Business Wire | Jul 27, 2020 01:35PM EDT

Brunswick Bancorp Reports 2020 First Half and Second Quarter Financial Results

Jul. 27, 2020

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Jul. 27, 2020--Brunswick Bancorp ("Brunswick" or "the Company") (OTC: "BRBW"), the holding company for Brunswick Bank and Trust ("the Bank"), today reported its financial results for the period ended June 30, 2020.

Financial Highlights:

* Total assets increased 19.65% to $286.9 million from December 31, 2019; * Loan portfolio increased 10.59% to $215.2 million from December 31, 2019; * Deposits increased 11.21% to $215.9 million from December 31, 2019; and * Increased net income in both the quarter and the year to date periods.

"Brunswick delivered another solid quarter as our increased business development and marketing efforts and our participation in the Paycheck Protection Program enabled us to continue growing assets, loans, deposits and net income," said Nicholas A. Frungillo, Jr., President and Chief Operating Officer. "We are confident the actions we have taken to improve top- and bottom-line performance have Brunswick well-positioned to weather near-term headwinds and succeed as the pandemic subsides."

Mr. Frungillo continued, "We are proud of the work Brunswick Bank and our employees have done to support our local community during the COVID-19 pandemic. In addition to continuing to safely serve our customers, we assisted local businesses by executing 125 loans totaling approximately $11 million through the PPP loan program. We are committed to continuing to serve customers in a manner that is safe for them and our employees."

Financial Summary for First Half of 2020

At June 30, 2020, the Company had total assets of $286.9 million, an increase of $47.1 million or 19.65% over the December 31, 2019 total of $239.8 million. The growth was mainly driven by management's previously implemented business development initiatives. Cash due from banks was $27.2 million at June 30, 2020, an increase of $9.0 million or 49.33% over year-end due to current market conditions. The loan portfolio grew to $215.2 million at June 30, 2020, an increase of $20.6 million or 10.59% since December 31, 2019. Growth was primarily in loans secured by commercial real estate and the addition of $11.0 million in PPP loan balances during the current quarter. Securities increased to $26.9 million, up $15.9 million, or 144.11%, from the $11.0 million balance at December 31, 2019, as the Bank used excess liquidity to purchase securities to increase its yield over the fed funds rate.

Deposits grew to $215.9 million at June 30, 2020, an increase of $21.8 million, or 11.21%, from December 31, 2019 as a result of management's increased marketing efforts. FHLB borrowing increased by $13.5 million to $16.7 million at June 30, 2020 as the Bank locked in longer term borrowings at lower rates than retail deposits. The Bank also was able to enter the Federal Reserve Bank's PPPLF program, which allows the Bank to fund its PPP loans at a cost of 35 basis points for up to 2 years, matching the maturity of the PPP loans.

Stockholders' equity increased by $624 thousand to $40.0 million due to earnings retention net of the change in unrealized losses. The Bank meets all criteria to be considered "Well Capitalized".

The Bank's Net Interest Margin was 3.57% for the six months ended June 30, 2020 compared to 3.96% at June 30, 2019. The Bank's cost of deposits decreased to 1.58% for the six months ended June 30, 2020 from 1.83% for the comparative period in 2019. The Bank's yield on interest earning assets decreased to 4.75% for the six months ended June 30, 2020 from 5.15% for the same period last year.

Net interest income was $4.214 million for the six months ended June 30, 2020, an increase of $404 thousand, or 10.60%, from $3.810 million for the comparable period of 2019. Loan income grew to $5.367 million for the six months ending June 30, 2020, an increase of $679 thousand, or 14.49%, from $4.688 million for the same period a year ago due to higher outstanding balances. Interest expense was $1.340 million for the six months ended June 30, 2020, an increase of $234 thousand, or 21.19%, when compared to $1.105 million for the same period a year ago due to a higher level of deposits.

Total other income was $648 thousand for the six months ended June 30, 2020, an increase of $82 thousand, or 14.42%., over the same period a year ago. During the period, the Company realized $132 thousand in gains on securities as the Company repositioned its investment portfolio. The securities sold were replaced by similar securities with essentially the same effective duration and a nominally higher yield. Service fees on deposit accounts decreased by $81 thousand or 18.80% for the six months ended June 30, 2020, when compared to the same period a year ago due to reduced activity from COVID-19.

Total non-interest expenses were $3.987 million for the six months ended June 30, 2020, an increase of $184 thousand, or 4.82% over the same period a year ago. Salaries increased by $272 thousand for the six months ended June 30, 2020 compared to the same period last year. Occupancy expenses declined to $435 thousand, a reduction of $243 thousand from the same period a year ago, as the Bank closed its Englishtown office on May 31, 2019 and purchased its Main office on Livingston Avenue in the fourth quarter of 2019. Other expenses grew by $144 thousand to $1.148 million for the six months ended June 30, 2020 when compared to $1.004 million for the same period a year ago, as the Bank has experienced an increase in Legal and Professional fees.

