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 quarterly and year to date period ended September 30, 2021.
Financial Highlights:
Total assets increased 14.31% to $361.2 million from December 31, 2020;
Loan portfolio increased 12.61% to $267.9 million from December 31, 2020;
Deposits increased 17.57% to $273.0 million from December 31, 2020; and
Net income increased 151.84% to $2.130 million compared to the same year to date period a year ago.
Net income per share increased to $0.76 per diluted share in the current year to date period compared to $0.30 per diluted share in the same year to date period last year.
“Our continued efforts to drive top- and bottom-line performance resulted in substantial net income growth during the third quarter and for the year to date,” said Nicholas A. Frungillo, Jr., President and Chief Executive Officer of the Company and the Bank. “We continue to realize the benefits of our marketing and business development initiatives, increased focus on commercial real estate lending and our continued participation in the Paycheck Protection Program, through which we were able to help our customers maintain jobs in our Central New Jersey marketplace. As we look to the fourth quarter, we are confident our strategic initiatives will continue to drive growth and enhance value for shareholders.”
Financial Summary for the Nine Months ending September 30, 2021
At September 30, 2021, the Company had total assets of $361.2 million, an increase of $45.2 million or 14.31% over the December 31, 2020 total of $316.0 million. The growth was mainly driven by management’s previously implemented business development initiatives. Cash and due from banks was $29.6 million at September 30, 2021, an increase of $9.4 million or 46.90% over year-end due to quarter end fluctuations. The loan portfolio grew to $267.9 million at September 30, 2021, an increase of $30.0 million or 12.61% since December 31, 2020. Growth was primarily in loans secured by commercial real estate. The growth in the loan portfolio reflected loan originations of $52.0 million during the nine months ended September 30, 2021, partially offset by $10.9 million in PPP loan forgiveness and $15.3 million in early payoffs. Securities increased to $45.5 million, up $5.1 million, or 12.65%, from the $40.4 million balance at December 31, 2020, as the Bank used excess liquidity to purchase securities to increase its yield over the fed funds rate.
Deposits grew to $273.0 million at September 30, 2021, an increase of $40.8 million, or 17.57%, from December 31, 2020 as a result of management’s increased marketing efforts. The average rate paid on the deposit portfolio declined to 0.65% for the nine months ended September 30, 2021 from 1.42% for the comparable prior year period. FHLB borrowing increased by $5.0 million to $31.7 million at September 30, 2021 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 with maturities matching the maturity of the PPP loans securing the borrowing.
Stockholders’ equity increased by $283 thousand to $43.6 million due to earnings retention net of the change in other comprehensive income/losses and a one-time special dividend paid in February 2021. The Bank meets all criteria to be considered “Well Capitalized”.
The Bank’s Net Interest Margin was 3.51% for the nine months ended September 30, 2021 compared to 3.48% for the nine months ended September 30, 2020. The Bank’s cost of deposits decreased to 0.65% for the nine months ended September 30, 2021 from 1.42% for the comparative period in 2020. The Bank’s yield on interest earning assets decreased to 3.99% for the nine months ended September 30, 2021 from 4.54% for the same period last year.
Net interest income was $8.482 million for the nine months ended September 30, 2021, an increase of $1.997 million, or 30.79%, from $6.485 million for the comparable period of 2020. Loan income grew to $9.282 million for the nine months ending September 30, 2021, an increase of $1.177 million, or 14.53%, from $8.105 million for the same period a year ago due to higher outstanding balances. Interest expense was $1.166 million for the nine months ended September 30, 2021, a decrease of $753 thousand, or 39.23%, when compared to $1.919 million for the same period a year ago due to lower market rates more than offsetting the increase in deposits.
Total other income was $971 thousand for the nine months ended September 30, 2021, an increase of $94 thousand, or 10.74%, over the same period a year ago. During the prior period, 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 $26 thousand or 5.03% for the nine months ended September 30, 2021, when compared to the same period a year ago due to reduced activity during the COVID-19 pandemic.
