Brunswick Bancorp Reports 2022 First Quarter Financial Results

Rhea-AI Summary

Brunswick Bancorp (OTC: BRBW) reported strong financial results for Q1 2022, highlighting significant growth in key metrics. Total assets increased by 8.29% to $372.8 million year-over-year, with loans and deposits rising by 9.61% and 9.86%, respectively. Net income surged 38.95% to $767,000, while earnings per share grew 36.42% to $0.26. The bank's net interest margin improved slightly to 3.70%. Despite challenges from a low-interest-rate environment, management remains optimistic about future growth, focusing on enhancing shareholder value through strategic initiatives.

Positive

• Net income increased by 38.95% to $767,000.
• Earnings per share rose to $0.26, up 36.42%.
• Loans grew by 9.61% year-over-year, reaching $277.9 million.
• Deposits increased by 9.86% to $276.8 million.
• Net interest income rose by 12% to $3.039 million.

Negative

• Total assets were essentially unchanged from December 31, 2021.
• Decrease in total other income by $53,000 compared to the prior year.
• FHLB borrowings increased to $46.7 million from $41.7 million.

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- 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.

 

BRUNSWICK BANCORP REPORTS MARCH 31, 2022 RESULTS
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (UNAUDITED)
MARCH 31,2022 and 2021 (UNAUDITED)						March 31,			December 31,			March 31,
							2022			2021			2021
ASSETS
	Cash and due from banks					$	33,971,758		$	35,096,857		$	34,568,986
	Securities held to maturity, at amortized cost						2,153,241			2,366,957			3,196,599
	Securities available for sale, at fair market value						39,275,836			39,757,972			35,147,294
	Restricted bank stock, at cost						2,405,400			2,180,400			1,627,900
	Loans receivable, net						277,871,622			276,522,265			253,520,774
	Premises and equipment, net						4,894,871			4,856,705			4,305,137
	Accrued interest receivable						984,328			905,547			876,244
	Other real estate						4,894,031			4,894,031			4,894,031
	Other assets						6,345,151			5,612,004			6,130,233
		TOTAL ASSETS				$	372,796,238		$	372,192,738		$	344,267,196
LIABILITIES AND STOCKHOLDERS' EQUITY
	Deposits
	Non-interest bearing					$	71,179,357		$	74,814,362		$	63,919,726
	Interest bearing						205,604,281			202,788,610			188,020,921
		Total deposits					276,783,638			277,602,972			251,940,647
	Borrowed funds						49,093,207			47,171,855			46,128,521
	Accrued interest payable						315,242			401,859			372,490
	Advances from borrowers for taxes and insurance						1,424,460			1,341,682			1,220,955
	Other liabilities						1,552,906			1,081,641			2,833,902
		TOTAL LIABILITIES					329,169,453			327,600,009			302,496,516
STOCKHOLDERS' EQUITY
	Preferred stock-no stated value
	10,000,000 shares authorized and no shares
	issued and outstanding at March 31, 2022.
	Common stock - no par value
	10,000,000 shares authorized;
	3,065,531 and 3,042,803 shares issued at March 31, 2022 and 2021
	Additional paid-in capital						8,209,031			7,983,422			7,884,767
	Other Comprehensive (loss) income						(2,070,306)			(452,578)			(360,743)
	Retained earnings						39,103,520			38,677,345			35,862,117
	Treasury stock at cost, 224,557 shares,									-			-
	at March 31, 2022 and 2021						(1,615,460)			(1,615,460)			(1,615,460)
		TOTAL STOCKHOLDERS' EQUITY					43,626,785			44,592,729			41,770,680
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	372,796,238		$	372,192,738		$	344,267,196
	Book Value per share					$	15.36		$	15.82		$	14.85

BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31, 2022 and 2021 (UNAUDITED)						March 31,
						2022			2021
INTEREST INCOME
	Interest and fees on loans					$	3,227,781		$	3,026,198
	Interest on investments						146,335			58,145
	Interest on balances with banks						22,814			16,404
		TOTAL INTEREST INCOME					3,396,929			3,100,747
INTEREST EXPENSE
	Interest on deposits						239,797			299,699
	Interest on borrowed funds						117,738			87,284
		Total interest expense					357,535			386,983
	NET INTEREST INCOME						3,039,394			2,713,764
Provision for loan losses							-			109,000
	NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES						3,039,394			2,604,764
OTHER INCOME
	Service fees						181,477			155,086
	Other income						104,996			184,464
		TOTAL OTHER INCOME					286,473			339,549
OTHER EXPENSES
	Salaries and employee benefits						1,340,612			1,128,326
	Occupancy expenses						148,397			177,475
	Equipment expenses						42,877			47,297
	Other expenses						732,624			830,323
		TOTAL OTHER EXPENSES					2,264,509			2,183,421
INCOME BEFORE INCOME TAX EXPENSE							1,061,358			760,892
Income tax expense							294,266			208,837
		NET INCOME				$	767,092		$	552,055
	Earnings per share					$	0.27		$	0.19
	Earnings per share (Diluted)					$	0.26		$	0.19

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220425005793/en/

Investors

Brunswick Bancorp

Nicholas A. Frungillo, Jr. - President / COO

David Gazerwitz - VP / Treasurer

732-247-5800

Media

Paul Caminiti / Nicholas Leasure

Reevemark

212-433-4600

Source: Brunswick Bancorp

FAQ

What were Brunswick Bancorp's Q1 2022 earnings results?

Brunswick Bancorp reported net income of $767,000 for Q1 2022, a 38.95% increase year-over-year, with earnings per share at $0.26.

How did Brunswick Bancorp's total assets change in Q1 2022?

Total assets remained essentially unchanged from December 31, 2021, but increased by 8.29% year-over-year to $372.8 million.

What are the key growth metrics for Brunswick Bancorp in Q1 2022?

In Q1 2022, Brunswick Bancorp saw loans increase by 9.61% and deposits by 9.86% compared to the same period in 2021.

What challenges did Brunswick Bancorp face in Q1 2022?

Brunswick Bancorp faced a decline in total other income and an increase in FHLB borrowings during Q1 2022.