 thousand, or 0.4%, to $5.8 million for the three months ended June 30, 2026 from $5.8 million for the three months ended June 30, 2025. The average balance of interest-bearing liabilities increased by $24.3 million, or 3.1%, to $796.4 million for the three months ended June 30, 2026 from $772.1 million for the three months ended June 30, 2025, while the average cost on such interest-bearing liabilities decreased by eight basis points to 2.94% for the three months ended June 30, 2026 compared with 3.02% for the three months ended June 30, 2025.
Previous wording
The average balance of interest-bearing deposits increased $19.3 million, or 2.7%, to $746.0 million for the three months ended March 31, 2026 from $726.7 million for the three months ended March 31, 2025. The average cost of such deposits decreased 14 basis points to 2.89% from 3.03%, while the interest paid on interest-bearing deposits decreased $101 thousand to $5.3 million for the three months ended March 31, 2026 compared with $5.4 million for the three months ended March 31, 2025.
Current wording
The average balance of interest-bearing deposits increased $9.3 million, or 1.3%, to $747.4 million for the three months ended June 30, 2026 from $738.1 million for the three months ended June 30, 2025. The average cost of such deposits decreased nine basis points to 2.92% from 3.01%, and the interest paid on interest-bearing deposits decreased $116 thousand to $5.4 million for the three months ended June 30, 2026 compared with $5.5 million for the three months ended June 30, 2025.
Previous wording
Interest expense on borrowings increased by $174 thousand, or 78.0%, to $397 thousand for the three months ended March 31, 2026 from $223 thousand for the three months ended March 31, 2025. The average balance of borrowings increased by $16.9 million, or 52.7%, to $49.0 million for the three months ended March 31, 2026 compared to $32.1 million for the three months ended March 31, 2025 while the average cost of the borrowings increased by 47 basis points to 3.28% from 2.81%, respectively.
Current wording
Interest expense on borrowings increased by $139 thousand, or 53.1%, to $401 thousand for the three months ended June 30, 2026 from $262 thousand for the three months ended June 30, 2025. The average balance of borrowings increased by $15.0 million, or 44.1%, to $49.0 million for the three months ended June 30, 2026 compared with $34.0 million for the three months ended June 30, 2025 while the average cost of borrowings increased by 20 basis points to 3.28% from 3.08%, respectively.
Previous wording
The Company recorded $3 thousand in net loan recoveries during the three months ended March 31, 2026 compared with $5 thousand in net loan recoveries during the three months ended March 31, 2025.
Current wording
Provision for Credit Losses. The net provision for credit losses totaled $351 thousand for the three months ended June 30, 2026 compared with a net provision for credit losses totaling $101 thousand for the three months ended June 30, 2025. The increase resulted from growth in commercial real estate loans, partially offset by lower one-to-four family mortgage loans, lower construction loan commitments and improving economic data used to determine the Bank’s expected credit losses. The Company recorded $295 thousand in net loan charge-offs during the three months ended June 30, 2026 compared with $3 thousand in net loan recoveries during the three months ended June 30, 2025. During the three months ended June 30, 2026 the Company recorded a $300 thousand charge-off related to one construction loan relationship.
Previous wording
*Other Income.*Other income decreased by $411 thousand, or 32.4%, to $857 thousand during the three months ended March 31, 2026 compared to $1.3 million for the three months ended March 31, 2025 from lower gains on the sale of loans and lower service charge income.
Current wording
*Other Income.*Other income increased by $180 thousand, or 28.3%, to $816 thousand during the three months ended June 30, 2026 compared with $636 thousand for the three months ended June 30, 2025. The increase was primarily due to higher gains on the sale of SBA loans, partially offset by lower service charge and interest rate swap fee income.
Previous wording
The increase in total other expenses was primarily attributable to higher compensation and benefit expense, which increased by $137 thousand, or 4.2%, to $3.4 million, due to higher medical benefits and incentive accruals as well as annual merit increases. Data processing expenses increased by $40 thousand, or 32.8%, to $162 thousand for the three months ended March 31, 2026 from $122 thousand for the three months ended March 31, 2025. The increase was attributable to the use of expiring flex credits from the Company’s core service provider during the three months ended March 31, 2025.
Current wording
*Other Expenses.*Other expenses increased by $292 thousand, or 5.6%, to $5.5 million during the three months ended June 30, 2026 compared with $5.2 million for the three months ended June 30, 2025. The increase was primarily attributable to higher compensation and benefit expense, which increased $255 thousand, or 8.2%, to $3.4 million, due to higher medical benefits and incentive accruals as well as annual merit increases.
