Magyar Bancorp Inc. (MGYR, Financial) filed Quarterly Report for the period ended 2008-12-31.
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 $27.31 million; its shares were traded at around $3.5 with and P/S ratio of 0.9.
The ratio of non-performing loans to total loans receivable was 5.1% at December 31, 2008 compared with 4.9% at September 30, 2008. Accordingly, the allowance for loan losses increased $3.0 million to $7.5 million or 34.5% of non-performing loans at December 31, 2008 compared with $4.5 million or 22.4% of non-performing loans at September 30, 2008. Provisions for loan loss during the three months ended December 31, 2008 were $4.0 million while net charge-offs were $987,000. The allowance for loan losses was 1.8% of gross loans outstanding at December 31, 2008 and 1.1% of gross loans outstanding at September 30, 2008. In connection with its most recent regular examination of the Bank, the FDIC requested and the Bank s board of directors agreed in December 2008 to certain corrective actions, which related to the implementation of an enhanced loan review program, an enhanced credit administration program, and the reduction of adversely classified, special mention and delinquent assets.
Securities available-for-sale increased $16.0 million, or 32.4%, to $65.3 million at December 31, 2008 from $49.3 million at September 30, 2008. The increase was the result of purchases of U. S. government-sponsored enterprise obligations during the quarter totaling $16.6 million.
Other real estate owned (OREO) increased $1.3 million during the three months to $5.9 million at December 31, 2008. The foreclosure of a banquet facility located in Lodi, New Jersey resulted in a $2.2 million increase in the balance of OREO. The Bank was in the process of evaluating offers to purchase the property at December 31, 2008. The OREO increase was partially offset by a decrease of $915,000 during the three months ended December 31, 2008 from deposits to purchase four of the six residential lots owned in Rumson, New Jersey. The carrying value of other real estate owned represents the lower of cost or the Bank s net realizable value at December 31, 2008.
Total deposits increased $9.3 million, or 2.5%, to $384.9 million at December 31, 2008. The increase was primarily due to balances of certificates of deposit, which increased $12.2 million, or 6.9%, to $189.4 million at December 31, 2008 from $177.3 million at September 30, 2008. The $12.2 million increase included a $10.8 increase in CDARS time deposits, a CD instrument that provides FDIC insurance up to $50 million. Saving accounts increased $4.5 million, or 13.1%, to $38.5 million at December 31, 2008 from $34.1 million at September 30, 2008. Other significant changes in total deposits over the three month period included decreases in money market accounts of $5.3 million, or 7.2%, to $68.5 million, and in interest-bearing NOW accounts of $2.7 million, or 7.3%, to $33.5 million.
Stockholders equity decreased $3.0 million, or 6.7%, to $42.8 million at December 31, 2008 from $45.8 million at September 30, 2008. The decrease was attributable to a net loss of $3.9 million recorded during the Company s first fiscal quarter, partially offset by accumulated other comprehensive gains of $710,000. For the three months ended December 31, 2008, 6,400 shares of Company stock were repurchased totaling $50,000 during the period.
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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 $27.31 million; its shares were traded at around $3.5 with and P/S ratio of 0.9.
Highlight of Business Operations:
Net loans receivable increased $12.2 million, or 3.0%, to $418.3 million at December 31, 2008 from $406.1 million at September 30, 2008. During the three months ended December 31, 2008, one- to four-family residential mortgage loans increased $4.0 million, or 2.6%, to $161.9 million. In addition, commercial real estate loans and commercial business loans increased $6.4 million, or 6.9%, and $2.8 million, or 7.9%, to $99.2 million and $38.8 million, respectively. Construction loans increased $0.3 million, or 0.3%, to $93.1 million at December 31, 2008 from $92.9 million at September 30, 2008.The ratio of non-performing loans to total loans receivable was 5.1% at December 31, 2008 compared with 4.9% at September 30, 2008. Accordingly, the allowance for loan losses increased $3.0 million to $7.5 million or 34.5% of non-performing loans at December 31, 2008 compared with $4.5 million or 22.4% of non-performing loans at September 30, 2008. Provisions for loan loss during the three months ended December 31, 2008 were $4.0 million while net charge-offs were $987,000. The allowance for loan losses was 1.8% of gross loans outstanding at December 31, 2008 and 1.1% of gross loans outstanding at September 30, 2008. In connection with its most recent regular examination of the Bank, the FDIC requested and the Bank s board of directors agreed in December 2008 to certain corrective actions, which related to the implementation of an enhanced loan review program, an enhanced credit administration program, and the reduction of adversely classified, special mention and delinquent assets.
Securities available-for-sale increased $16.0 million, or 32.4%, to $65.3 million at December 31, 2008 from $49.3 million at September 30, 2008. The increase was the result of purchases of U. S. government-sponsored enterprise obligations during the quarter totaling $16.6 million.
Other real estate owned (OREO) increased $1.3 million during the three months to $5.9 million at December 31, 2008. The foreclosure of a banquet facility located in Lodi, New Jersey resulted in a $2.2 million increase in the balance of OREO. The Bank was in the process of evaluating offers to purchase the property at December 31, 2008. The OREO increase was partially offset by a decrease of $915,000 during the three months ended December 31, 2008 from deposits to purchase four of the six residential lots owned in Rumson, New Jersey. The carrying value of other real estate owned represents the lower of cost or the Bank s net realizable value at December 31, 2008.
Total deposits increased $9.3 million, or 2.5%, to $384.9 million at December 31, 2008. The increase was primarily due to balances of certificates of deposit, which increased $12.2 million, or 6.9%, to $189.4 million at December 31, 2008 from $177.3 million at September 30, 2008. The $12.2 million increase included a $10.8 increase in CDARS time deposits, a CD instrument that provides FDIC insurance up to $50 million. Saving accounts increased $4.5 million, or 13.1%, to $38.5 million at December 31, 2008 from $34.1 million at September 30, 2008. Other significant changes in total deposits over the three month period included decreases in money market accounts of $5.3 million, or 7.2%, to $68.5 million, and in interest-bearing NOW accounts of $2.7 million, or 7.3%, to $33.5 million.
Stockholders equity decreased $3.0 million, or 6.7%, to $42.8 million at December 31, 2008 from $45.8 million at September 30, 2008. The decrease was attributable to a net loss of $3.9 million recorded during the Company s first fiscal quarter, partially offset by accumulated other comprehensive gains of $710,000. For the three months ended December 31, 2008, 6,400 shares of Company stock were repurchased totaling $50,000 during the period.
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