The Bank of Princeton Announces First Quarter 2021 Results

PRINCETON, N.J., April 22, 2021 /PRNewswire/ — The Bank of Princeton (the «Bank») (NASDAQ: BPRN) today reported its unaudited results…

PRINCETON, N.J., April 22, 2021 /PRNewswire/ — The Bank of Princeton (the «Bank») (NASDAQ: BPRN) today reported its unaudited results of operations and financial condition for the quarter ended March 31, 2021.  The Bank reported net income of $4.9 million, or $0.70 per diluted common share, for the first quarter of 2021, compared to net income of $4.1 million, or $0.60 per diluted common share, for the fourth quarter of 2020, and net income of $3.0 million, or $0.44 per diluted common share, for the first quarter of 2020. The increase in net income, when compared to the three months ended December 31, 2020, was primarily due to a $1.2 million increase in net-interest income and a $525 thousand reduction in the provision for loan losses, partially offset by a $307 thousand decrease in non-interest income and a $349 thousand increase in non-interest expense. The increase in net income, when comparing it to the three months ended March 31, 2020, was primarily due to an increase in net-interest income of $4.3 million partially offset by a $475 thousand increase in the provision for loan losses, a $628 thousand decrease in non-interest income, and a $676 thousand increase in non-interest operating expenses.  

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

  • Total loans increased $94.2 million since December 31, 2020, to $1.5 billion or by 6.9%.
  • Net interest income for the first quarter of 2021 increased $4.3 million or 40.5% over the same period in 2020.
  • The Bank decreased its cost of funds by 88 basis points in the first quarter 2021 from the same period 2020.
  • The Bank efficiency ratio decreased to 51.8% for the first quarter 2021 compared to 64.3% from the first quarter 2020.
  • The ratio of nonperforming loans to total loans continues to be low at 0.14% as of March 31, 2021 compared to 0.12% at December 31, 2020 and compared to 0.22% at March 31, 2020.

President/CEO Edward Dietzler stated that, «The Bank started off the year very strong with a 17.5% increase in earnings per share with both asset and deposit growth as well as our net interest margin increasing 35 basis points from the fourth quarter of 2020.»

Chairman Richard Gillespie added, «The Bank continues to outperform significantly even in the face of COVID-19 challenges.  Our profitability continues to be well positioned for the balance of 2021.»

Balance Sheet Review

Total assets were $1.68 billion at March 31, 2021, an increase of $81.7 million or 5.1% when compared to $1.60 billion at the end of 2020. The primary reason for the increase in total assets was due to an increase in net loans of approximately $91.7 million, primarily consisting of approximately $98.3 million in originations of phase two Payroll Protection Program («PPP») loans guaranteed by the U.S. government, and a $53.4 million increase in construction loans, partially offset by a decrease of $42.8 million of PPP loans from the first phase as a result of the U.S. government forgiveness program.

Total deposits at March 31, 2021 increased by $31.4 million, or 2.3%, when compared to December 31, 2020, primarily due to loan proceeds maintained in non-interest demand accounts from customers who received PPP loans, stimulus payments to individuals under the recently enacted 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 $73.5 million, savings increased $14.1 million and money markets increased $19.6 million. These increases were partially offset by a decrease in interest-bearing demand accounts of $47.7 million, primarily municipal deposits and a decrease of $28.0 million in certificates of deposit. In addition, the Bank had approximately $43.0 million in overnight borrowings at March 31, 2021 and no outstanding borrowings at December 31, 2020.  

Total stockholders’ equity at March 31, 2021 increased $3.7 million or 1.8% when compared to the end of 2020. This increase was primarily due to earnings recorded during the three months of 2021 minus the cash dividend paid during the period, and minus the $552 thousand decrease in the fair-value of the available-for-sale investment portfolio related to increase in the treasury curve.   The ratio of equity to total assets at March 31, 2021 was 12.6% compared to 13.0% at December 31, 2020, as the current period ratio was impacted by the 5.1% growth in assets.

