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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Princeton Bancorp Inc | NASDAQ:BPRN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 30.61 | 28.61 | 31.54 | 31.06 | 30.33 | 30.75 | 4,389 | 01:00:00 |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
TABLE OF CONTENTS
i
March 31, 2024 |
December 31, 2023 |
|||||||
ASSETS |
||||||||
Cash and due from banks |
$ | $ | ||||||
Interest-earning bank balances |
||||||||
Federal funds sold |
||||||||
Total cash and cash equivalents |
||||||||
Securities available-for-sale, |
||||||||
Securities held-to-maturity |
||||||||
Loans receivable, net of deferred fees and costs |
||||||||
Less: allowance for credit losses |
( |
) | ( |
) | ||||
Loan receivable, net |
||||||||
Bank-owned life insurance |
||||||||
Premises and equipment, net |
||||||||
Accrued interest receivable |
||||||||
Restricted investment in bank stock |
||||||||
Deferred taxes, net |
||||||||
Goodwill |
||||||||
Core deposit intangible |
||||||||
Operating lease right-of-use |
||||||||
Equity method investments |
||||||||
Other assets |
||||||||
TOTAL ASSETS |
$ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
LIABILITIES |
||||||||
Deposits: |
||||||||
Non-interest-bearing |
$ | $ | ||||||
Interest-bearing |
||||||||
Total deposits |
||||||||
Accrued interest payable |
||||||||
Operating lease liability |
||||||||
Other liabilities |
||||||||
TOTAL LIABILITIES |
||||||||
STOCKHOLDERS’ EQUITY: |
||||||||
Common stock, |
||||||||
Paid-in capital |
||||||||
Treasury Stock, at cost of |
( |
) | ||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
TOTAL STOCKHOLDERS’ EQUITY |
||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | $ | ||||||
Three Months Ended March 31, |
||||||||
2024 |
2023 |
|||||||
INTEREST AND DIVIDEND INCOME |
||||||||
Loans receivable, including fees |
$ | $ | ||||||
Securities available-for-sale: |
||||||||
Taxable |
||||||||
Tax-exempt |
||||||||
Securities held-to-maturity |
||||||||
Other interest and dividend income |
||||||||
|
|
|
|
|||||
TOTAL INTEREST AND DIVIDEND INCOME |
||||||||
|
|
|
|
|||||
INTEREST EXPENSE |
||||||||
Deposits |
||||||||
Borrowings |
||||||||
|
|
|
|
|||||
TOTAL INTEREST EXPENSE |
||||||||
|
|
|
|
|||||
NET INTEREST INCOME |
||||||||
Provision for credit losses |
||||||||
|
|
|
|
|||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
||||||||
|
|
|
|
|||||
NON-INTEREST INCOME |
||||||||
Income from bank-owned life insurance |
||||||||
Fees and service charges |
||||||||
Loan fees, including preypayment penalties |
||||||||
Other |
||||||||
|
|
|
|
|||||
TOTAL NON-INTEREST INCOME |
||||||||
|
|
|
|
|||||
NON-INTEREST EXPENSE |
||||||||
Salaries and employee benefits |
||||||||
Occupancy and equipment |
||||||||
Professional fees |
||||||||
Data processing and communications |
||||||||
Federal deposit insurance |
||||||||
Advertising and promotion |
||||||||
Office expense |
||||||||
Core deposit intangible |
||||||||
Other |
||||||||
|
|
|
|
|||||
TOTAL NON-INTEREST EXPENSE |
||||||||
|
|
|
|
|||||
INCOME BEFORE INCOME TAX EXPENSE |
||||||||
INCOME TAX EXPENSE |
||||||||
|
|
|
|
|||||
NET INCOME |
$ | $ | ||||||
|
|
|
|
|||||
Earnings per common share-basic |
$ | $ | ||||||
Earnings per common share-diluted |
$ | $ |
Three Months Ended March 31, |
||||||||
2024 |
2023 |
|||||||
NET INCOME |
$ | $ | ||||||
Other comprehensive income (loss) |
||||||||
Unrealized gains (losses) arising during period on securities available-for-sale |
( |
) | ||||||
|
|
|
|
|||||
Net unrealized gain (loss) |
( |
) | ||||||
Tax effect |
( |
) | ||||||
|
|
|
|
|||||
Total other comprehensive income (loss) |
( |
) | ||||||
|
|
|
|
|||||
COMPREHENSIVE INCOME |
$ | $ | ||||||
|
|
|
|
Common Stock |
Paid-in Capital |
Treasury Stock |
Retained Earnings |
Accumulated Other Comprehensive (Loss) Income |
Total |
|||||||||||||||||||
Three Months Ended March 31, 2024 and 2023 |
||||||||||||||||||||||||
Balance, December 31, 2022 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | ||||||||||||||||||||
Change in accounting principle |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Formation of Princeton Bancorp, Inc. |
( |
) | — | — | — | |||||||||||||||||||
Stock options exercised ( |
— | — | — | |||||||||||||||||||||
Dividends declared $ |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Dividend reinvestment plan ( |
— | ( |
) | — | — | |||||||||||||||||||
Stock-based compensation expense |
— | — | — | — | ||||||||||||||||||||
Balance, March 31, 2023 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Balance, December 31, 2023 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Treasury stock repurchases ( |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Stock options exercised ( |
— | — | — | |||||||||||||||||||||
Share redemption for tax withholding on restricted stock vesting |
— | ( |
) | — | — | — | ( |
) | ||||||||||||||||
Dividends declared $ |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Dividend reinvestment plan ( |
— | ( |
) | — | — | |||||||||||||||||||
Stock-based compensation expense |
— | — | — | — | ||||||||||||||||||||
Balance, March 31, 2024 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||
Three Months Ended March 31, |
||||||||
2024 |
2023 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Provision for credit losses |
||||||||
Depreciation and amortization |
||||||||
Stock-based compensation expense |
||||||||
Amortization of premiums and accretion of discount on securities |
||||||||
Accretion of net deferred loan fees and costs |
( |
) | ( |
) | ||||
Increase in cash surrender value of bank-owned life insurance |
( |
) | ( |
) | ||||
Deferred income tax |
( |
) | ||||||
Amortization of core deposit intangible |
||||||||
Increase (decrease) in accrued interest receivable and other assets |
( |
) | ||||||
Increase (decrease) in accrued interest payable and other liabilities |
( |
) | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchases of available-for-sale |
( |
) | ( |
) | ||||
Principal repayments and maturities on securities available-for-sale |
||||||||
Maturities, calls and principal repayments of securities held-to-maturity |
||||||||
Net increase in loans |
( |
) | ( |
) | ||||
Purchases of premises and equipment |
( |
) | ( |
) | ||||
Redemption (purchases) of restricted bank stock |
( |
) | ||||||
NET CASH USED IN INVESTMENT ACTIVITIES |
( |
) | ( |
) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Net increase (decrease) in deposits |
( |
) | ||||||
Proceeds from overnight borrowings |
||||||||
Cash dividends |
( |
) | ( |
) | ||||
Dividend reinvestment program |
||||||||
Share redemption for tax witholding on restricted stock vesting |
( |
) | ||||||
Purchase of treasury stock |
( |
) | ||||||
Proceeds from exercise of stock options |
||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
( |
) | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
( |
) | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | $ | ||||||
SUPPLEMENTARY CASH FLOWS INFORMATION: |
||||||||
Interest paid |
$ | $ | ||||||
Income taxes paid |
$ | $ | ||||||
Increase in ROU leases |
$ | $ | ||||||
Reclass of paid-in capital related to holding company formation |
$ | $ | ||||||
Reclass of treasury stock related to holding company formation |
$ | $ | ||||||
Reclass of common stock related to holding company formation |
$ | $ | ( |
) |
Three months ended March 31, |
||||||||
2024 |
2023 |
|||||||
Net income applicable to common stock |
$ | $ | ||||||
Weighted average number of common shares outstanding |
||||||||
Basic earnings per share |
$ | $ | ||||||
Net income applicable to common stock |
$ | $ | ||||||
Weighted average number of common shares outstanding |
||||||||
Dilutive effect on common shares outstanding |
||||||||
Weighted average number of diluted common shares outstanding |
||||||||
Diluted earnings per share |
$ | $ | ||||||
Three months ended March 31, |
||||||||||||||||
2024 |
2023 |
|||||||||||||||
Options | Weighted Ave Exercise Price |
Options | Weighted Ave Exercise Price |
|||||||||||||
Options to purchase |
$ | $ | ||||||||||||||
Anti-dilutive |
$ | $ |
March 31, 2024 |
||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
(In thousands) | ||||||||||||||||
Available-for-sale |
||||||||||||||||
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs) |
$ | $ | $ | ( |
) | $ | ||||||||||
U.S. government agency securities |
( |
) | ||||||||||||||
Obligations of state and political subdivisions |
( |
) | ||||||||||||||
Small business association (SBA) securities |
( |
) | ||||||||||||||
Total |
$ | $ | $ | ( |
) | $ | ||||||||||
