Business Wire | Jan 24, 2022 02:51PM EST

Brunswick Bancorp Reports Strong 2021 Full Year and Fourth Quarter Financial Results

Jan. 24, 2022

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Jan. 24, 2022--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 full year and fourth quarter ended December 31, 2021.

Financial Highlights:

* Total assets increased 17.80% to $372.2 million from December 31, 2020; * Loan portfolio increased 16.24% to $276.5 million from December 31, 2020; * Deposits increased 19.53% to $277.6 million from December 31, 2020; * Net income increased 24.51% to $3.367 million compared to the prior year period. * Net income per share increased to $1.19 per diluted share compared to $0.96 per diluted share in the prior year period. * Core earnings increased 206.35% compared to the prior year period.

"Brunswick Bancorp delivered strong results for 2021 from the execution of our strategic growth plan to increase top- and bottom-line performance," said Nicholas A. Frungillo, Jr., President and Chief Executive Officer of the Company and the Bank. "Our continued focus on growth, cost reduction, marketing and business development have helped the Company realize substantial year-over-year growth in total assets, loans, deposits and net income."

Mr. Frungillo continued, "Thanks to consistent execution of our strategic initiatives, we have more than tripled Brunswick's return on average assets over the last four years and we believe that Brunswick is well positioned for continued success. While we are proud of the progress we have made, the Board and management team remain focused on improving our top- and bottom-line performance and enhancing shareholder value."

Financial Summary for the Twelve Months ending December 31, 2021

At December 31, 2021, the Company had total assets of $372.2 million, an increase of $56.2 million or 17.80% over the December 31, 2020 total of $316.0 million. The growth was mainly driven by management's previously implemented marketing and business development initiatives. Cash and due from banks was $35.1 million at December 31, 2021, an increase of $15.0 million or 74.47% over the prior year-end due to quarter end fluctuations and a $3.2 million loan paying off. The loan portfolio grew to $276.5 million at December 31, 2021, an increase of $38.6 million or 16.24% since December 31, 2020. Growth was primarily in loans secured by commercial real estate. The growth in the loan portfolio reflected loan originations of $83.1 million during the twelve months ended December 31, 2021, partially offset by $17.7 million in PPP loan forgiveness and $26.8 million in early payoffs. Securities increased to $42.1 million, up $1.8 million, or 4.36%, 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 $277.6 million at December 31, 2021, an increase of $45.4 million, or 19.53%, from December 31, 2020 as a result of management's increased marketing efforts. The average rate paid on the deposit portfolio declined to 0.58% for the twelve months ended December 31, 2021 from 1.30% for the comparable prior year period. FHLB borrowing increased by $15.0 million to $41.7 million at December 31, 2021 as the Bank locked in longer term borrowings at lower rates than retail deposits and to match fund certain loans. 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 $2.3 million to $44.6 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 3.62% for the twelve months ended December 31, 2021 compared to 3.50% for the twelve months ended December 31, 2020. The Bank's cost of deposits decreased to 0.58% for the twelve months ended December 31, 2021 from 1.30% for the comparative period in 2020 due to lower rates that prevailed during 2021. The Bank's yield on interest earning assets decreased to 4.09% for the twelve months ended December 31, 2021 from 4.44% for the same period last year due to the lower rate environment.

Net interest income was $11.774 million for the twelve months ended December 31, 2021, an increase of $2.744 million, or 30.40%, from $9.029 million for the comparable period of 2020. Loan income grew to $12.779 million for the twelve months ending December 31, 2021, an increase of $1.816 million, or 16.56%, from $10.963 million for the same period a year ago due to higher outstanding balances. Interest expense was $1.517 million for the twelve months ended December 31, 2021, a decrease of $857 thousand, or 36.12%, when compared to $2.374 million for the same period a year ago due to lower market rates more than offsetting the increase in deposits.

Total other income was $1.723 million for the twelve months ended December 31, 2021, a decrease of $1.668 million or 49.20%, over the same period a year ago. The Company realized $453 thousand on the sale of SBA loans in 2021. Going forward, the Bank plans on continuing to sell off the guaranteed portion of SBA loans that it originates into the secondary market. During the prior period, the Company realized $2.201 million on the sale of its George Street branch and $159 thousand in gains on securities as the Company repositioned its investment portfolio. In 2020, the securities sold were replaced by similar securities with essentially the same effective duration and a nominally higher yield. Service fees on deposit accounts were flat for the twelve months ended December 31, 2021, when compared to the same period a year ago due to reduced activity during the COVID-19 pandemic.

Total non-interest expenses were $8.476 million for the twelve months ended December 31, 2021, an increase of $330 thousand, or 4.05% over the same period a year ago. Salaries increased by $184 thousand for the twelve months ended December 31, 2021 compared to the same period last year. Occupancy expenses declined to $596 thousand, a reduction of $187 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 $343 thousand to $2.965 million for the twelve months ended December 31, 2021 when compared to $2.622 million for the same period a year ago, due to professional fees related to the 2021 proxy contest.

