New Jersey

The Bank of Princeton Announces Fourth Quarter and Year-end 2021 Results

PRINCETON, N.J., Jan. 27, 2022 /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, 2021.  The Bank reported net income of $6.2 million, or $0.92 per diluted common share, for the fourth quarter of 2021, compared to net income of $5.9 million, or $0.88 per diluted common share, for the third quarter of 2021, and net income of $4.1 million, or $0.60 per diluted common share, for the fourth quarter of 2020. The increase in net income, when compared to the three months ended September 30, 2021, was primarily due to a reduction of $900 thousand in the provision for loan loss, and a $149 thousand increase in non-interest income, partially offset by $414 thousand increase in non-interest expense and by a $268 thousand increase in income tax expense.  The increase in net income, when comparing it to the three months ended December 31, 2020, was primarily due to an increase in net interest income of $2.4 million, a $1.4 million decrease in the provision for loan losses and a $297 thousand increase in non-interest income, partially offset by a $1.1 million increase in non-interest expense and a $948 thousand increase in income tax expenses. 

Highlights for the quarter-ended December 31, 2021 are as follows:

  • The Bank completed its 2021 stock buyback program during the fourth quarter by purchasing an additional 112,597 shares of common stock at a weighted average price of $30.23.
  • Net interest income for the fourth quarter of 2021 increased $2.4 million or 17.9% over the same period in 2020.
  • The Bank decreased its cost of funds on deposits by 34 basis points in the fourth quarter of 2021 from the same period in 2020.
  • The Bank's efficiency ratio decreased to 50.4% for the fourth quarter of 2021 compared to 52.6% for the fourth quarter of 2020.
  • The ratio of nonperforming loans to total loans continues to be low at 0.09% as of December 31, 2021 compared to 0.12% at December 31, 2020 and compared to 0.16% at September 30, 2021.

President/CEO Edward Dietzler stated that, "The Bank finished up 2021 with a very strong performance overall, including a 63% improvement over last year's net income, along with strong loan growth after backing out the reduction in the Payroll Protection Program loans, and deposit growth."

Balance Sheet Review

Total assets were $1.69 billion at December 31, 2021, an increase of $83.3 million, or 5.2% when compared to $1.60 billion at the end of 2020. The primary reason for the increase in total assets was an increase in cash and cash equivalents of approximately $81.3 million, and a $25.5 million increase in available-for-sale securities, partially offset by a decrease of $28.9 million in net loans.  The decreases in net loans primarily consisted of a $96.1 million decrease in Payroll Protection Program ("PPP") loans due to loan payoffs and the federal government's termination of the program, a decrease of $41.0 million in commercial real estate loans and a $20.5 million decrease in residential loans and home equity/consumer loans, partially offset by an increase of $140.6 million in construction loans during the twelve month period covered.

Total deposits at December 31, 2021 increased by $78.9 million, or 5.8%, when compared to December 31, 2020, primarily due to loan proceeds maintained in non-interest demand accounts from customers who received PPP loans, and stimulus payments to individuals under the American Rescue Plan Act, as well as growth from new branches added during the third quarter of 2020.  When comparing deposit products between the two periods, non-interest checking increased $70.9 million, savings increased $46.6 million and money markets increased $67.8 million. These increases were partially offset by a decrease in interest-bearing demand accounts of $29.7 million, primarily consisting of municipal deposits, and a decrease of $76.7 million in certificates of deposit. In addition, the Bank had no outstanding borrowings at December 31, 2021 and December 31, 2020.  

Total stockholders' equity at December 31, 2021 increased $7.8 million or 3.7% when compared to the end of 2020. This increase was primarily due to the $22.5 million of earnings recorded during the twelve months of 2021, offset by the $10.0 million of common stock repurchased, the $4.4 million of cash dividends paid during the period, and the $952 thousand decrease in the accumulated other comprehensive income on the available-for-sale investment portfolio related to an increase in the treasury interest rate yield curve.  The Bank completed its 2021 stock buyback program during the fourth quarter and in total repurchased 339,788 shares of common stock at a total cost of $10.0 million and a weighted average cost of $29.53 per share.  The ratio of equity to total assets at December 31, 2021 and at December 31, 2020, was $12.8% and 13.0%, respectively.  

