The Bank of Princeton Announces Third Quarter 2018 Results

The Bank of Princeton Announces Third Quarter 2018 Results

Earnings Up 17% Over Last Year

PR Newswire

PRINCETON, N.J., Oct. 25, 2018 /PRNewswire/ -- The Bank of Princeton (the "Bank") BPRN today reported unaudited results of operations and financial condition for the quarter ended September 30, 2018.  The Bank reported net income of $3.7 million, or $0.54 per diluted common share, for the third quarter of 2018, compared to net income of $3.6 million, or $0.53 per diluted common share, for the second quarter of 2018, and net income of $3.2 million, or $0.51 per diluted common share, for the third quarter of 2017.

For the nine month period ended September 30, 2018, the Bank reported net income of $10.9 million, or $1.59 per diluted common share, compared to $9.3 million, or $1.71 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 quarter-ended September 30, 2018 are as follows:

  • Net-interest income for the three month period ended September 30, 2018 increased $593 thousand, or 6.0%, over the same period in 2017.
  • Total net income for the third quarter of 2018 increased $527 thousand, or 16.6%, when compared to the same period in 2017.
  • Total net income for the nine month period ended September 30, 2018 increased $1.6 million, or 17.3%, when compared to the same period in 2017.
  • Net loans increased $90.1 million, from $970.0 million at December 31, 2017. This reflects an annualized increase of 9.3%

"The Bank of Princeton third quarter results continued to build on the momentum for 2018.  Year over year 2018 earnings increased 17% due to strong loan and deposit growth along with continued expense management.   The Bank's balance sheet and capital positon remains a source of strength allowing the bank to evaluate future organic and inorganic growth opportunities," stated Edward Dietzler, President/CEO.

Chairman Richard Gillespie states that, "The Bank continues to look for expansion opportunities within our footprint and will be opening three new branch locations within the next several months.  We are also pleased to have announced our first ever cash dividend to shareholders."

Balance Sheet Review

Total assets were $1.23 billion at September 30, 2018, an increase of $34.3 million, or 2.9%, 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 $90.1 million, primarily consisting of commercial and residential real estate loans, partially offset by a reduction of $50.9 million in cash and cash equivalents, used to fund loan growth.

Total deposits at September 30, 2018 decreased by $2.9 million, or 0.3%, when compared to December 31, 2017. Since December 31, 2017, we experienced deposit increases of $62.6 million in time deposit, $39.9 million in money markets deposits, which were more than offset by a $99.3 million decrease in demand accounts (approximately $50.0 million was related to municipal deposits).  At September 30, 2018, the Bank had borrowings of $25.0 million in short-term advances to fund its loan growth.   

Total stockholders' equity increased $11.2 million, or 6.7% when compared to the end of 2017. This increase was primarily due to earnings reported during the first nine months of 2018.  The ratio of equity to total assets was 14.5%, 0.5% higher than year-end 2017.

Asset Quality

At September 30, 2018, non-performing assets were $4.9 million, a decrease of $5.1 million or 51.3% when compared to $10.0 million at December 31, 2017.  This decrease was primarily the result of two large commercial real estate credits totaling $6.4 million that paid-off and partially offset with addition of one commercial real estate property totaling $1.7 million and one construction and development $487 thousand. Total troubled debt restructuring ("TDRs") balance totaled $2.8 million at September 30, 2018, a decline of $3.6 million from year-end 2017. All TDRs are performing to their agreed upon terms.

