The largest shareholder of Magyar Bancorp Inc. of New Brunswick, N.J., is demanding that its chairman resign, pointing to "significant losses."

PL Capital Group of Chatham, N.J., said Friday that it withheld its votes to re-elect Joseph Lukacs Jr. during its annual meeting scheduled for Wednesday.

PL Capital is Magyar's largest outside shareholder, owning more than 16% of the publicly held shares.

PL Capital's principal, Richard Lashley, said in a press release that Lukacs "should take responsibility for the significant losses incurred by Magyar and its shareholders during his tenure by resigning."

Magyar reported in January that it had fourth-quarter net income of $127,000, up from $21,000 a year earlier.

"Lukacs and the Magyar management team have claimed for several years to be open to all strategic alternatives to restore shareholder value, yet they have failed to do so," Lashley said in the release. "It is time for a new chairman to step in and accomplish what Mr. Lukacs seems incapable or unwilling to do."

Lukacs, 69, has been on the board for 34 years and is a retired dentist.

His brother, Martin Lukacs, is also a director at the $526.7 million-asset bank.

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