The Bank of Princeton Announces Third Quarter 2022 Results

Rhea-AI Summary

The Bank of Princeton (BPRN) reported a net income of $7.0 million for Q3 2022, a 17.7% increase from Q3 2021, driven by higher net interest income and reduced loan loss provisions. Total assets decreased by 5.0% to $1.60 billion, primarily due to lower cash and cash equivalents. Non-performing loans remained low at 0.05%. The bank's net interest margin was 4.64%, up 45 basis points from the previous quarter. Stock repurchases progressed with 315,058 shares bought back, completing almost the entire buyback program.

Positive

• Q3 2022 net income increased by $1.0 million or 17.7% compared to Q3 2021.
• Net interest income rose by $1.4 million compared to Q2 2022, totaling $17.7 million.
• Provision for loan losses decreased significantly, reflecting improved asset quality.
• Non-interest income grew by $595 thousand, marking a 53.5% increase from Q2 2022.
• Low ratio of non-performing loans at 0.05%.

Negative

• Total assets decreased by $84.6 million, or 5.0% compared to December 31, 2021.
• Total deposits fell by $79.1 million, or 5.5% compared to December 31, 2021.
• Non-interest expenses rose by $1.6 million, or 18.4% compared to Q3 2021.

PRINCETON, N.J., Oct. 20, 2022 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ: BPRN) today reported its unaudited financial condition and results of operations at and for the quarter ended September 30, 2022.  The Bank reported net income of $7.0 million, or $1.09 per diluted common share, for the third quarter of 2022, compared to net income of $6.3 million, or $0.98 per diluted common share, for the second quarter of 2022, and net income of $5.9 million, or $0.88 per diluted common share, for the third quarter of 2021. The increase in net income, when compared to the three months ended June 30, 2022, was primarily due to an increase of $1.4 million in net interest income and a $595 thousand increase in non-interest income, partially offset by a $697 thousand increase in non-interest expenses and a $459 thousand increase income tax expense. The increase in net income, when comparing it to the three months ended September 30, 2021, was primarily due to an increase in net interest income of $1.6 million, a $1.0 million decrease in the provision for loan losses and a $389 thousand increase in non-interest income, partially offset by a $1.6 million increase in non-interest expenses and a $350 thousand increase in income tax expense.   For the nine-month period ended September 30, 2022, the Bank recorded net income of $19.3 million, or $2.98 per diluted common share, compared to $16.3 million, or $2.38 per diluted common share for the same period in 2021, primarily due to a $3.2 million increase in net interest income a $3.1 million decrease in the Bank's provision for loan losses, and a $666 thousand increase in non-interest income, partially offset by a $3.3 million increase in non-interest expenses and an increase in income taxes of $676 thousand.

Highlights for the three and nine month periods ended September 30, 2022 are as follows:

• During the nine months ended September 30, 2022, the Bank purchased 315,058 shares of common stock nearly completing the authorized 324,017 shares of common stock from the 5% stock buyback program that commenced in 2022 at a weighted average price of $29.07.
• Net income for the third quarter of 2022 increased $1.0 million or 17.7% over the same period in 2021.
• The Bank maintained its low total cost of funds on deposits at 40 basis points for the third quarter of 2022, down 8 basis points from the same period in 2021.
• The ratio of nonperforming loans to total loans continues to be low at 0.05% as of September 30, 2022, compared to 0.09% at December 31, 2021 and 0.11% at September 30, 2021.

President/CEO Edward Dietzler noted that, "The Bank's earnings performance continues to increase, propelled by a strong net interest margin of 4.64% for the quarter and strong credit quality."

Balance Sheet Review

Total assets were $1.60 billion at September 30, 2022, a decrease of $84.6 million, or 5.0% 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 $110.8 million and a $19.0 million decrease in available-for-sale securities, partially offset by an increase of $43.2 million in net loans.  The increase in net loans primarily consisted of a $117.6 million increase in commercial real estate loans, partially offset by a decrease of $71.7 million in Payroll Protection Program ("PPP") loans which are no longer being offered by the SBA.

Total deposits at September 30, 2022 decreased $79.1 million, or 5.5%, when compared to December 31, 2021.  When comparing deposit products between the two periods, money market deposits decreased $49.0 million, interest-bearing demand deposits decreased $25.1 million, savings decreased $12.1 million, certificates of deposit decreased $6.1 million and non-interest-bearing demand deposits increased $13.1 million. In addition, the Bank had no outstanding borrowings at September 30, 2022 and December 31, 2021.  

