Delaware
|
20-4154978
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification Number)
|
400
Somerset Street, New Brunswick, New Jersey
|
08901
|
|
(Address
of Principal Executive Office)
|
(Zip
Code)
|
(732)
342-7600
|
(Issuer’s
Telephone Number including area
code)
|
Name
of Each Exchange
|
||
Title
of Class
|
On
Which Registered
|
|
|
|
|
Common
Stock, par value $0.01 per share
|
The
NASDAQ Stock Market, LLC
|
None
|
(Title
of Class)
|
1.
|
Proxy
Statement for the 2007 Annual Meeting of Stockholders (Part
III)
|
PART
I
|
||
ITEM
1.
|
1
|
|
ITEM
2.
|
37
|
|
ITEM
3.
|
37
|
|
ITEM
4.
|
37
|
|
PART
II
|
||
ITEM
5.
|
37
|
|
ITEM
6.
|
38
|
|
ITEM
7.
|
51
|
|
ITEM
8.
|
83
|
|
ITEM
8A.
|
83
|
|
ITEM
8B.
|
83
|
|
PART
III
|
||
ITEM
9.
|
83
|
|
ITEM
10.
|
83
|
|
ITEM
11.
|
83
|
|
ITEM
12.
|
84
|
|
ITEM
13.
|
84
|
|
ITEM
14.
|
84
|
|
Signatures | 85 |
ITEM
1.
|
Description
of Business
|
At
September 30,
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
One-to
four-family residential
|
$
|
143,245
|
40.65
|
%
|
$
|
126,269
|
46.64
|
%
|
$
|
108,722
|
55.50
|
%
|
$
|
107,531
|
61.08
|
%
|
$
|
119,876
|
65.81
|
%
|
|||||||||||
Commercial
real estate
|
68,567
|
19.46
|
%
|
57,366
|
21.19
|
%
|
19,935
|
10.18
|
%
|
19,354
|
10.99
|
%
|
17,574
|
9.65
|
%
|
||||||||||||||||
Construction
|
90,342
|
25.64
|
%
|
44,418
|
16.41
|
%
|
5,526
|
2.82
|
%
|
5,188
|
2.95
|
%
|
1,883
|
1.03
|
%
|
||||||||||||||||
Home
equity lines of credit
|
10,843
|
3.08
|
%
|
10,398
|
3.84
|
%
|
9,065
|
4.63
|
%
|
7,301
|
4.15
|
%
|
6,963
|
3.82
|
%
|
||||||||||||||||
Commercial
business
|
24,510
|
6.96
|
%
|
17,413
|
6.43
|
%
|
27,698
|
14.14
|
%
|
9,630
|
5.47
|
%
|
7,985
|
4.38
|
%
|
||||||||||||||||
Other
|
14,846
|
4.21
|
%
|
14,862
|
5.49
|
%
|
24,964
|
12.74
|
%
|
27,042
|
15.36
|
%
|
27,882
|
15.31
|
%
|
||||||||||||||||
Total
loans receivable
|
$
|
352,353
|
100.00
|
%
|
$
|
270,726
|
100.00
|
%
|
$
|
195,910
|
100.00
|
%
|
$
|
176,046
|
100.00
|
%
|
$
|
182,163
|
100.00
|
%
|
|||||||||||
Deferred
loan costs (fees)
|
(492
|
)
|
(280
|
)
|
(19
|
)
|
(128
|
)
|
21
|
||||||||||||||||||||||
Allowance
for loan losses
|
(3,892
|
)
|
(3,129
|
)
|
(2,341
|
)
|
(2,150
|
)
|
(1,926
|
)
|
|||||||||||||||||||||
Total
loans receivable, net
|
$
|
347,969
|
$
|
267,317
|
$
|
193,550
|
$
|
173,768
|
$
|
180,258
|
One-to-Four
Family
|
Commercial
|
Home
Equity
|
|||||||||||||||||||||||
Residential
|
Real
Estate
|
Construction
|
Lines
of Credit
|
||||||||||||||||||||||
Due
During
|
Weighted
|
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||||
The
Fiscal Years
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Ending
September 30,
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||
2007
|
$
|
3,573
|
8.66
|
%
|
$
|
6,344
|
8.91
|
%
|
$
|
63,256
|
9.00
|
%
|
$
|
1,020
|
9.36
|
%
|
|||||||||
2008
|
2,755
|
6.61
|
%
|
1,199
|
8.46
|
%
|
23,278
|
9.00
|
%
|
570
|
7.92
|
%
|
|||||||||||||
2009
|
1,238
|
5.48
|
%
|
642
|
7.54
|
%
|
3,310
|
8.25
|
%
|
0
|
-
|
||||||||||||||
2010
to 2011
|
1,995
|
5.76
|
%
|
1,304
|
7.21
|
%
|
498
|
7.61
|
%
|
18
|
9.75
|
%
|
|||||||||||||
2012
to 2016
|
16,020
|
5.77
|
%
|
4,031
|
7.21
|
%
|
-
|
-
|
639
|
6.71
|
%
|
||||||||||||||
2017
to 2020
|
22,586
|
5.12
|
%
|
5,514
|
6.54
|
%
|
-
|
-
|
0
|
-
|
|||||||||||||||
2021
and beyond
|
95,078
|
5.63
|
%
|
49,533
|
6.87
|
%
|
-
|
-
|
8,596
|
7.77
|
%
|
||||||||||||||
Total
|
$
|
143,245
|
5.66
|
%
|
$
|
68,567
|
7.10
|
%
|
$
|
90,342
|
8.96
|
%
|
$
|
10,843
|
7.87
|
%
|
Commercial
Business
|
Other
|
Total
|
|||||||||||||||||
Due
During
|
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||
The
Fiscal Years
|
Average
|
Average
|
Average
|
||||||||||||||||
Ending
September 30,
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
2007
|
$
|
15,280
|
8.78
|
%
|
$
|
12,997
|
7.39
|
%
|
$
|
102,470
|
8.75
|
%
|
|||||||
2008
|
2,280
|
8.43
|
%
|
1,357
|
7.31
|
%
|
31,439
|
8.64
|
%
|
||||||||||
2009
|
300
|
8.14
|
%
|
24
|
8.44
|
%
|
5,514
|
7.54
|
%
|
||||||||||
2010
to 2011
|
965
|
7.76
|
%
|
49
|
12.46
|
%
|
4,829
|
6.82
|
%
|
||||||||||
2012
to 2016
|
4,536
|
7.38
|
%
|
153
|
4.78
|
%
|
25,379
|
6.30
|
%
|
||||||||||
2017
to 2020
|
-
|
-
|
1
|
13.00
|
%
|
28,101
|
5.40
|
%
|
|||||||||||
2021
and beyond
|
1,149
|
7.69
|
%
|
265
|
6.09
|
%
|
154,621
|
6.16
|
%
|
||||||||||
Total
|
$
|
24,510
|
8.39
|
%
|
$
|
14,846
|
7.35
|
%
|
$
|
352,353
|
7.11
|
%
|
Due
After September 30, 2007
|
||||||||||
Fixed
|
Adjustable
|
Total
|
||||||||
(In
thousands)
|
||||||||||
One-to
four-family residential
|
$
|
92,421
|
$
|
47,251
|
$
|
139,672
|
||||
Commercial
real estate
|
9,323
|
52,900
|
62,223
|
|||||||
Construction
|
-
|
27,086
|
27,086
|
|||||||
Home
equity lines of credit
|
-
|
9,823
|
9,823
|
|||||||
Commercial
Business
|
2,772
|
6,458
|
9,230
|
|||||||
Other
|
256
|
1,593
|
1,849
|
|||||||
Total
|
$
|
104,772
|
$
|
145,111
|
$
|
249,883
|
At
September 30,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Non-accrual
loans:
|
||||||||||||||||
One-to
four-family residential
|
$
|
56
|
$
|
188
|
$
|
153
|
$
|
178
|
$
|
155
|
||||||
Commercial
real estate
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
|
5,135
|
-
|
-
|
-
|
-
|
|||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
Business
|
188
|
387
|
94
|
-
|
-
|
|||||||||||
Other
|
-
|
2
|
-
|
-
|
-
|
|||||||||||
Total
|
5,379
|
577
|
247
|
178
|
155
|
|||||||||||
Accruing
loans three months or more past due:
|
||||||||||||||||
One-to
four-family residential
|
88
|
205
|
-
|
-
|
-
|
|||||||||||
Commercial
real estate
|
1,933
|
257
|
-
|
-
|
-
|
|||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
Business
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
|
-
|
1
|
-
|
3
|
-
|
|||||||||||
Total
loans three months or more past due
|
2,021
|
463
|
-
|
3
|
-
|
|||||||||||
Total
non-performing loans
|
$
|
7,400
|
$
|
1,040
|
$
|
247
|
$
|
181
|
$
|
155
|
||||||
Foreclosed
real estate
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
non-performing assets
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
non-performing assets
|
$
|
7,400
|
$
|
1,040
|
$
|
247
|
$
|
181
|
$
|
155
|
||||||
Ratios:
|
||||||||||||||||
Total
non-performing loans to total loans
|
2.10
|
%
|
0.38
|
%
|
0.13
|
%
|
0.10
|
%
|
0.09
|
%
|
||||||
Total
non-performing loans to total assets
|
1.70
|
%
|
0.29
|
%
|
0.09
|
%
|
0.07
|
%
|
0.06
|
%
|
||||||
Total
non-performing assets to total assets
|
1.70
|
%
|
0.29
|
%
|
0.09
|
%
|
0.07
|
%
|
0.06
|
%
|
Loans
Delinquent For
|
|||||||||||||||||||
60-89
Days
|
90
Days and Over
|
Total
|
|||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
At
September 30, 2006
|
|||||||||||||||||||
One-to
four-family residential
|
-
|
$
|
-
|
3
|
$
|
144
|
3
|
$
|
144
|
||||||||||
Commercial
real estate
|
-
|
-
|
1
|
1,933
|
1
|
1,933
|
|||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Commercial
business
|
-
|
-
|
3
|
188
|
3
|
188
|
|||||||||||||
Other
|
-
|
-
|
1
|
0
|
1
|
0
|
|||||||||||||
Total
|
-
|
$
|
-
|
8
|
$
|
2,265
|
8
|
$
|
2,265
|
||||||||||
At
September 30, 2005
|
|||||||||||||||||||
One-to
