The Bank of Princeton Announces First Quarter 2020 Results - WIRE.RealEstate

The Bank of Princeton Announces First Quarter 2020 Results

Apr 24, 2020 11:05 PM ET


The Bank of Princeton (the “Bank”) (NASDAQ – BPRN) today reported unaudited results of operations and financial condition for the quarter ended March 31, 2020.  The Bank reported net income of $3.0 million, or $0.44 per diluted common share, for the first quarter of 2020, compared to net income of $3.4 million, or $0.49 per diluted common share, for the fourth quarter of 2019, and net income of $229 thousand, or $0.03 per diluted common share, for the first quarter of 2019. The decrease in net income, when comparing this most recent quarter to the three months ended December 31, 2019, was primarily due to a $708 thousand increase in non-interest expense and a $525 thousand increase in the Bank’s provision for loan losses, partially offset by a $697 thousand increase in non-interest income.  The increase in net income, when comparing it to the three months ended March 31, 2019, was primarily due to an increase of $706 thousand in the Bank’s non-interest income and a decrease in the Bank’s provision for loan losses of $3.6 million, partially offset by a $1.2 million increase in operating expenses attributed to the Bank’s strategy of branch expansion.

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

  • Net interest income for the three month period ended March 31, 2020 increased $591 thousand, or 6.0%, over the same period in 2019.
  • The Bank decreased its cost of funds by 11 basis points during the three month period ended March 31, 2020, when compared to the same period in 2019.
  • Non-interest income for the three month period ended March 31, 2020 increased $706 thousand, or 89.9%, over the same period in 2019.
  • The ratio of non-performing assets to total assets was 0.18% at March 31, 2020.

“During the first quarter, less expensive core deposits continued to grow, which has a positive impact on our cost of funds,” stated Edward Dietzler, President/CEO.

Balance Sheet Review

Total assets were $1.43 billion at March 31, 2020, a decrease of $30.3 million or 2.0% when compared to $1.45 billion at the end of 2019. The primary reason for the decrease in total assets was a result of the Bank’s strategic initiative to reduce its cost of funds by reducing interest rates offered on higher costing deposit products.

Total deposits at March 31, 2020 decreased by $37.5 million, or 3.0%, when compared to December 31, 2019, primarily due to the impact of reducing rates on some of its higher costing deposit products.  When comparing deposit products between the two periods, money markets decreased by $35.1 million, interest-bearing checking decreased by $12.1 million and time deposits decreased by $6.3 million, partially offset by increases in non-interest checking of $8.8 million and savings of $7.2 million. In addition, at March 31, 2020 and at December 31, 2019, the Bank did not have an outstanding balance in borrowings.  

Total stockholders’ equity at March 31, 2020 increased $3.1 million or 1.6% when compared to the end of 2019. This increase was primarily due to earnings recorded during the three months of 2020, and an increase of $550 thousand in the fair-value of the available-for-sale investment portfolio.   The ratio of equity to total assets at March 31, 2020 was 14.0% compared to 13.5% at December 31, 2019.

Asset Quality

At March 31, 2020, non-performing assets were $2.6 million, an increase of $154 thousand, or 6.3%, when compared to $2.4 million at December 31, 2019.  This increase at March 31, 2020 from December 31, 2019 was primarily due the addition of a single-family residential loan.  Total troubled debt restructurings (“TDR”) totaled $9.3 million at March 31, 2020 and December 31, 2019. All TDR’s are performing to their agreed upon terms.

Review of Quarterly Financial Results

Net interest income was $10.5 million for the first quarter of 2020, compared to $10.4 million for the fourth quarter of 2019 and $9.9 million for the first quarter of 2019.  The increase from the previous quarter was a result of a decrease in interest paid on liabilities of $246 thousand, or 5.1%, partially offset by a decrease in interest income of $156 thousand.  The net interest margin for the first quarter 2020 was 3.13%, increasing 3 basis points when compared to the fourth quarter of 2019. This increase was primarily associated with a reduction of 9 basis points in total cost of funds offset by a 5 basis points reduction in the yield on earning assets. When comparing the three month periods ended March 31, 2020 and 2019, net interest income increased $591 thousand, which was primarily due to a higher volume of average earnings assets of approximately $145.7 million.  Interest and dividend income increased by $762 thousand, offset by an increase in interest expense of $171 thousand. The total rate on interest-bearing liabilities, which includes non-interest-bearing deposits, for the three month periods ended March 31, 2020 and 2019 was 1.46% and 1.60%, respectively. 

