The Bank of Princeton Announces First Quarter 2022 Results

Rhea-AI Summary

The Bank of Princeton reported a net income of $6.0 million or $0.91 per diluted share for Q1 2022, a slight decrease from $6.2 million in Q4 2021, but an increase from $4.9 million in Q1 2021. This decline is attributed to a $146 thousand decrease in net-interest income and a $421 thousand drop in non-interest income. However, net-interest income rose 7.4% compared to the same quarter last year. The bank implemented a 5% stock buyback program and reported a low nonperforming loans ratio of 0.08%.

Positive

• Net income of $6.0 million, an increase from $4.9 million year-over-year.
• Net interest income increased by $1.1 million or 7.4% compared to Q1 2021.
• Initiated a 5% stock buyback program, purchasing 124,440 shares.
• Maintained a low nonperforming loans ratio at 0.08%.

Negative

• Net income decreased by $162 thousand from Q4 2021.
• Operating expenses increased by $305 thousand compared to Q4 2021.
• Total assets decreased by $9.7 million or 0.6% since the end of 2021.

PRINCETON, N.J., April 21, 2022 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ: BPRN) today reported its unaudited results of operations and financial condition for and at the quarter ended March 31, 2022.  The Bank reported net income of $6.0 million, or $0.91 per diluted common share, for the first quarter of 2022, compared to net income of $6.2 million, or $0.92 per diluted common share, for the fourth quarter of 2021, and net income of $4.9 million, or $0.70 per diluted common share, for the first quarter of 2021. The decrease in net income, when compared to the three months ended December 31, 2021, was primarily due to a reduction of $146 thousand in net-interest income, a $421 thousand reduction in non-interest income and a $305 thousand increase in operating expenses, partially offset by a $410 thousand reduction in income taxes payable and no provision for loan losses recorded for this quarter compared to the $300 thousand recorded in the prior quarter. The increase in net income, when comparing it to the three months ended March 31, 2021, was primarily due to an increase in net interest income of $1.1 million, a $1.1 million decrease in the provision for loan losses and a $183 thousand increase to non-interest income, partially offset by a $1.0 million increase in non-interest operating expenses and a $229 thousand increase in income tax expense.  

Highlights for the quarter-ended March 31, 2022 are as follows:

• The Bank initiated a second 5% stock buyback program during the first quarter by purchasing 124,440 shares of common stock at a weighted average price of $29.04.
• Net interest income for the first quarter of 2022 increased $1.1 million or 7.4% over the same period in 2021.
• The Bank decreased its cost of funds on deposits by 30 basis points in the first quarter of 2022 from the same period in 2021.
• The ratio of nonperforming loans to total loans continues to be low at 0.08% as of March 31, 2022 compared to 0.09% at December 31, 2021 and compared to 0.14% at March 31, 2021.

President/CEO Edward Dietzler stated that, "The Bank started 2022 with a very strong performance in loan growth with an increase of $102.1 million or 32.4% annualized excluding the Payroll Protection Program  loan portfolio, deriving a strong net interest margin of 4.09%."

Balance Sheet Review

Total assets were $1.68 billion at March 31, 2022, a decrease of $9.7 million, or 0.6% when compared to $1.69 billion at the end of 2021. The primary reason for the decrease in total assets was a decrease in cash and cash equivalents of approximately $64.7 million, and a $4.7 million decrease in available-for-sale securities, partially offset by an increase of $60.0 million in net loans.  The increase in net loans primarily consisted of a $59.1 million increase in commercial real estate loans and a $46.2 million increase in construction and development loans, partially offset by a decrease of $43.0 million in Payroll Protection Program ("PPP") loans.

Total deposits at March 31, 2022 decreased $4.6 million, or 0.3%, when compared to December 31, 2021.  When comparing deposit products between the two periods, certificates of deposit decreased $24.1 million and non-interest-bearing deposits decreased $12.6 million. These decreases were partially offset by an increase in savings accounts of $12.6 million, an increase of $10.1 million in demand accounts and a $9.4 million increase in money market accounts. In addition, the Bank had no outstanding borrowings at March 31, 2022 and December 31, 2021.  