four-family residential
|
2
|
$
|
50
|
6
|
$
|
393
|
8
|
$
|
443
|
||||||||||
Commercial
real estate
|
-
|
-
|
1
|
$
|
257
|
1
|
257
|
||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Commercial
business
|
-
|
-
|
4
|
387
|
4
|
387
|
|||||||||||||
Other
|
1
|
220
|
4
|
3
|
5
|
223
|
|||||||||||||
Total
|
3
|
$
|
270
|
15
|
$
|
1,040
|
18
|
$
|
1,310
|
||||||||||
At
September 30, 2004
|
|||||||||||||||||||
One-to
four-family residential
|
5
|
$
|
586
|
3
|
$
|
153
|
8
|
$
|
739
|
||||||||||
Commercial
real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Commercial
business
|
3
|
1,628
|
1
|
94
|
4
|
1,722
|
|||||||||||||
Other
|
3
|
70
|
-
|
-
|
3
|
70
|
|||||||||||||
Total
|
11
|
$
|
2,284
|
4
|
$
|
247
|
15
|
$
|
2,531
|
||||||||||
At
September 30, 2003
|
|||||||||||||||||||
One-to
four-family residential
|
2
|
$
|
466
|
3
|
$
|
178
|
5
|
$
|
644
|
||||||||||
Commercial
real estate
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Commercial
business
|
1
|
106
|
-
|
1
|
106
|
||||||||||||||
Other
|
1
|
5
|
1
|
3
|
2
|
8
|
|||||||||||||
Total
|
4
|
$
|
577
|
4
|
$
|
181
|
8
|
$
|
758
|
||||||||||
At
September 30, 2002
|
|||||||||||||||||||
One-to
four-family residential
|
1
|
$
|
96
|
3
|
$
|
155
|
4
|
$
|
251
|
||||||||||
Commercial
real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Commercial
business
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
|
1
|
$
|
96
|
3
|
$
|
155
|
4
|
$
|
251
|
For
the Fiscal Years Ended September 30,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Balance
at beginning of period
|
$
|
3,129
|
$
|
2,341
|
$
|
2,150
|
$
|
1,926
|
$
|
1,649
|
||||||
Charge-offs:
|
||||||||||||||||
One-to
four-family residential
|
13
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
real estate
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Home
equity lines of credit
|
2
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
business
|
180
|
94
|
-
|
-
|
-
|
|||||||||||
Other
|
3
|
9
|
11
|
6
|
-
|
|||||||||||
Total
charge-offs
|
198
|
103
|
11
|
6
|
-
|
|||||||||||
Recoveries:
|
||||||||||||||||
One-to
four-family residential
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
real estate
|
-
|
-
|
-
|
-
|
||||||||||||
Construction
|
-
|
-
|
-
|
-
|
||||||||||||
Home
equity lines of credit
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
business
|
-
|
-
|
-
|
-
|
||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
recoveries
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Net
charge-offs
|
198
|
103
|
11
|
6
|
-
|
|||||||||||
Provision
for loan losses
|
961
|
891
|
202
|
230
|
277
|
|||||||||||
Balance
at end of period
|
$
|
3,892
|
$
|
3,129
|
$
|
2,341
|
$
|
2,150
|
$
|
1,926
|
||||||
Ratios:
|
||||||||||||||||
Net
charge-offs to average loans outstanding
|
0.06
|
%
|
0.05
|
%
|
0.01
|
%
|
0.00
|
%
|
0.00
|
%
|
||||||
Allowance
for loan losses to non-performing loans at end of period (1)
|
52.59
|
%
|
NM
|
NM
|
NM
|
NM
|
||||||||||
Allowance
for loan losses to total loans at end of period
|
1.11
|
%
|
1.16
|
%
|
1.20
|
%
|
1.22
|
%
|
1.06
|
%
|
(1)
|
“NM”
indicates ratio is not meaningful.
|
Percent
of
|
|||||||
Loans
in
|
|||||||
Category
to
|
|||||||
Amount
|
Total
Loans
|
||||||
(Dollars
in thousands)
|
|||||||
At
September 30, 2006
|
|||||||
One-to
four-family residential
|
$
|
327
|
40.65
|
%
|
|||
Commercial
real estate
|
601
|
19.46
|
%
|
||||
Construction
|
1,519
|
25.64
|
%
|
||||
Home
equity lines of credit
|
82
|
3.08
|
%
|
||||
Commercial
business
|
1,153
|
6.96
|
%
|
||||
Other
|
210
|
4.21
|
%
|
||||
Unallocated
|
-
|
0.00
|
%
|
||||
Total
allowance for loan losses
|
$
|
3,892
|
100
|
%
|
|||
At
September 30, 2005
|
|||||||
One-to
four-family residential
|
$
|
312
|
46.64
|
%
|
|||
Commercial
real estate
|
615
|
21.19
|
%
|
||||
Construction
|
845
|
16.41
|
%
|
||||
Home
equity lines of credit
|
82
|
3.84
|
%
|
||||
Commercial
business
|
815
|
6.43
|
%
|
||||
Other
|
193
|
5.49
|
%
|
||||
Unallocated
|
267
|
0.00
|
%
|
||||
Total
allowance for loan losses
|
$
|
3,129
|
100
|
%
|
|||
At
September 30, 2004
|
|||||||
One-to
four-family residential
|
$
|
281
|
55.50
|
%
|
|||
Commercial
real estate
|
857
|
10.17
|
%
|
||||
Construction
|
56
|
2.82
|
%
|
||||
Home
equity lines of credit
|
222
|
4.63
|
%
|
||||
Commercial
business
|
721
|
14.14
|
%
|
||||
Other
|
170
|
12.74
|
%
|
||||
Unallocated
|
34
|
0.00
|
%
|
||||
Total
allowance for loan losses
|
$
|
2,341
|
100
|
%
|
|||
At
September 30, 2003
|
|||||||
One-to
four-family residential
|
$
|
196
|
61.08
|
%
|
|||
Commercial
real estate
|
822
|
10.99
|
%
|
||||
Construction
|
301
|
2.95
|
%
|
||||
Home
equity lines of credit
|
190
|
4.15
|
%
|
||||
Commercial
business
|
426
|
5.47
|
%
|
||||
Other
|
164
|
15.36
|
%
|
||||
Unallocated
|
51
|
0.00
|
%
|
||||
Total
allowance for loan losses
|
$
|
2,150
|
100
|
%
|
|||
At
September 30, 2002
|
|||||||
One-to
four-family residential
|
$
|
230
|
65.81
|
%
|
|||
Commercial
real estate
|
717
|
9.65
|
%
|
||||
Construction
|
102
|
1.03
|
%
|
||||
Home
equity lines of credit
|
180
|
3.82
|
%
|
||||
Commercial
business
|
268
|
4.38
|
%
|
||||
Other
|
146
|
15.31
|
%
|
||||
Unallocated
|
283
|
0.00
|
%
|
||||
Total
allowance for loan losses
|
$
|
1,926
|
100
|
%
|
At
September 30,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
||||||||||||||
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Securities
available for sale:
|
|||||||||||||||||||
U.S.
government and agency obligations
|
$
|
-
|
$
|
-
|
$
|
4,000
|
$
|
3,894
|
$
|
5,498
|
$
|
5,516
|
|||||||
Municipal
bonds
|
2,049
|
2,066
|
-
|
-
|
-
|
-
|
|||||||||||||
Corporate
notes
|
-
|
-
|
-
|
-
|
2,002
|
2,007
|
|||||||||||||
Equity
Securities
|
142
|
142
|
142
|
142
|
142
|
142
|
|||||||||||||
Mortgage-backed
securities
|
16,258
|
15,961
|
17,047
|
16,566
|
23,841
|
23,506
|
|||||||||||||
Total
securities available for sale
|
$
|
18,449
|
$
|
18,169
|
$
|
21,189
|
$
|
20,602
|
$
|
31,483
|
$
|
31,171
|
|||||||
Securities
held to maturity:
|
|||||||||||||||||||
U.S.
government and agency obligations
|
$
|
2,157
|
$
|
2,105
|
$
|
4,313
|
$
|
4,266
|
$
|
7,423
|
$
|
7,445
|
|||||||
Municipal
bonds
|
137
|
145
|
-
|
-
|
-
|
-
|
|||||||||||||
Corporate
notes
|
-
|
-
|
2,001
|
2,015
|
2,005
|
2,097
|
|||||||||||||
Mortgage-backed
securities
|
21,601
|
21,108
|
27,955
|
27,572
|
33,187
|
33,315
|
|||||||||||||
Total
securities held to maturity
|
$
|
23,895
|
$
|
23,358
|
$
|
34,269
|
$
|
33,853
|
$
|
42,615
|
$
|
42,857
|
More
Than One
|
More
Than Five
|
||||||||||||||||||||||||||||||
Year
Through
|
Years
Through
|
More
Than
|
|||||||||||||||||||||||||||||
One
Year or Less
|
Five
Years
|
Ten
Years
|
Ten
Years
|
Total
Securities
|
|||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||||||||||
Amortized
|
Average
|
Amortized
|
Average
|
Amortized
|
Average
|
Amortized
|
Average
|
Amortized
|
Average
|
||||||||||||||||||||||
Cost
|
Yield
|
Cost
|
Yield
|
Cost
|
Yield
|
Cost
|
Yield
|
Cost
|
Yield
|
||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
Securities
available for sale:
|
|||||||||||||||||||||||||||||||
U.S.
