The Bank of Princeton : Announces Fourth Quarter 2020 Results

PRINCETON, N.J., Jan. 28, 2021 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ: BPRN) today reported its unaudited results of operations and financial condition for the quarter ended December 31, 2020.  The Bank reported net income of $4.1 million, or $0.60 per diluted common share, for the fourth quarter of 2020, compared to net income of $3.5 million, or $0.52 per diluted common share, for the third quarter of 2020, and net income of $3.4 million, or $0.49 per diluted common share, for the fourth quarter of 2019. The increase in net income, when compared to the three months ended September 30, 2020, was primarily due to a $789 thousand increase in net-interest income and a $275 thousand reduction in the provision for loan losses, partially offset by a $105 thousand decrease in non-interest income and a $316 thousand increase in non-interest expense. The increase in net income, when comparing it to the three months ended December 31, 2019, was primarily due to an increase in net-interest income of $3.2 million and a $376 thousand increase in non-interest income, partially offset by a $1.5 million increase in the provision for loan losses, a $1.0 million increase in non-interest operating expenses and a $256 thousand increase in income tax expense.  For the twelve month period ended December 31, 2020, the Bank recorded net income of $13.8 million, or $2.01 per diluted common share, compared to $10.1 million, or $1.47 per diluted common share for the same period in 2019. This increase over 2019's results was primarily due to a $7.4 million increase in net-interest income and a $1.4 million increase in non-interest income, partially offset by $3.4 million increase in non-interest expenses, a $1.3 million increase in income tax expense and a $425 thousand increase in the provision for loan losses.

Highlights for the quarter-ended December 31, 2020 are as follows:

• Net interest income for the fourth quarter of 2020 increased $3.2 million or 30.3% over the same period in 2019
• The Bank decreased its cost of funds by 89 basis points in the fourth quarter 2020 from the fourth quarter 2019.
• Non-interest income for the fourth quarter 2020 increased $376 thousand or 47.4% from the fourth quarter 2019.
• The Bank efficiency ratio decreased to 52.6% for the fourth quarter 2020 compared to 59.63% from the fourth quarter 2019.
• The ratio of nonperforming loans to total loans continues to be low at 0.12% as of December 31, 2020 compared to 0.21% at December 31, 2019

President/CEO Edward Dietzler stated that, "The Bank had a very strong fourth quarter and year for 2020 while contending with the economic headwind, created by the COVID-19 pandemic.  The Bank continues to realize a decline in cost of funds paid on deposits translating into a 36.1% increase in annual net income year over year."

Chairman Richard Gillespie added, "We are extremely proud of Bank's management and our employees for the response to the challenges of COVID-19.  Even while maintaining our focus on serving our customers through the pandemic, the Bank has made substantial strides toward increased profitability. We are well positioned for 2021."

Balance Sheet Review

Total assets were $1.60 billion at December 31, 2020, an increase of $147.9 million or 10.2% when compared to $1.45 billion at the end of 2019. The primary reason for the increase in total assets was due to an increase in net loans of approximately $175.9 million, primarily consisting of phase one Payroll Protection Program ("PPP") loans guaranteed by the U.S. government.

Total deposits at December 31, 2020 increased by $129.4 million, or 10.5%, when compared to December 31, 2019, primarily due to loan proceeds maintained in non-interest demand accounts from customers who received PPP loans as well as growth from new branches added since year end 2019.  When comparing deposit products between the two periods, non-interest checking increased $74.0 million, interest bearing demand accounts increased $76.2 million, savings increased $24.2 million and money markets increased $10.4 million. These increases were partially offset by a decrease of $55.4 million in certificates of deposit. In addition, the Bank had no outstanding borrowings at December 31, 2020 and 2019.  

Total stockholders' equity at December 31, 2020 increased $12.9 million or 6.6% when compared to the end of 2019. This increase was primarily due to earnings recorded during the twelve months of 2020 minus the cash dividend paid during the period, and an increase of $1.2 million in the fair-value of the available-for-sale investment portfolio.   The ratio of equity to total assets at December 31, 2020 was 13.0% compared to 13.5% at December 31, 2019, as the current period ratio was impacted by the 10.25% growth in assets.

