2010 Annual Shareholders Meeting
February 23, 2010
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 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 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.
Fiscal Year 2009 Highlights
Deposit growth of 19.4%
Checking deposits increased 39.1%
Reduced dependency on high cost CDs
Yield and margin expansion
Implemented expense controls and reduced non-
interest expenses as a percentage of average assets
Increased non-interest income as a percentage of
average assets
Remained Well Capitalized
Magyar Management Transition
Elizabeth E. Hance resigned as President and CEO
and Director of Magyar Bank and Magyar Bancorp,
December 23, 2009
John S. Fitzgerald named Acting President and Chief
Executive Officer on December 23, 2009
Previously served as Magyar Bank’s Executive Vice
President/Chief Operating Officer since 2007
Joined Magyar in 2001
Over 24 years experience in Banking Industry
Magyar General Information
Magyar Bank established in 1922
Magyar Bancorp completed its reorganization into
the Mutual Holding Company structure and public
offering in 2006
5 branches in Middlesex and Somerset Counties
Trades on NASDAQ under symbol MGYR
Main business lines/strategy:
Full-service Commercial Bank
Commercial/Residential lending & deposits
Community Banking is our business strategy
Magyar Bank Branch Locations
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
Coming Soon…
Bridgewater
Edison
Fiscal Year 2009 Financial Summary
Total Assets Grew 9.9% in FY2009
Deposits Grew 19.4% in FY2009
$278,090
$325,602
$368,777
$375,560
$441,888
Checking Deposits grew 39.1% in FY2009
$42,715
$51,010
$53,672
$84,677
$87,064
Loans Grew 8.3% in FY2009
$270,726
$352,353
$385,582
$410,728
$444,780
Non-Performing Loans
$1,040
$7,400
$8,048
$20,068
$33,484
$30,270
Other Real Estate Owned
$0
$0
$2,238
$4,666
$5,562
$8,976
Net Interest Margin
Peer Group Source: FDIC UBPR data – Banks with total assets $300M - $1B
Quarterly Net Income (Loss)
12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09
$3.3 million
loan loss
provision
$4.0 million
loan loss
provision
$3.2 million
loan loss
provision
Net Income
$ 537,000
excluding
one-time
items
Magyar remains “Well-Capitalized”
As of December 31, 2009
Expense Reduction Program
Expense Reduction Program
Implemented March 2009 and included
10% staff reduction
Suspension of 401(k) match
Salary freeze
Expected to play a larger role in Fiscal Year 2010
with a full year’s impact
Net operating expense as a percentage of average
assets decreased from 2.63% at year-end 2008 to
2.42% at fiscal year-end 2009
Board Compensation Reduced
Retainer paid to Directors for Magyar Bancorp
suspended
Board size reduced to seven members
Combined, these actions are expected to reduce cash
compensation to Directors by 24% in Fiscal Year
2010
Stock Price Performance
MGYR Stock Price & Volume Chart
Price on
2/18/10
$3.45
Fiscal Year 2010 Strategic Initiatives
Fiscal Year 2010 Objectives
Focus on earnings
Reported Net Income of $21,000 in 1Q2010
Excluding one-time items, earnings were $537,000, $.09
EPS in 1Q2010
Reduce non-performing assets
Non-Performing Loans/Total Loans Receivable dropped to
6.87 % on 12/31/09 from 7.53% on 9/30/09
Focus on residential and commercial lending
opportunities
Fiscal Year 2010 Objectives
Continued growth in core deposits through
community involvement
Reduce Construction Loan portfolio
Continued improvement in Net Interest Margin
Magyar Bancorp Net Interest Margin increased to 3.11%
in 1Q10