Total stockholders' equity at March 31, 2022 decreased $3.3 million or 1.5% when compared to the end of 2021. This decrease was primarily due to the $4.5 million decrease in the accumulated other comprehensive income on the available-for-sale investment portfolio associated with an increase in unrealized losses due to the increase in interest rates, and $3.6 million of common stock repurchased in the 2022 buyback program, partially offset by a $4.3 million increase in retained earning consisting of $6.0 million of net income less $1.7 million of cash dividends recorded during the period.    The ratio of equity to total assets at March 31, 2022 and at December 31, 2021, was $12.7% and 12.8%, respectively.  

Asset Quality

At March 31, 2022, non-performing assets were $1.4 million, a decrease of $16 thousand, or 1.1%, when compared to the amount at December 31, 2021.  This decrease was primarily due to principal payments received during the three months ended March 31, 2022.  Troubled debt restructurings ("TDRs") totaled $6.8 million at March 31, 2022 and $6.9 million at December 31, 2021. Three TDR loans totaling $6.1 million are performing in accordance with the agreed-upon terms and there is one loan in non-accrual status as of March 31, 2022.  

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.  All but one customer returned to their regular payment schedule. As of March 31, 2022, the Bank had only one loan that was modified totaling $9.0 million.  Under current accounting guidance, these loans are not required to be classified as TDRs.

Review of Quarterly Financial Results

The $162 thousand decrease in net income this quarter when compared to the previous quarter was largely a result of a $333 thousand decrease in interest income, partially offset by a $187 thousand, or 13.3%, decrease in interest expense, partially resulting from a four basis points reduction in the rate on total deposits.  Interest income for the first quarter of 2022 included approximately $1.2 million in accelerated accretion attributable to deferred fees received from PPP loans, due to the U.S. government forgiving the debt and paying off the loans. The net interest margin for the first quarter of 2022 was 4.09%, increasing 13 basis points when compared to the fourth quarter of 2021. This increase was primarily due to a 10 basis point increase in the yield on the earning assets and a reduction of five basis points in total interest bearing deposits.  When comparing the three month periods ended March 31, 2022 and 2021, net interest income increased $1.1 million, which was primarily due to a reduction in interest expense of $807 thousand and an increase of $292 thousand in interest income.  The total rate on average interest-bearing liabilities, which includes non-interest-bearing deposits, for the three month periods ended March 31, 2022 and 2021 was 0.34% and 0.60%, respectively.

The Bank did not record a provision for credit losses for the three month period ended March 31, 2022.  The comparable amounts were $300 thousand and $1.1 million for the three months ended December 31, 2021 and March 31, 2021, respectively. The primary reasons for the provision for credit losses for the fourth and first quarters of 2021 were charge-offs in the amounts of $245 thousand and $1.1 million, respectively.  As of March 31, 2022, 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 1.19% (excluding PPP loans, the coverage ratio was 1.23%) at March 31, 2022, compared to 1.10% (excluding PPP loans, the coverage ratio was 1.31%) at March 31, 2021, which reflects management's assessment of the credit quality in the loan portfolio.

Total non-interest income for the first quarter of 2022 increased $183 thousand, or 21.2%, to $1.0 million when compared to the same period in 2021. This increase was primarily due to a $139 thousand increase in other non-interest income attributed to a credit on start-up costs related to a SBIC fund and a $73 thousand increase in deposit fees earned, partially offset by a $31 thousand reduction to loans fees.