Asset Quality

At December 31, 2020, non-performing assets were $1.7 million, a decrease of $766 thousand, or 31.4%, when compared to the amount at December 31, 2019.  This decrease at December 31, 2020 from December 31, 2019 was primarily due to $716 thousand in charge-offs, as well as $325 thousand in principal payments on non-performing loans, partially offset by two additional non-performing loans totaling $275 thousand.  Troubled debt restructurings ("TDR") totaled $8.7 million at December 31, 2020, compared to $9.3 million at December 31, 2019, a decrease of $589 thousand or 6.3%. Two loans totaling $2.3 million had deferred their payments resulting from the COVID-19 loan deferral program and the remaining loans are performing to their agreed upon terms.

As part of the Bank's commitment to provide assistance during the COVID-19 pandemic, the Bank agreed to defer either the principal portion or both principal and interest payments for its customers who requested the deferral and were not delinquent prior to the government shut down.  The Bank is seeing a favorable trend as a majority of customers have returned to their regular payment schedule. As of December 31, 2020, the Bank had remaining 14 loans that were modified totaling $45.0 million, down from the 240 loans totaling $263.5 million originally approved, for such deferment reported as of June 30, 2020. Under current accounting guidance, these loans are not required to be classified as TDR's.

Review of Quarterly Financial Results

Net-interest income was $13.6 million for the fourth quarter of 2020, compared to $12.8 million for the third quarter of 2020 and $10.4 million for the fourth quarter of 2019.  The increase from the previous quarter was a result of an increase in interest income of $367 thousand and a $422 thousand, or 15.6%, decrease in interest paid on liabilities, partially resulting from a 16 basis points reduction in the rate on interest bearing deposits.  The net interest margin for the fourth quarter of 2020 was 3.63%, increasing 18 basis points when compared to the third quarter of 2020. This increase was primarily associated with a reduction of 12 basis points in total interest cost of funds, and an increase of 7 basis points in the yield on earning assets. When comparing the three month periods ended December 31, 2020 and 2019, net interest income increased $3.2 million, which was primarily due to a reduction in interest expense of $2.5 million aided by an increase in interest income of $660 thousand caused by a $154.0 million increase in interest earning assets.  The reduction in interest expense was attributed to decline of 96 basis points in the rate paid on its interest-bearing liabilities resulting from the two Federal Open Market Committee ("FOMC") rate reductions in March of 2020 totaling 150 basis points and the three 25 basis points reductions during 2019. The cost of funds rate was 0.68%, including non-interest deposits, for the fourth quarter 2020.

For the twelve month period ended December 31, 2020, net-interest income was $48.9 million, an increase of $7.4 million, or 17.8%, over the same period in 2019.  This increase was due a $2.0 million increase in interest income and a $5.4 million decline in interest expense. For the twelve month period ended December 31, 2020, the average outstanding balance of earning assets increased by $145.3 million and average outstanding balance of interest-bearing liabilities increased $63.0 million.  The total rate on liabilities, which includes non-interest-bearing deposits, for the three month periods ended December 31, 2020 and 2019 was 0.68% and 1.57%, respectively.  For the twelve month periods ended December 31, 2020 and 2019 the total rate on interest-bearing liabilities, which includes non-interest bearing deposits, was 0.98% and 1.60%, respectively.

The provision for credit losses was $1.7 million for the three month period ended December 31, 2020.  The comparable amounts were $1.9 million and $125 thousand for the three months ended September 30, 2020 and December 31, 2019, respectively. The primary reason for the elevated provision in the fourth quarter was due to an increase in the Bank's general reserves.  The general reserves increase was due to increases in qualitative factors due to  growth within the Bank's loan portfolio mainly in the construction and development loans, continued uncertainties of the economic impact from the COVID-19 pandemic and an increase in the historical loss factor resulting from increased levels of prior period charge-offs.  As of December 31, 2020, the Bank did not apply any qualitative factors to the loans originated from PPP, based on the U.S government's guarantee and the Coronavirus Aid, Relief and Economic Securities Act requirement to classify these loans at 0% in determining risk-based capital ratio.  The rate of allowance for credit losses to period end loans was 1.18% (excluding PPP loans, the coverage ratio was 1.35%) at December 31, 2020, compared to 1.06% at December 31, 2019, which reflects management's assessment of the credit quality in the loan portfolio.

