Le Lézard
Classified in: Business, Covid-19 virus
Subject: ERN

The Bank of Princeton Announces Fourth Quarter and Year-End 2022 Results


PRINCETON, N.J., Jan. 26, 2023 /PRNewswire/ -- The Bank of Princeton (the "Bank"), the wholly owned subsidiary of Princeton Bancorp, Inc. (NASDAQ: BPRN), today reported its unaudited financial condition and results of operations at and for the quarter and year ended December 31, 2022.  The Bank reported net income of $7.2 million, or $1.13 per diluted common share, for the fourth quarter of 2022, compared to net income of $7.0 million, or $1.09 per diluted common share, for the third quarter of 2022, and net income of $6.2 million, or $0.92 per diluted common share, for the fourth quarter of 2021. The increase in net income for the fourth quarter of 2022, when compared to the three months ended September 30, 2022, was primarily due to an increase of $550 thousand in net interest income and a $454 thousand decrease in non-interest expenses, partially offset by a $710 thousand decrease in non-interest income and a $98 thousand increase in income tax expense. The increase in net income, when comparing it to the three months ended December 31, 2021, was primarily due to an increase in net interest income of $2.2 million and a $100 thousand decrease in the provision for loan losses, partially offset by a $708 thousand increase in non-interest expenses, a $470 thousand decrease in non-interest income and a $180 thousand increase in income tax expense.   For the year ended December 31, 2022, the Bank recorded net income of $26.5 million, or $4.11 per diluted common share, compared to $22.5 million, or $3.30 per diluted common share for the year ended December 31, 2021, primarily due to a $5.5 million increase in net interest income, a $3.2 million decrease in the Bank's provision for loan losses, and a $196 thousand increase in non-interest income, partially offset by a $4.0 million increase in non-interest expenses and an increase in income taxes of $856 thousand.

Highlights for the three and twelve month periods ended December 31, 2022 are as follows:

President/CEO Edward Dietzler noted that, "The Bank's earnings performance far exceeds the prior year, up 17.8% year-over-year, driven by a strong net interest margin of 4.82% for the quarter and excellent credit quality."

Balance Sheet Review

Total assets were $1.60 billion at December 31, 2022, a decrease of $85.9 million, or 5.1% 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 $105.4 million and a $17.8 million decrease in available-for-sale securities, partially offset by an increase of $35.2 million in net loans.  The increase in net loans primarily consisted of a $102.5 million increase in commercial real estate loans, partially offset by a decrease of $77.3 million in Payroll Protection Program ("PPP") loans which are no longer being offered by the SBA.

Total deposits at December 31, 2022 decreased $98.4 million, or 6.8%, when compared to December 31, 2021.  When comparing deposit products between the two periods, money market deposits decreased $89.4 million, savings decreased $34.9 million and non-interest-bearing demand deposits decreased $21.2 million.  Partially offsetting these decreases were increases in certificates of deposit of $36.4 million and interest-bearing demand deposits of $10.7 million. In addition, the Bank had $10 million in outstanding borrowings at December 31, 2022 and none at December 31, 2021.  

Total stockholders' equity at December 31, 2022 increased $3.0 million or 1.4% when compared to the end of 2021. The increase was primarily due to the $20.0 million increase in retained earnings consisting of $26.5 million in income less $6.5 million of cash dividends recorded during the period.  Partially offsetting this increase was $9.4 million of common stock repurchased pursuant to the 2022 buyback program, and a $9.1 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.  The ratio of equity to total assets at December 31, 2022 and at December 31, 2021, was 13.7% and 12.8%, respectively.  

Asset Quality

At December 31, 2022, non-performing assets were $266 thousand, a decrease of $1.1 million, or 81.0%, 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 $757 thousand write-down of a non-performing loan.  Troubled debt restructurings ("TDRs") totaled $5.9 million at December 31, 2022 and $6.9 million at December 31, 2021. All three TDR loans totaling $5.9 million are performing in accordance with the agreed-upon terms as of December 31, 2022.  

