NEW BRUNSWICK, N.J., Nov. 15, 2012 /PRNewswire/ -- 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, 2012.
The Company reported net income of $295,000 for the three months ended September 30, 2012, compared to a net loss of $36,000 for the three months ended September 30, 2011. The Company reported net income for the year ended September 30, 2012 of $509,000, compared to a net loss of $249,000 for the year ended September 30, 2011. The basic and diluted earnings per share were $0.05 and $0.09 for the three and twelve months ended September 30, 2012, compared with losses per share for the three months and twelve months ended September 30, 2011 of $0.01 and $0.04, respectively.
"Fiscal 2012 was very positive for Magyar Bank," stated John Fitzgerald, President and Chief Executive Officer. "Over the past 12 months, the Bank made significant progress in cleaning up its balance sheet reducing total non-performing loans by 28% and total non-performing assets by 25%. As a result of our ability to replace these non-earning assets with earning assets, our net interest margin for the twelve months ending September 30, 2012 increased to 3.21% from 3.11% for the year prior during a very challenging interest rate environment."
Mr. Fitzgerald added, "For the fiscal year ended September 30, 2012, the Bank sold six properties with a carrying value of $7.6 million that were previously held by the Bank as Other Real Estate Owned ("OREO"), including two properties that were sold during the Company's fourth quarter that had a carrying value of $3.9 million. We expect the momentum generated in 2012 in addressing non-performing assets to continue into Fiscal Year 2013 as the Bank has accepted contracts of sale for six additional properties held as OREO with aggregate carrying values of $1.1 million which we expect will close in the coming quarters."
Mr. Fitzgerald continued, "Magyar Bank further strengthened its capital ratios during the year. The Bank's Tier 1 leverage ratio as of September 30, 2012 increased to 8.40%, while the total risk based capital ratio remained stable at 13.21%. While the economic environment remains uncertain, our focus for Fiscal Year 2013 will continue to be on strengthening our balance sheet, managing expenses and increasing the Company's core profitability."
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, 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