Asset Quality

At March 31, 2021, non-performing assets were $2.4 million, an increase of $822 thousand, or 49.1%, when compared to the amount at December 31, 2020.  This increase at March 31, 2021 from December 31, 2020 was primarily due to the addition of three loans totaling $1.3 million being classified as non-performing, partially offset by $360 thousand in principal charge-offs. Troubled debt restructurings («TDR») totaled $8.5 million at March 31, 2021 and $8.6 million at December 31, 2020. Two TDR loans totaling $2.3 million have deferred their payments under 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 March 31, 2021, the Bank had remaining 8 loans that were modified totaling $16.3 million, and at 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 $14.8 million for the first quarter of 2021, compared to $13.6 million for the fourth quarter of 2020 and $10.5 million for the first quarter of 2020.  The increase from the previous quarter was a result of an increase in interest income of $933 thousand and a $256 thousand, or 11.2%, decrease in interest paid on liabilities, partially resulting from a 9 basis points reduction in the rate on interest bearing deposits.  Interest income for the first three months of 2021 included an increase of $836 thousand in accretion from deferred fees received from the first phase of PPP loans, due to the U.S. government forgiving the debt and paying off the loans. The net interest margin for the first quarter of 2021 was 3.98%, increasing 35 basis points when compared to the fourth quarter of 2020. This increase was primarily associated with a reduction of 8 basis points in total interest cost of funds, and an increase of 28 basis points in the yield on earning assets. When comparing the three month periods ended March 31, 2021 and 2020, net interest income increased $4.3 million, which was primarily due to a reduction in interest expense of $2.5 million aided by an increase in interest income of $1.7 million caused by a $152.4 million increase in interest earning assets.  The reduction in interest expense was attributed to decline of 95 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 . The total cost of funds rate was 0.60%, including non-interest deposits, for the first quarter 2021.

The provision for credit losses was $1.1 million for the three month period ended March 31, 2021.  The comparable amounts were $1.7 million and $650 thousand for the three months ended December 31, 2020 and March 31, 2020, respectively. The primary reason for the elevated provision in the first quarter 2021, when compared to the same period of 2020, was due to the Bank’s partially charging off four loans totaling $1.1 million.  The general reserves were also impacted by an increase in the qualitative factors dollar contribution to the reserve due to  growth within the Bank’s loan portfolio mainly in the construction and development loans and partially offset by a reduction in the historical loss factor resulting from decline in level of prior period charge-offs.  As of March 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 rate of allowance for credit losses to period end loans was 1.10% (excluding PPP loans, the coverage ratio was 1.31%) at March 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 March 31, 2021, the Bank’s concentration in the loan portfolio associated with the segment’s management believes could be affected by the pandemic: restaurants, hotels and retail, which totaled $16.1 million, $37.6 million and $40.7 million, respectively.  

Total non-interest income for the first quarter of 2021 decreased $628 thousand to $863 thousand, or by 42.1%, when compared to the same period in 2020. This decrease was primarily due to a $498 thousand reduction from the realized gains on the sale of available-for-sale securities portfolio and a $178 thousand reduction in loan fees collected.  Total non-interest income when comparing first quarter of 2021 to the fourth quarter of 2020 decreased $307 thousand, primarily due to a reduction in loans fees.

Total non-interest expense for the first quarter of 2021 increased $676 thousand, or 8.9%, 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 March 31, 2021 to the immediately prior quarter, non-interest expense increased $349 thousand, or 4.4%, primarily due to increases in salaries and benefits expense, data processing expenses, and professional fees expense, partially offset by a reduction in Federal Deposit Insurance expense. 

For the three month period ended March 31, 2021, the Bank recorded an income tax expense of $1.4 million, resulting in an effective tax rate of 22.2%, 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, and compared to an income tax expense of $726 thousand resulting in an effective tax rate of 19.3% for the three month period ended March 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 first quarter 2021 and the fourth quarter of 2020 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, 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

grapp@thebankofprinceton.com

 

The Bank of Princeton






Summary Statements of Financial Condition Data






(unaudited)






(dollars in thousands, except per share data)


































Mar 31, 2021

vs

Dec 31, 2020


Mar 31, 2021

vs

Dec 31, 2020



Mar 31, 2021

vs

Mar 31, 2020


Mar 31, 2021

vs

Mar 31, 2020





Mar 31,      2021


Dec 31,      2020


Mar 31,      2020



$

Change


%

Change


$

Change


%

 Change





















ASSETS








Cash and cash equivalents


$     67,517


$     77,429


$     51,437



$       (9,912)


(12.80)

%


$      16,080


31.26

%


Securities available for sale taxable


25,964


25,112


36,738



852


3.39



(10,774)