Total stockholders' equity at September 30, 2022 decreased $4.1 million or 1.9% when compared to the end of 2021. This decrease was primarily due to the $9.2 million of common stock repurchased pursuant to the 2022 buyback program, and a $10.8 million change in the accumulated other comprehensive income (loss) on the available-for-sale investment portfolio associated with an increase in unrealized losses due to the increase in interest rates.  These decreases were partially offset by a $14.4 million increase in retained earnings consisting of $19.3 million of net income less $4.9 million of cash dividends recorded during the period. The ratio of equity to total assets at September 30, 2022 and at December 31, 2021, was $13.3% and 12.8%, respectively.  

Asset Quality

At September 30, 2022, non-performing assets were $729 thousand, a decrease of $672 thousand, or 48.0%, when compared to the amount at December 31, 2021.  This decrease was primarily due to the sale of an other real estate owned property in the amount of $226 thousand and a $400 thousand write-down of a non-performing loan.  Troubled debt restructurings ("TDRs") totaled $6.3 million at September 30, 2022 and $6.9 million at December 31, 2021. Three TDR loans totaling $5.9 million are performing in accordance with the agreed-upon terms and there is one TDR loan in non-accrual status as of September 30, 2022.  

Review of Quarterly and Year-to-Date Financial Results

Net interest income was $17.7 million for the third quarter of 2022, compared to $16.3 million for the second quarter of 2022 and $16.1 million for the third quarter of 2021.  The increase from the previous quarter was the result of an increase in interest income of $1.6 million, or 9.4%, partially offset by an increase in interest expense of $226 thousand.  The net interest margin for the third quarter 2022 was 4.64%, increasing 45 basis points when compared to the second quarter of 2022. This increase was primarily associated with an increase of 52 basis points in the yield on earning assets. When comparing the same three-month period ended September 30, 2022 and 2021, net interest income increased $1.6 million, which was primarily due to an increase of 54 basis points in the yield earned on interest-earning assets. For the nine-month period ended September 30, 2022, net interest income was $49.8 million compared to $46.6 million for the nine-month period ended September 30, 2021.  The increase from the previous nine-month period was the result of an increase in interest income of $1.8 million, or 3.4% and a decrease in interest expense of $1.5 million, or 28.0%.  The rate on total deposits, for the three-month periods ended September 30, 2022 and 2021 was 0.40% and 0.48%, respectively.  For the nine-month periods ended September 30, 2022 and 2021, the rate on total deposits was 0.36% and 0.50%, respectively.

The Bank recorded a provision for loan losses of $200 thousand during the three-month period ended September 30, 2022 and since no provision had been recorded earlier in the year, the nine-month period reflects the same $200 thousand.  The comparable amounts were $1.2 million and $3.3 million for the three months and nine months ended September 30, 2021, respectively. The primary reasons for the provisions for loan losses during the 2021 periods were charge-offs in the amounts of $821 thousand and $1.8 million, respectively.  Net charge-offs for the three-month and nine-month periods ended September 30, 2022 were $200 thousand and $154 thousand, respectively.  The Bank did not make any material changes to the qualitative factors used in determining the level of general reserve needed for management's assessment of the credit quality in the loan portfolio.  The coverage ratio of allowance for loan losses to period end loans was 1.21% (excluding PPP loans it was 1.21%) at September 30, 2022, compared to 1.24% (excluding PPP loans it was 1.32%) at December 31, 2021.

Total non-interest income for the third quarter of 2022 increased $595 thousand and $389 thousand to $1.7 million, or by 53.5% and 29.5% when compared to the quarter ended June 30, 2022 and the quarter ended September 30,2021, respectively. The increase over the prior quarter was to primarily due to a $547 thousand increase in loan fees and a $74 thousand increase in other non-interest income. The increase over the 2021 period was primarily due to a $214 thousand increase in loan fees and a $148 thousand increase in other non-interest income. For the nine-month period ended September 30, 2022, non-interest income increased $666 thousand, or 20.8%, from the same nine-month period in 2021, primarily due to a $248 thousand increase in loan fees and a $247 thousand increase in other non-interest income.

