Market Overview

The Bank of Princeton Announces Second Quarter 2018 Results

Share:

The Bank of Princeton Announces Second Quarter 2018 Results

PR Newswire

PRINCETON, N.J., July 26, 2018 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ – BPRN) today reported unaudited results of operations and financial condition for the quarter ended June 30, 2018.  The Bank reported net income of $3.6 million, or $0.53 per diluted common share, for the second quarter of 2018, compared to net income of $3.6 million, or $0.52 per diluted common share, for the first quarter of 2018, and net income of $3.0 million, or $0.69 per diluted common share, for the second quarter of 2017. The increase in net income, when comparing the three months ended March 31, 2018, was primarily due in an increase of $372 thousand in net interest income and a reduction in income tax expense of $211thousand and partially offset by an increase to the Bank's provision for loan losses of $155 thousand,  a decline in non-interest income of $159 thousand and an increase of $215 thousand in non-interest expenses. The increase of $596 thousand in total net income, when comparing the three months ended June 30, 2017 was primarily due to a $790 thousand increase of net-interest income, a $108 thousand increase in non-interest income, a $339 thousand reduction in income tax expense, partially offset with a $410 thousand in provision for loan losses and a $231 thousand increase in non-interest expenses.  For the six month period ended June 30, 2018, the Bank recorded net income of $7.2 million, or $1.05 per diluted common share, compared to $6.1 million, or $1.21 per diluted common share for the same period in 2017.  

Highlights for the quarter-ended June 30, 2018 are as follows:

  • Net-interest income for the three month period ended June 30, 2018 increased $790 thousand, or 8.3%, over the same period in 2017.
  • Non-interest income for the three month period ended June 30, 2018 increased $108 thousand, or 20.8%, over the same period in 2017.
  • Total net-income for the second quarter of 2018 increased $596 thousand, or 19.6%, when compared to the same period in 2017.
  • Total net-income for the six month period ended June 30, 2018 increased $1.1 million, or 17.7%, when compared to the same period in 2017.
  • Net loans increased $95.8 million, from $958.4 million at December 31, 2017.  This reflects an annualized increase of 20.0%

"We are pleased to report another quarter of sound financial performance, continuing the momentum that began with our stock offering in August 2017," stated Edward Dietzler, President/CEO.

Chairman Richard Gillespie noted that, "The Bank's financial results in the second quarter, demonstrate the positive impact of our growth strategy, by focusing on prudent loan growth."

Balance Sheet Review

Total assets were $1.24 billion at June 30, 2018, an increase of $40.2 million, or 3.3% 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 $95.8 million, primarily consisting of commercial and residential real estate loans, partially offset by a reduction of $57.0 million in cash and cash equivalents, which were related to a decline in deposit accounts connected with a cyclical reduction of municipal deposits.

Total deposits at June 30, 2018 decreased by $14.0 million, or 1.4% when compared to December 31, 2017. Since December 31, 2017, we experienced deposit increases of $54.9 million in time deposit, $35.2 million n money markets, which were more than offset by a $100.4 million decrease in demand accounts (approximately $50.0 million was related to the municipal deposits noted above).  At June 30, 2018, the Bank had borrowings of $46.0 million in short-term advances to fund the loan growth.   

Total stockholders' equity increased $7.7 million, or 4.6% when compared to the end of 2017. This increase was primarily due to earnings recorded during the first six months of 2018.  The ratio of equity to total assets was 14.2%, 0.2% higher than year-end 2017.

Asset Quality

At June 30, 2018, non-performing assets were $9.3 million, a decrease of $736 thousand, or 7.4%, when compared to $10.0 million at December 31, 2017.  This decrease was primarily the result of one large credit removed from non-accrual during the quarter. Total troubled debt restructuring ("TDRs") balance totaled $2.8 million at June 30, 2018, a decline of $3.5 million from year-end 2017. All TDRs are performing to their agreed upon terms.

