MGYR Magyar Bancorp Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): February 20, 2025

 

Magyar Bancorp, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware	000-51726	20-4154978
(State or Other Jurisdiction)	(Commission File No.)	(I.R.S. Employer
of Incorporation)		Identification No.)
400 Somerset Street, New Brunswick, New Jersey		08901
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant's telephone number, including area code: (732) 342-7600

 

Not Applicable

(Former name or former address, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share		MGYR		The NASDAQ Stock Market, LLC

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 7.01

Regulation FD Disclosure

 

Beginning on February 20, 2025, in connection with its annual meeting of stockholders, Magyar Bancorp, Inc. (the “Company”) intends to make available to its stockholders, investors and others, and to post on its Web site, a written presentation regarding the Company’s 2024 financial performance and ongoing community banking strategy.

 

A copy of the stockholder presentation is attached as Exhibit 99.1 to this report.

 

Item 9.01.

Financial Statements and Exhibits

 

(a)

Financial Statements of businesses acquired. Not Applicable.

 

(b)

Pro forma financial information. Not Applicable.

 

(c)

Shell Company Transactions. Not Applicable

 

(d)

Exhibits.

 

99.1

Stockholder Presentation February 20, 2025.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

	MAGYAR BANCORP, INC.
DATE: February 20, 2025	By:	/s/ John S. Fitzgerald
		John S. Fitzgerald
		President and Chief Executive Officer

 

2025 Annual Shareholders Meeting February 20, 2025

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 non-performing 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. 2

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. ▪ As of December 31, 2024, we had $1 billion in total assets, $805 million in loans, $849 million in deposits and $112 million in stockholders’ equity. ▪ Magyar Bank conducts its business from its main office in New Brunswick and six additional branch offices located in North Brunswick, South Brunswick, Branchburg, Martinsville and two in Edison, New Jersey. 3

4 Magyar Bank Branch Locations Martinsville, NJ North Brunswick, NJ South Brunswick, NJ New Brunswick, NJ (HQ) Inman Ave, Edison, NJ TanoMall, Edison, NJ Branchburg, NJ

Deposits by Branch Totals exclude brokered deposits. $392 $121 $96 $35 $25 $28 $57 $346 $127 $103 $42 $73 $42 $86 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Total Deposits By Branch Total Deposits - 12/31/23 Total Deposits - 12/31/24 *Bridgewater office closed November 1, 2024. Deposits were transferred to Martinsville office.

2024 Highlights ▪ Deposits increased by 5.5% ▪ 12% Loan Growth ▪ Earnings Per Share increased to $1.23 from $1.20 ▪ Increased Dividend Payments ▪ $0.26 per share paid in 2024 compared to $.20 paid in 2023 ▪ Special dividend $0.04 per share paid in December 2024 ▪ Increased shares repurchased to 195,906 in 2024 as part of buyback program ▪ Opened new location in Martinsville October 2024 6

2024 Highlights ▪ Strong Liquidity ▪ Loan-to-Deposit ratio 95% as of 12/31/24 ▪ Recognized as 5-star Bank by Bauer Financial ▪ This is the highest rating given by Bauer ▪ Named to 2024 KBW Honor Roll ▪ Recognizes high performing banks with the strongest and/or most consistent earnings growth over the past decade 7

Financial Highlights 8

Asset Trend $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 D o l l a r s i n M i l l i o n s Loans Investments & Cash Other $1,008 $774 $907 $799 $754 9 $952

Loan Composition $- $100 $200 $300 $400 $500 $600 $700 $800 $900 9/30/20 9/30/21 9/30/22 9/30/23 9/30/24 12/31/24 D o l l a r s i n M i l l i o n s 1-4 Family Residential Commercial Real Estate (CRE) Construction Commercial/Business Home Equity Line of Credit Other 10 $780 $629 $805 $594 $611 $698

Additional CRE Detail 29.3% 9.6% 11.1% 10.7% 5.4% 15.2% 18.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 P e r c e n t a g e o f C R E L o a n s D o l l a r s i n T h o u s a n d s Owner Occupied - 38.1% Non-Owner Occupied - 61.9% % of CRE Loans 11 CRE Ratio –280% As of 12/31/24

FY 2024 Loan Origination Residential/Home Equity 25% Consumer 0% Construction 16% SBA 7% Commercial RE 48% Commercial 4% 12 $161 MillionTotal