Review of Quarterly Financial Results

Net interest income was $10.5 million for the third quarter of 2018, compared to $10.3 million for the second quarter of 2018 and $9.9 million for the third quarter of 2017.  The increase from the previous quarter was a result of an increase in interest income of $672 thousand, or 5.0%, offset by an increase in interest expense of $398 thousand.  The net interest margin for the third quarter 2018 was 3.51%, decreasing six basis points, when compared to the second quarter of 2018. This decrease was primarily associated with an increase of 11 basis points paid on cost of funds, partially offset by an increase of three basis points earning on interest earning assets.  When comparing the same three month period ended September 30, 2018 and 2017, net interest income increased $593 thousand, which was primarily due to a higher volume of average earnings assets of approximately $157.0 million. For the nine month period ended September 30, 2018, net interest income was $30.7 million, an increase of $1.9 million, or 6.6%, over the same period in 2017, which was primarily due to a higher volume of average earning assets of approximately $151.0 million.  Total rate on interest-bearing liabilities, which includes non-interest-bearing deposits for the three month period ended September 30, 2018 and 2017 was 1.22% and 0.92%, respectively. 

The Bank did not record a provision for credit losses this quarter and recorded $665 thousand for the nine months ended September 30, 2018, compared to $850 thousand for both the three and nine months periods in 2017.  When compared to the prior quarter, the Bank recorded a $410 thousand provision for credit losses for the three months ended June 30, 2018. The primary reason for the provision in the second quarter of 2018 was due to an increase in the outstanding loans balance.  The Bank realized net recoveries of $93 thousand in this quarter compared to net charges-offs of $213 thousand in the quarter ended June 30, 2018. The ratio of allowance for credit losses to period end loans was 1.15% at September 30, 2018, compared to 1.20% at December 31, 2017 and 1.19% at September 30, 2017, which reflects management's assessment of the credit quality in the loan portfolio.

Total non-interest income for the third quarter of 2018 decreased $498 thousand, to $649 thousand, when compared to the same period in 2017. This decrease was primarily due to a decrease in income from fees and service charges, primarily due to a lower level of fees generated on loans earned between the two periods.  The increase in non-interest income from the previous quarter was $22 thousand primarily due to loan fees collected, partially offset by a reduction in service charges collected during the current quarter.  For the nine month period ended September 30, 2018, non-interest income increased $32 thousand, or 1.6%, primarily due to increases in bank-owned life insurance, partially offset due to a lower level of fees generated on loans.

Total non-interest expense for the third quarter of 2018 increased $813 thousand, or 13.9%, when compared to the same period in 2017.  This increase was primarily due a one-time charge the Bank recorded against an OREO property, along with increases in salaries and employee benefit expense and advertising expense, partially offset by a reduction in professional fees, FDIC deposit insurance and occupancy expense.  When comparing September 30, 2018 to the prior linked quarter, non-interest expense increased $385 thousand, or 6.1%, primarily due a one-time charge the Bank recorded against an OREO property, partially offset by a decrease in salaries and benefits expense. For the nine month period ended September 30, 2018, non-operating expense was $19.0 million, compared to $17.8 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 September 30, 2018, the Bank incurred income tax expense of $830 thousand, resulting in an effective tax rate of 18.3%, compared to $579 thousand, resulting in an effective tax rate of 13.7%, for the three month period ended June 30, 2018, and compared to $1.2 million, resulting in an effective tax rate of 27.8%, for the three month period ended September 30, 2017. The current effective tax yield for the three and nine months ended September 30, 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 nine months ended September 30, 2018 and three months ended June 30, 2018 were positively impacted by recording a tax benefit related to the exercise of warrants and stock options.  The Bank is continuing to evaluate the impact of recent New Jersey tax legislation, which increases Corporation Business Tax rate and the Bank does not anticipate having a material impact. 