At December 31, 2020, the Bank's concentration in the loan portfolio associated with the segments management believes could be effected by the pandemic: restaurants, hotels and retail, totaled $17.3 million, $49.4 million and $52.1 million, respectively.  

Total non-interest income for the fourth quarter of 2020 increased $376 thousand to $1.2 million, or 47.4%, when compared to the same period in 2019. This increase was primarily due to an increase in service charges on deposits and loan fees collected.   When compared to the three month periods ended September 30, 2020, total non-interest income for the fourth quarter of 2020 decreased by $105 thousand, or 8.2%, primarily due an decrease of $77 thousand in loan fees and $31 thousand in gains recorded from investment securities available-for-sale.  For the twelve month period ended December 31, 2020, non-interest income increased $1.4 million, or 41.7%, primarily due to increases of $540 thousand from the gains recorded from the sale of investment securities available-for-sale, $431 thousand  in service charges collected and $391 thousand in loan fees.

Total non-interest expense for the fourth quarter of 2020 increased $1.0 million, or 15.1%, when compared to the same period in 2019.  This increase was primarily due to an increase in additional operating cost associated with the Bank's branch expansion strategy.  When comparing December 31, 2020 to the immediately prior quarter, non-interest expense increased $316 thousand, or 4.2%, primarily due to increases in professional fees expense, Federal Deposit Insurance expense, occupancy and equipment expenses, data processing and communication expenses, and other operating expenses, partially offset by reductions in salaries and benefits expenses, advertising expense, and office expenses.  For the twelve month period ended December 31, 2020, non-interest expense was $31.1 million, compared to $27.7 million for the same period in 2019. The increase was due to an increase in additional operating cost associated with the Bank's branch expansion strategy.

For the three month period ended December 31, 2020, the Bank recorded an income tax expense of $1.1 million, resulting in an effective tax rate of 20.7%, compared to an income tax expense of $988 thousand resulting in an effective tax rate of 21.8% for the three month period ended September 30, 2020, and compared to an income tax expense of $817 thousand resulting in an effective tax rate of 19.4% for the three month period ended December 31, 2019. During the third quarter of 2020, the New Jersey Governor signed a law extending and retroactively increasing New Jersey's corporation business tax surtax by 1.0% to 2.5%. The effective tax rate for all three periods were impacted by the level of tax-free income against the level of taxable earnings.

COVID-19

The full impact of the coronavirus continues to evolve as of the date of this press release. As such, it is uncertain as to the full magnitude that the pandemic will have on the Bank's financial condition, liquidity and future results of operations.  

The Bank continues to work closely with its loan customers to educate and guide them on their options for financial assistance, including the PPP and payment relief through deferral and waived fees.  The Bank continues to endeavor to provide a fast and flexible response to the quickly changing circumstances and is confident it will navigate successfully through these trying times. 

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 20 branches in New Jersey, including four 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, 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; 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, 2019 under the heading "Risk Factors," as modified in the Bank's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 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.

Contact George Rapp
609.454.0718
[e-mail]