December 31, 2023 |
||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
(In thousands) | ||||||||||||||||
Available-for-sale |
||||||||||||||||
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs) |
$ | $ | $ | ( |
) | $ | ||||||||||
U.S. government agency securities |
( |
) | ||||||||||||||
Obligations of state and political subdivisions |
( |
) | ||||||||||||||
Small business association (SBA) securities |
( |
) | ||||||||||||||
Total |
$ | $ | $ | ( |
) | $ | ||||||||||
Less than 12 Months |
More than 12 Months |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2024 |
||||||||||||||||||||||||
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs) |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
U.S. government agency securities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Obligations of state and political subdivisions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Small business association (SBA) securities |
( |
) | ( |
) | ||||||||||||||||||||
Total |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Less than 12 Months |
More than 12 Months |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
December 31, 2023 |
||||||||||||||||||||||||
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs) |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
U.S. government agency securities |
( |
) | ( |
) | ||||||||||||||||||||
Obligations of state and political subdivisions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Small business association (SBA) securities |
( |
) | ( |
) | ||||||||||||||||||||
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||
Amortized Cost |
Fair Value |
|||||||
(In thousands) | ||||||||
Due in one year or less |
$ | $ | ||||||
Due after one year through five years |
||||||||
Due after five years through ten years |
||||||||
Due after ten years |
||||||||
Mortgage-backed securities (GSEs) |
||||||||
Small business association (SBA) securities |
||||||||
$ | $ | |||||||
March 31, 2024 |
December 31, 2023 |
|||||||
(In thousands) | ||||||||
Commercial real estate |
$ | $ | ||||||
Commercial and industrial |
||||||||
Construction |
||||||||
Residential first-lien mortgage |
||||||||
Home equity/consumer |
||||||||
Total loans |
||||||||
Deferred fees and costs |
( |
) | ( |
) | ||||
Loans, net |
$ | $ | ||||||
March 31, 2024 |
December 31, 2023 |
|||||||
(In thousands) | ||||||||
Allowance for credit losses - loans |
$ | ( |
) | $ | ( |
) | ||
Allowance for credit losses - off balance sheet |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | ( |
) | $ | ( |
) | |||
|
|
|
|
March 31, 2024 |
December 31, 2023 |
|||||||||||||||
With a Related Allowance |
Without a Related Allowance |
With a Related Allowance |
Without a Related Allowance |
|||||||||||||
(In thousands) | ||||||||||||||||
Commercial real estate |
$ | $ | $ | $ | ||||||||||||
Commercial and industrial |
$ | |||||||||||||||
Construction |
||||||||||||||||
Residential first-lien mortgage |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total nonaccrual loans |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
30-59 Days Past Due |
60-89 Days Past Due |
>90 Days Past Due |
Total Past Due |
Current |
Total Loans Receivable |
Loans Receivable >90 Days and Accruing |
||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Commercial real estate |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||||||
Residential first-lien mortgage |
||||||||||||||||||||||||||||
Home equity/consumer |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days Past Due |
60-89 Days Past Due |
>90 Days Past Due |
Total Past Due |
Current |
Total Loans Receivable |
Loans Receivable >90 Days and Accruing |
||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Commercial real estate |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||||||
Residential first-lien mortgage |
||||||||||||||||||||||||||||
Home equity/consumer |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans |
Total | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total commercial real estate |
||||||||||||||||||||||||||||||||
Current period gross charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||||||||||||||
Pass |
||||||||||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total commercial and industrial |
||||||||||||||||||||||||||||||||
Current period gross charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||||||||||
Pass |
||||||||||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total construction |
||||||||||||||||||||||||||||||||
Residential first-lien mortgage |
||||||||||||||||||||||||||||||||
Performing |
||||||||||||||||||||||||||||||||
Nonperforming |
||||||||||||||||||||||||||||||||
Total residential first-lien mortgage |
||||||||||||||||||||||||||||||||
Home equity/consumer |
||||||||||||||||||||||||||||||||
Performing |
||||||||||||||||||||||||||||||||
Nonperforming |
||||||||||||||||||||||||||||||||
Total home equity/consumer |
||||||||||||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||
Pass |
||||||||||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total loans |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans |
Total | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total commercial real estate |
||||||||||||||||||||||||||||||||
Current period gross charge-offs |
||||||||||||||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||||||||||||||
Pass |
||||||||||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total commercial and industrial |
||||||||||||||||||||||||||||||||
Current period gross charge-offs |
||||||||||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||||||||||
Pass |
||||||||||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||
Total construction |
||||||||||||||||||||||||||||||||
Current period gross charge-offs |
||||||||||||||||||||||||||||||||
Residential first-lien mortgage |
||||||||||||||||||||||||||||||||
Performing |
||||||||||||||||||||||||||||||||
Non performing |
||||||||||||||||||||||||||||||||
Total residential first-lien mortgage |
||||||||||||||||||||||||||||||||
Current period gross charge-offs |
||||||||||||||||||||||||||||||||
Home equity/consumer |
||||||||||||||||||||||||||||||||
Performing |
||||||||||||||||||||||||||||||||
Nonperforming |
||||||||||||||||||||||||||||||||
Total home equity/consumer |
||||||||||||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||
Pass/performing |
||||||||||||||||||||||||||||||||
Special mention |
||||||||||||||||||||||||||||||||
Substandard /non performing |
||||||||||||||||||||||||||||||||
Total loans |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial real estate |
Commercial and industrial |
Construction |
Residential first-lien mortgage |
Home equity/ consumer |
Total |
|||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Allowance for credit losses: |
||||||||||||||||||||||||
Beginning balance |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Provision 1 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Charge-offs |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Recoveries |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
1 |
The provision for credit losses on the Consolidated Statement of Income is $ |
Commercial real estate |
Commercial and industrial |
Construction |
Residential first-lien mortgage |
Home equity/ consumer |
PPP |
Unallocated |
Total |
|||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Allowance for credit losses: |
||||||||||||||||||||||||||||||||
Beginning balance |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
CECL adoption |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Provision 1 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Charge-offs |
||||||||||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
The provision for credit losses on the Consolidated Statement of Income is $ |
March 31, 2024 |
December 31, 2023 |
|||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Demand, non-interest-bearing checking |
$ | % | $ | % | ||||||||||||
Demand, interest-bearing checking |
% | % | ||||||||||||||
Savings |
% | % | ||||||||||||||
Money market |
% | % | ||||||||||||||
Time deposits, $250,000 and over |
% | % | ||||||||||||||
Time deposits, other |
% | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | % | $ | % | |||||||||||||
|
|
|
|
|
|
|
|
Description |
(Level 1) Quoted Price in Active Markets for Identical Assets |
(Level 2) Significant Other Observable Inputs |
(Level 3) Significant Unobservable Inputs |
Total Fair Value March 31, 2024 |
||||||||||||
(In thousands) | ||||||||||||||||
Mortgage-backed securities -U.S. government sponsored enterprise (GSEs) |
$ | $ | $ | $ | ||||||||||||
