Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2019)
28 slides from Magyar Bancorp's shareholder meeting presentation, Feb 13, 2019
Slide 1: 2019 Annual Shareholders Meeting
2019 Annual Shareholders Meeting 1 February 13, 2019
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 $129 $109 $103 $47 $35 $36 $38 $156 $115 $105 $45 $32 $41 $45 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 - 12/31/17 Total Deposits - 12/31/18 6 Total
Slide 7: 2018 Review
2018 Review ▪ Net Income for FY18 increased 43% over FY17 ▪ Non - performing assets declined 29% ▪ Loans increased 8% ▪ EPS increased 46% ▪ Non - interest bearing deposits increased 6% ▪ Net Interest Margin increased to 3.49% from 3.36% 7
Slide 8: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 9: Asset Trend
Asset Trend $300 $350 $400 $450 $500 $550 $600 $650 $700 Dollars in Millions Loans Investments & Cash Other $530 $ 551 $584 $624 $603 $644 9
Slide 10: Loan Composition
Loan Composition $- $100 $200 $300 $400 $500 $600 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 10 $ 407 $ 474 $512 $423 $514 $ 458
Slide 11: 2018 Loan Originations
2018 Loan Originations Residential Mortgage and Home Equity 19% [CATEGORY NAME] [PERCENTAGE] SBA 8% Commercial Lines of Credit 9% Construction 17% 11 $103 million in loan originations in 2018
Slide 12: Non-Performing Loans
Non - Performing Loans - 2,000 4,000 6,000 8,000 10,000 12,000 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 Dollars in Thousands Other HELOC 1-4 Family Residential Commercial/Business Commercial RE Construction 12 $9,785 $5,897 $4,207 $2,358 $906 $4,061
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 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 Dollars in Millions 1-4 Family Residential Commercial RE Land $8.1 $17.3 $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 2018 - Magyar Bank sold ten OREO properties with an aggregate carrying value of $2.5 million for a net gain of $184,000. ▪ Magyar Bank was able to secure the title for 1 other property totaling $323,000 during Fiscal Year 2018. ▪ Of $8.1 million i
Slide 15: Non-Performing Assets/Assets
Non - Performing Assets/Assets 1.84% 1.07% 0.72% 0.39% 0.14% 0.63% 3.27% 2.94% 2.07% 1.83% 1.38% 1.27% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 Non-Performing Loans OREO 15 5.11% 2.79% 1.52% 2.22% 1.90% 4.01%
Slide 16: Deposit Composition
Deposit Composition $0 $100 $200 $300 $400 $500 $600 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking $466 $493 $515 $531 $549 $448 16
Slide 17: Checking Deposit Composition
Checking Deposit Composition $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 Dollars in Millions Non-Interest Checking Interest Checking $155 $142 $144 $129 $131 $151 17
Slide 18: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.36% 3.44% 3.50% 3.54% 3.49% 3.32% 2.33% 2.40% 2.74% 2.85% 3.05% 2.69% 3.07% 3.03% 3.08% 3.11% 3.13% 3.10% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/17 12/31/17 3/31/18 6/30/18 9/30/18 12/31/18 MGYR Net Interest Margin 10-yr. Treasury Yield Average NIM - MHC Peer Group
Slide 19: Annual Net Income
Annual Net Income $574 $897 $1,091 $1,423 $2,030 $0.10 $0.15 $0.19 $0.24 $0.35 $- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $- $500 $1,000 $1,500 $2,000 $2,500 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 EPS Dollars in Thousands Annual Net Income EPS 19
Slide 20: Quarterly Pre-Tax Income
Quarterly Pre - Tax Income $256 $199 $364 $493 $502 $281 $401 $571 $587 $519 $498 $813 $893 $578 $888 $1,142 $964 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 Q1 Q2 Q3 Q4 Dollars in Thousands FY 2015 FY 2016 FY 2017 FY2018 FY2019 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 $410,000 charge to income tax expense from revaluation of deferred tax assets • The Company’s blended federal and state rate declined f
Slide 22: Stockholders Equity
Stockholders Equity 22 $46.7 $47.7 $49.5 $51.4 $52.3 $43.0 $44.0 $45.0 $46.0 $47.0 $48.0 $49.0 $50.0 $51.0 $52.0 $53.0 9/30/15 9/30/16 9/30/17 9/30/18 12/31/18 (Dollars in Millions) Total Equity $8.02 $8.20 $8.50 $8.82 $8.99 $7.40 $7.60 $7.80 $8.00 $8.20 $8.40 $8.60 $8.80 $9.00 $9.20 9/30/15 9/30/16
Slide 23: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 24: MGYR Stock Performance – Year
MGYR Stock Performance – 5 Year (10.00) 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 Percentage Change NASDAQ:MGYR: 49.17 % SNL U.S. Thrift: 28.40 % SNL U.S. Thrift MHCs: 40.25 % MGYR Stock Price 2/9/2014 - $7.99 2/8/2019 - $11.65 24 Source: SNL
Slide 25: Fiscal Year 2019 Outlook
Fiscal Year 2019 Outlook Magyar Bancorp
Slide 26: Fiscal Year 2019 Outlook
Fiscal Year 2019 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 a flat yield curve environment 26
Slide 27: Fiscal Year 2019 Outlook
Fiscal Year 2019 Outlook • Continued focus on non - interest expenses • Regulatory impact • Online Deposit Application • Online Loan Application Upgrade • Online Business Banking Upgrade 27
Slide 28: Questions?
Questions? Magyar ancorp