Asset Quality

At December 31, 2021, non-performing assets were $1.4 million, a decrease of $262 thousand, or 15.6%, when compared to the amount at December 31, 2020.  This decrease at December 31, 2021 from December 31, 2020 was primarily due to the removal of three loans totaling $1.2 million offset by one new loan totaling $766 thousand that was classified as non-performing, along with the addition of an other real estate owned property valued at $226 thousand. Troubled debt restructurings ("TDR") totaled $6.9 million at December 31, 2021 and $8.6 million at December 31, 2020. Three TDR loans totaling $6.1 million are performing to their agreed upon terms and the remaining one loan remained in non-accrual status as of December 31, 2021.  

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 has seen a favorable trend as a vast majority of customers have returned to their regular payment schedule. As of December 31, 2021, the Bank had remaining 1 loan that was modified totaling $9.0 million, compared to 14 loans (consisting of nine borrowers) that were modified totaling $45.0 million at December 31, 2020, and 240 loans totaling $263.5 million originally approved for such deferment and reported as of June 30, 2020. Under current accounting guidance, these loans are not required to be classified as TDRs.

Review of Quarterly Financial Results

Net-interest income was $16.0 million for the fourth quarter of 2021, compared to $16.1 million for the third quarter of 2021 and to $13.6 million for the fourth quarter of 2020.  The decrease from the previous quarter was a result of a decrease in interest income, partially offset by a $134 thousand, or 8.7%, decrease in interest paid on liabilities, partially resulting from a 5 basis points reduction in the rate on interest bearing deposits.  Interest income for the fourth quarter of 2021 included an approximately $1.4 million in accelerated accretion attributable to deferred fees received from PPP loans, due to the U.S. government forgiving the debt and paying off the loans. The net interest margin for the fourth quarter of 2021 was 3.96%, decreasing 12 basis points when compared to the third quarter of 2021. This decrease was primarily due to a 16 basis points reduction in the yield on the earning assets, partially offset by a reduction of 5 basis points in total interest cost of funds.  When comparing the three month periods ended December 31, 2021 and 2020, net interest income increased $2.4 million, which was primarily due to an increase in interest income of $1.6 million caused by a $118.9 million increase in interest earning assets aided by a reduction in interest expense of $876 thousand.  The reduction in interest expense was attributable to a decline of 34 basis points in the rate paid on its interest-bearing liabilities. For the twelve month period ended December 31, 2021, net interest income was $62.6 million, an increase of $13.8 million, or 28.1%, over 2020.  This increase was due a $7.6 million increase in interest earned on earning assets and a $6.2 million decline in interest expense. For the twelve month period ended December 31, 2021, the average outstanding balance of earning assets increased by $127.0 million and average outstanding interest-bearing liabilities increased $57.1 million.  The total rate on average interest-bearing liabilities, which includes non-interest-bearing deposits, for the three month periods ended December 31, 2021 and 2020 was 0.38% and 0.68%, respectively.  For the twelve month periods ended December 31, 2021 and 2020 the total rate on average interest-bearing liabilities was 0.47% and 0.98%, respectively.

The provision for credit losses was $300 thousand for the three month period ended December 31, 2021.  The comparable amounts were $1.2 million and $1.7 million for the three months ended September 30, 2021 and December 31, 2020, respectively. The primary reasons for the provision for credit losses for the fourth and third quarters of 2021 were charge-offs in the amounts of $245 thousand and $821 thousand, respectively.  The primary reason for the provision in the fourth quarter of 2020 was due to charge-offs recorded in the period.  As of December 31, 2021, 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 coverage rate of allowance for credit losses to period end loans was 1.24% (excluding PPP loans, the coverage ratio was 1.32%) at December 31, 2021, compared to 1.18% (excluding PPP loans, the coverage ratio was 1.35%) at December 31, 2020, which reflects management's assessment of the credit quality in the loan portfolio.

At December 31, 2021, the Bank's concentration in the loan portfolio associated with the segments management believes could be affected by the pandemic: restaurants and hotels totaled $23.9 million and $45.9 million, respectively.  

