Brunswick Bancorp Reports 2020 Full Year and Fourth Quarter Financial Results
Brunswick Bancorp (OTC: BRBW) reported robust financials for 2020, with total assets rising 31.77% to $316.0 million. The loan portfolio grew by 22.25% to $237.9 million, and deposits increased 19.65% to $232.2 million. Net income surged 113.42% to $2.705 million, driven by core business improvements and a $2.201 million gain from asset sales. A special cash dividend of $0.25 per share will be distributed on February 5, 2021. CEO Nicholas A. Frungillo emphasized continued growth amid the challenges of COVID-19.
- Net income increased by 113.42% to $2.705 million.
- Total assets rose by 31.77% to $316.0 million.
- Loan portfolio expanded by 22.25% to $237.9 million.
- Deposits increased by 19.65% to $232.2 million.
- Special cash dividend of $0.25 per share declared.
- Provision for loan losses increased to $525,000 due to COVID-19 impact.
- Net interest margin decreased to 3.50% from 3.98% year-over-year.
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 December 31, 2020.
Highlights:
-
Total assets increased
31.77% to$316.0 million from December 31, 2019; -
Loan portfolio increased
22.25% to$237.9 million from December 31, 2019; -
Deposits increased
19.65% to$232.2 million from December 31, 2019; -
Income for the twelve months ended December 31, 2020 increased
113.42% to$2.70 5 million from$1.26 7 million for prior year period; -
Income exclusive of non-core items for the twelve months ended December 31, 2020 increased
46.10% to$1.54 9 million compared to$1.06 0 million for the prior year period; -
The Company realized
$2.20 1 million in gains on sale of assets as it sold its George Street location during the fourth quarter.
“Brunswick Bancorp delivered a strong performance in 2020 amidst the unprecedented challenges presented by COVID-19,” said Nicholas A. Frungillo, Jr., President and Chief Executive Officer. “Our continuing initiatives to increase our top- and bottom-line led to substantial year over year growth in total assets, loans and deposits. As a result, we more than doubled annual net income in 2020 and increased our annual operating income by more than
Mr. Frungillo continued, “Looking ahead, we remain focused on continuing to drive top- and bottom-line performance, including through our lending efforts on commercial, retail and residential mortgages. We believe Brunswick is well positioned to succeed, and that we will have additional opportunities as the pandemic subsides. We will continue to operate in a manner that protects our customers and employees.”
Financial Summary for the Year ending December 31, 2020
At December 31, 2020, the Company had total assets of
Deposits grew to
Stockholders’ equity increased by
The Bank’s Net Interest Margin was
Net interest income was
Total other income was
Provisions for loan losses was
Net income was
|
2020 |
2019 |
Income before income tax |
3,884 |
1,795 |
Provision for loan losses |
525 |
- |
Security gains |
(159) |
- |
OREO valuation |
60 |
- |
Gain on sale other assets |
(2,221) |
(112) |
Non-accrual income - Recovered |
- |
(185) |
Cash Surrender Value Life Ins. |
15 |
(34) |
Total |
2,104 |
1,464 |
Tax effect |
555 |
404 |
Operating income |
1,549 |
1,060 |
Management considers the provision for loan losses in 2020 to be a non-core item due to the impact on the provision of the COVID-19 pandemic.
Financial Summary for the Three Months ended December 31, 2020
Net interest income was
Total other income was
Total non-interest expenses were
Provisions for loan losses was
Net income was
Nicholas A. Frungillo, Jr., Appointed President & CEO of the Company and the Bank
Brunswick also today announced that Mr. Frungillo has been named President and Chief Executive Officer of the Company and the Bank, effective immediately. Mr. Frungillo, who was previously President and Chief Operating Officer of Brunswick and President of the Bank, will continue to serve on the Company’s Board of Directors.
“Since joining Brunswick and the Bank in September 2016, Nick has been a driving force behind the strategic initiatives that have led to significant improvements in our financial and operational performance,” said Frank Gumina, Chairman of Brunswick. “My fellow directors and I look forward to continuing to work with Nick in his new role as Chief Executive Officer.”
“I am honored to be named Chief Executive Officer,” said Mr. Frungillo. “I want to thank all those who contributed to this promotion. I am excited to continue working with the Board and my colleagues to grow the business.”
