Magyar Bancorp, Inc. Announces Third Quarter Financial Results

Rhea-AI Summary

Magyar Bancorp (NASDAQ: MGYR) reported net income of $509,000 or $0.09 per share for the three months ending June 30, 2020, a decrease from $726,000 or $0.12 per share in the prior year. For the nine months, net income was $1.4 million or $0.24 per share, down from $2.2 million or $0.37 per share. The CEO highlighted the challenges posed by the Coronavirus pandemic, including increased loan loss provisions. Despite this, the bank provided over 300 businesses with loans via the Paycheck Protection Program, showing its commitment to supporting the community.

Positive

• Provided over 300 loans through the Paycheck Protection Program.
• Demonstrated strong liquidity and prudent management during the crisis.

Negative

• Net income decreased from $726,000 to $509,000 year-over-year.
• Increased loan loss provisions negatively impacted net income.

NEW BRUNSWICK, N.J., July 23, 2020 /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, 2020.

The Company reported net income of $509,000, or $0.09 per share, for the three months ended June 30, 2020, compared to net income of $726,000, or $0.12 per share, for the three months ended June 30, 2019.

Net income for the nine months ended June 30, 2020 was $1.4 million, or $0.24 per share, compared to net income of $2.2 million, or $0.37 per share, for the nine months ended June 30, 2019.

"The Coronavirus pandemic is arguably the most challenging time period Magyar has faced in its near 100 year history, and, as we have done in prior times of crisis, Magyar Bank has been at the forefront in assisting our customers and the community in navigating these unchartered waters," stated John Fitzgerald, President and CEO.

Mr. Fitzgerald continued, "The Bank provided over 300 businesses with loans through the Small Business Administration's Paycheck Protection Program, and, since the start of the crisis, we have offered loan deferrals to borrowers who are facing financial difficulty due to the pandemic. While economic headwinds weighed on our net income for the quarter, specifically, an increase in loan loss provisions to account for the uncertainty in our economy, we have been able to navigate the crisis well having been in a position of strength when it started. With a strong liquidity position and prudent management of our balance sheet, Magyar is prepared to adapt to the changeable conditions that we expect through the rest of our fiscal and calendar years."

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; 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.

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SOURCE Magyar Bancorp

FAQ

What are the latest financial results for Magyar Bancorp (MGYR)?

Magyar Bancorp reported a net income of $509,000 ($0.09 per share) for the quarter ending June 30, 2020.

How did Magyar Bancorp's net income change compared to last year?

For the three months ending June 30, 2020, net income decreased from $726,000 ($0.12 per share) in 2019.

What financial assistance did Magyar Bancorp provide during the pandemic?

Magyar Bancorp provided over 300 loans to businesses through the Paycheck Protection Program.

What challenges did Magyar Bancorp face in its latest quarter?

The bank faced increased loan loss provisions due to economic uncertainty from the Coronavirus pandemic.

How much did Magyar Bancorp report in net income for the nine months ended June 30, 2020?

For the nine months, net income was $1.4 million ($0.24 per share), down from $2.2 million in 2019.