Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2013)
28 slides from Magyar Bancorp's shareholder meeting presentation, Feb 14, 2013
Slide 1: 2013 Annual Shareholders Meeting
2013 Annual Shareholders Meeting 1 February 14, 2013
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. ▪ On January 23, 2006, Magyar Bank completed its reorganization into the mutual holding company form by completing its initial IPO raisi
Slide 5: Magyar Bank Branch Locations
5 Magyar Bank Branch Locations Branchburg Bridgewater New Brunswick - HQ North Brunswick Edison South Brunswick
Slide 6: Market Demographic Summary
Market Demographic Summary 6 County Total Population 2011 (Actual) Population Change 2010 - 2011 (%) Projected Population Change 2011 - 2016 (%) Median HH Income 2011 ($) Projected HH Income Change 2011 - 2016 (%) Middlesex 812,506 0.33 2.50 77,382 13.06 Somerset 325,222 0.55 3.29 97,053 9.46 Aggreg
Slide 7: Deposits by Branch as of 12/31/12
Deposits by Branch 7 as of 12/31/12
Slide 8: 2012 Review
2012 Review ▪ Consent Order Removed in March, 2012 ▪ Sold six properties with a carrying value of $7.6 million in OREO property during Fiscal Year 2012 ▪ Non - performing loans declined 28% in Fiscal Year 2012 ▪ Non - performing assets declined 25% in Fiscal Year 2012 ▪ Net Interest Margin increased
Slide 9: 2012 Review, (cont'd.)
2012 Review, (cont’d.) ▪ Checking deposits as a percentage of total deposits increased to 22.9% as of 9/30/12 from 19.3% as of 9/30/11 ▪ Certificates of deposit (including IRAs) as a percentage of total deposits declined to 37.1% as of 9/30/12 from 41.3% on 9/30/11. ▪ Non - Interest Expense declined
Slide 10: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 11: Asset Trend
Asset Trend Total Assets $565.2 $537.9 $524.0 $520.0 $514.3 ss08.8 $514.6 5 $510.0 © $500.0 $490.0 $480.0 9130/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12
Slide 12: Loan Composition
Loan Composition $ - $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Dollars in Millions 1 - 4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 12 $410.7 $444.8 $408.5 $384.9 $388.9 $395.7
Slide 13: Non-Performing Loans
Non - Performing Loans $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Dollars in Thousands Other Home Equity Lines 1 - 4 Family Residential Commercial Commercial RE Construction $28,000 $20,068 $33,484 $28,160 $20,074 $22,200 13
Slide 14: Other Real Estate Owned
Other Real Estate Owned $4,666 $5,562 $12,655 $16,595 $13,381 $12,979 $ - $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Dollars in Thousands 14
Slide 15: Sale of Real Estate Owned (REO)
Sale of Real Estate Owned (REO) ▪ Fiscal Year 2012 - Magyar Bank sold six REO properties with an aggregate carrying value of $7.6 million for a net loss of $22,000. ▪ 1 st Quarter of Fiscal Year 2013 – Magyar Bank sold 3 properties with an aggregate carrying value of $554,000 for a net loss of $8,00
Slide 16: Non-Performing Assets/Assets
Non - Performing Assets/Assets 3.90% 5.93% 5.21% 5.37% 3.95% 4.32% 0.91% 0.98% 2.35% 3.17% 2.62% 2.52% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Non - Performing Loans OREO 16 4.81% 6.91% 7.56% 8.54% 6.57% 6.84%
Slide 17: Deposit Composition
Deposit Composition $ - $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Dollars in Millions CDs Savings Accounts Money Market Accounts Checking $448.5 $428.0 $424.9 $416.6 $424.4 17 $375.6 CDs as percentage of deposits declined from 55%
Slide 18: Checking Deposit Growth
Checking Deposit Growth $ - $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Dollars in Thousands Non - Interest Checking Interest Checking 18 $60,862 $84,677 $88,771 $82,161 $95,209 $103,616
Slide 19: Treasury/Fed Funds
10 - year Treasury/Fed Funds 19
Slide 20: Net Interest Margin
3.40% 3.30% 3.20% 3.10% 3.00% 2.90% Net Interest Margin 3.08% 930/11 3.07% BWI 3.19% 313 2 3.35% 3.29% 3.19% 6/30/12 9/30/12
Slide 21: Net Interest Margin – MHC Peer Group
Net Interest Margin – MHC Peer Group 21 MHCs in Northeast Region with Assets $200M - $1.5B – as of 12/31/12 Source: SNL Financial
Slide 22: Pre-Tax Quarterly Net Income (Loss)
Pre - Tax Quarterly Net Income (Loss) $159 $38 $(32) $242 $384 $414 $(100) $ - $100 $200 $300 $400 $500 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 Dollars in Thousands 22
Slide 23: Stockholders Equity
Stockholders Equity 23 MGYR Remains Well - Capitalized 7.08 8.21 8.49 8.84 8.78 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 9/30/09 9/30/10 9/30/11 9/30/12 12/31/12 Tangible Common Equity/Tangible Assets 40.0 44.2 44.5 45.0 45.2 37.0 38.0 39.0 40.0 41.0 42.0 43.0 44.0 45.0 46.0 9/30/09 9
Slide 24: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 25: MGYR Stock Performance
MGYR Stock Performance 25 MGYR Stock Price 12/31/11 - $2.46 2/8/13 - $5.07 106.10% 25.32% 14.53 %
Slide 26: Fiscal Year 2013 Outlook
Fiscal Year 2013 Outlook Magyar Bancorp
Slide 27: Fiscal Year 2013
Fiscal Year 2013 • Reduce non - performing assets • Increase core earnings • Growth in residential and commercial lending • Dodd - Frank Impact • Continued Focus on Non - Interest Expenses 27
Slide 28: Questions?
Questions? Magyar Bancorp