NEWS
400 Somerset St., New Brunswick, NJ 08901
732.342.7600
MAGYAR BANCORP ANNOUNCES THIRD QUARTER EARNINGS
New Brunswick, New Jersey, July 26, 2006 - Magyar Bancorp (NASDAQ: MGYR), parent
company of Magyar Bank, announced today its results of operations for the three
and nine months ended June 30, 2006. For the quarter ended June 30, 2006, net
income increased 150.9% to $276,000 from $110,000 for the quarter ended June 30,
2005. The Company's net income for the three months resulted in a basic and
diluted earnings per share of $.05. For the nine months ended June 30, 2006, the
Company recorded a net loss of $231,000 compared to net income of $65,000 for
the nine months ended June 30, 2005. Included in the Company's results of
operations for the nine months ended June 30, 2006 was a pre-tax charge of $1.5
million recorded as a result of the creation and funding of the MagyarBank
charitable foundation.
For the three months ended June 30, 2006, net interest income increased $1.0
million, or 41.4%, over the three months ended June 30, 2005. At June 30, 2006,
Magyar Bancorp had total assets of $410.7 million, an increase of $83.2 million,
or 25.4%, from June 30, 2005.
"Our business strategy continues to produce strong growth in both our lending
operations and our deposit base," stated Elizabeth E. Hance, President and Chief
Executive Officer of Magyar Bancorp. "Since June 30, 2005, our total loans have
grown by $88.5 million or 37.0%, while deposits increased during this time,
growing $59.5 million or 23.0%. In addition, we've been able to increase our net
interest margin from 3.38% for the three months ended June 30, 2005, to 3.76%
for the three months ended June 30, 2006."
The Bank also reported that it anticipates opening its fourth branch office in
Branchburg, NJ in the latter half of the 4th Quarter.
Magyar Bancorp common stock is traded on the Nasdaq Global Market under the
symbol "MGYR".
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 for over 80 years with a complete
line of financial products and services, and today Magyar operates branch
locations in New Brunswick, North Brunswick and South Brunswick. Visit Magyar
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 Private Securities
Litigation Reform Act of 1995. Actual results could differ materially from those
projected in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to, 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.
Contact: John Reissner, 732.214.2083
Magyar Bancorp, Inc.
Selected Consolidated Financial Data
(dollars in thousands, except per share data)
Three Months Ended
June 30,
2006 2005
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Income Statement Data:
Interest and dividend income $ 6,119 $ 3,994
Interest expense 2,700 1,576
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Net interest income 3,419 2,418
Provision for loan losses 240 94
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Net interest and dividend income after
provision for loan losses 3,179 2,324
Non-interest income 210 171
Non-interest expense 2,991 2,339
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Income before income tax 398 156
Income tax expense 122 46
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Net income $ 276 $ 110
Balance Sheet Data:
Total Assets $ 410,736 $ 327,549
Loans receivable 328,015 239,476
Allowance for loan losses 3,714 2,467
Investment securities - available for sale, at fair value 16,903 22,086
Investment securities - held to maturity, at cost 27,403 36,275
Deposits 318,592 259,081
Shareholders' Equity 47,369 23,121
Performance Ratios
Return on average assets 0.27% 0.14%
Return on average equity 2.31% 1.75%
Net interest margin 3.76% 3.38%
Asset Quality
Nonaccrual loans $ 419 $ 1,679
Allowance for loan losses to total loans receivable 1.13% 1.03%
Nonperforming loans to total loans receivable 0.13% 0.70%
Per Share Data:
Basic and diluted earnings per share $ 0.05 N/A
Book value per share $ 8.00 N/A