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 ten branches in New Jersey, including three in Princeton and others in 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)



















































Sept 30,

2018 

vs 

Dec 31,

2017



Sept 30,

2018 

vs 

Dec 31,

2017



Sept 30,

2018 

vs 

Sept 30,

2017



Sept 30,

2018 

vs 

Sept 30,

2017





Sept 30, 

2018



Dec 31, 

2017



Sept 30, 

2017





$

Change



%

 Change



$

Change



%

 Change





































ASSETS













Cash and cash equivalents



$     31,918



$     82,822



$     27,182





$     (50,904)



(61.46)

%



$        4,736



17.42

%

Securities available for sale taxable



48,558



53,770



57,472





(5,212)



(9.69)





(8,914)



(15.51)



Securities available for sale tax exempt



46,249



47,974



43,465





(1,725)



(3.60)





2,784



6.41



Securities held to maturity



230



264



265





(34)



(12.88)





(35)



(13.21)



Loans receivable, net of deferred



1,060,025



969,947



945,549





90,078



9.29





114,476



12.11



Allowance for loan losses



(12,139)



(11,591)



(11,260)





(548)



4.73





(879)



7.81



Other assets



60,071



57,405



56,278





2,666



4.64





3,793



6.74



TOTAL ASSETS



$ 1,234,912



$ 1,200,591



$ 1,118,951





$      34,321



2.86

%



$     115,961



10.36

%









































































LIABILITIES



































Non interest checking



$     98,538



$   100,633



$   111,885





$       (2,095)



(2.08)

%



$     (13,347)



(11.93)

%

Interest checking



184,915



282,076



195,070





(97,161)



(34.44)





(10,155)



(5.21)



Savings



99,391



105,475



110,932





(6,084)



(5.77)





(11,541)



(10.40)



Money market



286,751



246,898



259,078





39,853



16.14





27,673



10.68



Time deposits over $250,000 



161,423



102,586



89,943





58,837



57.35





71,480



79.47



Other time deposits



194,752



191,000



181,168





3,752



1.96





13,584



7.50



Total Deposits



1,025,770



1,028,668



948,076





(2,898)



(0.28)





77,694



8.19



Borrowings



25,000



-



-





25,000



-





25,000



-



Other liabilities



4,633



3,628



4,111





1,005



27.70





522



12.70



    TOTAL LIABILITIES



1,055,403



1,032,296



952,187





23,107



2.24

%



103,216



10.84

%





































STOCKHOLDERS' EQUITY



































 Common stock 



33,236



32,756



32,740





480



1.47





496



1.51



 Paid-in capital 



77,664



76,350



76,301





1,314



1.72





1,363



1.79



 Retained earnings 



70,042



59,122



57,415





10,920



18.47





12,627



21.99



 Accumulated other comprehensive (loss) income 



(1,433)



67



308





(1,500)



(2,238.81)





(1,741)



(565.26)



     TOTAL STOCKHOLDERS' EQUITY 



179,509



168,295



166,764





11,214



6.66

%



12,745



7.64

%





































TOTAL LIABILITIES 



































     AND STOCKHOLDERS' EQUITY



$ 1,234,912



$ 1,200,591



$ 1,118,951





$      34,321



2.86

%



$     115,961



10.36

%





































Book value per common share



$      27.01



$      25.69



$      25.47





$          1.32



5.12

%



$          1.54



6.04

%

Tangible book value per common share1



$      27.01



$      25.69



$      25.46





$          1.32



5.12

%



$          1.54



6.05

%





































1Reconciliation of non-GAAP tangible 



































     book value per common share:



































Total stockholders' equity



$   179,509



$   168,295



$   166,764























Intangible assets



-



-



(23)























Tangible stockholders' equity



$   179,509



$   168,295



$   166,741



























































Common shares outstanding



6,647,209



6,551,229



6,548,045



























































Tangible book value per common share



$      27.01



$      25.69



$      25.46























 

 

The Bank of Princeton









Loan/Deposit Tables









September 30, 2018



















Loan receivable, net at September 30, 2018 were comprised of the following:

























September 30,



December 31,





2018



2017





(Dollars in thousands)

Commercial real estate



$        706,131



$        634,768

Commercial and industrial



64,163



59,636

Construction



227,943



283,051

Residential first-lien mortgages



104,587



73,505

Home equity



17,737



20,551

Consumer



385



447

     Total loans



1,120,946



1,071,958

Undisbursed portion of loans-in-process



(58,691)