government and agency obligations
|
$
|
-
|
-
|
%
|
$
|
-
|
-
|
%
|
$
|
-
|
-
|
%
|
$
|
-
|
-
|
%
|
$
|
-
|
-
|
%
|
|||||||||||
Municipal
Bonds
|
-
|
-
|
%
|
-
|
-
|
%
|
2,049
|
5.18
|
%
|
-
|
%
|
2,049
|
5.18
|
%
|
|||||||||||||||||
Equity
securities
|
142
|
5.13
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
-
|
%
|
142
|
5.13
|
%
|
|||||||||||||||||
Mortgage-backed
securities
|
-
|
-
|
%
|
-
|
-
|
%
|
5,277
|
4.67
|
%
|
10,981
|
4.69
|
%
|
16,257
|
4.69
|
%
|
||||||||||||||||
Total
securities available for sale
|
$
|
142
|
5.13
|
%
|
$
|
-
|
0.00
|
%
|
$
|
7,326
|
4.81
|
%
|
$
|
10,981
|
4.69
|
%
|
$
|
18,449
|
4.74
|
%
|
|||||||||||
Securities
held to maturity:
|
|||||||||||||||||||||||||||||||
U.S.
government and agency obligations
|
$
|
-
|
-
|
%
|
$
|
2,000
|
4.11
|
%
|
$
|
-
|
-
|
%
|
$
|
157
|
6.18
|
%
|
$
|
2,157
|
4.26
|
%
|
|||||||||||
Municipal
Bonds
|
-
|
-
|
%
|
-
|
-
|
%
|
137
|
8.04
|
%
|
-
|
-
|
%
|
137
|
8.04
|
%
|
||||||||||||||||
Equity
securities
|
-
|
-
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
||||||||||||||||
Mortgage-backed
securities
|
109
|
5.01
|
%
|
9,363
|
4.46
|
%
|
3,183
|
4.39
|
%
|
8,946
|
4.52
|
%
|
21,601
|
4.48
|
%
|
||||||||||||||||
Total
securities held to maturity
|
$
|
109
|
5.01
|
%
|
$
|
11,363
|
3.67
|
%
|
$
|
3,319
|
4.54
|
%
|
$
|
9,103
|
4.45
|
%
|
$
|
23,895
|
4.48
|
%
|
|||||||||||
Total
securities
|
$
|
251
|
5.08
|
%
|
$
|
11,363
|
4.39
|
%
|
$
|
10,645
|
4.73
|
%
|
$
|
20,084
|
4.63
|
%
|
$
|
42,344
|
4.59
|
%
|
At
September 30,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||||||
Deposit
Types:
|
Balance
|
Percent
|
Rate
|
Balance
|
Percent
|
Rate
|
Balance
|
Percent
|
Rate
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||
Demand
accounts
|
$
|
20,491
|
6.29
|
%
|
0.00
|
%
|
$
|
14,566
|
5.24
|
%
|
0.00
|
%
|
$
|
9,925
|
4.43
|
%
|
0.00
|
%
|
||||||||||
Savings
accounts
|
43,127
|
13.25
|
%
|
1.14
|
%
|
53,819
|
19.35
|
%
|
1.05
|
%
|
51,985
|
23.21
|
%
|
0.50
|
%
|
|||||||||||||
NOW
accounts
|
30,519
|
9.37
|
%
|
1.95
|
%
|
28,149
|
10.12
|
%
|
0.79
|
%
|
24,548
|
10.96
|
%
|
0.31
|
%
|
|||||||||||||
Money
market accounts
|
56,107
|
17.23
|
%
|
4.09
|
%
|
30,499
|
10.97
|
%
|
1.97
|
%
|
25,164
|
11.24
|
%
|
0.88
|
%
|
|||||||||||||
Certificates
of deposit
|
149,811
|
46.01
|
%
|
4.29
|
%
|
126,165
|
45.37
|
%
|
3.05
|
%
|
89,487
|
39.95
|
%
|
2.15
|
%
|
|||||||||||||
Retirement
accounts
|
25,547
|
7.85
|
%
|
4.09
|
%
|
24,892
|
8.95
|
%
|
3.72
|
%
|
22,865
|
10.21
|
%
|
3.45
|
%
|
|||||||||||||
Total
deposits
|
$
|
325,602
|
100.00
|
%
|
3.33
|
%
|
$
|
278,090
|
100.00
|
%
|
2.21
|
%
|
$
|
223,974
|
100.00
|
%
|
1.46
|
%
|
Three
months or less
|
$
|
16,977
|
||
Over
three months through six months
|
14,435
|
|||
Over
six months through one year
|
15,478
|
|||
Over
one year to three years
|
12,080
|
|||
Over
three years
|
208
|
|||
Total
|
$
|
59,177
|
For
The Years Ended September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Beginning
balance
|
$
|
263,524
|
$
|
214,049
|
$
|
217,426
|
||||
Net
deposits (withdrawals) before interest credited
|
33,644
|
44,903
|
(6,705
|
)
|
||||||
Interest
credited
|
7,944
|
4,572
|
3,328
|
|||||||
Ending
balance
|
$
|
305,111
|
$
|
263,524
|
$
|
214,049
|
2007
|
$
|
6,579
|
||
2008
|
1,022
|
|||
2009
|
6,064
|
|||
2010
|
456
|
|||
2011
|
5,000
|
|||
$
|
19,121
|
At
September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
in thousands)
|
||||||||||
Balance
at end of year
|
$
|
28,875
|
$
|
17,800
|
$
|
-
|
||||
Weighted
average balance during the year
|
11,727
|
9,409
|
4,900
|
|||||||
Weighted
average interest rate at the end of year
|
5.51
|
%
|
4.11
|
%
|
1.25
|
%
|
||||
Maximum
month-end balance during the year
|
28,875
|
22,100
|
11,500
|
|||||||
Average
interest rate during the year
|
4.81
|
%
|
2.85
|
%
|
1.52
|
%
|
·
|
real
estate mortgages;
|
·
|
consumer
and commercial loans;
|
·
|
specific
types of debt securities, including certain corporate debt securities
and
obligations of federal, state and local governments and
agencies;
|
·
|
certain
types of corporate equity securities;
and
|
·
|
certain
other assets.
|
·
|
common
stockholders’ equity, excluding the unrealized appreciation or
depreciation, net of tax, from available-for-sale
securities;
|
·
|
non-cumulative
perpetual preferred stock, including any related retained earnings;
and
|
·
|
minority
interests in consolidated subsidiaries minus all intangible assets,
other
than qualifying servicing rights and any net unrealized loss on marketable
equity securities.
|
·
|
cumulative
perpetual preferred stock;
|
·
|
certain
perpetual preferred stock for which the dividend rate may be reset
periodically;
|
·
|
hybrid
capital instruments, including mandatory convertible
securities;
|
·
|
term
subordinated debt;
|
·
|
intermediate
term preferred stock;
|
·
|
allowance
for loan losses; and
|
·
|
up
to 45% of pretax net unrealized holding gains on available-for-sale
equity
securities with readily determinable fair market
values.
|
·
|
the
quality of the bank’s interest rate risk management
process;
|
·
|
the
overall financial condition of the bank;
and
|
·
|
the
level of other risks at the bank for which capital is
needed.
|
(i)
|
1%
of the aggregate principal amount of its unpaid mortgage loans, home
purchase contracts and similar obligations at the beginning of each
year;
|
(ii)
|
0.3%
of its assets; or
|
(iii)
|
5%
(or such greater fraction as established by the Federal Home Loan
Bank of
New York) of its advances from the Federal Home Loan Bank of New
York.
|
·
|
its
ratio of total capital to risk-weighted assets is at least
10%;
|
·
|
its
ratio of Tier 1 capital to risk-weighted assets is at least 6%;
and
|
·
|
its
ratio of Tier 1 capital to total assets is at least 5%, and it is
not
subject to any order or directive by the Federal Deposit Insurance
Corporation to meet a specific capital
level.
|
·
|
its
ratio of total capital to risk-weighted assets is at least 8%; or
|
·
|
its
ratio of Tier 1 capital to risk-weighted assets is at least 4%;
and
|
·
|
its
ratio of Tier 1 capital to total assets is at least 4% (3% if the
bank
receives the highest rating under the Uniform Financial Institutions
Rating System) and it is not a well-capitalized
institution.
|
·
|
its
total risk-based capital is less than 8%;
or
|
·
|
its
Tier 1 risk-based-capital is less than 4%;
and
|
·
|
its
leverage ratio is less than 4% (or less than 3% if the institution
receives the highest rating under the Uniform Financial Institutions
Rating System).
|
·
|
its
total risk-based capital is less than
6%;
|
·
|
its
Tier 1 capital is less than 3%; or
|
·
|
its
leverage ratio is less than 3%.
|
·
|
insolvency,
or when the assets of the bank are less than its liabilities to depositors
and others;
|
·
|
substantial
dissipation of assets or earnings through violations of law or unsafe
or
unsound practices;
|
·
|
existence
of an unsafe or unsound condition to transact
business;
|
·
|
likelihood
that the bank will be unable to meet the demands of its depositors
or to
pay its obligations in the normal course of business;
and
|
·
|
insufficient
capital, or the incurring or likely incurring of losses that will
deplete
substantially all of the institution’s capital with no reasonable prospect
of replenishment of capital without federal
assistance.
|
·
|
limits
the extent to which the bank or its subsidiaries may engage in “covered
transactions” with any one affiliate to an amount equal to 10% of such
bank’s capital stock and retained earnings, and limits all such
transactions with all affiliates to an amount equal to 20% of such
capital
stock and retained earnings; and
|
·
|
requires
that all such transactions be on terms that are consistent with safe
and
sound banking practices.