Total non-interest income for the fourth quarter of 2021 increased $297 thousand, or 25.4%, to $1.5 million when compared to the same period in 2020. This increase was primarily due to a $371 thousand increase in loan fees and a $45 thousand increase in deposit fees earned. Total non-interest income when comparing fourth quarter of 2021 to third quarter of 2021 increased $149 thousand, primarily due to $121 thousand increase in loans fees and a $20 thousand increase in deposit fees earned.  For the twelve month period ended December 31, 2021, non-interest income decreased $140 thousand, or 2.9%, from the 2020 twelve month period, primarily due to a $564 thousand gain on the sale of investment securities available-for sale recorded in the 2020 period.

Total non-interest expense for the fourth quarter of 2021 increased $1.1 million, or 13.3%, when compared to the same period in 2020.  This increase was primarily due to an increase in additional operating cost associated with the Bank's branch expansion strategy.  When comparing the quarter ended December 31, 2021 to the immediately prior quarter, non-interest expense increased $414 thousand, or 4.8%, primarily due to increases in salaries and benefits expense, occupancy and equipment expenses, and OREO expenses.  For the twelve month period ended December 31, 2021, non-interest expense was $34.5 million, compared to $31.1 million for the same period in 2020. This increase was primarily due to an increase in additional operating costs associated with the Bank's branch expansion strategy.

For the three month period ended December 31, 2021, the Bank recorded an income tax expense of $2.0 million, resulting in an effective tax rate of 24.6%, 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, and compared to an income tax expense of $1.1 million resulting in an effective tax rate of 20.7% for the three month period ended December 31, 2020. 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 the fourth and third quarters 2021 were impacted by the level of tax-free income against the level of taxable earnings. For the twelve month periods ended December 31, 2021 and 2020, the income tax expense was $6.7 million (effective tax rate of 23.0%) and $3.5 million (effective tax rate of 20.2%), respectively.

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 possible payment relief through deferral and waived fees.  The Bank continues to endeavor to provide a fast and flexible response to the quickly changing circumstances.

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 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, 2020 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.

 

Contact George Rapp
609.454.0718
[email protected]

 

The Bank of Princeton

Summary Statements of Financial Condition Data

(unaudited)

(dollars in thousands, except per share data)





















Dec 31, 2021 

vs 

Dec 31, 2020


Dec 31, 2021  

vs

Dec 31, 2020




Dec 31, 2021


Dec 31, 2020




$ Change


% Change














ASSETS


Cash and cash equivalents


$         158,716


$            77,429




$            81,287


105.0%


Securities available for sale taxable


51,690


25,112




26,578


105.8%


Securities available for sale tax exempt


49,468


50,516




(1,048)


-2.1%


Securities held to maturity


208


215




(7)


-3.3%


Loans receivable, net of deferred fees


1,335,163


1,363,486




(28,323)


-2.1%


Allowance for loan losses


(16,620)


(16,027)




(593)


3.7%


Goodwill


8,853


8,853




-


0.0%


Core deposit intangible


2,393


3,036




(643)


-21.2%


Other assets


97,811


90,218




7,593


8.4%


TOTAL ASSETS


$       1,687,682


$        1,602,838




$            84,844


5.3%






-




















LIABILITIES












Non interest checking


$         286,247


$           215,381




$            70,866


32.9%


Interest checking


259,022


288,769




(29,747)


-10.3%


Savings


225,579


178,932




46,647


26.1%


Money market


373,075


305,290




67,785


22.2%


Time deposits over $250,000 


33,741


67,924




(34,183)


-50.3%


Other time deposits


268,479


310,970




(42,491)


-13.7%


Total Deposits


1,446,143


1,367,266




78,877


5.8%


Borrowings


-


-




-


0.0%


Other liabilities


24,961


26,754




(1,793)


-6.7%


    TOTAL LIABILITIES


1,471,104


1,394,020




77,084


5.5%














STOCKHOLDERS' EQUITY












 Common stock 


34,098


33,949




149


0.4%


 Paid-in capital 


80,205


79,708




497


0.6%


 Treasury Stock 


(10,032)


-




(10,032)


