Business Wire | Jul 19, 2021 11:06AM EDT

Brunswick Bancorp Reports 2021 First Half and Second Quarter Financial Results

Jul. 19, 2021

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Jul. 19, 2021--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, 2021.

Financial Highlights for the First Half of 2021:

* Total assets increased 15.03% to $363.5 million from December 31, 2020; * Loan portfolio increased 12.90% to $268.6 million from December 31, 2020; * Deposits increased 17.55% to $273.0 million from December 31, 2020; and * Net income increased 132.82% to $1.259 million compared to the same period a year ago.

"By executing on our strategy to drive the top- and bottom-line, Brunswick delivered a strong performance in the first half of 2021 and set the Company up for success in the second half of the year," said Nicholas A. Frungillo, Jr., President and Chief Executive Officer of the Company and the Bank. "We continue to realize the benefits of our marketing and business development initiatives, increased focus on commercial real estate lending and our continued participation in the Paycheck Protection Program, through which we were able to help our customers maintain jobs in our Central New Jersey marketplace. We are confident these initiatives will drive continued growth in Brunswick's assets, loans, deposits and net income, and enhance value for our shareholders."

Financial Summary for First Half of 2021

At June 30, 2021, the Company had total assets of $363.5 million, an increase of $47.5 million or 15.03% over the December 31, 2020 total of $316.0 million. The growth was mainly driven by management's previously implemented business development initiatives. Cash and due from banks was $28.2 million at June 30, 2021, an increase of $8.1 million or 40.04% over year-end due to quarter end fluctuations. The loan portfolio grew to $268.6 million at June 30, 2021, an increase of $30.7 million or 12.90% since December 31, 2020. Growth was primarily in loans secured by commercial real estate and the addition of $3.2 million in Paycheck Protection Program ("PPP") loan balances during the current quarter. Securities increased to $48.4 million, up $8.0 million, or 19.80%, from the $40.4 million balance at December 31, 2020, as the Bank used excess liquidity to purchase securities to increase its yield over the fed funds rate.

Deposits grew to $273.0 million at June 30, 2021, an increase of $40.8 million, or 17.55%, from December 31, 2020 as a result of management's increased marketing efforts. FHLB borrowing increased by $5.0 million to $31.7 million at June 30, 2021 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 with maturities matching the maturity of the PPP loans securing the borrowing.

Stockholders' equity increased by $283 thousand to $42.6 million due to earnings retention net of the change in other comprehensive income/losses and one-time special dividend paid in February 2021. The Bank meets all criteria to be considered "Well Capitalized".

The Bank's Net Interest Margin was 3.54% for the six months ended June 30, 2021 compared to 3.57% for the six months ended June 30, 2020. The Bank's cost of deposits decreased to 0.68% for the six months ended June 30, 2021 from 1.58% for the comparative period in 2020. The Bank's yield on interest earning assets decreased to 4.05% for the six months ended June 30, 2021 from 4.75% for the same period last year.

Net interest income was $5.519 million for the six months ended June 30, 2021, an increase of $1.305 million, or 30.97%, from $4.214 million for the comparable period of 2020. Loan income grew to $6.098 million for the six months ending June 30, 2021, an increase of $731 thousand, or 13.61%, from $5.367 million for the same period a year ago due to higher outstanding balances. Interest expense was $786 thousand for the six months ended June 30, 2021, a decrease of $553 thousand, or 41.30%, when compared to $1.340 million for the same period a year ago due to lower market rates.

Total other income was $658 thousand for the six months ended June 30, 2021, an increase of $10 thousand, or 1.49%, over the same period a year ago. During the prior 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 $32 thousand or 9.15% for the six months ended June 30, 2021, when compared to the same period a year ago due to reduced activity during the COVID-19 pandemic.

Total non-interest expenses were $4.172 million for the six months ended June 30, 2021, an increase of $185 thousand, or 4.63% over the same period a year ago. Salaries decreased by $27 thousand for the six months ended June 30, 2021 compared to the same period last year. Occupancy expenses declined to $333 thousand, a reduction of $102 thousand from the same period a year ago, as the Bank purchased its Main office on Livingston Avenue in the fourth quarter of 2020 and its North Brunswick branch in May 2021. Other expenses grew by $316 thousand to $1.464 million for the six months ended June 30, 2021 when compared to $1.148 million for the same period a year ago, as the Bank has expended approximately $250 thousand due to the proxy contest related to its 2021 Annual Meeting.

Provisions for loan losses was $256 thousand for the six months ended June 30, 2021 as compared $170 thousand for 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 $1.259 million for the six months ended June 30, 2021 compared to $541 thousand for the same period a year ago, an increase of $718 thousand or 132.82%. Income before income taxes and provision for loan losses was $2.005 million, an increase of $1.130 million, or 129.20%, over the same period a year ago.