The Bank of Princeton
Summary Statements of Financial Condition Data
(unaudited)
(dollars in thousands, except per share data)
								Dec 31, 2020 vs Dec 31, 2019		Dec 31, 2020 vs Dec 31, 2019
		Dec 31, 2020		Dec 31, 2019				$ Change		% Change
ASSETS
Cash and cash equivalents		$           77,429		$            72,598				$                  4,831		6.7%
Securities available for sale taxable		25,112		55,951				(30,839)		-55.1%
Securities available for sale tax exempt		50,516		56,361				(5,845)		-10.4%
Securities held to maturity		215		222				(7)		-3.2%
Loans receivable, net of deferred fees		1,363,486		1,186,570				176,916		14.9%
Allowance for loan losses		(16,027)		(12,557)				(3,470)		27.6%
Other assets		102,107		95,749				6,358		6.6%
TOTAL ASSETS		$       1,602,838		$        1,454,894				$              147,944		10.2%
LIABILITIES
Non interest checking		$         215,381		$           141,338				$                74,043		52.4%
Interest checking		288,769		212,552				76,217		35.9%
Savings		178,932		154,756				24,176		15.6%
Money market		305,290		294,940				10,350		3.5%
Time deposits over $250,000		67,924		121,122				(53,198)		-43.9%
Other time deposits		310,970		313,182				(2,212)		-0.7%
Total Deposits		1,367,266		1,237,890				129,376		10.5%
Borrowings		-		-				-		0.0%
Other liabilities		26,754		21,079				5,675		26.9%
TOTAL LIABILITIES		1,394,020		1,258,969				135,051		10.7%
STOCKHOLDERS' EQUITY
Common stock		33,949		33,807				142		0.4%
Paid-in capital		79,708		79,215				493		0.6%
Retained earnings		93,370		82,273				11,097		13.5%
Accumulated other comprehensive income		1,791		630				1,161		184.3%
TOTAL STOCKHOLDERS' EQUITY		208,818		195,925				12,893		6.6%
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY		$       1,602,838		$        1,454,894				$              147,944		10.2%
Book value per common share		$            30.75		$              28.98				$                   1.77		6.1%
Tangible book value per common share1		$            29.00		$              27.11				$                   1.89		7.0%
1Refer to non-gaap disclosure for explanation (see definition on the last page of this document).

 

The Bank of Princeton
Loan/Deposit Tables
(unaudited)
Loan receivable, net at December 31, 2020 and December 31, 2019 were comprised of the following:
		December 31,		December 31,
		2020		2019
		(Dollars in thousands)
Commercial real estate		$        812,043		$        853,876
Commercial and industrial		40,597		43,504
Construction		263,032		189,789
Residential first-lien mortgages		66,857		89,067
Home equity / consumer		9,929		13,753
PPP (SBA loans)		175,878		-
Total loans		1,368,336		1,189,989
Deferred fees and costs		(4,850)		(3,419)
Allowance for loan losses		(16,027)		(12,557)
Loans, net		$     1,347,459		$     1,174,013
The components of deposits at December 31, 2020 and December 31, 2019 were as follows:
		December 31,		December 31,
		2020		2019
		(Dollars in thousands)
Demand, non-interest-bearing checking		$        215,381		$        141,338
Demand, interest-bearing		288,769		212,552
Savings		178,932		154,756
Money Markets		305,290		294,940
Time deposits		378,894		434,304
Total Deposits		$     1,367,266		$     1,237,890

 

The Bank of Princeton
Consolidated Statements of Operations
(unaudited)
			Three Months Ended December 31,
			2020		2019		$ Change		% Change
			(Dollars in thousands, except per share data)
Interest and Dividend Income
	Loans and fees		$ 15,379		$   14,263		$       1,116		7.8%
	Available-for-Sale debt securities:
		Taxable	103		315		(212)		-67.3%
		Tax-exempt	321		358		(37)		-10.3%
	Held-to-Maturity debt securities		2		3		(1)		-33.3%
	Other interest and dividend income		48		254		(206)		-81.1%
		Total Interest and Dividends	15,853		15,193		660		4.3%
	Interest expense
		Deposits	2,287		4,762		(2,475)		-52.0%
		Borrowings	-		19		(19)		-100.0%
		Total Interest Expense	2,287		4,781		(2,494)		-52.2%
		Net Interest Income	13,566		10,412		3,154		30.3%
Provision for Loan Losses			1,650		125		1,525		1220.0%
Net Interest Income after Provision for Loan Losses			11,916		10,287		1,629		15.8%
Non-Interest income
	Gain on sale of securities available for sale, net		17		27		0		0.0%
	Income from bank-owned life insurance		281		299		(18)		-6.0%
	Fees and service charges		428		323		105		32.5%
	Loan fees, including prepayment penalties		386		122		264		216.4%
	Other		58		23		35		152.2%
		Total Non-Interest Income	1,170		794		376		47.4%
Non-Interest Expense
	Salaries and employee benefits		3,870		3,643		227		6.2%
	Occupancy and equipment		1,499		1,219		280		23.0%
	Professional fees		613		340		273		80.3%
	Data processing and communications		788		658		130		19.8%
	Federal deposit insurance		181		0		181		N/A
	Advertising and promotion		59		98		(39)		-39.8%
	Office expense		60		152		(92)		-60.5%
	Loss on sale of other real estate owned		-		4		(4)		-100.0%
	Other real estate owned expense		174		193		(19)		-9.8%
	Core deposit intangible		666		568		98		17.3%
	Other
		Total Non-Interest Expense	7,910		6,875		1,035		15.1%
Income before income tax expense			5,176		4,206		970		23.1%
Income tax expense			1,073		817		256		31.3%
Net Income			$  4,103		$    3,389		714		21.1%
Net income per common share - basic			$    0.60		$      0.50		$        0.10		20.0%
Net income per common share - diluted			$    0.60		$      0.49		$        0.11		22.4%
Weighted average shares outstanding - basic			6,784		6,757		27		0.4%
Weighted average shares outstanding - diluted			6,878		6,922		(44)		-0.6%

