PRINCETON, N.J., Oct. 20,
2022 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ: BPRN)
today reported its unaudited financial condition and results of
operations at and for the quarter ended September 30, 2022. The Bank reported net
income of $7.0 million, or
$1.09 per diluted common share, for
the third quarter of 2022, compared to net income of $6.3 million, or $0.98 per diluted common share, for the second
quarter of 2022, and net income of $5.9
million, or $0.88 per diluted
common share, for the third quarter of 2021. The increase in net
income, when compared to the three months ended June 30, 2022, was primarily due to an increase
of $1.4 million in net interest
income and a $595 thousand increase
in non-interest income, partially offset by a $697 thousand increase in non-interest expenses
and a $459 thousand increase income
tax expense. The increase in net income, when comparing it to the
three months ended September 30,
2021, was primarily due to an increase in net interest
income of $1.6 million, a
$1.0 million decrease in the
provision for loan losses and a $389
thousand increase in non-interest income, partially offset
by a $1.6 million increase in
non-interest expenses and a $350
thousand increase in income tax expense. For the
nine-month period ended September 30,
2022, the Bank recorded net income of $19.3 million, or $2.98 per diluted common share, compared to
$16.3 million, or $2.38 per diluted common share for the same
period in 2021, primarily due to a $3.2
million increase in net interest income a $3.1 million decrease in the Bank's provision for
loan losses, and a $666 thousand
increase in non-interest income, partially offset by a $3.3 million increase in non-interest expenses
and an increase in income taxes of $676
thousand.
Highlights for the three and nine month periods ended
September 30, 2022 are as
follows:
- During the nine months ended September
30, 2022, the Bank purchased 315,058 shares of common stock
nearly completing the authorized 324,017 shares of common stock
from the 5% stock buyback program that commenced in 2022 at a
weighted average price of $29.07.
- Net income for the third quarter of 2022 increased $1.0 million or 17.7% over the same period in
2021.
- The Bank maintained its low total cost of funds on deposits at
40 basis points for the third quarter of 2022, down 8 basis points
from the same period in 2021.
- The ratio of nonperforming loans to total loans continues to be
low at 0.05% as of September 30,
2022, compared to 0.09% at December
31, 2021 and 0.11% at September 30,
2021.
President/CEO Edward Dietzler
noted that, "The Bank's earnings performance continues to increase,
propelled by a strong net interest margin of 4.64% for the quarter
and strong credit quality."
Balance Sheet Review
Total assets were $1.60 billion at
September 30, 2022, a decrease of
$84.6 million, or 5.0% when compared
to $1.69 billion at the end of 2021.
The primary reason for the decrease in total assets was a decrease
in cash and cash equivalents of approximately $110.8 million and a $19.0
million decrease in available-for-sale securities, partially
offset by an increase of $43.2
million in net loans. The increase in net loans
primarily consisted of a $117.6
million increase in commercial real estate loans, partially
offset by a decrease of $71.7 million
in Payroll Protection Program ("PPP") loans which are no longer
being offered by the SBA.
Total deposits at September 30,
2022 decreased $79.1 million,
or 5.5%, when compared to December
31, 2021. When comparing deposit products between the
two periods, money market deposits decreased $49.0 million, interest-bearing demand deposits
decreased $25.1 million, savings
decreased $12.1 million, certificates
of deposit decreased $6.1 million and
non-interest-bearing demand deposits increased $13.1 million. In addition, the Bank had no
outstanding borrowings at September 30,
2022 and December 31, 2021.
Total stockholders' equity at September
30, 2022 decreased $4.1
million or 1.9% when compared to the end of 2021. This
decrease was primarily due to the $9.2
million of common stock repurchased pursuant to the 2022
buyback program, and a $10.8 million
change in the accumulated other comprehensive income (loss) on the
available-for-sale investment portfolio associated with an increase
in unrealized losses due to the increase in interest rates.
These decreases were partially offset by a $14.4 million increase in retained earnings
consisting of $19.3 million of net
income less $4.9 million of cash
dividends recorded during the period. The ratio of equity to total
assets at September 30, 2022 and at
December 31, 2021, was $13.3% and
12.8%, respectively.
Asset Quality
At September 30, 2022,
non-performing assets were $729
thousand, a decrease of $672
thousand, or 48.0%, when compared to the amount at
December 31, 2021. This
decrease was primarily due to the sale of an other real estate
owned property in the amount of $226
thousand and a $400 thousand
write-down of a non-performing loan. Troubled debt
restructurings ("TDRs") totaled $6.3
million at September 30, 2022
and $6.9 million at December 31, 2021. Three TDR loans totaling
$5.9 million are performing in
accordance with the agreed-upon terms and there is one TDR loan in
non-accrual status as of September 30,
2022.
Review of Quarterly and Year-to-Date Financial
Results
Net interest income was $17.7
million for the third quarter of 2022, compared to
$16.3 million for the second quarter
of 2022 and $16.1 million for the
third quarter of 2021. The increase from the previous quarter
was the result of an increase in interest income of $1.6 million, or 9.4%, partially offset by an
increase in interest expense of $226
thousand. The net interest margin for the third
quarter 2022 was 4.64%, increasing 45 basis points when compared to
the second quarter of 2022. This increase was primarily associated
with an increase of 52 basis points in the yield on earning assets.
When comparing the same three-month period ended September 30, 2022 and 2021, net interest income
increased $1.6 million, which was
primarily due to an increase of 54 basis points in the yield earned
on interest-earning assets. For the nine-month period ended
September 30, 2022, net interest
income was $49.8 million compared to
$46.6 million for the nine-month
period ended September 30,
2021. The increase from the previous nine-month period was
the result of an increase in interest income of $1.8 million, or 3.4% and a decrease in interest
expense of $1.5 million, or
28.0%. The rate on total deposits, for the three-month
periods ended September 30, 2022 and
2021 was 0.40% and 0.48%, respectively. For the nine-month
periods ended September 30, 2022 and
2021, the rate on total deposits was 0.36% and 0.50%,
respectively.
