Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2018)
28 slides from Magyar Bancorp's shareholder meeting presentation, Feb 15, 2018
Slide 1: 2018 Annual Shareholders Meeting
2018 Annual Shareholders Meeting 1 February 15, 2018
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 $142 $106 $113 $45 $39 $41 $0 $129 $109 $103 $47 $35 $36 $38 0 20 40 60 80 100 120 140 160 New Brunswick - HQ South Brunswick North Brunswick Branchburg Bridgewater North Edison Edison - Tano Mall Dollars in Millions Total Deposits - 12/31/16 Total Deposits - 12/31/17 6 Totals exc
Slide 7: 2017 Review
2017 Review ▪ Net Income for FY17 increased 30% over FY16 ▪ Non - performing assets declined 18% ▪ Loans increased 3.5% ▪ EPS increased 26% ▪ Tano Mall Branch Opened June 2017 ▪ $38 million in deposits as of December 31, 2017 ▪ Net Interest Margin increased to 3.36% from 3.27% 7
Slide 8: 2017 Review
2017 Review ▪ Mobile Banking App launched May 2017 ▪ OREO portfolio declined 8.5% 8
Slide 9: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 10: Asset Trend
Asset Trend $- $100 $200 $300 $400 $500 $600 $700 Dollars in Millions Loans Investments & Cash Other $ 538 $530 $ 551 $584 $ 597 $603 10
Slide 11: Loan Composition
Loan Composition $- $100 $200 $300 $400 $500 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 11 $ 407 $ 474 $481 $423 $400 $ 458
Slide 12: Non-Performing Loans
Non - Performing Loans $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 Dollars in Thousands HELOC 1-4 Family Residential Commercial/Business Commercial RE Construction $4,207 $5,897 $1,316 $15,656 $9,785 $2,358 12
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 $20.0 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 Dollars in Millions 1-4 Family Residential Commercial RE Land $14.8 $17.3 $16.2 $12.1 $11.1 $10.7 13
Slide 14: Sale of Other Real Estate Owned (OREO)
Sale of Other Real Estate Owned (OREO) ▪ Fiscal Year 2017 - Magyar Bank sold ten OREO properties with an aggregate carrying value of $1.8 million for a net loss of $80,000. ▪ Magyar Bank was able to secure the title for 3 other properties totaling $1.2 million during Fiscal Year 2017. ▪ Of $10.7 mil
Slide 15: Non-Performing Assets/Assets
Non - Performing Assets/Assets 2.91% 1.84% 1.07% 0.72% 0.39% 0.22% 2.74% 3.27% 2.94% 2.07% 1.83% 1.80% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 Non-Performing Loans OREO 15 5.11% 2.79% 2.02% 2.22% 5.65% 4.01%
Slide 16: Deposit Composition
Deposit Composition $0 $100 $200 $300 $400 $500 $600 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking $466 $493 $515 $507 $453 $448 16
Slide 17: Checking Deposit Composition
Checking Deposit Composition $0 $20 $40 $60 $80 $100 $120 $140 $160 9/30/2013 9/30/2014 9/30/2015 9/30/2016 9/30/2017 12/31/2017 Dollars in Millions Non-Interest Checking Interest Checking $138 $142 $144 $129 $131 $144 17
Slide 18: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.32% 3.30% 3.40% 3.37% 3.36% 3.44% 1.61% 2.45% 2.40% 2.30% 2.33% 2.40% 2.99% 3.05% 3.06% 3.07% 3.15% 3.07% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17 MGYR Net Interest Margin 10-yr. Treasury Yield Average NIM - MHC Peer Group
Slide 19: Annual Net Income
Annual Net Income $262 $574 $897 $1,091 $1,423 $0.05 $0.10 $0.15 $0.19 $0.24 $- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 EPS Dollars in Thousands Annual Net Income EPS 19
Slide 20: Quarterly Pre-Tax Income
Quarterly Pre - Tax Income $174 $53 $265 $267 $587 $519 $498 $813 $893 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Q1 Q2 Q3 Q4 Dollars in Thousands FY 2014 FY 2015 FY 2016 FY 2017 FY2018 20
Slide 21: Tax Cuts and Jobs Act
Tax Cuts and Jobs Act • Enacted into law December 22, 2017 • Reduced Magyar Bancorp’s federal income tax rate from 34% to 21% effective upon enactment • Resulted in $306,000 charge to income tax expense in the December 2017 quarter from revaluation of deferred tax assets • The Company’s blended fede
Slide 22: Stockholders Equity
Stockholders Equity 22 $45.9 $49.8 $43.0 $44.0 $45.0 $46.0 $47.0 $48.0 $49.0 $50.0 $51.0 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 (Dollars in Millions) Total Equity $7.90 $8.56 $7.40 $7.60 $7.80 $8.00 $8.20 $8.40 $8.60 $8.80 9/30/14 9/30/15 9/30/16 9/30/17 12/31/17 Book Value Per Share
Slide 23: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 24: MGYR Stock Performance – Year
MGYR Stock Performance – 5 Year (20.00) 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00 Percentage Change NASDAQ:MGYR: 143.79 % SNL U.S. Thrift: 59.94 % SNL U.S. Thrift MHCs: 63.03 % MGYR Stock Price 2/9/2013 - $5.07 2/9/2018 - $12.36 24 Source: SNL
Slide 25: Fiscal Year 2018 Outlook
Fiscal Year 2018 Outlook Magyar Bancorp
Slide 26: Fiscal Year 2018 Outlook
Fiscal Year 2018 Outlook • Continued improvement in earnings and EPS • Deposit Strategy – emphasize relationship banking and our community banking strategy • Identify quality residential and commercial lending opportunities • Manage interest rate risk in an increasing rate environment 26
Slide 27: Fiscal Year 2018 Outlook
Fiscal Year 2018 Outlook • Continued focus on non - interest expenses • Further reduction in non - performing assets • Regulatory impact • Tax Cut & Jobs Act 27
Slide 28: Questions?
Questions? Magyar ancorp