The Bank of Princeton Announces First Quarter 2020 Results

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Apr 23, 2020, 16:01 ET

PRINCETON, N.J., April 23, 2020 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ – BPRN) today reported unaudited results of operations and financial condition for the quarter ended March 31, 2020. The Bank reported net income of $3.0 million, or $0.44 per diluted common share, for the first quarter of 2020, compared to net income of $3.4 million, or $0.49 per diluted common share, for the fourth quarter of 2019, and net income of $229 thousand, or $0.03 per diluted common share, for the first quarter of 2019. The decrease in net income, when comparing this most recent quarter to the three months ended December 31, 2019, was primarily due to a $708 thousand increase in non-interest expense and a $525 thousand increase in the Bank's provision for loan losses, partially offset by a $697 thousand increase in non-interest income. The increase in net income, when comparing it to the three months ended March 31, 2019, was primarily due to an increase of $706 thousand in the Bank's non-interest income and a decrease in the Bank's provision for loan losses of $3.6 million, partially offset by a $1.2 million increase in operating expenses attributed to the Bank's strategy of branch expansion.

Highlights for the quarter-ended March 31, 2020 are as follows:

Net interest income for the three month period ended March 31, 2020 increased $591 thousand, or 6.0%, over the same period in 2019.
The Bank decreased its cost of funds by 11 basis points during the three month period ended March 31, 2020, when compared to the same period in 2019.
Non-interest income for the three month period ended March 31, 2020 increased $706 thousand, or 89.9%, over the same period in 2019.
The ratio of non-performing assets to total assets was 0.18% at March 31, 2020.

"During the first quarter, less expensive core deposits continued to grow, which has a positive impact on our cost of funds," stated Edward Dietzler, President/CEO.

Balance Sheet Review

Total assets were $1.43 billion at March 31, 2020, a decrease of $30.3 million or 2.0% when compared to $1.45 billion at the end of 2019. The primary reason for the decrease in total assets was a result of the Bank's strategic initiative to reduce its cost of funds by reducing interest rates offered on higher costing deposit products.

Total deposits at March 31, 2020 decreased by $37.5 million, or 3.0%, when compared to December 31, 2019, primarily due to the impact of reducing rates on some of its higher costing deposit products. When comparing deposit products between the two periods, money markets decreased by $35.1 million, interest-bearing checking decreased by $12.1 million and time deposits decreased by $6.3 million, partially offset by increases in non-interest checking of $8.8 million and savings of $7.2 million. In addition, at March 31, 2020 and at December 31, 2019, the Bank did not have an outstanding balance in borrowings.

Total stockholders' equity at March 31, 2020 increased $3.1 million or 1.6% when compared to the end of 2019. This increase was primarily due to earnings recorded during the three months of 2020, and an increase of $550 thousand in the fair-value of the available-for-sale investment portfolio. The ratio of equity to total assets at March 31, 2020 was 14.0% compared to 13.5% at December 31, 2019.

Asset Quality

At March 31, 2020, non-performing assets were $2.6 million, an increase of $154 thousand, or 6.3%, when compared to $2.4 million at December 31, 2019. This increase at March 31, 2020 from December 31, 2019 was primarily due the addition of a single-family residential loan. Total troubled debt restructurings ("TDR") totaled $9.3 million at March 31, 2020 and December 31, 2019. All TDR's are performing to their agreed upon terms.

Review of Quarterly Financial Results

Net interest income was $10.5 million for the first quarter of 2020, compared to $10.4 million for the fourth quarter of 2019 and $9.9 million for the first quarter of 2019. The increase from the previous quarter was a result of a decrease in interest paid on liabilities of $246 thousand, or 5.1%, partially offset by a decrease in interest income of $156 thousand. The net interest margin for the first quarter 2020 was 3.13%, increasing 3 basis points when compared to the fourth quarter of 2019. This increase was primarily associated with a reduction of 9 basis points in total cost of funds offset by a 5 basis points reduction in the yield on earning assets. When comparing the three month periods ended March 31, 2020 and 2019, net interest income increased $591 thousand, which was primarily due to a higher volume of average earnings assets of approximately $145.7 million. Interest and dividend income increased by $762 thousand, offset by an increase in interest expense of $171 thousand. The total rate on interest-bearing liabilities, which includes non-interest-bearing deposits, for the three month periods ended March 31, 2020 and 2019 was 1.46% and 1.60%, respectively.

