Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2014)
27 slides from Magyar Bancorp's shareholder meeting presentation, Feb 12, 2014
Slide 1: 2014 Annual Shareholders Meeting
2014 Annual Shareholders Meeting 1 February 13, 2014
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, MHC, trades on NASDAQ under the symbol MGYR. Currently 44.9% is owned by public shareholders. ▪ As of September 30, 20
Slide 5: Magyar Bank Branch Locations
5 Magyar Bank Branch Locations Branchburg Bridgewater New Brunswick - HQ North Brunswick Edison South Brunswick
Slide 6: Market Demographic Summary
Market Demographic Summary 6 County Total Population 2012 (Actual) 2012 Median Age Annualized 5 - year Projected Population Change (%) Median HH Income 2012 ($) Annualized 5 - year Projected HH Income Change (%) Middlesex 815,917 37.3 0.41 77,407 2.49 Somerset 326,491 40.5 0.43 100,602 1.37 Aggregat
Slide 7: Deposits by Branch
Deposits by Branch $132.0 $109.2 $97.9 $40.9 $26.2 $29.6 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 New Brunswick - HQ South Brunswick North Brunswick Branchburg Bridgewater (Opened June 2010) Edison (Opened 2011) Dollars in Millions 7 as of 12/31/13
Slide 8: 2013 Review
2013 Review ▪ Non - performing loans declined 22% ▪ Non - performing assets declined 9% ▪ Sold twelve properties with a carrying value of $2.9 million in OREO property ▪ Year End Net Interest Margin increased to 3.27% in 2013 compared to 3.21% in 2012 ▪ MGYR stock price up 50.8% from 2013 shareholde
Slide 9: 2013 Review, (cont'd.)
2013 Review, (cont’d.) ▪ Checking deposits as a percentage of total deposits increased to 30.6% as of 9/30/13 from 22.9% as of 9/30/12 ▪ Certificates of deposit (including IRAs) as a percentage of total deposits declined to 33.9% as of 9/30/13 from 38.0% on 9/30/12. ▪ Non - Interest Expenses decline
Slide 10: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 11: Asset Trend
Asset Trend $565.2 $537.9 $524.0 $508.8 $537.7 $536.6 $480.0 $490.0 $500.0 $510.0 $520.0 $530.0 $540.0 $550.0 $560.0 $570.0 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Dollars in Millions Total Assets 11
Slide 12: Loan Composition
Loan Composition $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 12 $444.8 $408.5 $384.9 $388.9 $399.6 $408.0
Slide 13: Non-Performing Loans
Non - Performing Loans $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Dollars in Thousands Other Home Equity Lines 1-4 Family Residential Commercial Commercial RE Construction $28,000 $33,484 $28,160 $20,074 $15,656 $15,144 13
Slide 14: Other Real Estate Owned
Other Real Estate Owned $5,562 $12,655 $16,595 $13,381 $14,756 $15,057 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Dollars in Thousands 14
Slide 15: Sale of Other Real Estate Owned (OREO)
Sale of Other Real Estate Owned (OREO) ▪ Fiscal Year 2013 - Magyar Bank sold twelve REO properties with an aggregate carrying value of $2.9 million for a net loss of $78,000. ▪ Magyar Bank was able to secure the title for nine other properties totaling $4.3 million during Fiscal Year 2013 . ▪ 1 st Q
Slide 16: Non-Performing Assets/Assets
Non - Performing Assets/Assets 5.93% 5.21% 5.37% 3.95% 2.91% 2.82% 0.98% 2.35% 3.17% 2.62% 2.74% 2.81% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Non-Performing Loans OREO 16 6.91% 7.56% 8.54% 6.57% 5.65% 5.63%
Slide 17: Deposit Composition
Deposit Composition $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Dollars in Millions CDs Savings Accounts Money Market Accounts Checking $448.5 $428.0 $424.9 $416.6 $453.3 $440.7 17 CDs as percentage of deposits declined fro
Slide 18: Checking Deposit Growth
Checking Deposit Growth $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 12/31/13 Dollars in Thousands Non-Interest Checking Interest Checking 18 $84,677 $88,771 $82,161 $95,209 $138,845 $129,769
Slide 19: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.35% 3.29% 3.30% 3.30% 3.27% 3.33% 3.24% 3.26% 3.28% 3.30% 3.32% 3.34% 3.36% 3.38% 3.40% 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 19
Slide 20: Quarterly Net Interest Margin – MHC Peer
3.18% 3.12% 3.16% 3.11% 3.08% 3.17% 3.35% 3.29% 3.30% 3.30% 3.27% 3.33% 2.90% 2.95% 3.00% 3.05% 3.10% 3.15% 3.20% 3.25% 3.30% 3.35% 3.40% 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 Average - Peer Group Magyar Quarterly Net Interest Margin – MHC Peer 20 MHCs in NJ, NY, CT, PA, DE with Assets $
Slide 21: Pre-Tax Quarterly Net Income (Loss)
Pre - Tax Quarterly Net Income (Loss) $384 $414 $(618) $270 $217 $174 $(700) $(600) $(500) $(400) $(300) $(200) $(100) $- $100 $200 $300 $400 $500 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 Dollars in Thousands 21
Slide 22: Stockholders Equity: MGYR Remains Well-Capitalized
Stockholders Equity 22 MGYR Remains Well - Capitalized
Slide 23: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 24: MGYR Stock Performance
MGYR Stock Performance (60.00) (40.00) (20.00) 0.00 20.00 40.00 60.00 80.00 100.00 120.00 12/23/09 9/19/10 6/16/11 3/12/12 12/7/12 9/3/13 Percentage Change MGYR SNL U.S. Thrift SNL U.S. Thrift MHCs 24 MGYR Stock Price 12/23/09 - $3.90 2/10/14 - $7.81 100.26% 37.39% 14.40 % 2/10/14
Slide 25: Fiscal Year 2014 Outlook
Fiscal Year 2014 Outlook Magyar Bancorp
Slide 26: Fiscal Year 2014
Fiscal Year 2014 • Growth in residential and commercial lending • Continued reduction in non - performing assets • Continued focus on non - interest expenses • These strategies will further increase net income and correspond to enhanced shareholder value • Dodd - Frank Impact 26
Slide 27: Questions?
Questions? Magyar Bancorp