Board Declares Special, One-Time Cash Dividend
Brunswick’s Board of Directors has declared a special, one-time cash dividend of
Operations During COVID-19 Pandemic
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 will be participating in the new PPP loan program, which commenced on January 15, 2021. 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 earlier this year. All borrowers granted the relief are currently making payments. A total of eighty five (85) accounts were granted relief, with seventy seven (77) of those accounts returning to principal and interest payments with eight accounts 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 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 DECEMBER 31, 2020 RESULTS | ||||||||||
| BRUNSWICK BANCORP AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||
| DECEMBER 31, 2020 and 2019 (UNAUDITED) | December 31, | December 31, | ||||||||
|
2020 |
|
|
2019 |
|
|||||
| ASSETS | ||||||||||
| Cash and due from banks | $ |
20,116,224 |
|
$ |
18,232,092 |
|
||||
| Securities held to maturity, at amortized cost |
|
3,524,079 |
|
|
4,947,028 |
|
||||
| Securities available for sale, at fair market value |
|
36,839,298 |
|
|
6,091,955 |
|
||||
| Restricted bank stock, at cost |
|
1,402,900 |
|
|
313,800 |
|
||||
| Loans receivable, net |
|
237,886,288 |
|
|
194,590,692 |
|
||||
| Premises and equipment, net |
|
4,350,047 |
|
|
4,899,205 |
|
||||
| Accrued interest receivable |
|
875,142 |
|
|
678,059 |
|
||||
| Other real estate |
|
4,894,031 |
|
|
5,373,664 |
|
||||
| Other assets |
|
6,078,244 |
|
|
4,657,101 |
|
||||
| TOTAL ASSETS | $ |
315,966,252 |
|
$ |
239,783,596 |
|
||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Deposits | ||||||||||
| Non-interest bearing | $ |
58,462,505 |
|
$ |
45,155,982 |
|
||||
| Interest bearing |
|
173,772,135 |
|
|
148,944,198 |
|
||||
| Total deposits |
|
232,234,640 |
|
|
194,100,180 |
|
||||
| Borrowed funds |
|
37,427,067 |
|
|
3,200,000 |
|
||||
| Accrued interest payable |
|
589,403 |
|
|
493,421 |
|
||||
| Advances from borrowers for taxes and insurance |
|
1,063,488 |
|
|
1,300,744 |
|
||||
| Other liabilities |
|
2,360,991 |
|
|
1,317,985 |
|
||||
| TOTAL LIABILITIES |
|
273,675,588 |
|
|
200,412,329 |
|
||||
| STOCKHOLDERS' EQUITY | ||||||||||
| Preferred stock-no stated value | ||||||||||
| 10,000,000 shares authorized and no shares | ||||||||||
| issued and outstanding at December 31, 2020. | ||||||||||
| Common stock - no par value | ||||||||||
| 10,000,000 shares authorized; | ||||||||||
| 3,036,603 shares issued at December 31, 2020 and 2019 | ||||||||||
| Additional paid-in capital |
|
7,797,214 |
|
|
7,699,758 |
|
||||
| Other Comprehensive Loss |
|
94,337 |
|
|
(18,335 |
) |
||||
| Retained earnings |
|
36,014,573 |
|
|
33,310,055 |
|
||||
| Treasury stock at cost, 224,557 and 225,057 shares, | ||||||||||
| at December 31, 2020 and 2019 |
|
(1,615,460 |
) |
|
(1,620,210 |
) |
||||
| TOTAL STOCKHOLDERS' EQUITY |
|
42,290,664 |
|
|
39,371,267 |
|
||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
315,966,252 |
|
$ |
239,783,596 |
|
||||
| Book Value per share | $ |
15.04 |
|
$ |
14.00 |
|
||||
| BRUNSWICK BANCORP AND SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||
| YEAR ENDED DECEMBER 31, 2020 and 2019 (UNAUDITED) | December 31, | ||||||||
|
2020 |
|
|
2019 |
|||||
| INTEREST INCOME | |||||||||
| Interest and fees on loans | $ |
10,962,733 |
|
$ |
10,083,312 |
||||
| Interest on investments |
|
349,603 |
|
|
217,000 |
||||
| Interest on balances with banks |
|
91,466 |
|
|
152,605 |
||||
| TOTAL INTEREST INCOME |
|
11,403,802 |
|
|
10,452,917 |
||||
| INTEREST EXPENSE | |||||||||
| Interest on deposits |
|
2,162,864 |
|
|
2,302,745 |
||||
| Interest on borrowed funds |
|
211,473 |
|
|
139,511 |
||||
| Total interest expense |
|
2,374,337 |
|
|
2,442,255 |
||||
| NET INTEREST INCOME |
|
9,029,465 |
|
|
8,010,662 |
||||
| Provision for loan losses |
|
525,000 |
|
|
- |
||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
|
8,504,465 |
|
|
8,010,662 |
||||
| OTHER INCOME | |||||||||
| Service fees |
|
672,544 |
|
|
818,939 |
||||
| Gain on sale of OREO |
|
(60,635 |
) |
|
- |
||||
| Gain on sale securities AFS |
|
159,183 |
|
||||||
| Gain on sale of assets |
|
2,200,713 |
|
|
111,823 |
||||
| Other income |
|
418,831 |
|
|
368,607 |
||||
| TOTAL OTHER INCOME |
|
3,390,635 |
|
|
1,299,369 |
||||
| OTHER EXPENSES | |||||||||
| Salaries and employee benefits |
|
4,553,696 |
|
|
4,158,499 |
||||
| Occupancy expenses |
|
783,061 |
|
|
1,123,254 |
||||
| Equipment expenses |
|
186,852 |
|
|
186,715 |
||||
| Other expenses |
|
2,622,477 |
|
|
2,072,544 |
||||
| TOTAL OTHER EXPENSES |
|
8,146,086 |
|
|
7,541,012 |
||||
| INCOME BEFORE INCOME TAX EXPENSE |
|
3,749,014 |
|
|
1,769,018 |
||||
| Income tax expense |
|
1,044,495 |
|
|
501,817 |
||||
| NET INCOME | $ |
2,704,519 |
|
$ |
1,267,201 |
||||
| Earnings per share | $ |
0.96 |
|
$ |
0.45 |
||||
| Earnings per share (Diluted) | $ |
0.96 |
|
$ |
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