0.0%


 Retained earnings 


111,468


93,370




18,098


19.4%


 Accumulated other comprehensive income 


839


1,791




(952)


-53.2%


     TOTAL STOCKHOLDERS' EQUITY 


216,578


208,818




7,760


3.7%














TOTAL LIABILITIES 












     AND STOCKHOLDERS' EQUITY


$       1,687,682


$        1,602,838




$            84,844


5.3%














Book value per common share


$            33.42


$              30.75




$                2.67


8.7%


Tangible book value per common share1


$            31.69


$              29.00




$                2.69


9.3%














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, 2021 and December 31, 2020 were comprised of the following:




















December 31,


December 31,






2021


2020






(Dollars in thousands)




Commercial real estate


$        771,028


$        812,043




Commercial and industrial


29,677


40,597




Construction


403,680


263,032




Residential first-lien mortgages


48,638


66,857




Home equity / consumer


7,685


9,929




PPP (SBA loans) Phase I


6,641


175,878




PPP (SBA loans) Phase II


73,099


-




     Total loans


1,340,448


1,368,336




Deferred fees and costs, net


(5,285)


(4,850)




Allowance for loan losses


(16,620)


(16,027)




     Loans, net


$     1,318,543


$     1,347,459




















The components of deposits at December 31, 2021 and December 31, 2020 were as follows:













December 31,


December 31,






2021


2020






(Dollars in thousands)




Demand, non-interest-bearing checking


$        286,247


$        215,381




Demand, interest-bearing 


259,022


288,769




Savings


225,579


178,932




Money Markets


373,075


305,290




Time deposits


302,220


378,894




     Total Deposits


$     1,446,143


$     1,367,266




 

The Bank of Princeton








Consolidated Statements of Operations








(unaudited)











Three Months Ended December  31,







2021


2020


$ Change


% Change




(Dollars and shares in thousands, except per share data)

Interest and Dividend Income



















Loans and fees

$ 16,861


$   15,379


$       1,482


9.6%


Available-for-Sale debt securities:










Taxable

194


103


91


88.3%



Tax-exempt

295


321


(26)


-8.1%


Held-to-Maturity debt securities

3


2


1


50.0%


Other interest and dividend income

58


48


10


20.8%













Total Interest and Dividends

17,411


15,853


1,558


9.8%












Interest expense




















Deposits

1,411


2,287


(876)


-38.3%



Borrowings

-


-


-


N/A













Total Interest Expense

1,411


2,287


(876)


-38.3%













Net Interest Income

16,000


13,566


2,434


17.9%











Provision for Loan Losses

300


1,650


(1,350)


-81.8%











Net Interest Income after Provision for Loan Losses

15,700


11,916


3,784


31.8%











Non-Interest income



















Gain on sale of securities available for sale,net

-


17


(17)


-100.0%


Income from bank-owned life insurance

290


281


9


3.2%


Fees and service charges

473


428


45


10.5%


Loan fees, including prepayment penalities

757


386


371


96.1%


Other 

(53)


58


(111)


-191.4%













Total Non-Interest Income

1,467


1,170


297


25.4%











Non-Interest Expense



















Salaries and employee benefits

4,667


3,870


797


20.6%


Occupancy and equipment

1,521


1,499


22


1.5%


Professional fees

511


613


(102)


-16.6%


Data processing and communications

898


788


110


14.0%


Federal deposit insurance

206


181


25


13.8%


Advertising and promotion

42


59


(17)


-28.8%


Office expense

66


60


6


10.0%


Other real estate owned expense

151


-


151


N/A


Core deposit intangible

154


174


(20)


-11.5%


Other 

747


666


81


12.2%













Total Non-Interest Expense

8,963


7,910


1,053


13.3%











Income before income tax expense

8,204


5,176


3,028


58.5%











Income tax expense

2,021


1,073


948


88.4%











Net Income

$   6,183


$    4,103


$       2,080


50.7%











Net income per common share - basic

$    0.94


$      0.60


$        0.34


56.7%

Net income per common share - diluted

$    0.92


$      0.60


$        0.32


53.3%











Weighted average shares outstanding - basic

6,538


6,784


(246)


-3.6%

Weighted average shares outstanding - diluted

6,694


6,878


(184)


