NEW BRUNSWICK, N.J., July 26, 2011 /PRNewswire/ -- Magyar Bancorp (Nasdaq: MGYR) (the "Company"), parent company of Magyar Bank, reported today the results of its operations for the three and nine months ended June 30, 2011.
The Company reported net income of $19,000 for the three months ended June 30, 2011, compared to net income of $3.5 million for the three months ended June 30, 2010. Net loss for the nine months ended June 30, 2011 was $211,000 compared to net income of $3.8 million for the nine months ended June 30, 2010. The prior year three- and nine-month periods included a $3.4 million and $3.8 million tax benefit due to the reversal of a portion of a valuation allowance against the Company's deferred tax asset.
The Company earned $0.003 per share for the three months ended June 30, 2011 and lost $0.04 per share for the nine months ended June 30, 2011. For the three and nine months ended June 30, 2010, earnings per share were $0.61 and $0.66, respectively.
"Our third quarter results continued to be affected by the weak housing market," stated John S. Fitzgerald, President and Chief Executive Officer. He continued, "Updated appraisals received on non-performing loans and other real estate owned, which are completed at least annually, continue to reflect depreciation in real estate values, resulting in additional charge-offs on impaired loans of $363,000 and losses on other real estate owned of $132,000 during the quarter. However, we were able to offset these losses with improvement in the Bank's core earnings via a higher net interest margin and lower non-interest expenses. I expect the actions taken over the past 18 months to continue positioning the Bank for higher earnings in the future."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 five branch locations in New Brunswick, 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