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

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

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

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

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

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

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

Balance Sheet Review

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

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

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

Asset Quality

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

Review of Quarterly Financial Results

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

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

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

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

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

About The Bank of Princeton

The Bank of Princeton is a community bank founded in 2007.  The Bank is a New Jersey state-chartered commercial bank with eleven branches in New Jersey, including three in Princeton and others in Cream Ridge, Hamilton, Pennington, Montgomery, Monroe, Lambertville, Lawrenceville, and New Brunswick.  There are also three branches in the Philadelphia, Pennsylvania area, operating as MoreBank, a division of The Bank of Princeton. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation ("FDIC").

Forward-Looking Statements

The Bank of Princeton may from time to time make written or oral "forward-looking statements," including statements contained in the Bank's filings with the FDIC, in its reports to stockholders and in other communications by the Bank (including this press release), which are made in good faith by the Bank pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Bank's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Bank's control). The following factors, among others, could cause the Bank's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Bank; technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Bank at managing the risks involved in the foregoing.

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

 

 

The Bank of Princeton

Summary Statements of Financial Condition Data

(unaudited)

(dollars in thousands, except per share data)











































Dec 31,

2018

vs

Dec 31,

2017



Dec 31,

2018

vs

Dec 31,

2017







Dec 31, 

2018



Dec 31, 

2017







$

Change



%

 Change





























ASSETS





Cash and cash equivalents



$     26,384



$     82,822







$     (56,438)



(68.14)

%

Securities available for sale taxable



46,472



53,770







(7,298)



(13.57)





Securities available for sale tax exempt



45,209



47,974







(2,765)



(5.76)





Securities held to maturity



228



264







(36)



(13.64)





Loans receivable, net of deferred



1,081,179



969,947







111,232



11.47





Allowance for loan losses



(11,944)



(11,591)







(353)



3.05





Other assets



64,036



57,405







6,631



11.55





TOTAL ASSETS



$ 1,251,564



$ 1,200,591







$      50,973



4.25

%























































LIABILITIES

























Non interest checking



$   102,678



$   100,633







2,045



2.03

%

Interest checking



151,042



282,076







(131,034)



(46.45)





Savings



94,789



105,475







(10,686)



(10.13)





Money market



286,457



246,897







39,560



16.02





Time deposits over $250,000 



104,104



102,586







1,518



1.48





Other time deposits



268,177



191,001







77,176



40.41





Total Deposits



1,007,247



1,028,668







(21,421)



(2.08)





Borrowings



55,400



-







55,400



-





Other liabilities



4,599



3,628







971



26.76





    TOTAL LIABILITIES



1,067,246



1,032,296







34,950



3.39

%



























STOCKHOLDERS' EQUITY

























 Common stock 



33,278



32,756







522



1.59





 Paid-in capital 



77,895



76,350







1,545



2.02





 Retained earnings 



73,630



59,122







14,508



24.54





 Accumulated other comprehensive (loss) income 



(485)



67







(552)



(823.88)





     TOTAL STOCKHOLDERS' EQUITY 



184,318



168,295







16,023



9.52

%



























TOTAL LIABILITIES 

























     AND STOCKHOLDERS' EQUITY



$ 1,251,564



$ 1,200,591







$      50,973



4.25

%





























Book value per common share



$      27.69



$      25.69







$          2.00



7.79

%

 

 



The Bank of Princeton













Loan/Deposit Tables













December 31, 2018



























Loan receivable, net at December 31, 2018 were comprised of the following:





































December 31,



December 31,









2018



2017









(Dollars in thousands)





Commercial real estate



$        729,336



$        634,768





Commercial and industrial



71,838



59,636





Construction



235,361



283,051





Residential first-lien mortgages



102,008



73,505





Home equity



17,048



20,551





Consumer



1,987



447





     Total loans



1,157,578



1,071,958





Undisbursed portion of loans-in-process



(74,086)



(99,676)