Review of Quarterly and Year-to-Date Financial Results

Net interest income was $18.2 million for the fourth quarter of 2022, compared to $17.7 million for the third quarter of 2022 and $16.0 million for the fourth quarter of 2021.  The increase from the previous quarter was the result of an increase in interest income of $1.4 million, or 7.2%, partially offset by an increase in interest expense of $817 thousand.  The net interest margin for the fourth quarter 2022 was 4.82%, increasing 18 basis points when compared to the third quarter of 2022. This increase was primarily associated with an increase of 39 basis points in the yield on earning assets. When comparing the three-month periods ended December 31, 2022 and 2021, net interest income increased $2.2 million, which was primarily due to an increase of 109 basis points in the yield earned on interest-earning assets. For the year ended December 31, 2022, net interest income was $68.1 million compared to $62.6 million for the year ended December 31, 2021.  The increase from the previous year was the result of an increase in interest income of $4.8 million, or 6.9% and a decrease in interest expense of $674 thousand, or 10.1%.  The rate on total deposits, for the three-month periods ended December 31, 2022 and 2021 was 0.64% and 0.38%, respectively.  For the years ended December 31, 2022 and 2021, the rate on total deposits was 0.43% and 0.47%, respectively.

The Bank recorded provisions for loan losses of $200 thousand and $400 thousand during the three-months and year ended December 30, 2022, respectively. The comparable amounts were $300 thousand and $3.6 million for the three months and year ended December 31, 2021, respectively. Net charge-offs for the three-month and twelve-month periods ended December 31, 2022 were $406 thousand and $560 thousand, respectively.  Net charge-offs for the comparable periods in 2021 were $101 thousand and $1.8 million, 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 1.20% (excluding and including PPP loans) at December 31, 2022, compared to 1.24% (excluding PPP loans it was 1.32%) at December 31, 2021.

Total non-interest income of $1.0 million for the fourth quarter of 2022 decreased $710 thousand and $470 thousand, or by 41.6% and 32.0%, when compared to the quarter ended September 30, 2022 and the quarter ended December 31, 2021, respectively. The decrease over the prior quarter was primarily due to a $614 thousand decrease in loan fees and a $58 thousand decrease in other fees and service charges. The decrease over the 2021 period was primarily due to a $521 thousand decrease in loan fees, partially offset by a $117 thousand increase in other non-interest income. For the year ended December 31, 2022, non-interest income increased $196 thousand, or 4.2%, from the year ended December 31, 2021, primarily due to a $365 thousand increase in other non-interest income, partially offset by a $273 thousand decrease in loan fees.

Total non-interest expense for the fourth quarter of 2022 increased $708 thousand, or 7.9%, when compared to the same period in 2021.  This increase was primarily due to a $537 thousand increase in salaries and benefits expenses and a $456 thousand increase in data processing and communications expenses partially offset by decreases in other real estate owned expense of $157 thousand, other non-interest expenses of $115 thousand and occupancy and equipment expenses of $108 thousand. When comparing the quarter ended December 31, 2022 to the immediately preceding quarter, non-interest expense decreased $454 thousand, or 4.5%, primarily due to decreases in salaries and employee benefits costs, professional fees and occupancy and equipment expenses, partially offset by an increase in data processing and communications expenses. For the year ended December 31, 2022, non-interest expense was $38.5 million, compared to $34.5 million for the same period in 2021. This increase was primarily due to increases in salaries and benefits expenses as a result of additional benefit programs and increases in data processing and communications costs related to technology costs incurred to enhance services.

For the three-month period ended December 31, 2022, the Bank recorded an income tax expense of $2.2 million, resulting in an effective tax rate of 23.5%, compared to an income tax expense of $2.1 million resulting in an effective tax rate of 23.2% for the three-month period ended September 30, 2022, and compared to an income tax expense of $2.0 million resulting in an effective tax rate of 24.6% for the three-month period ended December 31, 2021.  For the years ended December 31, 2022 and 2021, the income tax expenses were $7.6 million (effective tax rate of 22.2%) and $6.7 million (effective tax rate of 23.0%), respectively.

