(PRNewsfoto/The Bank of Princeton)

(PRNewsfoto/The Bank of Princeton)

PRINCETON, N.J., July 22, 2021 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ: BPRN) today reported its unaudited results of operations and financial condition for the quarter ended June 30, 2021.  The Bank reported net income of $5.5 million, or $0.80 per diluted common share, for the second quarter of 2021, compared to net income of $4.9 million, or $0.70 per diluted common share, for the first quarter of 2021, and net income of $3.1 million, or $0.45 per diluted common share, for the second quarter of 2020. The increase in net income, when compared to the three months ended March 31, 2021, was primarily due to a $980 thousand increase in net-interest income, a $125 thousand reduction in the provision for loan losses, and a $155 thousand increase in non-interest income, partially offset by a $423 thousand increase in non-interest expense and a $165 thousand increase in income tax expense. The increase in net income, when comparing it to the three months ended June 30, 2020, was primarily due to an increase in net-interest income of $3.7 million and a $148 thousand increase in non-interest income, partially offset by a $628 thousand increase in non-interest expenses and an $850 thousand increase in income tax expenses.  For the six month period ended June 30, 2021, the Bank recorded net income of $10.4 million, or $1.50 per diluted common share, compared to $6.2 million, or $0.89 per diluted common share for the same period in 2020, primarily due to an $8.0 million increase in net-interest income, partially offset by an increase in income taxes of $1.5 million, a $1.3 million increase in non-interest expenses, a $480 thousand decrease in non-interest income, and a $475 thousand increase in the Bank's provision for loan losses.

Highlights for the quarter-ended June 30, 2021 are as follows:

  • The Bank commenced its "Stock Buyback Program" during the second quarter by purchasing 153,932 shares of common stock at a weighted average price of $28.96.
  • Total loans increased $33.7 million since December 31, 2020, to $1.4 billion or by 2.46%.
  • Net interest income for the second quarter of 2021 increased $3.7 million or 31.1% over the same period in 2020.
  • The Bank decreased its cost of funds on deposits by 66 basis points in the second quarter of 2021 from the same period in 2020.
  • The Bank's efficiency ratio decreased to 50.9% for the second quarter of 2021 compared to 61.1% for the second quarter of 2020.
  • The ratio of nonperforming loans to total loans continues to be low at 0.23% as of June 30, 2021 compared to 0.12% at December 31, 2020 and compared to 0.18% at June 30, 2020.

President/CEO Edward Dietzler stated that, "The Bank during the current quarter provided very strong earnings performance with a 78.2% increase in diluted earnings per share as well as a 63 basis point increase in our net interest margin, when comparing to the same period in 2020."

Chairman Richard Gillespie added, "The Bank's exceptional earnings performance continues for yet another quarter.  The $0.10 per share improvement over the first quarter positions the Bank for an overall strong 2021.  Our Board is proud of the manner management and the whole team have navigated through the pandemic period."

Balance Sheet Review

Total assets were $1.64 billion at June 30, 2021, an increase of $32.6 million or 2.0% when compared to $1.60 billion at the end of 2020. The primary reason for the increase in total assets was an increase in net loans of approximately $30.4 million, primarily consisting of approximately $83.6 million in construction loans, partially offset by a decrease of $25.0 million in commercial real estate loans and a $13.0 million decrease in residential loans during the six month period covered. In addition, Payroll Protection ("PPP") loans declined $2.3 million at June 30, 2021.

Total deposits at June 30, 2021 increased by $31.1 million, or 2.3%, when compared to December 31, 2020, primarily due to loan proceeds maintained in non-interest demand accounts from customers who received PPP loans, and stimulus payments to individuals under the American Rescue Plan Act, as well as growth from new branches added during the third quarter of 2020.  When comparing deposit products between the two periods, non-interest checking increased $57.3 million, savings increased $28.7 million and money markets increased $29.8 million. These increases were partially offset by a decrease in interest-bearing demand accounts of $38.0 million, primarily consisting of municipal deposits, and a decrease of $46.7 million in certificates of deposit. In addition, the Bank had no outstanding borrowings at June 30, 2021 and December 31, 2020.  

Total stockholders' equity at June 30, 2021 increased $4.0 million or 1.9% when compared to the end of 2020. This increase was primarily due to earnings recorded during the six months of 2021 minus the cash dividend paid during the period, and minus the $318 thousand decrease in the fair-value of the available-for-sale investment portfolio related to an increase in the treasury curve.  In addition, the Bank commenced its Stock Buyback Program and repurchased 153,932 shares of common stock at a total cost of $4.5 million and a weighted average cost of $28.96 per share.  The ratio of equity to total assets at June 30, 2021 and December 31, 2020, was 13.0%.  

