Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2022)
25 slides from Magyar Bancorp's shareholder meeting presentation, Feb 16, 2022
Slide 1: 2022 Annual Shareholders Meeting
1 2022 Annual Shareholders Meeting February 16, 2022
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: 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. ▪ As of December 31, 2021, we had $780 million in total assets, $583 mil
Slide 4: Magyar Bank Branch Locations
4 Magyar Bank Branch Locations
Slide 5: Deposits by Branch
Deposits by Branch $214 $122 $102 $47 $26 $51 $47 $250 $130 $108 $46 $29 $46 $48 0 50 100 150 200 250 300 New Brunswick - HQ South Brunswick North Brunswick Branchburg Bridgewater North Edison Edison - Tano Mall Dollars in Millions Total Deposits - 12/31/20 Total Deposits - 12/31/21 5 Totals exclude
Slide 6: 2021 Review
2021 Review ▪ Net Income $6.1 million, 179% increase over 2020 ▪ Completed 2 nd Step July 14, 2021 raising $39.1 million ▪ Dividends ▪ Special Dividend $0.12/share paid in December 2021 ▪ Quarterly Dividend of $.03/share announced January 27, 2022 ▪ $35.3 million in Paycheck Protection Program (PPP)
Slide 7: Financial Highlights
Financial Highlights 2-2 Rots F) Magyar Bank Semply Magnificent for 100 Years
Slide 8: Asset Trend
Asset Trend $300 $400 $500 $600 $700 $800 $900 Dollars in Millions Loans Investments & Cash Other $630 $774 $780 $624 $603 $754 8
Slide 9: Loan Composition
Loan Composition $- $100 $200 $300 $400 $500 $600 $700 9/30/17 9/30/18 9/30/19 9/30/20 9/30/21 12/31/21 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction PPP Commercial/Business HELOC Other 9 $523 $ 474 $512 $594 $611 $583
Slide 10: 2021 Loan Originations
2021 Loan Originations Residential and Home Equity 16% Commercial/Business 49% Construction 7% SBA 28% 10 $159 million in loan originations in 2021
Slide 11: Non-Performing Assets/Assets
Non - Performing Assets/Assets 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 9/30/17 9/30/18 9/30/19 9/30/20 9/30/21 12/31/21 Non-Performing Loans OREO 1.63% 11 2.29% 0.88% 1.52% 2.22% 1.14%
Slide 12: Deposit Composition
Deposit Composition $500 $530 $530 $618 $640 $648 $0 $100 $200 $300 $400 $500 $600 $700 $800 9/30/17 9/30/18 9/30/19 9/30/20 9/30/21 12/31/21 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking Totals 12
Slide 13: Checking Deposit Composition
Checking Deposit Composition $142 $151 $154 $229 $253 $266 $0 $50 $100 $150 $200 $250 $300 $350 $400 9/30/17 9/30/18 9/30/19 9/30/20 9/30/21 12/31/21 Dollars in Millions Non-Interest Checking Interest Checking Total 13
Slide 14: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.23% 3.38% 3.64% 3.54% 3.57% 3.46% 0.69% 0.93% 1.68% 1.48% 1.48% 1.51% 2.81% 2.87% 2.92% 2.99% 3.06% 2.94% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 MGYR Net Interest Margin 10-yr. Treasury Yield Average NIM
Slide 15: Net Income Increased 179% in FY21
Net Income Increased 179% in FY21 $1,423 $2,030 $2,996 $2,190 $6,120 $1,693 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 FY17 FY18 FY19 FY20 FY21 Q122 Dollars in Thousands 15
Slide 16: Earnings Per Share $1.01 in FY21
Earnings Per Share $1.01 in FY21 $0.24 $0.35 $0.51 $0.38 $1.01 $0.25 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 FY17 FY18 FY19 FY20 FY21 Q122 16
Slide 17: Stock Offering/2nd Step Transaction
Stock Offering/2 nd Step Transaction • Completed July 14, 2021 • Issued 3,910,000 new common shares at $10 price • Raised $37.4 million, net of offering expenses • 1.2213 exchange ratio 17
Slide 18: Stockholders Equity
Stockholders Equity 18 $51.4 $54.7 $56.9 $97.6 $98.4 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 9/30/18 9/30/19 9/30/20 9/30/21 12/31/21 (Dollars in Millions) Total Equity $8.82 $9.39 $9.78 $13.76 $13.87 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 9/30/18 9/30/19 9/30/20 9/30/21 12/31/
Slide 19: Stock Price Performance
Stock Price Performance 19
Slide 20: MGYR Stock Performance
(5%) 15% 35% 55% 75% 1/31/21 3/31/21 5/31/21 7/31/21 9/30/21 11/30/21 1/31/22 MGYR Stock Performance 20 KRX 26 % MGYR 67 % Data as if 1/31/2022 Note: MGYR prices from 1/31/2021 to 7/15/2021 were normalized for second step conversion
Slide 21: P/TBV vs Peers
Median: 1.02X 0.76x 0.82x 0.84x 0.86x 0.90x 0.92x 0.97x 0.98x 1.02x 1.06x 1.15x 1.18x 1.21x 1.25x 1.29x 1.43x 1.50x BSPA FCOB NUBC MGYR CARV WMPN FMFP TRBK CMHF NACB LFGP JBTC JFBC RNDB JUVF PRMY FMFG P/TBV vs Peers 21 Source : S&P Capital IQ Financial data as of most recent quarter. Market data as
Slide 22: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook 22
Slide 23: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook • Enhance shareholder value – Quarterly dividend – Evaluate stock buyback • Continued emphasis on community banking strategy to grow the business – Identify quality residential and commercial lending opportunities – Continued deployment of excess liquidity 23
Slide 24: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook • Manage interest rate risk in a rising interest rate environment • IT Cybersecurity • Online deposit account opening product launch Q2 2022 • Continued focus on non - interest expenses 24
Slide 25: Questions?
Questions? 2-2 Rote F) Magyar Bank Simply Magnificent for 100 Years