The Bank of Princeton : Announces Fourth Quarter and Full-Year 2018 Results

PRINCETON, N.J., Jan. 29, 2019 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ: BPRN) today reported unaudited results of operations and financial condition for the quarter and twelve months ended December 31, 2018. The Bank reported net income of $3.8 million, or $0.55 per diluted common share, for the fourth quarter of 2018, compared to net income of $3.7 million, or $0.54 per diluted common share, for the third quarter of 2018, and net income of $1.7 million, or $0.25 per diluted common share, for the fourth quarter of 2017.

For the twelve month period ended December 31, 2018, the Bank reported net income of $14.7 million, or $2.14 per diluted common share, compared to $11.0 million, or $1.90 per diluted common share for the same period in 2017. The diluted earnings per shares calculation in 2018 was impacted by the common stock offering that was completed August 2017.

Highlights for the three and twelve month periods ended December 31, 2018 are as follows:

• Net income for the three month period ended December 31, 2018 increased $2.1 million, or 121.9%, over the same period in 2017.
• Net-interest income for the twelve month period ended December 31, 2018 increased $1.9 million, or 4.8%, over the same period in 2017.
• Total net income for the twelve month period ended December 31, 2018 increased $3.7 million, or 33.5%, when compared to the same period in 2017.
• Net loans increased $111.2 million, to exceed $1.0 billion at December 31, 2018. This reflects an annualized increase of 11.5% year over year.

"The Bank of Princeton fourth quarter results continued to show earnings improvement year over year 2018 earnings reflecting an increase of 33.5% resulting from strong loan growth and continued expense management.  The Bank's capital position provides a source of strength to accomplish future organic growth and explore future inorganic growth opportunities," stated Edward Dietzler, President/CEO.

Chairman Richard Gillespie states, "The Bank continues opportunistic expansion including two new branch locations expected to open during the first half of 2019."

Balance Sheet Review

Total assets were $1.25 billion at December 31, 2018, an increase of $51.0 million, or 4.2%, when compared to $1.20 billion at the end of 2017. The primary reason for the increase in total assets was due to an increase in net loans of approximately $111.2 million, primarily consisting of commercial and residential real estate loans, partially offset by a reduction of $56.4 million in cash and cash equivalents, used to fund loan growth.

Total deposits at December 31, 2018 decreased by $21.4 million, or 2.1%, when compared to December 31, 2017. Since December 31, 2017, we experienced deposit increases of $78.7 million in time deposit, $39.6 million in money markets deposits, which were more than offset by a $131.0 million decrease in interest-bearing demand accounts (primarily related to municipal deposits).  At December 31, 2018, the Bank had borrowings of $55.4 million in short-term advances to fund its loan growth, while having no such borrowings outstanding borrowings at December 31, 2017.  

Total stockholders' equity increased $16.0 million, or 9.5%, when compared to the end of 2017. This increase was primarily due to earnings reported during the first twelve months of 2018 and the exercising of common stock granted through the Bank's Stock Option Plan.  In October 2018, the Bank declared its first cash dividend of approximately $0.03 per share of common stock. Book value per share increased $2.00 during 2018 to $27.69.  The ratio of equity to total assets was 14.7%, 0.7% higher than year-end 2017.

Asset Quality

At December 31, 2018, non-performing assets were $5.7 million, a decrease of $4.3 million, or 42.6%, when compared to $10.0 million at December 31, 2017.  This decrease was primarily the result of three large commercial real estate credits totaling $8.0 million that paid-off, partially offset with addition of one commercial loan totaling $1.9 million and one commercial real estate property loan totaling $1.7 million.  Total troubled debt restructuring ("TDRs") balance totaled $1.3 million at December 31, 2018, a decline of $5.1 million from year-end 2017. All TDRs are performing to their agreed upon terms.

