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

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

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

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

Balance Sheet Review

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

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

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

Asset Quality

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

As part of the Bank's commitment to provide assistance during the COVID-19 pandemic, the Bank agreed to defer either the principal portion or both principal and interest payments for its customers who requested the deferral and were not delinquent prior to the government shut down. All but one customer returned to their regular payment schedule. As of March 31, 2022, the Bank had only one loan that was modified totaling $9.0 million. Under current accounting guidance, these loans are not required to be classified as TDRs.

Review of Quarterly Financial Results

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

The Bank did not record a provision for credit losses for the three month period ended March 31, 2022. The comparable amounts were $300 thousand and $1.1 million for the three months ended December 31, 2021 and March 31, 2021, respectively. The primary reasons for the provision for credit losses for the fourth and first quarters of 2021 were charge-offs in the amounts of $245 thousand and $1.1 million, respectively. As of March 31, 2022, the Bank did not apply any qualitative factors to the loans originated from PPP, based on the U.S government's guarantee and the Coronavirus Aid, Relief and Economic Securities Act requirement to classify these loans at 0% in determining risk-based capital ratio. The coverage rate of allowance for credit losses to period end loans was 1.19% (excluding PPP loans, the coverage ratio was 1.23%) at March 31, 2022, compared to 1.10% (excluding PPP loans, the coverage ratio was 1.31%) at March 31, 2021, which reflects management's assessment of the credit quality in the loan portfolio.

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

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

For the three month period ended March 31, 2022, the Bank recorded an income tax expense of $1.6 million, resulting in an effective tax rate of 21.1%, compared to an income tax expense of $2.0 million resulting in an effective tax rate of 24.6% for the three month period ended December 31, 2021, and compared to an income tax expense of $1.4 million resulting in an effective tax rate of 22.2% for the three month period ended March 31, 2021.

COVID-19

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

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

About The Bank of Princeton

The Bank of Princeton is a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 19 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Hamilton, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also four branches in the Philadelphia, Pennsylvania area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation ("FDIC").

Forward-Looking Statements

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

These forward-looking statements involve risks and uncertainties, such as statements of the Bank's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Bank's control). The following factors, among others, could cause the Bank's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the extent of the adverse impact of the current global coronavirus outbreak on our customers, prospects and business, including related supply chain shortage of goods, as well as the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area, the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Bank; and the timing and nature of the regulatory response to any applications filed by the Bank; technological changes; acquisitions; changes in consumer spending and saving habits; those risks set forth in the Bank's Annual Report on Form 10-K for the year ended December 31, 2021 under the heading "Risk Factors," and the success of the Bank at managing the risks involved in the foregoing.

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

The Bank of Princeton
Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in thousands, except per share data)


				March 31, 2022 vs			March 31, 2022 vs
	March 31,	December 31,	March 31,	December 31, 2021			March 31, 2021
	2022	2021	2021	$ Change	% Change		$ Change	% Change

ASSETS
Cash and cash equivalents	$ 94,030	$ 158,716	$ 67,517	$ (64,686)	(40.76)	%	$ 26,513	39.27	%
Securities available-for-sale taxable	50,409	51,690	25,964	(1,281)	(2.48)		24,445	94.15
Securities available-for-sale tax-exempt	46,058	49,468	46,443	(3,410)	(6.89)		(385)	(0.83)
Securities held-to-maturity	206	208	214	(2)	(0.96)		(8)	(3.74)
Loans receivable, net of deferred	1,395,155	1,335,163	1,455,158	59,992	4.49		(60,003)	(4.12)
Allowance for loan losses	(16,654)	(16,620)	(16,042)	(34)	0.20		(612)	3.81
Goodwill	8,853	8,853	8,853	-	-		-	-
Core deposit intangible	2,238	2,393	2,862	(155)	(6.48)		(624)	(21.80)
Other assets	97,654	97,811	93,569	(157)	(0.16)		4,085	4.37
TOTAL ASSETS	$ 1,677,949	$ 1,687,682	$ 1,684,538	$ (9,733)	(0.58)	%	$ (6,589)	(0.39)	%