-2.7%











 

The Bank of Princeton








Consolidated Statements of Operations (Current Quarter vs Prior Quarter)





(unaudited)











Three Months Ended




Dec 31,


Sep 30,








2021


2021


$ Change


% Change




(Dollars and shares in thousands, except per share data)

Interest and Dividend Income



















Loans and fees

$    16,861


$ 17,181


$       (320)


-1.9%


Available-for-Sale debt securities:










Taxable

194


133


61


45.9%



Tax-exempt

295


287


8


2.8%


Held-to-Maturity debt securities

3


2


1


50.0%


Other interest and dividend income

58


53


5


9.4%













Total Interest and Dividends

17,411


17,656


(245)


-1.4%












Interest expense




















Deposits

1,411


1,545


(134)


-8.7%



Borrowings

-


-


0


0.0%













Total Interest Expense

1,411


1,545


(134)


-8.7%













Net Interest Income

16,000


16,111


(111)


-0.7%











Provision for Loan Losses

300


1,200


(900)


-75.0%











Net Interest Income after Provision for Loan Losses

15,700


14,911


789


5.3%











Non-Interest income



















Gain on sale of securities available for sale,net

-


-


-


0.0%


Income from bank-owned life insurance

290


276


14


5.1%


Fees and service charges

473


453


20


4.4%


Loan fees, including prepayment penalities

757


636


121


19.0%


Other 

(53)


(47)


(6)


12.8%













Total Non-Interest Income

1,467


1,318


149


11.3%











Non-Interest Expense



















Salaries and employee benefits

4,667


4,342


325


7.5%


Occupancy and equipment

1,521


1,492


29


1.9%


Professional fees

511


580


(69)


-11.9%


Data processing and communications

898


904


(6)


-0.7%


Federal deposit insurance

206


220


(14)


-6.4%


Advertising and promotion

42


59


(17)


-28.8%


Office expense

66


56


10


17.9%


Other real estate owned expense

151


80


71


88.8%


Core deposit intangible

154


155


(1)


-0.6%


Other 

747


661


86


13.0%













Total Non-Interest Expense

8,963


8,549


414


4.8%











Income before income tax expense

8,204


7,680


524


6.8%











Income tax expense

2,021


1,753


268


15.3%











Net Income

$     6,183


$  5,927


$        256


4.3%











Net income per common share - basic

$       0.94


$    0.89


$       0.05


5.6%

Net income per common share - diluted

$       0.92


$    0.88


$       0.04


4.5%











Weighted average shares outstanding - basic

6,538


6,613


(75)


-1.1%

Weighted average shares outstanding - diluted

6,694


6,767


(73)


-1.1%











 

The Bank of Princeton








Consolidated Statements of Operations








(unaudited)



















Tweleve Months Ended Dec 31,




2021


2020


$ Change


% Change




(Dollars and shares in thousands, except for per share data)

Interest and Dividend Income



















Loans and fees

$ 67,348


$  59,301


$       8,047


13.6%


Available-for-Sale debt securities:










Taxable

547


719


(172)


-23.9%



Tax-exempt

1,172


1,378


(206)


-14.9%


Held-to-Maturity debt securities

11


11


0


0.0%


Other interest and dividend income

197


267


(70)


-26.2%













Total Interest and Dividends

69,275


61,676


7,599


12.3%












Interest expense




















Deposits

6,673


12,817


(6,144)


-47.9%



Borrowings

1


9


(8)


-88.9%













Total Interest Expense

6,674


12,826


(6,152)


-48.0%













Net Interest Income

62,601


48,850


13,751


28.1%











Provision for Loan Losses

3,625


5,225


(1,600)


-30.6%











Net Interest Income after Provision for Loan Losses

58,976


43,625


15,351


35.2%











Non-Interest income



















Gain on sale of securities available for sale,net

7


571


(564)


-98.8%


Income from bank-owned life insurance

1,116


1,151


(35)


-3.0%


Fees and service charges

1,764


1,493


271


18.2%


Loan fees, including prepayment penalities

1,757


1,370


387


28.2%


Other 

22


221


(199)


-90.0%













Total Non-Interest Income

4,666


4,806


(140)