The provision for credit losses was $650 thousand for the three months ended March 31, 2020. The comparable amounts were $125 thousand and $4.2 million for the three months ended December 31, 2019 and March 31, 2019, respectively. The primary reason for the provision in the first quarter of 2020 was due to an $886 thousand charge-off recorded against a borrower of a commercial real estate loan. The rate of allowance for credit losses to period end loans was 1.03% at March 31, 2020, compared to 1.06% at December 31, 2019 and 1.07% at March 31, 2019, which reflects management's assessment of the credit quality in the loan portfolio.

Total non-interest income for the first quarter of 2020 increased $706 thousand to $1.5 million, or 89.9%, when compared to the same period in 2019. This increase was primarily due to a $505 thousand gain record on the sale of investment securities held as available-for-sale, and an increase in service charges on deposits and loan fees collected. Total non-interest income, comparing the three month periods ended March 31, 2020 and December 31, 2019, reflected an increase of $697 thousand, or 87.8%, primarily due to the aforementioned gain recorded on the sale investment securities held as available-for-sale, and a higher level of fees generated on loans recorded between the two periods.

Total non-interest expense for the first quarter of 2020 increased $1.2 million, or 19.6%, when compared to the same period in 2019. This increase was primarily due to an increase in additional operating cost associated with the Bank's branch expansion strategy. When comparing March 31, 2020 to the immediately prior quarter, non-interest expense increased $708 thousand, or 10.3%, primarily due to growth-related increases in salaries and employee benefits' expense, data processing expense, professional fees, and FDIC insurance premiums, partially offset by a reduction in advertising expenses, occupancy and equipment expense and other expense.

For the three month period ended March 31, 2020, the Bank recorded an income tax expense of $726 thousand, resulting in an effective tax rate of 19.3%, compared to an income tax expense of $817 thousand resulting in an effective tax rate of 19.4% for the three month period ended December 31, 2019, and compared to an income tax benefit of $74 thousand for the three month period ended March 31, 2019. The effective tax rate for the three months ended March 31, 2020 and December 31, 2019 were both positively impacted by the exercise of stock options from the Bank's equity incentive plans. The tax benefit for March 31, 2019 was impacted by the level of tax-free income against the level of taxable earnings.

COVID-19

The full impact of the coronavirus continues to evolve as of the date of this report. 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 is working closely with its loan customers to educate and guide them on their options for financial assistance, including the Paycheck Protection Program ("PPP") and payment relief through deferral and waived fees. The Bank will continue to provide a fast and flexible response to the quickly changing circumstances and is confident it will navigate successfully through these trying times.

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 18 branches in New Jersey, including four in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Hamilton, Lambertville, Lawrenceville, Monroe, New Brunswick, Pennington, Princeton Junction, Quakerbridge and Sicklerville. There are also three 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 impact of the recent global coronavirus outbreak, 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, 2019 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
[email protected]

The Bank of Princeton
Summary Statements of Financial Condition Data
(unaudited)
(dollars in thousands, except per share data)

				Mar 31, 2020 vs Dec 31, 2019	Mar 31, 2020 vs Dec 31, 2019		Mar 31, 2020 vs Mar 31, 2019	Mar 31, 2020 vs Mar 31, 2019
	Mar 31, 2020	Dec 31, 2019	Mar 31, 2019	$ Change	% Change		$ Change	% Change

ASSETS
Cash and cash equivalents	$ 51,437	$ 72,598	$ 23,791	$ (21,161)	(29.15)	%	$ 27,646	116.20	%
Securities available for sale taxable	36,738	55,951	44,297	(19,213)	(34.34)		(7,559)	(17.06)
Securities available for sale tax exempt	56,347	56,361	47,417	(14)	(0.02)		8,930	18.83
Securities held to maturity	220	222	227	(2)	(0.90)		(7)	(3.08)
Loans receivable, net of deferred	1,191,812	1,186,570	1,114,797	5,242	0.44		77,015	6.91
Allowance for loan losses	(12,322)	(12,557)	(11,961)	235	(1.87)		(361)	3.02
Other assets	100,344	95,749	78,660	4,595	4.80		21,684	27.57
TOTAL ASSETS	$ 1,424,576	$ 1,454,894	$ 1,297,228	$ (30,318)	(2.08)	%	$ 127,348	9.82	%


