Princeton Bancorp Announces First Quarter 2023 Results

Total stockholders' equity at March 31, 2023 increased $5.7 million or 2.6% when compared to the end of 2022. The increase was primarily due to the $3.9 million increase in retained earnings, consisting of $6.1 million in income less $1.9 million of cash dividends recorded during the period, and a $1.2 million reduction in the accumulated other comprehensive loss on the available-for-sale investment portfolio. The ratio of equity to total assets at March 31, 2023 and at December 31, 2022, was 14.2% and 13.7%, respectively.  

Asset Quality

At March 31, 2023, non-performing assets totaled $6.5 million, an increase of $6.2 million, when compared to the amount at December 31, 2022.  This increase was due to the delinquency of a $6.2 million commercial real estate loan.  The loan is sufficiently secured by a mixed-use property comprising two buildings each with retail units and residential apartments.  The property is located in New York City.

Upon the adoption of the Current Expected Credit Losses ("CECL") method of calculating the allowance for credit losses effective January 1, 2023, performing troubled debt restructurings ("TDRs") are no longer reported for the current period.  At December 31, 2022 there were three loans classified as TDR loans totaling $5.9 million and each of these loans was performing in accordance with the agreed-upon terms.  

Review of Quarterly Financial Results

Net interest income was $16.7 million for the first quarter of 2023, compared to $18.2 million for the fourth quarter of 2022 and $15.9 million for the first quarter of 2022.  The decrease from the previous quarter was the result of an increase in interest expense of $1.7 million, or 78.6%, partially offset by an increase in interest income of $154 thousand.  The net interest margin for the first quarter 2023 was 4.59%, decreasing 23 basis points when compared to the fourth quarter of 2022. This decrease was primarily associated with an increase of 54 basis points in the cost of funds associated with rising interest rates. When comparing the three-month periods ended March 31, 2023 and 2022, net interest income increased $807 thousand, which was primarily due to an increase of 126 basis points in the yield earned on interest-earning assets, partially offset by an increase of 84 basis points in the cost of funds.

The Bank recorded a provision for credit losses of $265 thousand during the three months ended March 31, 2023 and $200 thousand during the fourth quarter of 2022. The Bank recorded no provision for the three months ended March 31, 2022. Net recoveries for the three-month periods ended March 31, 2023 and 2022 were $3 thousand and $34 thousand, respectively.  Net charge-offs for the three months ended December 31, 2022 were $406 thousand.  Upon adoption of the CECL method of calculating the allowance for credit losses on January 1, 2023, the Bank recorded a one-time decrease, net of tax, in retained earnings of $284 thousand, a reduction to the allowance for credit losses of $301 thousand and an increase in the reserve for unfunded liabilities of $695 thousand.  During the first quarter of 2023, the Bank recorded a provision for credit losses of $265 thousand and increased the reserve for unfunded liabilities in the amount of $79 thousand.  The coverage ratio of allowance for credit losses to period end loans was 1.19% at March 31, 2023, compared to 1.20% at December 31, 2022.

Total non-interest income of $1.4 million for the first quarter of 2023 increased $377 thousand and $328 thousand, or by 37.8% and 31.4%, when compared to the fourth quarter of 2022 and the quarter ended March 31, 2022, respectively. The increase over the prior quarter was primarily due to a $241 thousand increase in valuation of an SBIC investment and a $115 thousand increase in loan fees. The increase over the first quarter of 2022 period was primarily due to a $256 thousand increase in loan fees and a $91 thousand increase in other non-interest income.

Total non-interest expense for the first quarter of 2023 increased $504 thousand, or 5.4%, when compared to the same period in 2022.  This increase was primarily due to a $498 thousand increase in salaries and benefits expenses and a $265 thousand increase in data processing and communications expenses, partially offset by decreases in occupancy and equipment expenses of $137 thousand, professional fees of $96 thousand and federal deposit insurance expense of $74 thousand. When comparing the quarter ended March 31, 2023 to the immediately preceding quarter, non-interest expense increased $101 thousand, or 1.0%, primarily due to increases in salaries and employee benefits costs and other non-interest expenses, partially offset by decreases in professional fees, occupancy and equipment expenses and data processing and communications expenses.

For the three-month period ended March 31, 2023, the Bank recorded an income tax expense of $1.9 million, resulting in an effective tax rate of 23.8%, compared to an income tax expense of $2.2 million resulting in an effective tax rate of 23.5% for the three-month period ended December 31, 2022, and compared to an income tax expense of $1.6 million resulting in an effective tax rate of 21.1% for the three-month period ended March 31, 2022. 

About Princeton Bancorp, Inc. and The Bank of Princeton

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, 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").

On October 19, 2022, the Bank entered into an Agreement and Plan of Merger (the "Merger Agreement") with Noah Bank, a Pennsylvania-chartered bank ("Noah").  Pursuant to the terms and conditions set forth in the Merger Agreement, Noah will merge with and into the Bank.  The Company has received the requisite approvals of the Merger Agreement from the Federal Deposit Insurance Corporation, and the Pennsylvania and New Jersey state bank regulators. The Company anticipates that the Merger will close in the second quarter of 2023.

Forward-Looking Statements

The Company may from time to time make written or oral "forward-looking statements," including statements contained in the Company's filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company (including this press release), which are made in good faith by the Company 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 Company's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company's control). The following factors, among others, could cause the Company'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 Company and the Bank conduct 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 Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; acquisitions including the Company's pending acquisition of Noah; ability to meet other closing conditions to that acquisition; delay in closing the acquisition; difficulties and delays in integrating the businesses of Noah and the Bank or fully realizing cost savings and other benefits; 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, 2022 under the heading "Risk Factors," and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company 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 Company, except as required by applicable law or regulation.

Princeton Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in thousands, except per share data)
								March 31, 2023 vs					March 31, 2023 vs
		March 31,		December 31,		March 31,		December 31, 2022					March 31, 2022
		2023		2022		2022		$ Change		% Change			$ Change		% Change
ASSETS
Cash and cash equivalents		$         18,024		$         53,351		$         94,030		$  (35,327)		(66.22)	%		$     (76,006)		(80.83)	%
Securities available-for-sale taxable		42,228		42,061		50,409		167		0.40			(8,181)		(16.23)
Securities available-for-sale tax-exempt		42,284		41,341		46,058		943		2.28			(3,774)		(8.19)
Securities held-to-maturity		199		201		206		(2)		(1.00)			(7)		(3.40)
Loans receivable, net of deferred loan fees		1,388,575		1,370,368		1,395,155		18,207		1.33			(6,580)		(0.47)
Allowance for credit losses		(16,507)		(16,461)		(16,654)		(46)		0.28			147		(0.88)
Goodwill		8,853		8,853		8,853		- Werbung Mehr Nachrichten zur Princeton Bancorp Inc Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:22 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Portfolio Update 09:16 - PR Newswire Redde Northgate Plc - Director/PDMR Shareholding 02:00 - PR Newswire International Business Machines Corp - Doc re Form 8-K SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59