Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2021)
27 slides from Magyar Bancorp's shareholder meeting presentation, Feb 18, 2021
Slide 1: 2021 Annual Shareholders Meeting
2021 Annual Shareholders Meeting 1 February 18 2021
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 $166 $115 $103 $43 $25 $42 $43 $214 $122 $102 $47 $26 $51 $47 0 50 100 150 200 250 New Brunswick - HQ South Brunswick North Brunswick Branchburg Bridgewater North Edison Edison - Tano Mall Dollars in Millions Total Deposits - 12/31/19 Total Deposits - 12/31/20 6 Totals exclude bro
Slide 7: 2020 Review
2020 Review ▪ Net Income $2.2 million despite low interest rate environment and increased loan loss provisions ▪ Net interest income increased $1.0 million ▪ COVID Response ▪ $56 million in Paycheck Protection Program (PPP) loans to over 300 customers ▪ $100,000 in grants distributed to local non -
Slide 8: 2020 Review: COVID Response (cont'd)
2020 Review ▪ COVID Response (cont’d) ▪ Through December 31, 2020, modified 284 loans aggregating $150.9 million, for the deferral of principal and/or interest payments. ▪ As of December 31, 2020, 258 loans aggregating $134.9 million had resumed making their contractual loan payments ▪ 15 loans tota
Slide 9: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 10: Asset Trend
Asset Trend $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 Dollars in Millions Loans Investments & Cash Other $630 $742 $584 $624 $603 $754 10
Slide 11: Loan Composition
Loan Composition $- $100 $200 $300 $400 $500 $600 $700 9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 11 $523 $ 474 $512 $607 $611 $ 458
Slide 12: 2020 Loan Originations
2020 Loan Originations Residential and Home Equity 22% Commercial/Business 38% Construction 8% SBA 32% 12 $187 million in loan originations in 2020
Slide 13: Non-Performing Loans
Non - Performing Loans - 2,000 4,000 6,000 8,000 10,000 12,000 9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 Dollars in Thousands Other HELOC 1-4 Family Residential Commercial/Business Commercial RE Construction 13 $6,894 $10,041 $4,207 $2,358 $906 $9,732
Slide 14: Other Real Estate Owned
Other Real Estate Owned $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 Dollars in Millions 1-4 Family Residential Commercial RE Land $7.5 $2.6 $2.1 $12.1 $11.1 $8.6 14
Slide 15: Sale of Other Real Estate Owned
Sale of Other Real Estate Owned ▪ Fiscal Year 2020 - Magyar Bank sold seven OREO properties with an aggregate carrying value of $4.6 million for a loss of $129,000. ▪ Additional sale and valuation allowance reduced OREO to $2.1 million at December 31, 2020 ▪ $1.2 million under contract of sale at De
Slide 16: Non-Performing Assets/Assets
Non - Performing Assets/Assets 0.72% 0.39% 0.14% 1.09% 1.29% 1.35% 2.07% 1.83% 1.38% 1.20% 0.34% 0.28% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 Non-Performing Loans OREO 1.63% 16 2.29% 2.79% 1.52% 2.22% 1.63%
Slide 17: Deposit Composition
Deposit Composition $0 $100 $200 $300 $400 $500 $600 $700 9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking $612 $493 $515 $530 $530 $618 17
Slide 18: Checking Deposit Composition
Checking Deposit Composition $0 $50 $100 $150 $200 $250 9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 Dollars in Millions Non-Interest Checking Interest Checking $155 $142 $144 $237 $229 $151 18
Slide 19: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.45% 3.44% 3.33% 3.26% 3.23% 3.38% 1.68% 1.92% 0.70% 0.66% 0.69% 0.93% 3.06% 3.00% 3.00% 2.81% 2.80% 2.85% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 MGYR Net Interest Margin 10-yr. Treasury Yield Average NIM
Slide 20: Net Income
Net Income $1,091 $1,423 $2,030 $2,996 $2,190 $1,337 $0.19 $0.24 $0.35 $0.51 $0.38 $0.23 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 FY16 FY17 FY18 FY19 FY20 Q121 EPS Dollars in Thousands Net Income Earnings Per Share 20
Slide 21: Stockholders Equity
Stockholders Equity 21 $49.5 $51.4 $54.7 $56.9 $58.2 $44.0 $46.0 $48.0 $50.0 $52.0 $54.0 $56.0 $58.0 $60.0 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 (Dollars in Millions) Total Equity $8.50 $8.82 $9.39 $9.78 $10.02 $7.50 $8.00 $8.50 $9.00 $9.50 $10.00 $10.50 9/30/17 9/30/18 9/30/19 9/30/20 12/31/20 B
Slide 22: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 23: MGYR Stock Performance – Year
MGYR Stock Performance – 5 Year (40.00) (30.00) (20.00) (10.00) 0.00 10.00 20.00 30.00 40.00 50.00 2/2/2016 2/2/2017 2/2/2018 2/2/2019 2/2/2020 Percentage Change MGYR-Share Price (12.82%) S&P 400 Thrifts & Mortgage Finance (Industry)-Index Value (-12.02%) 23 MGYR Stock Price 1/31/2016 - $9.80 1/31/2
Slide 24: Fiscal Year 2021 Outlook
Fiscal Year 2021 Outlook Magyar Bancorp
Slide 25: Fiscal Year 2021 Outlook
Fiscal Year 2021 Outlook • PPP Round 2 – Fee income • Forgiveness of PPP Round 1 • Continued focus on non - interest expenses • IT Cybersecurity – maintain high level of awareness, protect against fraud 25
Slide 26: Fiscal Year 2021 Outlook
Fiscal Year 2021 Outlook • Continued emphasis on Community Banking Strategy to grow the business – New relationships acquired through PPP loans • Identify quality residential and commercial lending opportunities • Manage interest rate risk in a low interest rate environment 26
Slide 27: Questions?
Questions? Magya - Bancorp