The provision for credit losses was $650 thousand for the three months ended March 31, 2020.  The comparable amounts were $125 thousand and $4.2 million for the three months ended December 31, 2019 and March 31, 2019, respectively. The primary reason for the provision in the first quarter of 2020 was due to an $886 thousand charge-off recorded against a borrower of a commercial real estate loan.  The rate of allowance for credit losses to period end loans was 1.03% at March 31, 2020, compared to 1.06% at December 31, 2019 and 1.07% at March 31, 2019, which reflects management’s assessment of the credit quality in the loan portfolio.

Total non-interest income for the first quarter of 2020 increased $706 thousand to $1.5 million, or 89.9%, when compared to the same period in 2019. This increase was primarily due to a $505 thousand gain record on the sale of investment securities held as available-for-sale, and an increase in service charges on deposits and loan fees collected.  Total non-interest income, comparing the three month periods ended March 31, 2020 and December 31, 2019, reflected an increase of $697 thousand, or 87.8%, primarily due to the aforementioned gain recorded on the sale investment securities held as available-for-sale, and a higher level of fees generated on loans recorded between the two periods.    

Total non-interest expense for the first quarter of 2020 increased $1.2 million, or 19.6%, when compared to the same period in 2019.  This increase was primarily due to an increase in additional operating cost associated with the Bank’s branch expansion strategy.  When comparing March 31, 2020 to the immediately prior quarter, non-interest expense increased $708 thousand, or 10.3%, primarily due to growth-related increases in salaries and employee benefits’ expense, data processing expense, professional fees, and FDIC insurance premiums, partially offset by a reduction in advertising expenses, occupancy and equipment expense and other expense.

For the three month period ended March 31, 2020, the Bank recorded an income tax expense of $726 thousand, resulting in an effective tax rate of 19.3%, compared to an income tax expense of $817 thousand resulting in an effective tax rate of 19.4% for the three month period ended December 31, 2019, and compared to an income tax benefit of $74 thousand for the three month period ended March 31, 2019. The effective tax rate for the three months ended March 31, 2020 and December 31, 2019 were both positively impacted by the exercise of stock options from the Bank’s equity incentive plans. The tax benefit for March 31, 2019 was 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 report. 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 is working closely with its loan customers to educate and guide them on their options for financial assistance, including the Paycheck Protection Program (“PPP”) and payment relief through deferral and waived fees.  The Bank will continue 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 18 branches in New Jersey, including four in Princeton and others in BordentownBrowns MillsChesterfieldCream RidgeDeptfordHamiltonLambertvilleLawrenceville, Monroe, New BrunswickPenningtonPrinceton Junction, Quakerbridge and Sicklerville.  There are also three 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 impact of the recent global coronavirus outbreak, the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the value of the Bank’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Bank’s products and services; credit risk associated with the Bank’s lending activities; risks relating to the real estate market and the Bank’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Bank; technological changes; acquisitions; changes in consumer spending and saving habits; those risks set forth in the Bank’s Annual Report on Form 10-K for the year ended December 31, 2019 under the heading “Risk Factors,” 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, 2020 
vs
Dec 31, 2019

 

Mar 31, 2020 
          vs           
Dec 31, 2019

   

Mar 31, 2020
vs
Mar 31, 2019

 

Mar 31, 2020
vs
Mar 31, 2019

 
   

Mar 31, 
2020

 

Dec 31, 
2019

 

Mar 31, 
2019

   

$
Change

 

%
 Change

 

$
Change

 

%
 Change

                                   

ASSETS

           