Asset Quality

At June 30, 2021, non-performing assets were $3.7 million, an increase of $2.0 million, or 121.5%, when compared to the amount at December 31, 2020.  This increase at June 30, 2021 from December 31, 2020 was primarily due to the addition of four loans totaling $2.4 million being classified as non-performing, partially offset by $360 thousand in principal charge-offs and the remaining $472 thousand from principal payments. Troubled debt restructurings ("TDR") totaled $7.6 million at June 30, 2021 and $8.7 million at December 31, 2020. Three TDR loans totaling $6.2 million are performing to their agreed upon terms and the remaining three loans have been placed in non-accrual status as of June 30, 2021.  

As part of the Bank's commitment to provide assistance during the COVID-19 pandemic, the Bank agreed to defer either the principal portion or both principal and interest payments for its customers who requested the deferral and were not delinquent prior to the government shut down.  The Bank has seen a favorable trend as a vast majority of customers have returned to their regular payment schedule. As of June 30, 2021, the Bank had remaining 6 loans (consisting of three borrowers) that were modified totaling $9.9 million, and at December 31, 2020, the Bank had remaining 14 loans (consisting of nine borrowers) that were modified totaling $45.0 million, down from the 240 loans totaling $263.5 million originally approved for such deferment reported as of June 30, 2020. Under current accounting guidance, these loans are not required to be classified as TDR's.

Review of Quarterly Financial Results

Net-interest income was $15.7 million for the second quarter of 2021, compared to $14.8 million for the first quarter of 2021 and $12.0 million for the second quarter of 2020.  The increase from the previous quarter was a result of an increase in interest income of $636 thousand and a $344 thousand, or 16.9%, decrease in interest paid on liabilities, partially resulting from a 12 basis points reduction in the rate on interest bearing deposits.  Interest income for the second three months of 2021 included an increase of approximately $900 thousand in accelerated accretion attributed to deferred fees received from the first phase of PPP loans, due to the U.S. government forgiving the debt and paying off the loans. The net interest margin for the second quarter of 2021 was 4.06%, increasing 8 basis points when compared to the first quarter of 2021. This increase was primarily associated with a reduction of 12 basis points in total interest cost of funds, and an increase in the average outstanding balance of earning assets of $50.1 million, slightly offset by a 3 bps reduction in the yield on the earning assets.  When comparing the three month periods ended June 30, 2021 and 2020, net interest income increased $3.7 million, which was primarily due an increase in interest income of $2.1 million caused by a $143.9 million increase in interest earning assets aided by a reduction in interest expense of $1.6 million.  The reduction in interest expense was attributed to a decline of 65 basis points in the rate paid on its interest-bearing liabilities. For the six month period ended June 30, 2021, net interest income was $30.5 million, an increase of $8.0 million, or 35.5%, over the same period in 2020.  This increase was due a $3.9 million increase in interest earned on earning assets and a $4.1 million decline in interest expense. For the six month period ended June 30, 2021, the average outstanding balance of earning assets increased by $148.2 million and average outstanding interest-bearing liabilities increased $59.3 million.  The total rate on interest-bearing liabilities, which includes non-interest-bearing deposits, for the three month periods ended June 30, 2021 and 2020 was 0.48% and 1.02%, respectively.  For the six month periods ended June 30, 2021 and 2020 the total rate on interest-bearing liabilities was 0.54% and 1.25%, respectively.

The provision for credit losses was $1.0 million for the three month period ended June 30, 2021.  The comparable amounts were $1.0 million and $1.1 million for the three months ended March 31, 2021 and June 30, 2020, respectively. The primary reasons for the provision for credit losses for the first and second quarters of 2021 were charge-offs in the amounts of $1.1 million and $1.0 million, respectively.  The primary reason for the provision in the second quarter of 2020 was an increase in the Bank's qualitative factors and historical loss factor.  The general reserves were also impacted by an increase in the qualitative factors dollar contribution to the reserve due to growth within the Bank's loan portfolio mainly in the construction and development loans due to a higher risk factor attributed these loans and partially offset by reductions in the outstanding balances of commercial real estate loans and residential loans and a reduction in the historical loss factor resulting from decline in level of prior period charge-offs.  As of June 30, 2021, the Bank did not apply any qualitative factors to the loans originated from PPP, based on the U.S government's guarantee and the Coronavirus Aid, Relief and Economic Securities Act requirement to classify these loans at 0% in determining risk-based capital ratio.  The coverage rate of allowance for credit losses to period end loans was 1.14% (excluding PPP loans, the coverage ratio was 1.31%) at June 30, 2021, compared to 1.17% (excluding PPP loans, the coverage ratio was 1.34%) at December 31, 2020, which reflects management's assessment of the credit quality in the loan portfolio.

