**Exhibit
        99.1**





**400
      Somerset St., New Brunswick, NJ 08901**


**732.342.7600**





**MAGYAR
      BANCORP ANNOUNCES FOURTH QUARTER EARNINGS**





**New
      Brunswick, New Jersey, November 7, 2006** - Magyar
      Bancorp (NASDAQ: MGYR), parent company of Magyar Bank, announced today its
      results of operations for the three and twelve months ended September 30, 2006.
      For the quarter ended September 30, 2006, net income decreased $1.3 million
      to
      $236,000 from $1.5 million for the quarter ended September 30, 2005. The
      Company’s net income for the three months resulted in a basic and diluted
      earnings per share of $.04. For the twelve months ended September 30, 2006,
      the
      Company recorded net income of $5,000 compared to net income of $1.6 million
      for
      the twelve months ended September 30, 2005.





Included
      in the Company’s results of operations for the three and twelve months ended
      September 30, 2005 was a pre-tax gain on the sale of premises of $2.9 million.
      Included in the Company’s results of operations for the three and twelve months
      ended September 30, 2006 was a charge of $1.5 million recorded as a result
      of
      the creation and funding of the MagyarBank Charitable Foundation.





Non-performing
      loans increased $4.8 million to $5.4 million at September 30, 2006 from $577,000
      at September 30, 2005. $5.1 million in loans to builder Kara Homes, LLC, as
      reported in the Company’s press release dated October 10, 2006, were responsible
      for the increase. Although the loans are secured by real estate and were
      performing as of September 30, 2006, management has placed this entire
      relationship on non-accrual status at year end. Loans made by the Bank to
      Solomon Dwek which were reported in the Company’s press release dated June 26,
      2006 are currently performing.





Provisions
      against loan losses totaled $361,000 for the three months ended September 30,
      2006 compared with $654,000 for the three months ended September 30, 2005.
      The
      Bank’s allowance for loan loss increased to $3.9 million, or 1.11% of loans, at
      September 30, 2006 from $3.1 million, or 1.16% of loans, at September 30, 2005.





For
      the
      three months ended September 30, 2006, net interest and dividend income
      increased $916,000, or 34.3%, over the three months ended September 30, 2005.
      At
      September 30, 2006, Magyar Bancorp had total assets of $434.2 million, an
      increase of $74.5 million, or 20.7%, from September 30, 2005.





“We
      are
      pleased to see our net interest margin increase during the fourth quarter,
      while
      continuing our growth in deposits and loans,” stated Elizabeth E. Hance,
      President and Chief Executive Officer of Magyar Bancorp. “Since September 30,
      2005, our total loans have grown by $81.4 million or 30.1%, while deposits
      also
      increased during this time, growing $47.5 million or 17.1%. In addition, we
      increased our net interest margin from 3.41% for the three months ended
      September 30, 2005 to 3.80% for the three months ended September 30,
      2006.”





The
      Bank
      also reported that it opened its fourth branch office in Branchburg, NJ in
      September 2006, and it has entered into an agreement with the University of
      Medicine and Dentistry, New Jersey to open a branch inside the Child Health
      Institute in New Brunswick. The branch is expected to open





in
      the
      second quarter of the Bank’s 2007 Fiscal Year, and will give Magyar a total of
      five locations, including two in New Brunswick.





Magyar
      Bancorp common stock is traded on the Nasdaq Global Market under the symbol
      “MGYR”.





Magyar
      Bancorp is the parent company of Magyar Bank, a community bank headquartered
      in
      New Brunswick, New Jersey. Magyar Bank has been serving families and businesses
      in Central New Jersey for over 80 years with a complete line of financial
      products and services, and today Magyar operates branch locations in New
      Brunswick, North Brunswick, South Brunswick and Branchburg. Visit Magyar online
      at www.magbank.com .