Cash and cash equivalents

 

$     51,437

 

$     72,598

 

$     23,791

   

$     (21,161)

 

(29.15)

%

 

$      27,646

 

116.20

%

Securities available for sale taxable

 

36,738

 

55,951

 

44,297

   

(19,213)

 

(34.34)

   

(7,559)

 

(17.06)

 

Securities available for sale tax exempt

 

56,347

 

56,361

 

47,417

   

(14)

 

(0.02)

   

8,930

 

18.83

 

Securities held to maturity

 

220

 

222

 

227

   

(2)

 

(0.90)

   

(7)

 

(3.08)

 

Loans receivable, net of deferred

 

1,191,812

 

1,186,570

 

1,114,797

   

5,242

 

0.44

   

77,015

 

6.91

 

Allowance for loan losses

 

(12,322)

 

(12,557)

 

(11,961)

   

235

 

(1.87)

   

(361)

 

3.02

 

Other assets

 

100,344

 

95,749

 

78,660

   

4,595

 

4.80

   

21,684

 

27.57

 

TOTAL ASSETS

 

$ 1,424,576

 

$ 1,454,894

 

$ 1,297,228

   

$     (30,318)

 

(2.08)

%

 

$     127,348

 

9.82

%

                                   
                                   

LIABILITIES

                                 

Non interest checking

 

$   150,184

 

$   141,338

 

$     92,684

   

$        8,846

 

6.26

%

 

$      57,500

 

62.04

%

Interest checking

 

200,405

 

212,552

 

181,767

   

(12,147)

 

(5.71)

   

18,638

 

10.25

 

Savings

 

161,921

 

154,756

 

93,464

   

7,165

 

4.63

   

68,457

 

73.24

 

Money market

 

259,885

 

294,940

 

247,912

   

(35,055)

 

(11.89)

   

11,973

 

4.83

 

Time deposits over $250,000 

 

120,062

 

121,122

 

100,244

   

(1,060)

 

(0.88)

   

19,818

 

19.77

 

Other time deposits

 

307,898

 

313,182

 

296,468

   

(5,284)

 

(1.69)

   

11,430

 

3.86

 

Total Deposits

 

1,200,355

 

1,237,890

 

1,012,539

   

(37,535)

 

(3.03)

   

187,816

 

18.55

 

Borrowings

 

 

 

79,800

   

 

(79,800)

   

(79,800)

 

(100.00)

 

Other liabilities

 

25,207

 

21,079

 

18,696

   

4,128

 

19.58

   

6,511

 

34.83

 

    TOTAL LIABILITIES

 

1,225,562

 

1,258,969

 

1,111,035

   

(33,407)

 

(2.65)

%

 

114,527

 

10.31

%

                                   

STOCKHOLDERS’ EQUITY

                                 

 Common stock 

 

33,855

 

33,807

 

33,680

   

48

 

0.14

   

175

 

0.52

 

 Paid-in capital 

 

79,349

 

79,215

 

78,710

   

134

 

0.17

   

639

 

0.81

 

 Retained earnings 

 

84,630

 

82,273

 

73,659

   

2,357

 

2.86

   

10,971

 

14.89

 

 Accumulated other comprehensive income (loss) 

 

1,180

 

630

 

144

   

550

 

87.30

   

1,036

 

719.44

 

     TOTAL STOCKHOLDERS’ EQUITY 

 

199,014

 

195,925

 

186,193

   

3,089

 

1.58

%

 

12,821

 

6.89

%

                                   

TOTAL LIABILITIES 

                                 

     AND STOCKHOLDERS’ EQUITY

 

$ 1,424,576

 

$ 1,454,894

 

$ 1,297,228

   

$     (30,318)

 

17.02

%

 

$     127,348

 

9.82

%

                                   

Book value per common share

 

$      29.39

 

$      28.98

 

$      27.64

   

$          0.41

 

1.43

%

 

$          1.75

 

6.33

%

Tangible book value per common share1

 

$      27.56

 

$      27.11

 

$      27.98

   

$          0.45

 

