Business Wire | Oct 20, 2021 11:07AM EDT

Brunswick Bancorp Reports 2021 Year to Date and Third Quarter Financial Results

Oct. 20, 2021

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Oct. 20, 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 quarterly and year to date period ended September 30, 2021.

Financial Highlights:

* Total assets increased 14.31% to $361.2 million from December 31, 2020; * Loan portfolio increased 12.61% to $267.9 million from December 31, 2020; * Deposits increased 17.57% to $273.0 million from December 31, 2020; and * Net income increased 151.84% to $2.130 million compared to the same year to date period a year ago. * Net income per share increased to $0.76 per diluted share in the current year to date period compared to $0.30 per diluted share in the same year to date period last year.

"Our continued efforts to drive top- and bottom-line performance resulted in substantial net income growth during the third quarter and for the year to date," 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. As we look to the fourth quarter, we are confident our strategic initiatives will continue to drive growth and enhance value for shareholders."

Financial Summary for the Nine Months ending September 30, 2021

At September 30, 2021, the Company had total assets of $361.2 million, an increase of $45.2 million or 14.31% 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 $29.6 million at September 30, 2021, an increase of $9.4 million or 46.90% over year-end due to quarter end fluctuations. The loan portfolio grew to $267.9 million at September 30, 2021, an increase of $30.0 million or 12.61% since December 31, 2020. Growth was primarily in loans secured by commercial real estate. The growth in the loan portfolio reflected loan originations of $52.0 million during the nine months ended September 30, 2021, partially offset by $10.9 million in PPP loan forgiveness and $15.3 million in early payoffs. Securities increased to $45.5 million, up $5.1 million, or 12.65%, 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 September 30, 2021, an increase of $40.8 million, or 17.57%, from December 31, 2020 as a result of management's increased marketing efforts. The average rate paid on the deposit portfolio declined to 0.65% for the nine months ended September 30, 2021 from 1.42% for the comparable prior year period. FHLB borrowing increased by $5.0 million to $31.7 million at September 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 $43.6 million due to earnings retention net of the change in other comprehensive income/losses and a 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 3.51% for the nine months ended September 30, 2021 compared to 3.48% for the nine months ended September 30, 2020. The Bank's cost of deposits decreased to 0.65% for the nine months ended September 30, 2021 from 1.42% for the comparative period in 2020. The Bank's yield on interest earning assets decreased to 3.99% for the nine months ended September 30, 2021 from 4.54% for the same period last year.

Net interest income was $8.482 million for the nine months ended September 30, 2021, an increase of $1.997 million, or 30.79%, from $6.485 million for the comparable period of 2020. Loan income grew to $9.282 million for the nine months ending September 30, 2021, an increase of $1.177 million, or 14.53%, from $8.105 million for the same period a year ago due to higher outstanding balances. Interest expense was $1.166 million for the nine months ended September 30, 2021, a decrease of $753 thousand, or 39.23%, when compared to $1.919 million for the same period a year ago due to lower market rates more than offsetting the increase in deposits.

Total other income was $971 thousand for the nine months ended September 30, 2021, an increase of $94 thousand, or 10.74%, over the same period a year ago. During the prior period, the Company realized $159 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 $26 thousand or 5.03% for the nine months ended September 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 $6.202 million for the nine months ended September 30, 2021, an increase of $271 thousand, or 4.57% over the same period a year ago. Salaries increased by $102 thousand for the nine months ended September 30, 2021 compared to the same period last year. Occupancy expenses declined to $470 thousand, a reduction of $153 thousand from the same period a year ago, as the Bank sold its George Street branch in the fourth quarter of 2020 and purchased its North Brunswick branch in May 2021. Other expenses grew by $327 thousand to $2.099 million for the nine months ended September 30, 2021 when compared to $1.771 million for the same period a year ago, as the Bank has expended approximately $250 thousand due to the proxy contest at its 2021 Annual Meeting.

The provision for loan losses was $310 thousand for the nine months ended September 30, 2021 as compared $320 thousand for the same period a year ago. Management is actively monitoring the Bank's loan portfolio in light of the continued economic uncertainty related to the COVID-19 pandemic and may increase provisions for loan losses in the future.

Net income was $2.130 million, or $0.76 per diluted share, for the nine months ended September 30, 2021 compared to $846 thousand, or $0.30 per diluted share, for the same period a year ago, an increase of $1.284 million or 151.84%. Income before income taxes and provision for loan losses was $3.252 million, an increase of $1.820 million, or 127.19%, over the same period a year ago.