Total non-interest expense for the third quarter of 2022 increased $1.6 million, or 18.4%, when compared to the same period in 2021.  This increase was primarily due to a $1.1 million increase in salaries and benefits expenses, a $206 thousand increase in professional fees and a $139 thousand increase in data processing and communications expenses. When comparing the quarter ended September 30, 2022 to the immediately preceding quarter, non-interest expense increased $697 thousand, or 7.4%, primarily due to increases salaries and employee benefits costs, professional fees and occupancy and equipment expenses, partially offset by a decrease in other real estate owned expenses. For the nine-month period ended September 30, 2022, non-interest expense was $28.8 million, compared to $25.5 million for the same period in 2021. This increase was primarily due to increases in salaries and benefits expenses and data processing and communications costs.

For the three-month period ended September 30, 2022, the Bank recorded an income tax expense of $2.1 million, resulting in an effective tax rate of 23.2%, compared to an income tax expense of $1.6 million resulting in an effective tax rate of 20.6% for the three-month period ended June 30, 2022, and compared to an income tax expense of $1.8 million resulting in an effective tax rate of 22.8% for the three-month period ended September 30, 2021.  For the nine-month periods ended September 30, 2022 and 2021, the income tax expenses were $5.4 million (effective tax rate of 21.7%) and $4.7 million (effective tax rate of 22.3%), respectively.

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)
								September 30, 2022 vs					September 30, 2022 vs
		September 30,		December 31,		September 30,		December 31, 2021					September 30, 2021
		2022		2021		2021		$ Change		% Change			$ Change		% Change
ASSETS
Cash and cash equivalents		$         47,965		$       158,716		$       144,184		$ (110,751)		(69.78)	%		$     (96,219)		(66.73)	%
Securities available-for-sale taxable		43,041		51,690		46,522		(8,649)		(16.73)			(3,481)		(7.48)
Securities available-for-sale tax-exempt		39,112		49,468		46,345		(10,356)		(20.93)			(7,233)		(15.61)
Securities held-to-maturity		203		208		210		(5)		(2.40)			(7)		(3.33)
Loans receivable, net of deferred		1,378,426		1,335,163		1,342,670		43,263		3.24			35,756		2.66
Allowance for loan losses		(16,666)		(16,620)		(16,421)		(46)		0.28			(245)		1.49
Goodwill		8,853		8,853		8,853		-		-			-		-
Core deposit intangible		1,958		2,393		2,547		(435)		(18.18)			(589)		(23.13)
Other assets		100,158		97,811		94,284		2,347		2.40			5,874		6.23
TOTAL ASSETS		$     1,603,050		$     1,687,682		$     1,669,194		$  (84,632)		(5.01)	%		$     (66,144)		(3.96)	%
LIABILITIES
Non-interest checking		$       299,389		$       286,247		$       274,766		$    13,142		4.59	%		$      24,623		8.96	%
Interest checking		233,969		259,022		249,563		(25,053)		(9.67)			(15,594)		(6.25)
Savings		213,522		225,579		223,188		(12,057)		(5.34)			(9,666)		(4.33)
Money market		324,037		373,075		361,052		(49,038)		(13.14)			(37,015)		(10.25)
Time deposits over $250,000		46,810		33,741		39,270		13,069		38.73			7,540		19.20
Other time deposits		249,287		268,479		283,055		(19,192)		(7.15)			(33,768)		(11.93)
Total deposits		1,367,014		1,446,143		1,430,894		(79,129)		(5.47)			(63,880)		(4.46)
Borrowings		-		-		-		-		N/A			-		N/A
Other liabilities		23,518		24,961		23,116		(1,443)		(5.78)			402		1.74
TOTAL LIABILITIES		1,390,532		1,471,104		1,454,010		(80,572)		(5.48)			(63,478)		(4.37)
STOCKHOLDERS' EQUITY
Common stock		34,535		34,100		34,082		435		1.28			453		1.33
Paid-in capital		81,241		80,220		80,112		1,021		1.27			1,129		1.41
Treasury stock		(19,190)		(10,032)		(6,618)		(9,158)		91.29			(12,572)		N/A
Retained earnings		125,878		111,451		106,455		14,427		12.94			19,423		18.25
Accumulated other comprehensive income (loss)		(9,946)		839		1,153		(10,785)		(1,285.46)			(11,099)		(962.62)
TOTAL STOCKHOLDERS' EQUITY		212,518		216,578		215,184		(4,060)		(1.87)			(2,666)		(1.24)
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY		$     1,603,050		$     1,687,682		$     1,669,194		$  (84,632)		(5.01)	%		$     (66,144)		(3.96)	%
Book value per common share		$           34.00		$           33.42		$           32.66		$       0.58		1.73	%		$          1.34		4.10	%
Tangible book value per common share1		$           32.27		$           31.69		$           30.93		$       0.58		1.85	%		$          1.34		4.33	%
1Tangible book value per common share is a non-GAAP measure that represents book value per common share which excludes goodwill and core deposit intangible.