Review of Quarterly Financial Results

Net interest income was $10.3 million for the fourth quarter of 2018, compared to $10.5 million for the third quarter of 2018 and $10.3 million for the fourth quarter of 2017.  The decrease from the previous quarter was a result of an increase in interest income of $58 thousand, or 0.4%, offset by an increase in interest expense of $293 thousand.  The net interest margin for the fourth quarter 2018 was 3.47%, decreasing four basis points, when compared to the third quarter of 2018. This decrease was primarily associated with an increase of 13 basis points paid on cost of funds, partially offset by an increase of six basis points earning on interest earning assets.  When comparing the same three month period ended December 31, 2018 and 2017, net interest income slightly decreased $37 thousand, which was primarily due to the increased yield paid on deposits and overnight borrowings. For the twelve month period ended December 31, 2018, net interest income was $41.0 million, an increase of $1.9 million, or 4.8%, over the same period in 2017, which was primarily due to a higher volume of average earning assets of approximately $136.9 million.  Total rate on interest-bearing liabilities, which includes non-interest-bearing deposits for the three month period ended December 31, 2018 and 2017 was 1.44% and 1.00%, respectively. 

The Bank did not record a provision for credit losses this quarter and recorded $665 thousand for the twelve months ended December 31, 2018, compared to $2.9 million for the three month period and $3.8 million twelve month period in 2017.  When compared to the prior quarter of 2018, the Bank did not record a provision for credit losses in either quarter.  The Bank realized net charge-offs of $195 thousand in this quarter compared to net charge-offs of $42 thousand in the quarter ended September 30, 2018. The ratio of allowance for credit losses to period end loans was 1.10% at December 31, 2018, compared to 1.20% at December 31, 2017 and 1.15% at September 30, 2018, which reflects management's assessment of the credit quality in the loan portfolio.

Total non-interest income for the fourth quarter of 2018 decreased $199 thousand, to $601 thousand, when compared to the same period in 2017. This decrease was primarily due to a decrease in income from loan fees and service charges, primarily due to a lower level of fees generated on loans earned between the two periods.  The decrease in non-interest income from the previous quarter was $47 thousand primarily due to loan fees collected and other miscellaneous income, partially offset by an increase in service charges collected and income from bank-owned life insurance.  For the twelve month period ended December 31, 2018, non-interest income decreased $168 thousand, or 5.9%, primarily due to a lower level of fees generated on loans, partially offset due to an increase on income earned from bank-owned life insurance.

Total non-interest expense for the fourth quarter of 2018 increased $825 thousand, or 15.0%, when compared to the same period in 2017.  This increase was primarily due increases in salaries and employee benefits, professional services, FDIC deposit insurance and advertising expenses.  When comparing December 31, 2018 to the prior linked quarter, non-interest expense decreased $337 thousand, or 5.1%, primarily due to a one-time charge the Bank recorded against an OREO property, partially offset by an increase in salaries and benefits and professional fees expenses.  For the twelve month period ended December 31, 2018, non-operating expense was $25.3 million, compared to $23.3 million for the same period in 2017. The increase was attributed to an increase of salaries and benefits expense and a one-time charge against an OREO property, partially offset by a reduction in professional fees and FDIC deposit insurance expense.

For the three month period ended December 31, 2018, the Bank incurred income tax expense of $801 thousand, resulting in an effective tax rate of 17.5%, compared to $830 thousand, resulting in an effective tax rate of 18.3%, for the three month period ended September 30, 2018, and compared to $1.0 million, resulting in an effective tax rate of 37.6%, for the three month period ended December 31, 2017. The current effective tax rate for the reporting periods of 2018 were reduced, in part, as a result of the new corporate tax rate of 21.0% from the prior rate of 34.0%.  In addition, both three and twelve months ended December 31, 2018 and three months ended September 30, 2018 were positively impacted by recording a tax benefit related to the exercise of stock options.

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 eleven branches in New Jersey, including three in Princeton and others in Cream Ridge, Hamilton, Pennington, Montgomery, Monroe, Lambertville, Lawrenceville, and New Brunswick.  There are also three branches in the Philadelphia, Pennsylvania area, operating as MoreBank, a division of The Bank of Princeton. 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 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; and the success of the Bank at managing the risks involved in the foregoing.

The Bank cautions that the foregoing list of important factors is not exclusive. The Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Bank, except as required by applicable law or regulation.