At June 30, 2021, the Bank's concentration in the loan portfolio associated with the segment's management believes could be affected by the pandemic: restaurants, hotels, and retail, totaled $13.6 million, $48.8 million and $49.9 million, respectively.  

Total non-interest income for the second quarter of 2021 increased $148 thousand to $1.0 million, or by 17.0%, when compared to the same period in 2020. This increase was primarily due to a $128 thousand increase on service fees collected and a $21 thousand increase in loan fees collected. Total non-interest income when comparing second quarter of 2021 to first quarter of 2021 increased $155 thousand, primarily due to $112 thousand increase in loans fees and $34 thousand increase in deposit fees collected.  For the six month period ended June 30, 2021, non-interest income decreased $480 thousand, or 20.3%, from the same six month period in 2020, primarily due to a $506 thousand gain on the sale of investment securities available-for sale recorded in the 2020 period.

Total non-interest expense for the second quarter of 2021 increased $628 thousand, or 7.8%, when compared to the same period in 2020.  This increase was primarily due to an increase in additional operating cost associated with the Bank's branch expansion strategy.  When comparing the quarter ended June 30, 2021 to the immediately prior quarter, non-interest expense increased $423 thousand, or 5.1%, primarily due to increases in salaries and benefits expense, federal deposit insurance expense, and other operating expenses.  For the six month period ended June 30, 2021, non-interest expense was $16.9 million, compared to $15.6 million for the same period in 2020. This increase was primarily due to an increase in additional operating costs associated with the Bank's branch expansion strategy.

For the three month period ended June 30, 2021, the Bank recorded an income tax expense of $1.5 million, resulting in an effective tax rate of 21.9%, compared to an income tax expense of $1.4 million resulting in an effective tax rate of 22.2% for the three month period ended March 31, 2021, and compared to an income tax expense of $697 resulting in an effective tax rate of 18.2% for the three month period ended June 30, 2020. During the third quarter of 2020, the New Jersey Governor signed a law extending and retroactively increasing New Jersey's corporation business tax surtax by 1.0% to 2.5%. The effective tax rate for the first and second quarters 2021 were impacted by the level of tax-free income against the level of taxable earnings. For the six month periods ended June 30, 2021 and 2020, the income tax expense were $2.9 million (effective tax rate of 22.0%) and $1.4 million (effective tax rate of 18.8%), respectively.

COVID-19

The full impact of the coronavirus continues to evolve as of the date of this press release. As such, it is uncertain as to the full magnitude that the pandemic will have on the Bank's financial condition, liquidity, and future results of operations.  

The Bank continues to work closely with its loan customers to educate and guide them on their options for financial assistance, including possible payment relief through deferral and waived fees.  The Bank continues to endeavor to provide a fast and flexible response to the quickly changing circumstances.

About The Bank of Princeton

The Bank of Princeton is a community bank founded in 2007.  The Bank is a New Jersey state-chartered commercial bank with 20 branches in New Jersey, including four in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Hamilton, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville.  There are also four branches in the Philadelphia, Pennsylvania area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation ("FDIC").

Forward-Looking Statements

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

These forward-looking statements involve risks and uncertainties, such as statements of the Bank's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Bank's control). The following factors, among others, could cause the Bank's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the extent of the adverse impact of the current global coronavirus outbreak on our customers, prospects and business, as well as the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area, the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Bank; technological changes; acquisitions; changes in consumer spending and saving habits; those risks set forth in the Bank's Annual Report on Form 10-K for the year ended December 31, 2020 under the heading "Risk Factors," and the success of the Bank at managing the risks involved in the foregoing.

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

Contact George Rapp

609.454.0718

grapp@thebankofprinceton.com

 

The Bank of Princeton









Summary Statements of Financial Condition Data









(unaudited)









(dollars in thousands, except per share data)































































Jun 30, 2021

vs

Dec 31, 2020



Jun 30, 2021

vs

Dec 31, 2020





Jun 30, 2021

vs

Jun 30, 2020



Jun 30, 2021

vs

Jun 30, 2020







Jun 30,

2021



Dec 31,

2020



Jun 30,

2020





$

Change



%

 Change





$

Change



%

 Change







































ASSETS













Cash and cash equivalents



$     79,939



$     77,429



$     73,654





$        2,510



3.24

%



$        6,285



8.53

%

Securities available for sale taxable



25,750



25,112



31,822





638



2.54





(6,072)



(19.08)



Securities available for sale tax exempt



46,852



50,516



55,838





(3,664)



(7.25)





(8,986)



(16.09)



Securities held to maturity



212



215



219





(3)



(1.40)





(7)



(3.20)



Loans receivable, net of deferred fees and costs



1,393,907



1,363,486



1,340,521





30,421



2.23





53,386



3.98



Allowance for loan losses



(16,042)



(16,027)



(13,317)





(15)



0.09





(2,725)