LIABILITIES
Non-interest checking	$ 273,679	$ 286,247	$ 288,852	$ (12,568)	(4.39)	%	$ (15,173)	(5.25)	%
Interest checking	269,072	259,022	241,061	10,050	3.88		28,011	11.62
Savings	238,224	225,579	193,046	12,645	5.61		45,178	23.40
Money market	382,477	373,075	324,881	9,402	2.52		57,596	17.73
Time deposits over $250,000	26,493	33,741	55,117	(7,248)	(21.48)		(28,624)	(51.93)
Other time deposits	251,600	268,479	295,754	(16,879)	(6.29)		(44,154)	(14.93)
Total deposits	1,441,545	1,446,143	1,398,711	(4,598)	(0.32)		42,834	3.06
Borrowings	-	-	43,000	-	N/A		(43,000)	N/A
Other liabilities	23,164	24,961	30,280	(1,797)	(7.20)		(7,116)	(23.50)
TOTAL LIABILITIES	1,464,709	1,471,104	1,471,991	(6,395)	(0.43)		(7,282)	(0.49)

STOCKHOLDERS' EQUITY
Common stock	34,181	34,100	34,022	81	0.24		159	0.47
Paid-in capital	80,576	80,220	79,879	356	0.44		697	0.87
Treasury stock	(13,647)	(10,032)	-	(3,615)	36.03		(13,647)	N/A
Retained earnings	115,813	111,451	97,407	4,362	3.91		18,406	18.90
Accumulated other comprehensive income (loss)	(3,683)	839	1,239	(4,522)	(538.97)		(4,922)	(397.26)
TOTAL STOCKHOLDERS' EQUITY	213,240	216,578	212,547	(3,338)	(1.54)		693	0.33

TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY	$ 1,677,949	$ 1,687,682	$ 1,684,538	$ (9,733)	(0.58)	%	$ (6,589)	(0.39)	%

Book value per common share	$ 33.49	$ 33.42	$ 31.24	$ 0.07	0.21	%	$ 2.25	7.20	%
Tangible book value per common share¹	$ 31.75	$ 31.69	$ 29.52	$ 0.06	0.20	%	$ 2.23	7.55	%

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

The Bank of Princeton
Loan/Deposit Tables
(unaudited)

Loan receivable, net at March 31, 2022 and December 31, 2021 were comprised of the following:


	March 31,	December 31,
	2022	2021
	(Dollars in thousands)
Commercial real estate	$ 830,113	$ 771,028
Commercial and industrial	27,780	29,677
Construction	449,879	403,680
Residential first-lien mortgages	47,599	48,638
Home equity / consumer	7,394	7,685
PPP I (SBA loans)	4,352	6,641
PPP II (SBA loans)	32,378	73,099
Total loans	1,399,495	1,340,448
Deferred fees and costs	(4,340)	(5,285)
Allowance for loan losses	(16,654)	(16,620)
Loans, net	$ 1,378,501	$ 1,318,543


The components of deposits at March 31, 2022 and December 31, 2021 were as follows:

	March 31,	December 31,
	2022	2021
	(Dollars in thousands)
Demand, non-interest-bearing checking	$ 273,679	$ 286,247
Demand, interest-bearing	269,072	259,022
Savings	238,224	225,579
Money Markets	382,477	373,075
Time deposits	278,093	302,220
Total Deposits	$ 1,441,545	$ 1,446,143

The Bank of Princeton
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands except per share data)

			Three Months Ended March 31,
			2022	2021	$ Change	% Change
Interest and dividend income

	Loans and fees		$ 16,492	$ 16,328	$ 164	1.0%
	Available-for-sale debt securities:
		Taxable	223	108	115	106.5%
		Tax-exempt	303	301	2	0.7%
	Held-to-maturity debt securities		3	4	(1)	-25.0%
	Other interest and dividend income		57	45	12	26.7%

		Total interest and dividends	17,078	16,786	292	1.7%

	Interest expense

		Deposits	1,224	2,030	(806)	-39.7%
		Borrowings	-	1	(1)	-100.0%

		Total interest expense	1,224	2,031	(807)	-39.7%

		Net interest income	15,854	14,755	1,099	7.4%

Provision for loan losses			-	1,125	(1,125)	-100.0%

Net interest income after provision for loan losses			15,854	13,630	2,224	16.3%

Non-interest income

	Gain on sale of securities available-for-sale, net		-	7	(7)	-100.0%
	Income from bank-owned life insurance		282	273	9	3.3%
	Fees and service charges		475	402	73	18.2%
	Loan fees, including prepayment penalities		95	126	(31)	-24.6%
	Other		194	55	139	252.7%

