Magyar Bancorp, Inc. Reports Earnings Results for the First Quarter Ended December 31, 2012; Records Net Charge-Offs
January 24, 2013 at 04:10 pm EST
Share
Magyar Bancorp, Inc. reported earnings results for the first quarter ended December 31, 2012. Net income increased $251,000 during the three-month period ended December 31, 2012 compared with the three-month period ended December 31, 2011 due to a $114, 000 increase in net interest and dividend income, an $82,000 increase in non-interest income, and a $251,000 decrease in non-interest expense. The company's net interest income increased $114,000 to $3.8 million for the quarter ended December 31, 2012 from $3.7 million for the quarter ended December 31, 2011. The company's net interest margin increased by 22 basis points to 3.29% for the quarter ended December 31, 2012 compared to 3.07% for the quarter ended December 31, 2011. Basic and diluted earnings per share were $0.05 for the three months ended December 31, 2012, compared with basic and diluted earnings per share of $0.01 for the three months ended December 31, 2011. Income before income tax benefit was $132,000 against $7,000 a year ago. The company's book value per share increased to $7.78 at December 31, 2012 from $7.75 at September 30, 2012. The increase was due to the Company's results from operations. Return on average assets was 0.22% against 0.02% a year ago. Return on average equity was 2.49% against 0.28% a year ago.
Net charge-offs were $205,000 for the three months ended December 31, 2012 compared to $334,000 for the three months ended December 31, 2011.
Magyar Bancorp, Inc. is a bank holding company of Magyar Bank (the Bank). It acts as an independent, community, financial services provider, and offers traditional banking and related financial services to individual, business, and government customers. It offers commercial and retail financial services, including the taking of time, savings, and demand deposits; the making of commercial, consumer and home equity loans; and the provision of other financial services. The Bank invests its deposits, together with funds generated from operations and wholesale funding, in residential mortgage loans, home equity loans, home equity lines of credit, commercial real estate loans, commercial business loans, small business administration (SBA) loans, construction loans and investment securities. It originates consumer loans, which consist primarily of secured demand loans. Its primary sources of funds are deposits, borrowings and principal and interest payments on loans and securities.