Magyar Bancorp, Inc. is the mid-tier stock holding company of Magyar Bank.
Magyar Bancorp, Inc. is a Delaware-chartered corporation and owns 100% of the
outstanding shares of common stock of Magyar Bank. Magyar Bancorp, Inc. has
not engaged in any significant business activity other than owning all of the
shares of common stock of Magyar Bank. The executive offices of Magyar Bancorp,
Inc. are located at 400 Somerset Street, New Brunswick, New Jersey 08901, and
its telephone number is (732) 342-7600. Magyar Bancorp, Inc. is subject to comprehensive
regulation and examination by the FRB and the NJDBI.
Magyar Bank is a New Jersey-chartered savings bank headquartered in New Brunswick,
New Jersey that was originally founded in 1922 as a New Jersey building and
loan association. In 1954, Magyar Bank converted to a New Jersey savings and
loan association, before converting to a New Jersey savings bank charter in
1993. We conduct business from our main office located at 400 Somerset Street,
New Brunswick, New Jersey, and our six branch offices located in New Brunswick,
North Brunswick, South Brunswick, Branchburg, Bridgewater, and North Edison,
New Jersey. The telephone number at our main office is (732) 342-7600.
Our principal business consists of attracting retail deposits from the general
public in the areas surrounding our main office in New Brunswick, New Jersey
and our branch offices located in Middlesex and Somerset Counties, New Jersey,
and investing those 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. We also originate consumer loans, which consist primarily
of secured demand loans. We originate loans primarily for our loan portfolio.
However, from time to time we have sold some of our long-term fixed-rate residential
mortgage loans into the secondary market, while retaining the servicing rights
for such loans. Our revenues are derived principally from interest on loans
and securities. Our investment securities consist primarily of mortgage-backed
securities and U.S. Government and government-sponsored enterprise obligations.
We also generate revenues from fees and service charges. Our primary sources
of funds are deposits, borrowings and principal and interest payments on loans
and securities. We are subject to comprehensive regulation and examination by
the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance
Corporation (“FDIC”).
We originate residential mortgage loans to purchase or refinance residential
real property.
We commence collection efforts when a loan becomes 15 days past due with system-generated
reminder notices. Subsequent late charge and delinquent notices are issued and
the account is monitored on a regular basis thereafter. Personal, direct contact
with the borrower is attempted early in the collection process as a courtesy
reminder and later to determine the reason for the delinquency and to safeguard
our collateral. When a loan is more than 60 days past due, the credit file is
reviewed and, if deemed necessary, information is updated or confirmed and collateral
re-evaluated. We make every effort to contact the borrower and develop a plan
of repayment to cure the delinquency. Loans are placed on non-accrual status
when they are delinquent for more than three months. When loans are placed on
non-accrual status, unpaid accrued interest is fully reversed, and further income
is recognized only to the extent received.
Our Board of Directors has adopted our Investment Policy. This policy determines
the types of securities in which we may invest. The Investment Policy is reviewed
annually by the Board of Directors and changes to the policy are subject to
approval by our Board of Directors. While general investment strategies are
developed by the Asset and Liability Committee, the execution of specific actions
rests primarily with our President and our Chief Financial Officer. They are
responsible for ensuring the guidelines and requirements included in the Investment
Policy are followed and only prudent securities are considered for investment.
They are authorized to execute transactions that fall within the scope of the
established Investment Policy up to $2.5 million per transaction individually
or $5.0 million per transaction jointly. Investment transactions in excess of
$5.0 million must be approved by the Asset and Liability Committee. Investment
transactions are reviewed and ratified by the Board of Directors at their regularly
scheduled meetings.
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