Review of Quarterly Financial Results

Net interest income was $10.2 million for the second quarter of 2018, compared to $9.9 million for the first quarter of 2018 and $9.5 million for the second quarter of 2017.  The increase from the previous quarter was a result of an increase in interest income of $865 thousand, or 6.9%, offset by an increase in interest expense of $493 thousand.  The net interest margin for the second quarter 2018 was 3.57%, increasing 5 basis points, when compared to the first quarter of 2018. This increase was primarily associated with an increase of 20 basis points of yield on earning assets, partially offset by an increase of 18 basis points paid on cost of funds.  When comparing the same three month period ended June 30, 2018 and 2017, net interest income increased $790 thousand, which was primarily due to a higher volume of average earnings assets of approximately $147.9 million. For the six month period ended June 30, 2018, net interest income was $20.2 million, an increase of $1.3 million, or 7.0%, over the same period in 2017, which was primarily due to a higher volume of average earning assets of approximately $147.9 million.  Total rate on interest-bearing liabilities, which includes non-interest-bearing deposits for the three month period ended June 30, 2018 and 2017 was 1.24% and 0.93%, respectively. 

The provision for credit losses was $410 thousand and $665 thousand for the three and six months ended June 30, 2018, respectively, compared to $0 for the same periods in 2017.  When compared to the prior quarter, the increase was $255 thousand for the three months ended March 31, 2018. The primary reason for the provision in the second quarter of 2018 was due to an increase in the outstanding loans balance.  The ratio of allowance for credit losses to period end loans was 1.13% at June 30, 2018, compared to 1.20% at December 31, 2017 and 1.20% at June 30, 2017, which reflects management's assessment of the credit quality in the loan portfolio.

Total non-interest income for the second quarter of 2018 increased $108 thousand, to $627 thousand, or 20.8%, when compared to the same period in 2017. This increase was primarily due to an increase in income from bank-owned life insurance. Total non-interest income, comparing the three month periods ended June 30, 2018 and March 31, 2018, reflected a decrease of $159 thousand, primarily due to a lower level of fees generated on loans recorded between the two periods.  For the six month period ended June 30, 2018, non-interest income increased $530 thousand, or 60.0%, primarily due to increases in bank-owned life insurance and fees earned on loans.

Total non-interest expense for the second quarter of 2018 increased $231 thousand, or 3.8%, when compared to the same period in 2017.  This increase was primarily due to increases in salaries and employee benefit expense and advertising expense, partially offset by a reduction in professional fees and FDIC deposit insurance.  When comparing June 30, 2018 to the prior linked quarter, non-interest expense increased $215 thousand, or 3.6%, primarily due to an increase in professional fees and other operating expense. For the six month period ended June 30, 2018, non-operating expense was $12.3 million, compared to $12.0 million for the same period in 2017. The increase was attributed to an increase of salaries and benefits expense, partially offset by a reduction in professional fees and FDIC deposit insurance expense.

For the three month period ended June 30, 2018, the Bank recorded income tax expense of $579 thousand, resulting in an effective tax rate of 13.7%, compared to $790 thousand, resulting in an effective tax rate of 18.1%, for the three month period ended March 31, 2018, and compared to $918 thousand, resulting in an effective tax rate of 23.2%, for the three month period ended June 30, 2017. The current effective tax yield for the three and six months ended June 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 six months ended June 30, 2018 and three months ended March 31, 2018 were positively impacted by recording a tax benefit related to the exercise of warrants and 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 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)




























Jun 30,
2018
vs
Dec 31,
2017


Jun 30,
2018
vs
Dec 31,
2017


Jun 30, 2018
vs
Jun 30, 2017


Jun 30,
2018
vs
Jun 30,
2017



June 30,
2018


Dec 31,
2017


June 30,
2017



$
Change


%
 Change


$
Change


%
 Change



















ASSETS







Cash and cash equivalents


$     25,702


$     82,822


$     26,791



$     (57,120)


(68.97)

%


$       (1,089)


(4.06)

%

Securities available for sale taxable


52,038


53,770


59,229



(1,732)


(3.22)



(7,191)


(12.14)


Securities available for sale tax exempt


47,548


47,974


43,399



(426)


(0.89)



4,149


9.56


Securities held to maturity


262


264


294



(2)


(0.76)



(32)


(10.88)


Loans receivable, net of deferred


1,066,238


970,178


889,629



96,060


9.90



176,609


19.85


Allowance for loan losses


(12,046)


(11,822)


(10,645)



(224)


1.89



(1,401)


13.16


Other assets


61,012


57,405


45,852



3,607


6.28



15,160


33.06


TOTAL ASSETS


$ 1,240,754


$ 1,200,591


$ 1,054,549



$      40,163


3.35

%


$     186,205


17.66

%





































LIABILITIES


















Non interest checking


$   102,035


$   100,633


$   111,535



$        1,402


1.39

%


$       (9,500)