**Forward
      Looking Statements**


This
      press release contains statements about future events that constitute
      forward-looking statements within the meaning of the Section 27A of the
      Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
      Such forward-looking statements may be identified by reference to a future
      period or periods, or by the use of forward- looking terminology, such as “may,”
“will,” “believe,” “expect,” or similar terms or variations on those terms, or
      the negative of those terms. Forward-looking statements are subject to numerous
      risks and uncertainties, including, but not limited to, those risks previously
      disclosed in the Company’s filings 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, and with respect to
      the loans extended by the Bank to Kara Homes and Solomon Dwek, 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. The Company wishes to caution
      readers not to place undue reliance on any such forward-looking statements,
      which speak only as of the date made. The Company does not undertake and
      specifically declines any obligation to publicly release the result of any
      revisions that may be made to any forward-looking statements to reflect events
      or circumstances after the date of such statements or to reflect the occurrence
      of anticipated or unanticipated events.





Contact:
      John Reissner, 732.214.2083











Magyar
                  Bancorp, Inc.Selected
                  Consolidated Financial Data($
                  in thousand, except per share data)(Unaudited)Three
                  Months Ended
              
              Twelve
                  Months EndedSeptember
                  30,
              
              September
                  30,2006
              
              2005
              
              2006
              
              2005**Income
                  Statement Data:**Interest
                  and dividend income
              
              $
              6,713
              
              $
              4,614
              
              $
              23,595
              
              $
              15,577Interest
                  expense
              
              
              3,124
              
              
              1,941
              
              
              10,387
              
              
              6,020Net
                  interest income
              
              
              3,589
              
              
              2,673
              
              
              13,208
              
              
              9,557Provision
                  for loan losses
              
              
              361
              
              
              654
              
              
              961
              
              
              891Net
                  interest and dividend income afterprovision
                  for loan losses
              
              
              3,228
              
              
              2,019
              
              
              12,247
              
              
              8,666Non-interest
                  income
              
              
              265
              
              
              3,116
              
              
              978
              
              
              3,651Non-interest
                  expense
              
              
              3,099
              
              
              2,674
              
              
              13,348
              
              
              9,806Income
                  (loss) before income tax (benefit)
              
              
              394
              
              
              2,461
              
              
              (123
              )
              
              2,511Income
                  tax expense (benefit)
              
              
              158
              
              
              969
              
              
              (128
              )
              
              951Net
                  income
              
              $
              236
              
              $
              1,492
              
              $
              5
              
              $
              1,560**Per
                  Share Data:**Basic
                  earnings per share
              
              $
              0.04
              
              
              N/A
              
              
              N/A
              
              
              N/ABook
                  value per share
              
              $
              8.14
              
              
              N/A
              
              
              N/A
              
              
              N/A**Performance
                  Ratios**Return
                  on average assets
              
              
              0.23
              %
              
              1.72
              %
              
              0.00
              %
              
              1.80
              %Return
                  on average equity
              
              
              1.97
              %
              
              23.63
              %
              
              0.04
              %
              
              24.71
              %Net
                  interest margin
              
              
              3.80
              %
              
              3.41
              %
              
              3.62
              %
              
              3.36
              %**Balance
                  Sheet Data:**Total
                  Assets
              
              $
              434,204
              
              $
              359,705Loans
                  receivable
              
              
              351,861
              
              
              270,446Allowance
                  for loan losses
              
              
              (3,892
              )
              
              (3,129
              )Investment
                  securities - available for sale, at fair value
              
              
              18,169
              
              
              20,602Investment
                  securities - held to maturity, at cost
              
              
              23,895
              
              
              34,269Deposits
              
              
              325,602
              
              
              278,090Shareholders'
                  Equity
              
              
              48,212
              
              
              24,388**Asset
                  Quality**Nonaccrual
                  loans
              
              $
              5,378
              
              $
              577REO
                  property
              
              
              -
              
              
              -Allowance
                  for loan losses to total loans receivable
              
              
              1.11
              %
              
              1.16
              %Nonperforming
                  loans to total loans receivable
              
              
              1.53
              %
              
              0.21
              %