 

 

The Bank of Princeton
Summary Statements of Financial Condition Data
(unaudited)
(dollars in thousands, except per share data)
								Dec 31, 2018 vs Dec 31, 2017		Dec 31, 2018 vs Dec 31, 2017
		Dec 31,  2018		Dec 31,  2017				$ Change		%  Change
ASSETS
Cash and cash equivalents		$     26,384		$     82,822				$     (56,438)		(68.14)	%
Securities available for sale taxable		46,472		53,770				(7,298)		(13.57)
Securities available for sale tax exempt		45,209		47,974				(2,765)		(5.76)
Securities held to maturity		228		264				(36)		(13.64)
Loans receivable, net of deferred		1,081,179		969,947				111,232		11.47
Allowance for loan losses		(11,944)		(11,591)				(353)		3.05
Other assets		64,036		57,405				6,631		11.55
TOTAL ASSETS		$ 1,251,564		$ 1,200,591				$      50,973		4.25	%
LIABILITIES
Non interest checking		$   102,678		$   100,633				2,045		2.03	%
Interest checking		151,042		282,076				(131,034)		(46.45)
Savings		94,789		105,475				(10,686)		(10.13)
Money market		286,457		246,897				39,560		16.02
Time deposits over $250,000		104,104		102,586				1,518		1.48
Other time deposits		268,177		191,001				77,176		40.41
Total Deposits		1,007,247		1,028,668				(21,421)		(2.08)
Borrowings		55,400		-				55,400		-
Other liabilities		4,599		3,628				971		26.76
TOTAL LIABILITIES		1,067,246		1,032,296				34,950		3.39	%
STOCKHOLDERS' EQUITY
Common stock		33,278		32,756				522		1.59
Paid-in capital		77,895		76,350				1,545		2.02
Retained earnings		73,630		59,122				14,508		24.54
Accumulated other comprehensive (loss) income		(485)		67				(552)		(823.88)
TOTAL STOCKHOLDERS' EQUITY		184,318		168,295				16,023		9.52	%
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY		$ 1,251,564		$ 1,200,591				$      50,973		4.25	%
Book value per common share		$      27.69		$      25.69				$          2.00		7.79	%

 

 

	The Bank of Princeton
	Loan/Deposit Tables
	December 31, 2018
	Loan receivable, net at December 31, 2018 were comprised of the following:
			December 31,		December 31,
			2018		2017
			(Dollars in thousands)
	Commercial real estate		$        729,336		$        634,768
	Commercial and industrial		71,838		59,636
	Construction		235,361		283,051
	Residential first-lien mortgages		102,008		73,505
	Home equity		17,048		20,551
	Consumer		1,987		447
	Total loans		1,157,578		1,071,958
	Undisbursed portion of loans-in-process		(74,086)		(99,676)
	Deferred fees and costs		(2,313)		(2,335)
	Allowance for loan losses		(11,944)		(11,591)
	Loans, net		$     1,069,235		$        958,356
	The components of deposits at December 31, 2018 were as follows:
			December 31,		December 31,
			2018		2017
			(Dollars in thousands)
	Demand, non-interest-bearing checking		$        102,678		$        100,633
	Demand, interest-bearing		151,042		282,076
	Savings		94,789		105,475
	Money Markets		286,457		246,898
	Time deposits		372,281		293,586
	Total Deposits		$     1,007,247		$     1,028,668

 

 