Total non-interest expense for the first quarter of 2022 increased $1.0 million, or 12.2%, when compared to the same period in 2021.  This increase was primarily due to $791 thousand increase in salaries and benefits expenses, a $164 thousand increase in data processing and communication expenses, a $136 thousand increase in Federal deposit insurance costs and $69 thousand increase in advertising costs, partially offset by a $101 thousand decrease in professional fees and a $42 thousand decrease in occupancy and equipment expenses.

For the three month period ended March 31, 2022, the Bank recorded an income tax expense of $1.6 million, resulting in an effective tax rate of 21.1%, compared to an income tax expense of $2.0 million resulting in an effective tax rate of 24.6% for the three month period ended December 31, 2021, and 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.  

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 19 branches in New Jersey, including three 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, including related supply chain shortage of goods, 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; and the timing and nature of the regulatory response to any applications filed by 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, 2021 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.

 

The Bank of Princeton
Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in thousands, except per share data)
								March 31, 2022 vs					March 31, 2022 vs
		March 31,		December 31,		March 31,		December 31, 2021					March 31, 2021
		2022		2021		2021		$ Change		% Change			$ Change		% Change
ASSETS
Cash and cash equivalents		$         94,030		$       158,716		$         67,517		$  (64,686)		(40.76)	%		$      26,513		39.27	%
Securities available-for-sale taxable		50,409		51,690		25,964		(1,281)		(2.48)			24,445		94.15
Securities available-for-sale tax-exempt		46,058		49,468		46,443		(3,410)		(6.89)			(385)		(0.83)
Securities held-to-maturity		206		208		214		(2)		(0.96)			(8)		(3.74)
Loans receivable, net of deferred		1,395,155		1,335,163		1,455,158		59,992		4.49			(60,003)		(4.12)
Allowance for loan losses		(16,654)		(16,620)		(16,042)		(34)		0.20			(612)		3.81
Goodwill		8,853		8,853		8,853		-		-			-		-
Core deposit intangible		2,238		2,393		2,862		(155)		(6.48)			(624)		(21.80)
Other assets		97,654		97,811		93,569		(157)		(0.16)			4,085		4.37
TOTAL ASSETS		$     1,677,949		$     1,687,682		$     1,684,538		$    (9,733)		(0.58)	%		$       (6,589)		(0.39)	%
LIABILITIES
Non-interest checking		$       273,679		$       286,247		$       288,852		$  (12,568)		(4.39)	%		$     (15,173)		(5.25)	%
Interest checking		269,072		259,022		241,061		10,050		3.88			28,011		11.62
Savings		238,224		225,579		193,046		12,645		5.61			45,178		23.40
Money market		382,477		373,075		324,881		9,402		2.52			57,596		17.73
Time deposits over $250,000		26,493		33,741		55,117		(7,248)		(21.48)			(28,624)		(51.93)
Other time deposits		251,600		268,479		295,754		(16,879)		(6.29)			(44,154)		(14.93)
Total deposits		1,441,545		1,446,143		1,398,711		(4,598)		(0.32)			42,834		3.06
Borrowings		-		-		43,000		-		N/A			(43,000)		N/A
Other liabilities		23,164		24,961		30,280		(1,797)		(7.20)			(7,116)		(23.50)
TOTAL LIABILITIES		1,464,709		1,471,104		1,471,991		(6,395)		(0.43)			(7,282)		(0.49)
STOCKHOLDERS' EQUITY
Common stock		34,181		34,100		34,022		81		0.24			159		0.47
Paid-in capital		80,576		80,220		79,879		356		0.44			697		0.87
Treasury stock		(13,647)		(10,032)		-		(3,615)		36.03			(13,647)		N/A
Retained earnings		115,813		111,451		97,407		4,362		3.91			18,406		18.90
Accumulated other comprehensive income (loss)		(3,683)		839		1,239		(4,522)		(538.97)			(4,922)		(397.26)
TOTAL STOCKHOLDERS' EQUITY		213,240		216,578		212,547		(3,338)		(1.54)			693		0.33
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY		$     1,677,949		$     1,687,682		$     1,684,538		$    (9,733)		(0.58)	%		$       (6,589)		(0.39)	%
Book value per common share		$           33.49		$           33.42		$           31.24		$       0.07		0.21	%		$          2.25		7.20	%
Tangible book value per common share1		$           31.75		$           31.69		$           29.52		$       0.06		0.20	%		$          2.23		7.55	%
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 March 31, 2022 and December 31, 2021 were comprised of the following:
		March 31,		December 31,
		2022		2021
		(Dollars in thousands)
Commercial real estate		$        830,113		$        771,028
Commercial and industrial		27,780		29,677
Construction		449,879		403,680
Residential first-lien mortgages		47,599		48,638
Home equity / consumer		7,394		7,685
PPP I (SBA loans)		4,352		6,641
PPP II (SBA loans)		32,378		73,099
Total loans		1,399,495		1,340,448
Deferred fees and costs		(4,340)		(5,285)
Allowance for loan losses		(16,654)		(16,620)
Loans, net		$     1,378,501		$     1,318,543
The components of deposits at March 31, 2022 and December 31, 2021 were as follows:
		March 31,		December 31,
		2022		2021
		(Dollars in thousands)
Demand, non-interest-bearing checking		$        273,679		$        286,247
Demand, interest-bearing		269,072		259,022
Savings		238,224		225,579
Money Markets		382,477		373,075
Time deposits		278,093		302,220
Total Deposits		$     1,441,545		$     1,446,143