U.S. government agency securities |
||||||||||||||||
Obligations of state and political subdivisions |
||||||||||||||||
Small Business Association (SBA) securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Securities available-for-sale |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Description |
(Level 1) Quoted Price in Active Markets for Identical Assets |
(Level 2) Significant Other Observable Inputs |
(Level 3) Significant Unobservable Inputs |
Total Fair Value December 31, 2023 |
||||||||||||
(In thousands) | ||||||||||||||||
Mortgage-backed securities -U.S. government sponsored enterprise (GSEs) |
$ | $ | $ | $ | ||||||||||||
U.S. government agency securities |
||||||||||||||||
Obligations of state and political subdivisions |
||||||||||||||||
Small Business Association (SBA) securities |
||||||||||||||||
Securities available-for-sale |
$ | $ | $ | $ | ||||||||||||
Description |
(Level 1) Quoted Price in Active Markets for Identical Assets |
(Level 2) Significant Other Observable Inputs |
(Level 3) Significant Unobservable Inputs |
Total Fair Value March 31, 2024 |
||||||||||||
(In thousands) | ||||||||||||||||
Collateral dependent loan |
$ | $ | $ | $ | ||||||||||||
$ | $ | $ | $ | |||||||||||||
Description |
March 31, 2024 |
Valuation Technique |
Unobservable Input |
Range (Weighted Average) |
||||||||||||
(Dollars in thousands) | ||||||||||||||||
Discount | % | |||||||||||||||
Collateral dependent loan |
$ | Collateral | 1 |
adjustment | ( |
%) |
1 |
Value based on third party offer to purchase note from the Bank. |
Description |
(Level 1) Quoted Price in Active Markets for Identical Assets |
(Level 2) Significant Other Observable Inputs |
(Level 3) Significant Unobservable Inputs |
Total Fair Value December 31 2023 |
||||||||||||
(In thousands) | ||||||||||||||||
Collateral dependent loan |
$ | $ | $ | $ | ||||||||||||
$ | $ | $ | $ | |||||||||||||
Description |
December 31, 2023 |
Valuation Technique |
Unobservable Input |
Range (Weighted Average) |
||||||||||||
(Dollars in thousands) | ||||||||||||||||
Discount | % | |||||||||||||||
Collateral dependent loan |
$ | Collateral | 1 |
adjustment | ( |
%) |
1 |
Value based on third party offer to purchase note from the Bank. |
March 31, 2024 |
||||||||||||||||||||
Carrying Amount |
Estimated Fair Value |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial Assets: |
||||||||||||||||||||
Cash and cash equivalents |
$ | $ | $ | $ | — | $ | — | |||||||||||||
Securities available-for-sale |
— | — | ||||||||||||||||||
Securities held-to-maturity |
— | — | ||||||||||||||||||
Loans receivable, net |
— | — | ||||||||||||||||||
Restricted investments in bank stock |
— | — | ||||||||||||||||||
Accrued interest receivable |
— | — | ||||||||||||||||||
Equity method investments |
— | |||||||||||||||||||
Mortgage servicing rights |
— | — | ||||||||||||||||||
Financial Liabilities: |
||||||||||||||||||||
Deposits |
$ | $ | — | $ | $ | — | ||||||||||||||
Accrued interest payable |
— | — |
December 31, 2023 |
||||||||||||||||||||
Carrying Amount |
Estimated Fair Value |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial Assets: |
||||||||||||||||||||
Cash and cash equivalents |
$ | $ | $ | $ | — | $ | — | |||||||||||||
Securities AFS |
— | — | ||||||||||||||||||
Securities HTM |
— | — | ||||||||||||||||||
Loans receivable, net |
— | — | ||||||||||||||||||
Restricted bank stock |
— | — | ||||||||||||||||||
Accrued interest receivable |
— | — | ||||||||||||||||||
Equity method investments |
— | |||||||||||||||||||
Financial Liabilities |
||||||||||||||||||||
Deposits |
— | — | ||||||||||||||||||
Accrued interest payable |
— | — |
Statement of Financial Condition Location |
Three Months Ended March 31, 2024 |
Year ended December 31, 2023 |
||||||||||
(In thousands) | ||||||||||||
Operating Lease Right of Use Asset: |
||||||||||||
Gross carrying amount |
$ | $ | ||||||||||
Increased asset from new leases |
||||||||||||
Accumulated amortization |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
Net book value |
Operating lease right-of-use asset |
$ | $ | |||||||||
|
|
|
|
|||||||||
Operating Lease Liability: |
||||||||||||
Lease liability |
Operating lease liability | $ | $ | |||||||||
|
|
|
|
Twelve months ended March 31, |
||||
2024 |
$ | |||
2025 |
||||
2026 |
||||
2027 |
||||
2028 |
||||
Thereafter |
||||
Total future operating lease payment |
||||
Amounts representing interest |
( |
) | ||
Present value of net future lease payments |
$ | |||
Three Months Ended March 31, |
||||||||
2024 |
2023 |
|||||||
(In thousands) | ||||||||
Lease cost: |
||||||||
Operating lease |
$ | $ | ||||||
Short-term lease cost |
||||||||
Total lease cost |
$ | $ | ||||||
Other information: |
||||||||
Cash paid for amounts included in the measurement of lease liabilities |
$ | $ | ||||||
Goodwill |
Core Deposit Intangible |
|||||||
(In thousands) | ||||||||
Balance at December 31, 2023 |
$ | $ | ||||||
Amortization expense |
— | ( |
) | |||||
Balance at March 31, 2024 |
$ | $ | ||||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 |
||||
Thereafter |
||||
Total |
$ | |||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis in conjunction with the unaudited consolidated interim financial statements contained in Part I, Item 1 of this report, and with our audited consolidated financial statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” presented in our Form 10-K as of and for the year ended December 31, 2023.
Cautionary Statement Regarding 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 most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the integration of the businesses of the Company and Cornerstone Financial Corporation “Cornerstone” following the completion of the business combination with Cornerstone Transaction, may be more difficult, time-consuming or costly than expected; the ability to obtain required regulatory and shareholder approvals, and the ability to complete the Transaction on the expected timeframe may be more difficult, time-consuming or costly than expected; the global impact of the regional conflicts around the world, including the Ukraine and the Middle East; 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 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; market and monetary fluctuations; market volatility; the value of the Company’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 Company’s products and services; credit risk associated with the Company’s lending activities; risks relating to the real estate market and the Company’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; other acquisitions; changes in consumer spending and saving habits; those risks disclosed in the Company’s filings with the SEC, including under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, 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.
Throughout this document, references to “we,” “us,” or “our” refer to the Company and the Bank.
24
Executive Overview
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 22 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan 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 Cornerstone Financial Corporation, a New Jersey based holding company from Cornerstone bank (“Cornerstone”). Pursuant to the terms and conditions set forth in the Merger Agreement, Cornerstone will merge with and into Princeton Bancorp, with Cornerstone surviving (the “Merger”). The Bank plans to merge Cornerstone with and into the Company immediately after the Merger. The Company has received the requisite approvals of the Merger Agreement from the Federal Deposit Insurance Corporation, and New Jersey state bank regulators. The Company anticipates that the Merger will close in the third quarter of 2024.
The Company’s common stock trades on the “Nasdaq Global Select Market” under ticker symbol, “BPRN.”
Critical Accounting Policies and Estimates
Princeton Bancorp has chosen accounting policies that it believes are appropriate to accurately and fairly report its operating results and financial position, and the Company applies those accounting policies in a consistent manner. The Significant Accounting Policies are summarized in Note 1 to the consolidated financial statements included in the 2023 Annual Report on Form 10-K. There have been no changes to the Critical Accounting Estimates since the Company filed its Annual Report on Form 10-K for the year ended December 31, 2023.
New Accounting Pronouncements
Refer to Note 1 to the consolidated financial statements included in the 2023 Annual Report on Form 10-K and Note 1- Summary of Significant Accounting Policies in this document.