(8.52)

%

Interest checking


181,714


282,076


162,080



(100,362)


(35.58)



19,634


12.11


Savings


100,336


105,475


108,377



(5,139)


(4.87)



(8,041)


(7.42)


Money market


282,105


246,898


257,102



35,207


14.26



25,003


9.72


Time deposits over $250,000 


158,885


102,586


65,257



56,299


54.88



93,628


143.48


Other time deposits


189,607


191,000


175,007



(1,393)


(0.73)



14,600


8.34


Total Deposits


1,014,682


1,028,668


879,358



(13,986)


(1.36)



135,324


15.39


Borrowings


46,000


-


60,000



46,000


-



(14,000)


(23.33)


Other liabilities


4,087


3,628


3,598



459


12.65



489


13.59


    TOTAL LIABILITIES


1,064,769


1,032,296


942,956



32,473


3.15

%


121,813


12.92

%



















STOCKHOLDERS' EQUITY


















 Common stock 


33,206


32,756


24,105



450


1.37



9,101


37.76


 Paid-in capital 


77,450


76,350


32,957



1,100


1.44



44,493


135.00


 Retained earnings 


66,338


59,122


54,237



7,216


12.21



12,101


22.31


 Accumulated other comprehensive (loss) income 


(1,009)


67


294



(1,076)


(1,606)



(1,303)


(443)


     TOTAL STOCKHOLDERS' EQUITY 


175,985


168,295


111,593



7,690


4.57

%


64,392


57.70

%



















TOTAL LIABILITIES 


















     AND STOCKHOLDERS' EQUITY


$ 1,240,754


$ 1,200,591


$ 1,054,549



$      40,163


17.02

%


$     186,205


17.66

%



















Book value per common share


$      26.50


$      25.69


$      23.15



$          0.81


3.15

%


$          3.35


14.48

%

Tangible book value per common share1


$      26.50


$      25.69


$      23.14



$          0.81


3.15

%


$          3.36


14.51

%



















1Reconciliation of non-GAAP tangible 


















     book value per common share:


















Total stockholders' equity


$   175,985


$   168,295


$   111,593












Intangible assets


-


-


(28)












Tangible stockholders' equity


$   175,985


$   168,295


$   111,565






























Common shares outstanding


6,641,179


6,551,229


4,821,045






























Tangible book value per common share


$      26.50


$      25.69


$      23.14






























 

 

The Bank of Princeton





Loan/Deposit Tables





June 30, 2018










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













June 30,


December 31,



2018


2017



(Dollars in thousands)

Commercial real estate


$        709,214


$        634,768

Commercial and industrial


54,516


59,636

Construction


266,371


283,051

Residential first-lien mortgages


96,555


73,505

Home equity


18,444


20,551

Consumer


456


447

     Total loans


1,145,556


1,071,958

Undisbursed portion of loans-in-process


(77,021)


(99,676)

Deferred fees and costs


(2,297)


(2,335)

Allowance for loan losses


(12,046)


(11,591)

     Loans, net


$     1,054,192


$        958,356











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










June 30,


December 31,



2018


2017



(Dollars in thousands)

Demand, non-interest-bearing checking


$        102,035


$        100,633

Demand, interest-bearing 


181,714


282,076

Savings


100,336


105,475

Money Markets


282,105


246,898

Time deposits


348,492


293,586

     Total Deposits


$     1,014,682


$     1,028,668

 

 

The Bank of Princeton









Consolidated Statements of Operations (Current Quarter vs Prior Quarter)






(unaudited)












Quarter Ending









Jun 30,


Mar 31,









2018


2018


$ Change


% Change





(Dollars in thousands)






Interest and Dividend Income





















Loans and fees

$    12,684


$ 11,650


1,034


8.9%



Available-for-Sale debt securities:











Taxable

300


294


6


2.0%




Tax-exempt

334


335


-1


-0.3%



Held-to-Maturity debt securities

3


4


-1


-25.0%



Other interest and dividend income

136


309


-173


-56.0%















Total Interest and Dividends

13,457


12,592


865


6.9%














Interest expense






















Deposits

3,074


2,683


391


14.6%




Borrowings

116


14


102


728.6%















Total Interest Expense

3,190


2,697


493


18.3%















Net Interest Income

10,267


9,895


372


3.8%













Provision for Loan Losses

410


255


155


60.8%













Net Interest Income after Provision for Loan Losses

9,857


9,640


217


2.3%













Non-Interest income





















Gain on sale of securities available for sale,net

1


-


1


-



Income from bank-owned life insurance

306


302


4


1.3%



Fees and service charges

158


160


-2


-1.3%



Loan fees, including prepayment penalities

149


308


-159


-51.6%



Other 

13


16


-3


-18.8%















Total Non-Interest Income

627


786


-159


-20.2%













Non-Interest Expense





















Salaries and employee benefits

3,682


3,687


-5


-0.1%



Occupancy and equipment

832


858


-26


-3.0%



Professional fees

508


419


89


21.2%



Data processing and communications

524


524


-


-



Federal deposit insurance

88


88


-


-



Advertising and promotion

98


61


37


60.7%



Office expense

68


66


2


3.0%



OREO Expense  

1


-


1


-



Other 

469


352


117


33.2%




Total Non-Interest Expense












6,270


6,055


215


3.6%













Income before income tax expense/(benefit)

4,214


4,371


-157


-3.6%













Income tax expense/(benefit)

579


790


-211


-26.7%













Net Income

$     3,635


$  3,581


54


1.5%













Net income per common share - basic

0.55


0.55


-


-


Net income per common share - diluted

0.53


0.52


0.01


1.9%













Weighted average shares outstanding - basic

6,640


6,576


64


1.0%


Weighted average shares outstanding - diluted

6,905


6,855


50


0.7%













 

 

The Bank of Princeton









Consolidated Statements of Operations









(unaudited)












Quarter Ending









June 30,









2018


2017


$ Change


% Change





(Dollars in thousands)






Interest and Dividend Income





















Loans and fees

$ 12,684


$  10,931


1,753


16.0%



Available-for-Sale debt securities:











Taxable

300


283


17


6.0%




Tax-exempt

334


305


29


9.5%



Held-to-Maturity debt securities

3


4


-1


-25.0%



Other interest and dividend income

136


108


28


25.9%















Total Interest and Dividends

13,457


11,631


1,826


15.7%














Interest expense






















Deposits

3,074


1,859


1,215


65.4%




Borrowings

116


295


-179


-60.7%















Total Interest Expense

3,190


2,154


1,036


48.1%















Net Interest Income

10,267


9,477


790


8.3%













Provision for Loan Losses

410


-


410


-













Net Interest Income after Provision for Loan Losses

9,857


9,477


380


4.0%













Non-Interest income





















Gain on sale of securities available for sale,net

1


11


-10


-90.9%



Income from bank-owned life insurance

306


179


127


70.9%



Fees and service charges

158


159


-1


-0.6%



Loan fees, including prepayment penalities

149


161


-12


-7.5%



Other 

13


9


4


44.4%















Total Non-Interest Income

627


519


108


20.8%













Non-Interest Expense





















Salaries and employee benefits

3,682


3,331


351


10.5%



Occupancy and equipment

832


873


-41


-4.7%



Professional fees

508


545


-37


-6.8%



Data processing and communications

524


498


26


5.2%



Federal deposit insurance

88


178


-90


-50.6%



Advertising and promotion

98


68


30


44.1%



Office expense

68


73


-5


-6.8%



OREO Expense  

1


-


1


-



Other 

469


473


-4


-0.8%




Total Non-Interest Expense












6,270


6,039


231


3.8%


Income before income tax expense/(benefit)












4,214


3,957


257


6.5%


Income tax expense/(benefit)












579


918


-339


-36.9%


Net Income












$  3,635


$   3,039


596


19.6%













Net income per common share - basic

0.55


0.63


-0.08


-13.3%


Net income per common share - diluted

0.53


0.60


-0.07


-11.7%













Weighted average shares outstanding - basic

6,640


4,811


1,829


38.0%


Weighted average shares outstanding - diluted

6,905


5,104


1,081


35.3%
























 

The Bank of Princeton









Consolidated Statements of Operations









(unaudited)












Six Months Ended









June 30,









2018


2017


$ Change


% Change





(Dollars in thousands)






Interest and Dividend Income





















Loans and fees

$ 24,334


$  21,520


2,814


13.1%



Available-for-Sale debt securities:











Taxable

594


575


19


3.3%




Tax-exempt

669


654


15


2.3%



Held-to-Maturity debt securities

7


8


-1


-12.5%



Other interest and dividend income

445


196


249


-127.0%















Total Interest and Dividends

26,049


22,953


3,096


13.5%














Interest expense






















Deposits

5,757


3,655


2,102


57.5%




Borrowings

130


457


-327


-71.6%















Total Interest Expense

5,887


4,112


1,755


43.2%















Net Interest Income

20,162


18,841


1,321


7.0%













Provision for Loan Losses

665


-


665


-













Net Interest Income after Provision for Loan Losses

19,497


18,841


656


3.5%













Non-Interest income





















Gain on sale of securities available for sale,net

1


15


-14


-93.3%



Income from bank-owned life insurance

608


353


255


72.2%



Fees and service charges

318


303


15


5.0%



Loan fees, including prepayment penalities

457


193


264


136.8%



Other 

29


19


10


52.6%















Total Non-Interest Income

1,413


883


530


60.0%













Non-Interest Expense





















Salaries and employee benefits

7,369


6,791


578


8.5%



Occupancy and equipment

1,690


1,713


-23


-1.3%



Professional fees

927


1,105


-178


-16.1%



Data processing and communications

1,048


958


90


9.4%



Federal deposit insurance

176


336


-160


-47.6%



Advertising and promotion

159


115


44


38.3%



Office expense

134


124


10


8.1%



OREO Expense  

1


4


-3


7.5%



Other 

821


853


-32


3.8%




Total Non-Interest Expense












12,325


11,999


326


2.7%













Income before income tax expense/(benefit)

8,585


7,725


860


11.1%













Income tax expense/(benefit)

1,369


1,596


-227


-14.2%













Net Income

$  7,216


$   6,129


1,087


17.7%













Net income per common share - basic

1.09


1.29


-0.20


-15.5%


Net income per common share - diluted

1.05


1.21


-0.16


-13.2%













Weighted average shares outstanding - basic

6,608


4,764


1,844


38.7%


Weighted average shares outstanding - diluted

6,870


5,070


1,800


35.5%













 

The Bank of Princeton













Consolidated Average Balance Sheets













(unaudited)



























For the Quarter Ended














June 2018


March 2018







Average 


Yield/


Average 


Yield/







balance


rate 


balance


rate 


$ Change


% Change

Earning assets













  Loans 

$    1,024,940


4.96%


$      962,378


4.91%


62,562


0.05%















Securities


























  Taxable AFS 

53,867


2.23%


53,974


2.18%


-107


0.05%


  Tax exempt AFS

48,443


2.75%


48,792


2.75%


-349


0.01%


  Held-to-maturity

263


5.22%


264


5.22%


-1


0.07%















Securities

102,573


2.48%


103,030


2.46%


-457


0.03%















Other interest earning assets













  Interest-bearing bank accounts

23,936


1.74%


74,013


1.66%


-50,077


0.08%


  Equities

2,048


6.22%


1,133


7.27%


915


-1.04%















Other interest earning assets

25,984


2.10%


75,146


1.67%


-49,162


0.43%















Total interest-earning assets

1,153,497


4.68%


1,140,554


4.48%


12,943


0.20%















Total non earning assets

57,581




60,778





















Total Assets

$    1,211,078




$    1,201,332


































Interest-bearing liabilities













Checking

$      203,771


0.83%


$      281,166


0.81%


-77,395


0.02%


Savings

105,212


1.16%


106,993


1.02%


-1,781


0.13%


Money Market

273,888


1.37%


248,741


1.19%


25,147


0.18%


Certificate of Deposit

327,284


1.73%


291,990


1.55%


35,294


0.18%















    Total interest-bearing deposits

910,155


1.35%


928,890


1.17%


-18,735


0.18%















Non interest bearing deposits

101,043




95,417





















    Total  deposits

1,011,198


1.22%


1,024,307


1.06%


-13,109


0.16%















Borrowings

21,635


2.15%


3,438


1.64%


18,197


0.50%















    Total interest-bearing liabilities 

931,790


1.37%


932,328


1.17%


-538


0.20%


       (excluding non interest deposits)


