The provision for loan losses was $310 thousand for the twelve months ended December 31, 2021 as compared to $525 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. 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 two loans, with $2.6 million in principal, remain on principal deferral and are making interest only payments.

Net income was $3.367 million, or $1.19 per diluted share, for the twelve months ended December 31, 2021 compared to $2.705 million, or $0.96 per diluted share, for the same period a year ago, an increase of $663 thousand or 24.51%. Income before income taxes and provision for loan losses was $5.021 million, an increase of $747 thousand, or 17.47%, over the same period a year ago. Core earnings (adjusted as set forth in the chart below) increased by $2.195 million or 206.35% over the same period a year ago. The Company's return on average assets (ROAA) for the year ended December 31, 2021 was 0.95%, compared to 0.96% for the year ended December 31, 2020. On a core basis, the Company's ROAA for the year ended December 31, 2021 was 0.92%, compared to 0.38% for the year ended December 31, 2020.

Brunswick BancorpCore Earnings ComparisonYear Ended December 31 2021 2020

Income before income tax 4,711 3,749

Security gains - (159 )

OREO valuation - 61

Gain on sale other assets - (2,221 )

Cash Surrender Value Life Ins. - 15

Non-accrual income - Recovered (75 ) -

George Street Adjustment (78 ) -

Total 4,558 1,445

Tax effect 1,300 381

Operating income 3,258 1,064

YOY Increase 2,195

YOY % 206.35 %

Financial Summary for the Three Months ended December 31, 2021

Net interest income was $3.292 million for the three months ended December 31, 2021, an increase of $747 thousand, or 29.38%, from $2.544 million for the same period a year ago. Loan income was $3.497 million for the three months ending December 31, 2021, an increase of $638 thousand, or 22.34%, from $2.858 million for the same period a year ago due to higher outstanding balances. Interest expense was $351 thousand for the three months ended December 31, 2021, a decrease of $105 thousand, or 23.01% when compared to $456 thousand for the same period a year ago, primarily due to lower market interest rates more than offsetting the increase in deposits.

Total other income was $751 thousand for the three months ended December 31, 2021, a decrease of $1.762 million or 70.11% when compared to $2.514 million for the same period a year ago. During the fourth quarter of 2020, the Company realized $2.201 million in gains on the sale of its George Street branch. The Company realized $453 thousand in gains on the sale of SBA loans during 2021, while there were no such gains in 2020. Service fees on deposit accounts increased by $25 thousand or 15.72% for the three months ended December 31, 2021, when compared to service fees of $161 thousand for the same period a year ago.

Total non-interest expenses were $2.274 million for the three months ended December 31, 2021, an increase of $59 thousand, or 2.66% when compared to $2.215 million for the same period a year ago. Salaries increased by $83 thousand to $1.239 million for the three months ended December 31, 2021 compared to $1.156 million for the same period a year ago. Occupancy expenses decreased to $125 thousand, a reduction of $34 thousand from $160 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 $15 thousand to $866 thousand for the three months ended December 31, 2021 when compared to $851 thousand for the same period last year primarily due to an increase of $59 thousand related to OREO expenses.

There were no provisions for loan losses for the three months ended December 31, 2021 compared to $205 thousand in the comparable 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 $1.238 million, or $0.44 per diluted share, for the three months ended December 31, 2021 compared to $1.859 million, or $0.66 per diluted share, for the same period a year ago, a decrease of $621 thousand or 33.42%, reflecting the sale of the George Street branch in 2020. Income before income taxes and provision for loan losses was $1.769 million, a decrease of $1.074 million, or 37.77%, over the same period a year ago. Core earnings increased by $944 thousand or 321.15% over the same period a year ago.

Brunswick Bancorp

Core Earnings Comparison

Quarter Ended December 31



Q 4 2021 Q 4 2020

Income before income tax 1,769 2,638

Gain on sale other assets - (2,221 )





Total 1,769 417

Tax effect 531 123

Operating income 1,238 294



QOQ Increase 944

QOQ % 321.15 %

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 DECEMBER 31, 2021RESULTS BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED BALANCE SHEET (UNAUDITED)DECEMBER 31, 2021 and 2020 (UNAUDITED) December 31, December 31, 2021 2020

ASSETS Cash and due from banks $ 35,096,857 $ 20,116,224

Securities held to maturity, at amortized 2,366,957 3,524,079 cost Securities available for sale, at fair market 39,757,972 36,839,298 value Restricted bank stock, at cost 2,180,400 1,402,900