 

	The Bank of Princeton
	Loan and Deposit Tables
	(Unaudited)
	The components of loans receivable, net at September 30, 2022 and December 31, 2021 were as follows:
			September 30,		December 31,
			2022		2021
			(In thousands)
	Commercial real estate		$        888,590		$        771,028
	Commercial and industrial		27,961		29,677
	Construction		404,017		403,680
	Residential first-lien mortgages		45,487		48,638
	Home equity / consumer		7,392		7,685
	PPP I (SBA loans)		4,167		6,641
	PPP II (SBA loans)		3,830		73,099
	Total loans		1,381,444		1,340,448
	Deferred fees and costs		(3,018)		(5,285)
	Allowance for loan losses		(16,666)		(16,620)
	Loans, net		$     1,361,760		$     1,318,543
	The components of deposits at September 30, 2022 and December 31, 2021 were as follows:
			September 30,		December 31,
			2022		2021
			(In thousands)
	Demand, non-interest-bearing		$        299,389		$        286,247
	Demand, interest-bearing		233,969		259,022
	Savings		213,522		225,579
	Money markets		324,037		373,075
	Time deposits		296,097		302,220
	Total deposits		$     1,367,014		$     1,446,143

 

	The Bank of Princeton
	Consolidated Statements of Income
	(Unaudited)
	(Amounts in thousands except per share data)
				Three Months Ended September 30,
				2022		2021		$ Change		% Change
	Interest and dividend income
		Loans and fees		$              18,336		$              17,181		$    1,155		6.7 %
		Available-for-sale debt securities:
			Taxable	241		133		108		81.2 %
			Tax-exempt	286		287		(1)		-0.3 %
		Held-to-maturity debt securities		2		2		0		0.0 %
		Other interest and dividend income		226		53		173		326.4 %
			Total interest and dividends	19,091		17,656		1,435		8.1 %
	Interest expense
			Deposits	1,392		1,545		(153)		-9.9 %
			Borrowing	3		-		3		N/A
			Total interest expense	1,395		1,545		(150)		-9.7 %
	Net interest income			17,696		16,111		1,585		9.8 %
	Provision for loan losses			200		1,200		(1,000)		-83.3 %
	Net interest income after provision for loan losses			17,496		14,911		2,585		17.3 %
	Non-interest income
		Income from bank-owned life insurance		287		276		11		4.0 %
		Fees and service charges		469		453		16		3.5 %
		Loan fees, including prepayment penalties		850		636		214		33.6 %
		Other		101		(47)		148		-314.9 %
			Total non-interest income	1,707		1,318		389		29.5 %
	Non-interest expense
		Salaries and employee benefits		5,442		4,342		1,100		25.3 %
		Occupancy and equipment		1,539		1,492		47		3.2 %
		Professional fees		786		580		206		35.5 %
		Data processing and communications		1,043		904		139		15.4 %
		Federal deposit insurance		249		220		29		13.2 %
		Advertising and promotion		140		59		81		137.3 %
		Office expense		52		56		(4)		-7.1 %
		Other real estate owned expense		-		80		(80)		-100.0 %
		Core deposit intangible		135		155		(20)		-12.9 %
		Other		739		661		78		11.8 %
			Total non-interest expense	10,125		8,549		1,576		18.4 %
	Income before income tax expense			9,078		7,680		1,398		18.2 %
	Income tax expense			2,103		1,753		350		20.0 %
	Net income			$               6,975		$               5,927		1,048		17.7 %
	Net income per common share - basic			$                 1.12		$                 0.89		$     0.23		25.8 %
	Net income per common share - diluted			$                 1.09		$                 0.88		$     0.21		23.9 %
	Weighted average shares outstanding - basic			6,269		6,836		(567)		-8.3 %
	Weighted average shares outstanding - diluted			6,378		6,896		(518)		-7.5 %

 

