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
[email protected]
SOURCE The Bank of Princeton
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article