 

The Bank of Princeton
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands except per share data)
			Three Months Ended March 31,
			2022		2021		$ Change		% Change
Interest and dividend income
	Loans and fees		$           16,492		$           16,328		$      164		1.0%
	Available-for-sale debt securities:
		Taxable	223		108		115		106.5%
		Tax-exempt	303		301		2		0.7%
	Held-to-maturity debt securities		3		4		(1)		-25.0%
	Other interest and dividend income		57		45		12		26.7%
		Total interest and dividends	17,078		16,786		292		1.7%
	Interest expense
		Deposits	1,224		2,030		(806)		-39.7%
		Borrowings	-		1		(1)		-100.0%
		Total interest expense	1,224		2,031		(807)		-39.7%
		Net interest income	15,854		14,755		1,099		7.4%
Provision for loan losses			-		1,125		(1,125)		-100.0%
Net interest income after provision for loan losses			15,854		13,630		2,224		16.3%
Non-interest income
	Gain on sale of securities available-for-sale, net		-		7		(7)		-100.0%
	Income from bank-owned life insurance		282		273		9		3.3%
	Fees and service charges		475		402		73		18.2%
	Loan fees, including prepayment penalities		95		126		(31)		-24.6%
	Other		194		55		139		252.7%
		Total non-interest income	1,046		863		183		21.2%
Non-interest expense
	Salaries and employee benefits		4,901		4,110		791		19.2%
	Occupancy and equipment		1,478		1,520		(42)		-2.8%
	Professional fees		561		662		(101)		-15.3%
	Data processing and communications		1,035		871		164		18.8%
	Federal deposit insurance		264		128		136		106.3%
	Advertising and promotion		119		50		69		138.0%
	Office expense		54		53		1		1.9%
	Other real estate owned expense		9		9		0		0.0%
	Core deposit intangible		154		174		(20)		-11.5%
	Other		693		682		11		1.6%
		Total non-interest expense	9,268		8,259		1,009		12.2%
Income before income tax expense			7,632		6,234		1,398		22.4%
Income tax expense			1,611		1,382		229		16.6%
Net income			$             6,021		$             4,852		1,169		24.1%
Net income per common share - basic			$              0.93		$              0.71		$     0.22		31.0%
Net income per common share - diluted			$              0.91		$              0.70		$     0.21		30.0%
Weighted average shares outstanding - basic			6,465		6,804		(339)		-5.0%
Weighted average shares outstanding - diluted			6,614		6,951		(337)		-4.8%