	The Bank of Princeton
	Consolidated Statements of Income (Current Quarter vs Prior Quarter)
	(Unaudited)
	(Amounts in thousands, except per share data)
				Three Months Ended
				September 30,		June 30,
				2022		2022		$ Change		% Change
	Interest and dividend income
		Loans and fees		$       18,336		$       16,768		$      1,568		9.4 %
		Available-for-sale debt securities:
			Taxable	241		234		7		3.0 %
			Tax-exempt	286		293		(7)		-2.4 %
		Held-to-maturity debt securities		2		3		(1)		-33.3 %
		Other interest and dividend income		226		158		68		43.0 %
			Total interest and dividends	19,091		17,456		1,635		9.4 %
	Interest expense
			Deposits	1,392		1,169		223		19.1 %
			Borrowing	3		-		3		N/A
			Total interest expense	1,395		1,169		226		19.3 %
	Net interest income			17,696		16,287		1,409		8.7 %
	Provision for loan losses			200		-		200		0.0 %
	Net interest income after provision for loan losses			17,496		16,287		1,209		7.4 %
	Non-interest income
		Gain on sale of securities available for sale, net		-		2		(2)		-100.0 %
		Income from bank-owned life insurance		287		283		4		1.4 %
		Fees and service charges		469		497		(28)		-5.6 %
		Loan fees, including prepayment penalties		850		303		547		180.5 %
		Other		101		27		74		274.1 %
			Total non-interest income	1,707		1,112		595		53.5 %
	Non-interest expense
		Salaries and employee benefits		5,442		4,908		534		10.9 %
		Occupancy and equipment		1,539		1,429		110		7.7 %
		Professional fees		786		582		204		35.1 %
		Data processing and communications		1,043		1,056		(13)		-1.2 %
		Federal deposit insurance		249		276		(27)		-9.8 %
		Advertising and promotion		140		120		20		16.7 %
		Office expense		52		62		(10)		-16.1 %
		Other real estate owned expense		-		2		(2)		-100.0 %
		Loss on sale of other real estate owned		-		101		(101)		-100.0 %
		Core deposit intangible		135		145		(10)		-6.9 %
		Other		739		747		(8)		-1.1 %
			Total non-interest expense	10,125		9,428		697		7.4 %
	Income before income tax expense			9,078		7,971		1,107		13.9 %
	Income tax expense			2,103		1,644		459		27.9 %
	Net income			$         6,975		$         6,327		$        648		10.2 %
	Net income per common share - basic			$           1.12		$           1.00		$       0.12		12.0 %
	Net income per common share - diluted			$           1.09		$           0.98		$       0.11		11.2 %
	Weighted average shares outstanding - basic			6,269		6,305		(36)		-0.6 %
	Weighted average shares outstanding - diluted			6,378		6,437		(59)		-0.9 %

 

The Bank of Princeton
Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except per share data)
			Nine Months Ended
			September 30,
			2022		2021		$ Change		% Change
Interest and dividend income
	Loans and fees		$ 51,596		$  50,487		$       1,109		2.2 %
	Available-for-sale debt securities:
		Taxable	698		353		345		97.7 %
		Tax-exempt	882		877		5		0.6 %
	Held-to-maturity debt securities		8		8		-		0.0 %
	Other interest and dividend income		441		139		302		217.3 %
		Total interest and dividends	53,625		51,864		1,761		3.4 %
Interest expense
		Deposits	3,785		5,261		(1,476)		-28.1 %
		Borrowings	3		2		1		50.0 %
		Total interest expense	3,788		5,263		(1,475)		-28.0 %
Net interest income			49,837		46,601		3,236		6.9 %
Provision for loan losses			200		3,325		(3,125)		-94.0 %
Net interest income after provision for loan losses			49,637		43,276		6,361		14.7 %
Non-Interest income
	Gain on sale of securities available-for-sale, net		2		7		(5)		-71.4 %
	Income from bank-owned life insurance		852		826		26		3.1 %
	Fees and service charges		1,441		1,291		150		11.6 %
	Loan fees, including prepayment penalties		1,248		1,000		248		24.8 %
	Other		322		75		247		329.3 %
		Total non-interest income	3,865		3,199		666		20.8 %
Non-interest expense
	Salaries and employee benefits		15,251		12,816		2,435		19.0 %
	Occupancy and equipment		4,446		4,534		(88)		-1.9 %
	Professional fees		1,929		1,920		9		0.5 %
	Data processing and communications		3,134		2,664		470		17.6 %
	Federal deposit insurance		788		586		202		34.5 %
	Advertising and promotion		379		172		207		120.3 %
	Office expense		168		153		15		9.8 %
	Other real estate owned expense		112		-		112		N/A
	Loss on sale of other real estate owned		-		90		(90)		N/A
	Core deposit intangible		434		489		(55)		-11.2 %
	Other		2,180		2,066		114		5.5 %
		Total non-interest expense	28,821		25,490		3,331		13.1 %
Income before income tax expense			24,681		20,985		3,696		17.6 %
Income tax expense			5,358		4,682		676		14.4 %
Net income			$ 19,323		$  16,303		$       3,020		18.5 %
Net income per common share - basic			$    3.05		$     2.43		$        0.62		25.5 %
Net income per common share - diluted			$    2.98		$     2.38		$        0.60		25.2 %
Weighted average shares outstanding - basic			6,345		6,710		(365)		-5.4 %
Weighted average shares outstanding - diluted			6,475		6,854		(379)		-5.5 %