Deferred fees and costs



(2,313)



(2,335)





Allowance for loan losses



(11,944)



(11,591)





     Loans, net



$     1,069,235



$        958,356

































The components of deposits at December 31, 2018 were as follows:

























December 31,



December 31,









2018



2017









(Dollars in thousands)





Demand, non-interest-bearing checking



$        102,678



$        100,633





Demand, interest-bearing 



151,042



282,076





Savings



94,789



105,475





Money Markets



286,457



246,898





Time deposits



372,281



293,586





     Total Deposits



$     1,007,247



$     1,028,668

















 

 

The Bank of Princeton















Consolidated Statements of Operations (Current Quarter vs Prior Quarter)









(unaudited)





















Quarter Ending















Dec 31,



Sep 30,















2018



2018



$ Change



% Change







(Dollars in thousands)









Interest and Dividend Income





































Loans and fees

$    13,437



$ 13,314



$        123



0.9%



Available-for-Sale debt securities:



















Taxable

285



297



(12)



-4.0%





Tax-exempt

314



323



(9)



-2.8%



Held-to-Maturity debt securities

3



3



-



0.0%



Other interest and dividend income

148



192



(44)



-22.9%

























Total Interest and Dividends

14,187



14,129



58



0.4%























Interest expense







































Deposits

3,729



3,476



253



7.3%





Borrowings

152



112



40



35.7%

























Total Interest Expense

3,881



3,588



293



8.2%

























Net Interest Income

10,306



10,541



(235)



-2.2%





















Provision for Loan Losses

-



-



-



-





















Net Interest Income after Provision for Loan Losses

10,306



10,541



(235)



-2.2%





















Non-Interest income





































Gain on sale of securities available for sale,net

-



-



-



-



Income from bank-owned life insurance

313



304



9



3.0%



Fees and service charges

150



145



5



3.4%



Loan fees, including prepayment penalities

119



179



(60)



-33.5%



Other 

19



20



(1)



-5.0%

























Total Non-Interest Income

601



648



(47)



-7.3%





















Non-Interest Expense





































Salaries and employee benefits

3,654



3,507



147



4.2%



Occupancy and equipment

858



839



19



2.3%



Professional fees

527



485



42



8.7%



Data processing and communications

519



534



(15)



-2.8%



Federal deposit insurance

78



84



(6)



-7.1%



Advertising and promotion

134



128



6



4.7%



Office expense

61



72



(11)



-15.3%



OREO Expense  

-



1



(1)



-100.0%



Loss on sale of other real estate owned

-



540



(540)



-100.0%



Other 

487



465



22



4.7%





Total Non-Interest Expense





















6,318



6,655



(337)



-5.1%

Income before income tax expense/(benefit)





















4,589



4,534



55



1.2%

Income tax expense/(benefit)





















801



830



(29)



-3.5%

Net Income





















$     3,788



$  3,704



$          84



2.3%





















Net income per common share - basic

0.57



0.56



0.01



1.8%

Net income per common share - diluted

0.55



0.54



0.01



1.9%





















Weighted average shares outstanding - basic

6,650



6,644



6



0.1%

Weighted average shares outstanding - diluted

6,868



6,903



(35)



-0.5%

 

 

The Bank of Princeton















Consolidated Statements of Operations















(unaudited)





















Three Months Ended















December 31,















2018



2017



$ Change



% Change







(Dollars in thousands)









Interest and Dividend Income





































Loans and fees

$ 13,437



$  12,082



$       1,355



11.2%



Available-for-Sale debt securities:



















