Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2009)
28 slides from Magyar Bancorp's shareholder meeting presentation, Feb 11, 2009
Slide 1: 2009 Annual Shareholders Meeting
2009 Annual Shareholders Meeting February 11, 2009
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 identifi
Slide 3: Magyar Bancorp Overview
Magyar Bancorp Overview Founded in 1922 January 23, 2006 – Magyar Bancorp completed its reorganization into the Mutual Holding Company form On such date, Magyar Bancorp completed its Initial Public Offering, raising $26.2 million. It currently has 45.7% of its outstanding shares owned by public shar
Slide 4: Magyar Bank Branch Locations
Magyar Bank Branch Locations Branchburg 1000 Route 202 South New Brunswick (Corporate Headquarters) 400 Somerset Street North Brunswick 582 Milltown Road South Brunswick 3050 Highway 27 Existing Locations New Brunswick (Inside Child Health Institute) 93 French Street
Slide 5: 2008 Year in Review
2008 Year in Review
Slide 6: Impact of Economic Downturn on Magyar Bancorp
Impact of Economic Downturn on Magyar Bancorp Depreciation of collateral values securing construction loans resulted in loan write downs and additional loan loss provisions Several large commercial and construction loans moved into non-performing status Increased loan loss provisions resulted in net
Slide 7: New Jersey Housing Market
County 3Q07 Median Sales Price 3Q08 Median Sales Price % Change Homes Sold 3Q07 Homes Sold 3Q08 % Change New Jersey Housing Market Middlesex $385,100 $375,600 -2.5% 1,499 1,203 -19.7% Somerset $508,400 $456,900 -10.1% -10.2% Source: New Jersey Association of Realtors 3rd Qtr. NJ Home Sales Report
Slide 8: Impact of Economic Downturn on Magyar Bancorp
Impact of Economic Downturn on Magyar Bancorp Residential mortgage portfolio – defined as 1-4 family closed end loans 90+ day delinquency rate as of 12/31/08: 0.91% 90+ day delinquency rate as of 12/31/07: 0.39%
Slide 9: 2008 Financial Summary
2008 Financial Summary
Slide 10: Asset Growth
Asset Growth Assets grew 8.7% in 2008
Slide 11: Deposit Growth
Deposit Growth $223,974 $278,090 $325,602 $368,777 $375,560 $384,908 Deposits grew 1.8% in 2008
Slide 12: Growth in Non-Interest & Interest Bearing Checking
Growth in Non-Interest & Interest Bearing Checking $34,473 $42,715 $51,010 $53,672 $57,682 Non-Interest & Interest Bearing Checking grew 13.4% in 2008
Slide 13: Loan Portfolio Growth
Loan Portfolio Growth $195,910 $277,026 $352,353 $385,582 $410,651 $425,812 Loans grew 6.5% in 2008
Slide 14: Non-Performing Assets
Non-Performing Assets $247 $1,040 $7,400 $10,286 $24,734 $27,720
Slide 15: Performing Assets and Loans ratios
6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 0.13% 0,059 0.20%. 9/30/04 9/30/05 9/30/06 4.89% 9/30/07 9/30/08 5.12% 12/31/08 Performing Assets/Total ‘Assets Performing ‘Loans/Total Loans
Slide 16: Maintained Net Interest Margin in 2008
Maintained Net Interest Margin in 2008
Slide 17: Quarterly Earnings Per Share
Quarterly Earnings Per Share 12/31/06 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 9/30/08 - $3.3 million loan loss provision 12/31/08 - $4.0 million loan loss provision
Slide 18: Stock Price Performance
Stock Price Performance
Slide 19: MGYR Stock Price & Volume Chart
MGYR Stock Price & Volume Chart Price on 2/6/09 $3.50
Slide 20: Market Trends
Market Trends As of February 6, 2009 -67.50 -15.73 -37.34 -34.75 -48.07 -13.07 -5.79 -15.11 -4.01 -21.37 -14.13 -14.01 -10.98 -57.32 -75% -60% -45% -30% -15% 0% MGYR SNL Thrift MHCs NJ MHCs Mid-Atlantic MHCs SNL Thrifts Nasdaq Bank S&P 500 Change LTM Change Three Month
Slide 21: MGYR vs. MHCs
MGYR vs. MHCs As of February 6, 2009 NM – Not Measureable MGYR Average Median Average Median Price $3.50 Price/Earnings NM 28.2x 24.5x 27.6x 27.7x Price/LTM EPS NM 31.7x 27.7x 33.5x 28.1x Price/Book 47.0% 107.6% 98.6% 118.3% 121.8% Price/Tang Book 47.0% 117.3% 104.8% 131.7% 134.2% Nationwide MHCs NJ
Slide 22: Stock Buyback Update
Stock Buyback Update 5% Buyback of 130,927 shares, announced April 2007 Completed November 2007 Second 5% Buyback of 129,924 shares announced November 2007 63,770 shares purchased through December 31,
Slide 23: Capital Adequacy
Capital Adequacy As of December 31, 2008
Slide 24: Magyar Continues to be an Active Leader in the Community
Magyar Continues to be an Active Leader in the Community
Slide 25: Community Involvement
Community Involvement HARP – Housing Assistance Recovery Program Pilot program developed by Magyar Bank and First Baptist Community Development Corporation (CDC), Somerset, NJ 2008 Chris Kjeldsen Award Presented by the Middlesex County Chamber of Commerce 2008 Improving Financial Literacy Award Pres
Slide 26: 2009 Strategic Initiatives
2009 Strategic Initiatives
Slide 27: Looking Ahead to 2009
Enhance shareholder value by positioning the Company to take advantage of the eventual economic recovery Looking Ahead to 2009 Reduce non-performing assets Reduce exposure to construction loans Focus on residential and commercial lending opportunities with a conservative underwriting approach Gain d
Slide 28: Any Questions?
Any Questions?