A Case of Appeal to Family Interest
Given that Chairman and CEO Roman Gumina owns 27%, his mother 5.5%, and other Guminas 4.2% or more, the family has two great options for making out good without further shareholder shake down:
- Were the Guminas to sell the bank outright, they would increase the value of their own holdings by $10M. Outside investors would score a similar amount.
- Alternatively, the Gumina family could use a quarter of the bank's excess capital to buy stock back from those of us who want out, make Brunswick Bank & Trust even more of a family operation, and still increase the value of their holdings by $10M.
Disclosure: As of this posting, I own shares of BRBW and may subsequently either dispose of them or purchase more.
The $88M in deposits in Brunswick's Livingston Ave branch might be appealing to area institutions, but I doubt any buyer would be interested in the 5 out of 6 other branches struggling to manage less than $10M each.
Amboy Bancorp, Old Bridge, NJ (private)
Magyar Bancorp, New Brunsick, NJ (MGYR)
Provident Financial Services, Iselin, NJ (PFS)
†as of 12/31/2016
Roman Gumina, Chairman and CEO
Nicholas A. Frungillo, Jr., President
Louis Foulke, CFO, Secretary and Treasurer
Ask around and you'll hear all sorts of unsettling rumors about the Gumina family — real gangster stuff, complete with death threats and people suddenly going "dark" after daring to voice their concerns. In the interest of self-preservation, I'll step around all that here.
Performance at Brunswick Bank & Trust hasn't improved in decades. In 1989, under the-now-deceased Carmen Gumina's watch, the bank earned $1.1M. It hasn't come close since. NPAs were 10% as recently as Year End 2012, and are still high at 6.5%.
Meanwhile, current Chairman and CEO Roman Gumina has been "rewarding" himself pretty handsomely:
10 Other Entities in which Roman Gumina Owns a Controlling Interest