Noninterest-bearing deposits

101,043




95,417








Total Cost of Funds

1,032,833


1.24%


1,027,775


1.06%


5,058


0.18%















Accrued expenses and other liabilities

4,418




3,445








Stockholders' equity

173,827




170,142








Total liabilities and stockholders' equity

$    1,211,078




$    1,201,332


































Net interest spread



3.31%




3.31%






Net interest margin



3.57%




3.52%



















Net interest margin (FTE)*



3.70%




3.65%



















*Includes federal and state tax effect on tax exempt












    securities and loans


























 

 

The Bank of Princeton













Consolidated Average Balance Sheets













(unaudited)



























For the Three Months Ended







June 30,







2018


2017







Average 


Yield/


Average 


Yield/







balance


rate 


balance


rate 


$ Change


% Change


Earning assets













  Loans 

$    1,024,940


4.96%


$      882,273


4.97%


142,667


-0.01%















Securities


























  Taxable AFS 

53,867


2.23%


57,880


1.95%


-4,013


0.28%


  Tax exempt AFS

48,443


2.75%


45,287


2.70%


3,156


0.05%


  Held-to-maturity

263


5.22%


314


4.94%


-51


0.28%















Securities

102,573


2.48%


103,481


2.29%


-908


0.19%















Other interest earning assets













  Interest-bearing bank accounts

23,936


1.74%


13,845


0.96%


10,091


0.78%


  Equities

2,048


6.22%


5,912


5.11%


-3,864


1.11%















Other interest earning assets

25,984


2.10%


19,757


2.20%


6,227


-0.10%















Total interest-earning assets

1,153,497


4.68%


1,005,511


4.64%


147,986


0.04%















Total non earning assets

57,581




40,291





















Total Assets

$    1,211,078




$    1,045,802


































Interest-bearing liabilities













Checking

$      203,771


0.83%


$      144,443


0.66%


59,328


0.17%


Savings

105,212


1.16%


105,469


0.86%


-257


0.30%


Money Market

273,888


1.37%


265,655


0.97%


8,233


0.40%


Certificate of Deposit

327,284


1.73%


209,018


1.44%


118,265


0.29%















    Total interest-bearing deposits

910,155


1.35%


724,586


1.03%


185,569


0.32%















Non interest bearing deposits

101,043




101,200





















    Total  deposits

1,011,198


1.22%


825,786


0.90%


185,412


0.32%















Borrowings

21,635


2.15%


105,795


1.12%


-84,160


1.03%


    Total interest-bearing liabilities 













       (excluding non interest deposits)

931,790


1.37%


830,381


1.04%


101,409


0.33%















Noninterest-bearing deposits

101,043




101,200








Total Cost of Funds

1,032,833


1.24%


931,581


0.93%


101,252


0.31%















Accrued expenses and other liabilities

4,418




4,330








Stockholders' equity

173,827




109,891








Total liabilities and stockholders' equity

$    1,211,078




$    1,045,802





















Net interest spread



3.31%




3.60%






Net interest margin



3.57%




3.78%



















Net interest margin (FTE)*



3.70%




3.95%



















  *Includes federal and state effect of tax exempt












       securities and loans


























 

The Bank of Princeton













Consolidated Average Balance Sheets













(unaudited)



























For the Six Months Ended







June 30,







2018


2017







Average 


Yield/


Average 


Yield/







balance


rate 


balance


rate 


$ Change


% Change


Earning assets













  Loans 

$      993,832


4.94%


$      873,034


4.97%


120,798


-0.03%















Securities


























  Taxable AFS 

53,920


2.20%


58,026


1.98%


-4,106


0.22%


  Tax exempt AFS

48,617


2.75%


47,928


2.73%


689


0.02%


  Held-to-maturity

263


5.22%


327


5.05%


-64


0.17%















Securities

102,800


2.47%


106,281


2.33%


-3,481


0.14%















Other interest earning assets













  Interest-bearing bank accounts

48,836


1.62%


14,571


0.92%


34,265


0.70%


  Equities

1,593


6.59%


5,234


4.99%


-3,641


1.60%















Other interest earning assets

50,429


1.78%


19,805


1.99%


30,624


-0.22%















Total interest-earning assets

1,147,061


4.58%


999,120


4.63%


147,941


-0.05%















Total non earning assets

59,171




38,735





















Total Assets

$    1,206,232




$    1,037,855


































Interest-bearing liabilities













Checking

$      242,254


0.82%


$      152,822


0.66%


89,432


0.16%


Savings

106,098


1.09%


$      105,214


0.82%


884


0.27%


Money Market

261,384


1.29%


272,659


0.92%


-11,275


0.36%


Certificate of Deposit

309,735


1.65%


207,271


1.44%


102,464


0.21%















    Total interest-bearing deposits

919,471


1.26%


737,966


1.00%


181,505


0.26%















Non interest bearing deposits

98,245




97,341





















    Total  deposits

1,017,716


1.14%


835,307


0.88%


182,409


0.26%















Borrowings

12,586


2.08%


91,045


1.01%


-78,459


1.07%


    Total interest-bearing liabilities 













       (excluding non interest deposits)