 

The Bank of Princeton
Consolidated Statements of Income (Current Quarter vs Prior Quarter)
(Unaudited)
(Dollars in thousands, except per share data)
			Quarter Ending
			March 31,		December 31,
			2022		2021		$ Change		% Change
Interest and dividend income
	Loans and fees		$       16,492		$       16,861		$       (369)		-2.2%
	Available-for-sale debt securities:
		Taxable	223		194		29		14.9%
		Tax-exempt	303		295		8		2.7%
	Held-to-maturity debt securities		3		3		0		0.0%
	Other interest and dividend income		57		58		(1)		-1.7%
		Total interest and dividends	17,078		17,411		(333)		-1.9%
	Interest expense
		Deposits	1,224		1,411		(187)		-13.3%
		Total interest expense	1,224		1,411		(187)		-13.3%
		Net interest income	15,854		16,000		(146)		-0.9%
Provision for loan losses			-		300		(300)		-100.0%
Net interest income after provision for loan losses			15,854		15,700		154		1.0%
Non-interest income
	Income from bank-owned life insurance		282		290		(8)		-2.8%
	Fees and service charges		475		473		2		0.4%
	Loan fees, including prepayment penalities		95		757		(662)		-87.5%
	Other		194		(53)		247		-466.0%
		Total non-interest income	1,046		1,467		(421)		-28.7%
Non-interest expense
	Salaries and employee benefits		4,901		4,667		234		5.0%
	Occupancy and equipment		1,478		1,521		(43)		-2.8%
	Professional fees		561		511		50		9.8%
	Data processing and communications		1,035		898		137		15.3%
	Federal deposit insurance		264		206		58		28.2%
	Advertising and promotion		119		42		77		183.3%
	Office expense		54		66		(12)		-18.2%
	Other real estate owned expense		9		151		(142)		-94.0%
	Core deposit intangible		154		154		0		0.0%
	Other		693		747		(54)		-7.2%
		Total non-interest expense	9,268		8,963		305		3.4%
Income before income tax expense			7,632		8,204		(572)		-7.0%
Income tax expense			1,611		2,021		(410)		-20.3%
Net income			$         6,021		$         6,183		$       (162)		-2.6%
Net income per common share - basic			$           0.93		$           0.94		$      (0.01)		-1.1%
Net income per common share - diluted			$           0.91		$           0.92		$      (0.01)		-1.1%
Weighted average shares outstanding - basic			6,465		6,538		(73)		-1.1%
Weighted average shares outstanding - diluted			6,614		6,694		(80)		-1.2%

 