The Bank of Princeton
Consolidated Statements of Operations (Current Quarter vs Prior Quarter)
(unaudited)
			Quarter Ending
			Dec 31,		Sep 30,
			2018		2018		$ Change		% Change
			(Dollars in thousands)
Interest and Dividend Income
	Loans and fees		$    13,437		$ 13,314		$        123		0.9%
	Available-for-Sale debt securities:
		Taxable	285		297		(12)		-4.0%
		Tax-exempt	314		323		(9)		-2.8%
	Held-to-Maturity debt securities		3		3		-		0.0%
	Other interest and dividend income		148		192		(44)		-22.9%
		Total Interest and Dividends	14,187		14,129		58		0.4%
	Interest expense
		Deposits	3,729		3,476		253		7.3%
		Borrowings	152		112		40		35.7%
		Total Interest Expense	3,881		3,588		293		8.2%
		Net Interest Income	10,306		10,541		(235)		-2.2%
Provision for Loan Losses			-		-		-		-
Net Interest Income after Provision for Loan Losses			10,306		10,541		(235)		-2.2%
Non-Interest income
	Gain on sale of securities available for sale,net		-		-		-		-
	Income from bank-owned life insurance		313		304		9		3.0%
	Fees and service charges		150		145		5		3.4%
	Loan fees, including prepayment penalities		119		179		(60)		-33.5%
	Other		19		20		(1)		-5.0%
		Total Non-Interest Income	601		648		(47)		-7.3%
Non-Interest Expense
	Salaries and employee benefits		3,654		3,507		147		4.2%
	Occupancy and equipment		858		839		19		2.3%
	Professional fees		527		485		42		8.7%
	Data processing and communications		519		534		(15)		-2.8%
	Federal deposit insurance		78		84		(6)		-7.1%
	Advertising and promotion		134		128		6		4.7%
	Office expense		61		72		(11)		-15.3%
	OREO Expense		-		1		(1)		-100.0%
	Loss on sale of other real estate owned		-		540		(540)		-100.0%
	Other		487		465		22		4.7%
		Total Non-Interest Expense
			6,318		6,655		(337)		-5.1%
Income before income tax expense/(benefit)
			4,589		4,534		55		1.2%
Income tax expense/(benefit)
			801		830		(29)		-3.5%
Net Income
			$     3,788		$  3,704		$          84		2.3%
Net income per common share - basic			0.57		0.56		0.01		1.8%
Net income per common share - diluted			0.55		0.54		0.01		1.9%
Weighted average shares outstanding - basic			6,650		6,644		6		0.1%
Weighted average shares outstanding - diluted			6,868		6,903		(35)		-0.5%

 

 

The Bank of Princeton
Consolidated Statements of Operations
(unaudited)
			Three Months Ended
			December 31,
			2018		2017		$ Change		% Change
			(Dollars in thousands)
Interest and Dividend Income
	Loans and fees		$ 13,437		$  12,082		$       1,355		11.2%
	Available-for-Sale debt securities:
		Taxable	285		290		-5		-1.7%
		Tax-exempt	314		295		19		6.4%
	Held-to-Maturity debt securities		3		3		0		0.0%
	Other interest and dividend income		148		120		28		23.3%
		Total Interest and Dividends	14,187		12,790		1,397		10.9%
	Interest expense
		Deposits	3,729		2,432		1,297		53.3%
		Borrowings	152		15		137		913.3%
		Total Interest Expense	3,881		2,447		1,434		58.6%
		Net Interest Income	10,306		10,343		-37		-0.4%
Provision for Loan Losses			-		2,915		-2,915		-100.0%
Net Interest Income after Provision for Loan Losses			10,306		7,428		2,878		38.7%
Non-Interest income
	Gain on sale of securities available for sale,net		-		-		-		-
	Income from bank-owned life insurance		313		298		15		5.0%
	Fees and service charges		150		160		-10		-6.3%
	Loan fees, including prepayment penalities		119		327		-208		-63.6%
	Other		19		15		4		26.7%
		Total Non-Interest Income	601		800		-199		-24.9%
Non-Interest Expense
	Salaries and employee benefits		3,654		3,073		581		18.9%
	Occupancy and equipment		858		874		-16		-1.8%
	Professional fees		527		481		46		9.6%
	Data processing and communications		519		511		8		1.6%
	Federal deposit insurance		78		(19)		97		-510.5%
	Advertising and promotion		134		58		76		131.0%
	Office expense		61		70		-9		-12.9%
	OREO Expense		-		2		-2		-100.0%
	Loss on sale of other real estate owned		-		-		0		0.0%
	Other		487		443		44		9.9%
		Total Non-Interest Expense	6,318		5,493		825		15.0%
Income before income tax expense/(benefit)			4,589		2,735		1,854		67.8%
Income tax expense/(benefit)			801		1,028		-227		-22.1%
Net Income			$  3,788		$   1,707		$       2,081		121.9%
Net income per common share - basic			0.57		0.26		0.31		119.2%
Net income per common share - diluted			0.55		0.25		0.30		120.0%
Weighted average shares outstanding - basic			6,650		6,550		100		1.5%
Weighted average shares outstanding - diluted			6,868		6,859		9		0.1%

 

 

