Magyar Bancorp, Inc. Announces Third Quarter Financial Results

Rhea-AI Summary

Magyar Bancorp (NASDAQ: MGYR) announced significant growth in its financial results for the three and nine months ended June 30, 2021. Net income surged by 228% to $1.67 million for the quarter, compared to $509,000 a year earlier. For the nine months, net income rose to $4.51 million from $1.37 million. Earnings per share improved to $0.29 for the quarter and $0.78 for the nine-month period. The bank attributed its performance to a 16% increase in net interest income and prudent management of the balance sheet.

Positive

• Net income increased by 228% to $1.67 million for Q3 2021.
• Earnings per share rose to $0.29 for the three months ended June 30, 2021.
• Net interest income increased by 16% year-over-year.

Negative

• None.

NEW BRUNSWICK, N.J., July 26, 2021 /PRNewswire/ -- Magyar Bancorp (NASDAQ: MGYR) ("Company"), parent company of Magyar Bank, reported today the results of its operations for the three and nine months ended June 30, 2021.

The Company reported a 228% increase in its net income for the three months ended June 30, 2021, to $1,668,000 compared with net income of $509,000 for the three months ended June 30, 2020. Net income for the nine months ended June 30, 2021 was $4,510,000 compared with net income of $1,367,000 million for the nine months ended June 30, 2020.

Basic and diluted earnings per share were $0.29 for the three months ended June 30, 2021 compared to $0.09 for the three months ended June 30, 2020. Basic and diluted earnings per share were $0.78 for the nine months ended June 30, 2021 compared to $0.24 for the nine months ended June 30, 2020.

"We are pleased that our earnings growth remained strong in the third quarter," stated John Fitzgerald, President and Chief Executive Officer of Magyar Bancorp. "Our net interest margin increased 28 basis points during the quarter on a year over year basis despite historically low interest rates as a result of our prudent management of our balance sheet and continued benefits of participating in the Paycheck Protection Program (PPP).  In addition, our net interest and dividend income increased 16% over the same period last year thanks to smart loan growth.

"As we head into the final quarter of our fiscal year, we're excited about the opportunities the completion of the second step presents for Magyar Bank. The additional capital will fuel new opportunities for smart, prudent growth, and we expect to close our fiscal year with continued positive earnings momentum."

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 Magyar Bancorp's earnings for the third quarter of 2021?

Magyar Bancorp reported a net income of $1.67 million for the third quarter ended June 30, 2021.

How did earnings per share change for MGYR in the most recent quarterly report?

Earnings per share for Magyar Bancorp increased to $0.29 for the three months ended June 30, 2021, up from $0.09 in the same period last year.

What is the outlook for Magyar Bancorp following the recent financial results?

The company expects continued positive earnings momentum as it heads into the final quarter of its fiscal year.