 

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended September 30,
	2022				2021
	Average		Yield/		Average		Yield/
	Balance		Rate		Balance		Rate		$ Change		% Change
Earning assets
Loans	$     1,386,589		5.25 %		$    1,367,980		4.98 %		$        18,609		0.27 %
Securities
Taxable available-for-sale	46,281		2.06 %		33,953		1.51 %		12,328		0.55 %
Tax-exempt available-for-sale	42,220		2.68 %		46,510		2.47 %		(4,290)		0.21 %
Held-to-maturity	204		5.24 %		211		5.27 %		(7)		-0.03 %
Securities	88,704		2.37 %		80,674		2.07 %		8,030		0.30 %
Other interest earning assets
Interest-bearing bank accounts	35,081		2.28 %		116,910		0.13 %		(81,829)		2.15 %
Equities	1,322		5.85 %		1,338		3.93 %		(16)		1.92 %
Other interest-earning assets	36,403		2.41 %		118,248		0.18 %		(81,845)		2.23 %
Total interest-earning assets	1,511,697		5.01 %		1,566,902		4.47 %		(55,205)		0.54 %
Total non-earning assets	115,158				95,130
Total assets	$     1,626,856				$    1,662,032
Interest-bearing liabilities
Checking	$        240,948		0.29 %		$      260,813		0.26 %		$       (19,865)		0.03 %
Savings	217,133		0.32 %		214,406		0.24 %		2,727		0.08 %
Money market	350,901		0.43 %		346,330		0.47 %		4,571		-0.04 %
Certificates of deposit	289,274		0.86 %		329,117		1.21 %		(39,843)		-0.35 %
Total interest-bearing deposits	1,098,256		0.51 %		1,150,666		0.53 %		(52,410)		-0.02 %
Non-interest bearing deposits	285,665				272,097
Total  deposits	1,383,921		0.40 %		1,422,763		0.48 %		(38,842)		-0.08 %
Borrowings	391		2.65 %		-		0.32 %		391		2.33 %
Total interest-bearing liabilities
(excluding non interest deposits)	1,098,647		0.51 %		1,150,666		0.53 %		(52,019)		-0.02 %
Non-interest-bearing deposits	285,665				272,097
Total cost of funds	1,384,312		0.40 %		1,422,763		0.43 %		(38,451)		-0.03 %
Accrued expenses and other liabilities	28,136				24,480
Stockholders' equity	214,408				214,789
Total liabilities and stockholders' equity	$     1,626,856				$    1,662,032
Net interest spread			4.50 %				3.94 %
Net interest margin			4.64 %				4.08 %
Net interest margin (FTE)1			4.71 %				4.14 %
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 Three Months Ended
	September 30, 2022				June 30, 2022
	Average		Yield/		Average		Yield/
	Balance		Rate		Balance		Rate		$ Change		% Change
Earning assets
Loans	$    1,386,589		5.25 %		$       1,391,937		4.85 %		$        (5,348)		0.40 %
Securities
Taxable available-for-sale	46,281		2.06 %		48,590		1.93 %		(2,309)		0.14 %
Tax-exempt available-for-sale	42,220		2.68 %		43,742		2.68 %		(1,522)		0.01 %
Held-to-maturity	204		5.24 %		205		5.29 %		(1)		-0.05 %
Securities	88,704		2.37 %		92,537		2.29 %		(3,833)		0.08 %
Other interest earning assets
Interest-bearing bank accounts	35,081		2.28 %		72,786		0.78 %		(37,705)		1.50 %
Equities	1,322		5.85 %		1,307		5.14 %		15		0.71 %
Other interest-earning assets	36,403		2.41 %		74,093		0.86 %		(37,690)		1.56 %
Total interest-earning assets	1,511,697		5.01 %		1,558,567		4.49 %		(46,870)		0.52 %
Total non-earning assets	115,158				107,194
Total assets	$    1,626,856				$       1,665,761
Interest-bearing liabilities
Checking	$      240,948		0.29 %		$         273,114		0.26 %		$      (32,166)		0.03 %
