Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2016)
27 slides from Magyar Bancorp's shareholder meeting presentation, Feb 24, 2016
Slide 1: 2016 Annual Shareholders Meeting
2016 Annual Shareholders Meeting 1 February 24, 2016
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 $122 $106 $103 $45 $28 $35 $135 $108 $110 $48 $34 $40 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 New Brunswick - HQ South Brunswick North Brunswick Branchburg Bridgewater Edison Dollars in Millions Total Deposits - 12/31/14 Total Deposits - 12/31/15 6 Totals exclude br
Slide 7: 2015 Review
2015 Review ▪ Net Income for FY15 increased 56% over FY14 ▪ Non - performing loans declined 40% during FY15 ▪ Non - performing assets declined 19% ▪ Sold twenty OREO properties with a carrying value of $6.4 million ▪ Year End Net Interest Margin held steady at 3.35% in 2015 despite historically low
Slide 8: 2015 Review
2015 Review ▪ Checking deposits as a percentage of total deposits on 9/30/15 were 27.8% ▪ Successful launch of upgraded Web site and Online Banking service with new features including Popmoney and Account to Account transfer ▪ Debit Card incentive campaigns implemented in 2015 increased usage by 14%
Slide 9: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 10: Asset Trend
Asset Trend $524.0 $508.8 $537.7 $530.4 $550.6 $571.5 $470.0 $480.0 $490.0 $500.0 $510.0 $520.0 $530.0 $540.0 $550.0 $560.0 $570.0 $580.0 Dollars in Millions Total Assets 10
Slide 11: Loan Composition
Loan Composition $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 11 $406.8 $419.3 $384.9 $388.9 $399.6 $423.3
Slide 12: Non-Performing Loans
Non - Performing Loans $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 Dollars in Thousands Other HELOC 1-4 Family Residential Commercial/Business Commercial RE Construction $6,600 $5,900 $28,160 $20,074 $15,656 $9,785 12
Slide 13: Other Real Estate Owned
Other Real Estate Owned $16,595 $13,381 $14,756 $17,342 $16,192 $15,680 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 Dollars in Thousands 13
Slide 14: Sale of Other Real Estate Owned (OREO)
Sale of Other Real Estate Owned (OREO) ▪ Fiscal Year 2015 - Magyar Bank sold twenty OREO properties with an aggregate carrying value of $6.4 million for a net gain of $61,000. ▪ Magyar Bank was able to secure the title for 17 other properties totaling $ 4.8 million during Fiscal Year 2015. ▪ 1 st Qu
Slide 15: Non-Performing Assets/Assets
Non - Performing Assets/Assets 5.37% 3.95% 2.91% 2.41% 1.84% 1.16% 3.17% 2.62% 2.74% 2.70% 3.27% 2.74% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 Non-Performing Loans OREO 15 5.11% 3.90% 8.54% 6.57% 5.65% 4.01%
Slide 16: Deposit Composition
Deposit Composition $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking $466.3 $487.1 $424.9 $416.6 $453.3 $448.5 16
Slide 17: Checking Deposit Growth
Checking Deposit Growth $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 Dollars in Thousands Non-Interest Checking Interest Checking 17 $82,161 $134,621
Slide 18: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.38% 3.33% 3.37% 3.38% 3.37% 3.19% 2.51% 2.17% 1.93% 2.34% 2.06% 2.27% 3.17% 3.15% 3.10% 3.05% 3.15% 3.16% 1.70% 1.90% 2.10% 2.30% 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 MGYR Net Interest Margin 10-yr. Treasury Yield Avera
Slide 19: Pre-Tax Quarterly Net Income
Pre - Tax Quarterly Net Income $272 $256 $199 $364 $493 $502 $- $100 $200 $300 $400 $500 $600 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Dollars in Thousands 19
Slide 20: Stockholders Equity: MGYR Remains Well-Capitalized
Stockholders Equity 20 MGYR Remains Well - Capitalized $45.0 $46.9 $44.0 $44.5 $45.0 $45.5 $46.0 $46.5 $47.0 $47.5 9/30/12 9/30/13 9/30/14 9/30/15 12/31/15 (Dollars in Millions) Total Equity $7.75 $8.05 $7.60 $7.65 $7.70 $7.75 $7.80 $7.85 $7.90 $7.95 $8.00 $8.05 $8.10 9/30/12 9/30/13 9/30/14 9/30/15
Slide 21: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 22: MGYR Stock Performance – Year
MGYR Stock Performance – 1 Year (5.00) 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Percentage Change MGYR (18.34%) SNL U.S. Thrift (1.61%) SNL Thrift MHCs (16.43%) MGYR Stock Price 2/17/2015 - $8.45 2/17/2016 - $10.00 22
Slide 23: MGYR Stock Performance – Three Years
MGYR Stock Performance – 3 Year (20.00) 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 Percentage Change MGYR (100.00%) SNL U.S. Thrift (26.58%) SNL Thrift MHCs (63.45%) MGYR Stock Price 2/15/2013 - $5.00 2/17/2016 - $10.00 23
Slide 24: Fiscal Year 2016 Outlook
Fiscal Year 2016 Outlook Magyar Bancorp
Slide 25: Fiscal Year 2016 Outlook
Fiscal Year 2016 Outlook • Focus on residential and commercial lending • Manage interest rate risk in an increasing rate environment • Deposit Strategy – focus remains on relationship banking and our community banking strategy • Continued focus on non - interest expenses 25
Slide 26: Fiscal Year 2016 Outlook
Fiscal Year 2016 Outlook • Continued reduction in non - performing assets • These strategies will result in continued income growth and enhanced shareholder value • Regulatory Impact 26
Slide 27: Questions?
Questions? Magyar Bancorp