The Bank recorded a provision for loan losses of $200 thousand during the three-month period ended
September 30, 2022 and since no
provision had been recorded earlier in the year, the nine-month
period reflects the same $200
thousand. The comparable amounts were $1.2 million and $3.3
million for the three months and nine months ended
September 30, 2021, respectively. The
primary reasons for the provisions for loan losses during the 2021
periods were charge-offs in the amounts of $821 thousand and $1.8
million, respectively. Net charge-offs for the
three-month and nine-month periods ended September 30, 2022 were $200 thousand and $154
thousand, respectively. The Bank did not make any
material changes to the qualitative factors used in determining the
level of general reserve needed for management's assessment of the
credit quality in the loan portfolio. The coverage ratio of
allowance for loan losses to period end loans was 1.21% (excluding
PPP loans it was 1.21%) at September 30,
2022, compared to 1.24% (excluding PPP loans it was 1.32%)
at December 31, 2021.
Total non-interest income for the third quarter of 2022
increased $595 thousand and
$389 thousand to $1.7 million, or by 53.5% and 29.5% when compared
to the quarter ended June 30, 2022
and the quarter ended September
30,2021, respectively. The increase over the prior quarter
was to primarily due to a $547
thousand increase in loan fees and a $74 thousand increase in other non-interest
income. The increase over the 2021 period was primarily due to a
$214 thousand increase in loan fees
and a $148 thousand increase in other
non-interest income. For the nine-month period ended September 30, 2022, non-interest income increased
$666 thousand, or 20.8%, from the
same nine-month period in 2021, primarily due to a $248 thousand increase in loan fees and a
$247 thousand increase in other
non-interest income.
Total non-interest expense for the third quarter of 2022
increased $1.6 million, or 18.4%,
when compared to the same period in 2021. This increase was
primarily due to a $1.1 million
increase in salaries and benefits expenses, a $206 thousand increase in professional fees and a
$139 thousand increase in data
processing and communications expenses. When comparing the quarter
ended September 30, 2022 to the
immediately preceding quarter, non-interest expense increased
$697 thousand, or 7.4%, primarily due
to increases salaries and employee benefits costs, professional
fees and occupancy and equipment expenses, partially offset by a
decrease in other real estate owned expenses. For the nine-month
period ended September 30, 2022,
non-interest expense was $28.8
million, compared to $25.5
million for the same period in 2021. This increase was
primarily due to increases in salaries and benefits expenses and
data processing and communications costs.
For the three-month period ended September 30, 2022, the Bank recorded an income
tax expense of $2.1 million,
resulting in an effective tax rate of 23.2%, compared to an income
tax expense of $1.6 million resulting
in an effective tax rate of 20.6% for the three-month period ended
June 30, 2022, and compared to an
income tax expense of $1.8 million
resulting in an effective tax rate of 22.8% for the three-month
period ended September 30,
2021. For the nine-month periods ended September 30, 2022 and 2021, the income tax
expenses were $5.4 million (effective
tax rate of 21.7%) and $4.7 million
(effective tax rate of 22.3%), respectively.
About The Bank of Princeton
The Bank of Princeton is a
community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank
with 19 branches in New Jersey,
including three in Princeton and
others in Bordentown, Browns Mills, Chesterfield, Cream
Ridge, Deptford,
Hamilton, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Pennington, Piscataway, Princeton Junction, Quakerbridge and
Sicklerville. There are also four branches in the
Philadelphia, Pennsylvania area.
The Bank of Princeton is a member
of the Federal Deposit Insurance Corporation ("FDIC").
Forward-Looking Statements
The Bank of Princeton may from
time to time make written or oral "forward-looking statements,"
including statements contained in the Bank's filings with the FDIC,
in its reports to stockholders and in other communications by the
Bank (including this press release), which are made in good faith
by the Bank pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and Section 21E of the
Securities Exchange Act of 1934, as amended.
These forward-looking statements involve risks and
uncertainties, such as statements of the Bank's plans, objectives,
expectations, estimates and intentions that are subject to change
based on various important factors (some of which are beyond the
Bank's control). The following factors, among others, could cause
the Bank's financial performance to differ materially from the
plans, objectives, expectations, estimates and intentions expressed
in such forward-looking statements: the extent of the adverse
impact of the current global coronavirus outbreak on our customers,
prospects and business, including related supply chain shortage of
goods, as well as the impact of any future pandemics or other
natural disasters; civil unrest, rioting, acts or threats of
terrorism, or actions taken by the local, state and Federal
governments in response to such events, which could impact business
and economic conditions in our market area, the strength of
the United States economy in
general and the strength of the local economies in which the Bank
conducts operations; the effects of, and changes in, trade,
monetary and fiscal policies and laws, including interest rate
policies of the Board of Governors of the Federal Reserve System;
inflation, interest rate, market and monetary fluctuations; market
volatility; the value of the Bank's products and services as
perceived by actual and prospective customers, including the
features, pricing and quality compared to competitors' products and
services; the willingness of customers to substitute competitors'
products and services for the Bank's products and services; credit
risk associated with the Bank's lending activities; risks relating
to the real estate market and the Bank's real estate collateral;
the impact of changes in applicable laws and regulations and
requirements arising out of our supervision by banking regulators;
other regulatory requirements applicable to the Bank; and the
timing and nature of the regulatory response to any applications
filed by the Bank; technological changes; acquisitions; changes in
consumer spending and saving habits; those risks set forth in the
Bank's Annual Report on Form 10-K for the year ended December 31, 2021 under the heading "Risk
Factors," and the success of the Bank at managing the risks
involved in the foregoing.
The Bank cautions that the foregoing list of important factors
is not exclusive. The Bank does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by or on behalf of the Bank, except as
required by applicable law or regulation.