|
·
|
a
lending test, to evaluate the institution’s record of making loans in its
service areas;
|
·
|
an
investment test, to evaluate the institution’s record of investing in
community development projects, affordable housing, and programs
benefiting low or moderate income individuals and businesses;
and
|
·
|
a
service test, to evaluate the institution’s delivery of services through
its branches, ATMs and other
offices.
|
·
|
making
or servicing loans;
|
·
|
performing
certain data processing services;
|
·
|
providing
discount brokerage services, or acting as fiduciary, investment or
financial advisor;
|
·
|
leasing
personal or real property;
|
·
|
making
investments in corporations or projects designed primarily to promote
community welfare; and
|
·
|
acquiring
a savings and loan association.
|
·
|
each
of its depository institution subsidiaries is “well
capitalized;”
|
·
|
each
of its depository institution subsidiaries is “well
managed;”
|
·
|
each
of its depository institution subsidiaries has at least a “satisfactory”
Community Reinvestment Act rating at its most recent examination;
and
|
·
|
the
bank holding company has filed a certification with the Federal Reserve
Board stating that it elects to become a financial holding
company.
|
·
|
the
interest income we earn on our interest-earning assets, such as loans
and
securities; and
|
·
|
the
interest expense we pay on our interest-bearing liabilities, such
as
deposits and borrowings.
|
ITEM
2.
|
Description
of Property
|
Original
Year
|
Year
of
|
|||||
Location
|
Leased
or Owned
|
Leased
or Acquired
|
Lease
Expiration
|
|||
Main
Office:
|
||||||
400
Somerset Street
|
Owned
|
2005
|
-
|
|||
New
Brunswick, New Jersey
|
||||||
Full
- Service Branches:
|
||||||
582
Milltown Road
|
Leased
|
2002
|
2012
|
|||
North
Brunswick, New Jersey
|
||||||
3050
Highway No. 27
|
Owned
|
1969
|
-
|
|||
South
Brunswick, New Jersey
|
||||||
1000
Route 202 South
|
Leased
|
2006
|
2031
|
|||
Branchburg,
New Jersey
|
||||||
89
French Street
|
Leased
|
2006
|
2011
|
|||
New
Brunswick, New Jersey
|
||||||
(Scheduled
to open during the first calendar quarter of 2007)
|
ITEM
3.
|
Legal
Proceedings
|
ITEM
4.
|
Submission
of Matters to a Vote of Security
Holders
|
ITEM
5.
|
Market
for Common Equity, Related Stockholder Matters and Small Business
Issuer
Purchases of Equity
Securities
|
(a)
|
Market
for Common Stock
|
2006
|
High
|
Low
|
Dividends
|
|||||||
Quarter
ended September 30, 2006
|
$
|
13.60
|
$
|
11.13
|
$
|
-
|
||||
Quarter
ended June 30, 2006
|
12.00
|
10.75
|
-
|
|||||||
Quarter
ended March 31, 2006
|
12.39
|
10.35
|
-
|
(b)
|
Not
applicable.
|
(c)
|
Magyar
Bancorp, Inc. did not repurchase any shares of its common stock during
the
relevant period.
|
ITEM
6.
|
Management’s
Discussion and Analysis or Plan of
Operation
|
For
the Years Ended September 30,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Yield
/
Cost
|
Average
Balance
|
Interest
Income/
Expense
|
Yield
/
Cost
|
Average
Balance
|
Interest
Income/
Expense
|
Yield
/
Cost
|
||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||
Interest-earning
deposits
|
$
|
2,441
|
$
|
106
|
4.34
|
%
|
$
|
750
|
$
|
18
|
2.40
|
%
|
$
|
5,578
|
$
|
33
|
0.59
|
%
|
||||||||||
Loans
|
311,706
|
21,520
|
6.90
|
%
|
217,955
|
13,029
|
5.98
|
%
|
178,304
|
9,627
|
5.40
|
%
|
||||||||||||||||
Securities
|
||||||||||||||||||||||||||||
Taxable
|
47,048
|
1,801
|
3.83
|
%
|
63,421
|
2,427
|
3.83
|
%
|
75,824
|
2,888
|
3.81
|
%
|
||||||||||||||||
Tax-exempt
|
1,214
|
69
|
5.68
|
%
|
149
|
13
|
8.52
|
%
|
159
|
13
|
8.52
|
%
|
||||||||||||||||
FHLB
of NY stock
|
2,408
|
119
|
4.94
|
%
|
2,008
|
94
|
4.68
|
%
|
1,641
|
27
|
1.65
|
%
|
||||||||||||||||
Total
interest-earning assets
|
364,817
|
23,615
|
6.47
|
%
|
284,284
|
15,581
|
5.48
|
%
|
261,506
|
12,588
|
4.81
|
%
|
||||||||||||||||
Noninterest-earning
assets
|
30,693
|
26,989
|
12,088
|
|||||||||||||||||||||||||
Total
assets
|
$
|
395,510
|
$
|
311,272
|
$
|
273,594
|
||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||
Savings
accounts (1)
|
$
|
55,623
|
621
|
1.12
|
%
|
$
|
51,625
|
340
|
0.66
|
%
|
$
|
52,522
|
305
|
0.58
|
%
|
|||||||||||||
NOW
accounts (2)
|
70,470
|
1,681
|
2.39
|
%
|
57,551
|
633
|
1.10
|
%
|
50,990
|
238
|
0.47
|
%
|
||||||||||||||||
Time
deposits (3)
|
166,118
|
6,192
|
3.73
|
%
|
123,412
|
3,406
|
2.76
|
%
|
111,988
|
2,677
|
2.39
|
%
|
||||||||||||||||
Total
interest-bearing deposits
|
292,211
|
8,494
|
2.91
|
%
|
232,588
|
4,379
|
1.88
|
%
|
215,500
|
3,220
|
1.49
|
%
|
||||||||||||||||
Federal
Home Loan Bank borrowings
|
39,172
|
1,829
|
4.67
|
%
|
37,340
|
1,574
|
4.22
|
%
|
22,833
|
1,039
|
4.55
|
%
|
||||||||||||||||
Loan
payable
|
807
|
64
|
7.93
|
%
|
965
|
67
|
6.94
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
Total
interest-bearing liabilities
|
332,190
|
10,387
|
3.13
|
%
|
270,893
|
6,020
|
2.22
|
%
|
238,333
|
4,259
|
1.79
|
%
|
||||||||||||||||
Noninterest-bearing
liabilities
|
24,509
|
16,582
|
12,541
|
|||||||||||||||||||||||||
Total
liabilities
|
356,699
|
287,475
|
250,874
|
|||||||||||||||||||||||||
Retained
earnings
|
38,811
|
23,797
|
22,720
|
|||||||||||||||||||||||||
Total
liabilities and retained earnings
|
$
|
395,510
|
$
|
311,272
|
$
|
273,594
|
||||||||||||||||||||||
Tax-equivalent
basis adjustment
|
(20
|
)
|
(4
|
)
|
(4
|
)
|
||||||||||||||||||||||
Net
interest income
|
$
|
13,208
|
$
|
9,557
|
$
|
8,325
|
||||||||||||||||||||||
Interest
rate spread
|
3.34
|
%
|
3.26
|
%
|
3.02
|
%
|
||||||||||||||||||||||
Net
interest-earning assets
|
$
|
32,627
|
$
|
13,391
|
$
|
23,173
|
||||||||||||||||||||||
Net
interest margin
|
3.62
|
%
|
3.36
|
%
|
3.18
|
%
|
||||||||||||||||||||||
Average
interest-earning assets to average interest-bearing liabilities
|
109.82
|
%
|
104.94
|
%
|
109.72
|
%
|
(1)
|
Includes
passbook savings, money market passbook and club
accounts.
|
(2)
|
Includes
interest-bearing checking and money market
accounts.
|
(3)
|
Includes
certificates of deposits and individual retirement
accounts.
|
For
the Years Ended September 30,
|
|||||||||||||||||||
2006
vs. 2005
|
2005
vs. 2004
|
||||||||||||||||||
Increase
(decrease)
|
Increase
(decrease)
|
||||||||||||||||||
due
to
|
due
to
|
||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Interest-earning
deposits
|
$
|
41
|
$
|
47
|
$
|
88
|
$
|
(28
|
)
|
$
|
13
|
$
|
(15
|
)
|
|||||
Loans
|
5,606
|
2,885
|
8,491
|
2,141
|
1,261
|
3,402
|
|||||||||||||
Securities
|
|||||||||||||||||||
Taxable
|
(627
|
)
|
1
|
(626
|
)
|
(473
|
)
|
12
|
(461
|
)
|
|||||||||
Tax-exempt
|
91
|
(35
|
)
|
56
|
-
|
-
|
-
|
||||||||||||
FHLB
of NY stock
|
19
|
6
|
25
|
6
|
61
|
67
|
|||||||||||||
Total
interest-earning assets
|
5,130
|
2,904
|
8,034
|
1,646
|
1,347
|
2,993
|
|||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Savings
accounts (1)
|
26
|
255
|
281
|
(5
|
)
|
40
|
35
|
||||||||||||
NOW
accounts (2)
|
142
|
906
|
1,048
|
31
|
364
|
395
|
|||||||||||||
Time
deposits (3)
|
1,179
|
1,607
|
2,786
|
273
|
456
|
729
|
|||||||||||||
Total
interest-bearing deposits
|
1,347
|
2,768
|
4,115
|
299
|
860
|
1,159
|
|||||||||||||
Federal
Home Loan Bank borrowings
|
77
|
178
|
255
|
660
|
(125
|
)
|
535
|
||||||||||||
Loan
payable
|
(11
|
)
|
8
|
(3
|
)
|
67
|
-
|
67
|
|||||||||||
Total
interest-bearing liabilities
|
1,413
|
2,954
|
4,367
|
1,026
|
735
|
1,761
|
|||||||||||||
Increase/decrease
in tax equivalent
|
|||||||||||||||||||
net
interest income
|
$
|
3,717
|
$
|
(50
|
)
|
$
|
3,667
|
$
|
620
|
$
|
612
|
$
|
1,232
|
||||||
Change
in tax-equivalent basis adjustment
|
(16
|
)
|
-
|
||||||||||||||||
|
|||||||||||||||||||
Increase/decrease
in net interest income
|
$
|
3,651
|
$
|
1,232
|
(1)
|
Includes
passbook savings, money market passbook and club
accounts.