About Princeton Bancorp, Inc. and The Bank of Princeton

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, 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

Princeton Bancorp, Inc. may from time to time make written or oral "forward-looking statements," including statements contained in the company's filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the company (including this press release), which are made in good faith by the company 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  company's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the company's control). The following factors, among others, could cause the company'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 company and the Bank conduct 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 company and the Bank; and the timing and nature of the regulatory response to any applications filed by the company and the Bank; technological changes; acquisitions including the company's pending acquisition of Noah Bank; ability to meet other closing conditions to that acquisition; delay in closing the acquisition; difficulties and delays in integrating the businesses of Noah Bank and the Bank or fully realizing cost savings and other benefits; 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 company at managing the risks involved in the foregoing.

The company cautions that the foregoing list of important factors is not exclusive. The company 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 company, except as required by applicable law or regulation.

The Bank of Princeton


Consolidated Statements of Financial Condition



(Unaudited)



(Dollars in thousands, except per share data)


















December 31,


December 31,




 2022 vs 2021


 2022 vs 2021





2022


2021




$ Change


% Change
















ASSETS



Cash and cash equivalents


$           53,351


$           158,716




$             (105,365)


-66.4 %



Securities available-for-sale taxable


42,061


51,690




(9,629)


-18.6 %



Securities available-for-sale tax-exempt


41,341


49,468




(8,127)


-16.4 %



Securities held-to-maturity


201


208




(7)


-3.4 %



Loans receivable, net of deferred


1,370,368


1,335,163




35,205


2.6 %



Allowance for loan losses


(16,461)


(16,620)




159


-1.0 %



Goodwill


8,853


8,853




-


0.0 %



Core deposit intangible


1,825


2,393




(568)


-23.7 %



Other assets


100,240


97,811




2,429


2.5 %



TOTAL ASSETS


$       1,601,779


$        1,687,682




$               (85,903)


-5.1 %





























LIABILITIES













Non-interest checking


$         265,078


$           286,247




$               (21,169)


-7.4 %



Interest checking


269,737


259,022




10,715


4.1 %



Savings


190,685


225,579




(34,894)


-15.5 %



Money market


283,652


373,075




(89,423)


-24.0 %



Time deposits over $250


76,150


33,741




42,409


125.7 %



Other time deposits


262,428


268,479




(6,051)


-2.3 %



Total deposits


1,347,730


1,446,143




(98,413)


-6.8 %



Borrowings


10,000


-




10,000


       N/A



Other liabilities


24,448


24,961




(513)


-2.1 %



    TOTAL LIABILITIES


1,382,178


1,471,104




(88,926)


-6.0 %
















STOCKHOLDERS' EQUITY













 Common stock 


34,547


34,100




447


1.3 %



 Paid-in capital 


81,291


80,220




1,071


1.3 %



 Treasury stock 


(19,452)


(10,032)




(9,420)


93.9 %



 Retained earnings 


131,488


111,451




20,037


18.0 %



 Accumulated other comprehensive income (loss) 


(8,273)


839




(9,112)


-1086.1 %



     TOTAL STOCKHOLDERS' EQUITY 


219,601


216,578




3,023


1.4 %
















TOTAL LIABILITIES 













     AND STOCKHOLDERS' EQUITY


$       1,601,779


$        1,687,682




$               (85,903)


-5.1 %
















Book value per common share


$            35.16


$              33.42




$                   1.74


5.2 %



Tangible book value per common share1


$            33.45


$              31.69




$                   1.76


5.6 %
















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 December 31, 2022 and 2021 were as follows:















December 31,


December 31,




2022


2021




(In thousands)


Commercial real estate


$        873,573


$        771,028


Commercial and industrial


28,859


29,677


Construction


417,538


403,680


Residential first-lien mortgages


43,125


48,638


Home equity / consumer


7,260


7,685


PPP I (SBA loans)


1,307


6,641


PPP II (SBA loans)


1,162


73,099


     Total loans


1,372,824


1,340,448


Deferred fees and costs


(2,456)


(5,285)