The Bank of
Princeton
|
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Consolidated
Statements of Financial Condition
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(Unaudited)
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|
(Dollars in
thousands, except per share data)
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|
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September 30, 2022
vs
|
|
|
September 30, 2022
vs
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
December 31,
2021
|
|
|
September 30,
2021
|
|
|
|
2022
|
|
2021
|
|
2021
|
|
$
Change
|
|
%
Change
|
|
$
Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
47,965
|
|
$
158,716
|
|
$
144,184
|
|
$ (110,751)
|
|
(69.78)
|
%
|
|
$ (96,219)
|
|
(66.73)
|
%
|
Securities
available-for-sale taxable
|
|
43,041
|
|
51,690
|
|
46,522
|
|
(8,649)
|
|
(16.73)
|
|
|
(3,481)
|
|
(7.48)
|
|
Securities
available-for-sale tax-exempt
|
|
39,112
|
|
49,468
|
|
46,345
|
|
(10,356)
|
|
(20.93)
|
|
|
(7,233)
|
|
(15.61)
|
|
Securities
held-to-maturity
|
|
203
|
|
208
|
|
210
|
|
(5)
|
|
(2.40)
|
|
|
(7)
|
|
(3.33)
|
|
Loans receivable, net
of deferred
|
|
1,378,426
|
|
1,335,163
|
|
1,342,670
|
|
43,263
|
|
3.24
|
|
|
35,756
|
|
2.66
|
|
Allowance for loan
losses
|
|
(16,666)
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|
(16,620)
|
|
(16,421)
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|
(46)
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|
0.28
|
|
|
(245)
|
|
1.49
|
|
Goodwill
|
|
8,853
|
|
8,853
|
|
8,853
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
Core deposit
intangible
|
|
1,958
|
|
2,393
|
|
2,547
|
|
(435)
|
|
(18.18)
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|
|
(589)
|
|
(23.13)
|
|
Other assets
|
|
100,158
|
|
97,811
|
|
94,284
|
|
2,347
|
|
2.40
|
|
|
5,874
|
|
6.23
|
|
TOTAL
ASSETS
|
|
$ 1,603,050
|
|
$ 1,687,682
|
|
$ 1,669,194
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|
$
(84,632)
|
|
(5.01)
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%
|
|
$ (66,144)
|
|
(3.96)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-interest
checking
|
|
$
299,389
|
|
$
286,247
|
|
$
274,766
|
|
$
13,142
|
|
4.59
|
%
|
|
$ 24,623
|
|
8.96
|
%
|
Interest
checking
|
|
233,969
|
|
259,022
|
|
249,563
|
|
(25,053)
|
|
(9.67)
|
|
|
(15,594)
|
|
(6.25)
|
|
Savings
|
|
213,522
|
|
225,579
|
|
223,188
|
|
(12,057)
|
|
(5.34)
|
|
|
(9,666)
|
|
(4.33)
|
|
Money market
|
|
324,037
|
|
373,075
|
|
361,052
|
|
(49,038)
|
|
(13.14)
|
|
|
(37,015)
|
|
(10.25)
|
|
Time deposits over
$250,000
|
|
46,810
|
|
33,741
|
|
39,270
|
|
13,069
|
|
38.73
|
|
|
7,540
|
|
19.20
|
|
Other time
deposits
|
|
249,287
|
|
268,479
|
|
283,055
|
|
(19,192)
|
|
(7.15)
|
|
|
(33,768)
|
|
(11.93)
|
|
Total
deposits
|
|
1,367,014
|
|
1,446,143
|
|
1,430,894
|
|
(79,129)
|
|
(5.47)
|
|
|
(63,880)
|
|
(4.46)
|
|
Borrowings
|
|
-
|
|
-
|
|
-
|
|
-
|
|
N/A
|
|
|
-
|
|
N/A
|
|
Other
liabilities
|
|
23,518
|
|
24,961
|
|
23,116
|
|
(1,443)
|
|
(5.78)
|
|
|
402
|
|
1.74
|
|
TOTAL LIABILITIES
|
|
1,390,532
|
|
1,471,104
|
|
1,454,010
|
|
(80,572)
|
|
(5.48)
|
|
|
(63,478)
|
|
(4.37)
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|
|
|
|
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|
|
|
|
|
|
|
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STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Common
stock
|
|
34,535
|
|
34,100
|
|
34,082
|
|
435
|
|
1.28
|
|
|
453
|
|
1.33
|
|
Paid-in
capital
|
|
81,241
|
|
80,220
|
|
80,112
|
|
1,021
|
|
1.27
|
|
|
1,129
|
|
1.41
|
|
Treasury
stock
|
|
(19,190)
|
|
(10,032)
|
|
(6,618)
|
|
(9,158)
|
|
91.29
|
|
|
(12,572)
|
|
N/A
|
|
Retained
earnings
|
|
125,878
|
|
111,451
|
|
106,455
|
|
14,427
|
|
12.94
|
|
|
19,423
|
|
18.25
|
|
Accumulated other
comprehensive income (loss)
|
|
(9,946)
|
|
839
|
|
1,153
|
|
(10,785)
|
|
(1,285.46)
|
|
|
(11,099)
|
|
(962.62)
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
212,518
|
|
216,578
|
|
215,184
|
|
(4,060)
|
|
(1.87)
|
|
|
(2,666)
|
|
(1.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AND STOCKHOLDERS'
EQUITY
|
|
$ 1,603,050
|
|
$ 1,687,682
|
|
$ 1,669,194
|
|
$
(84,632)
|
|
(5.01)
|
%
|
|
$ (66,144)
|
|
(3.96)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
common share
|
|
$
34.00
|
|
$
33.42
|
|
$
32.66
|
|
$ 0.58
|
|
1.73
|
%
|
|
$
1.34
|
|
4.10
|
%
|
Tangible book value
per common share1
|
|
$
32.27
|
|
$
31.69
|
|
$
30.93
|
|
$ 0.58
|
|
1.85
|
%
|
|
$
1.34
|
|
4.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Tangible
book value per common share is a non-GAAP measure that represents