Previous wording
Income Tax Expense. The Company recorded income tax expense of $1.2 million on pre-tax income of $4.3 million for the three months ended March 31, 2026, compared with $1.1 million on pre-tax income of $3.8 million for the three months ended March 31, 2025. The increase was driven by higher pre-tax income during the three months ended March 31, 2026. The Company’s effective tax rate for the three months ended March 31, 2026 and 2025 was 29.0%.
Current wording
Income Tax Expense. The Company recorded income tax expense of $1.3 million on pre-tax income of $4.4 million for the three months ended June 30, 2026, compared with $1.0 million on pre-tax income of $3.5 million for the three months ended June 30, 2025. The increase in income tax expense was driven by higher pre-tax income during the three months ended June 30, 2026. The Company’s effective tax rate for the three months ended June 30, 2026 was 28.9% compared with 29.0% for the three months ended June 30, 2025.
Previous wording
Comparison of Operating Results for the Six Months Ended March 31, 2026 and 2025
Current wording
Comparison of Operating Results for the Nine Months Ended June 30, 2026 and 2025
Previous wording
*Net Income.*Net income increased by $1.4 million, or 29.4%, to $6.2 million during the six months period ended March 31, 2026 compared with $4.8 million for the six months period ended March 31, 2025. The increase was due to higher net interest income, partially offset by higher provisions for credit loss, lower other income, and higher other expenses.
Current wording
*Net Income.*Net income increased by $2.1 million, or 28.0%, to $9.3 million during the nine months period ended June 30, 2026 compared with $7.2 million for the nine months period ended June 30, 2025. The increase was due to higher net interest income, partially offset by higher provisions for credit loss, lower other income, higher other expenses and higher income tax expense.
Previous wording
Net Interest and Dividend Income. Net interest and dividend income increased by $2.8 million, or 18.1%, to $18.1 million for the six months ended March 31, 2026 from $15.3 million for the six months ended March 31, 2025. The increase was attributable to a $59.5 million, or 6.3%, increase in the average balance of interest earning assets between the periods as well as a 36 basis points increase in the Company’s net interest margin to 3.63% for the six months ended March 31, 2026 from 3.27% for the six months ended March 31, 2025.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased by $4.0 million, or 17.1%, to $27.5 million for the nine months ended June 30, 2026 from $23.5 million for the nine months ended June 30, 2025. The increase was attributable to a 33-basis point increase in the Company’s net interest margin to 3.63% for the nine months ended June 30, 2026 from 3.30% for the nine months ended June 30, 2025 as well as a $58.6 million, or 6.2%, increase in the average balance of interest-earning assets between the periods.
Previous wording
Interest and Dividend Income. Interest and dividend income increased by $3.1 million, or 11.7%, to $29.5 million for the six months ended March 31, 2026 from $26.4 million for the six months ended March 31, 2025. The increase was attributable to a 28 basis points increase in the yield on interest earning assets to 5.92% for the six months ended March 31, 2026 from 5.64% for the six months ended March 31, 2025, as well as an increase in the average balance of net loans receivable.
Current wording
Interest and Dividend Income. Interest and dividend income increased by $4.4 million, or 10.8%, to $44.8 million for the nine months ended June 30, 2026 from $40.4 million for the nine months ended June 30, 2025. The increase was attributable to a 25-basis point increase in the yield on interest-earning assets to 5.92% for the nine months ended June 30, 2026 from 5.67% for the nine months ended June 30, 2025, as well as a $62.5 million, or 7.8%, increase in the average balance of net loans receivable.
Previous wording
The average balance of loans receivable, net of allowance for credit losses, increased by $67.9 million, or 8.5%, to $862.5 million during the six months ended March 31, 2026 from $794.6 million during the six months ended March 31, 2025, while the yield on loans receivable increased 25 basis points to 6.31% for the six months ended March 31, 2026 from 6.06% for the six months ended March 31, 2025. The higher average balance and yield accounted for a $3.1 million, or 13.0%, increase in loan interest income between periods.
Current wording
The average balance of loans receivable, net of allowance for credit losses, increased by $62.5 million, or 7.8%, to $866.4 million during the nine months ended June 30, 2026 from $803.8 million during the nine months ended June 30, 2025, while the yield on loans receivable increased 23 basis points to 6.32% for the nine months ended June 30, 2026 from 6.09% for the nine months ended June 30, 2025. The higher average balance and yield accounted for a $4.4 million, or 11.9%, increase in loan interest income between periods.