Allowance for loan losses


(16,461)


(16,620)


     Loans, net


$     1,353,907


$     1,318,543














The components of deposits at December 31, 2022 and 2021 were as follows:










December 31,


December 31,




2022


2021




(In thousands)


Demand, non-interest-bearing


$        265,078


$        286,247


Demand, interest-bearing 


269,737


259,022


Savings


190,685


225,579


Money markets


283,652


373,075


Time deposits


338,578


302,220


     Total deposits


$     1,347,730


$     1,446,143


 


The Bank of Princeton


Consolidated Statements of Income


(Unaudited)


(Amounts in thousands except per share data)
















Three Months Ended December 31,









2022


2021


$ Change


% Change


Interest and dividend income










Loans and fees

$              19,400


$              16,861


$    2,539


15.1 %



Available-for-sale debt securities:











Taxable

288


194


94


48.5 %




Tax-exempt

285


295


(10)


-3.4 %



Held-to-maturity debt securities

3


3


0


0.0 %



Other interest and dividend income

482


58


424


731.0 %




Total interest and dividends

20,458


17,411


3,047


17.5 %













Interest expense













Deposits

2,210


1,411


799


56.6 %




Borrowing

2


-


2


       N/A




Total interest expense

2,212


1,411


801


56.8 %













Net interest income


18,246


16,000


2,246


14.0 %


Provision for loan losses

200


300


(100)


-33.3 %


Net interest income after provision for loan losses

18,046


15,700


2,346


14.9 %













Non-interest income










Income from bank-owned life insurance

286


290


(4)


-1.4 %



Fees and service charges

411


473


(62)


-13.1 %



Loan fees, including prepayment penalties

236


757


(521)


-68.8 %



Other 

64


(53)


117


-220.8 %




Total non-interest income

997


1,467


(470)


-32.0 %













Non-interest expense










Salaries and employee benefits

5,204


4,667


537


11.5 %



Occupancy and equipment

1,413


1,521


(108)


-7.1 %



Professional fees

541


511


30


5.9 %



Data processing and communications

1,354


898


456


50.8 %



Federal deposit insurance

222


206


16


7.8 %



Advertising and promotion

105


42


63


150.0 %



Office expense

71


66


5


7.6 %



Other real estate owned

(6)


151


(157)


-104.0 %



Core deposit intangible

135


154


(19)


-12.3 %



Other 

632


747


(115)


-15.4 %




Total non-interest expense

9,671


8,963


708


7.9 %













Income before income tax expense

9,372


8,204


1,168


14.2 %


Income tax expense

2,201


2,021


180


8.9 %


Net income

$               7,171


$               6,183


988


16.0 %













Net income per common share - basic

$                 1.14


$                 0.94


$     0.20


21.1 %


Net income per common share - diluted

$                 1.13


$                 0.92


$     0.21


22.3 %













Weighted average shares outstanding - basic

6,246


6,538


(292)


-4.5 %


Weighted average shares outstanding - diluted

6,371


6,694


(323)


-4.8 %

 


The Bank of Princeton


Consolidated Statements of Income (Current Quarter vs Prior Quarter)


(Unaudited)


(Amounts in thousands, except per share data)
















Three Months Ended









December 31,


September 30,









2022


2022


$ Change


% Change


Interest and dividend income










Loans and fees

$       19,400


$       18,336


$      1,064


5.8 %



Available-for-sale debt securities:











Taxable

288


241


47


19.5 %




Tax-exempt

285


286


(1)


-0.3 %



Held-to-maturity debt securities

3


2


1


50.0 %



Other interest and dividend income

482


226


256


113.3 %




Total interest and dividends

20,458


19,091


1,367


7.2 %













Interest expense













Deposits

2,210


1,392


818


58.8 %




Borrowing

2


3


(1)


-33.3 %




Total interest expense

2,212


1,395


817


58.6 %













Net interest income


18,246


17,696


550


3.1 %


Provision for loan losses

200


200


0


0.0 %


Net interest income after provision for loan losses

18,046


17,496


550


3.1 %













Non-interest income










Income from bank-owned life insurance

286


287


(1)