Economy
The US economy is showing signs of stress with inflation hitting a 40-year high, an increase in energy prices, specifically home-heating costs, higher interest rates set by the Federal Open Market Committee (impacting the real estate market) and uncertainties resulting from regional conflicts in around the world, including in Ukraine and the Middle East. However, the unemployment rate in New Jersey is below the national average.
Comparison of Financial Condition at March 31, 2024 and December 31, 2023
General
Total assets were $1.99 billion on March 31, 2024, an increase of $71.5 million, or 3.73%, when compared to $1.92 billion at the end of 2023. The primary reason for the increase in total assets was attributable to increases in available for sale securities of $26.7 million, an increase in net loans of $22.9 million, and an increase in cash and cash equivalents of approximately $21.5 million.
Cash and cash equivalents
Cash and cash equivalents increased $21.5 million, or 14.29%, to $172.1 million at March 31, 2024 compared to December 31, 2023. This increase was primarily related to deposit growth of approximately $69.9 and partially offset by increases in available-for-sale securities of $26.7 million and in total loans of $22.9 million.
25
Investment securities
Total available-for-sale investment securities increased million $26.7, or 29.28%, to $118.1 million at March 31, 2024 compared to December 31, 2023. This increase was related to the purchase of Government National Mortgage Association securities during the first quarter of 2024.
Loans
Loans, net of deferred loan fees and costs, increased $22.9 million, or 1.48%, to $1.57 billion at March 31, 2024 compared to December 31, 2023. The increase in the Company’s net loans consisted of a $19.9 million increase in commercial real estate loans and a $10.8 million increase in construction loans, partially offset by a decrease of $5.0 million in commercial and industrial loans, a decrease of $1.5 million in residential mortgages and a decrease of $770 thousand in HELOC/consumer loans.
Charge-offs for first quarter of 2024 were $283 thousand and recoveries were $107 thousand compared to the fourth quarter of 2023 which recorded charge offs of $55 thousand and recoveries of $65 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.18% at March 31, 2024 and 1.19% at December 31, 2023.
At March 31, 2024, non-performing assets totaled $2.1 million, a decrease of $4.6 million when compared to the amount at December 31, 2023. The decrease was primarily related to a $4.5 million commercial real estate loan which was sold during the first quarter of 2024. Non-performing assets as a percentage of total loans, net of deferred fees and costs, was 0.13% at March 31, 2024 and 0.43% at December 31, 2023.
Deposits
Total deposits at March 31, 2024 increased $69.9 million, or 4.27%, when compared to December 31, 2023. Certificates of deposit increased $77.1 million, money market deposits increased $24.7 million, and savings deposits increased $2.9 million. Partially offsetting these increases were decreases in interest-bearing demand deposits of $32.6 million and non-interest-bearing deposits of $2.2 million.
At March 31, 2024, the Company had approximately $426.7 million in uninsured deposits, consisting of $67.6 million in non-interest-bearing demand deposits, $128.7 million in interest-bearing demand deposits, $128.9 million in money market accounts, $21.3 million in savings deposits and $80.2 million in certificates of deposits.
Borrowings
The Company had no outstanding borrowings at March 31, 2024 and at December 31, 2023.
Stockholders’ equity
Total stockholders’ equity on March 31, 2024 increased $1.6 million or 0.66% when compared to December 31, 2023. The increase was primarily due to the $2.4 million increase in retained earnings, consisting of $4.3 million in net income partially offset by $1.9 million of cash dividends recorded during the period. Additionally, stockholders’ equity declined as a result of a stock buyback of 19,000 shares totaling $579 thousand. The ratio of equity to total assets at March 31, 2024 and at December 31, 2023 was 12.2% and 12.5%, respectively.
Liquidity
Our liquidity, represented by cash and cash equivalents, is a product of our operating, investing and financing activities. Our primary sources of funds are deposits, principal repayments of securities and outstanding loans, and funds provided from operations. In addition, we invest excess funds in short-term interest-earnings assets such as overnight deposits or U.S. agency securities, which provide liquidity to meet lending requirements. While scheduled payments from the amortization of loans and securities and short-term investments are relatively predictable sources of funds, general interest rates, economic conditions and competition greatly influence deposit flows and repayments on loans and mortgage-backed securities.
26
Liquidity (continued)
As a member of the FHLB we are eligible to borrow funds in an aggregate amount of up to 50% of the Company’s total assets, subject to its collateral requirements. Based on available eligible securities and qualified real estate loan collateral, and a $70.0 million line of credit with the FHLB supporting municipal deposits, the Company had the ability to borrow an additional $148.9 million as of March 31, 2024.
As of March 31, 2024, the Bank was eligible to use the Federal Reserve discount window for borrowings. Based on assets pledged as collateral as of the applicable date, the Bank’s borrowing availability was approximately $10.0 million at March 31, 2024. As of March 31, 2024, the Company had no outstanding advances from the discount window.
The Company is also a shareholder of Atlantic Community Bancshares, Inc., the parent company of Atlantic Community Bankers Bank (“ACBB”). As of March 31, 2024, the Company had available borrowing capacity with ACBB of $10.0 million to provide short-term liquidity generally for a period of not more than fourteen days. No amounts were outstanding under our line of credit with ACBB at March 31, 2024.
We believe that our current sources of funds provide adequate liquidity for our current cash flow needs.
Capital Resources
Regulatory Capital Requirements. Federally insured, state-chartered non-member banks are required to maintain minimum levels of regulatory capital. Current FDIC capital standards require these institutions to satisfy a common equity Tier 1 capital requirement and a Tier 1 capital requirement, a leverage capital requirement and a risk-based capital requirement.
In addition, in order to make capital distributions and pay discretionary bonuses to executive officers without restriction, an institution must also maintain additional common equity in excess of the minimum requirements. This excess is referred to as a capital conservation buffer. At March 31, 2024, the required capital conservation buffer is 2.50%.
Under the risk-based capital requirements, “total” capital (a combination of core and “supplementary” capital) must equal at least 8.0% of “risk-weighted” assets. The FDIC also is authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis. Management believes, as of March 31, 2024, that the Bank meets all capital adequacy requirements to which it is subject and is “well capitalized” under applicable regulations.
The Bank’s actual capital amounts and ratios and the regulatory requirements at March 31, 2024 and December 31, 2023 are presented below:
27
Capital Resources (continued)
To be well capitalized | ||||||||||||||||||||||||
For capital conservation | under prompt corrective | |||||||||||||||||||||||
Actual | buffer requirement | action provision | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
March 31, 2024: |
||||||||||||||||||||||||
Total capital (to risk-weighted assets) |
$ | 255,304 | 14.305 | % | $ | 187,392 | 10.500 | % | $ | 178,468 | 10.000 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) |
$ | 236,686 | 13.262 | % | $ | 151,698 | 8.500 | % | $ | 142,774 | 8.000 | % | ||||||||||||
Common equity tier 1 capital (to-risk weighted assets |
$ | 236,686 | 13.262 | % | $ | 124,928 | 7.000 | % | $ | 116,004 | 6.500 | % | ||||||||||||
Tier 1 leverage capital (to average assets) |
$ | 236,686 | 11.994 | % | $ | 128,273 | 6.500 | % | $ | 98,672 | 5.000 | % | ||||||||||||
December 31, 2023: |
||||||||||||||||||||||||
Total capital (to risk-weighted assets) |
$ | 254,030 | 14.677 | % | $ | 181,740 | 10.500 | % | $ | 173,086 | 10.000 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) |
$ | 235,538 | 13.608 | % | $ | 147,123 | 8.500 | % | $ | 138,469 | 8.000 | % | ||||||||||||
Common equity tier 1 capital (to-risk weighted assets |
$ | 235,538 | 13.608 | % | $ | 121,160 | 7.000 | % | $ | 112,506 | 6.500 | % | ||||||||||||
Tier 1 leverage capital (to average assets) |
$ | 235,538 | 12.289 | % | $ | 124,583 | 6.500 | % | $ | 95,833 | 5.000 | % |
Comparison of Operating Results for the Three Months Ended March 31, 2024 and 2023
General
The Company reported net income of $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024, compared to net income of $6.1 million, or $0.95 per diluted common share, for the first quarter of 2023. The decrease in net income for the first quarter of 2024 compared to the same period in 2023 was primarily due to increases in interest expense of $8.7 million and $2.1 million in non-interest expense, partially offset by a $7.5 million increase interest income, $611 thousand increase in non-interest income and a reduction of $835 thousand in income tax expense recorded.