20.46



Goodwill



8,853



8,853



8,853





-



-





-



-



Core deposit intangible



2,701



3,036



3,383





(335)



(11.03)





(682)



(20.16)



Other assets



93,292



90,218



92,153





3,074



3.41





1,139



1.24



TOTAL ASSETS



$1,635,464



$1,602,838



$1,593,126





$      32,626



2.04

%



$      42,338



2.66

%









































































LIABILITIES



































Non interest checking



$   272,685



$   215,381



$   254,437





$      57,304



26.61

%



$      18,248



7.17

%

Interest checking



250,750



288,769



213,510





(38,019)



(13.17)





37,240



17.44



Savings



207,656



178,932



178,076





28,724



16.05





29,580



16.61



Money market



335,062



305,290



272,841





29,772



9.75





62,221



22.80



Time deposits over $250,000 



44,158



67,924



86,882





(23,766)



(34.99)





(42,724)



(49.17)



Other time deposits



288,015



310,970



355,956





(22,955)



(7.38)





(67,941)



(19.09)



Total Deposits



1,398,326



1,367,266



1,361,702





31,060



2.27





36,624



2.69



Borrowings



-



-



-





-



-





-



 N/A 



Other liabilities



24,298



26,754



29,223





(2,456)



(9.18)





(4,925)



(16.85)



    TOTAL LIABILITIES



1,422,624



1,394,020



1,390,925





28,604



2.05

%



31,699



2.28

%





































STOCKHOLDERS' EQUITY



































 Common stock 



34,066



33,949



33,872





117



0.34

%



194



0.57

%

 Paid-in capital 



80,041



79,708



79,451





333



0.42





590



0.74



 Treasury Stock 



(4,458)



-



-





(4,458)



 N/A 





(4,458)



 N/A 



 Retained earnings 



101,718



93,370



87,078





8,348



8.94





14,640



16.81



 Accumulated other comprehensive income (loss) 



1,473



1,791



1,800





(318)



(17.76)





(327)



(18.17)



     TOTAL STOCKHOLDERS' EQUITY 



212,840



208,818



202,201





4,022



1.93

%



10,639



5.26

%





































TOTAL LIABILITIES 



































     AND STOCKHOLDERS' EQUITY



$1,635,464



$1,602,838



$1,593,126





$      32,626



2.04

%



$      42,338



2.66

%





































Book value per common share



$       31.96



$       30.75



$       29.85





$          1.21



3.92

%



$          2.11



7.08

%

Tangible book value per common share1



$       30.23



$       29.00



$       28.04





$          1.22



4.21

%



$          2.18



7.79

%





































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

 

The Bank of Princeton









Loan/Deposit Tables









(unaudited)



















Loan receivable, net at June 30, 2021 and December 31, 2020 were comprised of the following:

























June 30,



December 31,





2021



2020





(Dollars in thousands)

Commercial real estate



$        787,451



$        812,043

Commercial and industrial



31,998



40,597

Construction



346,668



263,032

Residential first-lien mortgages



53,846



66,857

Home equity / consumer



8,514



9,929

PPP (SBA loans) Phase I



57,365



175,878

PPP (SBA loans) Phase II



116,205



-

     Total loans



1,402,047



1,368,336

Deferred fees and costs, net



(8,140)



(4,850)

Allowance for loan losses



(16,042)



(16,027)

     Loans, net



$     1,377,865



$     1,347,459





















The components of deposits at June 30, 2021 and December 31, 2020 were as follows:















June 30,



December 31,





2021



2020





(Dollars in thousands)

Demand, non-interest-bearing checking



$        272,685



$        215,381

Demand, interest-bearing 



250,750



288,769

Savings



207,656



178,932

Money Markets



335,062



305,290

Time deposits



332,173



378,894

     Total Deposits



$     1,398,326



$     1,367,266

 

The Bank of Princeton















Consolidated Statements of Operations















(unaudited)





















Three Months Ended June 30,













2021



2020



$ Change



% Change







(Dollars and shares in thousands, except per share data)

Interest and Dividend Income





































Loans and fees

$16,978



$  14,746



$       2,232



15.1%



Available-for-Sale debt securities:



















Taxable

112



171



(59)



-34.5%





Tax-exempt

289



355



(66)



-18.6%



Held-to-Maturity debt securities

2



3



(1)



-33.3%



Other interest and dividend income

41



25



16



64.0%

























Total Interest and Dividends

17,422



15,300



2,122



13.9%























Interest expense







































Deposits

1,687



3,289



(1,602)



-48.7%





Borrowings

-



6



(6)



-100.0%

























Total Interest Expense

1,687



3,295



(1,608)