-0.3 %



Fees and service charges

411


469


(58)


-12.4 %



Loan fees, including prepayment penalties

236


850


(614)


-72.2 %



Other 

64


101


(37)


-36.6 %




Total non-interest income

997


1,707


(710)


-41.6 %













Non-interest expense










Salaries and employee benefits

5,204


5,442


(238)


-4.4 %



Occupancy and equipment

1,413


1,539


(126)


-8.2 %



Professional fees

541


786


(245)


-31.2 %



Data processing and communications

1,354


1,043


311


29.8 %



Federal deposit insurance

222


249


(27)


-10.8 %



Advertising and promotion

105


140


(35)


-25.0 %



Office expense

71


52


19


36.5 %



Other real estate owned

(6)


-


(6)


       N/A



Core deposit intangible

135


135


0


0.0 %



Other 

632


739


(107)


-14.5 %




Total non-interest expense

9,671


10,125


(454)


-4.5 %













Income before income tax expense

9,372


9,078


294


3.2 %


Income tax expense

2,201


2,103


98


4.7 %


Net income

$         7,171


$         6,975


$        196


2.8 %













Net income per common share - basic

$           1.14


$           1.12


$       0.02


1.6 %


Net income per common share - diluted

$           1.13


$           1.09


$       0.04


3.3 %













Weighted average shares outstanding - basic

6,246


6,269


(23)


-0.4 %


Weighted average shares outstanding - diluted

6,371


6,378


(7)


-0.1 %

 


The Bank of Princeton


Consolidated Statements of Income


(Unaudited)


(Amounts in thousands, except per share data)
















Year Ended









December 31,









2022


2021


$ Change


% Change


Interest and dividend income










Loans and fees

$ 70,996


$  67,348


$       3,648


5.4 %



Available-for-sale debt securities:











Taxable

986


547


439


80.3 %




Tax-exempt

1,167


1,172


(5)


-0.4 %



Held-to-maturity debt securities

11


11


-


0.0 %



Other interest and dividend income

923


197


726


368.5 %




Total interest and dividends

74,083


69,275


4,808


6.9 %













Interest expense













Deposits

5,995


6,673


(678)


-10.2 %




Borrowings

5


1


4


400.0 %




Total interest expense

6,000


6,674


(674)


-10.1 %













Net interest income


68,083


62,601


5,482


8.8 %


Provision for loan losses

400


3,625


(3,225)


-89.0 %


Net interest income after provision for loan losses

67,683


58,976


8,707


14.8 %













Non-Interest income










Gain on sale of securities available-for-sale, net

2


7


(5)


-71.4 %



Income from bank-owned life insurance

1,138


1,117


21


1.9 %



Fees and service charges

1,852


1,764


88


5.0 %



Loan fees, including prepayment penalties

1,484


1,757


(273)


-15.5 %



Other 

386


21


365


1738.1 %




Total non-interest income

4,862


4,666


196


4.2 %













Non-interest expense










Salaries and employee benefits

20,455


17,483


2,972


17.0 %



Occupancy and equipment

5,859


6,055


(196)


-3.2 %



Professional fees

2,470


2,431


39


1.6 %



Data processing and communications

4,488


3,562


926


26.0 %



Federal deposit insurance

1,010


792


218


27.5 %



Advertising and promotion

484


214


270


126.2 %



Office expense

239


219


20


9.1 %



Other real estate owned

106


241


(135)


-56.0 %



Core deposit intangible

569


643


(74)


-11.5 %



Other 

2,812


2,813


(1)


0.0 %




Total non-interest expense

38,492


34,453


4,039


11.7 %













Income before income tax expense

34,053


29,189


4,864


16.7 %


Income tax expense

7,559


6,703


856


12.8 %


Net income

$ 26,494


$  22,486


$       4,008


17.8 %













Net income per common share - basic

$    4.19


$     3.37


$        0.82


24.4 %


Net income per common share - diluted

$    4.11


$     3.30


$        0.81


24.5 %













Weighted average shares outstanding - basic

6,320


6,667


(347)


