Magyar Bancorp, Inc. Announces Fourth Quarter And Year End Financial Results
Magyar Bancorp (NASDAQ: MGYR) reported net income of $823,000 for Q4 2020, slightly up from $818,000 in Q4 2019. However, annual net income fell to $2,190,000 from $2,996,000 year-over-year. EPS for Q4 was $0.14, unchanged from the previous year, but down from $0.51 for the full year. The bank aided nearly 300 borrowers during the pandemic with loan deferrals yet increased its loan loss allowance due to economic uncertainty. The future remains uncertain due to the pandemic's impact, potential election implications, and fiscal stimulus uncertainties.
- Q4 2020 net income increased to $823,000 compared to $818,000 in Q4 2019.
- No decline in net income for Q4 compared to the previous year despite economic challenges.
- Annual net income decreased from $2,996,000 in 2019 to $2,190,000 in 2020.
- EPS fell from $0.51 for the year to $0.14 in Q4 2020.
- Increased allowance for loan losses due to economic uncertainty.
NEW BRUNSWICK, N.J., Nov. 4, 2020 /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, 2020.
The Company reported net income of
President and Chief Executive Officer John Fitzgerald said, "Our fourth quarter and year end results reflect our collaborative efforts of providing the highest level of service and most needed assistance to our customers, while managing a strong balance sheet with minimal interest rate risk during this time of economic uncertainty. Despite the outbreak of the COVID-19 pandemic and the subsequent closure of our economy, coupled with historically low interest rates, we are proud to report fourth quarter earnings equal to those of same quarter last year."
Mr. Fitzgerald continued, "The Bank provided relief to nearly 300 borrowers with loan payment deferrals and fee waivers during the peak of the pandemic. We are equally pleased that the overwhelming majority of these borrowers have resumed making payments. However, despite the strong resiliency displayed by our borrowers, the Bank has prudently increased its allowance for loan loss to account for the ongoing uncertainty in our economy. The increased provisions for loan loss offset a
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; and the risk that significant expense may be incurred by the Company in connection with the resolution of these loans. In addition, the COVID-19 pandemic continues to have an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the pandemic on the Company's 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 the extent to which the economy can open and remain open. 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
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