Previous wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLBNY stock, decreased by $60 thousand, or 2.6%, to $2.26 million for the six months ended March 31, 2026 from $2.32 million for the six months ended March 31, 2025. The average balance of investment securities and interest-earning deposits decreased by $9.3 million, or 6.5%, to $134.4 million for the six months ended March 31, 2026 from $143.7 million for the six months ended March 31, 2025. Partially offsetting this decrease was a 14 basis point increase in the yield of such assets to 3.39% for the six months ended March 31, 2026 from 3.25% for the six months ended March 31, 2025.
Current wording
Interest earned on investment securities, including interest-earning deposits and excluding FHLBNY stock, decreased by $49 thousand, or 1.3%, to $3.6 million for the nine months ended June 30, 2026 from $3.7 million for the nine months ended June 30, 2025. The average balance of investment securities and interest-earning deposits decreased by $4.8 million, or 3.2%, to $142.1 million for the nine months ended June 30, 2026 from $146.9 million for the nine months ended June 30, 2025. Partially offsetting this decrease was a six basis point increase in the yield of such assets to 3.40% for the nine months ended June 30, 2026 from 3.34% for the nine months ended June 30, 2025.
Previous wording
Interest Expense. Interest expense increased by $313 thousand, or 2.8%, to $11.4 million for the six months ended March 31, 2026 compared with $11.1 million for the six months ended March 31, 2025. The average balance of interest-bearing liabilities increased by $44.8 million, or 6.1%, to $779.1 million from $734.3 million, while the cost of interest-bearing liabilities decreased nine basis points to 2.94% for the six months ended March 31, 2026 compared with 3.03% for the six months ended March 31, 2025.
Current wording
Interest Expense. Interest expense increased by $335 thousand, or 2.0%, to $17.3 million for the nine months ended June 30, 2026 compared with $16.9 million for the nine months ended June 30, 2025. This increase was attributable to a higher average balance of interest-bearing liabilities, which increased by $38.0 million, or 5.1%, to $784.9 million, but was partially offset by a nine-basis point decrease in the cost of such liabilities to 2.94% for the nine months ended June 30, 2026 compared with 3.03% for the nine months ended June 30, 2025.
Previous wording
The average balance of interest-bearing deposits increased by $26.6 million, or 3.8%, to $730.0 million for the six months ended March 31, 2026 from $703.4 million for the six months ended March 31, 2025, while the average cost of such deposits decreased 12 basis points to 2.92% from 3.04%. As a result, interest paid on interest-bearing deposits decreased by $59 thousand, or 0.6%, to $10.6 million for the six months ended March 31, 2026 from $10.7 million for the six months ended March 31, 2025.
Current wording
The average balance of interest-bearing deposits increased by $20.8 million, or 2.9%, to $735.8 million for the nine months ended June 30, 2026 from $715.0 million for the nine months ended June 30, 2025, while the average cost of such deposits decreased 11 basis points to 2.92% from 3.03%. As a result, interest paid on interest-bearing deposits decreased by $176 thousand, or 1.1%, to $16.0 million for the nine months ended June 30, 2026 from $16.2 million for the nine months ended June 30, 2025.
Previous wording
Interest expense on borrowings increased by $372 thousand, or 86.3%, to $803 thousand for the six months ended March 31, 2026 from $431 thousand for the six months ended March 31, 2025. The cost of borrowings increased 48 basis points to 3.28% for the six months ended March 31, 2026 compared with 2.80% for the six months ended March 31, 2025, while the average balance of borrowings increased by $18.3 million, or 59.2%, to $49.1 million for the six months ended March 31, 2026 from $30.8 million for the six months ended March 31, 2025.
Current wording
Interest expense on borrowings increased by $511 thousand, or 73.7%, to $1.2 million for the nine months ended June 30, 2026 from $693 thousand for the nine months ended June 30, 2025. The cost of borrowings increased 38 basis points to 3.28% for the nine months ended June 30, 2026 compared with 2.90% for the nine months ended June 30, 2025, while the average balance of borrowings increased by $17.2 million, or 53.9%, to $49.1 million for the nine months ended June 30, 2026 from $31.9 million for the nine months ended June 30, 2025.