Financial Summary for the Three Months ended September 30, 2021

Net interest income was $2.964 million for the three months ended September 30, 2021, an increase of $692 thousand, or 30.46%, from $2.272 million for the same period a year ago. Loan income was $3.184 million for the three months ending September 30, 2021, an increase of $447 thousand, or 16.32%, from $2.737 million for the same period a year ago due to higher outstanding balances. Interest expense was $380 thousand for the three months ended September 30, 2021, a decrease of $199 thousand, or 34.44% when compared to $579 thousand for the same period a year ago, primarily due to lower market rates more than offsetting the increase in deposits.

Total other income was $313 thousand for the three months ended September 30, 2021, an increase of $85 thousand or 36.97% when compared to $229 thousand for the same period a year ago. During the prior period, the Company realized $27 thousand in gains on securities as the Company repositioned its investment portfolio. Service fees on deposit accounts increased by $6 thousand or 3.92% for the three months ended September 30, 2021, when compared to service fees of $161 thousand for the same period a year ago.

Total non-interest expenses were $2.030 million for the three months ended September 30, 2021, an increase of $86 thousand, or 4.44% when compared to $1.944 million for the same period a year ago. Salaries increased by $129 thousand to $1.216 million for the three months ended September 30, 2021 compared to $1.087 million for the same period a year ago. Occupancy expenses decreased to $138 thousand, a reduction of $50 thousand from $188 thousand for the same period a year ago as the Bank sold its George Street branch in the fourth quarter of 2020 and purchased its North Brunswick branch in May 2021. Other expenses grew by $12 thousand to $635 thousand for the three months ended September 30, 2021 when compared to $623 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 $54 thousand for the three months ended September 30, 2021 compared to $150 thousand in the comparable year ago period. Management is actively monitoring the Bank's loan portfolio in light of the continued economic uncertainty related to the COVID-19 pandemic and may increase provisions for loan losses in the future.

Net income was $871 thousand, or $0.31 per diluted share, for the three months ended September 30, 2021 compared to $305 thousand, or $0.11 per diluted share, for the same period a year ago, an increase of $566 thousand or 185.55%. Income before income taxes and provision for loan losses was $1.247 million, an increase of $690 thousand, or 124.03%, 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. We provided payment deferrals on 85 loans with $53.5 million in outstanding principal. Of these loans, only 5 loans, with $4.7 million in principal, are still in principal deferral and making interest only 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 results 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 SEPTEMBER 30, 2021 RESULTS BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED BALANCE SHEET (UNAUDITED)SEPTEMBER 30, 2021and 2020 September 30, December 31, September 30,(UNAUDITED) 2021 2020 2020

ASSETSCash and due from $ 29,550,674 $ 20,116,224 $ 30,249,794 banksSecurities held 3,524,079 3,870,235 to maturity, at 2,624,991amortized costSecurities available for 42,844,695 36,839,298 29,784,380 sale, at fairmarket valueRestricted bank 1,402,900 952,900 stock, at cost 1,730,400

Loans receivable, 237,886,288 225,289,973 net 267,894,970

Premises and 4,350,047 4,693,502 equipment, net 4,911,450

Accrued interest 875,142 885,621 receivable 958,337

4,894,031 5,496,201 Other real estate 4,894,031

6,078,244 5,923,194 Other assets 5,776,453

TOTAL ASSETS $ 361,186,001 $ 315,966,252 $ 307,145,800

LIABILITIES ANDSTOCKHOLDERS'EQUITYDepositsNon-interest $ 67,392,304 $ 58,462,505 $ 56,817,165 bearing 173,772,135 177,903,559 Interest bearing 205,644,219

232,234,640 234,720,724 Total deposits 273,036,524

37,427,067 28,422,557 Borrowed funds 41,636,405

Accrued interest 589,403 994,005 payable 476,611

Advances from borrowers for 1,248,794 1,063,488 974,256 taxes andinsurance 2,360,991 1,794,052 Other liabilities 1,219,502

273,675,588 266,905,594 TOTAL LIABILITIES 317,617,836

STOCKHOLDERS'EQUITYPreferredstock-no statedvalue10,000,000 sharesauthorized and nosharesissued andoutstanding atSeptember 30,2021.Common stock - nopar value10,000,000 sharesauthorized;3,042,803 and3,036,603 sharesissued atSeptember 30, 2021and 20203,036,603 sharesissued at December31, 2020Additional 7,797,214 7,772,850 paid-in capital 7,949,809

Other ) 94,337 (72,890 )Comprehensive (205,945(loss) income 36,014,573 34,155,707 Retained earnings 37,439,761

Treasury stock at cost, 224,557 - -shares,at September 30, ) (1,615,460 ) (1,615,460 )2021 and 2020 and (1,615,460December 31, 2020TOTAL 42,290,664 40,240,206 STOCKHOLDERS' 43,568,164EQUITYTOTAL LIABILITIES $ 361,186,001 $ 315,966,252 $ 307,145,800 AND STOCKHOLDERS'EQUITY Book Value per $ $ 15.04 $ 14.31 share 15.46

BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMENINE MONTHS ENDED SEPTEMBER 30, 2021 and 2020 (UNAUDITED)September 30,2021

2020

INTEREST INCOMEInterest and fees on loans$

9,282,165

$

8,104,738

Interest on investments301,070

222,230

Interest on balances with banks65,151

77,062

TOTAL INTEREST INCOME9,648,385

8,404,031

INTEREST EXPENSEInterest on deposits888,667

1,777,678

Interest on borrowed funds277,384

141,081

Total interest expense1,166,052

1,918,759

NET INTEREST INCOME8,482,334

6,485,272

Provision for loan losses310,000

320,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES8,172,334

6,165,272

OTHER INCOMEService fees486,101

511,823

Gain on sale securities AFS-

159,183

Other income485,246

266,838

TOTAL OTHER INCOME971,347

877,110

OTHER EXPENSESSalaries and employee benefits3,499,340

3,397,708

Occupancy expenses470,463

623,274

Equipment expenses133,565

139,186

Other expenses2,098,700

1,771,000

TOTAL OTHER EXPENSES6,202,068

5,931,167

INCOME BEFORE INCOME TAX EXPENSE2,941,612

1,111,214

Income tax expense811,913

265,562

NET INCOME$

2,129,699

$

845,652

Earnings per share$

0.76

$

0.30

Earnings per share (Diluted)$

0.76

$

0.30

BRUNSWICKBANCORP ANDSUBSIDIARIESCONSOLIDATEDSTATEMENT OFINCOMENINE MONTHSENDED SEPTEMBER30, 2021 and September 30,2020(UNAUDITED) 2021 2020

INTERESTINCOME Interest and $ 9,282,165 $ 8,104,738 fees on loans Interest on 301,070 investments 222,230

Interest on 65,151 balances 77,062 with banks TOTAL 9,648,385 INTEREST 8,404,031 INCOME INTERESTEXPENSE Interest on 888,667 deposits 1,777,678

Interest on 277,384 borrowed 141,081 funds Total 1,166,052 interest 1,918,759 expense NET 8,482,334 INTEREST 6,485,272 INCOMEProvision 310,000 for loan 320,000losses NET INTEREST 8,172,334 INCOME AFTER 6,165,272 PROVISION FOR LOAN LOSSES OTHER INCOME Service 486,101 fees 511,823

Gain on sale securities - 159,183 AFS Other 485,246 income 266,838

TOTAL OTHER 971,347 INCOME 877,110

OTHEREXPENSES Salaries and 3,499,340 employee 3,397,708 benefits Occupancy 470,463 expenses 623,274

Equipment 133,565 expenses 139,186

Other 2,098,700 expenses 1,771,000

TOTAL OTHER 6,202,068 EXPENSES 5,931,167

INCOME BEFORE 2,941,612 INCOME TAX 1,111,214EXPENSEIncome tax 811,913 expense 265,562

$ 2,129,699 $ NET INCOME 845,652

Earnings $ 0.76 $ per share 0.30

Earnings per $ 0.76 $ share 0.30 (Diluted)BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMEQUARTER ENDED SEPTEMBER 30, 2021 and 2020 (UNAUDITED)September 30,2021

2020

INTEREST INCOMEInterest and fees on loans$

3,184,091

$

2,737,361

Interest on investments132,746

95,554

Interest on balances with banks26,337

17,768

TOTAL INTEREST INCOME3,343,174

2,850,683

INTEREST EXPENSEInterest on deposits284,206

515,454

Interest on borrowed funds95,408

63,579

Total interest expense379,613

579,033

NET INTEREST INCOME2,963,561

2,271,649

Provision for loan losses54,000

150,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES2,909,561

2,121,649

OTHER INCOMEService fees167,734

161,408

Gain on sale of OREO-

(60,734

)

Gain on sale of securities AFS-

26,560

Other income145,482

101,433

TOTAL OTHER INCOME313,215

228,667

OTHER EXPENSESSalaries and employee benefits1,216,236

1,087,276

Occupancy expenses137,614

188,050

Equipment expenses41,578

45,947

Other expenses634,593

622,534

TOTAL OTHER EXPENSES2,030,020

1,943,807

INCOME BEFORE INCOME TAX EXPENSE1,192,756

406,509

Income tax expense321,817

101,505

NET INCOME$

870,939

$

305,004

Earnings per share$

0.31

$

0.11

Earnings per share (Diluted)$

0.31

$

0.11

View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005790/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