-48.8%

























Net Interest Income

15,735



12,005



3,730



31.1%





















Provision for Loan Losses

1,000



1,000



0



0.0%





















Net Interest Income after Provision for Loan Losses

14,735



11,005



3,730



33.9%





















Non-Interest income





































Gain on sale of securities available for sale,net

-



1



(1)



-100.0%



Income from bank-owned life insurance

277



291



(14)



-4.8%



Fees and service charges

436



308



128



41.6%



Loan fees, including prepayment penalities

238



217



21



9.7%



Other 

67



53



14



26.4%

























Total Non-Interest Income

1,018



870



148



17.0%





















Non-Interest Expense





































Salaries and employee benefits

4,364



4,461



(97)



-2.2%



Occupancy and equipment

1,522



1,288



234



18.2%



Professional fees

678



456



222



48.7%



Data processing and communications

889



749



140



18.7%



Federal deposit insurance

238



116



122



105.2%



Advertising and promotion

63



70



(7)



-10.0%



Office expense

44



55



(11)



-20.0%



Other real estate owned expense

1



-



1



N/A



Core deposit intangible

160



186



(26)



-14.0%



Other 

723



673



50



7.4%

























Total Non-Interest Expense

8,682



8,054



628



7.8%





















Income before income tax expense

7,071



3,821



3,250



85.1%





















Income tax expense

1,547



697



850



122.0%





















Net Income

$  5,524



$    3,124



$       2,400



76.8%





















Net income per common share - basic

$    0.82



$      0.46



$         0.36



78.3%

Net income per common share - diluted

$    0.80



$      0.45



$         0.35



77.8%





















Weighted average shares outstanding - basic

6,725



6,772



(47)



-0.7%

Weighted average shares outstanding - diluted

6,872



6,848



24



0.4%

 

The Bank of Princeton















Consolidated Statements of Operations (Current Quarter vs Prior Quarter)













(unaudited)





















Three Months Ended







Jun 30,



Mar 31,















2021



2021



$ Change



% Change







(Dollars and shares in thousands, except per share data)

Interest and Dividend Income





































Loans and fees

$   16,978



$16,328



$         650



4.0%



Available-for-Sale debt securities:



















Taxable

112



108



4



3.7%





Tax-exempt

289



301



(12)



-4.0%



Held-to-Maturity debt securities

2



4



(2)



-50.0%



Other interest and dividend income

41



45



(4)



-8.9%

























Total Interest and Dividends

17,422



16,786



636



3.8%























Interest expense







































Deposits

1,687



2,030



(343)



-16.9%





Borrowings

-



1



(1)



0.0%

























Total Interest Expense

1,687



2,031



(344)



-16.9%

























Net Interest Income

15,735



14,755



980



6.6%





















Provision for Loan Losses

1,000



1,125



(125)



-11.1%





















Net Interest Income after Provision for Loan Losses

14,735



13,630



1,105



8.1%





















Non-Interest income





































Gain on sale of securities available for sale,net

-



7



(7)



-100.0%



Income from bank-owned life insurance

277



273



4



1.5%



Fees and service charges

436



402



34



8.5%



Loan fees, including prepayment penalities

238



126



112



88.9%



Other 

67



55



12



21.8%

























Total Non-Interest Income

1,018



863



155



18.0%





















Non-Interest Expense





































Salaries and employee benefits

4,364



4,110



254



6.2%



Occupancy and equipment

1,522



1,520



2



0.1%



Professional fees

678



662



16



2.4%



Data processing and communications

889



871



18



2.1%



Federal deposit insurance

238



128



110



85.9%



Advertising and promotion

63



50



13



26.0%



Office expense

44



53



(9)



-17.0%



Other real estate owned expense

1



9



(8)



-88.9%



Core deposit intangible

160



174



(14)



-8.0%



Other 

723



682



41



6.0%

























Total Non-Interest Expense

8,682



8,259



423



5.1%





















Income before income tax expense

7,071



6,234



837



13.4%





















Income tax expense

1,547



1,382



165



11.9%





















Net Income

$     5,524



$  4,852



$         672



13.8%





















Net income per common share - basic

$       0.82



$    0.71



$        0.11



15.5%

Net income per common share - diluted

$       0.80



$    0.70



$        0.10



14.3%





















Weighted average shares outstanding - basic

6,725



6,804



(79)



-1.2%

Weighted average shares outstanding - diluted

6,872



6,951



(79)



-1.1%

 

The Bank of Princeton















Consolidated Statements of Operations















(unaudited)





































Six Months Ended June 30,







2021



2020



$ Change



% Change







(Dollars and shares in thousands, except for per share data)

Interest and Dividend Income





































Loans and fees

$33,306



$ 28,945



$       4,361



15.1%



Available-for-Sale debt securities:



















Taxable

220



481



(261)



-54.3%





Tax-exempt

590



718



(128)



-17.8%



Held-to-Maturity debt securities

6



6



0



0.0%



Other interest and dividend income

86



187



(101)



