Brunswick Bank Contracts For Sale Of REO Property

Rhea-AI Summary

Brunswick Bancorp (OTC: BRBW) announced the sale of its largest non-performing asset, a real estate parcel linked to a defaulted loan. The sale is subject to standard commercial real estate conditions, including buyer diligence and development approvals. The purchase price exceeds the Bank's carrying value for the property, which the Company aims to resolve without further loss. CEO Nicholas A. Frungillo, Jr., expressed confidence in completing the sale promptly.

Positive

• The sale price exceeds the carrying value of the non-performing asset.
• The transaction is expected to resolve the non-performing asset without further loss to the Bank.

Negative

• None.

Brunswick Bancorp (“Brunswick” or “the Company") (OTC: “BRBW”), the holding company for Brunswick Bank and Trust (“the Bank”), today announced that the Bank had entered into a contract of sale for the Bank’s largest non-performing asset, a parcel of real estate taken in connection with the Bank’s efforts to realize on a defaulted loan. The sale is subject to terms and contingencies typical for commercial real estate sales, including a buyer diligence period and a period for both the buyer and seller to satisfy the conditions to closing in the contract, which include the buyer obtaining certain development approvals. The purchase price under the contract, net of costs of sale, is in excess of the Bank’s carrying value for the property.

Nicholas A Frungillo, Jr., Brunswick President and Chief Executive Officer, stated: “We look forward to resolving this asset with no further loss to the Bank. We will work with the buyer to satisfy all of the conditions to the sale as quickly as possible.”

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 five additional branch offices.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210420005896/en/

FAQ

What is the significance of the asset sale announced by Brunswick Bancorp?

The asset sale represents Brunswick Bancorp's effort to manage its non-performing assets and minimize losses.

What is the expected outcome of the non-performing asset sale for BRBW?

Brunswick anticipates resolving the asset sale successfully without incurring further losses.

What factors could affect the closing of the sale for BRBW?

The closing is contingent on standard conditions, including buyer diligence and obtaining necessary development approvals.

When was the asset sale for Brunswick Bancorp announced?

The asset sale was announced in the recent press release issued by Brunswick Bancorp.