|
(2)
|
Includes
interest-bearing checking and money market
accounts.
|
(3)
|
Includes
certificates of deposits and individual retirement
accounts.
|
Change
in Interest Rates
|
Estimated
Net Interest Income (NII)
|
Estimated
Increase (Decrease) in NII Year 1
|
Estimated
NII
|
Estimated
Increase (Decrease) in NII Year 2
|
|||||||||||||||
(Basis
Points) (1)
|
Year
1
|
Amount
|
Percent
|
Year
2
|
Amount
|
Percent
|
|||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
+200
|
$
|
13,827
|
$
|
24
|
0.18
|
%
|
$
|
12,810
|
$
|
(992
|
)
|
-7.19
|
%
|
||||||
Unchanged
|
13,802
|
—
|
—
|
13,627
|
(176
|
)
|
-1.27
|
%
|
|||||||||||
-200
|
13,551
|
(251
|
)
|
-1.82
|
%
|
13,789
|
(14
|
)
|
-0.10
|
%
|
(1)
|
Assumes
an instantaneous uniform change in interest rates at all
maturities.
|
Payments
Due by Period
|
||||||||||||||||
Less
Than
|
One
to
|
Three
to
|
More
Than
|
|||||||||||||
One
Year
|
Three
Years
|
Five
Years
|
Five
Years
|
Total
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Certificates
of deposit
|
$
|
141,818
|
$
|
29,922
|
$
|
3,618
|
$
|
-
|
$
|
175,358
|
||||||
Federal
Home Loan Bank advances (1)
|
6,579
|
7,086
|
5,456
|
-
|
19,121
|
|||||||||||
Repurchase
agreements
|
-
|
5,000
|
-
|
-
|
5,000
|
|||||||||||
Available
lines of credit
|
17,776
|
1,439
|
-
|
11,762
|
30,977
|
|||||||||||
Operating
leases
|
283
|
572
|
572
|
3,058
|
4,485
|
|||||||||||
Total
|
$
|
166,456
|
$
|
44,019
|
$
|
9,646
|
$
|
14,820
|
$
|
234,941
|
||||||
Commitments
to extend credit
|
$
|
39,133
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
39,133
|
(1)
|
Reflects
all debt.
|
ITEM
7.
|
Financial
Statements
|
Consolidated
Financial Statements:
|
|
Report
of Independent Registered Public Accounting Firm
|
52
|
Consolidated
Balance Sheets as of September 30, 2006 and 2005
|
53
|
Consolidated
Statements of Income for the Years ended September 30, 2006 and
2005
|
54
|
Consolidated
Statements of Changes in Shareholders’
Equity for the Years ended September 30, 2005 and 2005
|
55
|
Consolidated
Statements of Cash Flows for the Years ended September 30, 2006 and
2005
|
56
|
Notes
to Consolidated Financial Statements
|
57
|
Signatures
|
|
Exhibit
31.1
|
|
Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
Exhibit
31.2
|
|
Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
Exhibit
32
|
|
Certification
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
September
30,
|
|||||||
2006
|
2005
|
||||||
ASSETS
|
|||||||
Cash
|
$
|
5,912
|
$
|
897
|
|||
Interest
earning deposits with banks
|
105
|
2,312
|
|||||
Total
cash and cash equivalents
|
6,017
|
3,209
|
|||||
Investment
securities - available for sale, at fair value
|
18,169
|
20,602
|
|||||
Investment
securities - held to maturity, at cost (fair value of $23,358 and
$33,853
at September 30, 2006 and 2005, respectively)
|
23,895
|
34,269
|
|||||
Federal
Home Loan Bank of New York stock, at cost
|
2,870
|
2,444
|
|||||
Loans
receivable, net of allowance for loan losses of $3,892 and $3,129
at
September 30, 2006 and 2005, respectively
|
347,969
|
267,317
|
|||||
Bank
owned life insurance
|
9,606
|
5,813
|
|||||
Accrued
interest receivable
|
2,218
|
1,556
|
|||||
Premises
and equipment, net
|
21,690
|
19,463
|
|||||
Other
assets
|
1,770
|
5,032
|
|||||
Total
assets
|
$
|
434,204
|
$
|
359,705
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Liabilities
|
|||||||
Deposits
|
$
|
325,602
|
$
|
278,090
|
|||
Escrowed
funds
|
1,158
|
1,195
|
|||||
Federal
Home Loan Bank of New York advances
|
47,996
|
38,872
|
|||||
Securities
sold under agreements to repurchase
|
5,000
|
10,000
|
|||||
Loans
payable
|
-
|
2,497
|
|||||
Accrued
interest payable
|
1,141
|
496
|
|||||
Accounts
payable and other liabilities
|
5,095
|
4,167
|
|||||
Total
liabilities
|
385,992
|
335,317
|
|||||
Stockholders'
equity
|
|||||||
Preferred
stock: $.01 Par Value, 1,000,000 shares authorized; no shares
issued
|
-
|
-
|
|||||
Common
stock: $.01 Par Value, 8,000,000 shares authorized; 5,923,742 issued
at
September 30, 2006, no shares issued at September 30,
2005.
|
59
|
-
|
|||||
Additional
paid-in capital
|
25,786
|
-
|
|||||
Unearned
shares held by Employee Stock Ownership Plan
|
(2,133
|
)
|
-
|
||||
Retained
earnings
|
25,001
|
24,996
|
|||||
Accumulated
other comprehensive loss, net
|
(501
|
)
|
(608
|
)
|
|||
Total
stockholders' equity
|
48,212
|
24,388
|
|||||
Total
liabilities and stockholders' equity
|
$
|
434,204
|
$
|
359,705
|
Years
Ended September 30,
|
|||||||
2006
|
2005
|
||||||
Interest
and dividend income
|
|||||||
Loans,
including fees
|
$
|
21,519
|
$
|
13,029
|
|||
Investment
securities
|
1,957
|
2,454
|
|||||
Federal
Home Loan Bank of New York stock
|
119
|
94
|
|||||
Total
interest and dividend income
|
23,595
|
15,577
|
|||||
Interest
expense
|
|||||||
Deposits
|
8,494
|
4,379
|
|||||
Borrowed
money
|
1,893
|
1,641
|
|||||
Total
interest expense
|
10,387
|
6,020
|
|||||
Net
interest and dividend income
|
13,208
|
9,557
|
|||||
Provision
for loan losses
|
961
|
891
|
|||||
Net
interest and dividend income after provision for loan
losses
|
12,247
|
8,666
|
|||||
Other
income
|
|||||||
Service
charges
|
771
|
567
|
|||||
Other
operating income
|
302
|
199
|
|||||
Gains
on sales of loans
|
9
|
-
|
|||||
Losses
on the sales of investment securities
|
(104
|
)
|
(6
|
)
|
|||
Gain
on sale of premises and equipment
|
-
|
2,891
|
|||||
Total
other income
|
978
|
3,651
|
|||||
Other
expenses
|
|||||||
Compensation
and employee benefits
|
6,951
|
6,266
|
|||||
Occupancy
expenses
|
1,975
|
1,177
|
|||||
Advertising
|
329
|
371
|
|||||
Professional
fees
|
710
|
387
|
|||||
Service
fees
|
438
|
395
|
|||||
Contribution
to charitable foundation
|
1,547
|
-
|
|||||
Other
expenses
|
1,398
|
1,210
|
|||||
Total
other expenses
|
13,348
|
9,806
|
|||||
Income
(loss) before income tax (benefit) expense
|
(123
|
)
|
2,511
|
||||
Income
tax expense (benefit) expense
|
(128
|
)
|
951
|
||||
Net
income
|
$
|
5
|
$
|
1,560
|
|||
Basic
and diluted earnings per share
|
NM
|
N/A
|
Accumulated
|
||||||||||||||||||||||
Common
Stock
|
Additional
|
Unearned
|
Other
|
|||||||||||||||||||
Shares
|
Par
|
Paid-In
|
ESOP
|
Retained
|
Comprehensive
|
|||||||||||||||||
Issued
|
Value
|
Capital
|
Shares
|
Earnings
|
Loss
|
Total
|
||||||||||||||||
Balance,
September 30, 2004
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
23,436
|
$
|
(324
|
)
|
$
|
23,112
|
||||||||
Net
income for the year ended September 30, 2005
|
-
|
-
|
-
|
-
|
1,560
|
-
|
1,560
|
|||||||||||||||
Other
comprehensive loss, net of reclassification adjustments and
taxes
|
-
|
-
|
-
|
-
|
-
|
(284
|
)
|
(284
|
)
|
|||||||||||||
Total
comprehensive income
|
$
|
1,276
|
||||||||||||||||||||
Balance,
September 30, 2005
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,996
|
$
|
(608
|
)
|
$
|
24,388
|
||||||||
Issuance
of common stock, net of offering expenses of $1.4 million
|
5,923,742
|
59
|
25,770
|
-
|
-
|
-
|
25,829
|
|||||||||||||||
Common
stock acquired by ESOP
|
-
|
-
|
-
|
(2,306
|
)
|
-
|
-
|
(2,306
|
)
|
|||||||||||||
Allocation
of ESOP stock
|
-
|
-
|
16
|
173
|
-
|
-
|
189
|
|||||||||||||||
Net
income for the year ended September 30, 2006
|
-
|
-
|
-
|
-
|
5
|
-
|
5
|
|||||||||||||||
Other