Interest income
Interest income increased $7.5 million for the three months ended March 31, 2024, compared to the same period in 2023. Interest income on loans increased $5.0 million due to increases in both the average balance of loans of $175.4 million and the yield of 60 basis points. Other interest and dividend income increased $2.1 million due to an increase in average balance of $153.6 million and an increase in the yield of 90 basis points. Interest on taxable available-for-sale securities increased $286 thousand due to an 120 basis point increase in yield and a $17 thousand increase in the average balance of taxable available-for-sale securities.
Interest expense
Interest expense on deposits increased $8.7 million to $12.6 million for the three-month period ended March 31, 2024, due to increases in both the rate paid on interest-bearing deposits of 209 basis points and in the average balance of interest-bearing deposits of $351.6 million over the same prior year period.
28
Provision for credit losses
The Company reduced its provision for credit losses by $79 thousand during the three months ended March 31, 2024 while the allowance for credit losses was $10 thousand higher than at December 31, 2023. The decrease in the ACL in the current quarter consisted of $302 thousand increase recorded to the allowance of credit losses and a reduction to the allowance of $116 thousand in unfunded commitments, which is reported in other liabilities on the Company’s statement of condition. Charge-offs were $283 thousand and recoveries were $107 thousand for the quarter ending March 31, 2024.
Non-interest income
Total non-interest income of $2.0 million for the first quarter of 2024 increased $611 thousand, when compared to the quarter ended March 31, 2023. The increase over the first quarter of 2023 was due to increases in loan fees of $373 thousand, $163 thousand of other non-interest income, and $91 thousand in bank owned life insurance income.
Non-interest expense
Total non-interest expense for the first quarter of 2024 increased $2.1 million or 21.1% from the first quarter of 2023. The increase was due primarily to increases in salaries and employee benefits and occupancy and equipment expenses of $1.1 million and $688 thousand, respectively. This increase can be attributed in part to the acquisition of Noah Bank which occurred in the second quarter of 2023.
Provision for income taxes
For the three months ending March 31, 2024, the Company recorded an income tax expense of $1.1 million, resulting in an effective tax rate of 19.7%, compared to an income tax expense of $1.9 million resulting in an effective tax rate of 23.8% for the quarter ended March 31, 2023. The lower effective tax rate record in the first three months ended March 31, 2024, was attributed to a higher level of tax free investments benefit compared to a lower amount of net income.
Average Balances, Net Interest Income, and Yields Earned and Rates Paid
The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to a tax-equivalent basis.
29
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2024 | 2023 | Change 2024 vs 2023 | ||||||||||||||||||||||||||||||
Average Balances |
Income/ Expense |
Yield Rates |
Average Balances |
Income/ Expense |
Yield Rates |
Average Balances |
Yield Rates |
|||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||||||||||
Loans receivable |
$ | 1,551,206 | $ | 24,940 | 6.47 | % | $ | 1,375,849 | $ | 19,894 | 5.86 | % | $ | 175,357 | 0.60 | % | ||||||||||||||||
Securities |
||||||||||||||||||||||||||||||||
Taxable available-for-sale |
58,742 | 564 | 3.86 | % | 42,235 | 278 | 2.66 | % | 16,507 | 1.20 | % | |||||||||||||||||||||
Tax exempt available-for-sale |
40,758 | 285 | 2.81 | % | 41,634 | 284 | 2.77 | % | (876 | ) | 0.05 | % | ||||||||||||||||||||
Held-to-maturity |
182 | 2 | 4.42 | % | 200 | 3 | 5.36 | % | (18 | ) | -0.94 | % | ||||||||||||||||||||
Federal funds sold |
148,069 | 2,009 | 5.46 | % | 8,454 | 95 | 4.56 | % | 139,615 | 0.90 | % | |||||||||||||||||||||
Other interest earning-assets |
18,954 | 266 | 5.64 | % | 5,001 | 58 | 4.77 | % | 13,953 | 0.87 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total interest-earning assets |
1,817,911 | $ | 28,066 | 6.21 | % | 1,473,373 | $ | 20,612 | 5.67 | % | 344,538 | 0.54 | % | |||||||||||||||||||
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|
|
|||||||||||||||||||||||||||||
Other non-earnings assets |
140,660 | 109,354 | 31,306 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 1,958,571 | $ | 1,582,727 | $ | 375,844 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Interest-bearing liabilities |
||||||||||||||||||||||||||||||||
Demand |
$ | 242,030 | $ | 1,193 | 1.98 | % | $ | 264,507 | $ | 551 | 0.84 | % | $ | (22,477 | ) | 1.14 | % | |||||||||||||||
Savings |
147,672 | 921 | 2.51 | % | 182,763 | 417 | 0.92 | % | (35,091 | ) | 1.58 | % | ||||||||||||||||||||
Money markets |
364,150 | 3,557 | 3.93 | % | 268,814 | 1,158 | 1.75 | % | 95,336 | 2.18 | % | |||||||||||||||||||||
Certificates of deposit |
678,306 | 6,947 | 4.12 | % | 364,470 | 1,739 | 1.94 | % | 313,836 | 2.18 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total deposit |
1,432,158 | 12,618 | 3.54 | % | 1,080,554 | 3,865 | 1.45 | % | 351,604 | 2.09 | % | |||||||||||||||||||||
Borrowings |
— | — | 0.00 | % | 6,993 | 86 | 4.99 | % | (6,993 | ) | -4.99 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total interest-bearing liabilities |
1,432,158 | $ | 12,618 | 3.54 | % | 1,087,547 | $ | 3,951 | 1.47 | % | 344,611 | 2.07 | % | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Non-interest-bearing deposits |
244,089 | 242,814 | 1,275 | |||||||||||||||||||||||||||||
Other liabilities |
42,094 | 28,587 | 13,507 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
1,718,341 | 1,358,948 | 359,393 | |||||||||||||||||||||||||||||
Stockholders’ equity |
240,230 | 223,779 | 16,451 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities and stockholder’s equity |
$ | 1,958,571 | $ | 1,582,727 | $ | 375,844 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net interest-earnings assets |
$ | 385,753 | $ | 385,826 | $ | (73 | ) | |||||||||||||||||||||||||
Net interest income; interest rate spread |
2.67 | % | 4.20 | % | -1.53 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net interest margin |
$ | 15,448 | 3.42 | % | $ | 16,661 | 4.59 | % | $ | (1,213 | ) | -1.17 | % | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net interest margin FTE1 |
3.48 | % | 4.66 | % | -1.18 | % |
1 | Includes federal and state tax effect of tax exempt securities and loans. |
30
Rate/Volume Analysis
The following table reflects the changes in our interest income and interest expense segregated into amounts attributable to changes in volume and in yields on interest-earning assets and interest-bearing liabilities during the periods indicated.