-54.0%

























Total Interest and Dividends

34,208



30,337



3,871



12.8%























Interest expense







































Deposits

3,717



7,821



(4,104)



-52.5%





Borrowings

1



9



(8)



-88.9%

























Total Interest Expense

3,718



7,830



(4,112)



-52.5%

























Net Interest Income

30,490



22,507



7,983



35.5%





















Provision for Loan Losses

2,125



1,650



475



28.8%





















Net Interest Income after Provision for Loan Losses

28,365



20,857



7,508



36.0%





















Non-Interest income





































Gain on sale of securities available for sale,net

7



506



(499)



-98.6%



Income from bank-owned life insurance

550



587



(37)



-6.3%



Fees and service charges

838



641



197



30.7%



Loan fees, including prepayment penalities

364



521



(157)



-30.1%



Other 

122



106



16



15.1%

























Total Non-Interest Income

1,881



2,361



(480)



-20.3%





















Non-Interest Expense





































Salaries and employee benefits

8,474



8,583



(109)



-1.3%



Occupancy and equipment

3,042



2,490



552



22.2%



Professional fees

1,340



977



363



37.2%



Data processing and communications

1,760



1,552



208



13.4%



Federal deposit insurance

366



204



162



79.4%



Advertising and promotion

113



160



(47)



-29.4%



Office expense

97



135



(38)



-28.1%



Other real estate owned expense

10



-



10



N/A



Core deposit intangible

334



380



(46)



-12.1%



Other 

1,405



1,156



249



21.5%

























Total Non-Interest Expense

16,941



15,637



1,304



8.3%





















Income before income tax expense

13,305



7,581



5,724



75.5%





















Income tax expense

2,929



1,423



1,506



105.8%





















Net Income

$10,376



$   6,158



$       4,218



68.5%





















Net income per common share - basic

$    1.54



$     0.91



$         0.63



69.2%

Net income per common share - diluted

$    1.50



$     0.89



$         0.61



68.5%





















Weighted average shares outstanding - basic

6,760



6,769



(9)



-0.1%

Weighted average shares outstanding - diluted

6,899



6,888



11



0.2%

 

The Bank of Princeton





















Consolidated Average Statement of Financial Condition





















(unaudited)

















































For the Three Months Ended











June 30,











2021



2020











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change



(Dollars in thousands)









Earning assets























  Loans 

$   1,434,187



4.75%



$   1,280,865



4.63%



$      153,322



0.12%

























Securities















































  Taxable AFS 

24,890



1.80%



34,769



1.97%



(9,879)



-0.17%

  Tax exempt AFS

46,586



2.48%



56,031



2.54%



(9,445)



-0.06%

  Held-to-maturity

213



5.27%



220



5.45%



(7)



-0.18%

























Securities

71,689



2.25%



91,020



2.33%



(19,331)



-0.08%

























Other interest earning assets























  Interest-bearing bank accounts

46,234



0.22%



36,219



0.07%



10,015



0.15%

  Equities

1,402



4.37%



1,549



4.74%



(147)



-0.37%

























Other interest earning assets

47,636



0.35%



37,768



0.26%



9,868



0.09%

























Total interest-earning assets

1,553,512



4.50%



1,409,653



4.37%



143,859



0.13%

























Total non earning assets

94,629







115,220





































Total Assets

$   1,648,141







$   1,524,873





























































Interest-bearing liabilities























Checking

$      255,644



0.26%



$      216,330



0.78%



$        39,314



-0.52%

Savings

199,920



0.25%



170,969



0.58%



28,951



-0.33%

Money Market

332,467



0.31%



269,735



0.66%



62,732



-0.35%

Certificate of Deposit

336,205



1.36%



392,702



2.24%



(56,497)



-0.88%

























    Total interest-bearing deposits

1,124,236



0.60%



1,049,736



1.26%



74,500



-0.66%

























Non interest bearing deposits

283,567







245,313





































    Total  deposits

1,407,803



0.48%



1,295,049



1.02%



112,754



-0.54%

























Borrowings

610



0.32%



4,255



0.57%



(3,645)



-0.25%

    Total interest-bearing liabilities 























       (excluding non interest deposits)

1,124,846



0.60%



1,053,991



1.25%



70,855



-0.65%

























Noninterest-bearing deposits

283,567







245,313













Total Cost of Funds

1,408,413



0.48%



1,299,304



1.02%



109,109



-0.54%

























Accrued expenses and other liabilities

26,472







25,166













Stockholders' equity

213,256







200,403













Total liabilities and stockholders' equity

$   1,648,141







$   1,524,873





























































Net interest spread





3.90%







3.11%









Net interest margin





4.06%







3.43%

































Net interest margin (FTE)1





4.12%







3.49%

































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















 