 

The Bank of Princeton
Consolidated Statements of Operations (Current Quarter vs Prior Quarter)
(unaudited)
			Quarter Ending
			Dec 31,		Sep 30,
			2020		2020		$ Change		% Change
			(Dollars in thousands, except per share data)
Interest and Dividend Income
	Loans and fees		$    15,379		$ 14,977		$        402		2.7%
	Available-for-Sale debt securities:
		Taxable	103		135		(32)		-23.7%
		Tax-exempt	321		339		(18)		-5.3%
	Held-to-Maturity debt securities		2		3		(1)		-33.3%
	Other interest and dividend income		48		32		16		50.0%
		Total Interest and Dividends	15,853		15,486		367		2.4%
	Interest expense
		Deposits	2,287		2,709		(422)		-15.6%
		Borrowings	-		-		0		0.0%
		Total Interest Expense	2,287		2,709		(422)		-15.6%
		Net Interest Income	13,566		12,777		789		6.2%
Provision for Loan Losses			1,650		1,925		(275)		-14.3%
Net Interest Income after Provision for Loan Losses			11,916		10,852		1,064		9.8%
Non-Interest income
	Gain on sale of securities available for sale, net		17		48		(31)		-64.6%
	Income from bank-owned life insurance		281		284		(3)		-1.1%
	Fees and service charges		428		424		4		0.9%
	Loan fees, including prepayment penalties		386		463		(77)		-16.6%
	Other		58		56		2		3.6%
		Total Non-Interest Income	1,170		1,275		(105)		-8.2%
Non-Interest Expense
	Salaries and employee benefits		3,870		3,998		(128)		-3.2%
	Occupancy and equipment		1,499		1,423		76		5.3%
	Professional fees		613		512		101		19.7%
	Data processing and communications		788		745		43		5.8%
	Federal deposit insurance		181		112		69		61.6%
	Advertising and promotion		59		82		(23)		-28.0%
	Office expense		60		81		(21)		-25.9%
	Core deposit intangible		174		173		1		0.6%
	Other		666		468		198		42.3%
		Total Non-Interest Expense	7,910		7,594		316		4.2%
Income before income tax expense			5,176		4,533		643		14.2%
Income tax expense			1,073		988		85		8.6%
Net Income			$     4,103		$  3,545		$        558		15.7%
Net income per common share - basic			$       0.60		$    0.52		$       0.08		15.4%
Net income per common share - diluted			$       0.60		$    0.52		$       0.08		15.4%
Weighted average shares outstanding - basic			6,784		6,775		9		0.1%
Weighted average shares outstanding - diluted			6,878		6,835		43		0.6%

 