book value per common share which excludes goodwill and core
deposit intangible.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of
Princeton
|
|
|
|
Loan and Deposit
Tables
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of loans
receivable, net at September 30, 2022 and December 31, 2021 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Commercial real
estate
|
|
$
888,590
|
|
$
771,028
|
|
|
|
|
Commercial and
industrial
|
|
27,961
|
|
29,677
|
|
|
|
|
Construction
|
|
404,017
|
|
403,680
|
|
|
|
|
Residential first-lien
mortgages
|
|
45,487
|
|
48,638
|
|
|
|
|
Home equity /
consumer
|
|
7,392
|
|
7,685
|
|
|
|
|
PPP I (SBA
loans)
|
|
4,167
|
|
6,641
|
|
|
|
|
PPP II (SBA
loans)
|
|
3,830
|
|
73,099
|
|
|
|
|
Total loans
|
|
1,381,444
|
|
1,340,448
|
|
|
|
|
Deferred fees and
costs
|
|
(3,018)
|
|
(5,285)
|
|
|
|
|
Allowance for loan
losses
|
|
(16,666)
|
|
(16,620)
|
|
|
|
|
Loans, net
|
|
$ 1,361,760
|
|
$ 1,318,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of
deposits at September 30, 2022 and December 31, 2021 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Demand,
non-interest-bearing
|
|
$
299,389
|
|
$
286,247
|
|
|
|
|
Demand,
interest-bearing
|
|
233,969
|
|
259,022
|
|
|
|
|
Savings
|
|
213,522
|
|
225,579
|
|
|
|
|
Money
markets
|
|
324,037
|
|
373,075
|
|
|
|
|
Time
deposits
|
|
296,097
|
|
302,220
|
|
|
|
|
Total deposits
|
|
$ 1,367,014
|
|
$ 1,446,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of
Princeton
|
|
Consolidated
Statements of Income
|
|
(Unaudited)
|
|
(Amounts in
thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
$
Change
|
|
%
Change
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
Loans and
fees
|
$
18,336
|
|
$
17,181
|
|
$
1,155
|
|
6.7 %
|
|
|
Available-for-sale debt
securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
241
|
|
133
|
|
108
|
|
81.2 %
|
|
|
|
Tax-exempt
|
286
|
|
287
|
|
(1)
|
|
-0.3 %
|
|
|
Held-to-maturity debt
securities
|
2
|
|
2
|
|
0
|
|
0.0 %
|
|
|
Other interest and
dividend income
|
226
|
|
53
|
|
173
|
|
326.4 %
|
|
|
|
Total interest and
dividends
|
19,091
|
|
17,656
|
|
1,435
|
|
8.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
1,392
|
|
1,545
|
|
(153)
|
|
-9.9 %
|
|
|
|
Borrowing
|
3
|
|
-
|
|
3
|
|
N/A
|
|
|
|
Total interest
expense
|
1,395
|
|
1,545
|
|
(150)
|
|
-9.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
17,696
|
|
16,111
|
|
1,585
|
|
9.8 %
|
|
Provision for loan
losses
|
200
|
|
1,200
|
|
(1,000)
|
|
-83.3 %
|
|
Net interest income
after provision for loan losses
|
17,496
|
|
14,911
|
|
2,585
|
|
17.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
Income from bank-owned
life insurance
|
287
|
|
276
|
|
11
|
|
4.0 %
|
|
|
Fees and service
charges
|
469
|
|
453
|
|
16
|
|
3.5 %
|
|
|
Loan fees, including
prepayment penalties
|
850
|
|
636
|
|
214
|
|
33.6 %
|
|
|
Other
|
101
|
|
(47)
|
|
148
|
|
-314.9 %
|
|
|
|
Total non-interest
income
|
1,707
|
|
1,318
|
|
389
|
|
29.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
5,442
|
|
4,342
|
|
1,100
|
|
25.3 %
|
|
|
Occupancy and
equipment
|
1,539
|
|
1,492
|
|
47
|
|
3.2 %
|
|
|
Professional
fees
|
786
|
|
580
|
|
206
|
|
35.5 %
|
|
|
Data processing and
communications
|
1,043
|
|
904
|
|
139
|
|
15.4 %
|
|
|
Federal deposit
insurance
|
249
|
|
220
|
|
29
|
|
13.2 %
|
|
|
Advertising and
promotion
|
140
|
|
59
|
|
81
|
|
137.3 %
|
|
|
Office
expense
|
52
|
|
56
|
|
(4)
|
|
-7.1 %
|
|
|
Other real estate owned
expense
|
-
|
|
80
|
|
(80)
|
|
-100.0 %
|
|
|
Core deposit
intangible
|
135
|
|
155
|
|
(20)
|
|
-12.9 %
|
|
|
Other
|
739
|
|
661
|
|
78
|
|
11.8 %
|
|
|
|
Total non-interest
expense
|
10,125
|
|
8,549
|
|
1,576
|
|
18.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
9,078
|
|
7,680
|
|
1,398
|
|
18.2 %
|
|
Income tax
expense
|
2,103
|
|
1,753
|
|
350
|
|
20.0 %
|
|
Net
income
|
$
6,975
|
|
$
5,927
|
|
1,048
|
|
17.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share - basic
|
$
1.12
|
|
$
0.89
|
|
$ 0.23
|
|
25.8 %
|
|
Net income per
common share - diluted
|
$
1.09
|
|
$
0.88
|
|
$ 0.21
|
|
23.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
6,269
|
|
6,836
|
|
(567)
|
|
-8.3 %
|
|
Weighted average
shares outstanding - diluted
|
6,378
|
|
6,896
|
|
(518)
|
|
-7.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of
Princeton
|
|
Consolidated
Statements of Income (Current Quarter vs Prior
Quarter)
|
|
(Unaudited)
|
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
|
|
|
|
|
|
|
2022
|
|
2022
|
|
$
Change
|
|
%
Change
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
Loans and
fees
|
$
