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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 $823,000 for the three months ended September 30, 2020 compared to net income of $818,000 for the three months ended September 30, 2019. The Company also reported $2,190,000 in net income for the year ended September 30, 2020 compared with $2,996,000 for the year ended September 30, 2019. The basic and diluted earnings per share were $0.14 and $0.38 for the three and twelve months ended September 30, 2020, compared with basic and diluted earnings per share for the three months and twelve months ended September 30, 2019 of $0.14 and $0.51, respectively.
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 $1.0 million increase in our net interest and dividend income year-over-year. As we look forward into fiscal year 2021, the path of the economic recovery remains unclear due to the continued impact of the COVID-19 pandemic, the potential impact of the Presidential election and the uncertainty of any further fiscal stimulus. With a strong liquidity position and prudent management of our balance sheet, Magyar is well-prepared to face both the known and unknown challenges facing the Bank in 2021."
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.
SOURCE Magyar Bancorp