NEW BRUNSWICK, N.J., July 25, 2016 /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, 2016.
The Company reported net income of $252,000 for the three months ended June 30, 2016, compared to net income of $245,000 for the three months ended June 30, 2015. Net income for the nine months ended June 30, 2016 was $740,000 compared to net income of $574,000 for the nine months ended June 30, 2015.
The net income per share was $0.04 for the three months ended June 30, 2016 and 2015. The net income per share was $0.13 for the nine months ended June 30, 2016 compared to $0.10 for the nine months ended June 30, 2015.
"We are pleased with our strong third quarter performance," stated John Fitzgerald, President and Chief Executive Officer. "Recent loan growth enabled us to increase interest and dividend income 6.3% on a year over year basis. In addition, we sold thirteen properties in other real estate owned totaling $2.8 million, reducing our non-performing loans 33% for the fiscal year to date, and our non-performing assets by 20% for the same time period. The sale of these properties allowed the bank to return the assets to interest earning assets which improved our interest income for the quarter, and we expect this to have a similar impact for the rest of our fiscal year."
Mr. Fitzgerald added, "We are also pleased to see our net interest margin remain relatively flat in an environment that saw the 10-year Treasury dip to near record lows during the later stages of the third quarter. As of June 30, 2016, our net interest margin was 3.37% for the three month period, only 1 basis point less than the same three month period in 2015. With continued improvement in our core earnings and further reduction in our levels of non-performing assets, we expect to maintain our earnings momentum as we head into the second half of our fiscal year."
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 nine 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; 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. 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