(99,676)

Deferred fees and costs



(2,230)



(2,335)

Allowance for loan losses



(12,139)



(11,591)

     Loans, net



$     1,047,886



$        958,356





















The components of deposits at June 30, 2018 were as follows:



















September 30,



December 31,





2018



2017





(Dollars in thousands)

Demand, non-interest-bearing checking



$          98,538



$        100,633

Demand, interest-bearing 



184,915



282,076

Savings



99,391



105,475

Money Markets



286,751



246,898

Time deposits



356,175



293,586

     Total Deposits



$     1,025,770



$     1,028,668

 

 

The Bank of Princeton















Consolidated Statements of Operations (Current Quarter vs Prior Quarter)









(unaudited)





















Quarter Ending















Sep 30,



Jun 30,















2018



2018



$ Change



% Change







(Dollars in thousands)









Interest and Dividend Income





































Loans and fees

$    13,314



$ 12,684



$        630



5.0%



Available-for-Sale debt securities:



















Taxable

297



300



(3)



-1.0%





Tax-exempt

323



334



(11)



-3.3%



Held-to-Maturity debt securities

3



3



-



0.0%



Other interest and dividend income

192



136



56



41.2%

























Total Interest and Dividends

14,129



13,457



672



5.0%























Interest expense







































Deposits

3,476



3,074



402



13.1%





Borrowings

112



116



(4)



-3.4%

























Total Interest Expense

3,588



3,190



398



12.5%

























Net Interest Income

10,541



10,267



274



2.7%





















Provision for Loan Losses

-



410



(410)



-100.0%





















Net Interest Income after Provision for Loan Losses

10,541



9,857



684



6.9%





















Non-Interest income





































Gain on sale of securities available for sale,net

-



1



(1)



-100.0%



Income from bank-owned life insurance

304



306



(2)



-0.7%



Fees and service charges

145



158



(13)



-8.2%



Loan fees, including prepayment penalities

179



149



30



20.1%



Other 

20



13



7



53.8%

























Total Non-Interest Income

648



627



21



3.3%





















Non-Interest Expense





































Salaries and employee benefits

3,507



3,682



(175)



-4.8%



Occupancy and equipment

839



832



7



0.8%



Professional fees

485



508



(23)



-4.5%



Data processing and communications

534



524



10



1.9%



Federal deposit insurance

84



88



(4)



-4.5%



Advertising and promotion

128



98



30



30.6%



Office expense

72



68



4



5.9%



OREO Expense  

1



1



-



0.0%



Loss on sale of other real estate owned

540



-



540



0.0%



Other 

465



469



(4)



-0.9%





Total Non-Interest Expense





















6,655



6,270



385



6.1%

Income before income tax expense/(benefit)





















4,534



4,214



320



7.6%

Income tax expense/(benefit)





















830



579



251



43.4%

Net Income





















$     3,704



$  3,635



$          69



1.9%





















Net income per common share - basic

0.56



0.55



0.01



1.8%

Net income per common share - diluted

0.54



0.53



0.01



1.9%





















Weighted average shares outstanding - basic

6,644



6,640



4



0.1%

Weighted average shares outstanding - diluted

6,903



6,905



(2)



0.0%

 

 

The Bank of Princeton















Consolidated Statements of Operations















(unaudited)





















Three Months Ended















Sept 30,















2018



2017



$ Change



% Change







(Dollars in thousands)









Interest and Dividend Income





































Loans and fees

$ 13,314



$  11,517



$       1,797



15.6%



Available-for-Sale debt securities:



















