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 ofthe Section 27A of the Securities Act of
          1933 and Section 21E of the Securities Exchange Act of 1934.Suchforward-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 thenegative of
          those terms.Forward-looking
          statements are subject to numerous risks and uncertainties, including,
          butnot 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
          andrecruitment of qualified personnel, and market acceptance of the
          Company’s pricing, products and services, andwith respect to the loans
          extended by the Bank to Solomon Dwek and real estate owned, the following:
          risks
          relatedto the economic environment in the market areas in which the Bank
          operates, particularly with respect to the realestate market in New Jersey;
          the risk that the value of the real estate securing these loans may decline
          in
          value; andthe 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, whichspeak only as of the date made. The Company does not
          undertake and specifically declines any obligation topublicly release the
          result of any revisions that may be made to any forward-looking statements
          to
          reflect events orcircumstances 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 IPOraising
          $26.2 mil.It
          currently has 45.7% of its outstandingshares
          owned by public shareholders, including theMagyarBank
          Charitable Foundation.The
          remainder isowned
          by Magyar Bancorp, MHC.
 •  Magyar
          operates five branch locations throughoutMiddlesex
          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
 Edison  1167
          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 thecommunity
 –  FDIC
          CRA
          Rating—”Outstanding”
 –  America’s
          Community Bankers - Community ServiceAward
 –  NJ
          League of
          Community Bankers - Community ServiceAward
 –  Employers
          Association of NJ - Exceptional EmployerAward





NASDAQ:
          MGYR
 7
 Community
          Banking Strategy
 We
          attribute the majority of our growth to our commitment to ourcommunity
          and our focus on customer service.
 •  Building
          our
          brand recognition through participation in localcommunity
          events.
 •  Strengthening
          our relationships with existing customers byoffering
          new products and services to help meet theirgrowing
          needs.
 –  Customer
          recognition program produced an increase of 17.7% in program’sdeposits
          since November 2006.
 •  Leveraging
          our affiliation with non-profit organizations tocreate
          potential business opportunities.





NASDAQ:
          MGYR
 8
 Community
          Banking Strategy
 •  We
          are proud
          that our MagyarBank Charitable Foundationhas
          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 anddevelopmental 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 improvingproperty
          and seeking buyers which is currently held in OREO.
 –  $745,000
          in Farmingdale, NJ - Full
          repayment receivedDecember
          31, 2007
 •  Kara
          Homes Relationship
 –  Originally
          $5.1 million with four developments.We
          have resolved3
          of the 4 projects.
 –  We
          are left
          with only
          one development
          of nine lots in Little EggTownship,
          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 Chart  Since
          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, announcedNovember
          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 InterestMargin
 –  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 ManagingCapital
          and Effectively Deploying our Community BankingStrategy





NASDAQ:
          MGYR
 Any
          Questions?