Brunswick Bancorp Reports 2021 First Quarter Financial Results

Rhea-AI Summary

Brunswick Bancorp (OTC: BRBW) reported strong Q1 2021 results, with total assets increasing by 8.96% to $344.3 million, driven by new loan demand and participation in the Paycheck Protection Program (PPP). Net income surged 139.35% to $552,000 compared to Q1 2020. Loans grew by 6.57% to $253.5 million, while deposits rose 8.49% to $251.9 million. Despite a decrease in yield on interest-earning assets from 4.97% to 4.21%, net interest income rose 27.75% to $2.714 million. The Bank remains well-capitalized and continues to monitor loan loss provisions due to COVID-19 impacts.

Positive

• Net income increased by 139.35% to $552,000.
• Total assets rose 8.96% to $344.3 million.
• Loan portfolio grew by 6.57% to $253.5 million.
• Deposits increased by 8.49% to $251.9 million.
• Net interest income rose 27.75% to $2.714 million.

Negative

• Stockholders' equity decreased by $520,000 due to a special dividend.
• Yield on interest-earning assets fell from 4.97% to 4.21%.
• Provisions for loan losses increased to $109,000 amid pandemic concerns.

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, 2021.

Financial Highlights for the First Quarter of 2021:

• Total assets increased 8.96% to $344.3 million from December 31, 2020;
• Loan portfolio increased 6.57% to $253.5 million from December 31, 2020; and
• Deposits increased 8.49% to $251.9 million from December 31, 2020.
• Net income increased 139.35% to $552 thousand compared to the same period a year ago.

“Brunswick’s performance in the first quarter builds upon strong 2020 results as we continue to realize the benefits of our tried-and-true marketing and business development efforts and participation in the Paycheck Protection Program,” said Nicholas A. Frungillo, Jr., President and Chief Executive Officer of the Company and the Bank. “We remain confident that our strategy to drive top- and bottom-line performance will continue to grow Brunswick’s assets, loans, deposits and net income.”

Mr. Frungillo continued, “Brunswick is committed to enhancing shareholder value. Looking ahead, we believe Brunswick is well positioned to succeed and will have additional opportunities as the pandemic subsides.”

Financial Summary for the Quarter Ended March 31, 2021

At March 31, 2021, the Company had total assets of $344.3 million, an increase of $28.3 million or 8.96% over the December 31, 2020 total of $316.0 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 $34.6 million at March 31, 2021, an increase of $14.4 million or 71.85% over year-end due to both the Paycheck Protection Program Liquidity Facility and marketing efforts. The loan portfolio grew to $253.5 million at March 31, 2021, an increase of $15.6 million or 6.57% since December 31, 2020. PPP loan growth was $4.1 million during the quarter and traditional lending activities accounted for the remaining growth of $11.5 million. Securities decreased to $38.3 million, down $2.0 million, or 5.00%, from the balance at December 31, 2020 of $40.3 million, as principal paydowns increased as lower interest rates remain.

Deposits grew to $251.9 million at March 31, 2021, an increase of $19.7 million, or 8.49%, from December 31, 2020 as a result of management’s increased marketing efforts, as management has focused on originating core deposits to strengthen the deposit portfolio and enhance franchise value. FHLB borrowing remained unchanged at March 31, 2021 from its December 31, 2020 balance of $31.7 million. Stockholders’ equity decreased by $520 thousand to $41.8 million due to the $705 thousand special one-time dividend that was paid in February 2021 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 3.68% for the three months ended March 31, 2021 compared to 3.70% for the quarter ended March 31, 2020. The Bank’s cost of deposits decreased to 0.68% at March 31, 2021 down from 1.68% for the comparative period in 2020. The Bank’s yield on interest earning assets decreased to 4.21% for the quarter ended March 31, 2021 from 4.97% for the same period last year.

Net interest income was $2.714 million for the three months ended March 31, 2021, an increase of $589 thousand, or 27.75%, from $2.124 million for the comparable period of 2020. Loan income grew to $3.026 million for the first quarter of 2021, an increase of $309 thousand, or 11.39%, from $2.717 million for the same period a year ago due to higher outstanding loans. Interest expense was $387 thousand for the quarter ended March 31, 2021, a decrease of $308 thousand, or 44.36%, when compared to $695 thousand for the quarter ended March 31, 2020, as the Bank was able to reprice its deposits at much lower interest rates. Total other income was $340 thousand for the quarter ended March 31, 2021 an increase of $78 thousand compared to the same period a year ago. Total non-interest expenses were $2.183 million, an increase of $176 thousand for the quarter ended March 31, 2021, when compared to $2.007 for the same period last year. Salaries decreased by $30 thousand for the quarter ended March 31, 2021 compared to the same period last year. Occupancy expenses declined to $177 thousand, a reduction of $58 thousand from the quarter ended March 31, 2020 due to previously implemented branch purchases versus leasing the branches. Other expenses grew by $262 thousand to $830 thousand for the quarter ended March 31, 2021 when compared to $567 thousand for the quarter ended March 31, 2020, as the Bank has experienced an increase in Legal and Professional fees, primarily related to addressing certain shareholder related activity.