Taxable

297



291



6



2.1%





Tax-exempt

323



292



31



10.6%



Held-to-Maturity debt securities

3



4



-1



-25.0%



Other interest and dividend income

192



125



67



53.6%

























Total Interest and Dividends

14,129



12,229



1,900



15.5%























Interest expense







































Deposits

3,476



2,210



1,266



57.3%





Borrowings

112



71



41



57.7%

























Total Interest Expense

3,588



2,281



1,307



57.3%

























Net Interest Income

10,541



9,948



593



6.0%





















Provision for Loan Losses

-



850



-850



-100.0%





















Net Interest Income after Provision for Loan Losses

10,541



9,098



1,443



15.9%





















Non-Interest income





































Gain on sale of securities available for sale,net

-



-



-



-



Income from bank-owned life insurance

305



245



60



24.5%



Fees and service charges

145



160



-15



-9.4%



Loan fees, including prepayment penalities

179



735



-556



-75.6%



Other 

20



7



13



185.7%

























Total Non-Interest Income

649



1,147



-498



-43.4%





















Non-Interest Expense





































Salaries and employee benefits

3,507



3,178



329



10.4%



Occupancy and equipment

839



874



-35



-4.0%



Professional fees

485



548



-63



-11.5%



Data processing and communications

534



501



33



6.6%



Federal deposit insurance

84



191



-107



-56.0%



Advertising and promotion

128



87



41



47.1%



Office expense

72



72



0



0.0%



OREO Expense  

1



2



-1



-50.0%



Loss on sale of other real estate owned

540



-



540



0.0%



Other 

466



389



77



19.8%

























Total Non-Interest Expense

6,656



5,842



814



13.9%





















Income before income tax expense/(benefit)

4,534



4,403



131



3.0%





















Income tax expense/(benefit)

830



1,225



-395



-32.2%





















Net Income

$  3,704



$   3,178



$         526



16.6%





















Net income per common share - basic

0.56



0.54



0.02



3.7%

Net income per common share - diluted

0.54



0.51



0.03



5.9%





















Weighted average shares outstanding - basic

6,644



5,909



735



12.4%

Weighted average shares outstanding - diluted

6,903



6,204



699



11.3%

 

 

The Bank of Princeton















Consolidated Statements of Operations















(unaudited)





















Nine Months Ended















Sept 30,















2018



2017



$ Change



% Change







(Dollars in thousands)









Interest and Dividend Income





































Loans and fees

$ 37,648



$  33,037



$       4,611



14.0%



Available-for-Sale debt securities:



















Taxable

891



866



25



2.9%





Tax-exempt

992



946



46



4.9%



Held-to-Maturity debt securities

10



12



(2)



-16.7%



Other interest and dividend income

637



321



316



98.4%

























Total Interest and Dividends

40,178



35,182



4,996



14.2%























Interest expense







































Deposits

9,233



5,865



3,368



57.4%





Borrowings

242



528



(286)



-54.2%

























Total Interest Expense

9,475



6,393



3,082



48.2%

























Net Interest Income

30,703



28,789



1,914



6.6%





















Provision for Loan Losses

665



850



(185)



-21.8%





















Net Interest Income after Provision for Loan Losses

30,038



27,939



2,099



7.5%





















Non-Interest income





































Gain on sale of securities available for sale,net

1



14



(13)



-92.9%



Income from bank-owned life insurance

912



598



314



52.5%



Fees and service charges

463



463



-



0.0%



Loan fees, including prepayment penalities

636



928



(292)



-31.5%



Gain on sale of premise and equipment

-



3



(3)



-100.0%



Other 

49



24



25



104.2%

























Total Non-Interest Income

2,061



2,030



31



1.5%





















Non-Interest Expense





































Salaries and employee benefits

10,876



9,969



907



9.1%



Occupancy and equipment

2,529



2,587



(58)



-2.2%



Professional fees

1,412



1,653



(241)



-14.6%



Data processing and communications

1,582



1,459



123



8.4%



Federal deposit insurance

260



527



(267)



-50.7%



Advertising and promotion

287



202



85



42.1%



Office expense

206



196



10



5.1%



Other real estate owned expense  

2



6



(4)