LIABILITIES
Non interest checking	$ 150,184	$ 141,338	$ 92,684	$ 8,846	6.26	%	$ 57,500	62.04	%
Interest checking	200,405	212,552	181,767	(12,147)	(5.71)		18,638	10.25
Savings	161,921	154,756	93,464	7,165	4.63		68,457	73.24
Money market	259,885	294,940	247,912	(35,055)	(11.89)		11,973	4.83
Time deposits over $250,000	120,062	121,122	100,244	(1,060)	(0.88)		19,818	19.77
Other time deposits	307,898	313,182	296,468	(5,284)	(1.69)		11,430	3.86
Total Deposits	1,200,355	1,237,890	1,012,539	(37,535)	(3.03)		187,816	18.55
Borrowings	-	-	79,800	-	(79,800)		(79,800)	(100.00)
Other liabilities	25,207	21,079	18,696	4,128	19.58		6,511	34.83
TOTAL LIABILITIES	1,225,562	1,258,969	1,111,035	(33,407)	(2.65)	%	114,527	10.31	%

STOCKHOLDERS' EQUITY
Common stock	33,855	33,807	33,680	48	0.14		175	0.52
Paid-in capital	79,349	79,215	78,710	134	0.17		639	0.81
Retained earnings	84,630	82,273	73,659	2,357	2.86		10,971	14.89
Accumulated other comprehensive income (loss)	1,180	630	144	550	87.30		1,036	719.44
TOTAL STOCKHOLDERS' EQUITY	199,014	195,925	186,193	3,089	1.58	%	12,821	6.89	%

TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY	$ 1,424,576	$ 1,454,894	$ 1,297,228	$ (30,318)	17.02	%	$ 127,348	9.82	%

Book value per common share	$ 29.39	$ 28.98	$ 27.64	$ 0.41	1.43	%	$ 1.75	6.33	%
Tangible book value per common share¹	$ 27.56	$ 27.11	$ 27.98	$ 0.45	1.66	%	$ (0.42)	(1.50)	%

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/Deposit Tables


Loan receivable, net at March 31, 2020 and December 31, 2019 were comprised of the following:


	March 31,	December 31,
	2020	2019
	(Dollars in thousands)
Commercial real estate	$ 836,727	$ 853,876
Commercial and industrial	46,402	43,504
Construction	213,147	189,789
Residential first-lien mortgages	86,631	89,067
Home equity	12,338	12,959
Consumer	220	794
Total loans	1,195,465	1,189,989
Deferred fees and costs	(3,653)	(3,419)
Allowance for loan losses	(12,322)	(12,557)
Loans, net	$ 1,179,490	$ 1,174,013


The components of deposits at September 30, 2019 and December 31, 2019 were as follows:

	September 30,	December 31,
	2019	2019
	(Dollars in thousands)
Demand, non-interest-bearing checking	$ 150,184	$ 141,338
Demand, interest-bearing	200,405	212,552
Savings	161,921	154,756
Money Markets	259,885	294,940
Time deposits	427,960	434,304
Total Deposits	$ 1,200,355	$ 1,237,890

The Bank of Princeton
Consolidated Statements of Operations
(unaudited)
			Three Months Ended
			Mar 31,
			2020	2019	$ Change	% Change
			(Dollars in thousands)
Interest and Dividend Income

	Loans and fees		$ 14,199	$ 13,519	$ 680	5.0%
	Available-for-Sale debt securities:
		Taxable	310	275	35	12.7%
		Tax-exempt	363	309	54	17.5%
	Held-to-Maturity debt securities		3	3	0	0.0%
	Other interest and dividend income		162	169	-7	-4.1%

		Total Interest and Dividends	15,037	14,275	762	5.3%

	Interest expense

		Deposits	4,532	4,155	377	9.1%
		Borrowings	3	209	-206	-98.6%

		Total Interest Expense	4,535	4,364	171	3.9%

		Net Interest Income	10,502	9,911	591	6.0%

Provision for Loan Losses			650	4,200	-3,550	-84.5%

Net Interest Income after Provision for Loan Losses			9,852	5,711	4,141	72.5%

Non-Interest income

	Gain on sale of securities available for sale,net		505	-	505	N/A
	Income from bank-owned life insurance		296	310	-14	-4.5%
	Fees and service charges		333	149	184	123.5%
	Loan fees, including prepayment penalities		304	314	-10	-3.2%
	Other		53	12	41	341.7%