Savings	217,133		0.32 %		230,493		0.24 %		(13,360)		0.08 %
Money market	350,901		0.43 %		368,704		0.29 %		(17,803)		0.14 %
Certificates of deposit	289,274		0.86 %		277,621		0.86 %		11,653		0.00 %
Total interest-bearing deposits	1,098,256		0.51 %		1,149,932		0.41 %		(51,676)		0.10 %
Non-interest bearing deposits	285,665				278,963
Total  deposits	1,383,921		0.40 %		1,428,895		0.33 %		(44,974)		0.07 %
Borrowings	391		2.65 %		-		0.32 %		391		2.33 %
Total interest-bearing liabilities
(excluding non interest deposits)	1,098,647		0.51 %		1,149,932		0.41 %		(51,285)		0.10 %
Non-interest-bearing deposits	285,665				278,963
Total cost of funds	1,384,312		0.40 %		1,428,895		0.33 %		(44,583)		0.07 %
Accrued expenses and other liabilities	28,136				23,534
Stockholders' equity	214,408				213,332
Total liabilities and stockholders' equity	$    1,626,856				$       1,665,761
Net interest spread			4.50 %				4.08 %
Net interest margin			4.64 %				4.19 %
Net interest margin (FTE)1			4.71 %				4.24 %
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 Nine Months Ended September 30,
	2022				2021
	Average		Yield/		Average		Yield/
	Balance		Rate		Balance		Rate		$ Change		% Change
Earning assets
Loans	$    1,375,233		5.02 %		$    1,393,122		4.85 %		$        (17,889)		0.17 %
Securities
Taxable available-for-sale	47,626		1.96 %		28,306		1.66 %		19,320		0.30 %
Tax-exempt available-for-sale	44,832		2.63 %		47,204		2.48 %		(2,372)		0.15 %
Held-to-maturity	205		5.29 %		213		5.27 %		(8)		0.02 %
Securities	92,664		2.29 %		75,723		2.18 %		16,941		0.11 %
Other interest earning assets
Interest-bearing bank accounts	76,559		0.68 %		71,289		0.19 %		5,270		0.49 %
Equities	1,327		4.96 %		1,376		4.29 %		(49)		0.67 %
Other interest-earning assets	77,887		0.44 %		72,665		0.26 %		5,222		0.18 %
Total interest-earning assets	1,545,783		4.64 %		1,541,510		4.50 %		4,273		0.14 %
Total non-earning assets	112,573				100,970
Total assets	$    1,658,356				$    1,642,480
Interest-bearing liabilities
Checking	$      257,284		0.26 %		$      259,932		0.28 %		$          (2,648)		-0.02 %
Savings	226,532		0.26 %		199,789		0.26 %		26,743		0.00 %
Money market	374,570		0.34 %		330,605		0.31 %		43,965		0.03 %
Certificates of deposit	285,855		0.91 %		344,526		1.39 %		(58,671)		-0.48 %
Total interest-bearing deposits	1,144,242		0.42 %		1,134,852		0.62 %		9,390		-0.20 %
Non-interest bearing deposits	280,761				268,194
Total  deposits	1,425,004		0.36 %		1,403,046		0.50 %		21,958		-0.14 %
Borrowings	132		2.65 %		361		0.32 %		(229)		2.33 %
Total interest-bearing liabilities
(excluding non interest deposits)	1,144,374		0.45 %		1,135,213		0.62 %		9,161		-0.17 %
Non-interest-bearing deposits	280,761				268,194
Total cost of funds	1,425,135		0.36 %		1,403,407		0.50 %		21,728		-0.14 %
Accrued expenses and other liabilities	18,680				25,947
Stockholders' equity	214,541				213,126
Total liabilities and stockholders' equity	$    1,658,356				$    1,642,480
Net interest spread			4.19 %				3.88 %
Net interest margin			4.31 %				4.04 %
Net interest margin (FTE)1			4.37 %				4.10 %
1Includes federal and state tax effect of tax-exempt securities and loans.