18,336
|
|
$
16,768
|
|
$ 1,568
|
|
9.4 %
|
|
|
Available-for-sale debt
securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
241
|
|
234
|
|
7
|
|
3.0 %
|
|
|
|
Tax-exempt
|
286
|
|
293
|
|
(7)
|
|
-2.4 %
|
|
|
Held-to-maturity debt
securities
|
2
|
|
3
|
|
(1)
|
|
-33.3 %
|
|
|
Other interest and
dividend income
|
226
|
|
158
|
|
68
|
|
43.0 %
|
|
|
|
Total interest and
dividends
|
19,091
|
|
17,456
|
|
1,635
|
|
9.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
1,392
|
|
1,169
|
|
223
|
|
19.1 %
|
|
|
|
Borrowing
|
3
|
|
-
|
|
3
|
|
N/A
|
|
|
|
Total interest
expense
|
1,395
|
|
1,169
|
|
226
|
|
19.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
17,696
|
|
16,287
|
|
1,409
|
|
8.7 %
|
|
Provision for loan
losses
|
200
|
|
-
|
|
200
|
|
0.0 %
|
|
Net interest income
after provision for loan losses
|
17,496
|
|
16,287
|
|
1,209
|
|
7.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
Gain on sale of
securities available for sale, net
|
-
|
|
2
|
|
(2)
|
|
-100.0 %
|
|
|
Income from bank-owned
life insurance
|
287
|
|
283
|
|
4
|
|
1.4 %
|
|
|
Fees and service
charges
|
469
|
|
497
|
|
(28)
|
|
-5.6 %
|
|
|
Loan fees, including
prepayment penalties
|
850
|
|
303
|
|
547
|
|
180.5 %
|
|
|
Other
|
101
|
|
27
|
|
74
|
|
274.1 %
|
|
|
|
Total non-interest
income
|
1,707
|
|
1,112
|
|
595
|
|
53.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
5,442
|
|
4,908
|
|
534
|
|
10.9 %
|
|
|
Occupancy and
equipment
|
1,539
|
|
1,429
|
|
110
|
|
7.7 %
|
|
|
Professional
fees
|
786
|
|
582
|
|
204
|
|
35.1 %
|
|
|
Data processing and
communications
|
1,043
|
|
1,056
|
|
(13)
|
|
-1.2 %
|
|
|
Federal deposit
insurance
|
249
|
|
276
|
|
(27)
|
|
-9.8 %
|
|
|
Advertising and
promotion
|
140
|
|
120
|
|
20
|
|
16.7 %
|
|
|
Office
expense
|
52
|
|
62
|
|
(10)
|
|
-16.1 %
|
|
|
Other real estate owned
expense
|
-
|
|
2
|
|
(2)
|
|
-100.0 %
|
|
|
Loss on sale of other
real estate owned
|
-
|
|
101
|
|
(101)
|
|
-100.0 %
|
|
|
Core deposit
intangible
|
135
|
|
145
|
|
(10)
|
|
-6.9 %
|
|
|
Other
|
739
|
|
747
|
|
(8)
|
|
-1.1 %
|
|
|
|
Total non-interest
expense
|
10,125
|
|
9,428
|
|
697
|
|
7.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
9,078
|
|
7,971
|
|
1,107
|
|
13.9 %
|
|
Income tax
expense
|
2,103
|
|
1,644
|
|
459
|
|
27.9 %
|
|
Net
income
|
$
6,975
|
|
$
6,327
|
|
$
648
|
|
10.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share - basic
|
$
1.12
|
|
$
1.00
|
|
$ 0.12
|
|
12.0 %
|
|
Net income per
common share - diluted
|
$
1.09
|
|
$
0.98
|
|
$ 0.11
|
|
11.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
6,269
|
|
6,305
|
|
(36)
|
|
-0.6 %
|
|
Weighted average
shares outstanding - diluted
|
6,378
|
|
6,437
|
|
(59)
|
|
-0.9 %
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of
Princeton
|
Consolidated
Statements of Income
|
(Unaudited)
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
$
Change
|
|
%
Change
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
Loans and
fees
|
$ 51,596
|
|
$
50,487
|
|
$
1,109
|
|
2.2 %
|
|
Available-for-sale debt
securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
698
|
|
353
|
|
345
|
|
97.7 %
|
|
|
Tax-exempt
|
882
|
|
877
|
|
5
|
|
0.6 %
|
|
Held-to-maturity debt
securities
|
8
|
|
8
|
|
-
|
|
0.0 %
|
|
Other interest and
dividend income
|
441
|
|
139
|
|
302
|
|
217.3 %
|
|
|
Total interest and
dividends
|
53,625
|
|
51,864
|
|
1,761
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
3,785
|
|
5,261
|
|
(1,476)
|
|
-28.1 %
|
|
|
Borrowings
|
3
|
|
2
|
|
1
|
|
50.0 %
|
|
|
Total interest
expense
|
3,788
|
|
5,263
|
|
(1,475)
|
|
-28.0 %
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
49,837
|
|
46,601
|
|
3,236
|
|
6.9 %
|
Provision for loan
losses
|
200
|
|
3,325
|
|
(3,125)
|
|
-94.0 %
|
Net interest income
after provision for loan losses
|
49,637
|
|
43,276
|
|
6,361
|
|
14.7 %
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
income
|
|
|
|
|
|
|
|
|
Gain on sale of
securities available-for-sale, net
|
2
|
|
7
|
|
(5)
|
|
-71.4 %
|
|
Income from bank-owned
life insurance
|
852
|
|
826
|
|
26
|
|
3.1 %
|
|
Fees and service
charges
|
1,441
|
|
1,291
|
|
150
|
|
11.6 %
|
|
Loan fees, including
prepayment penalties
|
1,248
|
|
1,000
|
|
248
|
|
24.8 %
|
|
Other
|
322
|
|
75
|
|
247
|
|
329.3 %
|
|
|
Total non-interest
income
|
3,865
|
|
3,199
|
|
666
|
|
20.8 %
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
15,251
|
|
12,816
|
|
2,435
|
|
19.0 %
|
|
Occupancy and
equipment
|
4,446
|
|
4,534
|
|
(88)
|
|
-1.9 %
|
|
Professional
fees
|
1,929
|
|
1,920
|
|
9
|
|
0.5 %
|
|
Data processing and
communications