Provisions for loan losses was $170 thousand for the six months ended June 30, 2020 as compared to no provision during the same period a year ago. The Company believes this increase is prudent given the impact of the COVID-19 pandemic on the local economy and customers. Management is actively monitoring the Bank's loan portfolio in light of the continued uncertainty and may increase provisions for loan losses in the future.

Net income was $541 thousand for the six months ended June 30, 2020 compared to $411 thousand for the same period a year ago, an increase of $130 thousand or 31.47%. Income before income taxes and provision for loan losses was $875 thousand, an increase of $302 thousand, or 52.70%, over the same period a year ago.

Financial Summary for the Three Months ended June 30, 2020

Net interest income was $2.089 million for the three months ended June 30, 2020, an increase of $180 thousand, or 9.43%, from $1.909 million for the same period a year ago. Loan income was $2.651 million for the three months ending June 30, 2020, an increase of $255 thousand, or 10.65%, from $2.395 million for the same period a year ago due to higher outstanding balances. Interest expense was $644 thousand for the three months ended June 30, 2020, an increase of $65 thousand, or 11.24% when compared to $579 thousand for the same period a year ago, primarily due to lower market rates offset by increased volume.

Total other income was $386 thousand for the three months ended June 30, 2020, an increase of $83 thousand or 27.19% when compared to $303 for the same period a year ago. During the current period, the Company realized $132 thousand in gains on securities as the Company repositioned its investment portfolio, as discussed above. Service fees on deposit accounts decreased by $57 thousand or 26.44% for the three months ended June 30, 2020, when compared to $217 thousand for the same period a year ago due to reduced activity from COVID-19. Total non-interest expenses were $1.980 million for the three months ended June 30, 2020, an increase of $47 thousand, or 2.42% when compared to $1.933 million for the same period a year ago. Salaries increased by $161 thousand to $1.152 million for the three months ended June 30, 2020 when compared to $991 thousand for the same period a year ago primarily due to an addition to staff for our residential mortgage department. Occupancy expenses decreased to $200 thousand, a reduction of $141 thousand from $341 thousand for the same period a year ago due to the closing of our Englishtown branch and the purchase of our Livingston Avenue branch. Other expenses grew by $27 thousand to $581 thousand for the three months ended June 30, 2020 when compared to $554 thousand for the same period last year as the Bank has experienced an increase in Legal and Professional fees.

Provisions for loan losses was $90 thousand for the three months ended June 30, 2020 compared to no provisions in the comparable year ago period. The Company believes this increase is prudent given the impact of the COVID-19 pandemic on the local economy and customers. Management is actively monitoring the Bank's loan portfolio in light of the continued uncertainty and may increase provisions for loan losses in the future.

Net income was $310 thousand for the three months ended June 30, 2020 compared to $197 thousand for the same period a year ago, an increase of $113 thousand or 57.63%. Income before income taxes and provision for loan losses was $495 thousand, an increase of $216 thousand, or 77.22%, over the same period a year ago.

Operations During COVID-19 Pandemic

Like virtually all companies, the COVID-19 pandemic crisis has impacted the Company and the Bank. The Company reopened all of its branches on July 6, 2020, with the exception of our George Street Branch which will remain temporarily closed. Branch lobbies are open on a limited basis following the CDC and the State of New Jersey guidelines. In addition, to assist customers, the Bank is still participating in the PPP loan program as a lender.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "will," "should," "may," "view," "opportunity," "potential," or similar expressions or expressions of confidence. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, general economic conditions, levels of unemployment in the Bank's lending area, real estate market values in the Bank's lending area, future natural disasters and increases to flood insurance premiums, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area, accounting principles and guidelines, and the impact of the Covid-19 pandemic on the Company, the Bank and its customers. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which 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.

About Brunswick Bancorp

Brunswick Bancorp is the holding company for Brunswick Bank & Trust, a New Jersey chartered commercial bank which serves central New Jersey through its New Brunswick main office and five additional branch offices.

BRUNSWICK BANCORP REPORTS JUNE 30, 2020 RESULTS BRUNSWICK BANCORP ANDSUBSIDIARIESCONSOLIDATED BALANCE SHEETJUNE 30, 2020 and 2019 June 30, December 31, June 30,(UNAUDITED) 2020 2019 2019

ASSETSCash and due from banks $ 27,225,225 $ 18,232,092 $ 11,113,283

Securities held to 4,305,224 4,947,028 5,598,679 maturity, at amortizedcostSecurities available for 22,641,660 6,091,955 6,301,650 sale, at fair market valueRestricted bank stock, at 952,900 313,800 589,800 costLoans receivable, net 215,192,189 194,590,692 177,683,250

Premises and equipment, 4,660,925 4,899,205 1,013,359 netAccrued interest 1,367,022 678,059 557,896 receivableOther real estate 5,591,834 5,373,664 5,358,031