comprehensive income, net of reclassification adjustments and
taxes
|
-
|
-
|
-
|
-
|
-
|
107
|
107
|
|||||||||||||||
Total
comprehensive income
|
$
|
112
|
||||||||||||||||||||
Balance,
September 30, 2006
|
5,923,742
|
$
|
59
|
$
|
25,786
|
$
|
(2,133
|
)
|
$
|
25,001
|
$
|
(501
|
)
|
$
|
48,212
|
Year
Ended September 30,
|
|||||||
2006
|
2005
|
||||||
Operating
activities
|
|||||||
Net
income
|
$
|
5
|
$
|
1,560
|
|||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
|||||||
Contribution
of stock to charitable foundation
|
1,047
|
-
|
|||||
Depreciation
expense
|
1,000
|
519
|
|||||
Premium
amortization on investment securities, net
|
166
|
166
|
|||||
Gain on
sale of premise and equipment
|
-
|
(2,891
|
)
|
||||
Proceeds
from mortgage loan sales
|
2,817
|
-
|
|||||
Provision
for loan losses
|
961
|
891
|
|||||
Gains
on sale of loans
|
(9
|
)
|
-
|
||||
Losses
on sale of investment securities
|
104
|
6
|
|||||
Allocation
of ESOP shares
|
189
|
-
|
|||||
Deferred
income tax provision
|
(477
|
)
|
389
|
||||
Increase
in accrued interest receivable
|
(662
|
)
|
(282
|
)
|
|||
Increase in
bank owned life insurance
|
(223
|
)
|
(177
|
)
|
|||
Decrease
(increase) in other assets
|
3,874
|
(3,566
|
)
|
||||
Increase
in accrued interest payable
|
645
|
297
|
|||||
Increase
in accounts payable and other liabilities
|
593
|
376
|
|||||
Net
cash provided by (used in) operating activities
|
10,030
|
(2,712
|
)
|
||||
Investing
activities
|
|||||||
Net
increase in loans receivable
|
(84,421
|
)
|
(79,732
|
)
|
|||
Purchases
of investment securities held to maturity
|
-
|
(2,000
|
)
|
||||
Purchases
of investment securities available for sale
|
(7,612
|
)
|
-
|
||||
Sales
of investment securities available for sale
|
3,896
|
3,103
|
|||||
Proceeds
from maturities/calls of investment securities held to
maturity
|
4,010
|
3,000
|
|||||
Proceeds
from maturities/calls of investment securities available for
sale
|
2,519
|
2,002
|
|||||
Principal
repayments on investment securities held to maturity
|
6,293
|
7,282
|
|||||
Principal
repayments on investment securities available for sale
|
3,738
|
5,080
|
|||||
Purchases
of bank owned life insurance
|
(3,570
|
)
|
-
|
||||
Purchases
of premises and equipment
|
(3,227
|
)
|
(11,673
|
)
|
|||
Proceeds
from sale of premises and equipment
|
-
|
3,905
|
|||||
Purchase
of Federal Home Loan Bank of New York stock
|
(426
|
)
|
(698
|
)
|
|||
Net
cash used in investing activities
|
(78,800
|
)
|
(69,731
|
)
|
|||
Financing
activities
|
|||||||
Net
increase in deposits
|
47,512
|
54,116
|
|||||
Net
proceeds from issuance of common stock
|
24,782
|
-
|
|||||
Net
purchase of common stock for ESOP
|
(2,306
|
)
|
-
|
||||
Net
increase (decrease) in escrowed funds
|
(37
|
)
|
94
|
||||
Proceeds
from long-term Federal Home Loan Bank advances
|
-
|
10,000
|
|||||
Repayments
of long-term Federal Home Loan Bank advances
|
(1,951
|
)
|
-
|
||||
Proceeds
from short-term Federal Home Loan Bank advances
|
11,075
|
5,130
|
|||||
Repayments
of short-term Federal Home Loan Bank advances
|
-
|
(1,660
|
)
|
||||
Proceeds
of securities sold under agreements to repurchase
|
-
|
500
|
|||||
Repayments
of securities sold under agreements to repurchase
|
(5,000
|
)
|
-
|
||||
(Repayments
of) proceeds from loans payable
|
(2,497
|
)
|
2,497
|
||||
Net
cash provided by financing activities
|
71,578
|
70,677
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
2,808
|
(1,766
|
)
|
||||
Cash
and cash equivalents, beginning of year
|
3,209
|
4,975
|
|||||
Cash
and cash equivalents, end of year
|
$
|
6,017
|
$
|
3,209
|
|||
Supplemental
disclosures of cash flow information
|
|||||||
Cash
paid for
|
|||||||
Interest
|
$
|
9,742
|
$
|
5,656
|
|||
Income
taxes
|
$
|
30
|
$
|
-
|
1.
|
Basis
of Financial Statement
Presentation
|
2.
|
Cash
and Cash Equivalents
|
3.
|
Investment
Securities
|
4.
|
Loans
and Allowance for Loan Losses
|
5.
|
Premises
and Equipment
|
6.
|
Real
Estate Owned
|
7.
|
Income
Taxes
|
8.
|
Advertising
Costs
|
9.
|
Financial
Instruments
|
10.
|
Earnings
Per Share
|
11.
|
Comprehensive
Income (Loss)
|
Year
Ended September 30, 2006
|
Year
Ended September 30, 2005
|
||||||||||||||||||
Net
of
|
Net
of
|
||||||||||||||||||
Before
Tax
|
Tax
|
Tax
|
Before
Tax
|
Tax
|
Tax
|
||||||||||||||
Amount
|
Expense
|
Amount
|
Amount
|
Expense
|
Amount
|
||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Unrealized
holding gains (losses) arising during period on:
|
|||||||||||||||||||
Available-for-sale
investments
|
$
|
411
|
$
|
(191
|
)
|
$
|
220
|
$
|
(282
|
)
|
$
|
118
|
$
|
(164
|
)
|
||||
Less
reclassification adjustment for losses realized in net
income
|
(104
|
)
|
45
|
(59
|
)
|
6
|
(2
|
)
|
4
|
||||||||||
Minimum
pension liability
|
(336
|
)
|
134
|
(202
|
)
|
(161
|
)
|
37
|
(124
|
)
|
|||||||||
Interest
rate derivative
|
148
|
-
|
148
|
-
|
-
|
-
|
|||||||||||||
Other
comprehensive income (loss), net
|
$
|
119
|
$
|
(12
|
)
|
$
|
107
|
$
|
(437
|
)
|
$
|
153
|
$
|
(284
|
)
|
12.
|
Reclassifications
|
13.
|
Bank
Owned Life Insurance
|
14.
|
New
Accounting Pronouncements
|
September
30,
|
||||
2006
|
||||
Shares
released for allocation
|
-
|
|||
Unreleased
shares
|
217,863
|
|||
Total
ESOP shares
|
217,863
|
September
30, 2006
|
|||||||||||||
Gross
|
Gross
|
||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||
Cost
|
Gain
|
Losses
|
Value
|
||||||||||
(In
thousands)
|
|||||||||||||
Securities
available for sale
|
|||||||||||||
U.S.
government and agency obligations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||
Municipal
bonds
|
2,049
|
17
|
-
|
2,066
|
|||||||||
Equity
securities
|
142
|
-
|
-
|
142
|
|||||||||
Mortgage-backed
securities
|
16,258
|
34
|
(331
|
)
|
15,961
|
||||||||
Total
|
$
|
18,449
|
$
|
51
|
$
|
(331
|
)
|
$
|
18,169
|
||||
Securities
held to maturity
|
|||||||||||||
U.S.
government and agency obligations
|
2,157
|
4
|
(56
|
)
|
$
|
2,105
|
|||||||
Municipal
bonds
|
137
|
8
|
-
|
145
|
|||||||||
Corporate
notes
|
-
|
-
|
-
|
-
|
|||||||||
Mortgage-backed
securities
|
21,601
|
39
|
(532
|
)
|
21,108
|
||||||||
Total
|
$
|
23,895
|
$
|
51
|
$
|
(588
|
)
|
$
|
23,358
|
September
30, 2005
|
|||||||||||||
Gross
|
Gross
|
||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||
Cost
|
Gain
|
Losses
|
Value
|
||||||||||
(In
thousands)
|
|||||||||||||
Securities
available for sale
|
|||||||||||||
U.S.
government and agency obligations
|
$
|
4,000
|
$
|
-
|
$
|
(106
|
)
|
$
|
3,894
|
||||
Municipal
bonds
|
-
|
-
|
|||||||||||
Equity
securities
|
142
|
-
|
-
|
142
|
|||||||||
Mortgage-backed
securities
|
17,047
|
-
|
(481
|
)
|
16,566
|
||||||||
|
|||||||||||||
Total
|
$
|
21,189
|
$
|
-
|
$
|
(587
|
)
|
$
|
20,602
|
||||
Securities
held to maturity
|
|||||||||||||
U.S.
government and agency obligations
|
$
|
4,313
|
$
|
17
|
$
|
(64
|
)
|
$
|
4,266
|
||||
Municipal
bonds
|
-
|
-
|
-
|
-
|
|||||||||
Corporate
notes
|
2,001
|
14
|
-
|
2,015
|
|||||||||
Mortgage-backed
securities
|
27,955
|
124
|
(507
|
)
|
27,572
|
||||||||
Total
|
$
|
34,269
|
$
|
155
|
$
|
(571
|
)
|
$
|
33,853
|
The
contractual maturities of mortgage-backed securities held-to-maturity
generally exceed 20 years; however, the effective lives are expected
to be shorter due to anticipated prepayments.
