MAGYAR BANCORP, INC. ANNOUNCES THIRD QUARTER FINANCIAL RESULTS, DECLARES DIVIDEND, APPOINTS MICHAEL R. LOMBARDI AS DIRECTOR

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Magyar Bancorp (NASDAQ: MGYR) reported financial results for Q3 2024. The company's net income was $1.7 million for the quarter and $5.2 million for the nine months ended June 30, 2024. Basic and diluted earnings per share were $0.27 for Q3 and $0.83 for the nine-month period. The Board declared a quarterly cash dividend of $0.05 per share, payable on August 22, 2024.

Michael R. Lombardi was elected as a Director. The company faced challenges due to the interest rate environment, impacting net interest margin. However, continued loan growth helped mitigate some effects. Non-performing loans decreased to 0.60% of total loans. Magyar Bancorp also announced plans to open a new branch office in Martinsville, New Jersey.

Positive

• Net income of $1.7 million for Q3 2024 and $5.2 million for nine months
• Quarterly cash dividend of $0.05 per share declared
• Non-performing loans decreased to 0.60% of total loans
• Continued loan growth helping to mitigate interest rate impacts
• New branch office planned in Martinsville, New Jersey

Negative

• Challenging interest rate environment impacting net interest margin
• Increased cost of funds due to rate-sensitive deposit acquisition and retention

News Market Reaction

-1.66%

1 alert

-1.66% News Effect

On the day this news was published, MGYR declined 1.66%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW BRUNSWICK, N.J., July 25, 2024 /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, 2024.

The Company's net income was $1.7 million for the three months ended June 30, 2024 and $5.2 million for the nine months ended June 30, 2024. Basic and diluted earnings per share were $0.27 for the three months ended June 30, 2024 and $0.83 for the nine months ended June 30, 2024.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share, which will be paid on August 22, 2024 to stockholders of record as of August 8, 2024.

The Company further announced that Michael R. Lombardi was elected to serve as Director of the Company on July 25, 2024. Mr. Lombardi will serve as a member of the class of Directors whose term expires following the fiscal year ending September 30, 2026.

"The challenging interest rate environment continues to impact our net interest margin," stated John Fitzgerald, President and Chief Executive Officer of Magyar Bancorp. "During the past quarter our cost of funds increased as deposit acquisition and retention becomes more rate sensitive, however our continued loan growth has helped mitigate some of its impact and we anticipate that our margin will begin to stabilize during the second half of the calendar year."

Mr. Fitzgerald continued, "We are pleased with the continued strength of our loan portfolio during this era of high inflation, with our non-performing loans declining to 0.60% of total loans during the quarter. In addition, we are pleased to announce that we have entered into a lease for a new branch office in Martinsville, New Jersey, which will further strengthen our ability to serve customers in the Somerset County market."

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, levels of uninsured deposits, 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.

View original content:https://www.prnewswire.com/news-releases/magyar-bancorp-inc-announces-third-quarter-financial-results-declares-dividend-appoints-michael-r-lombardi-as-director-302206769.html

SOURCE Magyar Bancorp

FAQ

What was Magyar Bancorp's (MGYR) net income for Q3 2024?

Magyar Bancorp (MGYR) reported a net income of $1.7 million for the three months ended June 30, 2024.

What is the quarterly dividend announced by Magyar Bancorp (MGYR) in July 2024?

Magyar Bancorp (MGYR) declared a quarterly cash dividend of $0.05 per share, payable on August 22, 2024 to stockholders of record as of August 8, 2024.

Who was appointed as a new director of Magyar Bancorp (MGYR) in July 2024?

Michael R. Lombardi was elected to serve as Director of Magyar Bancorp (MGYR) on July 25, 2024.

What percentage of total loans were non-performing for Magyar Bancorp (MGYR) in Q3 2024?

Magyar Bancorp (MGYR) reported that non-performing loans declined to 0.60% of total loans during the quarter ended June 30, 2024.

Where is Magyar Bancorp (MGYR) planning to open a new branch office?

Magyar Bancorp (MGYR) announced plans to open a new branch office in Martinsville, New Jersey, to strengthen its presence in the Somerset County market.