The Bank of Princeton
Consolidated Statements of Operations
(unaudited)
			Twelve Months Ended December 31,
			2020		2019		$ Change		% Change
			(Dollars in thousands, except for per share data)
Interest and Dividend Income
	Loans and fees		$ 59,301		$  56,251		$       3,050		5.4%
	Available-for-Sale debt securities:
		Taxable	719		1,126		(407)		-36.1%
		Tax-exempt	1,378		1,337		41		3.1%
	Held-to-Maturity debt securities		11		12		(1)		-8.3%
	Other interest and dividend income		267		991		(724)		-73.1%
		Total Interest and Dividends	61,676		59,717		1,959		3.3%
	Interest expense
		Deposits	12,817		17,784		(4,967)		-27.9%
		Borrowings	9		482		(473)		-98.1%
		Total Interest Expense	12,826		18,266		(5,440)		-29.8%
		Net Interest Income	48,850		41,451		7,399		17.8%
Provision for Loan Losses			5,225		4,800		425		8.9%
Net Interest Income after Provision for Loan Losses			43,625		36,651		6,974		19.0%
Non-Interest income
	Gain on sale of securities available for sale, net		571		31		540		1741.9%
	Income from bank-owned life insurance		1,152		1,230		(78)		-6.3%
	Fees and service charges		1,493		1,062		431		40.6%
	Loan fees, including prepayment penalties		1,370		979		391		39.9%
	Other		220		90		130		144.4%
		Total Non-Interest Income	4,806		3,392		1,414		41.7%
Non-Interest Expense
	Salaries and employee benefits		16,451		15,274		1,177		7.7%
	Occupancy and equipment		5,412		4,260		1,152		27.0%
	Professional fees		2,102		1,772		330		18.6%
	Data processing and communications		3,085		2,407		678		28.2%
	Federal deposit insurance		497		81		416		513.6%
	Advertising and promotion		301		386		(85)		-22.0%
	Office expense		276		433		(157)		-36.3%
	Other real estate owned expense		-		10		(10)		-100.0%
	Loss on sale of other real estate owned		-		7		(7)		-100.0%
	Acquisition Expense		-		627		(627)		-100.0%
	Core deposit intangible		727		482		245		50.8%
	Other		2,290		2,000		290		14.5%
		Total Non-Interest Expense	31,141		27,739		3,402		12.3%
Income before income tax expense			17,290		12,304		4,986		40.5%
Income tax expense			3,484		2,162		1,322		61.1%
Net Income			$ 13,806		$  10,142		$       3,664		36.1%
Net income per common share - basic			$    2.04		$     1.51		$        0.53		35.1%
Net income per common share - diluted			$    2.01		$     1.47		$        0.54		36.7%
Weighted average shares outstanding - basic			6,774		6,730		44		0.7%
Weighted average shares outstanding - diluted			6,873		6,896		(23)		-0.3%

 

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(unaudited)
	For the Three Months Ended
	Dec 31,
	2020				2019
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,351,400		4.53%		$    1,159,919		4.88%		$      191,481		-0.35%
Securities
Taxable AFS	26,145		1.57%		54,811		2.30%		(28,666)		-0.73%
Tax exempt AFS	51,707		2.48%		55,388		2.59%		(3,681)		-0.11%
Held-to-maturity	216		5.26%		223		5.26%		(7)		0.00%
Securities	78,068		2.19%		110,422		2.45%		(32,354)		-0.26%
Other interest earning assets
Interest-bearing bank accounts	54,560		0.23%		59,753		1.54%		(5,193)		-1.31%
Equities	1,377		4.74%		1,416		5.90%		(39)		-1.16%
Other interest earning assets	55,937		0.34%		61,169		1.64%		(5,232)		-1.30%
Total interest-earning assets	1,485,405		4.25%		1,331,510		4.53%		153,895		-0.28%
Total non earning assets	92,007				95,094
Total Assets	$    1,577,412				$    1,426,604
Interest-bearing liabilities
Checking	$      242,076		0.31%		$      216,489		1.03%		$        25,587		-0.72%
Savings	177,822		0.29%		154,934		1.28%		22,888		-0.99%
Money Market	303,158		0.35%		265,015		1.67%		38,143		-1.32%
Certificate of Deposit	391,985		1.73%		425,626		2.41%		(33,641)		-0.68%
Total interest-bearing deposits	1,115,041		0.82%		1,062,064		1.78%		52,977		-0.96%
Non interest bearing deposits	228,410				144,538
Total  deposits	1,343,451		0.68%		1,206,602		1.57%		136,849		-0.89%
Borrowings	261		0.38%		3,795		2.01%		(3,534)		-1.63%
Total interest-bearing liabilities
(excluding non interest deposits)	1,115,302		0.82%		1,065,859		1.78%		49,443		-0.96%
Noninterest-bearing deposits	228,410				144,538
Total Cost of Funds	1,343,712		0.68%		1,210,397		1.57%		133,315		-0.89%
Accrued expenses and other liabilities	26,156				21,861
Stockholders' equity	207,544				194,346
Total liabilities and stockholders' equity	$    1,577,412				$    1,426,604
Net interest spread			3.43%				2.75%
Net interest margin			3.63%				3.10%
Net interest margin (FTE)*			3.69%				3.21%
*Includes federal and state tax effect of tax exempt
securities and loans