The Bank of Princeton





















Consolidated Average Statement of Financial Condition





















(unaudited)

















































For the Quarter Ended











 Jun 2021



 Mar 2021











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change



(Dollars in thousands)







Earning assets























  Loans 

$   1,434,187



4.75%



$       1,377,302



4.81%



$       56,885



-0.06%

























Securities















































  Taxable AFS 

24,890



1.80%



25,986



1.61%



(1,096)



0.19%

  Tax exempt AFS

46,586



2.48%



48,540



2.51%



(1,954)



-0.03%

  Held-to-maturity

213



5.27%



215



5.27%



(2)



0.00%

























Securities

71,689



2.25%



74,741



2.21%



(3,052)



0.04%

























Other interest earning assets























  Interest-bearing bank accounts

46,234



0.22%



49,986



0.24%



(3,752)



-0.02%

  Equities

1,402



4.37%



1,388



4.56%



14



-0.19%

























Other interest earning assets

47,636



0.35%



51,374



0.36%



(3,738)



-0.01%

























Total interest-earning assets

1,553,512



4.50%



1,503,417



4.53%



50,095



-0.03%

























Total non earning assets

94,629







113,352





































Total Assets

$   1,648,141







$       1,616,769





























































Interest-bearing liabilities























Checking

$      255,644



0.26%



$         263,367



0.31%



$        (7,723)



-0.05%

Savings

199,920



0.25%



184,714



0.27%



15,206



-0.02%

Money Market

332,467



0.31%



312,648



0.33%



19,819



-0.02%

Certificate of Deposit

336,205



1.36%



368,692



1.59%



(32,487)



-0.23%

























    Total interest-bearing deposits

1,124,236



0.60%



1,129,421



0.73%



(5,185)



-0.13%

























Non interest bearing deposits

283,567







248,661





































    Total  deposits

1,407,803



0.48%



1,378,082



0.60%



29,721



-0.12%

























Borrowings

610



0.32%



478



0.32%



132



0.00%

























    Total interest-bearing liabilities 

1,124,846



0.60%



1,129,899



0.73%



(5,053)



-0.13%

       (excluding non interest deposits)























Noninterest-bearing deposits

283,567







248,661













Total Cost of Funds

1,408,413



0.48%



1,378,560



0.60%



29,853



-0.12%

























Accrued expenses and other liabilities

26,472







26,915













Stockholders' equity

213,256







211,294













Total liabilities and stockholders' equity

$   1,648,141







$       1,616,769





























































Net interest spread





3.90%







3.80%









Net interest margin





4.06%







3.98%

































Net interest margin (FTE)1





4.12%







4.09%

































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

 

The Bank of Princeton





















Consolidated Average Statement of Financial Condition





















(unaudited)

















































For the Six Months Ended











Jun 30,











2021



2020











(Dollars in thousands)











Average 



Yield/



Average 



Yield/











balance



rate 



balance



rate 



$ Change



% Change

Earning assets























  Loans 

$   1,405,901



4.78%



$   1,239,304



4.70%



$        166,597



0.08%

























Securities















































  Taxable AFS 

25,435



1.73%



45,705



2.10%



(20,270)



-0.37%

  Tax exempt AFS

47,557



2.48%



56,453



2.55%



(8,896)



-0.07%

  Held-to-maturity

214



5.27%



221



5.26%



(7)



0.01%

























Securities

73,206



2.23%



102,379



2.35%



(29,173)



-0.12%

























Other interest earning assets























  Interest-bearing bank accounts

48,100



0.23%



37,260



0.81%



10,840



-0.58%

  Equities

1,395



4.46%



1,416



5.13%



(21)



-0.67%

























Other interest earning assets

49,495



0.35%



38,676



0.97%



10,819



-0.62%

























Total interest-earning assets

1,528,602



4.51%



1,380,359



4.42%



148,243



0.09%

























Total non earning assets

103,939







105,311





































Total Assets

$   1,632,541







$   1,485,670





























































Interest-bearing liabilities























Checking

$      259,484



0.29%



$      218,174



0.89%



$         41,310



-0.60%

Savings

192,359



0.26%



164,116



0.86%



28,243



-0.60%

Money Market

322,612



0.32%



268,996



1.05%



53,616



-0.73%

Certificate of Deposit

352,359



1.48%



414,269



2.31%



(61,910)



-0.83%

























    Total interest-bearing deposits

1,126,814



0.67%



1,065,555



1.48%



61,259



-0.81%

























Non interest bearing deposits

266,211







194,530





































    Total  deposits

1,393,025



0.54%



1,260,085



1.25%



132,940



-0.71%

























Borrowings

544



0.67%



2,529



0.69%



(1,985)



-0.02%

    Total interest-bearing liabilities 























       (excluding non interest deposits)

