Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2020)
27 slides from Magyar Bancorp's shareholder meeting presentation, Feb 20, 2020
Slide 1: 2020 Annual Shareholders Meeting
2020 Annual Shareholders Meeting 1 February 20 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements about future events that constitute forward - looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward - looking statements may be ident
Slide 3: Company Overview
Company Overview Magyar Bancorp
Slide 4: Magyar Bancorp, Inc. Overview
Magyar Bancorp, Inc. Overview ▪ Magyar Bank, a New Jersey chartered savings bank originally founded in 1922, is the wholly owned subsidiary of Magyar Bancorp, Inc. ▪ Magyar Bancorp, Inc., trades on NASDAQ under the symbol MGYR. Currently 45.0% is owned by public shareholders. The balance of the shar
Slide 5: Magyar Bank Branch Locations
5 Magyar Bank Branch Locations
Slide 6: Deposits by Branch
Deposits by Branch $156 $115 $105 $45 $32 $41 $45 $166 $115 $103 $43 $25 $42 $43 0 20 40 60 80 100 120 140 160 180 New Brunswick - HQ South Brunswick North Brunswick Branchburg Bridgewater North Edison Edison - Tano Mall Dollars in Millions Total Deposits - 12/31/18 Total Deposits - 12/31/19 6 Total
Slide 7: 2019 Review
2019 Review ▪ Net Income for FY19 increased 48% over FY18 ▪ EPS increased 46% ▪ Federal Reserve lowered interest rates 75bps in calendar 2019 ▪ Business Online Banking service upgrade completed Summer 2019 ▪ Online Residential Loan Application upgrade completed April 2019 – improved processing time
Slide 8: Financial Highlights
Financial Highlights Magyar B ncorp
Slide 9: Asset Trend
Asset Trend $300 $350 $400 $450 $500 $550 $600 $650 $700 Dollars in Millions Loans Investments & Cash Other $630 $ 551 $584 $624 $603 $641 9
Slide 10: Loan Composition
Loan Composition $- $100 $200 $300 $400 $500 $600 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 10 $523 $ 474 $512 $423 $530 $ 458
Slide 11: 2019 Loan Originations
2019 Loan Originations Residential and Home Equity 22% Commercial Real Estate 42% Commercial Lines of Credit 13% Construction 17% SBA 6% 11 $92 million in loan originations in 2019
Slide 12: Non-Performing Loans
Non - Performing Loans - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Dollars in Thousands Other HELOC 1-4 Family Residential Commercial/Business Commercial RE Construction 12 $6,894 $5,897 $4,207 $2,358 $906 $5,449
Slide 13: Other Real Estate Owned
Other Real Estate Owned $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Dollars in Millions 1-4 Family Residential Commercial RE Land $7.5 $7.5 $16.2 $12.1 $11.1 $8.6 13
Slide 14: Sale of Other Real Estate Owned (OREO)
Sale of Other Real Estate Owned (OREO) ▪ Fiscal Year 2019 - Magyar Bank sold four OREO properties with an aggregate carrying value of $1.3 million for a net gain of $57,000. ▪ Magyar Bank was able to secure the title for 2 other properties totaling $503,000 during Fiscal Year 2019. ▪ Of $7.5 million
Slide 15: Non-Performing Assets/Assets
Non - Performing Assets/Assets 1.07% 0.72% 0.39% 0.14% 1.09% 0.85% 2.94% 2.07% 1.83% 1.38% 1.20% 1.16% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Non-Performing Loans OREO 2.01% 15 2.29% 2.79% 1.52% 2.22% 4.01%
Slide 16: Deposit Composition
Deposit Composition $0 $100 $200 $300 $400 $500 $600 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking $466 $493 $515 $530 $530 $544 16
Slide 17: Checking Deposit Composition
Checking Deposit Composition $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Dollars in Millions Non-Interest Checking Interest Checking $155 $142 $144 $129 $156 $151 17
Slide 18: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.49% 3.32% 3.41% 3.49% 3.45% 3.44% 3.05% 2.69% 2.41% 2.00% 1.68% 1.92% 3.14% 3.13% 3.09% 3.04% 3.02% 2.97% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 MGYR Net Interest Margin 10-yr. Treasury Yield Average NIM - Peer Group 18 P
Slide 19: Annual Net Income
Annual Net Income $897 $1,091 $1,423 $2,030 $2,996 $0.15 $0.19 $0.24 $0.35 $0.51 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 EPS Dollars in Thousands Annual Net Income EPS 19
Slide 20: Stockholders Equity
Stockholders Equity 20 $47.7 $49.5 $51.4 $54.7 $55.2 $42.0 $44.0 $46.0 $48.0 $50.0 $52.0 $54.0 $56.0 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 (Dollars in Millions) Total Equity $8.20 $8.50 $8.82 $9.39 $9.49 $7.50 $8.00 $8.50 $9.00 $9.50 $10.00 9/30/16 9/30/17 9/30/18 9/30/19 12/31/19 Book Value Per
Slide 21: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 22: MGYR Stock Performance – 1 Year
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 (4.00) (2.00) 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Volume Percentage Change Percentage Change - 9.09% Volume 22 MGYR Stock Performance – 1 Year MGYR Stock Price 1/31/2019 - $11.55 1/31/2020 - $12.60
Slide 23: MGYR Stock Performance – 5 Year
MGYR Stock Performance – 5 Year (10.00) 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 1/30/2015 1/30/2016 1/30/2017 1/30/2018 1/30/2019 1/30/2020 Percentage Change NASDAQ:MGYR: 50.00 % SNL U.S. Thrift: 26.24 % SNL U.S. Thrift MHCs: 43.77 % 23 MGYR Stock Price 1/31/2015 - $8.40 1/31/2020 - $12.60
Slide 24: Fiscal Year 2020 Outlook
Fiscal Year 2020 Outlook Magyar Bancorp
Slide 25: Fiscal Year 2020 Outlook
Fiscal Year 2020 Outlook • Continued emphasis on Community Banking Strategy to grow the business – Magyar received its 5 th consecutive rating of Outstanding during 2019 from FDIC • Identify quality residential and commercial lending opportunities • Manage interest rate risk in a low interest rate e
Slide 26: Fiscal Year 2020 Outlook
Fiscal Year 2020 Outlook • Continued focus on non - interest expenses • Regulatory impact • Online Deposit Application • IT Cybersecurity – maintain high level of awareness, protect against fraud 26
Slide 27: Questions?
Questions? Magyar Bancorp