(29.33)



Securities available for sale tax exempt


46,443


50,516


56,347



(4,073)


(8.06)



(9,904)


(17.58)



Securities held to maturity


214


215


220



(1)


(0.47)



(6)


(2.73)



Loans receivable, net of deferred


1,455,158


1,363,486


1,191,812



91,672


6.72



263,346


22.10



Allowance for loan losses


(16,042)


(16,027)


(12,322)



(15)


0.09



(3,720)


30.19



Other assets


105,284


102,107


100,344



3,177


3.11



4,940


4.92



TOTAL ASSETS


$ 1,684,538


$ 1,602,838


$ 1,424,576



$      81,700


5.10

%


$     259,962


18.25

%








































LIABILITIES



















Non interest checking


$   288,852


$   215,381


$   150,184



$      73,471


34.11

%


$     138,668


92.33

%


Interest checking


241,061


288,769


200,405



(47,708)


(16.52)



40,656


20.29



Savings


193,046


178,932


161,921



14,114


7.89



31,125


19.22



Money market


324,881


305,290


259,885



19,591


6.42



64,996


25.01



Time deposits over $250,000 


55,117


67,924


120,062



(12,807)


(18.85)



(64,945)


(54.09)



Other time deposits


295,754


310,970


307,898



(15,216)


(4.89)



(12,144)


(3.94)



Total Deposits


1,398,711


1,367,266


1,200,355



31,445


2.30



198,356


16.52



Borrowings


43,000





43,000




43,000


 N/A 



Other liabilities


30,280


26,754


25,207



3,526


13.18



5,073


20.13



    TOTAL LIABILITIES


1,471,991


1,394,020


1,225,562



77,971


5.59

%


246,429


20.11

%





















STOCKHOLDERS’ EQUITY



















 Common stock 


34,022


33,949


33,855



73


0.22



167


0.49



 Paid-in capital 


79,879


79,708


79,349



171


0.21



530


0.67



 Retained earnings 


97,407


93,370


84,630



4,037


4.32



12,777


15.10



 Accumulated other comprehensive income (loss) 


1,239


1,791


1,180



(552)


(30.82)



59


5.00



     TOTAL STOCKHOLDERS’ EQUITY 


212,547


208,818


199,014



3,729


1.79

%


13,533


6.80

%





















TOTAL LIABILITIES 



















     AND STOCKHOLDERS’ EQUITY


$ 1,684,538


$ 1,602,838


$ 1,424,576



$      81,700


5.10

%


$     259,962


18.25

%





















Book value per common share


$       31.24


$       30.75


$       29.39



$          0.49


1.59

%


$          1.85


6.29

%


Tangible book value per common share1


$       29.52


$       29.00


$       27.56



$          0.52


1.79

%


$          1.96


7.11

%





















1Tangible book value per common share in a non-GAAP measure that represents book value  per common share which excludes goodwill and core deposit intangible.








 

The Bank of Princeton







Loan/Deposit Tables







(unaudited)














Loan receivable, net at March 31, 2021 and December 31, 2020 were comprised of the following:

















March 31,


December 31,





2020


2020





(Dollars in thousands)



Commercial real estate


$        807,752


$        812,043



Commercial and industrial


37,009


40,597



Construction


316,447


263,032



Residential first-lien mortgages


61,102


66,857



Home equity / consumer


8,805


9,929



PPP (SBA loans)


231,375


175,878



     Total loans


1,462,490


1,368,336



Deferred fees and costs


(7,332)


(4,850)



Allowance for loan losses


(16,042)


(16,027)



     Loans, net


$     1,439,116


$     1,347,459

















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











March 31,


December 31,





2020


2020





(Dollars in thousands)



Demand, non-interest-bearing checking


$        288,852


$        215,381



Demand, interest-bearing 


241,061


288,769



Savings


193,046


178,932



Money Markets


324,881


305,290



Time deposits


350,871


378,894



     Total Deposits


$     1,398,711


$     1,367,266

















 

The Bank of Princeton









Consolidated Statements of Operations








(unaudited)












Three Months Ended March 31,









2021


2020


$ Change


% Change





(Dollars in thousands, except per share data)


Interest and Dividend Income





















Loans and fees

$ 16,328


$   14,199


$       2,129


15.0%



Available-for-Sale debt securities:











Taxable

108


310


(202)


-65.2%




Tax-exempt

301


363


(62)


-17.1%



Held-to-Maturity debt securities

4


3


1


33.3%



Other interest and dividend income

45


162


(117)


-72.2%















Total Interest and Dividends

16,786


15,037


1,749


11.6%














Interest expense






















Deposits

2,030


4,532


(2,502)


-55.2%




Borrowings

1


3


(2)


-66.7%















Total Interest Expense

2,031


4,535


(2,504)


-55.2%















Net Interest Income

14,755


10,502


4,253


40.5%













Provision for Loan Losses

1,125


650


475


73.1%













Net Interest Income after Provision for Loan Losses

13,630


9,852


3,778


38.3%













Non-Interest income





















Gain on sale of securities available for sale,net

7


505


(498)


-98.6%



Income from bank-owned life insurance

273


296


(23)


-7.8%



Fees and service charges

402


333


69


20.7%



Loan fees, including prepayment penalities

126


304


(178)


-58.6%



Other 

55


53


2


3.8%















Total Non-Interest Income

863


1,491


(628)


-42.1%













Non-Interest Expense





















Salaries and employee benefits

4,110


4,122


(12)


-0.3%



Occupancy and equipment

1,520


1,202


318


26.5%



Professional fees

662


521


141


27.1%



Data processing and communications

871


803


68


8.5%



Federal deposit insurance

128


88


40


45.5%



Advertising and promotion

50


90


(40)


-44.4%



Office expense

53


80


(27)


-33.8%



Other real estate owned expense

9



9


N/A



Core deposit intangible

174


193


(19)


-9.8%



Other 

682


484


198


40.9%















Total Non-Interest Expense

8,259


7,583


676


8.9%













Income before income tax expense

6,234


3,760


2,474


65.8%













Income tax expense

1,382


726


656


90.4%













Net Income

$  4,852


$    3,034


1,818


59.9%













Net income per common share – basic

$    0.71


$      0.45


$        0.26


57.8%


Net income per common share – diluted

$    0.70


$      0.44


$        0.26


59.1%













Weighted average shares outstanding – basic

6,804


6,766


38


0.6%


Weighted average shares outstanding – diluted

6,951


6,920


31


0.4%


 

The Bank of Princeton









Consolidated Statements of Operations (Current Quarter vs Prior Quarter)






(unaudited)












Quarter Ending









Mar 31,


Dec 31,









2021


2020


$ Change


% Change





(Dollars in thousands, except per share data)


Interest and Dividend Income





















Loans and fees

$    16,328


$ 15,379


$        949


6.2%



Available-for-Sale debt securities:











Taxable

108


103


5


4.9%




Tax-exempt

301


321


(20)


-6.2%



Held-to-Maturity debt securities

4


2


2


100.0%



Other interest and dividend income

45


48


(3)


-6.3%















Total Interest and Dividends

16,786


15,853


933


5.9%














Interest expense






















Deposits

2,030


2,287


(257)


-11.2%




Borrowings

1



1


0.0%















Total Interest Expense

2,031


2,287


(256)


-11.2%















Net Interest Income

14,755


13,566


1,189


8.8%













Provision for Loan Losses

1,125


1,650


(525)


-31.8%













Net Interest Income after Provision for Loan Losses

13,630


11,916


1,714


14.4%













Non-Interest income





















Gain on sale of securities available for sale,net

7


17


(10)


-58.8%



Income from bank-owned life insurance

273


281


(8)


-2.8%



Fees and service charges

402


428


(26)


-6.1%



Loan fees, including prepayment penalities

126


386


(260)


-67.4%



Other 

55


58


(3)


-5.2%















Total Non-Interest Income

863


1,170


(307)


-26.2%













Non-Interest Expense





















Salaries and employee benefits

4,110


3,870


240


6.2%



Occupancy and equipment

1,520


1,499


21


1.4%



Professional fees

662


613


49


8.0%



Data processing and communications

871


788


83


10.5%



Federal deposit insurance

128


181


(53)


-29.3%



Advertising and promotion

50


59


(9)


-15.3%



Office expense

53


60


(7)