		Total Non-Interest Income	1,491	785	706	89.9%

Non-Interest Expense

	Salaries and employee benefits		4,122	3,696	426	11.5%
	Occupancy and equipment		1,202	938	264	28.1%
	Professional fees		521	431	90	20.9%
	Data processing and communications		803	571	232	40.6%
	Federal deposit insurance		88	85	3	3.5%
	Advertising and promotion		90	74	16	21.6%
	Office expense		80	55	25	45.5%
	Core deposit intangible		193	-	193	N/A
	Other		484	491	-7	-1.4%

		Total Non-Interest Expense	7,583	6,341	1,242	19.6%

Income before income tax expense			3,760	155	3,605	2325.8%

Income tax expense (benefit)			726	(74)	800	-1081.1%

Net Income			$ 3,034	$ 229	$ 2,805	1224.9%

Net income per common share - basic			0.45	0.03	0.42	1400.0%
Net income per common share - diluted			0.44	0.03	0.41	1366.7%

Weighted average shares outstanding - basic			6,766	6,679	87	1.3%
Weighted average shares outstanding - diluted			6,920	6,874	46	0.7%

The Bank of Princeton
Consolidated Statements of Operations (Current Quarter vs Prior Quarter)
(unaudited)
			Quarter Ending
			Mar 31,	Dec 31,
			2020	2019	$ Change	% Change
			(Dollars in thousands)
Interest and Dividend Income

	Loans and fees		$ 14,199	$ 14,263	$ (64)	-0.4%
	Available-for-Sale debt securities:
		Taxable	310	315	(5)	-1.6%
		Tax-exempt	363	358	5	1.4%
	Held-to-Maturity debt securities		3	3	-	0.0%
	Other interest and dividend income		162	254	(92)	-36.2%

		Total Interest and Dividends	15,037	15,193	(156)	-1.0%

	Interest expense

		Deposits	4,532	4,762	(230)	-4.8%
		Borrowings	3	19	(16)	-84.2%

		Total Interest Expense	4,535	4,781	(246)	-5.1%

		Net Interest Income	10,502	10,412	90	0.9%

Provision for Loan Losses			650	125	525	420.0%

Net Interest Income after Provision for Loan Losses			9,852	10,287	(435)	-4.2%

Non-Interest income

	Gain on sale of securities available for sale,net		505	27	478	1770.4%
	Income from bank-owned life insurance		296	299	(3)	-1.0%
	Fees and service charges		333	323	10	3.1%
	Loan fees, including prepayment penalities		304	122	182	149.2%
	Other		53	23	30	130.4%

		Total Non-Interest Income	1,491	794	697	87.8%

Non-Interest Expense

	Salaries and employee benefits		4,122	3,643	479	13.1%
	Occupancy and equipment		1,202	1,219	(17)	-1.4%
	Professional fees		521	340	181	53.2%
	Data processing and communications		803	658	145	22.0%
	Federal deposit insurance		88	-	88	N/A
	Advertising and promotion		90	98	(8)	-8.2%
	Office expense		80	152	(72)	-47.4%
	OREO Expense		-	4	(4)	-100.0%
	Core deposit intangible		193	193	-	0.0%
	Other		484	568	(84)	-14.8%
		Total Non-Interest Expense
			7,583	6,875	708	10.3%
Income before income tax expense
			3,760	4,206	(446)	-10.6%
Income tax expense
			726	817	(91)	-11.1%
Net Income
			$ 3,034	$ 3,389	$ (355)	-10.5%

Net income per common share - basic			0.45	0.51	0.01	2.0%
Net income per common share - diluted			0.44	0.49	0.01	2.0%

Weighted average shares outstanding - basic			6,766	6,757	9	0.1%
Weighted average shares outstanding - diluted			6,920	6,922	(2)	0.0%

The Bank of Princeton
Consolidated Average Balance Sheets
(unaudited)

	For the Three Months Ended
	Mar 31,
	2020		2019
	Average	Yield/	Average	Yield/
	balance	rate	balance	rate	$ Change	% Change
Earning assets
Loans	$ 1,197,745	4.77%	$ 1,093,377	5.01%	$ 104,368	-0.24%