Previous wording
The increase in total other expenses was primarily attributable to higher compensation and benefit expense, which increased by $225 thousand, or 3.6%, to $3.4 million, due to higher medical benefits and incentive accruals as well as annual merit increases. Data processing expenses increased by $106 thousand, or 49.8%, to $319 thousand for the six months ended March 31, 2026 from $213 thousand for the six months ended March 31, 2025 from the use of expiring flex credits for the Bank’s core service provider during the six months ended March 31, 2025.
Current wording
*Other Expenses.*Other expenses increased by $383 thousand, or 2.4%, to $16.4 million during the nine months ended June 30, 2026 from $16.0 million during the nine months ended June 30, 2025. The increase was primarily attributable to higher compensation and benefit expense, which increased by $480 thousand, or 5.1%, to $9.9 million, due to higher medical benefits and incentive accruals as well as annual merit increases. Also contributing to the increase were higher data processing expenses, which increased by $143 thousand, or 42.9%, to $476 thousand, from higher flex credits applied against service bureau billings for the prior year period.
Previous wording
Income Tax Expense. The Company recorded tax expense of $2.4 million on pre-tax income of $8.5 million for the six months ended March 31, 2026, compared to $1.9 million on pre-tax income of $6.7 million for the six months ended March 31, 2025. The increase in income tax expense was driven by higher pre-tax income during the six months ended March 31, 2026. The Company’s effective tax rate for the six months ended March 31, 2026 was 27.8% compared with 28.5% for the six months ended March 31, 2025.
Current wording
Income Tax Expense. The Company recorded tax expense of $3.6 million on pre-tax income of $12.9 million for the nine months ended June 30, 2026, compared to $2.9 million on pre-tax income of $10.1 million for the nine months ended June 30, 2025. The increase in income tax expense was driven by higher pre-tax income during the nine months ended June 30, 2026. The Company’s effective tax rate for the nine months ended June 30, 2026 was 28.2% compared with 28.5% for the nine months ended June 30, 2025.
Previous wording
The Company’s liquidity is a measure of its ability to fund loans, pay withdrawals of deposits, and other cash outflows in an efficient, cost-effective manner. The Company’s short-term sources of liquidity include maturity, repayment and sales of assets, excess cash and cash equivalents, new deposits, other borrowings, and new advances from the FHLBNY. Based on eligible loan collateral pledged to the FHLBNY at March 31, 2026, we had an aggregate net borrowing capacity of $168.1 million. We also had the ability to borrow $110.5 million from the FRBNY at March 31, 2026 compared with $109.6 million at September 30, 2025. The Company did not have any borrowings outstanding with the FRBNY at March 31, 2026 and September 30, 2025. There has been no material adverse change during the six months ended March 31, 2026 in the ability of the Company and its subsidiaries to fund their operations.
Current wording
The Company’s liquidity is a measure of its ability to fund loans, pay withdrawals of deposits, and other cash outflows in an efficient, cost-effective manner. The Company’s short-term sources of liquidity include maturity, repayment and sales of assets, excess cash and cash equivalents, new deposits, other borrowings, and new advances from the FHLBNY. Based on eligible loan collateral pledged to the FHLBNY at June 30, 2026, we had an aggregate net borrowing capacity of $158.0 million. We also had the ability to borrow $109.4 million from the FRBNY at June 30, 2026 compared with $109.6 million at September 30, 2025. The Company did not have any borrowings outstanding with the FRBNY at June 30, 2026 and September 30, 2025. There has been no material adverse change during the nine months ended June 30, 2026 in the ability of the Company and its subsidiaries to fund their operations.
Previous wording
At March 31, 2026, the Company had commitments outstanding under letters of credit totaling $870 thousand, commitments to originate loans totaling $28.9 million, and commitments to fund undisbursed balances of closed loans and unused lines of credit totaling $85.3 million. There has been no material change during the six months ended March 31, 2026 in any of the Company’s other contractual obligations or commitments to make future payments.
Current wording
At June 30, 2026, the Company had commitments outstanding under letters of credit totaling $920 thousand, commitments to originate loans totaling $34.1 million, and commitments to fund undisbursed balances of closed loans and unused lines of credit totaling $89.5 million. There has been no material change during the nine months ended June 30, 2026 in any of the Company’s other contractual obligations or commitments to make future payments.
Previous wording
At March 31, 2026, the Bank’s Tier 1 capital as a percentage of the Bank’s total assets was 11.15%, and total qualifying capital as a percentage of risk-weighted assets was 15.86%.
Current wording
At June 30, 2026, the Bank’s Tier 1 capital as a percentage of the Bank’s total assets was 11.29%, and total qualifying capital as a percentage of risk-weighted assets was 15.97%.