The Bank of Princeton
Consolidated Statements of Operations
(unaudited)
			Twelve Months Ended
			December 31,
			2018		2017		$ Change		% Change
			(Dollars in thousands)
Interest and Dividend Income
	Loans and fees		$ 51,085		$  45,119		$       5,966		13.2%
	Available-for-Sale debt securities:
		Taxable	1,176		1,156		20		1.7%
		Tax-exempt	1,306		1,241		65		5.2%
	Held-to-Maturity debt securities		13		15		(2)		-13.3%
	Other interest and dividend income		785		441		344		78.0%
		Total Interest and Dividends	54,365		47,972		6,393		13.3%
	Interest expense
		Deposits	12,962		8,297		4,665		56.2%
		Borrowings	394		543		(149)		-27.4%
		Total Interest Expense	13,356		8,840		4,516		51.1%
		Net Interest Income	41,009		39,132		1,877		4.8%
Provision for Loan Losses			665		3,765		(3,100)		-82.3%
Net Interest Income after Provision for Loan Losses			40,344		35,367		4,977		14.1%
Non-Interest income
	Gain on sale of securities available for sale,net		1		14		(13)		-92.9%
	Income from bank-owned life insurance		1,225		896		329		36.7%
	Fees and service charges		623		629		(6)		-1.0%
	Loan fees, including prepayment penalities		755		1,253		(498)		-39.7%
	Other		58		38		20		52.6%
		Total Non-Interest Income	2,662		2,830		(168)		-5.9%
Non-Interest Expense
	Salaries and employee benefits		14,530		13,042		1,488		11.4%
	Occupancy and equipment		3,387		3,461		(74)		-2.1%
	Professional fees		1,939		2,134		(195)		-9.1%
	Data processing and communications		2,101		1,970		131		6.6%
	Federal deposit insurance		338		508		(170)		-33.5%
	Advertising and promotion		421		260		161		61.9%
	Office expense		267		266		1		0.4%
	Other real estate owned expense		2		8		(6)		-75.0%
	Loss on sale of other real estate owned		540		-		540		100.0%
	Other		1,773		1,685		88		5.2%
		Total Non-Interest Expense	25,298		23,334		1,964		8.4%
Income before income tax expense/(benefit)			17,708		14,863		2,845		19.1%
Income tax expense/(benefit)			3,000		3,849		(849)		-22.1%
Net Income			$ 14,708		$  11,014		$       3,694		33.5%
Net income per common share - basic			2.22		2.00		0.22		11.0%
Net income per common share - diluted			2.14		1.90		0.24		12.6%
Weighted average shares outstanding - basic			6,628		5,496		1,132		20.6%
Weighted average shares outstanding - diluted			6,872		5,787		1,085		18.7%

 

 

The Bank of Princeton
Consolidated Average Balance Sheets
(unaudited)
	For the Quarter Ended
	Dec 2018				Sept 2018
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,062,719		5.02%		$    1,059,316		4.99%		$         3,403		0.03%
Securities
Taxable AFS	47,297		2.41%		50,661		2.34%		(3,364)		0.07%
Tax exempt AFS	45,212		2.78%		46,788		2.74%		(1,576)		0.04%
Held-to-maturity	229		5.26%		250		5.03%		(21)		0.23%
Securities	92,738		2.60%		97,699		2.55%		(4,961)		0.05%
Other interest earning assets
Interest-bearing bank accounts	21,309		2.09%		30,938		2.05%		(9,629)		0.04%
Equities	2,131		6.75%		1,986		6.41%		145		0.34%
Other interest earning assets	23,440		2.51%		32,924		2.31%		(9,484)		0.20%
Total interest-earning assets	1,178,897		4.77%		1,189,939		4.71%		(11,042)		0.06%
Total non earning assets	56,087				54,916
Total Assets	$    1,234,984				$    1,244,855
Interest-bearing liabilities
Checking	$      177,247		0.98%		$      200,635		0.85%		(23,388)		0.13%
Savings	96,310		1.28%		100,496		1.22%		(4,186)		0.06%
Money Market	285,683		1.61%		284,651		1.48%		1,032		0.13%
Certificate of Deposit	364,272		1.98%		354,563		1.87%		9,709		0.11%
Total interest-bearing deposits	923,512		1.60%		940,345		1.47%		(16,833)		0.13%
Non interest bearing deposits	101,838				101,923
Total  deposits	1,025,350		1.44%		1,042,268		1.32%		(16,918)		0.12%
Borrowings	23,334		2.57%		20,128		2.22%		3,206		0.35%
Total interest-bearing liabilities	946,846		1.63%		960,473		1.48%		(13,627)		0.15%
(excluding non interest deposits)
Noninterest-bearing deposits	101,838				101,923
Total Cost of Funds	1,048,684		1.47%		1,062,396		1.34%		(13,712)		0.13%
Accrued expenses and other liabilities	5,166				4,543
Stockholders' equity	181,134				177,916
Total liabilities and stockholders' equity	$    1,234,984				$    1,244,855
Net interest spread			3.15%				3.23%
Net interest margin			3.47%				3.51%
Net interest margin (FTE)*			3.59%				3.67%
*Includes federal and state tax effect of tax exempt
securities and loans