Taxable

285



290



-5



-1.7%





Tax-exempt

314



295



19



6.4%



Held-to-Maturity debt securities

3



3



0



0.0%



Other interest and dividend income

148



120



28



23.3%

























Total Interest and Dividends

14,187



12,790



1,397



10.9%























Interest expense







































Deposits

3,729



2,432



1,297



53.3%





Borrowings

152



15



137



913.3%

























Total Interest Expense

3,881



2,447



1,434



58.6%

























Net Interest Income

10,306



10,343



-37



-0.4%





















Provision for Loan Losses

-



2,915



-2,915



-100.0%





















Net Interest Income after Provision for Loan Losses

10,306



7,428



2,878



38.7%





















Non-Interest income





































Gain on sale of securities available for sale,net

-



-



-



-



Income from bank-owned life insurance

313



298



15



5.0%



Fees and service charges

150



160



-10



-6.3%



Loan fees, including prepayment penalities

119



327



-208



-63.6%



Other 

19



15



4



26.7%

























Total Non-Interest Income

601



800



-199



-24.9%





















Non-Interest Expense





































Salaries and employee benefits

3,654



3,073



581



18.9%



Occupancy and equipment

858



874



-16



-1.8%



Professional fees

527



481



46



9.6%



Data processing and communications

519



511



8



1.6%



Federal deposit insurance

78



(19)



97



-510.5%



Advertising and promotion

134



58



76



131.0%



Office expense

61



70



-9



-12.9%



OREO Expense  

-



2



-2



-100.0%



Loss on sale of other real estate owned

-



-



0



0.0%



Other 

487



443



44



9.9%

























Total Non-Interest Expense

6,318



5,493



825



15.0%





















Income before income tax expense/(benefit)

4,589



2,735



1,854



67.8%





















Income tax expense/(benefit)

801



1,028



-227



-22.1%





















Net Income

$  3,788



$   1,707



$       2,081



121.9%





















Net income per common share - basic

0.57



0.26



0.31



119.2%

Net income per common share - diluted

0.55



0.25



0.30



120.0%





















Weighted average shares outstanding - basic

6,650



6,550



100



1.5%

Weighted average shares outstanding - diluted

6,868



6,859



9



0.1%

 

 

The Bank of Princeton















Consolidated Statements of Operations















(unaudited)





















Twelve Months Ended















December 31,















2018



2017



$ Change



% Change







(Dollars in thousands)









Interest and Dividend Income





































Loans and fees

$ 51,085



$  45,119



$       5,966



13.2%



Available-for-Sale debt securities:



















Taxable

1,176



1,156



20



1.7%





Tax-exempt

1,306



1,241



65



5.2%



Held-to-Maturity debt securities

13



15



(2)



-13.3%



Other interest and dividend income

785



441



344



78.0%

























Total Interest and Dividends

54,365



47,972



6,393



13.3%























Interest expense







































Deposits

12,962



8,297



4,665



56.2%





Borrowings

394



543



(149)



-27.4%

























Total Interest Expense

13,356



8,840



4,516



51.1%

























Net Interest Income

41,009



39,132



1,877



4.8%





















Provision for Loan Losses

665



3,765



(3,100)



-82.3%





















Net Interest Income after Provision for Loan Losses

40,344



35,367



4,977



14.1%





















Non-Interest income





































Gain on sale of securities available for sale,net

1



14



(13)



-92.9%



Income from bank-owned life insurance

1,225



896



329



36.7%



Fees and service charges

623



629



(6)



-1.0%



Loan fees, including prepayment penalities

755



1,253



(498)



-39.7%



Other 

58



38



20



52.6%

























Total Non-Interest Income

2,662



2,830



(168)



-5.9%





















Non-Interest Expense





































Salaries and employee benefits

14,530



13,042



1,488



11.4%



Occupancy and equipment

3,387



3,461



(74)



-2.1%



Professional fees

1,939



2,134



(195)



-9.1%



Data processing and communications

2,101



1,970



131



6.6%



Federal deposit insurance

338



508



(170)



-33.5%



Advertising and promotion

421



260



161



61.9%



Office expense

267



266



1



0.4%



Other real estate owned expense  

2



8



(6)



