NEW BRUNSWICK, N.J., Nov. 15, 2010 /PRNewswire-FirstCall/ -- Magyar Bancorp (Nasdaq: MGYR) ("Company"), parent company of Magyar Bank, reported today the results of its operations for the three months and year ended September 30, 2010.
The Company reported net income of $107,000 for the three months ended September 30, 2010, compared to net income of $101,000 for the three months ended September 30, 2009. The Company reported net income for the year ended September 30, 2010 of $3.9 million, compared to a net loss of $6.1 million for the year ended September 30, 2009.
Basic and diluted earnings per share were $0.02 and $0.68 for the three and twelve months ended September 30, 2010, compared with basic and diluted earnings (losses) per share for the three months and twelve months ended September 30, 2009 of $0.02 and ($1.06), respectively.
"We are very pleased to report positive fourth quarter results, and a return to profitability for the fiscal year," stated John Fitzgerald, President and Chief Executive Officer. "Our fourth quarter produced a fifth consecutive quarter of positive earnings, and concluded a very positive fiscal year 2010 for Magyar. Despite the low interest rate environment, we increased our net interest margin 38 basis points for the year by successfully increasing our core deposit base and reducing higher cost time deposits. In addition, we made excellent progress in reducing our construction loan portfolio by $36.1 million, or 39%, from 2009."Mr. Fitzgerald added, "During the fourth quarter, we sold a catering facility held as other real estate owned valued at $2.2 million. This sale confirms that our strategy of accepting deeds-in-lieu allows us to address our credit issues in a more efficient and timely manner. Our level of non-performing assets decreased during the quarter, and while we expect this level to remain higher than normal in fiscal year 2011, we continue to see strong interest in properties held by the Bank and have several properties under contract which we anticipate will close in the coming quarters. We expect the positive trends in the resolution of these properties to continue as we head into fiscal year 2011. In addition, Magyar Bank continues to strengthen its capital ratios during this difficult economic period. The Bank's leverage ratio as of September 30, 2010 increased to 7.80%, while our total risk based capital ratio increased to 12.59%." For more information, visit the Investor Relations section of our website at magbank.com. 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 six branch locations in New Brunswick (2), North Brunswick, South Brunswick, Branchburg and Bridgewater. 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