 

 

The Bank of Princeton
Consolidated Average Balance Sheets
(unaudited)
	For the Three Months Ended
	December 31,
	2018				2017
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,062,719		5.02%		$      948,724		5.05%		$      113,995		-0.03%
Securities
Taxable AFS	47,297		2.41%		55,831		2.07%		(8,534)		0.34%
Tax exempt AFS	45,212		2.78%		44,404		2.66%		808		0.12%
Held-to-maturity	229		5.26%		265		5.21%		(36)		0.05%
Securities	92,738		2.60%		100,500		2.34%		(7,762)		0.26%
Other interest earning assets
Interest-bearing bank accounts	21,309		2.09%		33,379		1.18%		(12,070)		0.91%
Equities	2,131		6.75%		1,179		7.35%		952		-0.60%
Other interest earning assets	23,440		2.51%		34,558		1.39%		(11,118)		1.12%
Total interest-earning assets	1,178,897		4.77%		1,083,782		4.68%		95,115		0.09%
Total non earning assets	56,087				59,066
Total Assets	$    1,234,984				$    1,142,848
Interest-bearing liabilities
Checking	$      177,247		0.98%		$      209,337		0.75%		(32,090)		0.23%
Savings	96,310		1.28%		108,988		0.92%		(12,678)		0.36%
Money Market	285,683		1.61%		253,908		1.06%		31,775		0.55%
Certificate of Deposit	364,272		1.98%		287,497		1.53%		76,775		0.45%
Total interest-bearing deposits	923,512		1.60%		859,730		1.12%		63,782		0.48%
Non interest bearing deposits	101,838				105,586
Total  deposits	1,025,350		1.44%		965,316		1.00%		60,034		0.44%
Borrowings	23,334		2.57%		4,450		1.36%		18,884		1.21%
Total interest-bearing liabilities
(excluding non interest deposits)	946,846		1.63%		864,180		1.12%		82,666		0.51%
Noninterest-bearing deposits	101,838				105,586
Accrued expenses and other liabilities	5,166				4,700
Stockholders' equity	181,134				168,382
Total liabilities and stockholders' equity	$    1,234,984				$    1,142,848
Net interest spread			3.15%				3.56%
Net interest margin			3.47%				3.79%
Net interest margin (FTE)*			3.59%				3.82%
*Includes federal and state tax effect of tax exempt
securities and loans

 

 