-66.7%



Loss on sale of other real estate owned

540



-



540



0.0%



Other 

1,286



1,242



44



3.5%

























Total Non-Interest Expense

18,980



17,841



1,139



6.4%





















Income before income tax expense/(benefit)

13,119



12,128



991



8.2%





















Income tax expense/(benefit)

2,199



2,821



(622)



-22.0%





















Net Income

$ 10,920



$   9,307



$       1,613



17.3%





















Net income per common share - basic

1.65



1.81



(0.16)



-8.8%

Net income per common share - diluted

1.59



1.71



(0.12)



-7.0%





















Weighted average shares outstanding - basic

6,620



5,145



1,475



28.7%

Weighted average shares outstanding - diluted

6,878



5,431



1,447



26.6%

 

 

The Bank of Princeton























Consolidated Average Balance Sheets























(unaudited)

















































For the Quarter Ended























Sept 2018



June 2018











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change

Earning assets























  Loans 

$    1,059,316



4.99%



$    1,024,940



4.96%



$       34,376



0.03%

























Securities















































  Taxable AFS 

50,661



2.34%



53,867



2.23%



(3,206)



0.11%

  Tax exempt AFS

46,788



2.76%



48,443



2.75%



(1,655)



0.01%

  Held-to-maturity

250



5.03%



263



5.22%



(13)



-0.19%

























Securities

97,699



2.55%



102,573



2.48%



(4,874)



0.07%

























Other interest earning assets























  Interest-bearing bank accounts

30,938



2.05%



23,936



1.74%



7,002



0.31%

  Equities

1,986



6.41%



2,048



6.22%



(62)



0.19%

























Other interest earning assets

32,924



2.31%



25,984



2.10%



6,940



0.21%

























Total interest-earning assets

1,189,939



4.71%



1,153,497



4.68%



36,442



0.03%

























Total non earning assets

54,916







57,581





































Total Assets

$    1,244,855







$    1,211,078





























































Interest-bearing liabilities























Checking

$      200,635



0.85%



$      203,771



0.83%



(3,136)



0.02%

Savings

100,496



1.22%



105,212



1.16%



(4,716)



0.06%

Money Market

284,651



1.48%



273,888



1.37%



10,763



0.11%

Certificate of Deposit

354,563



1.87%



327,284



1.73%



27,279



0.14%

























    Total interest-bearing deposits

940,345



1.47%



910,155



1.35%



30,190



0.12%

























Non interest bearing deposits

101,923







101,043





































    Total  deposits

1,042,268



1.32%



1,011,198



1.22%



31,070



0.10%

























Borrowings

20,128



2.22%



21,635



2.15%



(1,507)



0.07%

























    Total interest-bearing liabilities 

960,473



1.48%



931,790



1.37%



28,683



0.11%

       (excluding non interest deposits)















































Noninterest-bearing deposits

101,923







101,043













Total Cost of Funds

1,062,396



1.34%



1,032,833



1.24%



29,563



0.10%

























Accrued expenses and other liabilities

4,543







4,418













Stockholders' equity

177,916







173,827













Total liabilities and stockholders' equity

$    1,244,855







$    1,211,078





























































Net interest spread





3.23%







3.31%









Net interest margin





3.51%







3.57%

































Net interest margin (FTE)*





3.67%







3.70%

































  *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











Sept 30,











2018



2017











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change

Earning assets























  Loans 

$    1,059,316



4.99%



$      903,622



5.06%



$      155,694



-0.07%

























Securities















































  Taxable AFS 

50,661



2.34%



57,871



2.02%



(7,210)



0.32%

  Tax exempt AFS

46,788



2.76%



43,990



2.65%



2,798



0.11%

  Held-to-maturity

250



5.03%



292



5.02%



(42)



0.01%

























Securities

97,699



2.55%



102,153



2.30%



(4,454)