Total non-interest expenses were $6.202 million for the nine months ended September 30, 2021, an increase of $271 thousand, or 4.57% over the same period a year ago. Salaries increased by $102 thousand for the nine months ended September 30, 2021 compared to the same period last year. Occupancy expenses declined to $470 thousand, a reduction of $153 thousand from the same period a year ago, as the Bank sold its George Street branch in the fourth quarter of 2020 and purchased its North Brunswick branch in May 2021. Other expenses grew by $327 thousand to $2.099 million for the nine months ended September 30, 2021 when compared to $1.771 million for the same period a year ago, as the Bank has expended approximately $250 thousand due to the proxy contest at its 2021 Annual Meeting.
The provision for loan losses was $310 thousand for the nine months ended September 30, 2021 as compared $320 thousand for the same period a year ago. Management is actively monitoring the Bank’s loan portfolio in light of the continued economic uncertainty related to the COVID-19 pandemic and may increase provisions for loan losses in the future.
Net income was $2.130 million, or $0.76 per diluted share, for the nine months ended September 30, 2021 compared to $846 thousand, or $0.30 per diluted share, for the same period a year ago, an increase of $1.284 million or 151.84%. Income before income taxes and provision for loan losses was $3.252 million, an increase of $1.820 million, or 127.19%, over the same period a year ago.
Financial Summary for the Three Months ended September 30, 2021
Net interest income was $2.964 million for the three months ended September 30, 2021, an increase of $692 thousand, or 30.46%, from $2.272 million for the same period a year ago. Loan income was $3.184 million for the three months ending September 30, 2021, an increase of $447 thousand, or 16.32%, from $2.737 million for the same period a year ago due to higher outstanding balances. Interest expense was $380 thousand for the three months ended September 30, 2021, a decrease of $199 thousand, or 34.44% when compared to $579 thousand for the same period a year ago, primarily due to lower market rates more than offsetting the increase in deposits.
Total other income was $313 thousand for the three months ended September 30, 2021, an increase of $85 thousand or 36.97% when compared to $229 thousand for the same period a year ago. During the prior period, the Company realized $27 thousand in gains on securities as the Company repositioned its investment portfolio. Service fees on deposit accounts increased by $6 thousand or 3.92% for the three months ended September 30, 2021, when compared to service fees of $161 thousand for the same period a year ago.
Total non-interest expenses were $2.030 million for the three months ended September 30, 2021, an increase of $86 thousand, or 4.44% when compared to $1.944 million for the same period a year ago. Salaries increased by $129 thousand to $1.216 million for the three months ended September 30, 2021 compared to $1.087 million for the same period a year ago. Occupancy expenses decreased to $138 thousand, a reduction of $50 thousand from $188 thousand for the same period a year ago as the Bank sold its George Street branch in the fourth quarter of 2020 and purchased its North Brunswick branch in May 2021. Other expenses grew by $12 thousand to $635 thousand for the three months ended September 30, 2021 when compared to $623 thousand for the same period last year primarily due to an increase of $29 thousand related to non-accrual loan expenses.
Provisions for loan losses were $54 thousand for the three months ended September 30, 2021 compared to $150 thousand in the comparable year ago period. Management is actively monitoring the Bank’s loan portfolio in light of the continued economic uncertainty related to the COVID-19 pandemic and may increase provisions for loan losses in the future.
Net income was $871 thousand, or $0.31 per diluted share, for the three months ended September 30, 2021 compared to $305 thousand, or $0.11 per diluted share, for the same period a year ago, an increase of $566 thousand or 185.55%. Income before income taxes and provision for loan losses was $1.247 million, an increase of $690 thousand, or 124.03%, over the same period a year ago.