		Total non-interest income	1,046	863	183	21.2%

Non-interest expense

	Salaries and employee benefits		4,901	4,110	791	19.2%
	Occupancy and equipment		1,478	1,520	(42)	-2.8%
	Professional fees		561	662	(101)	-15.3%
	Data processing and communications		1,035	871	164	18.8%
	Federal deposit insurance		264	128	136	106.3%
	Advertising and promotion		119	50	69	138.0%
	Office expense		54	53	1	1.9%
	Other real estate owned expense		9	9	0	0.0%
	Core deposit intangible		154	174	(20)	-11.5%
	Other		693	682	11	1.6%

		Total non-interest expense	9,268	8,259	1,009	12.2%

Income before income tax expense			7,632	6,234	1,398	22.4%

Income tax expense			1,611	1,382	229	16.6%

Net income			$ 6,021	$ 4,852	1,169	24.1%

Net income per common share - basic			$ 0.93	$ 0.71	$ 0.22	31.0%
Net income per common share - diluted			$ 0.91	$ 0.70	$ 0.21	30.0%

Weighted average shares outstanding - basic			6,465	6,804	(339)	-5.0%
Weighted average shares outstanding - diluted			6,614	6,951	(337)	-4.8%

The Bank of Princeton
Consolidated Statements of Income (Current Quarter vs Prior Quarter)
(Unaudited)
(Dollars in thousands, except per share data)

			Quarter Ending
			March 31,	December 31,
			2022	2021	$ Change	% Change
Interest and dividend income

	Loans and fees		$ 16,492	$ 16,861	$ (369)	-2.2%
	Available-for-sale debt securities:
		Taxable	223	194	29	14.9%
		Tax-exempt	303	295	8	2.7%
	Held-to-maturity debt securities		3	3	0	0.0%
	Other interest and dividend income		57	58	(1)	-1.7%

		Total interest and dividends	17,078	17,411	(333)	-1.9%

	Interest expense

		Deposits	1,224	1,411	(187)	-13.3%

		Total interest expense	1,224	1,411	(187)	-13.3%

		Net interest income	15,854	16,000	(146)	-0.9%

Provision for loan losses			-	300	(300)	-100.0%

Net interest income after provision for loan losses			15,854	15,700	154	1.0%

Non-interest income

	Income from bank-owned life insurance		282	290	(8)	-2.8%
	Fees and service charges		475	473	2	0.4%
	Loan fees, including prepayment penalities		95	757	(662)	-87.5%
	Other		194	(53)	247	-466.0%

		Total non-interest income	1,046	1,467	(421)	-28.7%

Non-interest expense

	Salaries and employee benefits		4,901	4,667	234	5.0%
	Occupancy and equipment		1,478	1,521	(43)	-2.8%
	Professional fees		561	511	50	9.8%
	Data processing and communications		1,035	898	137	15.3%
	Federal deposit insurance		264	206	58	28.2%
	Advertising and promotion		119	42	77	183.3%
	Office expense		54	66	(12)	-18.2%
	Other real estate owned expense		9	151	(142)	-94.0%
	Core deposit intangible		154	154	0	0.0%
	Other		693	747	(54)	-7.2%

		Total non-interest expense	9,268	8,963	305	3.4%

Income before income tax expense			7,632	8,204	(572)	-7.0%

Income tax expense			1,611	2,021	(410)	-20.3%

Net income			$ 6,021	$ 6,183	$ (162)	-2.6%

Net income per common share - basic			$ 0.93	$ 0.94	$ (0.01)	-1.1%
Net income per common share - diluted			$ 0.91	$ 0.92	$ (0.01)	-1.1%

Weighted average shares outstanding - basic			6,465	6,538	(73)	-1.1%
Weighted average shares outstanding - diluted			6,614	6,694	(80)	-1.2%

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended March 31,
	2022		2021
	Average	Yield/	Average	Yield/
	balance	rate	balance	rate	$ Change	% Change
Earning assets
Loans	$ 1,346,733	4.97%	$ 1,377,302	4.81%	$ (30,569)	0.16%