-75.0%



Loss on sale of other real estate owned

540



-



540



100.0%



Other 

1,773



1,685



88



5.2%

























Total Non-Interest Expense

25,298



23,334



1,964



8.4%





















Income before income tax expense/(benefit)

17,708



14,863



2,845



19.1%





















Income tax expense/(benefit)

3,000



3,849



(849)



-22.1%





















Net Income

$ 14,708



$  11,014



$       3,694



33.5%





















Net income per common share - basic

2.22



2.00



0.22



11.0%

Net income per common share - diluted

2.14



1.90



0.24



12.6%





















Weighted average shares outstanding - basic

6,628



5,496



1,132



20.6%

Weighted average shares outstanding - diluted

6,872



5,787



1,085



18.7%

 

 

The Bank of Princeton

























Consolidated Average Balance Sheets

























(unaudited)





















































For the Quarter Ended



























Dec 2018



Sept 2018













Average 



Yield/



Average 



Yield/













balance



rate 



balance



rate 



$ Change



% Change

Earning assets

























  Loans 

$    1,062,719



5.02%



$    1,059,316



4.99%



$         3,403



0.03%





























Securities



















































  Taxable AFS 

47,297



2.41%



50,661



2.34%



(3,364)



0.07%



  Tax exempt AFS

45,212



2.78%



46,788



2.74%



(1,576)



0.04%



  Held-to-maturity

229



5.26%



250



5.03%



(21)



0.23%





























Securities

92,738



2.60%



97,699



2.55%



(4,961)



0.05%





























Other interest earning assets

























  Interest-bearing bank accounts

21,309



2.09%



30,938



2.05%



(9,629)



0.04%



  Equities

2,131



6.75%



1,986



6.41%



145



0.34%





























Other interest earning assets

23,440



2.51%



32,924



2.31%



(9,484)



0.20%





























Total interest-earning assets

1,178,897



4.77%



1,189,939



4.71%



(11,042)



0.06%





























Total non earning assets

56,087







54,916









































Total Assets

$    1,234,984







$    1,244,855



































































Interest-bearing liabilities

























Checking

$      177,247



0.98%



$      200,635



0.85%



(23,388)



0.13%



Savings

96,310



1.28%



100,496



1.22%



(4,186)



0.06%



Money Market

285,683



1.61%



284,651



1.48%



1,032



0.13%



Certificate of Deposit

364,272



1.98%



354,563



1.87%



9,709



0.11%





























    Total interest-bearing deposits

923,512



1.60%



940,345



1.47%



(16,833)



0.13%





























Non interest bearing deposits

101,838







101,923









































    Total  deposits

1,025,350



1.44%



1,042,268



1.32%



(16,918)



0.12%





























Borrowings

23,334



2.57%



20,128



2.22%



3,206



0.35%





























    Total interest-bearing liabilities 

946,846



1.63%



960,473



1.48%



(13,627)



0.15%



       (excluding non interest deposits)



















































Noninterest-bearing deposits

101,838







101,923















Total Cost of Funds

1,048,684



1.47%



1,062,396



1.34%



(13,712)



0.13%





























Accrued expenses and other liabilities

5,166







4,543















Stockholders' equity

181,134







177,916















Total liabilities and stockholders' equity

$    1,234,984







$    1,244,855



































































Net interest spread





3.15%







3.23%











Net interest margin





3.47%







3.51%





































Net interest margin (FTE)*





3.59%







3.67%





































  *Includes federal and state tax effect of tax exempt























    securities and loans

























 

 

The Bank of Princeton























Consolidated Average Balance Sheets























(unaudited)

















































For the Three Months Ended











December 31,











2018



2017











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change

Earning assets























  Loans 

$    1,062,719



5.02%



$      948,724



5.05%



$      113,995



-0.03%

























Securities















































  Taxable AFS 

47,297



2.41%



55,831



2.07%



(8,534)



0.34%

  Tax exempt AFS

45,212



2.78%



44,404



2.66%



808



0.12%

  Held-to-maturity

229



5.26%



265



5.21%



(36)