The Bank of Princeton
Consolidated Average Balance Sheets
(unaudited)
	For the Twelve Months Ended
	December 30,
	2018				2017
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,027,701		4.97%		$      899,822		5.01%		$   127,879		-0.04%
Securities
Taxable AFS	51,429		2.29%		57,434		2.01%		(6,005)		0.28%
Tax exempt AFS	47,298		2.76%		46,047		2.70%		1,251		0.06%
Held-to-maturity	251		5.18%		302		5.08%		(51)		0.10%
Securities	98,978		2.52%		103,783		2.32%		(4,805)		0.20%
Other interest earning assets
Interest-bearing bank accounts	37,386		1.78%		21,976		1.12%		15,410		0.66%
Equities	1,828		6.59%		3,395		5.69%		(1,567)		0.90%
Other interest earning assets	39,214		2.00%		25,371		1.74%		13,843		0.26%
Total interest-earning assets	1,165,893		4.66%		1,028,976		4.66%		136,917		0.00%
Total non earning assets	57,456				46,796
Total Assets	$    1,223,349				$    1,075,772
Interest-bearing liabilities
Checking	$      215,379		0.86%		$      173,761		0.71%		41,618		0.15%
Savings	102,219		1.17%		107,747		0.87%		(5,528)		0.30%
Money Market	273,373		1.42%		265,055		0.99%		8,318		0.43%
Certificate of Deposit	334,780		1.80%		238,388		1.48%		96,392		0.32%
Total interest-bearing deposits	925,751		1.40%		784,951		1.06%		140,800		0.34%
Non interest bearing deposits	100,078				102,317
Total  deposits	1,025,829		1.26%		887,268		0.94%		138,561		0.32%
Borrowings	17,196		2.29%		51,618		1.05%		(34,422)		1.24%
Total interest-bearing liabilities
(excluding non interest deposits)	942,947		1.42%		836,569		1.06%		106,378		0.36%
Noninterest-bearing deposits	100,078				102,317
Accrued expenses and other liabilities	4,533				4,127
Stockholders' equity	175,791				132,759
Total liabilities and stockholders' equity	$    1,223,349				$    1,075,772
Net interest spread			3.25%				3.60%
Net interest margin			3.52%				3.80%
Net interest margin (FTE)*			3.64%				3.99%
*Includes federal and state tax effect of tax exempt
securities and loans

 

 

The Bank of Princeton
Quarterly Financial Highlights
(unaudited)
	2018		2018		2018		2018		2017
	Dec		Sep		Jun		Mar		Dec
Return on average assets	1.22%		1.18%		1.21%		1.21%		0.59%
Return on average equity	8.30%		8.26%		8.39%		8.54%		4.02%
Net interest margin	3.47%		3.51%		3.57%		3.52%		3.79%
Net interest margin (FTE)*	3.59%		3.67%		3.70%		3.65%		3.92%
Efficiency ratio - Non-GAAP **	57.94%		59.47%		57.55%		56.70%		49.40%
Common Stock Data
Market value at period end	27.90		30.54		33.25		34.50		34.34
Market range:
High	31.46		35.45		34.90		34.69		34.95
Low	26.77		30.54		32.21		31.50		31.10
Book value per common share at period end	27.69		27.01		26.50		26.00		25.69
CAPITAL RATIOS
Total Capital (to risk-weighted assets)	17.37%		16.79%		16.67%		17.04%		17.12%
Tier 1 Capital (to risk-weighted assets)	16.31%		15.73%		15.61%		15.94%		16.01%
Tierr 1 Capital (to average assets)	14.89%		14.47%		14.55%		14.30%		14.64%
Period-end equity to assets	14.73%		14.54%		14.18%		14.50%		14.02%
CREDIT QUALITY DATA AT PERIOD END
(Dollars in Thousands)
Net charge-offs and  (recoveries)	$       195		$         42		$       213		$         (3)		$     2,584
Annualized net charge-offs to average loans	0.073%		0.016%		-0.083%		-0.001%		1.08%
Nonaccrual loans	5,699		4,832		8,463		10,832		9,199
Other real estate owned	44		44		802		802		802
Total nonperforming assets	5,743		4,876		9,265		11,634		10,001
Accruing troubled debt restructurings (TDRs)	1,286		1,300		1,309		4,721		4,796
Total nonperforming assets and accruing TDRs	$     7,029		$     6,176		$   10,574		$   16,355		$   14,797
Allowance for credit losses as a percent of:
Period-end loans	1.10%		1.15%		1.13%		1.19%		1.20%
Nonaccrual loans	47.71%		39.81%		70.26%		91.42%		79.36%
Nonperforming assets	48.08%		40.17%		76.91%		98.19%		86.28%
As a percent of total loans:
Nonaccrual loans	0.53%		0.46%		0.79%		1.08%		0.95%
Accruing TDRs	0.12%		0.12%		0.12%		0.47%		0.49%
Nonaccrual loans and accruing TDRs	0.65%		0.58%		0.87%		1.64%		1.53%
*Includes the effect of tax exempt securities and loans
** The Efficiency Ratio is a non-GAAP information and should not be viewed as a substitute for financial results determined in accordance
with GAAP. The efficiency ratio is calculated by adding net-interest income and non-interest income than divided by non-interest expenses.

 

 

Contact George Rapp
609.454.0718
[e-mail]

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SOURCE The Bank of Princeton