1.66

%

 

$        (0.42)

 

(1.50)

%

                                   

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

 

The Bank of Princeton

           

Loan/Deposit Tables

           
             
             

Loan receivable, net at March 31, 2020 and December 31, 2019 were comprised of the following:

             
             
   

March 31,

 

December 31,

   
   

2020

 

2019

   
   

(Dollars in thousands)

   

Commercial real estate

 

$        836,727

 

$        853,876

   

Commercial and industrial

 

46,402

 

43,504

   

Construction

 

213,147

 

189,789

   

Residential first-lien mortgages

 

86,631

 

89,067

   

Home equity

 

12,338

 

12,959

   

Consumer

 

220

 

794

   

     Total loans

 

1,195,465

 

1,189,989

   

Deferred fees and costs

 

(3,653)

 

(3,419)

   

Allowance for loan losses

 

(12,322)

 

(12,557)

   

     Loans, net

 

$     1,179,490

 

$     1,174,013

   
             
             

The components of deposits at September 30, 2019 and December 31, 2019 were as follows:

 
             
   

September 30,

 

December 31,

   
   

2019

 

2019

   
   

(Dollars in thousands)

   

Demand, non-interest-bearing checking

 

$        150,184

 

$        141,338

   

Demand, interest-bearing 

 

200,405

 

212,552

   

Savings

 

161,921

 

154,756

   

Money Markets

 

259,885

 

294,940

   

Time deposits

 

427,960

 

434,304

   

     Total Deposits

 

$     1,200,355

 

$     1,237,890

   
             

The Bank of Princeton

             

Consolidated Statements of Operations

             

(unaudited)

             
     

Three Months Ended

       
     

Mar 31,

       
     

2020

 

2019

 

$ Change

 

% Change

     

(Dollars in thousands)

       

Interest and Dividend Income

             
                   
 

Loans and fees

$ 14,199

 

$  13,519

 

$         680

 

5.0%

 

Available-for-Sale debt securities:

             
   

Taxable

310

 

275

 

35

 

12.7%

   

Tax-exempt

363

 

309

 

54

 

17.5%

 

Held-to-Maturity debt securities

3

 

3

 

0

 

0.0%

 

Other interest and dividend income

162

 

169

 

-7

 

-4.1%

                   
   

Total Interest and Dividends

15,037

 

14,275

 

762

 

5.3%

                   
 

Interest expense

             
                   
   

Deposits

4,532

 

4,155

 

377

 

9.1%

   

Borrowings

3

 

209

 

-206

 

-98.6%

                   
   

Total Interest Expense

4,535

 

4,364

 

171

 

3.9%

                   
   

Net Interest Income

10,502

 

9,911

 

591

 

6.0%

                   

Provision for Loan Losses

650

 

4,200

 

-3,550

 

-84.5%

                   

Net Interest Income after Provision for Loan Losses

9,852

 

5,711

 

4,141

 

72.5%

                   

Non-Interest income

             
                   
 

Gain on sale of securities available for sale,net

505

 

 

505

 

 N/A 

 

Income from bank-owned life insurance

296

 

310

 

-14

 

-4.5%

 

Fees and service charges

333

 

149

 

184

 

123.5%

 

Loan fees, including prepayment penalities

304

 

314

 

-10

 

-3.2%

 

Other 

53

 

12

 

41

 

341.7%

                   
   

Total Non-Interest Income

1,491

 

785

 

706

 

89.9%

                   

Non-Interest Expense

             
                   
 

Salaries and employee benefits

4,122

 

3,696

 

426

 

11.5%

 

Occupancy and equipment

1,202

 

938

 

264

 

28.1%

 

Professional fees

521

 

431

 

90

 

20.9%

 

Data processing and communications

803

 

571

 

232

 

40.6%

 

Federal deposit insurance

88

 

85

 

3

 

3.5%

 

Advertising and promotion

90

 

74

 

16

 

21.6%

 

Office expense

80

 

55

 

25

 

45.5%

 

Core deposit intangible

193

 

 

193

 