Non-Performing Assets/Assets 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 9/30/20 9/30/21 9/30/22 9/30/23 9/30/24 12/31/24 Non-Performing Loans Other Real Estate Owned 1.63% 13 0.29% 0.60% 0.39% 1.14% 0.42%

Deposit Composition $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 9/30/20 9/30/21 9/30/22 9/30/23 9/30/24 12/31/24 D o l l a r s i n M i l l i o n s CDs (inc. IRA) Savings Accounts Money Market Accounts Checking 14 $618 $640 $668 $755 $797 $849

Higher Interest Rates Led to Higher Funding Costs 4.44% 4.61% 4.91% 5.10% 5.26% 5.35% 5.50% 5.60% 5.59% 1.27% 1.51% 2.19% 2.55% 2.80% 2.98% 3.24% 3.29% 3.05% 4.50% 5.00% 5.50% 5.50% 5.50% 5.50% 5.50% 5.00% 4.50% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% Yield on interest earning assets Cost of interest bearing funding Federal Funds Rate 15

Quarterly Net Interest Margin 3.36% 3.29% 3.17% 3.02% 3.08% 3.22% 3.09% 3.10% 3.06% 3.09% 3.09% 3.12% 3.00% 3.05% 3.10% 3.15% 3.20% 3.25% 3.30% 3.35% 3.40% 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 MGYR Net Interest Margin Average NIM - Peer Group 16 Peer Group –Mid Atlantic Banks with Assets $800M -$1.2B Source: S&P Capital IQ

Net Income 17 $2,190 $6,120 $7,919 $7,709 $7,783 $2,085 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 FY20 FY21 FY22 FY23 FY24 Q125 D o l l a r s i n T h o u s a n d s

Earnings Per Share $0.38 $1.01 $1.17 $1.20 $1.23 $0.34 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000 6,500,000 7,000,000 7,500,000 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 FY20 FY21 FY22 FY23 FY24 Q125 N u m b e r o f S h a r e s E a r n i n g s P e r S h a r e Earnings Per Share Shares Outstanding 18

Book Value Per Share 19 $13.76 $14.60 $15.70 $16.98 $17.23 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 9/30/21 9/30/22 9/30/23 9/30/24 12/31/24

Stock Price Performance 20

(15%) (10%) (5%) 0% 5% 10% 15% 20% 25% 30% 35% 40% 1/31/24 3/31/24 5/31/24 7/31/24 9/30/24 11/30/24 1/31/25 MGYR LTM Stock Performance 21 KRX MGYR Stock price on 1/31/2025 -$14.34 24.37% 24.04%

0.40x 0.67x 0.68x 0.70x 0.83x 0.86x 0.87x 0.90x 0.92x 0.93x 0.93x 1.07x 1.21x 1.23x PNBK FBIP SRBK BSPA MGYR LFGP KTHN BVFL HARL DIMC CMHF AMBK TYCB HONT Median: 0.88X P/TBV vs Peers 22 Source: S&P Global Market Intelligence as of 1/31/25 MGYR stock price on 1/31/2025 -$14.34 Note: Peer defined as banks and thrifts in the Mid-Atlantic or Northeast with assets between $850mm and $1.2bn Excludes merger targets and mutual holding companies

6.00 8.00 10.00 12.00 14.00 16.00 25 50 75 Price ($) Volume (shares 000's) Vol Price MGYR Stock Performance Since IPO 23 MGYR Stock price on 1/31/2025 -$14.34 Second Step IPO Date of 7/15/2021 at $10.00 per share. 43.4%

Fiscal Year 2025 Outlook 24

Fiscal Year 2025 Outlook • Enhance shareholder value – Quarterly dividend increased to $0.06 per share – Stock buyback • Continued emphasis on community banking strategy to grow the business – Identify quality residential and commercial lending opportunities 25

Fiscal Year 2025 Outlook • Manage interest rate risk • IT Cybersecurity • Continued focus on non-interest expenses –Martinsville office produced significant cost savings –Utilize technology to achieve more efficient branches • Evaluate additional branch locations based on marketing opportunities 26

Questions? 27

 

v3.25.0.1

Cover	Feb. 20, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 20, 2025
Entity File Number	000-51726
Entity Registrant Name	Magyar Bancorp, Inc.
Entity Central Index Key	0001337068
Entity Tax Identification Number	20-4154978
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	400 Somerset Street
Entity Address, City or Town	New Brunswick
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08901
City Area Code	(732)
Local Phone Number	342-7600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MGYR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Information, Former Legal or Registered Name	Not Applicable

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