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended March 31,
	2022				2021
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,346,733		4.97%		$    1,377,302		4.81%		$       (30,569)		0.16%
Securities
Taxable available-for-sale	52,221		1.73%		25,986		1.61%		26,235		0.12%
Tax-exempt available-for-sale	48,605		2.53%		48,540		2.51%		65		0.02%
Held-to-maturity	207		5.35%		215		5.27%		(8)		0.08%
Securities	101,033		2.12%		74,741		2.21%		26,292		-0.09%
Other interest-earning assets
Interest-earning bank accounts	122,774		0.14%		49,986		0.24%		72,788		-0.10%
Equities	1,353		3.91%		1,388		4.56%		(35)		-0.65%
Other interest-earning assets	124,127		0.18%		51,374		0.36%		72,753		-0.18%
Total interest-earning assets	1,571,893		4.41%		1,503,417		4.53%		68,476		-0.12%
Total non-earning assets	108,280				113,352
Total assets	$    1,680,173				$    1,616,769
Interest-bearing liabilities
Checking	$      257,978		0.25%		$      263,367		0.31%		$        (5,389)		-0.06%
Savings	232,136		0.24%		184,714		0.27%		47,422		-0.03%
Money market	376,517		0.27%		312,648		0.33%		63,869		-0.06%
Certificates of deposit	290,686		0.95%		368,692		1.59%		(78,006)		-0.64%
Total interest-bearing deposits	1,157,317		0.43%		1,129,421		0.73%		27,896		-0.30%
Non-interest-bearing deposits	285,298				248,661
Total  deposits	1,442,615		0.34%		1,378,082		0.60%		64,533		-0.26%
Borrowings	-		0.00%		478		0.32%		(478)		-0.32%
Total interest-bearing liabilities
(excluding non-interest deposits)	1,157,317		0.43%		1,129,899		0.73%		27,418		-0.30%
Non-interest-bearing deposits	285,298				248,661
Total cost of funds	1,442,615		0.34%		1,378,560		0.60%		64,055		-0.26%
Accrued expenses and other liabilities	20,505				26,915
Stockholders' equity	217,053				211,294
Total liabilities and stockholders' equity	$    1,680,173				$    1,616,769
Net interest spread			3.98%				3.80%
Net interest margin			4.09%				3.98%
Net interest margin (FTE)1			4.14%				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)
(Dollars in thousands)
	For the Quarter Ended
	March 31,  2022				December 31, 2021
	Average		Yield/		Average		Yield/
	balance		rate		balance		rate		$ Change		% Change
Earning assets
Loans	$    1,346,733		4.97%		$       1,347,511		4.96%		$          (778)		0.01%
Securities
Taxable available-for-sale	52,221		1.73%		50,124		1.56%		2,097		0.17%
Tax-exempt available-for-sale	48,605		2.53%		47,562		2.47%		1,043		0.06%
Held-to-maturity	207		5.35%		209		5.27%		(2)		0.08%
Securities	101,033		2.12%		97,895		2.01%		3,138		0.11%
Other interest-earning assets
Interest-earning bank accounts	122,774		0.14%		157,550		0.11%		(34,776)		0.03%
Equities	1,353		3.91%		1,338		3.99%		15		-0.08%
Other interest-earning assets	124,127		0.18%		158,888		0.15%		(34,761)		0.03%
Total interest-earning assets	1,571,893		4.41%		1,604,294		4.31%		(32,401)		0.10%
Total non-earning assets	108,280				102,987
Total assets	$    1,680,173				$       1,707,281
Interest-bearing liabilities
Checking	$      257,978		0.25%		$         274,944		0.26%		$      (16,966)		-0.01%
Savings	232,136		0.24%		223,590		0.23%		8,546		0.01%
Money market	376,517		0.27%		367,493		0.27%		9,024		0.00%
Certificates of deposit	290,686		0.95%		312,634		1.09%		(21,948)		-0.14%
Total interest-bearing deposits	1,157,317		0.43%		1,178,661		0.48%		(21,344)		-0.05%
Non-interest-bearing deposits	285,298				288,292
Total  deposits	1,442,615		0.34%		1,466,953		0.38%		(24,338)		-0.04%
Total interest-bearing liabilities
(excluding non-interest deposits)	1,157,317		0.43%		1,178,661		0.48%		(21,344)		-0.05%
Non-interest-bearing deposits	285,298				288,292
Total cost of funds	1,442,615		0.34%		1,466,953		0.38%		(24,338)		-0.04%
Accrued expenses and other liabilities	20,505				24,056
Stockholders' equity	217,053				216,272
Total liabilities and stockholders' equity	$    1,680,173				$       1,707,281
Net interest spread			3.98%				3.83%
Net interest margin			4.09%				3.96%
Net interest margin (FTE)1			4.14%				4.02%
1Includes federal and state tax effect of tax exempt securities and loans.