 

The Bank of Princeton
Quarterly Financial Highlights
(Unaudited)
	2022		2022		2022		2021		2021
	September		June		March		December		September
Return on average assets	1.70 %		1.52 %		1.45 %		1.44 %		1.41 %
Return on average equity	12.91 %		11.90 %		11.25 %		11.34 %		10.95 %
Return on average tangible equity1	13.59 %		12.54 %		11.86 %		11.97 %		11.56 %
Net interest margin	4.64 %		4.19 %		4.09 %		3.96 %		4.08 %
Net interest margin (FTE)2	4.71 %		4.24 %		4.14 %		4.02 %		4.14 %
Efficiency ratio - non-GAAP3	51.49 %		53.36 %		53.93 %		50.43 %		48.16 %
COMMON STOCK DATA
Market value at period end	$     28.35		$     27.46		$     28.85		$     29.33		$     29.87
Market range:
High	$     29.95		$     30.55		$     32.05		$     30.89		$     20.45
Low	$     27.16		$     26.57		$     28.67		$     28.71		$     17.40
Book value per common share at period end	$     34.00		$     33.74		$     33.49		$     33.42		$     32.66
Tangible book value per common share at period end4	$     32.27		$     32.00		$     31.75		$     31.96		$     30.93
Shares of common stock outstanding (in thousands)	6,251		6,263		6,366		6,480		6,588
CAPITAL RATIOS
Total capital (to risk-weighted assets)	14.71 %		14.13 %		14.16 %		15.10 %		15.60 %
Tier 1 capital (to risk-weighted assets)	13.63 %		13.08 %		13.10 %		13.97 %		14.43 %
Tier 1 capital (to average assets)	13.10 %		12.46 %		12.36 %		12.06 %		12.29 %
Period-end equity to assets	13.26 %		13.00 %		12.71 %		12.84 %		12.89 %
Period-end tangible equity to tangible assets	12.67 %		12.42 %		12.13 %		12.26 %		12.23 %
CREDIT QUALITY DATA (Dollars in thousands)
Net charge-offs (recoveries)	$       200		$        (12)		$        (34)		$       101		$       821
Annualized net charge-offs (recoveries) to average loans	0.058 %		-0.003 %		-0.010 %		0.030 %		0.240 %
Nonperforming loans (excluding TDRs)	$       370		$       402		$       406		$       409		$     1,043
Other real estate owned	-		-		226		226		376
Troubled debt restructurings (TDRs)
-Performing	5,943		6,001		6,066		6,122		6,187
-Non-performing	359		563		766		766		1,092
Total nonperforming assets and accruing TDRs	$     6,672		$     6,966		$     7,464		$     7,523		$     8,698
Allowance for loan losses as a percent of:
Period-end loans	1.21 %		1.19 %		1.19 %		1.24 %		1.22 %
Nonaccrual loans	2286.15 %		1727.05 %		1420.99 %		1398.99 %		769.13 %
Nonperforming assets	2286.15 %		1727.05 %		1191.27 %		1175.39 %		653.96 %
As a percent of total loans:
Nonaccrual loans	0.05 %		0.07 %		0.08 %		0.09 %		0.11 %
Accruing TDRs	0.43 %		0.43 %		0.43 %		0.46 %		0.46 %
Nonaccrual loans and accruing TDRs	0.48 %		0.50 %		0.52 %		0.55 %		0.62 %

 

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 was the net income for The Bank of Princeton in Q3 2022?

The net income for The Bank of Princeton in Q3 2022 was $7.0 million.

How did the net interest margin change for BPRN in Q3 2022?

The net interest margin for BPRN in Q3 2022 increased to 4.64%, up 45 basis points from Q2 2022.

What is the ratio of non-performing loans for BPRN as of September 30, 2022?

The ratio of non-performing loans for BPRN as of September 30, 2022, is 0.05%.

How much did total deposits decrease for The Bank of Princeton by September 30, 2022?

Total deposits at The Bank of Princeton decreased by $79.1 million, or 5.5%, compared to December 31, 2021.

What was the increase in non-interest income for BPRN in Q3 2022?

Non-interest income for BPRN increased by $595 thousand, or 53.5%, compared to Q2 2022.