Financial Summary for the Three Months ended June 30, 2021

Net interest income was $2.805 million for the three months ended June 30, 2021, an increase of $716 thousand, or 34.26%, from $2.089 million for the same period a year ago. Loan income was $3.072 million for the three months ending June 30, 2021, an increase of $421 thousand, or 15.90%, from $2.651 million for the same period a year ago due to higher outstanding balances. Interest expense was $399 thousand for the three months ended June 30, 2021, a decrease of $245 thousand, or 38.00% when compared to $644 thousand for the same period a year ago, primarily due to lower market rates.

Total other income was $319 thousand for the three months ended June 30, 2021, a decrease of $67 thousand or 17.46% when compared to $386 for the same period a year ago. During the prior 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 increased by $4 thousand or 2.22% for the three months ended June 30, 2021, when compared to $160 thousand for the same period a year ago.

Total non-interest expenses were $1.989 million for the three months ended June 30, 2021, an increase of $8 thousand, or 0.42% when compared to $1.981 million for the same period a year ago. Salaries increased by $3 thousand to $1.155 million for the three months ended June 30, 2021 compared to $1.152 million for the same period a year ago. Occupancy expenses decreased to $155 thousand, a reduction of $45 thousand from $200 thousand for the same period a year ago due to the purchase of our George Street branch. Other expenses grew by $53 thousand to $634 thousand for the three months ended June 30, 2021 when compared to $581 thousand for the same period last year primarily due to an increase of $29 thousand related to non-accrual loan expenses.

Provisions for loan losses were $147 thousand for the three months ended June 30, 2021 compared to $90 thousand 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 $707 thousand for the three months ended June 30, 2021 compared to $310 thousand for the same period a year ago, an increase of $397 thousand or 127.97%. Income before income taxes and provision for loan losses was $1.135 million, an increase of $640 thousand, or 129.342%, over the same period a year ago.

Operations During COVID-19 Pandemic

As previously disclosed, branch lobbies are open following guidelines from the CDC and the State of New Jersey. In accordance with state and federal guidance, and to assist borrowers impacted by the COVID-19 pandemic, the Bank granted payment deferrals to affected borrowers. All borrowers granted the relief are currently making payments.

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 four additional branch offices.

BRUNSWICK BANCORP REPORTS JUNE 30, 2021 RESULTS BRUNSWICK BANCORP ANDSUBSIDIARIESCONSOLIDATED BALANCE SHEET(UNAUDITED)JUNE 30,2021 and 2020 June 30, December 31, June 30,(UNAUDITED) 2021 2020 2020

ASSETSCash and due from banks $ 28,171,351 $ 20,116,224 $ 27,225,225

Securities held to 2,858,691 3,524,079 4,305,224 maturity, at amortizedcostSecurities available for 45,496,317 36,839,298 22,641,660 sale, at fair market valueRestricted bank stock, at 1,730,400 1,402,900 952,900 costLoans receivable, net 268,576,945 237,886,288 215,192,189

Premises and equipment, 4,950,235 4,350,047 4,660,925 netAccrued interest 930,884 875,142 1,367,022 receivableOther real estate 4,894,031 4,894,031 5,591,834

Other assets 5,858,021 6,078,244 4,964,050

TOTAL ASSETS $ 363,466,875 $ 315,966,252 $ 286,901,028

LIABILITIES ANDSTOCKHOLDERS' EQUITYDepositsNon-interest bearing $ 66,510,009 $ 58,462,505 $ 55,124,000

Interest bearing 206,480,398 173,772,135 160,731,738

Total deposits 272,990,407 232,234,640 215,855,738

Borrowed funds 44,752,691 37,427,067 27,055,930

Accrued interest payable 440,047 589,403 779,578

Advances from borrowers 1,399,089 1,063,488 1,053,322 for taxes and insuranceOther liabilities 1,311,245 2,360,991 2,161,252

TOTAL LIABILITIES 320,893,478 273,675,588 246,905,819

STOCKHOLDERS' EQUITYPreferred stock-no statedvalue10,000,000 sharesauthorized and no sharesissued and outstanding atJune 30, 2021.Common stock - no parvalue10,000,000 sharesauthorized;3,042,803 and 3,036,603shares issued at June 30,2021 and 20203,036,603 shares issued atDecember 31, 2020Additional paid-in capital 7,916,195 7,797,214 7,748,486

Other Comprehensive (loss) (296,161 ) 94,337 11,481 incomeRetained earnings 36,568,822 36,014,573 33,850,703

