EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
NASDAQ: MGYR
2008 Shareholders’ Meeting
February 27, 2008
 
 
 
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FORWARD LOOKING STATEMENTS
Certain statements contained herein about future events 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 identified by reference to a future period or periods, or by the use of forward-
looking terminology, such as “may,” “will,” “believe,” “expect,” or similar terms or variations on those terms, or the
negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but
not limited to, those risks previously disclosed in the Company’s filings with the SEC, general economic conditions,
changes in interest rates, regulatory considerations, competition, technological developments, retention and
recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services, and
with respect to the loans extended by the Bank to Solomon Dwek and real estate owned, the following: risks related
to the economic environment in the market areas in which the Bank operates, particularly with respect to the real
estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and
the risk that significant expense may be incurred by the Company in connection with the resolution of these loans.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which
speak only as of the date made. The Company does not undertake and specifically declines any obligation to
publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
 
 
 
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Magyar Bancorp Overview
• Founded in 1922.
• On January 23, 2006, Magyar Bancorp completed its IPO
 raising $26.2 mil. It currently has 45.7% of its outstanding
 shares owned by public shareholders, including the
 MagyarBank Charitable Foundation. The remainder is
 owned by Magyar Bancorp, MHC.
• Magyar operates five branch locations throughout
 Middlesex and Somerset Counties in New Brunswick (2),
 North Brunswick, South Brunswick and Branchburg.
 
 
 
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Branchburg
1000 Route 202 South
New Brunswick
(Corporate Headquarters)
400 Somerset Street
North Brunswick
582 Milltown Road
South Brunswick
3050 Highway 27
Existing Locations
New Brunswick
(Inside Child Health Institute)
93 French Street
Edison
1167 Inman Avenue
Opening 2008
Magyar Bank Branch Locations
 
 
 
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2007 Year in Review
• Business Plan Continued to Spur Growth in 2007
 – 9.0% increase in total assets
 – 9.5% increase in total loans
 – 13.3% increase in total deposits
• 2 New Branch Locations
 – Branchburg (September 2006)
 – Child Health Institute - New Brunswick (March 2007)
• Remote Deposit Implementation
• Online Loan Application for Home Equity Loans/Lines
 
 
 
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2007 Year in Review
• Magyar Bank recognized for outstanding service to the
 community
 – FDIC CRA Rating—”Outstanding”
 – America’s Community Bankers - Community Service
 Award
 – NJ League of Community Bankers - Community Service
 Award
 – Employers Association of NJ - Exceptional Employer
 Award
 
 
 
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Community Banking Strategy
We attribute the majority of our growth to our commitment to our
 community and our focus on customer service.
• Building our brand recognition through participation in local
 community events.
• Strengthening our relationships with existing customers by
 offering new products and services to help meet their
 growing needs.
 – Customer recognition program produced an increase of 17.7% in program’s
 deposits since November 2006.
• Leveraging our affiliation with non-profit organizations to
 create potential business opportunities.
 
 
 
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Community Banking Strategy
• We are proud that our MagyarBank Charitable Foundation
 has been able to grant:
 – $141,260 since its inception in 2006; and
 – $66,120 in 2007 alone.
 
 
 
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Here is a sampling of the organizations that MagyarBank Charitable Foundation was able to help.
Community Banking Strategy
 
 
 
NASDAQ: MGYR
Financial Highlights
 
 
 
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Dollars in Thousands
Asset Growth
 
 
 
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Dollars in Thousands
Consistent Deposit Growth
 
 
 
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Dollars in Thousands
Focusing on Demand Account Growth
 
 
 
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Dollars in Thousands
Loan Portfolio Growth
 
 
 
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Non-Performing Assets/Total Assets
 
 
 
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26 Fully converted U.S. thrifts with construction and
developmental loans greater than 20%
Construction Concentration Peer Group
 
 
 
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Update on Credit Issues…
• Solomon Dwek Relationship
 – $4.2 million in Rumson, NJ - Bank is in the process of improving
 property and seeking buyers which is currently held in OREO.
 – $745,000 in Farmingdale, NJ - Full repayment received
 December 31, 2007
• Kara Homes Relationship
 – Originally $5.1 million with four developments. We have resolved
 3 of the 4 projects.
 – We are left with only one development of nine lots in Little Egg
 Township, NJ held in OREO for $955,000.
• Commercial Real Estate Loan - $1.9 million
 – In the process of foreclosure
 
 
 
Peer Group Source: FDIC UBPR data - Banks with total assets $300M - $1B
Maintaining a Solid Net Interest Margin
 
 
 
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Dollars in thousands except per share data.
(1) Magyar completed its IPO on January 23, 2006 raising $26.2 million
(2) Reflects a one-time charge for funding and organizing the MagyarBank Charitable Foundation of $1,547,000
Equity and Earnings Performance
 
 
 
NASDAQ: MGYR
Stock Price Performance
&
Strategic Initiatives in 2008
 
 
 
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MGYR Stock Price & Volume Chart
Since IPO - January 24, 2006
 
 
 
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As of February 15, 2008
MGYR Stock Performance - Index Comparison
 
 
 
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Capital Management Strategy
• 5% Buyback of 130,927 shares, announced April 2007
 – Completed November 2007
• Second 5% buyback of 129,924 shares, announced
 November 2007
 – 11,800 shares purchased through February 22, 2008.
 
 
 
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Looking Ahead to 2008
• Continue our Community Banking Growth Strategy
• Reduce Non-Performing Assets
• New Branch Location
 – North Edison - Opening Calendar Year 2008
• Managing the Balance Sheet to Maximize Net Interest
 Margin
 – Continued focus on core deposit growth
• Increase Non-Interest Income
 – Implementation of Financial Services Program
 – Non-deposit investment products (Insurance, annuities, mutual funds)
• Focusing on Building Shareholder Value through Managing
 Capital and Effectively Deploying our Community Banking
 Strategy
 
 
 
NASDAQ: MGYR
Any Questions?