Provisions for loan losses was $109 thousand for the quarter ended March 31, 2021 as compared to $80 thousand during 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, as well as the continued growth in the loan portfolio. Management continues 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 $552 thousand for the three months ended March 31, 2021 an increase of $321 thousand or 139.35% compared to $231 thousand for the comparable period of 2020.

Operations During COVID-19 Pandemic

As previously disclosed, branch lobbies are open on a limited basis following guidelines from the CDC and the State of New Jersey. In addition, to assist customers, the Bank is 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. 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 MARCH 31, 2021 RESULTS
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
MARCH 31, 2021 and 2020 (UNAUDITED)						March 31,				December 31,
							2021				2020
ASSETS
	Cash and due from banks					$	34,568,986			$	20,116,224
	Securities held to maturity, at amortized cost						3,196,599				3,524,079
	Securities available for sale, at fair market value						35,147,294				36,839,298
	Restricted bank stock, at cost						1,627,900				1,402,900
	Loans receivable, net						253,520,774				237,886,288
	Premises and equipment, net						4,305,137				4,350,047
	Accrued interest receivable						876,244				875,142
	Other real estate						4,894,031				4,894,031
	Other assets						6,130,233				6,078,244
		TOTAL ASSETS				$	344,267,196			$	315,966,252
LIABILITIES AND STOCKHOLDERS' EQUITY
	Deposits
	Non-interest bearing					$	63,919,726			$	58,462,505
	Interest bearing						188,020,921				173,772,135
		Total deposits					251,940,647				232,234,640
	Borrowed funds						46,128,521				37,427,067
	Accrued interest payable						372,490				589,403
	Advances from borrowers for taxes and insurance						1,220,955				1,063,488
	Other liabilities						2,833,902				2,360,991
		TOTAL LIABILITIES					302,496,516				273,675,588
STOCKHOLDERS' EQUITY
	Preferred stock-no stated value
	10,000,000 shares authorized and no shares
	issued and outstanding at March 31, 2021.
	Common stock - no par value
	10,000,000 shares authorized;
	3,042,803 and 3,036,603 shares issued at March 31, 2021 and 2020
	Additional paid-in capital						7,884,767				7,797,214
	Other Comprehensive Loss						(360,743	)			94,337
	Retained earnings						35,862,117				36,014,573
	Treasury stock at cost, 224,557 and 224,557 shares,										-
	at March 31, 2021 and 2020						(1,615,460	)			(1,615,460	)
		TOTAL STOCKHOLDERS' EQUITY					41,770,680				42,290,664
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	344,267,196			$	315,966,252
	Book Value per share					$	14.82			$	15.04
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31, 2021 and 2020 (UNAUDITED)						March 31,
							2021				2020
INTEREST INCOME
	Interest and fees on loans					$	3,026,198			$	2,716,866
	Interest on investments						58,145				52,547
	Interest on balances with banks						16,404				50,368
		TOTAL INTEREST INCOME					3,100,747				2,819,781
INTEREST EXPENSE
	Interest on deposits						299,699				672,270
	Interest on borrowed funds						87,284				23,185
		Total interest expense					386,983				695,455
	NET INTEREST INCOME						2,713,764				2,124,326
Provision for loan losses							109,000				80,000
	NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES						2,604,764				2,044,326
OTHER INCOME
	Service fees						155,086				190,682
	Other income						184,464				71,811
		TOTAL OTHER INCOME					339,549				262,493
OTHER EXPENSES
	Salaries and employee benefits						1,128,326				1,158,060
	Occupancy expenses						177,475				235,362
	Equipment expenses						47,297				46,193
	Other expenses						830,323				567,387
		TOTAL OTHER EXPENSES					2,183,421				2,007,002
INCOME BEFORE INCOME TAX EXPENSE							760,892				299,817
Income tax expense							208,837				69,173
		NET INCOME				$	552,055			$	230,644
	Earnings per share					$	0.20			$	0.08
	Earnings per share (Diluted)					$	0.20			$	0.08

 

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FAQ

What are the latest earnings results for Brunswick Bancorp (BRBW)?

Brunswick Bancorp reported a net income of $552,000 for Q1 2021, a 139.35% increase compared to the same period last year.

How much did total assets grow for Brunswick Bancorp in Q1 2021?

Total assets increased by 8.96% to $344.3 million from December 31, 2020.

What was the loan growth for Brunswick Bancorp in Q1 2021?

The loan portfolio grew by 6.57% to $253.5 million.

How did COVID-19 impact Brunswick Bancorp's financials?

The bank increased provisions for loan losses to $109,000 due to pandemic-related concerns.

What are the deposit trends for Brunswick Bancorp (BRBW)?

Deposits rose by 8.49% to $251.9 million in Q1 2021.