-11.7%



Other real estate owned expense

9



9


N/A



Core deposit intangible

174


174


0


0.0%



Other 

682


666


16


2.4%















Total Non-Interest Expense

8,259


7,910


349


4.4%













Income before income tax expense

6,234


5,176


1,058


20.4%













Income tax expense

1,382


1,073


309


28.8%













Net Income

$     4,852


$  4,103


$        749


18.3%













Net income per common share – basic

$       0.71


$    0.60


$       0.11


18.3%


Net income per common share – diluted

$       0.70


$    0.60


$       0.10


16.7%













Weighted average shares outstanding – basic

6,804


6,784


20


0.3%


Weighted average shares outstanding – diluted

6,951


6,878


73


1.1%


 

The Bank of Princeton













Consolidated Average Statement of Financial Condition












(unaudited)



























For the Three Months Ended







March 31,







2021


2020







Average 


Yield/


Average 


Yield/







balance


rate 


balance


rate 


$ Change


% Change



(Dollars in thousands)






Earning assets













  Loans 

$    1,377,302


4.81%


$    1,197,745


4.77%


$      179,557


0.04%















Securities


























  Taxable AFS 

25,986


1.61%


56,641


2.18%


(30,655)


-0.57%


  Tax exempt AFS

48,540


2.51%


56,875


2.55%


(8,335)


-0.04%


  Held-to-maturity

215


5.27%


221


5.26%


(6)


0.01%















Securities

74,741


2.21%


113,737


2.37%


(38,996)


-0.16%















Other interest earning assets













  Interest-bearing bank accounts

49,986


0.24%


38,302


1.52%


11,684


-1.28%


  Equities

1,388


4.56%


1,281


5.61%


107


-1.05%















Other interest earning assets

51,374


0.36%


39,583


1.65%


11,791


-1.29%















Total interest-earning assets

1,503,417


4.53%


1,351,065


4.48%


152,352


0.05%















Total non earning assets

113,352




95,402





















Total Assets

$    1,616,769




$    1,446,467


































Interest-bearing liabilities













Checking

$      263,367


0.31%


$      220,018


1.00%


$        43,349


-0.69%


Savings

184,714


0.27%


157,263


1.16%


27,451


-0.89%


Money Market

312,648


0.33%


268,257


1.44%


44,391


-1.11%


Certificate of Deposit

368,692


1.59%


435,835


2.37%


(67,143)


-0.78%















    Total interest-bearing deposits

1,129,421


0.73%


1,081,373


1.69%


48,048


-0.96%















Non interest bearing deposits

248,661




143,747





















    Total  deposits

1,378,082


0.60%


1,225,120


1.48%


152,962


-0.88%















Borrowings

478


0.32%


803


1.64%


(325)


-1.32%


    Total interest-bearing liabilities 













       (excluding non interest deposits)

1,129,899


0.73%


1,082,176


1.68%


47,723


-0.95%















Noninterest-bearing deposits

248,661




143,747








Total Cost of Funds

1,378,560


0.60%


1,225,923


1.48%


152,637


-0.88%















Accrued expenses and other liabilities

26,915




22,791








Stockholders’ equity

211,294




197,753








Total liabilities and stockholders’ equity

$    1,616,769




$    1,446,467


































Net interest spread



3.80%




2.79%






Net interest margin



3.98%




3.13%



















Net interest margin (FTE)1



4.09%




3.20%



















  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







 Mar 2021


Dec 2020







Average 


Yield/


Average 


Yield/







balance


rate 


balance


rate 


$ Change


% Change



(Dollars in thousands)





Earning assets













  Loans 

$    1,377,302


4.81%


$       1,351,400


4.53%


$       25,902


0.28%















Securities


























  Taxable AFS 

25,986


1.61%


26,145


1.57%


(159)


0.04%


  Tax exempt AFS

48,540


2.51%


51,707


2.48%


(3,167)


0.03%


  Held-to-maturity

215


5.27%


216


5.26%


(1)


0.01%















Securities

74,741


2.21%


78,068


2.19%


(3,327)


0.02%















Other interest earning assets













  Interest-bearing bank accounts

49,986


0.24%


54,560


0.23%


(4,574)


0.01%


  Equities

1,388


4.56%


1,377


4.74%


11


-0.18%















Other interest earning assets

51,374


0.36%


55,937


0.34%


(4,563)


