New Jersey-based Magyar Bancorp to convert to fully public stock holding company

The boards of New Jersey-based Magyar Bancorp MHC and Magyar Bancorp Inc. (MHC) adopted a plan of conversion and reorganization pursuant to which the latter will reorganize into a fully public stock holding company structure.

As part of the conversion, Magyar Bancorp will conduct a second-stage offering of new common shares. Magyar Bancorp MHC will merge into Magyar Bancorp and will cease to exist.

Magyar Bancorp common shares held by persons other than the MHC will be exchanged for new Magyar Bancorp common shares pursuant to an exchange ratio generally intended to preserve the percentage ownership interests of such persons in the company upon consummation of the conversion. Magyar Bancorp common shares owned by the MHC will be canceled and the amount of the MHC's ownership interest in the company will be sold through the second-stage stock offering. In the stock offering, depositors of Magyar Bank (MHC) with qualifying deposits as of Dec. 31, 2019, will have first priority to purchase the new common shares.

The conversion and offering will have no impact on depositors, borrowers or other customers of Magyar Bank, according to a news release.

The transactions contemplated by the conversion plan are subject to approval by the Federal Reserve Board, the New Jersey Department of Banking and Insurance, the depositors of Magyar Bank and the company's stockholders, including approval by a majority of the shares held by persons other than the MHC.