Brunswick Bancorp Reports 2020 Full Year and Fourth Quarter Financial Results

Nachrichtenquelle: Business Wire (engl.)
14.01.2021, 19:28  |  163   |   |   

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 $2.705 million from $1.267 million for prior year period;
  • Income exclusive of non-core items for the twelve months ended December 31, 2020 increased 46.10% to $1.549 million compared to $1.060 million for the prior year period;
  • The Company realized $2.201 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 46% over 2019.”

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 $316.0 million, an increase of $76.2 million or 31.77% over the December 31, 2019 total of $239.8 million. The growth was mainly driven by management’s previously implemented business development initiatives. Cash and due from banks was $20.1 million at December 31, 2020, an increase of $1.9 million or 10.33% over year-end due to current market conditions. The loan portfolio grew to $237.9 million at December 31, 2020, an increase of $43.3 million or 22.25% since December 31, 2019. Growth was primarily in loans secured by commercial real estate and the addition of $11.0 million in PPP loans. Securities increased to $40.4 million, up $29.3 million, or 265.64%, from the $11.0 million balance at December 31, 2019, as the Bank used excess liquidity to purchase securities to increase its yield over the fed funds rate.

Deposits grew to $232.2 million at December 31, 2020, an increase of $38.1 million, or 19.65%, from December 31, 2019 as a result of management’s increased marketing efforts coupled with the issuance of $10 million in Brokered Certificates of Deposit as these deposits had significantly lower rates than the retail market for three to five year deposits. FHLB borrowing increased by $23.5 million to $26.7 million at December 31, 2020 as the Bank locked in longer term borrowings at lower rates than retail deposits. The Bank also was able to enter the Federal Reserve Bank’s PPPLF program, which allows the Bank to fund its PPP loans at a cost of 35 basis points for up to 2 years, matching the maturity of the PPP loans. The PPP loans bear a rate of 1.0%, so participating in the PPPLF results in a net rate of 0.65% to the Bank.

Stockholders’ equity increased by $2.9 million to $42.3 million due to 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 3.50% for the twelve months ended December 31, 2020 compared to 3.98% at December 31, 2019. The Bank’s cost of deposits decreased to 1.27% for the twelve months ended December 31, 2020 from 1.87% for the comparative period in 2019. The Bank’s yield on interest earning assets decreased to 4.45% for the twelve months ended December 31, 2020 from 5.25% for the same period last year.

Net interest income was $9.030 million for the twelve months ended December 31, 2020, an increase of $1.019 million, or 12.72%, from $8.011 million for the comparable period of 2019. Loan income grew to $10.963 million for the twelve months ending December 31, 2020, an increase of $879 thousand, or 8.72%, from $10.083 million for the same period a year ago due to higher outstanding balances, partially offset by lower yields. Interest expense was $2.374 million for the twelve months ended December 31, 2020, a decrease of $68 thousand, or 2.78%, when compared to $2.442 million for the same period a year ago due to lower market rates, more than offsetting the increased level of deposits.

Total other income was $3.390 million for the twelve months ended December 31, 2020, an increase of $2.091 million, or 160.94% over the same period a year ago. The Company recorded a gain on sale of assets of $2.201 million with the sale of its George Street branch location during the fourth quarter of 2020. In addition, during the year ended December 31, 2020, the Company realized $159 thousand in gains on securities as the Company repositioned its investment portfolio. The securities sold were replaced by similar securities with essentially the same effective duration and a nominally higher yield. Service fees on deposit accounts decreased by $146 thousand or 17.88% for the twelve months ended December 31, 2020, when compared to the same period a year ago due to reduced activity from COVID-19. Net OREO write-downs of $60 thousand were recorded in the twelve months ended December 31, 2020. Total non-interest expenses were $8.146 million for the twelve months ended December 31, 2020, an increase of $605 thousand, or 8.02% over the same period a year ago. Salaries increased by $395 thousand for the twelve months ended December 31, 2020 compared to the same period last year due to additions in staff. Occupancy expenses declined to $783 thousand, a reduction of $340 thousand from the same period a year ago, as the Bank closed its Englishtown office on May 31, 2019 and purchased its Main office on Livingston Avenue in the fourth quarter of 2019. Other expenses grew by $550 thousand to $2.622 million for the twelve months ended December 31, 2020 when compared to $2.073 million for the same period a year ago, as the Bank has experienced an increase in Legal and Professional fees.

Provisions for loan losses was $525 thousand for the twelve months ended December 31, 2020 as compared to no provision 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. Management is actively monitoring the Bank’s loan portfolio in light of the continued uncertainty and may increase provisions for loan losses in the future.