Securities

Taxable AFS	56,641	2.18%	45,320	2.42%	11,321	-0.24%
Tax exempt AFS	56,875	2.55%	45,408	2.73%	11,467	-0.18%
Held-to-maturity	221	5.26%	228	5.26%	(7)	0.00%

Securities	113,737	2.37%	90,956	2.58%	22,781	-0.21%

Other interest earning assets
Interest-bearing bank accounts	38,302	1.52%	18,543	2.75%	19,759	-1.23%
Equities	1,281	5.61%	2,503	7.09%	(1,222)	-1.48%

Other interest earning assets	39,583	1.65%	21,046	3.27%	18,537	-1.62%

Total interest-earning assets	1,351,065	4.48%	1,205,379	4.80%	145,686	-0.32%

Total non earning assets	95,402		65,436

Total Assets	$ 1,446,467		$ 1,270,815


Interest-bearing liabilities
Checking	$ 220,018	1.00%	$ 193,103	1.33%	$ 26,915	-0.33%
Savings	157,263	1.16%	92,914	1.39%	64,349	-0.23%
Money Market	268,257	1.44%	275,442	1.73%	(7,185)	-0.29%
Certificate of Deposit	435,835	2.37%	381,895	2.15%	53,940	0.22%

Total interest-bearing deposits	1,081,373	1.69%	943,354	1.79%	138,019	-0.10%

Non interest bearing deposits	143,747		95,114

Total deposits	1,225,120	1.48%	1,038,468	1.62%	186,652	-0.14%

Borrowings	803	1.64%	31,615	2.68%	(30,812)	-1.04%
Total interest-bearing liabilities
(excluding non interest deposits)	1,082,176	1.68%	974,969	1.82%	107,207	-0.14%

Noninterest-bearing deposits	143,747		95,114
Total Cost of Funds	1,225,923	1.48%	1,070,083	1.65%	155,840	-0.17%

Accrued expenses and other liabilities	22,791		14,134
Stockholders' equity	197,753		186,598
Total liabilities and stockholders' equity	$ 1,446,467		$ 1,270,815


Net interest spread		2.79%		2.98%
Net interest margin		3.13%		3.33%

Net interest margin (FTE)*		3.20%		3.46%

*Includes federal and state tax effect of tax exempt
securities and loans

The Bank of Princeton
Consolidated Average Balance Sheets
(unaudited)

	For the Quarter Ended

	Mar 2020		Dec 2019
	Average	Yield/	Average	Yield/
	balance	rate	balance	rate	$ Change	% Change
Earning assets
Loans	$ 1,197,745	4.77%	$ 1,159,919	4.88%	$ 37,826	-0.11%

Securities

Taxable AFS	56,641	2.18%	54,811	2.30%	1,830	-0.12%
Tax exempt AFS	56,875	2.65%	55,388	2.59%	1,487	0.06%
Held-to-maturity	221	5.26%	223	5.26%	(2)	0.00%

Securities	113,737	2.37%	110,422	2.45%	3,315	-0.08%

Other interest earning assets
Interest-bearing bank accounts	38,302	1.52%	59,753	1.54%	(21,451)	-0.02%
Equities	1,281	5.61%	1,416	5.90%	(135)	-0.29%

Other interest earning assets	39,583	1.65%	61,169	1.64%	(21,586)	0.01%

Total interest-earning assets	1,351,065	4.48%	1,331,510	4.53%	19,555	-0.05%

Total non earning assets	95,402		95,094

Total Assets	$ 1,446,467		$ 1,426,604


Interest-bearing liabilities
Checking	$ 220,018	1.00%	$ 216,489	1.03%	$ 3,529	-0.03%
Savings	157,263	1.16%	154,934	1.28%	2,329	-0.12%
Money Market	268,257	1.44%	265,015	1.67%	3,242	-0.23%
Certificate of Deposit	435,835	2.37%	425,626	2.41%	10,209	-0.04%