-2.9%











Non-Interest Expense



















Salaries and employee benefits

17,483


16,451


1,032


6.3%


Occupancy and equipment

6,055


5,412


643


11.9%


Professional fees

2,431


2,103


328


15.6%


Data processing and communications

3,562


3,085


477


15.5%


Federal deposit insurance

792


497


295


59.4%


Advertising and promotion

214


301


(87)


-28.9%


Office expense

219


276


(57)


-20.7%


Other real estate owned expense

241


-


241


N/A


Core deposit intangible

643


727


(84)


-11.6%


Other 

2,813


2,289


524


22.9%













Total Non-Interest Expense

34,453


31,141


3,312


10.6%











Income before income tax expense

29,189


17,290


11,899


68.8%











Income tax expense

6,703


3,484


3,219


92.4%











Net Income

$ 22,486


$  13,806


$       8,680


62.9%











Net income per common share - basic

$    3.37


$     2.04


$        1.33


65.2%

Net income per common share - diluted

$    3.30


$     2.01


$        1.29


64.2%











Weighted average shares outstanding - basic

6,667


6,774


(107)


-1.6%

Weighted average shares outstanding - diluted

6,814


6,873


(59)


-0.9%











 

The Bank of Princeton













Consolidated Average Statement of Financial Condition












(unaudited)



























For the Three Months Ended







December 31,







2021


2020







Average


Yield/


Average


Yield/







balance


rate


balance


rate


$ Change


% Change



(Dollars in thousands)






Earning assets













  Loans

$    1,347,511


4.96%


$    1,351,400


4.53%


$        (3,889)


0.43%















Securities


























  Taxable AFS

50,124


1.56%


26,145


1.57%


23,979


-0.01%


  Tax exempt AFS

47,562


2.47%


51,707


2.48%


(4,145)


-0.01%


  Held-to-maturity

209


5.27%


216


5.26%


(7)


0.01%















Securities

97,895


2.01%


78,068


2.19%


19,827


-0.18%















Other interest earning assets













  Interest-bearing bank accounts

157,550


0.11%


54,560


0.23%


102,990


-0.12%


  Equities

1,338


3.99%


1,377


4.74%


(39)


-0.75%















Other interest earning assets

158,888


0.15%


55,937


0.34%


102,951


-0.19%















Total interest-earning assets

1,604,294


4.31%


1,485,405


4.25%


118,889


0.06%















Total non earning assets

102,987




92,007





















Total Assets

$    1,707,281




$    1,577,412


































Interest-bearing liabilities













Checking

$      274,944


0.26%


$      242,076


0.31%


$        32,868


-0.05%


Savings

223,590


0.23%


177,822


0.29%


45,768


-0.06%


Money Market

367,493


0.27%


303,158


0.35%


64,335


-0.08%


Certificate of Deposit

312,634


1.09%


391,985


1.73%


(79,351)


-0.64%















    Total interest-bearing deposits

1,178,661


0.48%


1,115,041


0.82%


63,620


-0.34%















Non interest bearing deposits

288,292




228,410





















    Total  deposits

1,466,953


0.38%


1,343,451


0.68%


123,502


-0.30%















Borrowings

-


0.00%


261


0.38%


(261)


-0.38%


    Total interest-bearing liabilities













       (excluding non interest deposits)

1,178,661


0.48%


1,115,302


0.82%


63,359


-0.34%















Noninterest-bearing deposits

288,292




228,410








Total Cost of Funds

1,466,953


0.38%


1,343,712


0.68%


123,241


-0.30%















Accrued expenses and other liabilities

24,056




26,156








Stockholders' equity

216,272




207,544








Total liabilities and stockholders' equity

$    1,707,281




$    1,577,412


































Net interest spread



3.83%




3.43%






Net interest margin



3.96%




3.63%



















Net interest margin (FTE)1



4.02%




3.69%



















  1Includes 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 2021


 Sept 2021






Average


Yield/


Average


Yield/






balance


rate


balance


rate


$ Change


% Change


(Dollars in thousands)




Earning assets












  Loans

$    1,347,511


4.96%


$       1,367,980


4.98%


$      (20,469)