 

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(unaudited)
	For the Quarter Ended
	Dec 2020				Sep 2020
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,351,400		4.53%		$       1,334,993		4.46%		$       16,407		0.07%
Securities
Taxable AFS	26,145		1.57%		37,381		1.45%		(11,236)		0.12%
Tax exempt AFS	51,707		2.48%		54,574		2.48%		(2,867)		0.00%
Held-to-maturity	216		5.26%		218		5.26%		(2)		0.00%
Securities	78,068		2.19%		92,173		2.07%		(14,105)		0.12%
Other interest earning assets
Interest-bearing bank accounts	54,560		0.23%		45,412		0.12%		9,148		0.11%
Equities	1,377		4.74%		1,369		5.23%		8		-0.49%
Other interest earning assets	55,937		0.34%		46,781		0.27%		9,156		0.07%
Total interest-earning assets	1,485,405		4.25%		1,473,947		4.18%		11,458		0.07%
Total non earning assets	92,007				99,680
Total Assets	$    1,577,412				$       1,573,627
Interest-bearing liabilities
Checking	$      242,076		0.31%		$         220,146		0.48%		$       21,930		-0.17%
Savings	177,822		0.29%		178,271		0.37%		(449)		-0.08%
Money Market	303,158		0.35%		284,263		0.47%		18,895		-0.12%
Certificate of Deposit	391,985		1.73%		421,490		1.84%		(29,505)		-0.11%
Total interest-bearing deposits	1,115,041		0.82%		1,104,170		0.98%		10,871		-0.16%
Non interest bearing deposits	228,410				238,935
Total  deposits	1,343,451		0.68%		1,343,105		0.80%		346		-0.12%
Borrowings	261		0.38%		87		0.35%		174		0.03%
Total interest-bearing liabilities	1,115,302		0.82%		1,104,257		0.98%		11,045		-0.16%
(excluding non interest deposits)
Noninterest-bearing deposits	228,410				238,935
Total Cost of Funds	1,343,712		0.68%		1,343,192		0.80%		520		-0.12%
Accrued expenses and other liabilities	26,156				25,990
Stockholders' equity	207,544				204,445
Total liabilities and stockholders' equity	$    1,577,412				$       1,573,627
Net interest spread			3.43%				3.20%
Net interest margin			3.63%				3.45%
Net interest margin (FTE)*			3.69%				3.53%
*Includes federal and state tax effect of tax exempt
securities and loans

 

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(unaudited)
	For the Twelve Months Ended
	Dec 31,
	2020				2019
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,291,534		4.59%		$    1,124,865		5.00%		$        166,669		-0.41%
Securities
Taxable AFS	38,696		1.86%		47,435		2.37%		(8,739)		-0.51%
Tax exempt AFS	54,787		2.52%		50,218		2.66%		4,569		-0.14%
Held-to-maturity	219		5.26%		225		5.20%		(6)		0.06%
Securities	93,702		2.25%		97,878		2.53%		(4,176)		-0.28%
Other interest earning assets
Interest-bearing bank accounts	43,658		0.45%		41,665		2.08%		1,993		-1.63%
Equities	1,394		5.06%		2,028		6.16%		(634)		-1.10%
Other interest earning assets	45,052		0.59%		43,693		2.27%		1,359		-1.68%
Total interest-earning assets	1,430,288		4.31%		1,266,436		4.72%		163,852		-0.41%
Total non earning assets	100,552				84,636
Total Assets	$    1,530,840				$    1,351,072
Interest-bearing liabilities
Checking	$      224,678		0.63%		$      205,828		1.15%		$         18,850		-0.52%
Savings	171,119		0.58%		132,027		1.30%		39,092		-0.72%
Money Market	281,421		0.71%		254,151		1.67%		27,270		-0.96%
Certificate of Deposit	410,483		2.05%		406,908		2.32%		3,575		-0.27%
Total interest-bearing deposits	1,087,701		1.18%		998,914		1.78%		88,787		-0.60%
Non interest bearing deposits	214				123,821
Total  deposits	1,087,915		0.98%		1,122,735		1.58%		(34,820)		-0.60%
Borrowings	1,345		0.67%		18,326		2.63%		(16,981)		-1.96%
Total interest-bearing liabilities
(excluding non interest deposits)	1,089,046		1.18%		1,017,240		1.80%		71,806		-0.62%
Noninterest-bearing deposits	214,208				123,821
Total Cost of Funds	1,303,254		0.98%		1,141,061		1.60%		162,193		-0.62%
Accrued expenses and other liabilities	25,031				19,900
Stockholders' equity	202,555				190,111
Total liabilities and stockholders' equity	$    1,530,840				$    1,351,072
Net interest spread			3.13%				2.92%
Net interest margin			3.42%				3.27%
Net interest margin (FTE)*			3.49%				3.39%
*Includes federal and state tax effect of tax exempt
securities and loans