-5.2 %


Weighted average shares outstanding - diluted

6,449


6,814


(365)


-5.4 %

 

The Bank of Princeton

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)














For the Three Months Ended December 31,






2022


2021






Average 


Yield/


Average 


Yield/






Balance


Rate 


Balance


Rate 


$ Change


% Change

Earning assets












Loans 

$     1,375,191


5.60 %


$    1,347,511


4.96 %


$        27,680


0.64 %

Securities












  Taxable available-for-sale

42,458


2.69 %


50,124


1.56 %


(7,666)


1.13 %

  Tax-exempt available-for-sale

39,743


2.85 %


47,562


2.47 %


(7,819)


0.38 %

  Held-to-maturity

202


5.24 %


209


5.27 %


(7)


-0.03 %

Securities

82,403


2.77 %


97,895


2.01 %


(15,492)


0.76 %













Other interest earning assets












  Interest-bearing bank accounts

44,410


4.09 %


157,550


0.11 %


(113,140)


3.98 %

  Equities

1,303


7.40 %


1,338


3.99 %


(35)


3.41 %

Other interest-earning assets

45,713


4.19 %


158,888


0.15 %


(113,175)


4.04 %

Total interest-earning assets

1,503,307


5.40 %


1,604,294


4.31 %


(100,987)


1.09 %

Total non-earning assets

109,554




102,987







Total assets

$     1,612,861




$    1,707,281































Interest-bearing liabilities












Checking

$        275,797


0.45 %


$      274,944


0.26 %


$            853


0.19 %

Savings

201,498


0.53 %


223,590


0.23 %


(22,092)


0.30 %

Money market

294,246


0.91 %


367,493


0.27 %


(73,247)


0.64 %

Certificates of deposit

316,689


1.19 %


312,634


1.09 %


4,055


0.10 %

    Total interest-bearing deposits

1,088,230


0.81 %


1,178,661


0.48 %


(90,431)


0.33 %

Non-interest bearing deposits

280,626




288,292







    Total  deposits

1,368,856


0.64 %


1,466,953


0.38 %


(98,097)


0.26 %

Borrowings

217


4.67 %


-


0.00 %


217


4.67 %

    Total interest-bearing liabilities 












       (excluding non interest deposits)

1,088,447


0.81 %


1,178,661


0.48 %


(90,214)


0.33 %

Non-interest-bearing deposits

280,626




288,292







Total cost of funds

1,369,073


0.64 %


1,466,953


0.38 %


(97,880)


0.26 %

Accrued expenses and other liabilities

28,215




24,056







Stockholders' equity

215,573




216,272







Total liabilities and stockholders' equity

$     1,612,861




$    1,707,281



















Net interest spread



4.59 %




3.83 %





Net interest margin



4.82 %




3.96 %





Net interest margin (FTE)1



4.89 %




4.02 %

















  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






December 31, 2022


September 30, 2022






Average 


Yield/


Average 


Yield/






Balance


Rate 


Balance


Rate 


$ Change


% Change

Earning assets












Loans 

$    1,375,191


5.60 %


$       1,386,589


5.25 %


$      (11,398)


0.35 %

Securities












  Taxable available-for-sale

42,458


2.69 %


46,281


2.06 %


(3,823)


0.63 %

  Tax-exempt available-for-sale

39,743


2.85 %


42,220


2.68 %


(2,477)


0.17 %

  Held-to-maturity

202


5.24 %


204


5.24 %


(2)


0.00 %

Securities

82,403


2.77 %


88,705


2.37 %


(6,302)


0.40 %













Other interest earning assets












  Interest-bearing bank accounts

44,410


4.09 %


35,081


2.28 %


9,329


1.81 %

  Equities

1,303


7.40 %


1,322


5.85 %


(19)


1.55 %

Other interest-earning assets

45,713


4.19 %


36,403


2.41 %


9,310


1.78 %

Total interest-earning assets

1,503,307


5.40 %


1,511,697


5.01 %


(8,390)


