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REGULATORY CAPITAL
 12 Months Ended
Sep. 30, 2016
Regulatory Capital Requirements [Abstract]  
REGULATORY CAPITAL

NOTE S - REGULATORY CAPITAL

 

The Company and Bank are required to maintain minimum amounts of capital to total “risk-weighted” assets, as defined by the banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

 

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum ratios of Leverage Capital, Tier I and Total Risk-based Capital. The following table sets forth the Company’s and the Bank’s actual and required capital levels under those measures:

 

                 To be well-capitalized
           For capital  under prompt corrective
   Actual   adequacy purposes  action provisions
   Amount   Ratio   Amount  Ratio  Amount  Ratio
   (Dollars in thousands)
As of September 30, 2016                      
Total Capital (to risk-weighted assets)                      
Magyar Bancorp, Inc.  $51,940    12.55%   N/A  N/A  N/A  N/A
Magyar Bank  $50,447    12.19%   33,099  ≥  8.00%  41,374  ≥ 10.00%
                       
Tier 1 Capital (to risk-weighted assets)                      
Magyar Bancorp, Inc.  $48,884    11.82%   N/A  N/A  N/A  N/A
Magyar Bank  $47,391    11.45%   16,550  ≥  4.00%  24,825  ≥   6.00%
                       
Common Equity Tier 1 Capital (to risk-weighted assets)                      
Magyar Bancorp, Inc.  $48,884    11.82%   N/A  N/A  N/A  N/A
Magyar Bank  $47,391    11.45%   18,618  ≥  4.50%  24,825  ≥   6.00%
                       
Tier 1 Capital (to average assets)                      
Magyar Bancorp, Inc.  $48,884    8.53%   N/A  N/A  N/A  N/A
Magyar Bank  $47,391    8.27%   22,914  ≥  4.00%  28,642  ≥   5.00%
                       
As of September 30, 2015                      
Total Capital (to risk-weighted assets)                      
Magyar Bancorp, Inc.  $50,555    12.98%   N/A  N/A  N/A  N/A
Magyar Bank  $48,584    12.47%   31,158  ≥  8.00%  38,947  ≥ 10.00%
                       
Tier 1 Capital (to risk-weighted assets)                      
Magyar Bancorp, Inc.  $47,669    12.24%   N/A  N/A  N/A  N/A
Magyar Bank  $45,698    11.73%   15,579  ≥  4.00%  23,368  ≥   6.00%
                       
Common Equity Tier 1 Capital (to risk-weighted assets)                      
Magyar Bancorp, Inc.  $47,669    12.24%   N/A  N/A  N/A  N/A
Magyar Bank  $45,698    11.73%   17,526  ≥  4.50%  23,368  ≥   6.00%
                       
Tier 1 Capital (to average assets)                      
Magyar Bancorp, Inc.  $47,669    8.75%   N/A  N/A  N/A  N/A
Magyar Bank  $45,698    8.39%   21,795  ≥  4.00%  27,244  ≥   5.00%

 

The Bank has committed to the FDIC to maintain capital at or above the well capitalized level.