Magyar Bancorp (MGYR) 8-K Regulation FD Disclosure

NASDAQ: MGYR

2008 Shareholders’ Meeting

February 27, 2008

NASDAQ: MGYR

2

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.

NASDAQ: MGYR

3

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.

NASDAQ: MGYR

4

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

Edison1167 Inman Avenue

Opening 2008

Magyar Bank Branch Locations

NASDAQ: MGYR

5

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

NASDAQ: MGYR

6

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

NASDAQ: MGYR

7

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.

NASDAQ: MGYR

8

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.

NASDAQ: MGYR

9

Here is a sampling of the organizations that MagyarBank Charitable Foundation was able to help.

Community Banking Strategy

NASDAQ: MGYR

Financial Highlights

NASDAQ: MGYR

11

Dollars in Thousands

Asset Growth

NASDAQ: MGYR

12

Dollars in Thousands

Consistent Deposit Growth

NASDAQ: MGYR

13

Dollars in Thousands

Focusing on Demand Account Growth

NASDAQ: MGYR

14

Dollars in Thousands

Loan Portfolio Growth

NASDAQ: MGYR

15

Non-Performing Assets/Total Assets

NASDAQ: MGYR

16

26 Fully converted U.S. thrifts with construction and
developmental loans greater than 20%

Construction Concentration Peer Group

NASDAQ: MGYR

17

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

NASDAQ: MGYR

19

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

NASDAQ: MGYR

MGYR Stock Price & Volume ChartSince IPO - January 24, 2006

NASDAQ: MGYR

22

As of February 15, 2008

MGYR Stock Performance - Index Comparison

NASDAQ: MGYR

23

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.

NASDAQ: MGYR

24

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?