 

The Bank of Princeton
Quarterly Financial Highlights
(Unaudited)
	2022		2021		2021		2021		2021
	March		December		September		June		March
Return on average assets	1.45%		1.44%		1.41%		1.34%		1.21%
Return on average equity	11.25%		11.34%		10.95%		10.36%		9.31%
Return on average tangible equity1	11.86%		11.97%		11.56%		10.95%		9.86%
Net interest margin	4.09%		3.96%		4.08%		4.06%		3.98%
Net interest margin (FTE)2	4.14%		4.02%		4.14%		4.12%		4.09%
Efficiency ratio - Non-GAAP3	53.93%		50.43%		48.16%		50.87%		51.79%
Common Stock Data
Market value at period end	$     28.85		$     29.33		$     29.87		$     28.67		$     28.62
Market range:
High	$     32.05		$     30.89		$     20.45		$     23.91		$     32.25
Low	$     28.67		$     28.71		$     17.40		$     17.51		$     19.09
Book value per common share at period end	$     33.49		$     33.42		$     30.26		$     29.85		$     29.39
Tangible book value per common share at period end4	$     31.75		$     31.96		$     28.48		$     28.04		$     27.56
Shares of common stock outstanding (in thousands)	6,366		6,480		6,588		6,659		6,804
CAPITAL RATIOS
Total Capital (to risk-weighted assets)	14.16%		15.10%		15.60%		15.33%		15.73%
Tier 1 Capital (to risk-weighted assets)	13.10%		13.97%		14.43%		14.19%		14.56%
Tier 1 Capital (to average assets)	12.36%		12.06%		12.29%		12.22%		12.45%
Period-end equity to assets	12.71%		12.84%		12.89%		13.01%		12.62%
Period-end tangible equity to tangible assets	12.13%		12.26%		12.23%		12.40%		11.92%
CREDIT QUALITY DATA AT PERIOD END
(Dollars in thousands)
Net charge-offs (recoveries)	($34)		$101		$821		$1,000		$1,100
Annualized net charge-offs (recoveries) to average loans	-0.010%		0.030%		0.240%		0.279%		0.319%
Total nonperforming loans (TDRs not included)	406		$       422		$     1,043		$     2,381		$     2,498
Other real estate owned	226		226		376		446		446
Troubled debt restructurings (TDRs)
-Performing	6,066		6,122		6,187		6,241		8,533
-Non-performing	766		766		1,092		1,332		-
Total nonperforming assets and accruing TDRs	$     7,464		$     7,536		$     8,698		$   10,400		$   11,477
Allowance for credit losses as a percent of:
Period-end loans	1.19%		1.24%		1.22%		1.14%		1.10%
Nonaccrual loans	1420.99%		1398.99%		769.13%		491.03%		781.77%
Nonperforming assets	1191.27%		1175.39%		653.96%		432.05%		642.19%
As a percent of total loans:
Nonaccrual loans	0.08%		0.09%		0.16%		0.23%		0.14%
Accruing TDRs	0.43%		0.46%		0.46%		0.45%		0.59%
Nonaccrual loans and accruing TDRs	0.52%		0.55%		0.62%		0.71%		0.77%
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 is a non-GAAP measure that represents the ratio of non-interest expense (excluding amortization of core deposit intangible)
divided by 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.

 

Contact George Rapp
609.454.0718
grapp@thebankofprinceton.com

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SOURCE The Bank of Princeton

FAQ

What were the Bank of Princeton's Q1 2022 financial results?

The Bank reported a net income of $6.0 million, or $0.91 per diluted share.

How did the Bank of Princeton's net income compare to previous quarters?

Net income decreased from $6.2 million in Q4 2021 but increased from $4.9 million in Q1 2021.

What is the nonperforming loans ratio for BPRN?

The nonperforming loans ratio was 0.08% as of March 31, 2022.

Did the Bank of Princeton conduct any stock buybacks in Q1 2022?

Yes, the Bank initiated a second 5% stock buyback program, purchasing 124,440 shares.

What caused the decrease in the Bank of Princeton's net income in Q1 2022?

The decrease was primarily due to a $146 thousand reduction in net-interest income and a $421 thousand decrease in non-interest income.