932,057


1.27%


829,011


1.00%


103,046


0.27%















Noninterest-bearing deposits

98,245




97,341








Total Cost of Funds

1,030,303


1.04%


926,352


0.79%


103,951


0.25%















Accrued expenses and other liabilities

3,935




3,925








Stockholders' equity

171,995




107,578








Total liabilities and stockholders' equity

$    1,206,232




$    1,037,855





















Net interest spread



3.31%




3.63%






Net interest margin



3.54%




3.80%



















Net interest margin (FTE)*



3.70%




3.96%



















  *Includes federal and state effect of tax exempt












       securities and loans


























 

The Bank of Princeton













Quarterly Financial Highlights













(unaudited)
























2018


2018


2017


2017


2017





Jun


Mar


Dec


Sep


Jun






























     Return on average assets 

1.21%


1.21%


0.59%


1.17%


1.17%




     Return on average equity 

8.39%


8.54%


4.02%


8.60%


11.10%




     Return on average tangible equity                  

8.39%


8.54%


4.02%


8.60%


11.10%




     Net interest margin

3.57%


3.52%


3.79%


3.82%


3.78%




     Net interest margin (FTE)*

3.75%


3.65%


3.92%


3.96%


3.95%




     Efficiency ratio - Non-GAAP 

57.55%


56.70%


49.40%


52.67%


60.43%

















Common Stock Data













     Market value at period end

33.25


34.50


34.34


31.99


-




     Market range:













        High

34.90


34.69


34.95


33.49


-




        Low

32.21


31.50


31.10


29.43


-




     Book value per common share at period end

26.50


26.00


25.69


25.47


23.15




     Tangible book value per common share at period end 

26.50


26.00


25.69


25.46


23.14

















CAPITAL RATIOS













Total Capital (to risk-weighted assets)

16.67%


17.04%


17.12%


17.15%


12.34%




Tier 1 Capital (to risk-weighted assets)

15.61%


15.94%


16.01%


16.06%


11.25%




Tierr 1 Capital (to average assets)

14.55%


14.30%


14.64%


15.29%


10.55%




     Period-end equity to assets

14.18%


14.50%


14.02%


14.90%


10.58%




     Period-end tangible equity to tangible assets 

14.18%


14.50%


14.02%


14.90%


10.58%

















CREDIT QUALITY DATA AT PERIOD END













(Dollars in Thousands)













     Net charge-offs and  (recoveries)

$       213


$         (3)


$     2,584


$       235


$           5

















     Annualized net charge-offs to average loans

-0.083%


-0.001%


1.08%


0.10%


0.002%

















     Nonaccrual loans 

8,463


10,832


9,199


11,240


7,258




     Other real estate owned

802


802


802


179


179




     Total nonperforming assets 

9,265


11,634


10,001


11,419


7,437

















     Accruing troubled debt restructurings (TDRs) 

1,309


4,721


4,796


4,846


4,775

















     Total nonperforming assets and accruing TDRs 

$   10,574


$   16,355


$   14,797


$   16,265


$   12,212

















     Allowance for credit losses as a percent of:













     Period-end loans      

1.13%


1.19%


1.20%


1.19%


1.20%




     Nonaccrual loans 

70.26%


91.42%


79.36%


99.82%


68.18%




     Nonperforming assets 

76.91%


98.19%


86.28%


101.41%


69.86%

















    As a percent of total loans:













    Nonaccrual loans 

0.79%


1.08%


0.95%


1.19%


0.82%




    Accruing TDRs 

0.12%


0.47%


0.49%


0.51%


0.54%




    Nonaccrual loans and accruing TDRs 

0.87%


1.64%


1.53%


1.72%


1.37%











































*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-second-quarter-2018-results-300687474.html

SOURCE The Bank of Princeton

View Comments and Join the Discussion!