-0.02%













Securities
























  Taxable AFS

50,124


1.56%


33,953


1.51%


16,171


0.05%

  Tax exempt AFS

47,562


2.47%


46,510


2.47%


1,052


0.00%

  Held-to-maturity

209


5.27%


211


5.27%


(2)


0.00%













Securities

97,895


2.01%


80,674


2.07%


17,221


-0.06%













Other interest earning assets












  Interest-bearing bank accounts

157,550


0.11%


116,910


0.13%


40,640


-0.02%

  Equities

1,338


3.99%


1,338


3.93%


0


0.06%













Other interest earning assets

158,888


0.15%


118,248


0.18%


40,640


-0.03%













Total interest-earning assets

1,604,294


4.31%


1,566,902


4.47%


37,392


-0.16%













Total non earning assets

102,987




95,130



















Total Assets

$    1,707,281




$       1,662,032































Interest-bearing liabilities












Checking

$      274,944


0.26%


$         260,813


0.26%


$       14,131


0.00%

Savings

223,590


0.23%


214,406


0.24%


9,184


-0.01%

Money Market

367,493


0.27%


346,330


0.28%


21,163


-0.01%

Certificate of Deposit

312,634


1.09%


329,117


1.21%


(16,483)


-0.12%













    Total interest-bearing deposits

1,178,661


0.48%


1,150,666


0.53%


27,995


-0.05%













Non interest bearing deposits

288,292




272,097



















    Total  deposits

1,466,953


0.38%


1,422,763


0.43%


44,190


-0.05%













Borrowings

-


0.00%


-


0.00%


0


0.00%













    Total interest-bearing liabilities

1,178,661


0.48%


1,150,666


0.53%


27,995


-0.05%

       (excluding non interest deposits)












Noninterest-bearing deposits

288,292




272,097







Total Cost of Funds

1,466,953


0.38%


1,422,763


0.43%


44,190


-0.05%













Accrued expenses and other liabilities

24,056




24,480







Stockholders' equity

216,272




214,789







Total liabilities and stockholders' equity

$    1,707,281




$       1,662,032































Net interest spread



3.83%




3.94%





Net interest margin



3.96%




4.08%

















Net interest margin (FTE)1



4.02%




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)

























For the Tweleve Months Ended






December 31,






2021


2020






(Dollars in thousands)






Average 


Yield/


Average 


Yield/






balance


rate 


balance


rate 


$ Change


% Change

Earning assets












  Loans 

$    1,381,626


4.87%


$    1,291,534


4.59%


$         90,092


0.28%













Securities
























  Taxable AFS 

33,805


1.62%


38,696


1.86%


(4,891)


-0.24%

  Tax exempt AFS

47,294


2.48%


54,787


2.52%


(7,493)


-0.04%

  Held-to-maturity

212


5.27%


219


5.26%


(7)


0.01%













Securities

81,311


2.13%


98,703


2.25%


(17,392)


-0.12%













Other interest earning assets












  Interest-bearing bank accounts

93,031


0.15%


43,658


0.45%


49,373


-0.30%

  Equities

1,366


4.21%


1,394


5.06%


(28)


-0.85%













Other interest earning assets

94,397


0.21%


45,052


0.59%


49,345


-0.38%













Total interest-earning assets

1,557,334


4.45%


1,430,288


4.31%


127,046


0.14%













Total non earning assets

101,479




100,552



















Total Assets

$    1,658,813




$    1,530,840































Interest-bearing liabilities












Checking

$      263,715


0.27%


$      224,678


0.63%


$         39,037


-0.36%

Savings

205,788


0.25%


171,119


0.58%


34,669


-0.33%

Money Market

339,903


0.30%


281,421


0.71%


58,482


-0.41%

Certificate of Deposit

336,488


1.32%


410,483


2.05%


(73,995)


-0.73%













    Total interest-bearing deposits

1,145,894


0.58%


1,087,701


1.18%


58,193


-0.60%













Non interest bearing deposits

273,260




214,208



















    Total  deposits

1,419,154


0.47%


1,301,909


0.98%


117,245


-0.51%













Borrowings

270


0.32%


1,345


0.67%


(1,075)