 

The Bank of Princeton
Quarterly Financial Highlights
(unaudited)
	2020		2020		2020		2020		2019
	Dec		Sep		Jun		Mar		Dec
Return on average assets	1.03%		0.90%		0.82%		0.84%		0.94%
Return on average equity	7.86%		6.90%		6.27%		6.17%		6.92%
Return on average tangible equity *	8.35%		7.50%		6.68%		6.59%		7.40%
Net interest margin	3.63%		3.45%		3.43%		3.13%		3.10%
Net interest margin (FTE)**	3.69%		3.53%		3.49%		3.20%		3.21%
Efficiency ratio - Non-GAAP ***	52.55%		52.91%		61.10%		64.33%		59.63%
Common Stock Data
Market value at period end	23.41		18.17		20.19		23.25		31.49
Market range:
High	26.44		20.45		23.91		32.25		32.12
Low	18.12		17.40		17.51		19.09		27.34
Book value per common share at period end	30.75		30.26		29.85		29.39		28.98
Tangible book value per common share at period end ****	29.00		28.48		28.04		27.56		27.11
CAPITAL RATIOS
Total Capital (to risk-weighted assets)	16.03%		16.41%		16.01%		15.32%		15.11%
Tier 1 Capital (to risk-weighted assets)	14.81%		15.20%		14.95%		14.36%		14.13%
Tier 1 Capital (to average assets)	12.48%		12.27%		12.45%		12.91%		12.89%
Period-end equity to assets	13.03%		13.24%		12.69%		13.97%		13.47%
Period-end tangible equity to tangible assets	12.38%		12.56%		12.02%		13.21%		12.71%
CREDIT QUALITY DATA AT PERIOD END
(Dollars in Thousands)
Net charge-offs and  (recoveries)	$870		($6)		$6		$884		$112
Annualized net charge-offs (recoveries) to average loans	0.256%		-0.001%		0.002%		0.297%		0.038%
Total nonperforming assets	1,676		2,383		2,387		2,596		2,442
Accruing troubled debt restructurings (TDRs)	8,573		8,888		9,471		9,247		9,293
Total nonperforming assets and accruing TDRs	$   10,249		$   11,271		$   11,858		$   11,843		$   11,735
Allowance for credit losses as a percent of:
Period-end loans	1.18%		1.14%		0.99%		1.03%		1.06%
Nonaccrual loans	956.26%		639.82%		557.90%		474.65%		514.21%
Nonperforming assets	956.26%		639.82%		557.90%		474.65%		514.21%
As a percent of total loans:
Nonaccrual loans	0.12%		0.18%		0.18%		0.22%		0.21%
Accruing TDRs	0.63%		0.66%		0.71%		0.78%		0.78%
Nonaccrual loans and accruing TDRs	0.75%		0.84%		0.88%		0.99%		0.99%
* Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.
**Includes the effect of tax exempt securities and loans
***The efficiency ratio in a non-GAAP measure that represents the ratio of non-interest expense divided by the net-interest income
and non-interest income.
**** Tangible book value per common share is a non-GAAP measure that represents book value per common share which
excludes goodwill and core deposit intangible.

 

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SOURCE The Bank of Princeton