NEW BRUNSWICK, N.J., April 27, 2020 /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, 2020.
The Company reported net income of $305,000 for the three months ended March 31, 2020, compared with net income of $767,000 for the three months ended March 31, 2019. Net income for the six months ended March 31, 2020 was $858,000 compared with net income of $1.5 million for the six months ended March 31, 2019.
The net income per share was $0.05 for the three months ended March 31, 2020 compared to $0.13 for the three months ended March 31, 2019. Net income per share was $0.15 for the six months ended March 31, 2020 compared to $0.25 for the six months ended March 31, 2019.
"The Coronavirus pandemic has completely changed our world, and has significantly impacted our local economy in a very short period of time," stated John Fitzgerald, President and CEO.
Mr. Fitzgerald continued, "Since the start of the crisis, Magyar Bank has been proactive in assisting our customers by offering loan deferrals to borrowers and actively participating in the Paycheck Protection Program to further assist small businesses. And while customer interaction is limited to drive-thru services only for the time being, our customers continue to have access to their accounts through our online and mobile banking services. The exact impact the pandemic will have on our economy is yet to be determined, but the Bank has increased its loan loss provisions this quarter in anticipation of recessionary conditions, and will closely monitor the situation moving forward."
Mr. Fitzgerald added, "Throughout our nearly 100-year history, we've seen our share of challenging times. In each case the Bank, and our community, have come out stronger than ever, and I have no reason to doubt the same will be true this time around."
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 seven branch locations in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison (2). 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; the risk that significant expense may be incurred by the Company in connection with the resolution of these loans; and the risk that expected resolutions of other real estate owned may not occur or may be delayed.
Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; as the result of the decline in the Federal Reserve Board's target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; and our cyber security risks are increased as the result of an increase in the number of employees working remotely.
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