2024 vs. 2023 Increase (Decrease) Due to |
||||||||||||
Rate | Volume | Net | ||||||||||
(In thousands) | ||||||||||||
Interest and dividend income: |
||||||||||||
Loans receivable, including fees |
$ | 240 | $ | 4,806 | $ | 5,046 | ||||||
Securities available-for-sale |
||||||||||||
Taxable |
245 | 41 | 286 | |||||||||
Tax-exempt |
6 | (5 | ) | 1 | ||||||||
Securities held-to-maturity |
1 | — | (1 | ) | ||||||||
Federal funds sold |
37 | 1,877 | 1,914 | |||||||||
Other interest and dividend income |
21 | 187 | 208 | |||||||||
|
|
|
|
|
|
|||||||
Total interest and dividend income |
$ | 549 | $ | 6,907 | $ | 7,454 | ||||||
|
|
|
|
|
|
|||||||
Interest expense |
||||||||||||
Demand |
$ | 1,074 | $ | (432 | ) | $ | 642 | |||||
Savings |
1,809 | (1,305 | ) | 504 | ||||||||
Money markets |
(4,300 | ) | 6,699 | 2,399 | ||||||||
Certificates of deposit |
390 | 4,818 | 5,208 | |||||||||
Borrowings |
— | (86 | ) | (86 | ) | |||||||
|
|
|
|
|
|
|||||||
Total interest expense |
$ | (1,027 | ) | $ | 9,696 | $ | 8,667 | |||||
|
|
|
|
|
|
|||||||
Change in net interest income |
$ | 1,576 | $ | (2,789 | ) | $ | (1,213 | ) | ||||
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|
|
|
How We Manage Market Risk
Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from interest rate risk which is inherent in our lending, investment and deposit gathering activities. To that end, management actively monitors and manages interest rate risk exposure. In addition to market risk, our primary risk is credit risk on our loan portfolio. We attempt to manage credit risk through our loan underwriting and oversight policies.
The principal objective of our interest rate risk management function is to evaluate the interest rate risk embedded in certain balance sheet accounts, determine the level of risk appropriate given our business strategy, operating environment, capital and liquidity requirements and performance objectives, and manage the risk consistent with approved guidelines. We seek to manage our exposure to risks from changes in interest rates while at the same time trying to improve our net interest spread. We monitor interest rate risk as such risk relates to our operating strategies. We have established an Asset/Liability Committee which is comprised of both Management and members of the Board of Directors. The Asset/Liability Committee meets on a regular basis and is responsible for reviewing our asset/liability policies and interest rate risk position. Both the extent and direction of shifts in interest rates are uncertainties that could have a negative impact on future earnings.
31
Gap Analysis. The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive” and by monitoring the Company’s interest rate sensitivity “gap.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period. The interest rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that same time period. A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate-sensitive liabilities. A gap is considered negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets. During a period of rising interest rates, a negative gap would tend to affect adversely net interest income while a positive gap would tend to result in an increase in net interest income. Conversely, during a period of falling interest rates, a negative gap would tend to result in an increase in net interest income while a positive gap would tend to affect adversely net interest income.
The table on the next page sets forth the amounts of our interest-earning assets and interest-bearing liabilities outstanding at March 31, 2024, which we expect, based upon certain assumptions, to reprice or mature in each of the future time periods shown (the “GAP Table”). Except as stated below, the amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at March 31, 2024, based on contractual maturities, anticipated prepayments, and scheduled rate adjustments within a three-month period and subsequent selected time intervals. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and anticipated prepayments of adjustable-rate loans and fixed-rate loans, and as a result of contractual rate adjustments on adjustable-rate loans.
3 Months or Less |
More than 3 Months to 1 Year |
More than 1 Year to 3 Years |
More than 3 Years to 5 Years |
More than 5 Years |
Non-Rate Sensitive |
Total Amount | ||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||
Interest-earning assets: (1) |
||||||||||||||||||||||||||||
Investment securities |
$ | 13,567 | $ | 14,261 | $ | 22,117 | $ | 16,552 | $ | 64,219 | $ | (12,450 | ) | $ | 118,266 | |||||||||||||
Loans receivable |
495,979 | 214,358 | 401,487 | 419,068 | 35,491 | (13,770 | ) | 1,552,613 | ||||||||||||||||||||
Other interest-earnings assets (2) |
159,027 | — | — | — | — | 13,040 | 172,067 | |||||||||||||||||||||
Other non-interest assets |
— | — | — | — | — | 145,055 | 145,055 | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total interest-earning assets |
$ | 668,573 | $ | 228,619 | $ | 423,604 | $ | 435,620 | $ | 99,710 | $ | (13,180 | ) | $ | 1,988,001 | |||||||||||||
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|
|
|
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Interest-bearing liabilities: |
||||||||||||||||||||||||||||
Checking and savings accounts |
$ | 364,750 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 364,750 | ||||||||||||||
Money market accounts |
378,652 | — | — | — | — | — | 378,652 | |||||||||||||||||||||
Certificate accounts |
242,238 | 272,624 | 199,163 | 1,137 | — | — | 715,162 | |||||||||||||||||||||
Borrowings |
— | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total interest-bearing liabilities |
$ | 985,640 | $ | 272,624 | $ | 199,163 | $ | 1,137 | $ | — | $ | — | $ | 1,458,564 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets less interest-bearing liabilities |
$ | (317,067 | ) | $ | (44,005 | ) | $ | 224,441 | $ | 434,483 | $ | 99,710 | $ | (13,180 | ) | $ | 529,437 | |||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cumulative interest-rate sensitivity gap (3) |
$ | (317,067 | ) | $ | (361,072 | ) | $ | (136,631 | ) | $ | 297,852 | $ | 397,562 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Cumulative interest-rate gap as a percentage of total assets at March 31, 2024 |
-15.95 | % | -18.16 | % | -6.87 | % | 14.98 | % | 20.00 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities at March 31, 2024 |
67.83 | % | 71.30 | % | 90.63 | % | 120.42 | % | 127.26 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Interest-earnings assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities. |
(2) | Includes interest-bearing bank balances, FHLB Stock and Federal Funds Sold |
(3) | Interest-rate sensitivity gap represents the difference between total interest-earning assets and total interest-bearing liabilities. |
32
Certain shortcomings are inherent in the method of analysis presented in the foregoing table. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. Additionally, certain assets, such as adjustable-rate loans, have features which restrict changes in interest rates both on a short-term basis and over the life of the asset. Further, in the event of a change in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the table. Finally, the ability of many borrowers to service their adjustable-rate loans may decrease in the event of an interest rate increase.
Net Portfolio Value Analysis. Our interest rate sensitivity is also monitored by management through the use of a model which generates estimates of the changes in our net portfolio value (“NPV”) over a range of interest rate scenarios. NPV is the present value of expected cash flows from assets, liabilities, and off-balance sheet contracts. The NPV ratio, under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The following table sets forth our NPV as of March 31, 2024, and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.
Change in | NPV as % of Portfolio | |||||||||||||||||||
Interest Rates | Net Portfolio Value | Value of Assets | ||||||||||||||||||
In Basis Points | ||||||||||||||||||||
(Rate Shock) |
Amounts | $ Change | % Change | NPV Ratio | Change | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
300 |
$ | 260,809 | $ | (4,296 | ) | -1.62 | % | -5.31 | % | -4.72 | % | |||||||||
200 |
$ | 264,795 | $ | (310 | ) | -0.12 | % | -3.79 | % | -3.20 | % | |||||||||
100 |
$ | 266,202 | $ | 1,097 | 0.41 | % | -2.22 | % | -1.63 | % | ||||||||||
Static |
$ | 265,105 | $ | — | -0.59 | % | ||||||||||||||
(100) |
$ | 270,264 | $ | 5,159 | 1.95 | % | 0.90 | % | 1.49 | % | ||||||||||
(200) |
$ | 274,379 | $ | 9,274 | 3.50 | % | 2.09 | % | 2.68 | % | ||||||||||
(300) |
$ | 265,028 | $ | (77 | ) | -0.03 | % | 3.30 | % | 3.89 | % |
As is the case with the GAP Table, certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in NPV require the making of certain assumptions which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the models presented assume that the composition of our interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the NPV model provides an indication of interest rate risk exposure at a particular point in time, such model is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on net interest income and will differ from actual results.
33
Item 3. Quantitative and Qualitative Disclosures About Market Risk
A smaller reporting company, such as the Company, is not required to provide the information by this Item. Certain market risk disclosure is set forth in Item 2 above under “How We Manage Market Risk.”
