Magyar Bancorp Inc. (MGYR, Financial) filed Quarterly Report for the period ended 2009-06-30.
Magyar Bancorp Inc. is the parent company of Magyar Bank in New Brunswick New Jersey. Magyar Bank offers a complete line of retail and business banking products with offices in New Brunswick North Brunswick and South Brunswick New Jersey. It offers low-to-moderate income mortgages that provide home ownership opportunities to many families & help stabilize urban neighborhoods. It invests in communities by offering business loans resulting in employment opportunites. They are committed to provide service that consistently exceeds the needs of customers and clients. They believe that quality personlized service will result in long-term customer & business relationships. Magyar Bancorp Inc. has a market cap of $28.8 million; its shares were traded at around $5 with and P/S ratio of 0.9.
Total non-performing loans increased by $13.2 million to $33.2 million at June 30, 2009 from $20.1 million at September 30, 2008. Non-performing loans consisted of fourteen (14) construction loans totaling $22.4 million, six (6) commercial real estate loans totaling $7.5 million, seven (7) loans secured by one-to-four family residential properties totaling $2.5 million and five (5) commercial business loans totaling $813,000.
Construction loans may contain interest reserves on which the interest is capitalized to the loan. At June 30, 2009, there were 12 performing construction loans with interest reserves representing outstanding balances of $24.1 million, original interest reserves of $2.4 million, advanced interest reserves of $621,000, and remaining interest reserve balances of $1.8 million. At March 31, 2009, there were 15 performing construction loans with interest reserves representing outstanding balances of $25.1 million, original interest reserves of $3.4 million, advanced interest reserves of $1.3 million, and remaining interest reserve balances of $2.1 million. At December 31, 2008, there were 15 performing construction loans with interest reserves representing outstanding balances of $18.8 million, original interest reserves of $2.7 million, advanced interest reserves of $1.5 million, and remaining interest reserve balances of $1.2 million. At September 30, 2008, there were 14 performing construction loans with interest reserves representing outstanding balances of $20.1 million, original interest reserves of $2.9 million, advanced interest reserves of $1.6 million, and remaining interest reserve balances of $1.3 million.
Non-performing loans secured by one-to four-family residential properties increased $0.9 million to $2.5 million at June 30, 2009 from $1.6 million at September 30, 2008. Of these non-performing loans, one loan totaling $1.0 million was made to a developer that had been negatively impacted by the downturn in the real estate market. In addition to this loan, there were six non-performing owner-occupied mortgage loans totaling $1.5 million. Magyar Bank had begun foreclosure proceedings on the majority of the properties as of June 30, 2009. The Bank anticipates receiving a deed-in-lieu of foreclosure on one of the loans totaling $426,000 in the next quarter. Year-to-date, Magyar Bank had charged off $771,000 in non-performing loans secured by one-to four-family residential properties through a reduction of its allowance for loan loss.
Securities available-for-sale decreased $21.5 million, or 43.6%, to $27.8 million at June 30, 2009 from $49.3 million at September 30, 2008. The decrease was the result of $36.7 million in securities sold and $5.5 million in principal payments partially offset by $19.1 million in new security purchases and an increase in the market value of securities available-for-sale of $437,000. Securities held-to-maturity increased $33.2 million, or 344.8%, to $42.8 million at June 30, 2009 from $9.6 million at September 30, 2008. The increase was the result of $35.3 million in new security purchases partially offset by $2.1 million in principal payments.
Total deposits increased $67.5 million, or 18.0%, to $443.0 million at June 30, 2009. The increase was primarily due to higher balances in saving accounts, which increased $23.2 million, or 68.0%, to $57.3 million at June 30, 2009 from $34.1 million at September 30, 2008. Certificates of deposit (including retirement accounts) increased $17.2 million, or 12.5%, to $224.0 million at June 30, 2009 from $206.8 million at September 30, 2008. The $17.2 million increase included a $6.2 increase in CDARS time deposits, a CD instrument that provides FDIC insurance up to $50 million. Other significant changes in total deposits over the nine month period included increases in interest-bearing NOW accounts of $13.6 million, or 37.7%, to $49.8 million, increases in demand accounts of $9.0 million, or 36.3% to $33.7 million, and increases in money market accounts of $4.5 million, or 6.1%, to $78.3 million.
