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Company Links |
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Company Strategy |
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The Company was formed in September, 2005 and it has not engaged in any business. |
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Product/Services Portfolio |
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Upon completion of the reorganization and the stock offering, the Company will own all of the issued and outstanding common stock of Magyar Bank. In the future, as the holding company of Magyar Bank, the Company will be authorized to pursue other business activities permitted by applicable laws and regulations for bank holding companies, which may include the acquisition of banking and financial services companies.
The Bank’s principal business consists of attracting retail deposits from the general public in the areas surrounding the Company’s main office in New Brunswick, New Jersey and the three branch offices located in Middlesex County, New Jersey, and investing those deposits, together with funds generated from operations and wholesale funding, into residential mortgage loans, home equity loans, home equity lines of credit, commercial real estate loans, commercial business loans, construction loans and securities.
The Company also originates consumer loans, primarily secured demand loans. The Company originates loans primarily for its loan portfolio but from time-to-time has sold some fixed-rate long-term residential mortgage loans into the secondary market, while retaining the servicing rights. The Company’s primary sources of funds are deposits, borrowings and principal and interest payments on loans and securities.
The Company originates residential mortgage loans for the purchase or refinancing of residential real property. The Company also originates commercial real estate, commercial business and construction loans. The Company also offers consumer loans, which consist primarily of home equity loans and home equity lines of credit, as well as secured demand loans.
The Company originates residential mortgage loans, most of which are secured by properties located in its primary market area and
most of which it holds in portfolio.
The Company also offers adjustable-rate residential mortgage loans with an interest rate based on the weekly average yield on U.S. Treasuries adjusted to a constant maturity of one year, which adjusts either annually from the outset of the loan or which adjusts annually after a one-, three-, five- or seven-year initial fixed-rate period.
The Company also originates construction loans for the development of one- to four-family homes, townhomes and condominiums located in its primary market area. Construction loans are generally offered to experienced local developers operating in the Company’s primary market area and to individuals for the construction of their personal residences.
The Company makes commercial business loans primarily in its market area to a variety of professionals, sole proprietorships and small and mid-sized businesses. Commercial business lending products include term loans and revolving lines of credit. The maximum term of a commercial business loan is 15 years.
The Company originates home equity loans and home equity lines of credit secured by residences located in its market area. The underwriting standards the Company uses for home equity loans and home equity lines of credit include a determination of the applicant\'s credit history, an assessment of the applicant\'s ability to meet existing obligations, the payment on the proposed
loan and the value of the collateral securing the loan.
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Investment Analysis |
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Net income decreased to $106,000 for the nine months ended June 30, 2005 from $571,000 for the prior year period.
Net interest and dividend income increased $1.1 million, or 18.5%, to $7.3 million for the nine months ended June
30, 2005 from $6.2 million for the nine months ended June 30, 2004.
Interest income increased $2.0 million, or 20.9%, to $11.3 million for the nine months ended June 30, 2005 from $9.4 million for the
prior year period.
Interest expense increased $813,000, or 25.4%, to $4.0 million for the nine months ended June 30, 2005 from $3.2 million for the nine
months ended June 30, 2004.
Noninterest income decreased to $537,000 for the nine months ended June 30, 2005 from $593,000 for the nine months ended June 30, 2004.
Noninterest expense increased to $7.5 million for the nine months ended June 30, 2005 from $5.8 million for the prior year period.
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Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2003
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13,370 |
5,207 |
0.00 |
624 |
1,527 |
0.00 |
| 2004
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12,584 |
4,259 |
0.00 |
257 |
612 |
0.00 |
| 2005
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11,330 |
4,012 |
0.00 |
17 |
106 |
0.00 |
| *As of period Ended June 30, 2005
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Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
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2003 |
8,549 |
173,768 |
0.00 |
0.00 |
251,253 |
4,461 |
273,912 |
0.00 |
22,659 |
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2004 |
4,975 |
193,550 |
0.00 |
0.00 |
263,966 |
4,230 |
287,078 |
0.00 |
23,112 |
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2005 |
3,718 |
248,312 |
0.00 |
0.00 |
301,936 |
4,302 |
325,096 |
0.00 |
23,159 |
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*As of period Ended June 30, 2005
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Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
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2003 |
2,040 |
-19,780 |
13,031 |
-4,709 |
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2004 |
1,089 |
-17,882 |
13,219 |
-3,574 |
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2005 |
1,882 |
-40,128 |
36,989 |
-1,257 |
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*As of period Ended June 30, 2005
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- Avoid 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 
