NEW BRUNSWICK, N.J., Jan. 25, 2011 /PRNewswire/ -- Magyar Bancorp (Nasdaq: MGYR) ("Company"), parent company of Magyar Bank, reported today the results of its operations for the three months ended December 31, 2010.
The Company reported net income of $127,000 for the three months ended December 31, 2010, compared to net income of $21,000 for the three months ended December 31, 2009.
Basic and diluted earnings per share were $0.022 for the three months ended December 31, 2010, compared with basic and diluted earnings per share of $0.004 for the three months ended December 31, 2009.
"The positive earnings momentum from 2010 continued in our first quarter of 2011 despite continued headwinds from the low interest rate environment and current economic conditions," stated John Fitzgerald, President and Chief Executive Officer. "Interest rates remained at historically low levels for commercial loans and residential mortgages throughout the quarter prompting an increase in prepayments and refinancing activity which impacted our net interest margin."We made significant progress in reducing our construction loan portfolio during the quarter to $44.2 million or 11.1% of total loans. As a result of the positive earnings and reduction in the higher risk-weighted construction loan portfolio, the capital ratios for Magyar Bank increased again this quarter. Magyar Bank's Tier 1 Leverage Ratio as of December 31, 2010 was 7.88%, while the Total Risk Based Ratio was 12.96%. "While total non-performing loans did show a slight increase for the quarter, we expect to see this level trend downward during fiscal year 2011 as we see further stability in the loan portfolio and continued progress on disposing of property held as real estate owned. In our first quarter, we successfully disposed of two properties held as other real estate owned totaling $383,000, and we entered into a contract to sell a condominium project carried at $2.9 million. As of December 31, 2010 the Company had contracts of sale or was negotiating contracts of sale on nine properties with a carrying value of $6.7 million." 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