 N/A 

 

Other 

484

 

491

 

-7

 

-1.4%

                   
   

Total Non-Interest Expense

7,583

 

6,341

 

1,242

 

19.6%

                   

Income before income tax expense

3,760

 

155

 

3,605

 

2325.8%

                   

Income tax expense (benefit)

726

 

(74)

 

800

 

-1081.1%

                   

Net Income

$  3,034

 

$      229

 

$       2,805

 

1224.9%

                   

Net income per common share – basic

0.45

 

0.03

 

0.42

 

1400.0%

Net income per common share – diluted

0.44

 

0.03

 

0.41

 

1366.7%

                   

Weighted average shares outstanding – basic

6,766

 

6,679

 

87

 

1.3%

Weighted average shares outstanding – diluted

6,920

 

6,874

 

46

 

0.7%

The Bank of Princeton

             

Consolidated Statements of Operations (Current Quarter vs Prior Quarter)

       

(unaudited)

             
     

Quarter Ending

       
     

Mar 31,

 

Dec 31,

       
     

2020

 

2019

 

$ Change

 

% Change

     

(Dollars in thousands)

       

Interest and Dividend Income

             
                   
 

Loans and fees

$    14,199

 

$ 14,263

 

$         (64)

 

-0.4%

 

Available-for-Sale debt securities:

             
   

Taxable

310

 

315

 

(5)

 

-1.6%

   

Tax-exempt

363

 

358

 

5

 

1.4%

 

Held-to-Maturity debt securities

3

 

3

 

 

0.0%

 

Other interest and dividend income

162

 

254

 

(92)

 

-36.2%

                   
   

Total Interest and Dividends

15,037

 

15,193

 

(156)

 

-1.0%

                   
 

Interest expense

             
                   
   

Deposits

4,532

 

4,762

 

(230)

 

-4.8%

   

Borrowings

3

 

19

 

(16)

 

-84.2%

                   
   

Total Interest Expense

4,535

 

4,781

 

(246)

 

-5.1%

                   
   

Net Interest Income

10,502

 

10,412

 

90

 

0.9%

                   

Provision for Loan Losses

650

 

125

 

525

 

420.0%

                   

Net Interest Income after Provision for Loan Losses

9,852

 

10,287

 

(435)

 

-4.2%

                   

Non-Interest income

             
                   
 

Gain on sale of securities available for sale,net

505

 

27

 

478

 

1770.4%

 

Income from bank-owned life insurance

296

 

299

 

(3)

 

-1.0%

 

Fees and service charges

333

 

323

 

10

 

3.1%

 

Loan fees, including prepayment penalities

304

 

122

 

182

 

149.2%

 

Other 

53

 

23

 

30

 

130.4%

                   
   

Total Non-Interest Income

1,491

 

794

 

697

 

87.8%

                   

Non-Interest Expense

             
                   
 

Salaries and employee benefits

4,122

 

3,643

 

479

 

13.1%

 

Occupancy and equipment

1,202

 

1,219

 

(17)

 

-1.4%

 

Professional fees

521

 

340

 

181

 

53.2%

 

Data processing and communications

803

 

658

 

145

 

22.0%

 

Federal deposit insurance

88

 

 

88

 

N/A

 

Advertising and promotion

90

 

98

 

(8)

 

-8.2%

 

Office expense

80

 

152

 

(72)

 

-47.4%

 

OREO Expense  

 

4

 

(4)

 

-100.0%

 

Core deposit intangible

193

 

193

 

 

0.0%

 

Other 

484

 

568

 

(84)

 

-14.8%

   

Total Non-Interest Expense

             
     

7,583

 

6,875

 

708

 

10.3%

Income before income tax expense

             
     

3,760

 

4,206

 

(446)

 

-10.6%

Income tax expense

             
     

726

 

817

 

(91)

 

-11.1%

Net Income

             
     

$     3,034

 

$  3,389

 

$       (355)

 

-10.5%

                   

Net income per common share – basic

0.45

 

0.51

 

0.01

 