Treasury stock at cost, - -224,557 shares,at June 30, 2021 and 2020 (1,615,460 ) (1,615,460 ) (1,615,460 )and December 31, 2020TOTAL STOCKHOLDERS' EQUITY 42,573,396 42,290,664 39,995,209

TOTAL LIABILITIES AND $ 363,466,875 $ 315,966,252 $ 286,901,028 STOCKHOLDERS' EQUITY Book Value per share $ 15.11 $ 15.04 $ 14.22

BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMESIX MONTHS ENDED JUNE 30, 2021 and 2020 (UNAUDITED)June 30,

2021

2020

INTEREST INCOMEInterest and fees on loans$

6,098,074

$

5,367,377

Interest on investments168,324

126,676

Interest on balances with banks38,813

59,294

TOTAL INTEREST INCOME6,305,211

5,553,348

INTEREST EXPENSEInterest on deposits604,461

1,262,224

Interest on borrowed funds181,977

77,501

Total interest expense786,438

1,339,726

NET INTEREST INCOME5,518,773

4,213,622

Provision for loan losses256,000

170,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES5,262,773

4,043,622

OTHER INCOMEService fees318,368

350,415

Gain on sale securities AFS-

132,623

Other income339,764

165,405

TOTAL OTHER INCOME658,132

648,443

OTHER EXPENSESSalaries and employee benefits2,283,104

2,310,432

Occupancy expenses332,850

435,224

Equipment expenses91,987

93,239

Other expenses1,464,108

1,148,466

TOTAL OTHER EXPENSES4,172,048

3,987,360

INCOME BEFORE INCOME TAX EXPENSE1,748,856

704,705

Income tax expense490,096

164,057

NET INCOME$

1,258,760

$

540,648

Earnings per share$

0.45

$

0.19

Earnings per share (Diluted)$

0.45

$

0.19

BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMESIX MONTHS ENDED JUNE 30, 2021 and 2020 (UNAUDITED) June 30,

2021 2020

INTEREST INCOMEInterest and fees on loans $ 6,098,074 $ 5,367,377

Interest on investments 168,324 126,676

Interest on balances with banks 38,813 59,294

TOTAL INTEREST INCOME 6,305,211 5,553,348

INTEREST EXPENSEInterest on deposits 604,461 1,262,224

Interest on borrowed funds 181,977 77,501

Total interest expense 786,438 1,339,726

NET INTEREST INCOME 5,518,773 4,213,622

Provision for loan losses 256,000 170,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 5,262,773 4,043,622

OTHER INCOMEService fees 318,368 350,415

Gain on sale securities AFS - 132,623

Other income 339,764 165,405

TOTAL OTHER INCOME 658,132 648,443

OTHER EXPENSESSalaries and employee benefits 2,283,104 2,310,432

Occupancy expenses 332,850 435,224

Equipment expenses 91,987 93,239

Other expenses 1,464,108 1,148,466

TOTAL OTHER EXPENSES 4,172,048 3,987,360

INCOME BEFORE INCOME TAX EXPENSE 1,748,856 704,705

Income tax expense 490,096 164,057

NET INCOME $ 1,258,760 $ 540,648

Earnings per share $ 0.45 $ 0.19

Earnings per share (Diluted) $ 0.45 $ 0.19

BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMEQUARTER ENDED JUNE 30, 2021 and 2020 (UNAUDITED)June 30,

2021

2020

INTEREST INCOMEInterest and fees on loans$

3,071,875

$

2,650,511

Interest on investments110,180

74,129

Interest on balances with banks22,409

8,926

TOTAL INTEREST INCOME3,204,464

2,733,567

INTEREST EXPENSEInterest on deposits304,762

589,955

Interest on borrowed funds94,693

54,316

Total interest expense399,455

644,270

NET INTEREST INCOME2,805,009

2,089,296

Provision for loan losses147,000

90,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES2,658,009

1,999,296

OTHER INCOMEService fees163,282

159,733

Gain on sale securities AFS-

132,623

Other income155,300

93,595

TOTAL OTHER INCOME318,582

385,950

OTHER EXPENSESSalaries and employee benefits1,154,778

1,152,372

Occupancy expenses155,374

199,862

Equipment expenses44,690

47,046

Other expenses633,785

581,079

TOTAL OTHER EXPENSES1,988,627

1,980,359

INCOME BEFORE INCOME TAX EXPENSE987,965

404,888

Income tax expense281,259

94,884

NET INCOME$

706,706

$

310,004

Earnings per share$

0.25

$

0.11

Earnings per share (Diluted)$

0.25

$

0.11

View source version on businesswire.com: https://www.businesswire.com/news/home/20210719005575/en/

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

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