0.02%















Total interest-earning assets

1,503,417


4.53%


1,485,405


4.25%


18,012


0.28%















Total non earning assets

113,352




92,007





















Total Assets

$    1,616,769




$       1,577,412


































Interest-bearing liabilities













Checking

$      263,367


0.31%


$         242,076


0.31%


$       21,291


0.00%


Savings

184,714


0.27%


177,822


0.29%


6,892


-0.02%


Money Market

312,648


0.33%


303,158


0.35%


9,490


-0.02%


Certificate of Deposit

368,692


1.59%


391,985


1.73%


(23,293)


-0.14%















    Total interest-bearing deposits

1,129,421


0.73%


1,115,041


0.82%


14,380


-0.09%















Non interest bearing deposits

248,661




228,410





















    Total  deposits

1,378,082


0.60%


1,343,451


0.68%


34,631


-0.08%















Borrowings

478


0.32%


261


0.38%


217


-0.06%















    Total interest-bearing liabilities 

1,129,899


0.73%


1,115,302


0.82%


14,597


-0.09%


       (excluding non interest deposits)













Noninterest-bearing deposits

248,661




228,410








Total Cost of Funds

1,378,560


0.60%


1,343,712


0.68%


34,848


-0.08%















Accrued expenses and other liabilities

26,915




26,156








Stockholders’ equity

211,294




207,544








Total liabilities and stockholders’ equity

$    1,616,769




$       1,577,412


































Net interest spread



3.80%




3.43%






Net interest margin



3.98%




3.63%



















Net interest margin (FTE)1



4.09%




3.69%



















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


























 

The Bank of Princeton











Quarterly Financial Highlights











(unaudited)























2021


2020


2020


2020


2020



Mar


Dec


Sep


Jun


Mar













     Return on average assets 

1.21%


1.03%


0.90%


0.82%


0.84%


     Return on average equity 

9.31%


7.86%


6.90%


6.27%


6.17%


     Return on average tangible equity1

9.86%


8.35%


7.50%


6.68%


6.59%


     Net interest margin

3.98%


3.63%


3.45%


3.43%


3.13%


     Net interest margin (FTE)2

4.09%


3.69%


3.53%


3.49%


3.20%


     Efficiency ratio – Non-GAAP3 

51.80%


52.55%


52.91%


61.10%


64.33%













Common Stock Data











     Market value at period end

28.62


23.41


18.17


20.19


23.25


     Market range:











        High

29.67


26.44


20.45


23.91


32.25


        Low

21.43


18.12


17.40


17.51


19.09


     Book value per common share at period end

31.24


30.75


30.26


29.85


29.39


     Tangible book value per common share at period end4

29.52


29.00


28.48


28.04


27.56













CAPITAL RATIOS











Total Capital (to risk-weighted assets)

15.73%


16.03%


16.41%


16.01%


15.32%


Tier 1 Capital (to risk-weighted assets)

14.56%


14.81%


15.20%


14.95%


14.36%


Tier 1 Capital (to average assets)

12.45%


12.48%


12.27%


12.45%


12.91%


     Period-end equity to assets

12.62%


13.03%


13.24%


12.69%


13.97%


     Period-end tangible equity to tangible assets 

11.92%


12.38%


12.56%


12.02%


13.21%













CREDIT QUALITY DATA AT PERIOD END











(Dollars in Thousands)











     Net charge-offs and  (recoveries)

$1,100


$870


-$6


$6


$884


     Annualized net charge-offs (recoveries) to average loans

0.319%


0.256%


-0.001%


0.002%


0.297%













     Total nonperforming assets 

2,498


1,676


2,383


2,387


2,596


     Accruing troubled debt restructurings (TDRs)

8,533


8,573


8,888


9,471


9,247


     Total nonperforming assets and accruing TDRs 

$   11,031


$   10,249


$   11,271


$   11,858


$   11,843













     Allowance for credit losses as a percent of:











     Period-end loans      

1.12%


1.18%


1.14%


0.99%


1.03%


     Nonaccrual loans 

781.77%


956.26%


639.82%


557.90%


474.65%


     Nonperforming assets 

642.19%


956.26%


639.82%


557.90%


474.65%













    As a percent of total loans:











    Nonaccrual loans 

0.14%


0.12%


0.18%


0.18%


0.22%


    Accruing TDRs 

0.59%


0.63%


0.66%


0.71%


0.78%


    Nonaccrual loans and accruing TDRs 

0.77%


0.75%


0.84%


0.88%


0.99%













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 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