BRUNSWICK BANCORP 2021 ANNUAL REPORT

BRBW Annual Report Letter 2022

March 30, 2022

Dear Fellow Shareholder,

We hope you and your loved ones are healthy and safe. While 2021 brought some normalcy following a difficult year, the COVID-19 pandemic continued to affect individuals around the world and in our community. We consider ourselves fortunate that the latest COVID-19 variants had minimal impact on our business and our ability to safely serve customers. We are proud of the entire Brunswick Bank and Trust team whose dedication to our customers in the local New Brunswick community allowed us to deliver strong results and continue driving value for shareholders.

The Board of Directors and management team believe the significant improvements in key metrics across the business over the last 12 months demonstrates the effectiveness of the Company's growth strategy. Brunswick's key results for the year ended December 31, 2021 are below:

Metric

As of 12/31/20

As of 12/31/21

Growth

Total Assets

$316.0 M

$372.2 M

↑ 17.8%

Loan Portfolio

$237.9 M

$276.5 M

↑ 16.2%

Deposits

$232.2 M

$277.6 M

↑ 19.6%

Net Income

$2.705 M

$3.367 M

↑ 24.5%

Net Interest Income

$9.0 M

$11.8 M

↑ 30.4%

Loan Income

$10.96 M

$12.78 M

↑ 16.6%

Stockholder's Equity

$42.3 M

$44.6 M

↑ 5.4%

Core Earnings

$1.064 M

$3.258 M

↑ 206.3%

Book Value Per Share

$15.04/share

$15.82/share

↑ 5.2%

We achieved these results through a combination of our tried-and-true marketing and business development efforts, strategic repositioning of our asset portfolio and cost reduction efforts.

Top-Line Growth Initiatives

Bottom-Line Growth and Margin Expansion Initiatives

  • Increasing lending efforts resulting in loan originations of $83.1 million, primarily in loans secured by commercial real estate

  • Lower occupancy costs and lease expenses through the sale of the George Street location, purchase of the Livingston Avenue and North Brunswick branches, and closing of two underperforming branches

  • Continued implementation of marketing and business development efforts to drive demand for loans as well as money market and certificate of deposit accounts

  • Purchasing securities with excess liquidity to increase yield over the fed funds rate

A Five-Year Review

With the end of 2021 came the conclusion of the first five full years of Nicholas A. Frungillo, Jr.'s tenure with Brunswick and the Bank. Over that time, Brunswick has grown substantially and significantly improved its key metrics as outlined in the charts below.

While these improvements are encouraging, the Board and management team recognize that there is still more work to be done. We are confident that there is significant upside remaining that can be unlocked through continued execution of our strategic plan.

Second Consecutive Special Cash Dividend

On February 15, 2022, Brunswick's Board of Directors decided to return a portion of the profits recognized from the last year to shareholders through a special cash dividend of $0.12 per share, or approximately $337 thousand, that was paid on March 15, 2022. This was Brunswick's second specialdividend since the beginning of 2021. The special dividend was the result of our strong financial performance that stemmed from our focus on growth, reducing costs, and marketing and business development.

The Board and management team will continue to implement strategies designed to further improve performance on the top- and bottom-line to enhance value for all shareholders. Looking ahead, the Board and management team believe Brunswick is well positioned to continue to succeed.

Our 2022 Annual Meeting will be held virtually, as we concluded this was the best course of action given the unpredictability of COVID-19. The Annual Meeting will take place at 9:00 a.m. on Tuesday, April 26, 2022. Shareholders of record as of March 18, 2022 may participate in the Annual Meeting, vote and submit questions online by visitingwww.cleartrustonline.com/brunswick. Please refer to our enclosed proxy statement for additional information about voting.

We thank you, our shareholders, for your continued support and business.

Sincerely Yours,

Frank Gumina, Jr. Chairman

Nicholas A. Frungillo, Jr. President & CEO

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Brunswick Bancorp published this content on 19 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 April 2022 15:13:01 UTC.