Magyar Bancorp, Inc. · NASDAQ:MGYR
Magyar Bancorp — Shareholder Meeting (February 2017)
29 slides from Magyar Bancorp's shareholder meeting presentation, Feb 8, 2017
Slide 1: 2017 Annual Shareholders Meeting
2017 Annual Shareholders Meeting 1 February 9, 2017
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 $135 $108 $110 $48 $34 $40 $142 $106 $113 $45 $39 $41 $- $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 - 12/31/15 Total Deposits - 12/31/16 6 Totals exclude br
Slide 7: 2016 Review
2016 Review ▪ Net Income for FY16 increased 22% over FY15 ▪ Non - performing assets declined 26% ▪ Checking deposits grew 10.9% during FY16, and were 29% of total deposits on 9/30/16 7
Slide 8: 2016 Review
2016 Review ▪ Sold twenty OREO properties with a carrying value of $4.7 million ▪ OREO portfolio declined 25% ▪ Increased loans by 8% during 2016 8
Slide 9: Financial Highlights
Financial Highlights Magyar Bancorp
Slide 10: Asset Trend
Asset Trend $508.8 $537.7 $530.4 $550.6 $584.3 $587.7 $460.0 $480.0 $500.0 $520.0 $540.0 $560.0 $580.0 $600.0 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 $500.0 9/30/12 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 Dollars in Millions 1-4 Family Residential Commercial Real Estate Construction Commercial/Business HELOC Other 11 $406.8 $457.9 $464.7 $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 9/30/12 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 Dollars in Thousands HELOC 1-4 Family Residential Commercial/Business Commercial RE Construction $4,207 $5,897 $4,15 0 $20,074 $15,656 $9,785 12
Slide 13: Other Real Estate Owned
Other Real Estate Owned $13,381 $14,756 $17,342 $16,192 $12,082 $11,962 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 9/30/12 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 Dollars in Thousands 13
Slide 14: Sale of Other Real Estate Owned (OREO)
Sale of Other Real Estate Owned (OREO) ▪ Fiscal Year 2016 - Magyar Bank sold twenty OREO properties with an aggregate carrying value of $4.7 million for a net loss of $101,000. ▪ Magyar Bank was able to secure the title for 4 other properties totaling $1.8 million during Fiscal Year 2016. ▪ Magyar B
Slide 15: Non-Performing Assets/Assets
Non - Performing Assets/Assets 3.95% 2.91% 1.84% 1.07% 0.72% 0.71% 2.62% 2.74% 3.27% 2.94% 2.07% 2.03% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 9/30/12 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 Non-Performing Loans OREO 15 5.11% 2.79% 2.74% 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 9/30/12 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 Dollars in Millions CDs (inc. IRA) Savings Accounts Money Market Accounts Checking $466 $493 $500 $417 $453 $448 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 9/30/12 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 Dollars in Thousands Non-Interest Checking Interest Checking 17 $95,209 $143,507
Slide 18: Quarterly Net Interest Margin
Quarterly Net Interest Margin 3.37% 3.19% 3.20% 3.37% 3.32% 3.30% 2.06% 2.27% 1.78% 1.49% 1.60% 2.45% 3.16% 3.19% 3.13% 3.05% 3.04% 3.19% 1.40% 1.90% 2.40% 2.90% 3.40% 9/30/15 12/31/15 3/31/16 6/30/16 9/30/16 12/31/16 MGYR Net Interest Margin 10-yr. Treasury Yield Average - MHC Peer Group 18 MHC Pee
Slide 19: Pre-Tax Quarterly Net Income
Pre - Tax Quarterly Net Income $174 $53 $265 $272 $256 $199 $364 $493 $502 $281 $401 $571 $- $100 $200 $300 $400 $500 $600 Q1 Q2 Q3 Q4 Dollars in Thousands FY 2014 FY 2015 FY 2016 19
Slide 20: Pre-Tax Annual Net Income
Pre - Tax Annual Net Income $283 $759 $1,310 $1,755 $0.05 $0.10 $0.15 $0.19 $- $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 9/30/13 9/30/14 9/30/15 9/30/16 EPS Dollars in Thousands Net Income EPS 20
Slide 21: Stockholders Equity: MGYR Remains Well-Capitalized
Stockholders Equity 21 MGYR Remains Well - Capitalized $45.3 $47.9 $44.0 $44.5 $45.0 $45.5 $46.0 $46.5 $47.0 $47.5 $48.0 $48.5 9/30/13 9/30/14 9/30/15 9/30/16 12/31/16 (Dollars in Millions) Total Equity $7.80 $8.23 $7.50 $7.60 $7.70 $7.80 $7.90 $8.00 $8.10 $8.20 $8.30 9/30/13 9/30/14 9/30/15 9/30/16
Slide 22: Stock Price Performance
Stock Price Performance Magyar Bancorp
Slide 23: MGYR Stock Performance
MGYR Stock Performance (5.00) 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 Percentage Change MGYR (30.82%) SNL U.S. Thrift (25.33%) SNL U.S. Thrift MHCs (8.75)% MGYR Stock Price 2/24/2016 - $9.81 1/31/2017 - $12.84 23
Slide 24: MGYR Stock Performance – Three Year
MGYR Stock Performance – 3 Year (10.00) 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 Percentage Change MGYR (60.88%) SNL U.S. Thrift (36.95%) SNL U.S. Thrift MHCs (47.43%) MGYR Stock Price 1/31/2014 - $7.98 1/31/2017 - $12.84 24
Slide 25: MGYR Stock Performance – Five Year
MGYR Stock Performance – 5 Year (50.00) 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Percentage Change MGYR (256.63%) SNL U.S. Thrift (88.82%) SNL U.S. Thrift MHCs (118.29%) MGYR Stock Price 1/31/2012 - $3.60 1/31/2017 - $12.84 25 Source: SNL
Slide 26: Fiscal Year 2017 Outlook
Fiscal Year 2017 Outlook Magyar Bancorp
Slide 27: Fiscal Year 2017 Outlook
Fiscal Year 2017 Outlook • Continued improvement in earnings and EPS • Deposit Strategy – emphasize relationship banking and our community banking strategy • Identify quality residential and commercial lending opportunities • Manage interest rate risk in an increasing rate environment 27
Slide 28: Fiscal Year 2017 Outlook
Fiscal Year 2017 Outlook • Continued focus on non - interest expenses • Further reduction in non - performing assets • Implement Mobile Banking app • Launch Debit Card fraud protection product • Regulatory impact under new Administration 28
Slide 29: Questions?
Questions? Magyar ancorp