Net income was $2.704 million for the twelve months ended December 31, 2020 compared to $1.267 million for the same period a year ago, an increase of $1.437 million or 113.42%. Income excluding non-core items (both income and expense) was $1.549 million for the twelve months ending December 31, 2020, compared to $1,060 million for the same period a year ago, an increase of $489 thousand, or 46.10%. Management considers income excluding non-core items to be a useful metric, as it helps in understanding the strength of the Company’s ongoing business. The table below sets forth the non-core items for the twelve months ended December 31, 2020.

 

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 $2.544 million for the three months ended December 31, 2020, an increase of $522 thousand, or 25.80%, from $2.022 million for the same period a year ago. Loan income was $2.858 million for the three months ending December 31, 2020, an increase of $219 thousand from $2.639 million for the same period a year ago. Interest expense was $456 thousand for the three months ended December 31, 2020, a decrease of $229 thousand, or 33.427% when compared to $684 thousand for the same period a year ago, primarily due to lower market rates offsetting the growth in deposits.

Total other income was $2.514 million for the three months ended December 31, 2020, an increase of $2.201 million or 703.87% when compared to $313 thousand for the same period a year ago. During the fourth quarter of 2020, the Company realized $2.201 million in gains on sale of assets as the Company sold its George Street location. Service fees on deposit accounts decreased by $27 thousand or 14.26% for the three months ended December 31, 2020, when compared to $187 thousand for the same period a year ago due to reduced activity from COVID-19.

Total non-interest expenses were $2.215 million for the three months ended December 31, 2020, an increase of $467 thousand, or 26.69% when compared to $1.748 million for the same period a year ago. Salaries increased by $132 thousand to $1.156 million for the three months ended December 31, 2020 when compared to $1.024 million for the same period a year ago. Occupancy expenses were $160 thousand, an increase of $17 thousand from $142 thousand for the same period a year ago due to required repairs and maintenance on our Livingston Avenue branch. Other expenses grew by $328 thousand to $851 thousand for the three months ended December 31, 2020 when compared to $523 thousand for the same period last year as the Bank has experienced an increase in Legal and Professional fees.

Provisions for loan losses was $205 thousand for the three months ended December 31, 2020 compared to no provisions in the comparable year ago period. The Company believes this increase is prudent given the impact of the COVID-19 pandemic on the local economy and customers. Management is actively monitoring the Bank’s loan portfolio in light of the continued uncertainty and may increase provisions for loan losses in the future.

Net income was $1.859 million for the three months ended December 31, 2020 compared to $411 thousand for the same period a year ago, an increase of $1.447 million or 351.74%. Income before income taxes and provision for loan losses was $2.843 million, an increase of $2.256 million, or 384.47%, over the same period a year ago.

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 $0.25 per share payable on February 5, 2021 to shareholders of record on January 25, 2021. The special dividend returns to Brunswick shareholders a portion of the profits recognized from the sale of the George Street branch.

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

 

$

0.45

 
 
 
 
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
QUARTER ENDED DECEMBER 31, 2020 and 2019 (UNAUDITED) December 31,

 

2020

 

 

2019

INTEREST INCOME
Interest and fees on loans

$

2,857,995

 

$

2,639,155

Interest on investments

 

127,373

 

 

49,935

Interest on balances with banks

 

14,404

 

 

17,486

TOTAL INTEREST INCOME

 

2,999,771

 

 

2,706,576

 
INTEREST EXPENSE
Interest on deposits

 

385,186

 

 

638,688

Interest on borrowed funds

 

70,392

 

 

45,538

Total interest expense

 

455,578

 

 

684,226

 
NET INTEREST INCOME

 

2,544,193

 

 

2,022,349

Provision for loan losses

 

205,000

 

 

-

 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

2,339,193

 

 

2,022,349

 
OTHER INCOME
Service fees

 

160,721

 

 

187,457

Gain on sale of OREO

 

99

 

 

-

Gain on sale of assets

 

2,200,713

 

 

-

Other income

 

151,992

 

 

125,220

TOTAL OTHER INCOME

 

2,513,525

 

 

312,677

 
OTHER EXPENSES
Salaries and employee benefits

 

1,155,988

 

 

1,023,803

Occupancy expenses

 

159,787

 

 

142,363

Equipment expenses

 

47,666

 

 

58,590

Other expenses

 

851,478

 

 

523,480

TOTAL OTHER EXPENSES

 

2,214,919

 

 

1,748,236

 
INCOME BEFORE INCOME TAX EXPENSE

 

2,637,800

 

 

586,790

Income tax expense

 

778,933

 

 

175,302

NET INCOME

$

1,858,867

 

$

411,488

 
Earnings per share

$

0.66

 

$

0.15

Earnings per share (Diluted)

$

0.66

 

$

0.15

 



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Disclaimer

Brunswick Bancorp Reports 2020 Full Year and Fourth 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 period ended December 31, 2020. Highlights: Total assets increased 31.77% to …

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