0.05%

























Securities

92,738



2.60%



100,500



2.34%



(7,762)



0.26%

























Other interest earning assets























  Interest-bearing bank accounts

21,309



2.09%



33,379



1.18%



(12,070)



0.91%

  Equities

2,131



6.75%



1,179



7.35%



952



-0.60%

























Other interest earning assets

23,440



2.51%



34,558



1.39%



(11,118)



1.12%

























Total interest-earning assets

1,178,897



4.77%



1,083,782



4.68%



95,115



0.09%

























Total non earning assets

56,087







59,066





































Total Assets

$    1,234,984







$    1,142,848





























































Interest-bearing liabilities























Checking

$      177,247



0.98%



$      209,337



0.75%



(32,090)



0.23%

Savings

96,310



1.28%



108,988



0.92%



(12,678)



0.36%

Money Market

285,683



1.61%



253,908



1.06%



31,775



0.55%

Certificate of Deposit

364,272



1.98%



287,497



1.53%



76,775



0.45%

























    Total interest-bearing deposits

923,512



1.60%



859,730



1.12%



63,782



0.48%

























Non interest bearing deposits

101,838







105,586





































    Total  deposits

1,025,350



1.44%



965,316



1.00%



60,034



0.44%

























Borrowings

23,334



2.57%



4,450



1.36%



18,884



1.21%

    Total interest-bearing liabilities 























       (excluding non interest deposits)

946,846



1.63%



864,180



1.12%



82,666



0.51%

























Noninterest-bearing deposits

101,838







105,586













Accrued expenses and other liabilities

5,166







4,700













Stockholders' equity

181,134







168,382













Total liabilities and stockholders' equity

$    1,234,984







$    1,142,848





























































Net interest spread





3.15%







3.56%









Net interest margin





3.47%







3.79%

































Net interest margin (FTE)*





3.59%







3.82%

































  *Includes federal and state tax effect of tax exempt





















       securities and loans























 

 

The Bank of Princeton























Consolidated Average Balance Sheets























(unaudited)

















































For the Twelve Months Ended











December 30,











2018



2017











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change

Earning assets























  Loans 

$    1,027,701



4.97%



$      899,822



5.01%



$   127,879



-0.04%

























Securities















































  Taxable AFS 

51,429



2.29%



57,434



2.01%



(6,005)



0.28%

  Tax exempt AFS

47,298



2.76%



46,047



2.70%



1,251



0.06%

  Held-to-maturity

251



5.18%



302



5.08%



(51)



0.10%

























Securities

98,978



2.52%



103,783



2.32%



(4,805)



0.20%

























Other interest earning assets























  Interest-bearing bank accounts

37,386



1.78%



21,976



1.12%



15,410



0.66%

  Equities

1,828



6.59%



3,395



5.69%



(1,567)



0.90%

























Other interest earning assets

39,214



2.00%



25,371



1.74%



13,843



0.26%

























Total interest-earning assets

1,165,893



4.66%



1,028,976



4.66%



136,917



0.00%

























Total non earning assets

57,456







46,796





































Total Assets

$    1,223,349







$    1,075,772





























































Interest-bearing liabilities























Checking

$      215,379



0.86%



$      173,761



0.71%



41,618



0.15%

Savings

102,219



1.17%



107,747



0.87%



(5,528)



0.30%

Money Market

273,373



1.42%



265,055



0.99%



8,318



0.43%

Certificate of Deposit

334,780



1.80%



238,388



1.48%



96,392



0.32%

























    Total interest-bearing deposits

925,751



1.40%



784,951



1.06%



140,800



0.34%

























Non interest bearing deposits

100,078







102,317





































    Total  deposits

1,025,829



1.26%



887,268



0.94%



138,561



0.32%

























Borrowings

17,196



2.29%



51,618



1.05%



(34,422)



1.24%

    Total interest-bearing liabilities 























       (excluding non interest deposits)