2.0%

Net income per common share – diluted

0.44

 

0.49

 

0.01

 

2.0%

                   

Weighted average shares outstanding – basic

6,766

 

6,757

 

9

 

0.1%

Weighted average shares outstanding – diluted

6,920

 

6,922

 

(2)

 

0.0%

                   

The Bank of Princeton

                     

Consolidated Average Balance Sheets

                     

(unaudited)

                     
                       
 

For the Three Months Ended

       
 

Mar 31,

       
 

2020

 

2019

       
 

Average 

 

Yield/

 

Average 

 

Yield/

       
 

balance

 

rate 

 

balance

 

rate 

 

$ Change

 

% Change

Earning assets

                     

  Loans 

$    1,197,745

 

4.77%

 

$    1,093,377

 

5.01%

 

$      104,368

 

-0.24%

                       

Securities

                     
                       

  Taxable AFS 

56,641

 

2.18%

 

45,320

 

2.42%

 

11,321

 

-0.24%

  Tax exempt AFS

56,875

 

2.55%

 

45,408

 

2.73%

 

11,467

 

-0.18%

  Held-to-maturity

221

 

5.26%

 

228

 

5.26%

 

(7)

 

0.00%

                       

Securities

113,737

 

2.37%

 

90,956

 

2.58%

 

22,781

 

-0.21%

                       

Other interest earning assets

                     

  Interest-bearing bank accounts

38,302

 

1.52%

 

18,543

 

2.75%

 

19,759

 

-1.23%

  Equities

1,281

 

5.61%

 

2,503

 

7.09%

 

(1,222)

 

-1.48%

                       

Other interest earning assets

39,583

 

1.65%

 

21,046

 

3.27%

 

18,537

 

-1.62%

                       

Total interest-earning assets

1,351,065

 

4.48%

 

1,205,379

 

4.80%

 

145,686

 

-0.32%

                       

Total non earning assets

95,402

     

65,436

           
                       

Total Assets

$    1,446,467

     

$    1,270,815

           
                       
                       

Interest-bearing liabilities

                     

Checking

$      220,018

 

1.00%

 

$      193,103

 

1.33%

 

$        26,915

 

-0.33%

Savings

157,263

 

1.16%

 

92,914

 

1.39%

 

64,349

 

-0.23%

Money Market

268,257

 

1.44%

 

275,442

 

1.73%

 

(7,185)

 

-0.29%

Certificate of Deposit

435,835

 

2.37%

 

381,895

 

2.15%

 

53,940

 

0.22%

                       

    Total interest-bearing deposits

1,081,373

 

1.69%

 

943,354

 

1.79%

 

138,019

 

-0.10%

                       

Non interest bearing deposits

143,747

     

95,114

           
                       

    Total  deposits

1,225,120

 

1.48%

 

1,038,468

 

1.62%

 

186,652

 

-0.14%

                       

Borrowings

803

 

1.64%

 

31,615

 

2.68%

 

(30,812)

 

-1.04%

    Total interest-bearing liabilities 

                     

       (excluding non interest deposits)

1,082,176

 

1.68%

 

974,969

 

1.82%

 

107,207

 

-0.14%

                       

Noninterest-bearing deposits

143,747

     

95,114

           

Total Cost of Funds

1,225,923

 

1.48%

 

1,070,083

 

1.65%

 

155,840

 

-0.17%

                       

Accrued expenses and other liabilities

22,791

     

14,134

           

Stockholders’ equity

197,753

     

186,598

           

Total liabilities and stockholders’ equity

$    1,446,467

     

$    1,270,815

           
                       
                       

Net interest spread

   

2.79%

     

2.98%

       

Net interest margin

   

3.13%

     

3.33%

       
                       

Net interest margin (FTE)*

   

3.20%

     

3.46%

       
                       

  *Includes federal and state tax effect of tax exempt

                   

       securities and loans

                     

The Bank of Princeton

                     

Consolidated Average Balance Sheets

                     

(unaudited)

                     
                       
 

For the Quarter Ended

       
           
 

Mar 2020

 