0.39 %

Total non-earning assets

109,554




115,159







Total assets

$    1,612,861




$       1,626,856































Interest-bearing liabilities












Checking

$      275,797


0.45 %


$         240,948


0.29 %


$       34,849


0.16 %

Savings

201,498


0.53 %


217,133


0.32 %


(15,635)


0.21 %

Money market

294,246


0.91 %


350,901


0.43 %


(56,655)


0.48 %

Certificates of deposit

316,689


1.19 %


289,274


0.86 %


27,415


0.33 %

    Total interest-bearing deposits

1,088,230


0.81 %


1,098,256


0.51 %


(10,026)


0.30 %

Non-interest bearing deposits

280,626




285,665







    Total  deposits

1,368,856


0.64 %


1,383,921


0.40 %


(15,065)


0.24 %

Borrowings

217


4.67 %


391


2.65 %


(174)


2.02 %

    Total interest-bearing liabilities 












       (excluding non interest deposits)

1,088,447


0.81 %


1,098,647


0.51 %


(10,200)


0.30 %

Non-interest-bearing deposits

280,626




285,665







Total cost of funds

1,369,073


0.64 %


1,384,312


0.40 %


(15,239)


0.24 %

Accrued expenses and other liabilities

28,215




28,136







Stockholders' equity

215,573




214,408







Total liabilities and stockholders' equity

$    1,612,861




$       1,626,856



















Net interest spread



4.59 %




4.50 %





Net interest margin



4.82 %




4.64 %





Net interest margin (FTE)1



4.89 %




4.71 %

















  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 Year Ended December 31,






2022


2021






Average 


Yield/


Average 


Yield/






Balance


Rate 


Balance


Rate 


$ Change


% Change

Earning assets












Loans 

$    1,375,501


5.16 %


$    1,381,626


4.87 %


$          (6,125)


0.29 %

Securities












  Taxable available-for-sale

47,626


2.07 %


33,805


1.62 %


13,821


0.45 %

  Tax-exempt available-for-sale

44,832


2.60 %


47,294


2.48 %


(2,462)


0.12 %

  Held-to-maturity

205


5.25 %


212


5.27 %


(7)


-0.02 %

Securities

92,664


2.34 %


81,311


2.13 %


11,353


0.21 %













Other interest earning assets












  Interest-bearing bank accounts

75,583


1.12 %


93,031


0.15 %


(17,448)


0.97 %

  Equities

1,321


5.57 %


1,366


4.21 %


(45)


1.36 %

Other interest-earning assets

76,904


0.44 %


94,397


0.21 %


(17,493)


0.23 %

Total interest-earning assets

1,545,069


4.79 %


1,557,334


4.45 %


(12,265)


0.34 %

Total non-earning assets

101,940




101,479







Total assets

$    1,647,008




$    1,658,813































Interest-bearing liabilities












Checking

$      261,951


0.31 %


$      263,715


0.27 %


$          (1,764)


0.04 %

Savings

220,222


0.32 %


205,788


0.25 %


14,434


0.07 %

Money market

353,224


0.44 %


339,903


0.30 %


13,321


0.14 %

Certificates of deposit

293,627


0.99 %


336,488


1.32 %


(42,861)


-0.33 %

    Total interest-bearing deposits

1,129,024


0.42 %


1,145,894


0.58 %


(16,870)


-0.16 %

Non-interest bearing deposits

280,729




273,260







    Total  deposits

1,409,753


0.43 %


1,419,154


0.47 %


(9,401)


-0.04 %













Borrowings

153


3.37 %


270


0.32 %


(117)


3.05 %

    Total interest-bearing liabilities 












       (excluding non interest deposits)

1,129,177


0.53 %


1,146,164


0.58 %


(16,987)


-0.05 %

Non-interest-bearing deposits

280,729




273,260







Total cost of funds

1,409,906


0.43 %


1,419,424


0.47 %


(9,518)


-0.04 %

Accrued expenses and other liabilities

22,307




25,470







Stockholders' equity

214,795




213,919







Total liabilities and stockholders' equity

$    1,647,008




$    1,658,813



















Net interest spread



4.26 %




3.87 %





Net interest margin



4.41 %




4.02 %





Net interest margin (FTE)1



4.47 %




4.12 %

















  1Includes federal and state tax effect of tax-exempt securities and loans.