Securities
Taxable available-for-sale	52,221	1.73%	25,986	1.61%	26,235	0.12%
Tax-exempt available-for-sale	48,605	2.53%	48,540	2.51%	65	0.02%
Held-to-maturity	207	5.35%	215	5.27%	(8)	0.08%

Securities	101,033	2.12%	74,741	2.21%	26,292	-0.09%

Other interest-earning assets
Interest-earning bank accounts	122,774	0.14%	49,986	0.24%	72,788	-0.10%
Equities	1,353	3.91%	1,388	4.56%	(35)	-0.65%

Other interest-earning assets	124,127	0.18%	51,374	0.36%	72,753	-0.18%

Total interest-earning assets	1,571,893	4.41%	1,503,417	4.53%	68,476	-0.12%

Total non-earning assets	108,280		113,352

Total assets	$ 1,680,173		$ 1,616,769


Interest-bearing liabilities
Checking	$ 257,978	0.25%	$ 263,367	0.31%	$ (5,389)	-0.06%
Savings	232,136	0.24%	184,714	0.27%	47,422	-0.03%
Money market	376,517	0.27%	312,648	0.33%	63,869	-0.06%
Certificates of deposit	290,686	0.95%	368,692	1.59%	(78,006)	-0.64%

Total interest-bearing deposits	1,157,317	0.43%	1,129,421	0.73%	27,896	-0.30%

Non-interest-bearing deposits	285,298		248,661

Total deposits	1,442,615	0.34%	1,378,082	0.60%	64,533	-0.26%

Borrowings	-	0.00%	478	0.32%	(478)	-0.32%
Total interest-bearing liabilities
(excluding non-interest deposits)	1,157,317	0.43%	1,129,899	0.73%	27,418	-0.30%

Non-interest-bearing deposits	285,298		248,661
Total cost of funds	1,442,615	0.34%	1,378,560	0.60%	64,055	-0.26%

Accrued expenses and other liabilities	20,505		26,915
Stockholders' equity	217,053		211,294
Total liabilities and stockholders' equity	$ 1,680,173		$ 1,616,769


Net interest spread		3.98%		3.80%
Net interest margin		4.09%		3.98%

Net interest margin (FTE)¹		4.14%		4.09%

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

The Bank of Princeton
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)

	For the Quarter Ended
	March 31, 2022		December 31, 2021
	Average	Yield/	Average	Yield/
	balance	rate	balance	rate	$ Change	% Change
Earning assets
Loans	$ 1,346,733	4.97%	$ 1,347,511	4.96%	$ (778)	0.01%

Securities
Taxable available-for-sale	52,221	1.73%	50,124	1.56%	2,097	0.17%
Tax-exempt available-for-sale	48,605	2.53%	47,562	2.47%	1,043	0.06%
Held-to-maturity	207	5.35%	209	5.27%	(2)	0.08%

Securities	101,033	2.12%	97,895	2.01%	3,138	0.11%

Other interest-earning assets
Interest-earning bank accounts	122,774	0.14%	157,550	0.11%	(34,776)	0.03%
Equities	1,353	3.91%	1,338	3.99%	15	-0.08%

Other interest-earning assets	124,127	0.18%	158,888	0.15%	(34,761)	0.03%

Total interest-earning assets	1,571,893	4.41%	1,604,294	4.31%	(32,401)	0.10%

Total non-earning assets	108,280		102,987

Total assets	$ 1,680,173		$ 1,707,281


Interest-bearing liabilities
Checking	$ 257,978	0.25%	$ 274,944	0.26%	$ (16,966)	-0.01%
Savings	232,136	0.24%	223,590	0.23%	8,546	0.01%
Money market	376,517	0.27%	367,493	0.27%	9,024	0.00%
Certificates of deposit	290,686	0.95%	312,634	1.09%	(21,948)	-0.14%

Total interest-bearing deposits	1,157,317	0.43%	1,178,661	0.48%	(21,344)	-0.05%

Non-interest-bearing deposits	285,298		288,292

Total deposits	1,442,615	0.34%	1,466,953	0.38%	(24,338)	-0.04%

Total interest-bearing liabilities
(excluding non-interest deposits)	1,157,317	0.43%	1,178,661	0.48%	(21,344)	-0.05%