|
3,134
|
|
2,664
|
|
470
|
|
17.6 %
|
|
Federal deposit
insurance
|
788
|
|
586
|
|
202
|
|
34.5 %
|
|
Advertising and
promotion
|
379
|
|
172
|
|
207
|
|
120.3 %
|
|
Office
expense
|
168
|
|
153
|
|
15
|
|
9.8 %
|
|
Other real estate owned
expense
|
112
|
|
-
|
|
112
|
|
N/A
|
|
Loss on sale of other
real estate owned
|
-
|
|
90
|
|
(90)
|
|
N/A
|
|
Core deposit
intangible
|
434
|
|
489
|
|
(55)
|
|
-11.2 %
|
|
Other
|
2,180
|
|
2,066
|
|
114
|
|
5.5 %
|
|
|
Total non-interest
expense
|
28,821
|
|
25,490
|
|
3,331
|
|
13.1 %
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
24,681
|
|
20,985
|
|
3,696
|
|
17.6 %
|
Income tax
expense
|
5,358
|
|
4,682
|
|
676
|
|
14.4 %
|
Net
income
|
$ 19,323
|
|
$
16,303
|
|
$
3,020
|
|
18.5 %
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share - basic
|
$
3.05
|
|
$ 2.43
|
|
$
0.62
|
|
25.5 %
|
Net income per
common share - diluted
|
$
2.98
|
|
$ 2.38
|
|
$
0.60
|
|
25.2 %
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
6,345
|
|
6,710
|
|
(365)
|
|
-5.4 %
|
Weighted average
shares outstanding - diluted
|
6,475
|
|
6,854
|
|
(379)
|
|
-5.5 %
|
|
|
|
|
|
|
|
|
|
|
The Bank of Princeton
|
Consolidated Average Statement of Financial
Condition
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September
30,
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
$ Change
|
|
% Change
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 1,386,589
|
|
5.25 %
|
|
$
1,367,980
|
|
4.98 %
|
|
$
18,609
|
|
0.27 %
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
available-for-sale
|
46,281
|
|
2.06 %
|
|
33,953
|
|
1.51 %
|
|
12,328
|
|
0.55 %
|
Tax-exempt
available-for-sale
|
42,220
|
|
2.68 %
|
|
46,510
|
|
2.47 %
|
|
(4,290)
|
|
0.21 %
|
Held-to-maturity
|
204
|
|
5.24 %
|
|
211
|
|
5.27 %
|
|
(7)
|
|
-0.03 %
|
Securities
|
88,704
|
|
2.37 %
|
|
80,674
|
|
2.07 %
|
|
8,030
|
|
0.30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
bank accounts
|
35,081
|
|
2.28 %
|
|
116,910
|
|
0.13 %
|
|
(81,829)
|
|
2.15 %
|
Equities
|
1,322
|
|
5.85 %
|
|
1,338
|
|
3.93 %
|
|
(16)
|
|
1.92 %
|
Other interest-earning
assets
|
36,403
|
|
2.41 %
|
|
118,248
|
|
0.18 %
|
|
(81,845)
|
|
2.23 %
|
Total interest-earning
assets
|
1,511,697
|
|
5.01 %
|
|
1,566,902
|
|
4.47 %
|
|
(55,205)
|
|
0.54 %
|
Total non-earning
assets
|
115,158
|
|
|
|
95,130
|
|
|
|
|
|
|
Total assets
|
$ 1,626,856
|
|
|
|
$
1,662,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$
240,948
|
|
0.29 %
|
|
$ 260,813
|
|
0.26 %
|
|
$
(19,865)
|
|
0.03 %
|
Savings
|
217,133
|
|
0.32 %
|
|
214,406
|
|
0.24 %
|
|
2,727
|
|
0.08 %
|
Money market
|
350,901
|
|
0.43 %
|
|
346,330
|
|
0.47 %
|
|
4,571
|
|
-0.04 %
|
Certificates of
deposit
|
289,274
|
|
0.86 %
|
|
329,117
|
|
1.21 %
|
|
(39,843)
|
|
-0.35 %
|
Total interest-bearing deposits
|
1,098,256
|
|
0.51 %
|
|
1,150,666
|
|
0.53 %
|
|
(52,410)
|
|
-0.02 %
|
Non-interest bearing
deposits
|
285,665
|
|
|
|
272,097
|
|
|
|
|
|
|
Total deposits
|
1,383,921
|
|
0.40 %
|
|
1,422,763
|
|
0.48 %
|
|
(38,842)
|
|
-0.08 %
|
Borrowings
|
391
|
|
2.65 %
|
|
-
|
|
0.32 %
|
|
391
|
|
2.33 %
|
Total interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
(excluding non
interest deposits)
|
1,098,647
|
|
0.51 %
|
|
1,150,666
|
|
0.53 %
|
|
(52,019)
|
|
-0.02 %
|
Non-interest-bearing
deposits
|
285,665
|
|
|
|
272,097
|
|
|
|
|
|
|
Total cost of
funds
|
1,384,312
|
|
0.40 %
|
|
1,422,763
|
|
0.43 %
|
|
(38,451)
|
|
-0.03 %
|
Accrued expenses and
other liabilities
|
28,136
|
|
|
|
24,480
|
|
|
|
|
|
|
Stockholders'
equity
|
214,408
|
|
|
|
214,789
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,626,856
|
|
|
|
$
1,662,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
4.50 %
|
|
|
|
3.94 %
|
|
|
|
|
Net interest
margin
|
|
|
4.64 %
|
|
|
|
4.08 %
|
|
|
|
|
Net interest margin
(FTE)1
|
|
|
4.71 %
|
|
|
|
4.14 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Includes federal and state tax effect of tax-exempt
securities and loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of Princeton
|
Consolidated Average Statement of Financial
Condition
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
September 30, 2022
|
|
June 30, 2022
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
$ Change
|
|
% Change
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
1,386,589
|
|
5.25 %
|
|
$
1,391,937
|
|
4.85 %
|
|
$
(5,348)
|
|
0.40 %
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
available-for-sale
|
46,281
|
|
2.06 %
|
|
48,590
|
|
1.93 %
|
|
(2,309)
|
|
0.14 %
|
Tax-exempt
available-for-sale
|
42,220
|
|
2.68 %
|
|
43,742
|
|
2.68 %
|
|