0.25%

























Other interest earning assets























  Interest-bearing bank accounts

30,938



2.05%



25,143



1.31%



5,795



0.74%

  Equities

1,986



6.41%



1,991



8.32%



(5)



-1.91%

























Other interest earning assets

32,924



2.31%



27,134



1.83%



5,790



0.48%

























Total interest-earning assets

1,189,939



4.71%



1,032,909



4.70%



157,030



0.01%

























Total non earning assets

54,916







50,032





































Total Assets

$    1,244,855







$    1,082,941





























































Interest-bearing liabilities























Checking

$      200,635



0.85%



$      179,382



0.74%



21,253



0.11%

Savings

100,496



1.22%



111,489



0.89%



(10,993)



0.33%

Money Market

284,651



1.48%



261,240



1.04%



23,411



0.44%

Certificate of Deposit

354,563



1.87%



250,499



1.48%



104,064



0.39%

























    Total interest-bearing deposits

940,345



1.47%



802,610



1.09%



137,735



0.38%

























Non interest bearing deposits

101,923







108,839





































    Total  deposits

1,042,268



1.32%



911,449



0.96%



130,819



0.36%

























Borrowings

20,128



2.22%



21,217



1.34%



(1,089)



0.88%

    Total interest-bearing liabilities 























       (excluding non interest deposits)

960,473



1.48%



823,827



1.10%



136,646



0.38%

























Noninterest-bearing deposits

101,923







108,839













Total Cost of Funds

1,062,396



1.34%



932,666



0.97%



129,730



0.37%

























Accrued expenses and other liabilities

4,543







3,597













Stockholders' equity

177,916







146,678













Total liabilities and stockholders' equity

$    1,244,855







$    1,082,941





























































Net interest spread





3.23%







3.60%









Net interest margin





3.51%







3.82%

































Net interest margin (FTE)*





3.67%







3.99%

































  *Includes federal and state tax effect of tax exempt





















       securities and loans























 

 

The Bank of Princeton























Consolidated Average Balance Sheets























(unaudited)

















































For the Nine Months Ended











Sept 30,











2018



2017











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change

Earning assets























  Loans 

$    1,015,900



4.95%



$      883,342



5.00%



$   132,558



-0.05%

























Securities















































  Taxable AFS 

52,822



2.25%



57,974



1.99%



(5,152)



0.26%

  Tax exempt AFS

48,000



2.76%



46,601



2.71%



1,399



0.05%

  Held-to-maturity

259



5.16%



315



5.05%



(56)



0.11%

























Securities

101,081



2.50%



104,890



2.32%



(3,809)



0.18%

























Other interest earning assets























  Interest-bearing bank accounts

42,804



1.73%



18,134



1.10%



24,670



0.63%

  Equities

1,726



6.52%



4,141



5.53%



(2,415)



0.99%

























Other interest earning assets

44,530



1.91%



22,275



1.92%



22,255



-0.01%

























Total interest-earning assets

1,161,511



4.62%



1,010,507



4.65%



151,004



-0.03%

























Total non earning assets

57,737







42,542





































Total Assets

$    1,219,248







$    1,053,049





























































Interest-bearing liabilities























Checking

$      228,229



0.83%



$      161,772



0.69%



66,457



0.14%

Savings

104,210



1.13%



107,329



0.85%



(3,119)



0.28%

Money Market

269,224



1.36%



268,811



0.96%



413



0.40%

Certificate of Deposit

324,842



1.73%



221,839



1.45%



103,003



0.28%

























    Total interest-bearing deposits

926,505



1.33%



759,751



1.03%



166,754



0.30%

























Non interest bearing deposits

99,485







101,216





































    Total  deposits

1,025,990



1.20%



860,967



0.91%



165,023



0.29%

























Borrowings

15,128



2.14%



67,513



1.05%



(52,385)



1.09%

    Total interest-bearing liabilities 























       (excluding non interest deposits)

