Magyar Bancorp, Inc. Announces First Quarter Financial Results

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Magyar Bancorp (NASDAQ: MGYR) reported a net income of $1,337,000 for the quarter ending December 31, 2020, a 142% increase from $553,000 in the same period in 2019. Earnings per share rose to $0.23 from $0.10. The company's net interest and dividend income increased by 18%, driven by a growing loan portfolio. Despite a decline in net interest margin due to low interest rates, additional income was generated from the Middlesex County Small Business Relief Grant. The company remains optimistic about future earnings supported by ongoing relief programs.

Positive

• 142% increase in net income to $1,337,000
• EPS rose to $0.23 from $0.10
• 18% growth in net interest and dividend income year-over-year
• Diversified income sources from relief programs

Negative

• Decline in net interest margin due to historically low interest rates

NEW BRUNSWICK, N.J., Jan. 25, 2021 /PRNewswire/ -- Magyar Bancorp (NASDAQ: MGYR) ("Company"), parent company of Magyar Bank, reported today the results of its operations for the three months ended December 31, 2020.

The Company reported a 142% increase in its net income for the three months ended December 31, 2020, to $1,337,000 compared with net income of $553,000 for the three months ended December 31, 2019.

Basic and diluted earnings per share were $0.23 for the three months ended December 31, 2020 compared to $0.10 for the three months ended December 31, 2019.

"We are pleased to announce an incredibly strong start to our 2021 Fiscal Year," stated John Fitzgerald, President and Chief Executive Officer of Magyar Bancorp. "Building on the momentum that was generated in 2020, our net interest and dividend income increased 18% compared to December 31, 2019 due to the increase in our loan portfolio on a year over year basis. In addition, the Bank's efforts to help those significantly impacted by the pandemic have produced additional sources of income for the Company. Fees generated by Magyar's role in the Middlesex County Small Business Relief Grant helped diversify the Company's income during a quarter that saw our net interest margin decline as interest rates remained at historically low levels. Looking ahead, we're hopeful the start of the vaccine rollout will slowly bring the pandemic under control and start to return our economy back to normal. Additional non-interest income opportunities through the Middlesex County Grant Program, and the second round of the Paycheck Protection Program will continue to augment the Bank's income in the coming months, and we expect to see continued positive earnings momentum through the rest of the 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.  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; and the risk that significant expense may be incurred by the Company in connection with the resolution of non-performing 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.

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SOURCE Magyar Bancorp

FAQ

What were the financial results for Magyar Bancorp for Q1 2021?

Magyar Bancorp reported a net income of $1,337,000, a 142% increase compared to the previous year.

How much did Magyar Bancorp's earnings per share increase?

Earnings per share increased from $0.10 to $0.23 for the quarter ended December 31, 2020.

What factors contributed to Magyar Bancorp's income in Q1 2021?

The increase in income was driven by an 18% growth in net interest and dividend income and contributions from the Middlesex County Small Business Relief Grant.

What challenges did Magyar Bancorp face in Q1 2021?

The company experienced a decline in net interest margin due to low interest rates.

What is the outlook for Magyar Bancorp in 2021?

The company anticipates continued positive earnings momentum supported by relief programs and the economic recovery from the pandemic.