Dec 2019

       
 

Average 

 

Yield/

 

Average 

 

Yield/

       
 

balance

 

rate 

 

balance

 

rate 

 

$ Change

 

% Change

Earning assets

                     

  Loans 

$    1,197,745

 

4.77%

 

$       1,159,919

 

4.88%

 

$       37,826

 

-0.11%

                       

Securities

                     
                       

  Taxable AFS 

56,641

 

2.18%

 

54,811

 

2.30%

 

1,830

 

-0.12%

  Tax exempt AFS

56,875

 

2.65%

 

55,388

 

2.59%

 

1,487

 

0.06%

  Held-to-maturity

221

 

5.26%

 

223

 

5.26%

 

(2)

 

0.00%

                       

Securities

113,737

 

2.37%

 

110,422

 

2.45%

 

3,315

 

-0.08%

                       

Other interest earning assets

                     

  Interest-bearing bank accounts

38,302

 

1.52%

 

59,753

 

1.54%

 

(21,451)

 

-0.02%

  Equities

1,281

 

5.61%

 

1,416

 

5.90%

 

(135)

 

-0.29%

                       

Other interest earning assets

39,583

 

1.65%

 

61,169

 

1.64%

 

(21,586)

 

0.01%

                       

Total interest-earning assets

1,351,065

 

4.48%

 

1,331,510

 

4.53%

 

19,555

 

-0.05%

                       

Total non earning assets

95,402

     

95,094

           
                       

Total Assets

$    1,446,467

     

$       1,426,604

           
                       
                       

Interest-bearing liabilities

                     

Checking

$      220,018

 

1.00%

 

$         216,489

 

1.03%

 

$         3,529

 

-0.03%

Savings

157,263

 

1.16%

 

154,934

 

1.28%

 

2,329

 

-0.12%

Money Market

268,257

 

1.44%

 

265,015

 

1.67%

 

3,242

 

-0.23%

Certificate of Deposit

435,835

 

2.37%

 

425,626

 

2.41%

 

10,209

 

-0.04%

                       

    Total interest-bearing deposits

1,081,373

 

1.69%

 

1,062,064

 

1.78%

 

19,309

 

-0.09%

                       

Non interest bearing deposits

143,747

     

144,538

           
                       

    Total  deposits

1,225,120

 

1.48%

 

1,206,602

 

1.57%

 

18,518

 

-0.09%

                       

Borrowings

803

 

1.64%

 

3,795

 

2.01%

 

(2,992)

 

-0.37%

                       

    Total interest-bearing liabilities 

1,082,176

 

1.68%

 

1,065,859

 

1.78%

 

16,317

 

-0.10%

       (excluding non interest deposits)

                     
 

143,747

     

144,538

           

Noninterest-bearing deposits

1,225,923

 

1.48%

 

1,210,397

 

1.57%

 

1,204,062

 

-0.09%

Total Cost of Funds

                     
                       

Accrued expenses and other liabilities

22,791

     

21,861

           

Stockholders’ equity

197,753

     

194,346

           

Total liabilities and stockholders’ equity

$    1,446,467

     

$       1,426,604

           
                       
                       

Net interest spread

   

2.79%

     

2.75%

       

Net interest margin

   

3.13%

     

3.10%

       
                       

Net interest margin (FTE)*

   

3.20%

     

3.21%

       
                       

  *Includes federal and state tax effect of tax exempt

                   

    securities and loans

                     

The Bank of Princeton

                   

Quarterly Financial Highlights

                   

(unaudited)

                   
                     
 

2020

 

2019

 

2019

 

2019

 

2019

 
 

Mar

 

Dec

 

Sep

 

Jun

 

Mar

 
                     

     Return on average assets 

0.84%

 

0.94%

 

1.10%

 

0.84%

 

0.07%

 

     Return on average equity 

6.17%

 

6.92%

 

7.84%

 

5.99%

 

0.50%

 

     Return on average tangible equity *

6.59%

 

7.40%

 

8.26%

 

6.40%

 

0.50%

 