The
amortized cost and fair value of the Company’s debt securities
available-for-sale and held-to-maturity at September 30, 2006, by
contractual maturity, are shown below. Expected maturities may differ
from
contractual maturities because borrowers may have the right to call
or
prepay obligations.
|
September
30, 2006
|
|||||||||||||
Available
For Sale
|
Held
To Maturity
|
||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
||||||||||
Cost
|
Value
|
Cost
|
Value
|
||||||||||
(In
thousands)
|
|||||||||||||
Due
in one year or less
|
$
|
142
|
$
|
142
|
$
|
-
|
$
|
-
|
|||||
Due
after one year through five years
|
-
|
-
|
2,000
|
1,950
|
|||||||||
Due
after five year through ten years
|
2,049
|
2,066
|
137
|
145
|
|||||||||
Due
after ten years
|
16,258
|
15,961
|
21,601
|
21,108
|
|||||||||
Total
|
$
|
18,449
|
$
|
18,169
|
$
|
23,895
|
$
|
23,358
|
September
30, 2006
|
||||||||||||||||||||||
Less
Than 12 Months
|
12
Months Or Greater
|
Total
|
||||||||||||||||||||
Description
Of
|
Number
Of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||
Securities
|
Securities
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||
U.S.
government and agency obligations
|
2
|
$
|
-
|
$
|
-
|
$
|
2,071
|
$
|
55
|
$
|
2,071
|
$
|
55
|
|||||||||
Mortgage-backed
securities
|
53
|
4,314
|
29
|
27,096
|
834
|
31,410
|
863
|
|||||||||||||||
Total
|
55
|
$
|
4,314
|
$
|
29
|
$
|
29,167
|
$
|
889
|
$
|
33,481
|
$
|
918
|
September
30, 2005
|
||||||||||||||||||||||
Less
Than 12 Months
|
12
Months Or Greater
|
Total
|
||||||||||||||||||||
Description
Of
|
Number
Of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||
Securities
|
Securities
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||
U.S.
government and agency obligations
|
5
|
$
|
133
|
$
|
1
|
$
|
7,831
|
$
|
169
|
$
|
7,964
|
$
|
170
|
|||||||||
Mortgage-backed
securities
|
41
|
2,705
|
36
|
35,229
|
952
|
37,934
|
988
|
|||||||||||||||
Total
|
46
|
$
|
2,838
|
$
|
37
|
$
|
43,060
|
$
|
1,121
|
$
|
45,898
|
$
|
1,158
|
September
30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
One
-to-four family residential
|
$
|
143,245
|
$
|
126,269
|
|||
Commercial
real estate
|
68,567
|
57,366
|
|||||
Construction
|
90,342
|
44,418
|
|||||
Home
equity lines of credit
|
10,843
|
10,398
|
|||||
Commercial
business
|
24,510
|
17,413
|
|||||
Other
|
14,846
|
14,862
|
|||||
Total
loans receivable
|
352,353
|
270,726
|
|||||
Deferred
loan costs (fees)
|
(492
|
)
|
(280
|
)
|
|||
Allowance
for loan losses
|
(3,892
|
)
|
(3,129
|
)
|
|||
Total
loans receivable, net
|
$
|
347,969
|
$
|
267,317
|
Years
ended September 30,
|
|||||||
2006
|
2005
|
||||||
(In
thousands)
|
|||||||
Balance,
beginning of year
|
$
|
3,129
|
$
|
2,341
|
|||
Provision
for loan loss charged to income
|
961
|
891
|
|||||
Charge
- offs
|
(198
|
)
|
(103
|
)
|
|||
Balance,
end of year
|
$
|
3,892
|
$
|
3,129
|
September
30,
|
|||||||
2006
|
2005
|
||||||
(In
thousands)
|
|||||||
Loans
|
$
|
2,023
|
$
|
1,294
|
|||
Investment
securities
|
41
|
94
|
|||||
Mortgage-backed
securities
|
154
|
168
|
|||||
Accrued
interest receivable
|
$
|
2,218
|
$
|
1,556
|
Estimated
|
September
30,
|
|||||||||
Useful
Lives
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Land
|
Indefinite
|
$
|
2,628
|
$
|
2,605
|
|||||
Buildings
and improvements
|
10-35
years
|
19,161
|
14,427
|
|||||||
Construction
in progress
|
10-40
years
|
-
|
1,934
|
|||||||
Furniture,
fixtures and equipment
|
5
- 7 years
|
2,923
|
2,519
|
|||||||
24,712
|
21,485
|
|||||||||
Less
accumulated depreciation and amortization
|
(3,022
|
)
|
(2,022
|
)
|
||||||
$
|
21,690
|
$
|
19,463
|
September
30,
|
|||||||
2006
|
2005
|
||||||
(In
thousands)
|
|||||||
Demand
accounts
|
$
|
20,491
|
$
|
14,566
|
|||
Savings
accounts
|
43,127
|
53,819
|
|||||
NOW
accounts
|
30,519
|
28,149
|
|||||
Money
market accounts
|
56,107
|
30,499
|
|||||
Certificate
of deposit
|
149,811
|
126,165
|
|||||
Retirement
accounts
|
25,547
|
24,892
|
|||||
$
|
325,602
|
$
|
278,090
|
2007
|
$
|
141,818
|
||
2008
|
26,682
|
|||
2009
|
3,240
|
|||
2010
|
2,192
|
|||
2011
|
1,426
|
|||
$
|
175,358
|
1.
|
Federal
Home Loan Bank of New York Advances
|
2007
|
$
|
6,579
|
||
2008
|
1,022
|
|||
2009
|
6,064
|
|||
2010
|
456
|
|||
2011
|
5,000
|
|||
$
|
19,121
|
Year
Ended September 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Balance
at end of year
|
$
|
28,875
|
$
|
17,800
|
|||
Weighted
average balance during the year
|
11,727
|
9,409
|
|||||
Weighted
average interest rate at the end of year
|
5.51
|
%
|
4.11
|
%
|
|||
Maximum
month-end balance during the year
|
28,875
|
22,100
|
|||||
Average
interest rate during the year
|
4.81
|
%
|
2.85
|
%
|
2.
|
Securities
Sold Under Reverse Repurchase
Agreements
|
3.
|
Loans
Payable
|
Year
Ended September 30,
|
|||||||
2006
|
2005
|
||||||
Current
|
$
|
349
|
$
|
562
|
|||
Deferred
|
(477
|
)
|
389
|
||||
$
|
(128
|
)
|
$
|
951
|
Year
Ended September 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Income
tax at statutory rate
|
$
|
(41
|
)
|
$
|
854
|
||
Increase
(decrease) resulting from:
|
|||||||
State
income taxes, net of federal income tax benefit
|
(23
|
)
|
141
|
||||
Tax-exempt
income, net
|
(79
|
)
|
(55
|
)
|
|||
Nondeductible
expenses
|
11
|
9
|
|||||
ESOP
|
5
|
-
|
|||||
Other,
net
|
(1
|
)
|
2
|
||||
Total
income tax provision
|
$
|
(128
|
)
|
$
|
951
|
September
30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Non-qualified
compensation plan
|
$
|
99
|
$
|
38
|
|||
Net
unrealized holding losses on investment securities available for
sale
|
100
|
246
|
|||||
Unrealized
loss, minimum pension liability
|
312
|
178
|
|||||
Deferred
loan fees
|
(95
|
)
|
108
|
||||
Discount
accretion on investments
|
(107
|
)
|
(101
|
)
|
|||
Depreciation
|
(1,295
|
)
|
(1,045
|
)
|
|||
Pension
|
74
|
19
|
|||||
Allowance
for loan losses
|
1,138
|
833
|
|||||
Charitable
Contributions
|
589
|
-
|
|||||
Valuation
Allowance
|
(75
|
)
|
-
|
||||
Net
deferred tax asset, included in other assets
|
$
|
740
|
$
|
276
|
At
September 30,
|
|||||||
2006
|
2005
|
||||||
(In
thousands)
|
|||||||
Actuarial
present value of benefit obligations
|
$
|
3,313
|
$
|
2,736
|
|||
Change
in benefit obligations
|
|||||||
Projected
benefit obligation, beginning
|
$
|
3,409
|
$
|
2,730
|
|||
Increase
due to decrease in the discount rate
|
-
|
352
|
|||||
Service
cost
|
48
|
153
|
|||||
Interest
cost
|
190
|
169
|
|||||
Amendments
|
(413
|
)
|
86
|
||||
Actuarial
gain (loss)
|
198
|
(15
|
)
|
||||
Annuity
payments and lump sum distributions
|
(119
|
)
|
(66
|
)
|
|||
Projected
benefit obligation, end
|
$
|
3,313
|
$
|
3,409
|
|||
Change
in plan assets
|
|||||||
Market
value of assets, beginning
|
$
|
2,098
|
$
|
1,890
|
|||
Actual
return on plan assets
|
195
|
226
|
|||||
Employer
contributions
|
200
|
48
|
|||||
Annuity
payments and lump sum distributions
|
(119
|
)
|
(66
|
)
|
|||
Market
value of assets, end
|
$
|
2,374
|
$
|
2,098
|
|||
Funded
Status
|
$
|
(939
|
)
|
$
|
(1,311
|
)
|
|
Unrealized
net obligation
|
-
|
50
|
|||||
Unrealized
net losses
|
780
|
1,118
|
|||||
Unrealized
prior service cost
|
-
|
120
|
|||||
Accrued
pension costs
|
$
|
(159
|
)
|
$
|
(23
|
)
|
Year
Ended September 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Service
cost benefits earned during the year
|
$
|
48
|
$
|
153
|
|||
Interest
cost on projected benefit obligation
|
190
|
169
|
|||||
Expected
return on plan assets
|
(153
|
)
|
(141
|
)
|
|||
Amortization
of transitional obligation
|
1
|
3
|
|||||
Amortization
of unrecognized loss
|
81
|
66
|
|||||
Amortization
of unrecognized past service liability
|
8
|
23
|
|||||
Net
Pension Cost
|
$
|
175
|
$
|
273
|
2006
|
2005
|
||||||
Equity
securities
|
55
|
%
|
55
|
%
|
|||
Debt
securities (Bond Mutual Funds)
|
38
|
%
|
42
|
%
|
|||
Other
(Money Market Fund)
|
7
|
%
|
3
|
%
|
|||
Total
|
100
|
%
|
100
|
%
|
10/01/2006
- 09/30/2007
|
$
|
123
|
||
10/01/2007
- 09/30/2008
|
$
|
134
|
||
10/01/2008
- 09/30/2009
|
$
|
149
|
||
10/01/2009
- 09/30/2010
|
$
|
157
|
||
10/01/2010
- 09/30/2011
|
$
|
162
|
||
Years
2011-2015
|
$
|
959
|
1.