941,633



1.35%



827,264



1.03%



114,369



0.32%

























Noninterest-bearing deposits

99,485







101,216













Total Cost of Funds

1,041,118



1.22%



928,480



0.92%



112,638



0.30%

























Accrued expenses and other liabilities

4,140







3,815













Stockholders' equity

173,990







120,754













Total liabilities and stockholders' equity

$    1,219,248







$    1,053,049





































Net interest spread





3.28%







3.62%









Net interest margin





3.53%







3.81%

































Net interest margin (FTE)*





3.69%







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



2017



2017



Sep



Jun



Mar



Dec



Sep









































     Return on average assets 

1.18%



1.21%



1.21%



0.59%



1.17%

     Return on average equity 

8.26%



8.39%



8.54%



4.02%



8.60%

     Return on average tangible equity (1)                  

8.26%



8.39%



8.54%



4.02%



8.60%

     Net interest margin

3.57%



3.57%



3.52%



3.79%



3.82%

     Net interest margin (FTE)*

3.67%



3.70%



3.65%



3.92%



3.96%

     Efficiency ratio - Non-GAAP 

59.47%



57.55%



56.70%



49.40%



52.67%





















Common Stock Data



















     Market value at period end

30.54



33.25



34.50



34.34



31.99

     Market range:



















        High

35.45



34.90



34.69



34.95



33.49

        Low

30.54



32.21



31.50



31.10



29.43

     Book value per common share at period end

27.01



26.50



26.00



25.69



25.47

     Tangible book value per common share at period end (1)

27.01



26.50



26.00



25.69



25.46





















CAPITAL RATIOS



















Total Capital (to risk-weighted assets)

16.79%



16.67%



17.04%



17.12%



17.15%

Tier 1 Capital (to risk-weighted assets)

15.73%



15.61%



15.94%



16.01%



16.06%

Tierr 1 Capital (to average assets)

14.47%



14.55%



14.30%



14.64%



15.29%

     Period-end equity to assets

14.54%



14.18%



14.50%



14.02%



14.90%

     Period-end tangible equity to tangible assets (1)

14.54%



14.18%



14.50%



14.02%



14.90%





















CREDIT QUALITY DATA AT PERIOD END



















(Dollars in Thousands)



















     Net charge-offs and  (recoveries)

$         42



$       213



$         (3)



$     2,584



$       235





















     Annualized net charge-offs to average loans

0.016%



-0.083%



-0.001%



1.08%



0.10%





















     Nonaccrual loans 

4,832



8,463



10,832



9,199



11,240

     Other real estate owned

44



802



802



802



179

     Total nonperforming assets 

4,876



9,265



11,634



10,001



11,419





















     Accruing troubled debt restructurings (TDRs) 

1,300



1,309



4,721



4,796



4,846





















     Total nonperforming assets and accruing TDRs 

$     6,176



$   10,574



$   16,355



$   14,797



$   16,265





















     Allowance for credit losses as a percent of:



















     Period-end loans      

1.15%



1.13%



1.19%



1.20%



1.19%

     Nonaccrual loans 

39.81%



70.26%



91.42%



79.36%



99.82%

     Nonperforming assets 

40.17%



76.91%



98.19%



86.28%



101.41%





















    As a percent of total loans:



















    Nonaccrual loans 

0.46%



0.79%



1.08%



0.95%



1.19%

    Accruing TDRs 

0.12%



0.12%



0.47%



0.49%



0.51%

    Nonaccrual loans and accruing TDRs 

0.58%



0.87%



1.64%



1.53%



1.72%





























































*Includes the effect of tax exempt securities and loans



















 

Contact George Rapp

609.454.0718

grapp@thebankofprinceton.com

 

Cision View original content:http://www.prnewswire.com/news-releases/the-bank-of-princeton-announces-third-quarter-2018-results-300738288.html

SOURCE The Bank of Princeton

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