(1,522)
|
|
0.01 %
|
Held-to-maturity
|
204
|
|
5.24 %
|
|
205
|
|
5.29 %
|
|
(1)
|
|
-0.05 %
|
Securities
|
88,704
|
|
2.37 %
|
|
92,537
|
|
2.29 %
|
|
(3,833)
|
|
0.08 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
bank accounts
|
35,081
|
|
2.28 %
|
|
72,786
|
|
0.78 %
|
|
(37,705)
|
|
1.50 %
|
Equities
|
1,322
|
|
5.85 %
|
|
1,307
|
|
5.14 %
|
|
15
|
|
0.71 %
|
Other interest-earning
assets
|
36,403
|
|
2.41 %
|
|
74,093
|
|
0.86 %
|
|
(37,690)
|
|
1.56 %
|
Total interest-earning
assets
|
1,511,697
|
|
5.01 %
|
|
1,558,567
|
|
4.49 %
|
|
(46,870)
|
|
0.52 %
|
Total non-earning
assets
|
115,158
|
|
|
|
107,194
|
|
|
|
|
|
|
Total assets
|
$
1,626,856
|
|
|
|
$
1,665,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$ 240,948
|
|
0.29 %
|
|
$
273,114
|
|
0.26 %
|
|
$ (32,166)
|
|
0.03 %
|
Savings
|
217,133
|
|
0.32 %
|
|
230,493
|
|
0.24 %
|
|
(13,360)
|
|
0.08 %
|
Money market
|
350,901
|
|
0.43 %
|
|
368,704
|
|
0.29 %
|
|
(17,803)
|
|
0.14 %
|
Certificates of
deposit
|
289,274
|
|
0.86 %
|
|
277,621
|
|
0.86 %
|
|
11,653
|
|
0.00 %
|
Total interest-bearing deposits
|
1,098,256
|
|
0.51 %
|
|
1,149,932
|
|
0.41 %
|
|
(51,676)
|
|
0.10 %
|
Non-interest bearing
deposits
|
285,665
|
|
|
|
278,963
|
|
|
|
|
|
|
Total deposits
|
1,383,921
|
|
0.40 %
|
|
1,428,895
|
|
0.33 %
|
|
(44,974)
|
|
0.07 %
|
Borrowings
|
391
|
|
2.65 %
|
|
-
|
|
0.32 %
|
|
391
|
|
2.33 %
|
Total interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
(excluding non
interest deposits)
|
1,098,647
|
|
0.51 %
|
|
1,149,932
|
|
0.41 %
|
|
(51,285)
|
|
0.10 %
|
Non-interest-bearing
deposits
|
285,665
|
|
|
|
278,963
|
|
|
|
|
|
|
Total cost of
funds
|
1,384,312
|
|
0.40 %
|
|
1,428,895
|
|
0.33 %
|
|
(44,583)
|
|
0.07 %
|
Accrued expenses and
other liabilities
|
28,136
|
|
|
|
23,534
|
|
|
|
|
|
|
Stockholders'
equity
|
214,408
|
|
|
|
213,332
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
1,626,856
|
|
|
|
$
1,665,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
4.50 %
|
|
|
|
4.08 %
|
|
|
|
|
Net interest
margin
|
|
|
4.64 %
|
|
|
|
4.19 %
|
|
|
|
|
Net interest margin
(FTE)1
|
|
|
4.71 %
|
|
|
|
4.24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Includes federal and state tax effect of tax-exempt
securities and loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of Princeton
|
Consolidated Average Statement of Financial
Condition
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September
30,
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
$ Change
|
|
% Change
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
1,375,233
|
|
5.02 %
|
|
$
1,393,122
|
|
4.85 %
|
|
$
(17,889)
|
|
0.17 %
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
available-for-sale
|
47,626
|
|
1.96 %
|
|
28,306
|
|
1.66 %
|
|
19,320
|
|
0.30 %
|
Tax-exempt
available-for-sale
|
44,832
|
|
2.63 %
|
|
47,204
|
|
2.48 %
|
|
(2,372)
|
|
0.15 %
|
Held-to-maturity
|
205
|
|
5.29 %
|
|
213
|
|
5.27 %
|
|
(8)
|
|
0.02 %
|
Securities
|
92,664
|
|
2.29 %
|
|
75,723
|
|
2.18 %
|
|
16,941
|
|
0.11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
bank accounts
|
76,559
|
|
0.68 %
|
|
71,289
|
|
0.19 %
|
|
5,270
|
|
0.49 %
|
Equities
|
1,327
|
|
4.96 %
|
|
1,376
|
|
4.29 %
|
|
(49)
|
|
0.67 %
|
Other interest-earning
assets
|
77,887
|
|
0.44 %
|
|
72,665
|
|
0.26 %
|
|
5,222
|
|
0.18 %
|
Total interest-earning
assets
|
1,545,783
|
|
4.64 %
|
|
1,541,510
|
|
4.50 %
|
|
4,273
|
|
0.14 %
|
Total non-earning
assets
|
112,573
|
|
|
|
100,970
|
|
|
|
|
|
|
Total assets
|
$
1,658,356
|
|
|
|
$
1,642,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$ 257,284
|
|
0.26 %
|
|
$ 259,932
|
|
0.28 %
|
|
$
(2,648)
|
|
-0.02 %
|
Savings
|
226,532
|
|
0.26 %
|
|
199,789
|
|
0.26 %
|
|
26,743
|
|
0.00 %
|
Money market
|
374,570
|
|
0.34 %
|
|
330,605
|
|
0.31 %
|
|
43,965
|
|
0.03 %
|
Certificates of
deposit
|
285,855
|
|
0.91 %
|
|
344,526
|
|
1.39 %
|
|
(58,671)
|
|
-0.48 %
|
Total interest-bearing deposits
|
1,144,242
|
|
0.42 %
|
|
1,134,852
|
|
0.62 %
|
|
9,390
|
|
-0.20 %
|
Non-interest bearing
deposits
|
280,761
|
|
|
|
268,194
|
|
|
|
|
|
|
Total deposits
|
1,425,004
|
|
0.36 %
|
|
1,403,046
|
|
0.50 %
|
|
21,958
|
|
-0.14 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
132
|
|
2.65 %
|
|
361
|
|
0.32 %
|
|
(229)
|
|
2.33 %
|
Total interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
(excluding non
interest deposits)
|
1,144,374
|
|
0.45 %
|
|
1,135,213
|
|
0.62 %
|
|
9,161
|
|
-0.17 %
|
Non-interest-bearing
deposits
|
280,761
|
|
|
|
268,194
|
|
|
|
|
|
|
Total cost of
funds
|
1,425,135
|
|
0.36 %
|
|
1,403,407
|
|