|
Lease
Commitments
|
Year
Ending September 30,
|
||||
2007
|
$
|
283
|
||
2008
|
286
|
|||
2009
|
286
|
|||
2010
|
286
|
|||
2011
|
286
|
|||
Thereafter
|
3,058
|
|||
$
|
4,485
|
2.
|
Contingencies
|
Notional
Amount
|
Strike
|
Maturity
Date
|
Fair
Value
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Interest
rate floor
|
$
|
5,000
|
7.25
|
%
|
December
27, 2010
|
$
|
53
|
||||||
Interest
rate floor
|
$
|
10,000
|
8.00
|
%
|
June
23, 2013
|
$
|
412
|
||||||
Interest
rate cap
|
$
|
(10,000
|
)
|
9.50
|
%
|
June
23, 2013
|
$
|
(91
|
)
|
September
30,
|
|||||||
2006
|
2005
|
||||||
(In
thousands)
|
|||||||
Financial
instruments whose contract amounts represent credit risk
|
|||||||
Unused
line of credit
|
$
|
30,977
|
$
|
29,687
|
|||
Fixed
rate loan commitments
|
$
|
6,499
|
$
|
1,983
|
|||
Variable
rate loan commitments
|
$
|
32,634
|
$
|
8,745
|
The
carrying amounts and estimated fair values of the Company’s financial
instruments at September 30, 2006 and 2005 are as
follows:
|
|
2006
|
2005
|
|||||||||||
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
|
Value
|
Value
|
Value
|
Value
|
|||||||||
|
(In
thousands)
|
||||||||||||
|
|
|
|
|
|||||||||
Financial
assets
|
|
|
|
|
|||||||||
Investment
securities
|
$
|
42,064
|
$
|
41,527
|
$
|
54,871
|
$
|
54,455
|
|||||
Loan,
net of allowance for loan losses
|
347,969
|
346,638
|
267,317
|
265,787
|
|||||||||
Bank
owned insurance policies
|
9,606
|
9,606
|
5,813
|
5,813
|
|||||||||
|
|||||||||||||
Financial
liabilities
|
|||||||||||||
Deposits
|
|||||||||||||
Demand,
NOW and money market savings
|
150,244
|
150,244
|
127,033
|
127,033
|
|||||||||
Certificates
of deposit
|
175,358
|
174,493
|
151,057
|
150,075
|
|||||||||
|
|||||||||||||
Total
deposits
|
325,602
|
324,737
|
278,090
|
277,108
|
|||||||||
|
|||||||||||||
Federal
Home Loan Bank of New York Advances and securities sold under reverse
repurchase agreements
|
52,996
|
52,652
|
48,872
|
48,737
|
|||||||||
|
|||||||||||||
Loans
payable
|
-
|
-
|
2,497
|
2,497
|
|||||||||
|
|||||||||||||
Interest
rate floors and caps
|
226
|
374
|
-
|
-
|
|
To
be well-
|
||||||||||||||||||
|
Capitalized
Under
|
||||||||||||||||||
|
For
Capital
|
Prompt
Corrective
|
|||||||||||||||||
|
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
|
(Dollars
in thousands)
|
||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
As
of September 30, 2006
|
|
|
|
|
|
|
|||||||||||||
Total
capital (to risk-weighted assets)
|
|
|
|
|
|
|
|||||||||||||
Magyar
Bancorp, Inc.
|
$
|
52,134
|
14.81
|
%
|
$
|
28,171
|
≥
8.00
|
%
|
N/A
|
N/A
|
|||||||||
Magyar
Bank
|
39,663
|
11.26
|
%
|
28,170
|
≥
8.00
|
%
|
35,214
|
≥
10.00
|
%
|
||||||||||
|
|||||||||||||||||||
Tier
I Capital (to risk-weighted assets)
|
|||||||||||||||||||
Magyar
Bancorp, Inc.
|
48,242
|
13.70
|
%
|
14,085
|
≥
4.00
|
%
|
N/A
|
N/A
|
|||||||||||
Magyar
Bank
|
35,771
|
10.16
|
%
|
14,085
|
≥
4.00
|
%
|
21,128
|
≥
6.00
|
%
|
||||||||||
|
|||||||||||||||||||
Tier
I Capital (to average assets)
|
|||||||||||||||||||
Magyar
Bancorp, Inc.
|
48,242
|
12.20
|
%
|
11,865
|
≥
3.00
|
%
|
N/A
|
N/A
|
|||||||||||
Magyar
Bank
|
35,771
|
8.61
|
%
|
11,865
|
≥
3.00
|
%
|
19,776
|
≥
5.00
|
%
|
||||||||||
|
|||||||||||||||||||
As
of September 30, 2005 (Magyar Bank only)
|
|||||||||||||||||||
Total
capital (to risk-weighted assets)
|
$
|
27,965
|
10.30
|
%
|
$
|
21,724
|
≥
8.00
|
%
|
$
|
27,155
|
≥
10.00
|
%
|
|||||||
Tier
I Capital (to risk-weighted assets)
|
24,837
|
9.15
|
%
|
10,862
|
≥
4.00
|
%
|
16,293
|
≥
6.00
|
%
|
||||||||||
Tier
I Capital (to average assets)
|
24,837
|
7.23
|
%
|
10,305
|
≥
3.00
|
%
|
17,175
|
≥
5.00
|
%
|
ITEM
8.
|
Changes
In and Disagreements With Accountants on Accounting and Financial
Disclosure
|
ITEM
8A.
|
Controls
and Procedures
|
ITEM
8B.
|
Other
Information
|
ITEM
9.
|
Directors,
Executive Officers, Promoters and Control Persons; Compliance with
Section
16(a) of the Exchange
Act
|
ITEM
10.
|
Executive
Compensation
|
ITEM
11.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
ITEM
12.
|
Certain
Relationships and Related
Transactions
|
ITEM
13.
|
Exhibits
|
3.1
|
Certificate
of Incorporation of Magyar Bancorp,
Inc.*
|
3.2
|
Bylaws
of Magyar Bancorp, Inc.*
|
4
|
Form
of Common Stock Certificate of Magyar Bancorp,
Inc.*
|
10.1
|
Form
of Employee Stock Ownership Plan*
|
10.2
|
Restated
Executive Supplemental Retirement Income Agreement for Elizabeth
E.
Hance
|
10.3
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Elizabeth E. Hance
|
10.4
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Joseph J. Lukacs, Jr.
|
10.5
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Salvatore J. Romano
|
10.6
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Joseph A. Yelencsics
|
10.7
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Edward C. Stokes, III
|
10.8
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Martin A. Lukacs
|
10.9
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Thomas Lankey
|
10.10
|
Restated
Director Supplemental Retirement Income and Deferred Compensation
Agreement for Andrew G. Hodulik
|
10.11
|
Form
of Employment Agreement for Elizabeth E.
Hance*
|
10.12
|
Form
of Change in Control Agreement for Executive
Officers*
|
10.13
|
Executive
Supplemental Retirement Income Agreement for Jon
Ansari
|
10.14
|
Executive
Supplemental Retirement Income Agreement for John
Fitzgerald
|
21
|
Subsidiaries
of Registrant*
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934, as amended, as adopted pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934, as amended, as adopted pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to
18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
*
|
Incorporated
by reference to the Registration Statement on Form SB-2 of Magyar
Bancorp,
Inc. (file no. 333-128392), originally filed with the Securities
and
Exchange Commission on September 16, 2005, as
amended.
|
ITEM
14.
|
Principal
Accountant Fees and
Services
|
MAGYAR
BANCORP, INC.
|
|||
Date:
December 21, 2006
|
By:
|
/s/
Elizabeth E. Hance
|
|
Elizabeth
E. Hance
|
|||
President
and Chief Executive Officer
|
|||
(Duly
Authorized Representative)
|
Signatures
|
Title
|
Date
|
||
/s/
Elizabeth E. Hance
|
President
and Chief Executive Officer
|
December
21, 2006
|
||
Elizabeth
E. Hance
|
(Principal
Executive Officer)
|
|||
/s/
Jon R. Ansari
|
Senior
Vice President and
|
December
21, 2006
|
||
Jon
R. Ansari
|
Chief
Financial Officer
|
|||
(Principal
Financial and Accounting Officer)
|
||||
/s/
Joseph J. Lukacs, Jr.
|
Chairman
of the Board
|
December
21, 2006
|
||
Joseph
J. Lukacs, Jr.
|
||||
/s/
Andrew Hodulik
|
Director
|
December
21, 2006
|
||
Andrew
Hodulik
|
||||
/s/
Thomas Lankey
|
Director
|
December
21, 2006
|
||
Thomas
Lankey
|
||||
/s/
Martin A. Lukacs
|
Director
|
December
21, 2006
|
||
Martin
A. Lukacs, D.M.D.
|
||||
/s/
Salvatore J. Romano
|
Director
|
December
21, 2006
|
||
Salvatore
J. Romano, Ph.D.
|
||||
/s/
Edward C. Stokes, III
|
Director
|
December
21, 2006
|
||
Edward
C. Stokes, III
|
||||
/s/
Joseph A. Yelencsics
|
Director
|
December
21, 2006
|
||
Joseph
A. Yelencsics
|