Operations During COVID-19 Pandemic
As previously disclosed, branch lobbies are open following guidelines from the CDC and the State of New Jersey. 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. We provided payment deferrals on 85 loans with $53.5 million in outstanding principal. Of these loans, only 5 loans, with $4.7 million in principal, are still in principal deferral and 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 results 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 SEPTEMBER 30, 2021 RESULTS
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (UNAUDITED)
SEPTEMBER 30, 2021 and 2020 (UNAUDITED)
September 30,
December 31,
September 30,
2021
2020
2020
ASSETS
Cash and due from banks
$
29,550,674
$
20,116,224
$
30,249,794
Securities held to maturity, at amortized cost
2,624,991
3,524,079
3,870,235
Securities available for sale, at fair market value
42,844,695
36,839,298
29,784,380
Restricted bank stock, at cost
1,730,400
1,402,900
952,900
Loans receivable, net
267,894,970
237,886,288
225,289,973
Premises and equipment, net
4,911,450
4,350,047
4,693,502
Accrued interest receivable
958,337
875,142
885,621
Other real estate
4,894,031
4,894,031
5,496,201
Other assets
5,776,453
6,078,244
5,923,194
TOTAL ASSETS
$
361,186,001
$
315,966,252
$
307,145,800
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing
$
67,392,304
$
58,462,505
$
56,817,165
Interest bearing
205,644,219
173,772,135
177,903,559
Total deposits
273,036,524
232,234,640
234,720,724
Borrowed funds
41,636,405
37,427,067
28,422,557
Accrued interest payable
476,611
589,403
994,005
Advances from borrowers for taxes and insurance
1,248,794
1,063,488
974,256
Other liabilities
1,219,502
2,360,991
1,794,052
TOTAL LIABILITIES
317,617,836
273,675,588
266,905,594
STOCKHOLDERS' EQUITY
Preferred stock-no stated value
10,000,000 shares authorized and no shares
issued and outstanding at September 30, 2021.
Common stock - no par value
10,000,000 shares authorized;
3,042,803 and 3,036,603 shares issued at September 30, 2021 and 2020
3,036,603 shares issued at December 31, 2020
Additional paid-in capital
7,949,809
7,797,214
7,772,850
Other Comprehensive (loss) income
(205,945
)
94,337
(72,890
)
Retained earnings
37,439,761
36,014,573
34,155,707
Treasury stock at cost, 224,557 shares,
-
-
at September 30, 2021 and 2020 and December 31, 2020
(1,615,460
)
(1,615,460
)
(1,615,460
)
TOTAL STOCKHOLDERS' EQUITY
43,568,164
42,290,664
40,240,206
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
361,186,001
$
315,966,252
$
307,145,800
Book Value per share
$
15.46
$
15.04
$
14.31
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 2021 and 2020 (UNAUDITED)
September 30,
2021
2020
INTEREST INCOME
Interest and fees on loans
$
9,282,165
$
8,104,738
Interest on investments
301,070
222,230
Interest on balances with banks
65,151
77,062
TOTAL INTEREST INCOME
9,648,385
8,404,031
INTEREST EXPENSE
Interest on deposits
888,667
1,777,678
Interest on borrowed funds
277,384
141,081
Total interest expense
1,166,052
1,918,759
NET INTEREST INCOME
8,482,334
6,485,272
Provision for loan losses
310,000
320,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
8,172,334
6,165,272
OTHER INCOME
Service fees
486,101
511,823
Gain on sale securities AFS
-
159,183
Other income
485,246
266,838
TOTAL OTHER INCOME
971,347
877,110
OTHER EXPENSES
Salaries and employee benefits
3,499,340
3,397,708
Occupancy expenses
470,463
623,274
Equipment expenses
133,565
139,186
Other expenses
2,098,700
1,771,000
TOTAL OTHER EXPENSES
6,202,068
5,931,167
INCOME BEFORE INCOME TAX EXPENSE
2,941,612
1,111,214
Income tax expense
811,913
265,562
NET INCOME
$
2,129,699
$
845,652
Earnings per share
$
0.76
$
0.30
Earnings per share (Diluted)
$
0.76
$
0.30
BRUNSWICK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
QUARTER ENDED SEPTEMBER 30, 2021 and 2020 (UNAUDITED)
September 30,
2021
2020
INTEREST INCOME
Interest and fees on loans
$
3,184,091
$
2,737,361
Interest on investments
132,746
95,554
Interest on balances with banks
26,337
17,768
TOTAL INTEREST INCOME
3,343,174
2,850,683
INTEREST EXPENSE
Interest on deposits
284,206
515,454
Interest on borrowed funds
95,408
63,579
Total interest expense
379,613
579,033
NET INTEREST INCOME
2,963,561
2,271,649
Provision for loan losses
54,000
150,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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