0.50 %
|
|
21,728
|
|
-0.14 %
|
Accrued expenses and
other liabilities
|
18,680
|
|
|
|
25,947
|
|
|
|
|
|
|
Stockholders'
equity
|
214,541
|
|
|
|
213,126
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
1,658,356
|
|
|
|
$
1,642,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
4.19 %
|
|
|
|
3.88 %
|
|
|
|
|
Net interest
margin
|
|
|
4.31 %
|
|
|
|
4.04 %
|
|
|
|
|
Net interest margin
(FTE)1
|
|
|
4.37 %
|
|
|
|
4.10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Includes federal and state tax effect of tax-exempt
securities and loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank of
Princeton
|
Quarterly Financial
Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.70 %
|
|
1.52 %
|
|
1.45 %
|
|
1.44 %
|
|
1.41 %
|
|
Return on average
equity
|
12.91 %
|
|
11.90 %
|
|
11.25 %
|
|
11.34 %
|
|
10.95 %
|
|
Return on average tangible
equity1
|
13.59 %
|
|
12.54 %
|
|
11.86 %
|
|
11.97 %
|
|
11.56 %
|
|
Net interest
margin
|
4.64 %
|
|
4.19 %
|
|
4.09 %
|
|
3.96 %
|
|
4.08 %
|
|
Net interest margin
(FTE)2
|
4.71 %
|
|
4.24 %
|
|
4.14 %
|
|
4.02 %
|
|
4.14 %
|
|
Efficiency ratio -
non-GAAP3
|
51.49 %
|
|
53.36 %
|
|
53.93 %
|
|
50.43 %
|
|
48.16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
DATA
|
|
|
|
|
|
|
|
|
|
|
Market value at period
end
|
$ 28.35
|
|
$ 27.46
|
|
$ 28.85
|
|
$ 29.33
|
|
$ 29.87
|
|
Market range:
|
|
|
|
|
|
|
|
|
|
|
High
|
$ 29.95
|
|
$ 30.55
|
|
$ 32.05
|
|
$ 30.89
|
|
$ 20.45
|
|
Low
|
$ 27.16
|
|
$ 26.57
|
|
$ 28.67
|
|
$ 28.71
|
|
$ 17.40
|
|
Book value per common share
at period end
|
$ 34.00
|
|
$ 33.74
|
|
$ 33.49
|
|
$ 33.42
|
|
$ 32.66
|
|
Tangible book value per
common share at period end4
|
$ 32.27
|
|
$ 32.00
|
|
$ 31.75
|
|
$ 31.96
|
|
$ 30.93
|
|
Shares of common stock
outstanding (in thousands)
|
6,251
|
|
6,263
|
|
6,366
|
|
6,480
|
|
6,588
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Total capital (to
risk-weighted assets)
|
14.71 %
|
|
14.13 %
|
|
14.16 %
|
|
15.10 %
|
|
15.60 %
|
|
Tier 1 capital (to
risk-weighted assets)
|
13.63 %
|
|
13.08 %
|
|
13.10 %
|
|
13.97 %
|
|
14.43 %
|
|
Tier 1 capital (to
average assets)
|
13.10 %
|
|
12.46 %
|
|
12.36 %
|
|
12.06 %
|
|
12.29 %
|
|
Period-end equity to
assets
|
13.26 %
|
|
13.00 %
|
|
12.71 %
|
|
12.84 %
|
|
12.89 %
|
|
Period-end tangible equity
to tangible assets
|
12.67 %
|
|
12.42 %
|
|
12.13 %
|
|
12.26 %
|
|
12.23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY DATA
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries)
|
$ 200
|
|
$
(12)
|
|
$
(34)
|
|
$ 101
|
|
$ 821
|
|
Annualized net charge-offs
(recoveries) to average loans
|
0.058 %
|
|
-0.003 %
|
|
-0.010 %
|
|
0.030 %
|
|
0.240 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
(excluding TDRs)
|
$ 370
|
|
$ 402
|
|
$ 406
|
|
$ 409
|
|
$ 1,043
|
|
Other real estate
owned
|
-
|
|
-
|
|
226
|
|
226
|
|
376
|
|
Troubled debt restructurings
(TDRs)
|
|
|
|
|
|
|
|
|
|
|
-Performing
|
5,943
|
|
6,001
|
|
6,066
|
|
6,122
|
|
6,187
|
|
-Non-performing
|
359
|
|
563
|
|
766
|
|
766
|
|
1,092
|
|
Total nonperforming assets
and accruing TDRs
|
$ 6,672
|
|
$ 6,966
|
|
$ 7,464
|
|
$ 7,523
|
|
$ 8,698
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as
a percent of:
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
1.21 %
|
|
1.19 %
|
|
1.19 %
|
|
1.24 %
|
|
1.22 %
|
|
Nonaccrual
loans
|
2286.15 %
|
|
1727.05 %
|
|
1420.99 %
|
|
1398.99 %
|
|
769.13 %
|
|
Nonperforming
assets
|
2286.15 %
|
|
1727.05 %
|
|
1191.27 %
|
|
1175.39 %
|
|
653.96 %
|
|
|
|
|
|
|
|
|
|
|
|
|
As a
percent of total loans:
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
0.05 %
|
|
0.07 %
|
|
0.08 %
|
|
0.09 %
|
|
0.11 %
|
|
Accruing TDRs
|
0.43 %
|
|
0.43 %
|
|
0.43 %
|
|
0.46 %
|
|
0.46 %
|
|
Nonaccrual loans and accruing TDRs
|
0.48 %
|
|
0.50 %
|
|
0.52 %
|
|
0.55 %
|
|
0.62 %
|
|
|
|
|
|
|
|
|
|
|
|
|
1Return
on average tangible equity is a non-GAAP measure that represents
the rate of return on tangible common equity.
|
|
|
2Includes
the effect of tax exempt securities and loans.
|
|
|
|
|
|
|
|
3The
efficiency ratio is a non-GAAP measure that represents the ratio of
non-interest expense (excluding amortization of core deposit
intangible)
|
divided by net
interest income and non-interest income.
|
|
|
|
|
|
|
|
4Tangible
book value per common share is a non-GAAP measure that represents
book value per common share which
|
|
|
|
excludes goodwill and
core deposit intangible.
|
|
|
|
|
|
|
|
Contact George
Rapp
609.454.0718
grapp@thebankofprinceton.com
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SOURCE The Bank of Princeton