Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2010)
24 slides from Magyar Bancorp's shareholder meeting presentation, Feb 23, 2010
Slide 1: 2010 Annual Shareholders Meeting
2010 Annual Shareholders Meeting February 23, 2010
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: Fiscal Year 2009 Highlights
Fiscal Year 2009 Highlights Deposit growth of 19.4% Checking deposits increased 39.1 % Reduced dependency on high cost CDs Yield and margin expansion Implemented expense controls and reduced non- interest expenses as a percentage of average assets Increased non-interest income as a percentage of ave
Slide 4: Magyar Management Transition
Magyar Management Transition Elizabeth E. Hance resigned as President and CEO and Director of Magyar Bank and Magyar Bancorp, December 23, 2009 John S. Fitzgerald named Acting President and Chief Executive Officer on December 23, 2009 Previously served as Magyar Bank’s Executive Vice President/Chief
Slide 5: Magyar General Information
Magyar General Information Magyar Bank established in 1922 Magyar Bancorp completed its reorganization into the Mutual Holding Company structure and public offering in 2006 5 branches in Middlesex and Somerset Counties Trades on NASDAQ under symbol MGYR Main business lines/strategy : Full-service Co
Slide 6: 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 Soon… Bridgewater Ediso
Slide 7: Fiscal Year 2009 Financial Summary
Fiscal Year 2009 Financial Summary
Slide 8: Total Assets Grew 9.9% in FY2009
Total Assets Grew 9.9% in FY2009
Slide 9: Deposits Grew 19.4% in FY2009
Deposits Grew 19.4% in FY2009 $278,090 $325,602 $368,777 $375,560 $441,888
Slide 10: Checking Deposits grew 39.1% in FY2009
Checking Deposits grew 39.1% in FY2009 $42,715 $51,010 $53,672 $84,677 $87,064
Slide 11: Loans Grew 8.3% in FY2009
Loans Grew 8.3% in FY2009 $270,726 $352,353 $385,582 $410,728 $444,780
Slide 12: Non-Performing Loans
Non-Performing Loans $1,040 $7,400 $8,048 $20,068 $33,484 $30,270
Slide 13: Other Real Estate Owned
Other Real Estate Owned $0 $0 $2,238 $4,666 $5,562 $8,976
Slide 14: Net Interest Margin
Net Interest Margin Peer Group Source: FDIC UBPR data – Banks with total assets $300M - $1B
Slide 15: Quarterly Net Income (Loss)
Quarterly Net Income (Loss) 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 $3.3 million loan loss provision $4.0 million loan loss provision $3.2 million loan loss provision Net Income $ 537,000 excluding one-time items
Slide 16: Magyar remains “Well-Capitalized”
Magyar remains “Well-Capitalized” As of December 31, 2009
Slide 17: Expense Reduction Program
Expense Reduction Program
Slide 18: Expense Reduction Program
Expense Reduction Program Implemented March 2009 and included 10% staff reduction Suspension of 401(k) match Salary freeze Expected to play a larger role in Fiscal Year 2010 with a full year’s impact Net operating expense as a percentage of average assets decreased from 2.63% at year-end 2008 to 2.4
Slide 19: Board Compensation Reduced
Board Compensation Reduced Retainer paid to Directors for Magyar Bancorp suspended Board size reduced to seven members Combined, these actions are expected to reduce cash compensation to Directors by 24% in Fiscal Year
Slide 20: Stock Price Performance
Stock Price Performance
Slide 21: MGYR Stock Price & Volume Chart
MGYR Stock Price & Volume Chart Price on 2/18/10 $3.45
Slide 22: Fiscal Year 2010 Strategic Initiatives
Fiscal Year 2010 Strategic Initiatives
Slide 23: Fiscal Year 2010 Objectives
Fiscal Year 2010 Objectives Focus on earnings Reported Net Income of $21,000 in 1Q2010 Excluding one-time items, earnings were $537,000, $.09 EPS in 1Q2010 Reduce non-performing assets Non-Performing Loans/Total Loans Receivable dropped to 6.87 % on 12/31/09 from 7.53% on 9/30/09 Focus on residentia
Slide 24: Fiscal Year 2010 Objectives
Fiscal Year 2010 Objectives Continued growth in core deposits through community involvement Reduce Construction Loan portfolio Continued improvement in Net Interest Margin Magyar Bancorp Net Interest Margin increased to 3.11% in 1Q10