CHATHAM, N.J., Jan. 20 /PRNewswire/ -- PL Capital, LLC and its affiliates, the largest outside shareholder of Magyar Bancorp, Inc. (Nasdaq: MGYR), plan to withhold their votes for both Directors up for election at the upcoming Annual Meeting of the Shareholders of Magyar Bancorp, Inc. ("Magyar" or the "Company"). The Annual Meeting is scheduled for February 23, 2010 at 2:00 pm EST at The Heldrich, 10 Livingston Avenue, New Brunswick, New Jersey.
The PL Capital Group is also actively encouraging other shareholders of Magyar to withhold their vote on the two Directors up for election and to show up at the Annual Meeting and respectfully demand accountability from Magyar's Directors and management.
PL Capital principal Rich Lashley noted, "We are taking this step because we believe Magyar is in a crisis. Magyar lost $6.1 million in Fiscal 2009 after losing $2.9 million in Fiscal 2008. Approximately 7.0% of Magyar's assets are non-performing, which is approximately three times the nonperforming asset level of the average publicly traded thrift in the U.S., based upon recent data. Magyar's stock is down 74% from its peak in May 2007 and down 63% from the January 2006 stock offering."
"Shocking to us, despite Magyar's significant losses and problems, the Directors of Magyar voted themselves a raise in fiscal 2009 and directors' fees have risen every year since Magyar went public. Also, to our knowledge the Directors of Magyar have refused to pursue a sale of Magyar in a so-called remutualization transaction, which in our view is the best way for Magyar's shareholders to recover the shareholder value destroyed in the past few years," noted PL Capital principal John Palmer. "The Magyar Directors have also failed to even respond to our request to reduce their fees and benefits by 50%, at least until such time as Magyar's results recover," Mr. Palmer added.The PL Capital Group, Magyar's largest outside shareholder, owns in excess of 365,000 shares.