NEW BRUNSWICK, N.J., April 29, 2011 /PRNewswire/ -- Magyar Bancorp (NASDAQ: MGYR) (the "Company"), parent company of Magyar Bank, reported today the results of its operations for the three and six months ended March 31, 2011.
The Company reported a net loss of $357,000 for the three months ended March 31, 2011, compared to net income of $279,000 for the three months ended March 31, 2010. Net loss for the six months ended March 31, 2011 was $230,000 compared to net income of $300,000 for the six months ended March 31, 2010.
The Company lost $0.06 per share for the three months ended March 31, 2011 and $0.04 per share for the six months ended March 31, 2011. For each of the three and six months ended March 31, 2010, basic and diluted earnings per share was $0.05.
"Our second quarter results were negatively affected by the still relatively weak housing market," stated John S. Fitzgerald, President and Chief Executive Officer. He continued, "Updated appraisals received on non-performing loans reflected a continued depreciation in real estate values, resulting in an increase in charge-offs and a net loss for the quarter. While the results for the quarter are disappointing, we continued to make progress during the quarter on property held as Other Real Estate Owned, increasing the total under contract in this portfolio to $8.1 million during the quarter."
He added, "In addition, we reduced our construction loan portfolio to under $40 million during the quarter, reducing construction loans as a percentage of total loans to 10%. Despite the net loss for the quarter, the reduction in the higher risk-weighted construction loan portfolio helped increase Magyar Bank's Tier 1 Leverage Ratio to 7.90% as of March 31, 2011. The Bank's Total Risk-Based Capital Ratio was 12.71% as of March 31, 2011."
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