Brunswick Bancorp Reports 2022 First Quarter Financial Results

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 quarter ended March 31, 2022.

Financial Highlights for the First Quarter of 2022:

• Total assets, loans and deposits were essentially unchanged for the period ending March 31, 2022, when compared to December 31, 2021; assets increased by $28.5 million or 8.29%, loans increased by $24.4 million or 9.61% and deposits increased by $24.8 million or 9.86% from March 31, 2021.
• Net income per share increased to $0.26 per diluted share for the three months ended March 31, 2022 compared to $0.19 per diluted share in the prior year period up 36.42%.
• Core earnings increased 54.75% compared to the prior year period
• Net income increased 38.95% to $767 thousand for the three months ending March 31, 2022 compared to the same period a year ago.

“Brunswick Bancorp’s first quarter performance reflects the substantial growth we have achieved over the last several years. The execution of initiatives to grow the top- and bottom-line and expand margins continues to yield improving returns year-over-year,” said Nicholas A. Frungillo, Jr., President and Chief Executive Officer of the Company and the Bank. “We remain focused on marketing and business development efforts, strategically repositioning the asset portfolio and driving cost reduction efforts to help the Company achieve sustainable growth in our key metrics, including total assets, loans, deposits and net income.”

Mr. Frungillo continued, “We are confident that the progress we have made has created a strong foundation and positioned Brunswick to capture additional growth opportunities ahead. The Board and management team remain committed to enhancing shareholder value and improving top- and bottom-line performance.”

Balance Sheet Summary for Comparable Quarter

At March 31, 2022, the Company had total assets of $372.8 million, an increase of $28.5 million or 8.29% over the March 31, 2021 balance of $344.3 million. The growth was mainly driven by new loan demand as a result of management’s increased business development efforts and participation in the Paycheck Protection Program (“PPP”). Cash and due from banks was $34.0 million at March 31, 2022, essentially unchanged from $34.6 million for the same period last year. The loan portfolio grew to $277.9 million at March 31, 2022 compared to March 31, 2021, an increase of $24.4 million or 9.61%. New loan originations were $96.9 million for the twelve months ending March 31, 2022, while loan payoffs/amortizations totaled $72.5 million. Securities increased to $41.4 million, up $3.1 million or 8.05% million from the balance at March 31, 2021 of $38.3 million.

All loans that were previously granted payment deferrals during the paramedic have returned to regularly scheduled principal and interest payments.

Deposits were $276.8 million at March 31, 2022, an increase of $24.8 million or 9.86% from the March 31, 2021 balance of $251.9 million. FHLB borrowings increased to $46.7 million at March 31, 2022 from the March 31, 2021 balance of $31.7 million.

Stockholders’ equity increased by $1.9 million to $43.6 million at March 31, 2022 as a result of earnings retention net of the change of unrealized losses and the $341 special dividend paid in February 2002. The Bank meets all criteria to be considered “Well Capitalized”.

Balance Sheet Summary Compared to Year End

At March 31, 2022, the Company had total assets of $372.8 million, essentially the same from December 31, 2021. Cash and due from banks was $34.0 million at March 31, 2022, a decrease of $1.1 million over year-end balances. The loan portfolio grew to $277.9 million at March 31, 2022, an increase of $1.3 million since December 31, 2021. New loans originations were $18.9 million for the three months ending March 31, 2022, while loan payoffs/amortizations totaled $17.6 million. Securities decreased to $41.4 million, down $700 thousand from the balance at December 31, 2021 of $41.2 million.

Deposits were $276.8 million at March 31, 2022, also essentially unchanged from December 31, 2021. FHLB borrowings increased to $46.7 million at March 31, 2022 from the December 31, 2021 balance of $41.7 million.

Stockholders’ equity decreased by $966 thousand to $43.6 million due to the $341 thousand special dividend that was paid in February 2022 and 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 3.70% for the three months ended March 31, 2022 compared to 3.68% for the quarter ended March 31, 2021. The Bank’s cost of deposits decreased to 0.48% at March 31, 2022 down from 0.68% for the comparative period in 2021. The Bank’s yield on interest earning assets decreased to 4.14% for the quarter ended March 31, 2022 from 4.21% for the same period last year. The declines in the cost of deposits and the yield on earning assets both reflect the prevailing low rate interest environment.

Income Statement Comparison for the quarter ended March 31, 2022 compare to the quarter ended March 31, 2021

Net interest income was $3.039 million for the three months ended March 31, 2022, an increase of $326 thousand, or 12.00%, from $2.714 million for the comparable period of 2021. Loan income grew to $3.228 million for the first quarter of 2022, an increase of $202 thousand, or 6.66%, from $3.026 million for the same period a year ago due to higher outstanding loans. PPP fees were $103 thousand for the three months ending March 31, 2022 compared to $240 thousand for the same period a year ago. Interest expense was $358 thousand for the quarter ended March 31, 2022, a decrease of $29 thousand, or 7.61%, when compared to $386 thousand for the quarter ended March 31, 2021, as the Bank was able to reprice its deposits at lower interest rates. Total other income was $286 thousand for the quarter ended March 31, 2022 a decrease of $53 thousand compared to the same period a year ago as the prior period contained a one-time adjustment of $78 thousand related to the Bank’s sale of its George Street branch. Total non-interest expenses were $2.265 million, an increase of $81 thousand for the quarter ended March 31, 2022, when compared to $2.183 million for the same period last year. Salaries increased by $212 thousand for the quarter ended March 31, 2022 compared to the same period last year due to increased salaries and employee benefits. Occupancy expenses declined to $148 thousand, a reduction of $29 thousand from the quarter ended March 31, 2021 due to previously implemented branch purchases reducing leasing expense. Other expenses decreased by $98 thousand to $733 thousand for the quarter ended March 31, 2022 when compared to $830 thousand for the quarter ended March 31, 2021, as the Bank has experienced a decrease in Legal and Professional fees, primarily related to addressing certain shareholder related activity.

There were no provisions for loan losses during the first quarter of 2022 and a $109 thousand provision for the quarter ended March 31, 2021. Management believes the allowance is adequate based on the inherent risk associated within the loan portfolio, will continue to actively monitor the Bank’s loan portfolio in light of the continued uncertainty and may increase provisions for loan losses in the future.

Net income was $767 thousand for the three months ended March 31, 2022 an increase of $215 thousand or 38.95% compared to $552 thousand for the comparable period of 2021.

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.

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