Magyar Bancorp, Inc. 10-K

ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities (a) Our shares of common stock are traded on the NASDAQ Global Market under the symbol “MGYR.” The approximate number of holders of record of Magyar Bancorp, Inc.’s common stock as of September 30, 2021 was 482. Certain shares of Magyar Bancorp, Inc. are held in “nominee” or “street” name and accordingly, the number of beneficial owners of such shares is not known or included in the foregoing number. The Company has not historically paid a dividend to stockholders. However, on November 16, 2021, the Company declared a one-time special dividend of $0.12 per common share, payable December 14, 2021, to common shareholders of record at the close of business on November 30, 2021. In the future, the Company intends to consider adopting a regular cash dividend policy but no assurance can be given as to the timing of when or if any such regular 35 Table of Contents dividend payments would commence. For more information on regulatory restrictions regarding the payment of dividends, see “Item 1- Business- Supervision and Regulation- New Jersey Banking Regulation-Dividends.” Other than its Employee Stock Ownership Plan, Magyar Bancorp, Inc. does not have any equity compensation plans that were not approved by stockholders. There were no stock options or shares of restricted stock available for issuance with respect to Magyar Bancorp’s equity compensation plans at September 30, 2021 (b) The Company completed its second step conversion and related public stock offering on July 14, 2021. In the stock offering, the Company sold 3,910,000 shares of common stock at $10.00 per share in a subscription offering pursuant to a Registration Statement on Form S-1 (SEC File No. 333-254282), which was declared effective by the Securities and Exchange Commission on May 14, 2021. In addition, the Company issued 3,187,825 new shares of Company common stock in exchange for the 2,610,296 shares of common stock which were owned by shareholders other than Magyar Bancorp, MHC. As a result, the Company registered 7,098,070 shares pursuant to the Registration Statement. The subscription offering resulted in gross offering proceeds of approximately $39.1 million. The net offering proceeds (after payment of offering expenses) were approximately $37.4 million. From the net offering proceeds, the Company used $3.4 million to fund a loan to Magyar Bank’s employee stock ownership (which in turn used those funds to purchase 312,800 shares of common stock in the subscription offering), invested $18.7 million in Magyar Bank as additional capital, and retained $18.7 million for general corporate purposes. Keefe, Bruyette & Woods, Inc. served as marketing agent to the Company in connection with the subscription offering. (c) Share repurchases. The Company completed its first stock repurchase program of 130,927 shares in November 2007 and announced in November 2007 a second repurchase program of up to 5% of its publicly-held outstanding shares of common stock, or 129,924 shares, under which 91,000 shares had been repurchased as of July 13, 2021 at an average price of $8.41. Under current federal regulations, subject to limited exceptions, the Company may not repurchase shares of our common stock during the first year following the completion of its second-step conversion offering, which was completed on July 14, 2021. The Company did not repurchase any shares of its common stock during the fiscal year ended September 30, 2021. ITEM 6. [Reserved]