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Magyar Bancorp Inc. is the parent company of Magyar Bank in New Brunswick New Jersey. Magyar Bank offers a complete line of retail and business banking products with offices in New Brunswick North Brunswick and South Brunswick New Jersey. It offers low-to-moderate income mortgages that provide home ownership opportunities to many families & help stabilize urban neighborhoods. It invests in communities by offering business loans resulting in employment opportunites. They are committed to provide service that consistently exceeds the needs of customers and clients. They believe that quality personlized service will result in long-term customer & business relationships. Magyar Bancorp Inc. has a market cap of $28.8 million; its shares were traded at around $5 with and P/S ratio of 0.9.
Highlight of Business Operations:
Net loans receivable increased $32.5 million, or 8.0%, to $438.6 million at June 30, 2009 from $406.1 million at September 30, 2008. During the nine months ended June 30, 2009, one-to-four family residential mortgage loans increased $12.1 million, or 7.6%, to $169.9 million. In addition, commercial real estate loans and commercial business loans increased $11.4 million, or 12.3%, and $3.1 million, or 8.7%, to $104.3 million and $39.1 million, respectively. Home equity lines of credit increased $5.4 million, or 34.1% to $21.3 million. Construction loans increased $5.4 million, or 5.8%, to $98.3 million at June 30, 2009.Total non-performing loans increased by $13.2 million to $33.2 million at June 30, 2009 from $20.1 million at September 30, 2008. Non-performing loans consisted of fourteen (14) construction loans totaling $22.4 million, six (6) commercial real estate loans totaling $7.5 million, seven (7) loans secured by one-to-four family residential properties totaling $2.5 million and five (5) commercial business loans totaling $813,000.
Construction loans may contain interest reserves on which the interest is capitalized to the loan. At June 30, 2009, there were 12 performing construction loans with interest reserves representing outstanding balances of $24.1 million, original interest reserves of $2.4 million, advanced interest reserves of $621,000, and remaining interest reserve balances of $1.8 million. At March 31, 2009, there were 15 performing construction loans with interest reserves representing outstanding balances of $25.1 million, original interest reserves of $3.4 million, advanced interest reserves of $1.3 million, and remaining interest reserve balances of $2.1 million. At December 31, 2008, there were 15 performing construction loans with interest reserves representing outstanding balances of $18.8 million, original interest reserves of $2.7 million, advanced interest reserves of $1.5 million, and remaining interest reserve balances of $1.2 million. At September 30, 2008, there were 14 performing construction loans with interest reserves representing outstanding balances of $20.1 million, original interest reserves of $2.9 million, advanced interest reserves of $1.6 million, and remaining interest reserve balances of $1.3 million.
Non-performing loans secured by one-to four-family residential properties increased $0.9 million to $2.5 million at June 30, 2009 from $1.6 million at September 30, 2008. Of these non-performing loans, one loan totaling $1.0 million was made to a developer that had been negatively impacted by the downturn in the real estate market. In addition to this loan, there were six non-performing owner-occupied mortgage loans totaling $1.5 million. Magyar Bank had begun foreclosure proceedings on the majority of the properties as of June 30, 2009. The Bank anticipates receiving a deed-in-lieu of foreclosure on one of the loans totaling $426,000 in the next quarter. Year-to-date, Magyar Bank had charged off $771,000 in non-performing loans secured by one-to four-family residential properties through a reduction of its allowance for loan loss.
Securities available-for-sale decreased $21.5 million, or 43.6%, to $27.8 million at June 30, 2009 from $49.3 million at September 30, 2008. The decrease was the result of $36.7 million in securities sold and $5.5 million in principal payments partially offset by $19.1 million in new security purchases and an increase in the market value of securities available-for-sale of $437,000. Securities held-to-maturity increased $33.2 million, or 344.8%, to $42.8 million at June 30, 2009 from $9.6 million at September 30, 2008. The increase was the result of $35.3 million in new security purchases partially offset by $2.1 million in principal payments.
Total deposits increased $67.5 million, or 18.0%, to $443.0 million at June 30, 2009. The increase was primarily due to higher balances in saving accounts, which increased $23.2 million, or 68.0%, to $57.3 million at June 30, 2009 from $34.1 million at September 30, 2008. Certificates of deposit (including retirement accounts) increased $17.2 million, or 12.5%, to $224.0 million at June 30, 2009 from $206.8 million at September 30, 2008. The $17.2 million increase included a $6.2 increase in CDARS time deposits, a CD instrument that provides FDIC insurance up to $50 million. Other significant changes in total deposits over the nine month period included increases in interest-bearing NOW accounts of $13.6 million, or 37.7%, to $49.8 million, increases in demand accounts of $9.0 million, or 36.3% to $33.7 million, and increases in money market accounts of $4.5 million, or 6.1%, to $78.3 million.
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