MAGYAR BANCORP, INC. ANNOUNCES STOCK REPURCHASE PROGRAM

Rhea-AI Summary

Magyar Bancorp (NASDAQ: MGYR) has announced a stock repurchase program, authorizing the buyback of up to 5% of its outstanding shares, translating to approximately 354,891 shares. The decision is based on market conditions and the company's liquidity needs. CEO John Fitzgerald emphasized confidence in the stock's value at current prices, indicating that this capital deployment is a strategic move. Repurchased shares will be held as treasury stock for corporate purposes.

Positive

• Authorization of a stock buyback program of 5% of outstanding shares, enhancing shareholder value.
• CEO's confidence in stock valuation at current trading prices.

Negative

• None.

NEW BRUNSWICK, N.J., July 21, 2022 /PRNewswire/ -- Magyar Bancorp, Inc. (NASDAQ: MGYR) announced today that its Board of Directors has authorized a stock repurchase program pursuant to which the Company intends to repurchase up to 5% of its outstanding shares, or up to 354,891 shares. The timing of the repurchases will depend on certain factors, including but not limited to, market conditions and prices, the Company's liquidity requirements and alternative uses of capital. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes.

John Fitzgerald, President and Chief Executive Officer of the Company, stated "We are pleased to announce the repurchase program. We believe our common stock is an attractive value at current trading prices and we believe the deployment of some of the Company's capital into this investment is warranted."

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 is the stock repurchase program announced by Magyar Bancorp?

Magyar Bancorp announced a stock repurchase program to buy back up to 5% of its outstanding shares, or about 354,891 shares.

Why is Magyar Bancorp conducting a stock buyback?

The company believes its common stock is an attractive value at current prices, making the repurchase a strategic capital deployment.

What might affect the timing of the stock repurchases by Magyar Bancorp?

The timing will depend on factors including market conditions, liquidity requirements, and alternative uses of capital.

How will repurchased shares be utilized by Magyar Bancorp?

Repurchased shares will be held as treasury stock and will be available for general corporate purposes.

What is the expected impact of the stock repurchase on MGYR's stock price?

While the exact impact is unpredictable, buybacks typically aim to enhance shareholder value and may positively affect stock prices.