Non-interest-bearing deposits	285,298		288,292
Total cost of funds	1,442,615	0.34%	1,466,953	0.38%	(24,338)	-0.04%

Accrued expenses and other liabilities	20,505		24,056
Stockholders' equity	217,053		216,272
Total liabilities and stockholders' equity	$ 1,680,173		$ 1,707,281


Net interest spread		3.98%		3.83%
Net interest margin		4.09%		3.96%

Net interest margin (FTE)¹		4.14%		4.02%

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

The Bank of Princeton
Quarterly Financial Highlights
(Unaudited)

	2022	2021	2021	2021	2021
	March	December	September	June	March

Return on average assets	1.45%	1.44%	1.41%	1.34%	1.21%
Return on average equity	11.25%	11.34%	10.95%	10.36%	9.31%
Return on average tangible equity¹	11.86%	11.97%	11.56%	10.95%	9.86%
Net interest margin	4.09%	3.96%	4.08%	4.06%	3.98%
Net interest margin (FTE)²	4.14%	4.02%	4.14%	4.12%	4.09%
Efficiency ratio - Non-GAAP³	53.93%	50.43%	48.16%	50.87%	51.79%

Common Stock Data
Market value at period end	$ 28.85	$ 29.33	$ 29.87	$ 28.67	$ 28.62
Market range:
High	$ 32.05	$ 30.89	$ 20.45	$ 23.91	$ 32.25
Low	$ 28.67	$ 28.71	$ 17.40	$ 17.51	$ 19.09
Book value per common share at period end	$ 33.49	$ 33.42	$ 30.26	$ 29.85	$ 29.39
Tangible book value per common share at period end⁴	$ 31.75	$ 31.96	$ 28.48	$ 28.04	$ 27.56
Shares of common stock outstanding (in thousands)	6,366	6,480	6,588	6,659	6,804

CAPITAL RATIOS
Total Capital (to risk-weighted assets)	14.16%	15.10%	15.60%	15.33%	15.73%
Tier 1 Capital (to risk-weighted assets)	13.10%	13.97%	14.43%	14.19%	14.56%
Tier 1 Capital (to average assets)	12.36%	12.06%	12.29%	12.22%	12.45%
Period-end equity to assets	12.71%	12.84%	12.89%	13.01%	12.62%
Period-end tangible equity to tangible assets	12.13%	12.26%	12.23%	12.40%	11.92%

CREDIT QUALITY DATA AT PERIOD END
(Dollars in thousands)
Net charge-offs (recoveries)	($34)	$101	$821	$1,000	$1,100
Annualized net charge-offs (recoveries) to average loans	-0.010%	0.030%	0.240%	0.279%	0.319%


Total nonperforming loans (TDRs not included)	406	$ 422	$ 1,043	$ 2,381	$ 2,498
Other real estate owned	226	226	376	446	446
Troubled debt restructurings (TDRs)
-Performing	6,066	6,122	6,187	6,241	8,533
-Non-performing	766	766	1,092	1,332	-
Total nonperforming assets and accruing TDRs	$ 7,464	$ 7,536	$ 8,698	$ 10,400	$ 11,477

Allowance for credit losses as a percent of:
Period-end loans	1.19%	1.24%	1.22%	1.14%	1.10%
Nonaccrual loans	1420.99%	1398.99%	769.13%	491.03%	781.77%
Nonperforming assets	1191.27%	1175.39%	653.96%	432.05%	642.19%

As a percent of total loans:
Nonaccrual loans	0.08%	0.09%	0.16%	0.23%	0.14%
Accruing TDRs	0.43%	0.46%	0.46%	0.45%	0.59%
Nonaccrual loans and accruing TDRs	0.52%	0.55%	0.62%	0.71%	0.77%


¹Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.
²Includes the effect of tax exempt securities and loans
³The efficiency ratio is a non-GAAP measure that represents the ratio of non-interest expense (excluding amortization of core deposit intangible)
divided by net interest income and non-interest income.
⁴Tangible book value per common share is a non-GAAP measure that represents book value per common share which
excludes goodwill and core deposit intangible.

Contact George Rapp

609.454.0718

grapp@thebankofprinceton.com

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SOURCE The Bank of Princeton

The Bank of Princeton Announces First Quarter 2022 Results