942,947



1.42%



836,569



1.06%



106,378



0.36%

























Noninterest-bearing deposits

100,078







102,317













Accrued expenses and other liabilities

4,533







4,127













Stockholders' equity

175,791







132,759













Total liabilities and stockholders' equity

$    1,223,349







$    1,075,772





































Net interest spread





3.25%







3.60%









Net interest margin





3.52%







3.80%

































Net interest margin (FTE)*





3.64%







3.99%

































  *Includes federal and state tax effect of tax exempt





















       securities and loans























 

 

The Bank of Princeton





















Quarterly Financial Highlights





















(unaudited)









































2018



2018



2018



2018



2017





Dec



Sep



Jun



Mar



Dec















































     Return on average assets 

1.22%



1.18%



1.21%



1.21%



0.59%



     Return on average equity 

8.30%



8.26%



8.39%



8.54%



4.02%



     Net interest margin

3.47%



3.51%



3.57%



3.52%



3.79%



     Net interest margin (FTE)*

3.59%



3.67%



3.70%



3.65%



3.92%



     Efficiency ratio - Non-GAAP **

57.94%



59.47%



57.55%



56.70%



49.40%

























Common Stock Data





















     Market value at period end

27.90



30.54



33.25



34.50



34.34



     Market range:





















        High

31.46



35.45



34.90



34.69



34.95



        Low

26.77



30.54



32.21



31.50



31.10



     Book value per common share at period end 

27.69



27.01



26.50



26.00



25.69

























CAPITAL RATIOS





















Total Capital (to risk-weighted assets)

17.37%



16.79%



16.67%



17.04%



17.12%



Tier 1 Capital (to risk-weighted assets)

16.31%



15.73%



15.61%



15.94%



16.01%



Tierr 1 Capital (to average assets)

14.89%



14.47%



14.55%



14.30%



14.64%



     Period-end equity to assets

14.73%



14.54%



14.18%



14.50%



14.02%

























CREDIT QUALITY DATA AT PERIOD END





















(Dollars in Thousands)





















     Net charge-offs and  (recoveries)

$       195



$         42



$       213



$         (3)



$     2,584

























     Annualized net charge-offs to average loans

0.073%



0.016%



-0.083%



-0.001%



1.08%

























     Nonaccrual loans 

5,699



4,832



8,463



10,832



9,199



     Other real estate owned

44



44



802



802



802



     Total nonperforming assets 

5,743



4,876



9,265



11,634



10,001

























     Accruing troubled debt restructurings (TDRs) 

1,286



1,300



1,309



4,721



4,796

























     Total nonperforming assets and accruing TDRs 

$     7,029



$     6,176



$   10,574



$   16,355



$   14,797

























     Allowance for credit losses as a percent of:





















     Period-end loans      

1.10%



1.15%



1.13%



1.19%



1.20%



     Nonaccrual loans 

47.71%



39.81%



70.26%



91.42%



79.36%



     Nonperforming assets 

48.08%



40.17%



76.91%



98.19%



86.28%

























    As a percent of total loans:





















    Nonaccrual loans 

0.53%



0.46%



0.79%



1.08%



0.95%



    Accruing TDRs 

0.12%



0.12%



0.12%



0.47%



0.49%



    Nonaccrual loans and accruing TDRs 

0.65%



0.58%



0.87%



1.64%



1.53%

























*Includes the effect of tax exempt securities and loans





















** The Efficiency Ratio is a non-GAAP information and should not be viewed as a substitute for financial results determined in accordance





      with GAAP. The efficiency ratio is calculated by adding net-interest income and non-interest income than divided by non-interest expenses.





 

 

Contact George Rapp

609.454.0718

grapp@thebankofprinceton.com

Cision View original content:http://www.prnewswire.com/news-releases/the-bank-of-princeton-announces-fourth-quarter-and-full-year-2018-results-300786186.html

SOURCE The Bank of Princeton

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