Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (March 2011)
30 slides from Magyar Bancorp's shareholder meeting presentation, Mar 16, 2011
Slide 1: 2011 Annual Shareholders Meeting
2011 Annual Shareholders Meeting March 16, 2011
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 identif
Slide 3: Magyar Background
Magyar Background } Magyar Bank established in 1922 } Magyar Bancorp completed its reorganization into the Mutual Holding Company structure and public offering in 2006 } 6 branches in Middlesex and Somerset Counties } Trades on NASDAQ under symbol MGYR } Main business lines/strategy: } Full-service
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 Coming June 2011 Bridgewater (op
Slide 5: Deposits by Branch
Deposits by Branch As of 9/30/10
Slide 6: Fiscal Year 2010 Highlights
Fiscal Year 2010 Highlights } Positive earnings in all four quarters (six consecutive) } FY 2010 Net Income - $3.9 million, compared to net loss of $6.1 million in FY 2009 } Increased net interest margin by 38bps } Checking deposits increased 4.8% of total deposits } Reduced high cost CDs to 43.9% o
Slide 7: Fiscal Year 2010 Highlights
Fiscal Year 2010 Highlights } Increased capital $4.2 million, (10%) year over year } Positive earnings } Managed reduction of higher risk-weighted assets } Expense control program } Reduced non-performing loans year over year } Bridgewater office - Opened June 28, 2010 } CRA - “Outstanding”
Slide 8: Fiscal Year 2010 Summary
Fiscal Year 2010 Summary
Slide 9: Total Assets
Total Assets Total Assets declined 5% in FY10
Slide 10: CDs as percentage of deposits decreased to 43.9% in FY10
$325,602 $368,777 $375,560 $427,932 CDs as percentage of deposits decreased to 43.9% in FY10
Slide 11: Checking Deposit Growth
Checking Deposit Growth $51,010 $53,672 $84,677 $88,771 CAGR: Compound Annual Growth Rate
Slide 12: Loan Composition
Loan Composition $352,353 $385,582 $410,728 $444,780 Construction loans as percentage of loans declined from 20.9% on 9/30/09 to 14.0% on 9/30/10
Slide 13: Construction Loans declined 38.7% in FY10
Available lines declined 65% from $23M to $8M. Construction Loans declined 38.7% in FY10
Slide 14: Non-Performing Loans
Non-Performing Loans $20,068 $7,400 $8,048 $33,484 $27,417
Slide 15: Other Real Estate Owned
Other Real Estate Owned $0 $2,238 $4,666 $5,562 $12,655
Slide 16: Non-Performing Assets
Non-Performing Assets Source: SNL Financial Peer Group: MHCs with total assets $400MM- $750MM
Slide 17: Sale of Real Estate Owned (REO)
Sale of Real Estate Owned (REO) } Magyar Bank sold four REO properties in FY 2010 totaling $3.6 million for a net gain of $62,000. } Currently have contracts of sale on four properties with a carrying value of $7.3 million (56% of REO at 12/31/2010). No additional loss is expected from these sales.
Slide 18: 0.50% |—o.25% 0.28% U.25% U.25% U.25% U.25%
2.52% 0.50% |—o.25% 0.28% U.25% U.25% U.25% U.25% 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 —-USTreasury-10yr _——Fed Funds
Slide 19: Net Interest Margin
Net Interest Margin Source: SNL Financial Peer Group: MHCs with total assets $400MM- $750MM
Slide 20: Quarterly Net Income (Loss)
Quarterly Net Income (Loss) 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 (Includes $3.4 million Income Tax Benefit) FY09: Net Loss $6.1 Million FY10: Net Income $3.9 million
Slide 21: Non-interest Expense
Non-interest Expense } Total non-interest expense increased only $92,000 (1%) in FY 2010. } Non-performing asset expense increased $436,000 (+78%) } FDIC Insurance Assessments increased $200,000 (+19%) } Occupancy expenses increased $145,000 (+6%) } However, compensation and benefit expense decrease
Slide 22: Core Earnings Enhancements
Core Earnings Enhancements } Net interest margin } Resolution of non-performing assets } Residential mortgage business returning } Retail operations } Expense control } Reap benefits of restructuring } Resolution of non-performing assets } New FDIC insurance assessment base
Slide 23: Magyar Bank Capital Ratios
Magyar Bank Capital Ratios As of December 31, 2010 *”Well-Capitalized” threshold as defined by Sec. 38 of the Federal Deposit Insurance Act.
Slide 24: Stock Price Performance
Stock Price Performance
Slide 25: MGYR Stock Price & Volume Chart
Price on 3/15/11 $4.25 Price on 2/23/10 $3.27 MGYR Stock Price & Volume Chart
Slide 26: MGYR Stock Performance
MGYR Stock Performance From 2/23/10 - 3/15/11 MGYR: +29.97% MHC Peer Group: -7.13% SNL Thrift MHCs: -6.29% Source: SNL Financial Peer Group: MHCs with total assets $400MM-$750MM
Slide 27: Fiscal Year 2011
Fiscal Year 2011
Slide 28: Fiscal Year 2011
Fiscal Year 2011 } Reduce non-performing assets } Increase core earnings } Growth in residential and commercial lending } FDIC Assessment decrease April 1 } New method of calculating FDIC insurance premium favors community banks } Dodd-Frank Impact } Edison Branch Grand Opening
Slide 29: Community Banking IS our Business
Community Banking IS our Business Strategy } Relationships key driver to growth } Residential Mortgages coming back to community banks } Commercial Lending } Non-Profit Organizations } Over $2.7 million in deposits } Great referral sources } CRA - “Outstanding” rating } Employees volunteer and serve
Slide 30: Magyar Bancorp
Magyar Bancorp