1,127,358



0.66%



1,068,084



1.47%



59,274



-0.81%

























Noninterest-bearing deposits

266,211







194,530













Total Cost of Funds

1,393,569



0.54%



1,262,614



1.25%



130,955



-0.71%

























Accrued expenses and other liabilities

26,692







23,978













Stockholders' equity

212,280







199,078













Total liabilities and stockholders' equity

$   1,632,541







$   1,485,670





































Net interest spread





3.85%







2.95%









Net interest margin





4.02%







3.28%

































Net interest margin (FTE)1





4.08%







3.55%

































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

















 

The Bank of Princeton

Quarterly Financial Highlights

(unaudited)























2021



2021



2020



2020



2020

(Dollars in thousands, except common stock data)

Jun   



Mar  



Dec  



Sep  



Jun  





















     Return on average assets 

1.34%



1.21%



1.03%



0.90%



0.82%

     Return on average equity 

10.36%



9.31%



7.86%



6.90%



6.27%

     Return on average tangible equity1

10.95%



9.86%



8.35%



7.50%



6.68%

     Net interest margin

4.06%



3.98%



3.63%



3.45%



3.43%

     Net interest margin (FTE)2

4.12%



4.09%



3.69%



3.53%



3.49%

     Efficiency ratio - Non-GAAP3 

50.87%



51.80%



52.55%



52.91%



61.10%





















Common Stock Data



















     Market value at period end

$      28.67



$     28.62



$     23.41



$    18.17



$     20.19

     Market range:



















        High

$      31.31



$     29.67



$     26.44



$    20.45



$     23.91

        Low

$      25.58



$     21.43



$     18.12



$    17.40



$     17.51

     Book value per common share at period end

$      31.96



$     31.24



$     30.75



$    30.26



$     29.85

     Tangible book value per common share at period end4

$      30.22



$     29.52



$     29.00



$    28.48



$     28.04





















CAPITAL RATIOS



















Total Capital (to risk-weighted assets)

15.33%



15.73%



16.03%



16.41%



16.01%

Tier 1 Capital (to risk-weighted assets)

14.19%



14.56%



14.81%



15.20%



14.95%

Tier 1 Capital (to average assets)

12.22%



12.45%



12.48%



12.27%



12.45%

     Period-end equity to assets

13.01%



12.62%



13.03%



13.24%



12.69%

     Period-end tangible equity to tangible assets 

12.40%



11.92%



12.38%



12.56%



12.02%





















CREDIT QUALITY DATA AT PERIOD END



















(Dollars in Thousands)



















     Net charge-offs and  (recoveries)

$1,000



$1,100



$870



-$6



$6

     Annualized net charge-offs (recoveries) to average loans

0.279%



0.319%



0.256%



-0.001%



0.002%





















     Total nonperforming assets (TDRs not included)

$      2,381



$     2,498



$     1,676



$    2,383



$     2,387

     Troubled debt restructurings (TDRs)



















           -Performing

6,241



8,533



8,573



8,888



9,471

           -Non-performing

1,332



-



-



-



-

     Total nonperforming assets and accruing TDRs 

$      9,954



$   11,031



$   10,249



$   11,271



$   11,858





















     Allowance for credit losses as a percent of:



















     Period-end loans      

1.14%



1.12%



1.18%



1.14%



0.99%

     Nonaccrual loans 

491.03%



781.77%



956.26%



639.82%



557.90%

     Nonperforming assets 

432.05%



642.19%



956.26%



639.82%



557.90%





















    As a percent of total loans:



















    Nonaccrual loans 

0.23%



0.14%



0.12%



0.18%



0.18%

    Accruing TDRs 

0.45%



0.59%



0.63%



0.66%



0.71%

    Nonaccrual loans and accruing TDRs 

0.71%



0.77%



0.75%



0.84%



0.88%





















1Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.









2Includes the effect of tax exempt securities and loans



















3The efficiency ratio in a non-GAAP measure that represents the ratio of non-interest expense (less CDI expense) divided by the net-interest income 

       and non-interest income. 



















4Tangible book value per common share is a non-GAAP measure that represents book value per common share which 









      excludes goodwill and core deposit intangible. 



















 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/the-bank-of-princeton-announces-second-quarter-2021-results-301339853.html

SOURCE The Bank of Princeton

DISCLAIMER FOR COMMENTS: The views expressed by public comments are not those of this company or its affiliated companies. Please note by clicking on "Post" you acknowledge that you have read the TERMS OF USE and the comment you are posting is in compliance with such terms. Your comments may be used on air. Be polite. Inappropriate posts or posts containing offsite links, images, GIFs, inappropriate language, or memes may be removed by the moderator. Job listings and similar posts are likely automated SPAM messages from Facebook and are not placed by WFMZ-TV.