     Net interest margin

3.13%

 

3.10%

 

3.37%

 

3.30%

 

3.34%

 

     Net interest margin (FTE)**

3.20%

 

3.21%

 

3.46%

 

3.40%

 

3.46%

 

     Efficiency ratio – Non-GAAP ***

64.32%

 

61.35%

 

60.80%

 

65.96%

 

59.28%

 
                     

Common Stock Data

                   

     Market value at period end

$     23.25

 

$     31.49

 

$     29.06

 

$     30.00

 

$     31.73

 

     Market range:

                   

        High

$     32.25

 

$     32.12

 

$     30.20

 

$     32.75

 

$     33.33

 

        Low

$     19.09

 

$     27.34

 

$     25.92

 

$     27.42

 

$     27.58

 

     Book value per common share at period end

$     29.39

 

$     28.98

 

$     28.61

 

$     28.08

 

$     27.64

 

     Tangible book value per common share at period end ****

$     27.56

 

$     27.11

 

$     26.71

 

$     26.15

 

$     27.64

 
                     

CAPITAL RATIOS

                   

Total Capital (to risk-weighted assets)

15.32%

 

15.11%

 

15.42%

 

15.43%

 

16.53%

 

Tier 1 Capital (to risk-weighted assets)

14.36%

 

14.13%

 

14.41%

 

14.41%

 

15.53%

 

Tier 1 Capital (to average assets)

12.91%

 

12.89%

 

13.31%

 

13.15%

 

14.60%

 

     Period-end equity to assets

13.97%

 

13.47%

 

14.00%

 

13.91%

 

14.35%

 

     Period-end tangible equity to tangible assets 

13.21%

 

12.71%

 

13.19%

 

13.08%

 

14.35%

 
                     

CREDIT QUALITY DATA AT PERIOD END

                   

(Dollars in Thousands)

                   

     Net charge-offs and  (recoveries)

$       884

 

$       112

 

$           3

 

$      (110)

 

$     4,183

 

     Annualized net charge-offs (recoveries) to average loans

0.001%

 

-0.040%

 

0.001%

 

-0.040%

 

1.552%

 
                     

     Nonaccrual loans 

$     2,596

 

$     2,442

 

$     2,434

 

$     2,700

 

$     9,472

 

     Other real estate owned

 

 

 

44

 

44

 

     Total nonperforming assets 

2,596

 

2,442

 

2,434

 

2,744

 

9,516

 

     Accruing troubled debt restructurings (TDRs)

9,247

 

9,293

 

9,828

 

7,606

 

1,278

 

     Total nonperforming assets and accruing TDRs 

$   11,843

 

$   11,735

 

$   12,262

 

$   10,350

 

$   10,794

 

     Nonaccrual loans and TDRs 

 

 

 

 

 
                     

     Allowance for credit losses as a percent of:

                   

     Period-end loans      

1.03%

 

1.06%

 

1.09%

 

1.10%

 

1.07%

 

     Nonaccrual loans 

474.65%

 

514.21%

 

515.32%

 

460.04%

 

126.28%

 

     Nonperforming assets 

474.65%

 

514.21%

 

515.32%

 

452.66%

 

125.69%

 
                     

    As a percent of total loans:

                   

    Nonaccrual loans 

0.22%

 

0.21%

 

0.21%

 

0.24%

 

0.85%

 

    Accruing TDRs 

0.78%

 

0.78%

 

0.86%

 

0.68%

 

0.11%

 

    Nonaccrual loans and accruing TDRs 

0.99%

 

0.99%

 

1.07%

 

0.92%

 

0.96%

 
                     

* Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.

     

** Includes the effect of tax exempt securities and loans

     

*** The efficiency ratio is a non-GAAP measure that represents the ratio of non-interest expenses divided by the net-interest income 

   

        and non-interest income.

                   

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

See Campaign: http://thebankofprinceton.com
Contact Information:
Contact George Rapp
609.454.0718
grapp@thebankofprinceton.com

Tags:
, Wire, Wire Real Estate, United States, English

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