Other assets 4,964,050 4,657,101 7,707,420

TOTAL ASSETS $ 286,901,028 $ 239,783,596 $ 215,923,369

LIABILITIES ANDSTOCKHOLDERS' EQUITYDepositsNon-interest bearing $ 55,124,000 $ 45,155,982 $ 34,758,272

Interest bearing 160,731,738 148,944,198 129,071,639

Total deposits 215,855,738 194,100,180 163,829,912

Borrowed funds 27,055,930 3,200,000 8,000,000

Accrued interest payable 779,578 493,421 322,647

Advances from borrowers 1,053,322 1,300,744 1,293,179 for taxes and insuranceOther liabilities 2,161,252 1,317,985 3,915,150

TOTAL LIABILITIES 246,905,819 200,412,329 177,360,887

STOCKHOLDERS' EQUITYPreferred stock-no statedvalue10,000,000 sharesauthorized and no sharesissued and outstanding atJune 30, 2020.Common stock - no parvalue10,000,000 sharesauthorized;3,036,603 shares issued atJune 30, 2020 and 2019and December 31, 2019Additional paid-in capital 7,748,486 7,699,758 7,663,049

Other Comprehensive Loss 11,481 (18,335 ) (33,807 )

Retained earnings 33,850,703 33,310,055 32,454,099

Treasury stock at cost, 224,557 and 214,599shares,at June 30, 2020 and 2019, (1,615,460 ) (1,620,210 ) (1,520,859 )and 225,057shares at December 31,2019.TOTAL STOCKHOLDERS' EQUITY 39,995,209 39,371,267 38,562,482

TOTAL LIABILITIES AND $ 286,901,028 $ 239,783,596 $ 215,923,369 STOCKHOLDERS' EQUITY Book Value per share $ 14.22 $ 14.00 $ 13.66



BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMESIX MONTHS ENDED JUNE 30, 2020 and 2019 (UNAUDITED) June 30,

2020 2019

INTEREST INCOMEInterest and fees on loans $ 5,367,377 $ 4,688,109

Interest on investments 126,676 115,255

Interest on balances with banks 59,294 111,965

TOTAL INTEREST INCOME 5,553,348 4,915,330

INTEREST EXPENSEInterest on deposits 1,262,224 1,079,152

Interest on borrowed funds 77,501 26,286

Total interest expense 1,339,726 1,105,439

NET INTEREST INCOME 4,213,622 3,809,891

Provision for loan losses 170,000 -

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 4,043,622 3,809,891

OTHER INCOMEService fees 350,415 431,534

Gain on sale securities AFS 132,623 -

Other income 165,405 135,171

TOTAL OTHER INCOME 648,443 566,705

OTHER EXPENSESSalaries and employee benefits 2,310,432 2,038,001

Occupancy expenses 435,224 678,322

Equipment expenses 93,239 83,417

Other expenses 1,148,466 1,004,111

TOTAL OTHER EXPENSES 3,987,360 3,803,852

INCOME BEFORE INCOME TAX EXPENSE 704,705 572,745

Income tax expense 164,057 161,499

NET INCOME $ 540,648 $ 411,246

Earnings per share $ 0.19 $ 0.15

Earnings per share (Diluted) $ 0.19 $ 0.15



BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMEQUARTER ENDED JUNE 30, 2020 and 2019 (UNAUDITED) June 30,

2020 2019

INTEREST INCOMEInterest and fees on loans $ 2,650,511 $ 2,395,313

Interest on investments 74,129 40,307

Interest on balances with banks 8,926 52,814

TOTAL INTEREST INCOME 2,733,567 2,488,433

INTEREST EXPENSEInterest on deposits 589,955 552,864

Interest on borrowed funds 54,316 26,286

Total interest expense 644,270 579,151

NET INTEREST INCOME 2,089,296 1,909,283

Provision for loan losses 90,000 -

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,999,296 1,909,283

OTHER INCOMEService fees 159,733 217,153

Gain on sale securities AFS 132,623 -

Other income 93,595 86,293

TOTAL OTHER INCOME 385,950 303,446

OTHER EXPENSESSalaries and employee benefits 1,152,372 991,196

Occupancy expenses 199,862 340,925

Equipment expenses 47,046 46,945

Other expenses 581,079 554,416

TOTAL OTHER EXPENSES 1,980,359 1,933,483

INCOME BEFORE INCOME TAX EXPENSE 404,888 279,246

Income tax expense 94,884 82,576

NET INCOME $ 310,004 $ 196,670

NET INCOME PER SHARE OF COMMON STOCK:Earnings per share $ 0.11 $ 0.07

Earnings per share (Diluted) $ 0.11 $ 0.07



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CONTACT: Investors Brunswick Bancorp Nicholas A. Frungillo, Jr. - President / COO David Gazerwitz - VP / Treasurer 732-247-5800

CONTACT: Media Paul Caminiti / Nicholas Leasure Reevemark 212-433-4600