Total interest-bearing deposits	1,081,373	1.69%	1,062,064	1.78%	19,309	-0.09%

Non interest bearing deposits	143,747		144,538

Total deposits	1,225,120	1.48%	1,206,602	1.57%	18,518	-0.09%

Borrowings	803	1.64%	3,795	2.01%	(2,992)	-0.37%

Total interest-bearing liabilities	1,082,176	1.68%	1,065,859	1.78%	16,317	-0.10%
(excluding non interest deposits)
	143,747		144,538
Noninterest-bearing deposits	1,225,923	1.48%	1,210,397	1.57%	1,204,062	-0.09%
Total Cost of Funds

Accrued expenses and other liabilities	22,791		21,861
Stockholders' equity	197,753		194,346
Total liabilities and stockholders' equity	$ 1,446,467		$ 1,426,604


Net interest spread		2.79%		2.75%
Net interest margin		3.13%		3.10%

Net interest margin (FTE)*		3.20%		3.21%

*Includes federal and state tax effect of tax exempt
securities and loans

The Bank of Princeton
Quarterly Financial Highlights
(unaudited)

	2020	2019	2019	2019	2019
	Mar	Dec	Sep	Jun	Mar

Return on average assets	0.84%	0.94%	1.10%	0.84%	0.07%
Return on average equity	6.17%	6.92%	7.84%	5.99%	0.50%
Return on average tangible equity *	6.59%	7.40%	8.26%	6.40%	0.50%
Net interest margin	3.13%	3.10%	3.37%	3.30%	3.34%
Net interest margin (FTE)**	3.20%	3.21%	3.46%	3.40%	3.46%
Efficiency ratio - Non-GAAP ***	64.32%	61.35%	60.80%	65.96%	59.28%

Common Stock Data
Market value at period end	$ 23.25	$ 31.49	$ 29.06	$ 30.00	$ 31.73
Market range:
High	$ 32.25	$ 32.12	$ 30.20	$ 32.75	$ 33.33
Low	$ 19.09	$ 27.34	$ 25.92	$ 27.42	$ 27.58
Book value per common share at period end	$ 29.39	$ 28.98	$ 28.61	$ 28.08	$ 27.64
Tangible book value per common share at period end ****	$ 27.56	$ 27.11	$ 26.71	$ 26.15	$ 27.64

CAPITAL RATIOS
Total Capital (to risk-weighted assets)	15.32%	15.11%	15.42%	15.43%	16.53%
Tier 1 Capital (to risk-weighted assets)	14.36%	14.13%	14.41%	14.41%	15.53%
Tier 1 Capital (to average assets)	12.91%	12.89%	13.31%	13.15%	14.60%
Period-end equity to assets	13.97%	13.47%	14.00%	13.91%	14.35%
Period-end tangible equity to tangible assets	13.21%	12.71%	13.19%	13.08%	14.35%

CREDIT QUALITY DATA AT PERIOD END
(Dollars in Thousands)
Net charge-offs and (recoveries)	$ 884	$ 112	$ 3	$ (110)	$ 4,183
Annualized net charge-offs (recoveries) to average loans	0.001%	-0.040%	0.001%	-0.040%	1.552%

Nonaccrual loans	$ 2,596	$ 2,442	$ 2,434	$ 2,700	$ 9,472
Other real estate owned	-	-	-	44	44
Total nonperforming assets	2,596	2,442	2,434	2,744	9,516
Accruing troubled debt restructurings (TDRs)	9,247	9,293	9,828	7,606	1,278
Total nonperforming assets and accruing TDRs	$ 11,843	$ 11,735	$ 12,262	$ 10,350	$ 10,794
Nonaccrual loans and TDRs	-	-	-	-	-

Allowance for credit losses as a percent of:
Period-end loans	1.03%	1.06%	1.09%	1.10%	1.07%
Nonaccrual loans	474.65%	514.21%	515.32%	460.04%	126.28%
Nonperforming assets	474.65%	514.21%	515.32%	452.66%	125.69%

As a percent of total loans:
Nonaccrual loans	0.22%	0.21%	0.21%	0.24%	0.85%
Accruing TDRs	0.78%	0.78%	0.86%	0.68%	0.11%
Nonaccrual loans and accruing TDRs	0.99%	0.99%	1.07%	0.92%	0.96%

* Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.
** Includes the effect of tax exempt securities and loans
*** The efficiency ratio is a non-GAAP measure that represents the ratio of non-interest expenses divided by the net-interest income
and non-interest income.
**** Tangible book value per common share is a non-GAAP measure that represents book value per common share which excludes goodwill and core deposit intangible.