Loans receivable, net 276,522,265 237,886,288

Premises and equipment, net 4,856,705 4,350,047

Accrued interest receivable 905,547 875,142

Other real estate 4,894,031 4,894,031

Other assets 5,612,004 6,078,244

TOTAL ASSETS $ 372,192,738 $ 315,966,252

LIABILITIES AND STOCKHOLDERS'EQUITY Deposits Non-interest bearing $ 74,814,362 $ 58,462,505

Interest bearing 202,788,610 173,772,135

Total deposits 277,602,972 232,234,640

Borrowed funds 47,171,855 37,427,067

Accrued interest 401,859 589,403 payable Advances from borrowers for taxes and 1,341,682 1,063,488 insurance Other liabilities 1,081,641 2,360,991

TOTAL LIABILITIES 327,600,009 273,675,588

STOCKHOLDERS' EQUITY Preferred stock-no stated value 10,000,000 shares authorized and no shares issued and outstanding at December 31, 2021. Common stock - no par value 10,000,000 shares authorized; 3,042,803 and 3,036,603 shares issued at December 31, 2021 and 2020 Additional paid-in 7,983,422 7,797,214 capital Other Comprehensive (loss) income (452,578 ) 94,337

Retained earnings 38,677,345 36,014,573

Treasury stock at cost, 224,557 shares, at December 31, 2021 and 2020 (1,615,460 ) (1,615,460 )

TOTAL STOCKHOLDERS' EQUITY 44,592,729 42,290,664

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 372,192,738 $ 315,966,252

Book Value per share $ 15.82 $ 15.04

BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMEYEAR ENDED DECEMBER 31, 2021 and 2020 December 31,(UNAUDITED) 2021 2020

INTERESTINCOME Interest and fees on loans $ 12,778,650 $ 10,962,733

Interest on investments 424,020 349,603

Interest on balances with banks 88,109 91,466

TOTAL INTEREST INCOME 13,290,778 11,403,802

INTERESTEXPENSE Interest on deposits 1,147,005 2,162,864

Interest on borrowed funds 369,801 211,473

Total interest expense 1,516,806 2,374,337

NET INTEREST INCOME 11,773,972 9,029,465

Provision for loan 310,000 525,000 losses NET INTEREST INCOME AFTER PROVISION FOR LOAN 11,463,972 8,504,465 LOSSES OTHER INCOME Service fees 672,207 672,544

Gain on sale of loans 453,331 -

Gain on sale of OREO - (60,635 )

Gain on sale securities AFS - 159,183

Gain on sale of assets - 2,200,713

Other income 596,978 418,831

TOTAL OTHER INCOME 1,722,516 3,390,635

OTHER EXPENSES Salaries and employee benefits 4,737,952 4,553,696

Occupancy expenses 595,924 783,061

Equipment expenses 176,814 186,852

Other expenses 2,965,119 2,622,477

TOTAL OTHER EXPENSES 8,475,810 8,146,086

INCOME BEFORE INCOME TAX EXPENSE 4,710,679 3,749,014

Income tax expense 1,343,396 1,044,495

NET INCOME $ 3,367,283 $ 2,704,519

Earnings per share $ 1.19 $ 0.96

Earnings per share (Diluted) $ 1.19 $ 0.96

BRUNSWICK BANCORP AND SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOMEQUARTER ENDED DECEMBER 31, 2021 and 2020 December 31,(UNAUDITED) 2021 2020

INTERESTINCOME Interest and fees on loans $ 3,496,485 $ 2,857,995

Interest on investments 122,950 127,373

Interest on balances with banks 22,958 14,404

TOTAL INTEREST INCOME 3,642,393 2,999,771

INTERESTEXPENSE Interest on deposits 258,337 385,186

Interest on borrowed funds 92,417 70,392

Total interest expense 350,754 455,578

NET INTEREST INCOME 3,291,639 2,544,193

Provision for loan - 205,000 losses NET INTEREST INCOME AFTER PROVISION FOR LOAN 3,291,639 2,339,193 LOSSES OTHER INCOME Service fees 186,105 160,820

Gain on sale of loans 453,331 -

Gain on sale of assets - 2,200,713

Other income 111,733 151,992

TOTAL OTHER INCOME 751,169 2,513,525

OTHER EXPENSES Salaries and employee benefits 1,238,612 1,155,988

Occupancy expenses 125,461 159,787

Equipment expenses 43,249 47,666

Other expenses 866,419 851,478

TOTAL OTHER EXPENSES 2,273,741 2,214,919

INCOME BEFORE INCOME TAX EXPENSE 1,769,066 2,637,800

Income tax expense 531,483 778,933

NET INCOME $ 1,237,583 $ 1,858,867

Earnings per share $ 0.44 $ 0.66

Earnings per share (Diluted) $ 0.44 $ 0.66

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005700/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