 

The Bank of Princeton

Quarterly Financial Highlights

(Unaudited)













2022


2022


2022


2022


2021



December


September


June


March


December













     Return on average assets 

1.76 %


1.70 %


1.52 %


1.45 %


1.44 %


     Return on average equity 

13.20 %


12.91 %


11.90 %


11.25 %


11.34 %


     Return on average tangible equity1

13.89 %


13.59 %


12.54 %


11.86 %


11.97 %


     Net interest margin

4.82 %


4.64 %


4.19 %


4.09 %


3.96 %


     Net interest margin (FTE)2

4.89 %


4.71 %


4.24 %


4.14 %


4.02 %


     Efficiency ratio - non-GAAP3 

49.56 %


51.49 %


53.36 %


53.93 %


50.43 %













COMMON STOCK DATA











     Market value at period end

$     31.72


$     28.35


$     27.46


$     28.85


$     29.33


     Market range:











        High

$     32.80


$     29.95


$     30.55


$     32.05


$     30.89


        Low

$     28.57


$     27.16


$     26.57


$     28.67


$     28.71


     Book value per common share at period end

$     35.16


$     34.00


$     33.74


$     33.49


$     33.42


     Tangible book value per common share at period end4

$     33.45


$     32.27


$     32.00


$     31.75


$     31.96


     Shares of common stock outstanding (in thousands)

6,245


6,251


6,263


6,366


6,480













CAPITAL RATIOS











Total capital (to risk-weighted assets)

15.12 %


14.71 %


14.13 %


14.16 %


15.10 %


Tier 1 capital (to risk-weighted assets)

14.06 %


13.63 %


13.08 %


13.10 %


13.97 %


Tier 1 capital (to average assets)

13.47 %


13.10 %


12.46 %


12.36 %


12.06 %


     Period-end equity to assets

13.71 %


13.26 %


13.00 %


12.71 %


12.84 %


     Period-end tangible equity to tangible assets 1,5

13.13 %


12.67 %


12.42 %


12.13 %


12.26 %













CREDIT QUALITY DATA (Dollars in thousands)











     Net charge-offs (recoveries)

$       406


$       200


$        (12)


$        (34)


$       101


     Annualized net charge-offs (recoveries) to average loans

0.118 %


0.058 %


-0.003 %


-0.010 %


0.030 %













     Nonperforming loans (excluding TDRs)

$       266


$       370


$       402


$       406


$       409


     Other real estate owned

-


-


-


226


226


     Troubled debt restructurings (TDRs)











           -Performing

5,882


5,943


6,001


6,066


6,122


           -Non-performing

-


359


563


766


766


     Total nonperforming assets and accruing TDRs 

$     6,148


$     6,672


$     6,966


$     7,464


$     7,523













     Allowance for loan losses as a percent of:











     Period-end loans      

1.20 %


1.21 %


1.19 %


1.19 %


1.24 %


     Nonaccrual loans 

6188.35 %


2286.15 %


1727.05 %


1420.99 %


1398.99 %


     Nonperforming assets 

6188.35 %


2286.15 %


1727.05 %


1191.27 %


1175.39 %













    As a percent of total loans:











    Nonaccrual loans 

0.02 %


0.05 %


0.07 %


0.08 %


0.09 %


    Accruing TDRs 

0.43 %


0.43 %


0.43 %


0.43 %


0.46 %


    Nonaccrual loans and accruing TDRs 

0.45 %


0.48 %


0.50 %


0.52 %


0.55 %



1Tangible equity is a non-GAAP measure that represents equity excluding goodwill and core deposit intangible.

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. 

5Tangible assets is a non-GAAP measure that represents assets excluding goodwill and core deposit intangible.

 

Contact George Rapp
609.454.0718
[email protected]

SOURCE The Bank of Princeton


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