Magyar Bancorp, Inc. Announces First Quarter Financial Results
NEW BRUNSWICK, N.J., Jan. 26, 2012 /PRNewswire/ -- Magyar Bancorp (MGYR) ("Company"), parent company of Magyar Bank, reported today the results of its operations for the three months ended December 31, 2011.
The Company reported net income of $31,000 for the three months ended December 31, 2011, compared to net income of $127,000 for the three months ended December 31, 2010.
Basic and diluted earnings per share were $0.01 for the three months ended December 31, 2011, compared with basic and diluted earnings per share of $0.02 for the three months ended December 31, 2010.
"Magyar Bank made significant strides in reducing our level of non-performing assets during the first quarter," stated John Fitzgerald, President and Chief Executive Officer. "With the sale of $3.2 million in Other Real Estate Owned during the quarter, and a $3.2 million reduction in non-performing loans, non-performing assets decreased 11.4% on a linked quarter basis, and we expect this trend to continue throughout our fiscal year."
"Furthermore, Magyar saw an increase in checking deposits in the first quarter, allowing the Bank to reduce the level of higher cost time deposits to 39.9% of total deposits. This helped the Bank increase its net interest margin to 3.07% during the quarter, despite the continued decline in long-term interest rates."
Mr. Fitzgerald added, "In addition, the Bank booked several new commercial real estate loans during the quarter, replacing non-performing assets with earning assets which when combined with the continued resolution of credit issues will improve core earnings throughout the year."
About Magyar Bancorp
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 since 1922 with a complete line of financial products and services. Today, Magyar operates branch locations in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison. Please visit us 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 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. 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.
SOURCE Magyar Bancorp