-0.35%

    Total interest-bearing liabilities 












       (excluding non interest deposits)

1,146,164


0.58%


1,089,046


1.18%


57,118


-0.60%













Noninterest-bearing deposits

273,260




214,208







Total Cost of Funds

1,419,424


0.47%


1,303,254


0.98%


116,170


-0.51%













Accrued expenses and other liabilities

25,470




25,031







Stockholders' equity

213,919




202,555







Total liabilities and stockholders' equity

$    1,658,813




$    1,530,840



















Net interest spread



3.87%




3.13%





Net interest margin



4.02%




3.42%

















Net interest margin (FTE)1



4.12%




3.49%

















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





















 

The Bank of Princeton












Quarterly Financial Highlights












(unaudited)

























2021


2021


2021


2021


2020



(Dollars in thousands, except common stock data)

Dec


Sep


Jun


Mar


Dec















     Return on average assets 

1.44%


1.41%


1.34%


1.21%


1.03%



     Return on average equity 

11.34%


10.95%


10.36%


9.31%


7.86%



     Return on average tangible equity1

11.97%


11.56%


10.95%


9.86%


8.35%



     Net interest margin

3.96%


4.08%


4.06%


3.98%


3.63%



     Net interest margin (FTE)2

4.02%


4.14%


4.12%


4.09%


3.69%



     Efficiency ratio - Non-GAAP3 

50.43%


48.16%


50.87%


51.79%


52.55%















Common Stock Data












     Market value at period end

$      29.33


$     29.87


$     28.67


$    28.62


$     23.41



     Market range:












        High

$      30.89


$     30.67


$     31.31


$    29.67


$     26.44



        Low

$      28.71


$     28.18


$     25.58


$    21.43


$     18.12



     Book value per common share at period end

$      33.42


$     32.66


$     31.96


$    31.24


$     30.75



     Tangible book value per common share at period end4

$      31.69


$     30.93


$     30.22


$    29.52


$     29.00



     Shares of common stock outstanding (in thousands)

6,480


6,588


6,659


6,804


6,761















CAPITAL RATIOS












Total Capital (to risk-weighted assets)

15.10%


15.60%


15.33%


15.73%


16.03%



Tier 1 Capital (to risk-weighted assets)

13.97%


14.43%


14.19%


14.56%


14.81%



Tier 1 Capital (to average assets)

12.06%


12.29%


12.22%


12.45%


12.48%



     Period-end equity to assets

12.84%


12.89%


13.01%


12.62%


13.03%



     Period-end tangible equity to tangible assets 

12.26%


12.23%


12.40%


11.92%


12.38%















CREDIT QUALITY DATA AT PERIOD END












(Dollars in Thousands)












     Net charge-offs and  (recoveries)

$        101


$       821


$     1,000


$     1,100


$       870



     Annualized net charge-offs (recoveries) to average loans

0.030%


0.240%


0.279%


0.319%


0.256%















     Total nonperforming Loans (TDRs not included)

$        422


$     1,043


$     2,381


$     2,498


$     1,676



     Other real estate owned

226


376


446


446


-



     Troubled debt restructurings (TDRs)












           -Performing

6,122


6,187


6,241


8,533


8,573



           -Non-performing

766


1,092


1,332


-


-



     Total nonperforming assets and accruing TDRs 

$      7,536


$     8,698


$   10,400


$   11,477


$   10,249















     Allowance for credit losses as a percent of:












     Period-end loans      

1.24%


1.22%


1.14%


1.12%


1.18%



     Nonaccrual loans 

1398.99%


769.13%


491.03%


781.77%


956.26%



     Nonperforming assets 

1175.39%


653.96%


432.05%


642.19%


956.26%















    As a percent of total loans:












    Nonaccrual loans 

0.09%


0.16%


0.23%


0.14%


0.12%



    Accruing TDRs 

0.46%


0.46%


0.45%


0.59%


0.63%



    Nonaccrual loans and accruing TDRs 

0.55%


0.62%


0.71%


0.77%


0.75%



























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 in a non-GAAP measure that represents the ratio of non-interest expense (less CDI expense) divided by the 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. 
























 

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SOURCE The Bank of Princeton