Item 4. Controls and Procedures
Disclosure Controls and Procedures
Management, with the participation of the Company’s Chief Executive Officer and its Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule l3a-l5 (e) promulgated under the Exchange Act) as of March 31, 2024. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective as of March 31, 2024 to ensure that the information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in FDIC rules and forms.
Changes in Internal Control Over Financial Reporting
There was no change in the Company’s internal control over financial reporting identified during the quarter ended March 31, 2024, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
34
Total Number of Shares Purchased |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Program 1 |
Maximum Number of Shares that May Yet be Purchased Under Plans or Programs 1 |
|||||||||||||
Period |
314,000 | |||||||||||||||
January 1 - 31, 2024 |
— | $ | — | — | 314,000 | |||||||||||
February 1 - 29, 2024 |
— | $ | — | — | 314,000 | |||||||||||
March 1 - 31, 2024 |
19,000 | $ | 30.44 | 19,000 | 295,000 | |||||||||||
|
|
|
|
|
|
|||||||||||
19,000 | $ | 30.44 | 19,000 | |||||||||||||
|
|
|
|
|
|
1 |
On August 10, 2023, the Company announced a stock repurchase program to repurchase up to 314,000 shares of common stock, approximately 5% of the Company’s outstanding shares of common stock, over a period of time necessary to complete such repurchases. |
Item 6. Exhibits
Exhibit |
Description | |
2.1 | Agreement and Plan of Merger, dated January 18, 2024, by and between Princeton Bancorp, Inc. and Cornerstone Financial Corporation (incorporated by reference to the registrant’s Current Report on Form 8-K filed with the SEC on January 18, 2024)* | |
31.1 | Rule 13a-14(a) Certification on the Principal Executive Officer | |
31.2 | Rule 13a-14(a) Certification on the Principal Financial Officer | |
32 | Section 1350 Certifications | |
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document | |
101.SCH | InlineXBRL Taxonomy Extension Schema Document | |
101.CAL | InlineXBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | InlineXBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | InlineXBRL Taxonomy Extension Label LinkbaseDocument | |
101.PRE | InlineXBRL Taxonomy Extension Label LinkbaseDocument | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document |
* | The schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish a copy of such schedules, or any section thereof, to the SEC upon request. |
36
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Princeton Bancorp, Inc. | ||||||
Date: May 14, 2024 | By: | /s/ Edward Dietzler | ||||
Edward Dietzler | ||||||
Chief Executive Officer and President (Principal Executive Officer) | ||||||
By: | /s/ George Rapp | |||||
George Rapp | ||||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
37
Exhibit 31.1
RULE 13A-14(a) CERTIFICATION
OF THE PRINCIPAL EXECUTIVE OFFICER
I, Edward Dietzler, Chief Executive Officer and President of Princeton Bancorp, Inc., certify that:
1. I have reviewed this quarterly report on Form 10-Q of Princeton Bancorp, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, considering the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting;
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: May 14, 2024 | /s/ Edward Dietzler | |||||
Edward Dietzler | ||||||
Chief Executive Officer and President | ||||||
(Principal Executive Officer) |
Exhibit 31.2
RULE 13A-14(a) CERTIFICATION
OF THE PRINCIPAL FINANCIAL OFFICER
I, George Rapp, Executive Vice President and Chief Financial Officer of Princeton Bancorp, Inc., certify that:
1. I have reviewed this quarterly report on Form 10-Q of Princeton Bancorp, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting;
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: May 14, 2024 | /s/ George Rapp | |||||
George Rapp | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
Exhibit 32
SECTION 1350 CERTIFICATIONS
In connection with the Quarterly Report of Princeton Bancorp, Inc. on Form 10-Q for the period ended March 31, 2024 as filed with the United States Securities and Exchange Commission on the date hereof (the Report), the undersigned certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Princeton Bancorp, Inc.
/s/ Edward Dietzler | ||||||
Edward Dietzler | ||||||
Chief Executive Officer and President | ||||||
(Principal Executive Officer) | ||||||
/s/ George Rapp | ||||||
George Rapp | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) | ||||||
Date: May 14, 2024 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Held to maturity debt securities at fair value | $ 199 | $ 200 |
Common stock par or stated value per share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Common stock shares issued | 6,320,356 | 6,299,331 |
Common stock shares outstanding | 6,320,356 | 6,299,331 |
Treasury share common stock | 19,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
NET INCOME | $ 4,345 | $ 6,097 |
Other comprehensive income (loss) | ||
Unrealized gains (losses) arising during period on securities available-for-sale | (434) | 1,739 |
Net unrealized gain (loss) | (434) | 1,739 |
Tax effect | 143 | (498) |
Total other comprehensive income (loss) | (291) | 1,241 |
COMPREHENSIVE INCOME | $ 4,054 | $ 7,338 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Paid-in Capital [Member] |
Treasury Stock, Common [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive (Loss) Income [Member] |
---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2022 | $ 219,601 | $ 34,547 | $ 81,291 | $ (19,452) | $ 131,488 | $ (8,273) |
Net income | 6,097 | 6,097 | ||||
Other comprehensive loss | 1,241 | 1,241 | ||||
Change in accounting principle | (284) | (284) | ||||
Formation of Princeton Bancorp, Inc. | (34,547) | 15,095 | 19,452 | |||
Stock options exercised | 297 | 0 | 297 | |||
Dividends declared | (1,843) | (1,843) | ||||
Stock-based compensation expense | 164 | 164 | ||||
Dividend reinvestment plan | 0 | 33 | (33) | |||
Ending balance at Mar. 31, 2023 | 225,273 | 0 | 96,880 | 0 | 135,425 | (7,032) |
Beginning balance at Dec. 31, 2023 | 240,211 | 0 | 98,291 | 0 | 149,414 | (7,494) |
Net income | 4,345 | 4,345 | ||||
Other comprehensive loss | (291) | (291) | ||||
Stock options exercised | 34 | 0 | 34 | |||
Share redemption for tax withholding on restricted stock vesting | (249) | (249) | ||||
Dividends declared | (1,866) | (1,866) | ||||
Purchase of treasury stock | (579) | (579) | ||||
Stock-based compensation expense | 203 | 203 | ||||
Dividend reinvestment plan | 0 | 33 | (33) | |||
Ending balance at Mar. 31, 2024 | $ 241,808 | $ 0 | $ 98,312 | $ (579) | $ 151,860 | $ (7,785) |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Stock issued during the period stock options exercised | 2,450 | 16,307 |
Common stock dividend declared per share paid | $ 0.3 | $ 0.3 |
Treasury stock shares acquired | 19,000 | |
Stock issued during period shares dividend reinvestment plan | 1,018 | 958 |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 4,345 | $ 6,097 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Organization and Nature of Operations The Bank of Princeton (the “Bank”) was incorporated on March 5, 2007, under the laws of the State of New Jersey and is a New Jersey state-chartered banking institution. The Bank was granted its bank charter on April 17, 2007, commenced operations on April 23, 2007, and is a full-service bank providing personal and business lending and deposit services. As a state-chartered bank, the Bank is subject to regulation by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation (“FDIC”). The area served by the Bank, through its 29 branches, is generally an area within an approximate 50-mile radius of Princeton, NJ, including parts of Burlington, Camden, Gloucester, Hunterdon, Mercer, Middlesex, Ocean, and Somerset Counties in New Jersey, and additional areas in portions of Philadelphia, Montgomery, and Bucks Counties in Pennsylvania. The Bank also has two retail branches and conducts loan origination activities in select areas of New York. The Bank offers traditional retail banking services, one-to-four-family On January 10, 2023, Princeton Bancorp, Inc., a Pennsylvania corporation formed by the Bank (the “Company”), acquired all the outstanding stock of the Bank in a corporate reorganization. As a result, the Bank became the sole direct subsidiary of the Company, the Company became the holding company for the Bank and the stockholders of the Bank became stockholders of the Company. As of March 31, 2024, the Company had 211 total employees and 209 full-time equivalent employees. On May 19, 2023, the Company completed the acquisition of Noah Bank, a Pennsylvania chartered state bank headquartered in Elkins Park, Pennsylvania that primarily served the Philadelphia, North New Jersey, and New York City markets. On that date, the Company acquired 100% of the outstanding common stock of Noah Bank for cash, and Noah Bank was merged with and into the Bank. On January 18, 2024, the Company announced that it has entered into a definitive agreement and plan of merger pursuant to which the Company will acquire Cornerstone Financial Corporation (“Cornerstone”), the parent company of Cornerstone Bank, Mount Laurel, New Jersey in a transaction valued at approximately $17.9 million. Under the terms of the merger agreement, which has been approved by the boards of directors of both companies, Cornerstone will merge with, into and under the charter of the Company. In the merger, each share of Cornerstone common stock outstanding will be exchanged for 0.24 shares of the Company, subject to adjustment, having a value of $8.16 per share based on the $34.00 closing price of the Company common stock on January 17, 2024. Each share of Cornerstone’s preferred stock outstanding will be exchanged for its stated value of $1,000 per share. The transaction is subject to receipt of all required banking regulatory approvals, Cornerstone stockholder approval and certain financial and other contingencies. The transaction is expected to close in the second or third quarter of 2024. Basis of Financial Statement Presentation The unaudited consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission and the FDIC. Accordingly, they do not include all the information and disclosures required by GAAP for annual financial statements. In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of acquired assets and liabilities, and evaluation of the potential impairment of goodwill. Management believes that the allowance for credit losses is adequate as of March 31, 2024. While management uses current information to recognize losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions in the market area or other factors. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations. Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. Recent Accounting Pronouncements Not Yet Adopted The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07 in November 2023, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024. Early adoption is permitted. The company has only one reportable segment, ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. ASU No. 2023-09 In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements. ASU 2023-06, “Disclosure improvements” Amends disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The effective dates will depend, in part, on whether an entity is already subject to the SEC’s current disclosure requirements. This ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Note 2 - Earnings Per Share Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares outstanding for the period adjusted to include the effect of outstanding stock options, if dilutive, using the treasury stock method. Shares issued during any period are weighted for the portion of the period they were outstanding. The following schedule presents earnings per share data for the three-month periods ended March 31, 2024, and 2023 (in thousands, except per share data):
The following schedule presents stock options granted but not exercised and the amount of share that were anti-dilutive because the weighted average exercise price equaled or exceeded the estimated fair value of our common stock for the three-months period ended March 31, 2024, and 2023:
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Note 3 – Investment Securities The following summarizes the amortized cost and fair value of securities available-for-sale
The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities available-for-sale
The amortized cost and fair value of securities available-for-sale
Proceeds from calls and maturities of securities available-for-sale The Company uses a defined CECL methodology for allowance for credit losses on its investment securities available-for-sale. available-for-sale The Company’s securities primarily consist of the following types of instruments; U.S. guaranteed mortgage-backed securities, U.S guaranteed agency bonds, state and political subdivision issued bonds and mortgage related securities guaranteed by the SBA We believe it is reasonable to expect that the securities with a credit guarantee of the U.S. government will have a zero-credit loss. Therefore, no reserve was recorded for U.S. guaranteed securities or bonds at March 31, 2024. The state and political subdivision securities carry a minimum investment rating of A by either Moody’s or Standard and Poor. Some of the smaller municipalities also have insurance to cover the Company in the event of default. Therefore, the Company did not project a credit loss and therefore no reserve was recorded as of March 31, 2024. At March 31, 2024, the Company’s available-for-sale available-for-sale available-for-sale available-for-sale securities-GSE aggregating $30.2 million with a loss of $6.5 million and four agency securities aggregating $5.2 million with a loss of $1.1 million. The Company does not intend to sell these securities, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. Unrealized losses primarily relate to interest rate fluctuations and not credit concerns. There are no securities pledged as of March 31, 2024, and December 31, 2023.
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Loans Receivable |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable | Note 4 – Loans Receivable Loans receivable, net at March 31, 2024 and December 31, 2023 were comprised of the following:
The Company did not purchase any loans during the three months ended March 31, 2024, or 2023. Upon CECL, the Company uses the discounted cash flow methodology in determining the appropriate quantitative adjustments, which projects future losses, based on historical and peer loss data, as part of the allowance for credit losses (“ACL”) reserve. Qualitative adjustments include and consider changes in national, regional, and local economic and business conditions, an assessment of the lending environment, including underwriting standards, and other factors affecting credit quality. There were no significant changes to the Company’s ACL methodology for the quarter ended March 31, 2024. The following table presents the components of the allowance for credit losses:
The following table presents nonaccrual loans by segment of the loan portfolio as of March 31, 2024 and December 31, 2023:
The calculation of the allowance for credit losses does not include any accrued interest receivable. The Company’s policy is to write off any interest not collected after 90 days. During the three-month period ending March 31, 2024, the Company wrote off $310 thousand in accrued interest receivable for loans, compared to $130 thousand for the three-month period ending March 31, 2023. Accrued interest receivable related to loans, at March 31, 2024, and March 31, 2023, was
The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2023:
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis and assigns one of the following ratings: pass, special mention, substandard and doubtful. The Company engages a third party to review its assessment on a semiannual basis. The Company classifies residential and consumer loans as either performing or nonperforming based on payment status. The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of March 31, 2024.
F-14 The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2023.
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2024:
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2023:
As of March 31, 2024, the Company had six loans totaling $2.1 million that were individually analyzed for potential credit loss and all the loans have real estate as credit support. Compared to December 31, 2023, the Company had nine loans totaling $6.7 million that were individually analyzed for potential credit loss. Occasionally, the Company will modify the contractual terms of loans to a borrower experiencing financial difficulties as a way to mitigate loss, proactively work with borrowers in financial difficulty, or to comply with regulations regarding the treatment of certain bankruptcy filing and discharge situations. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit base on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. When principal forgiveness is provided, the amount forgiven is charged off against the allowance for credit losses on loans.
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Deposits |
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Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Note 5 – Deposits The components of deposits were as follows:
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Borrowings |
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Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 6 – Borrowings At March 31, 2024, and December 31, 2023, the Company had no borrowings outstanding.
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Fair Value Measurements and Disclosure |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Disclosure | Note 7 – Fair Value Measurements and Disclosures The Company follows the guidance on fair value measurements now codified as FASB ASC Topic 820, Fair Value Measurement . Management uses its best judgment in estimating the fair value of the Company’s financial instruments, however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective period-end and have not been re-evaluated or updated for the purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each period-end. The fair value measurement hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Level 2 Level 3 An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024 were as follows:
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy, used at December 31, 2023 were as follows:
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024, were as follows.
The following table presents quantitative information using Level 3 fair value measurements at March 31, 2024.
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2023, were as follows:
The following table presents quantitative information using Level 3 fair value measurements at December 31, 2023.
There were no transfers between fair value hierarchy levels during the three months ended March 31, 2024 or 2023. The Company’s policy is to recognize transfers between levels as of the end of the reporting period. The following methods and assumptions were used by the Company in estimating fair value disclosures: Investment Securities The fair value of securities available-for-sale held-to-maturity Individual evaluated loans (generally carried at fair value) Individual loans carried at fair value are those loans in which the Company has measured for a reserve and are generally based on the fair value of the related loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds, discounted for estimated selling costs or other factors the Company determines will impact collection of proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The carrying amounts and estimated fair value of financial instruments at March 31, 2024 are as follows.
The carrying amounts and estimated fair value of financial instruments at December 31, 2023 are as follows:
The fair value of cash and cash equivalents, restricted bank stock, accrued interest receivable, and accrued interest payable are measured at the Company’s carrying amount. The fair value of loans, deposits and borrowings are measured on a discounted basis using similar rates and terms. The Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is obtained through independent third-party valuations. Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Limitations The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all the financial instruments were offered for sale. This is due to the fact that no market exists for a sizable portion of the loan, deposit and off-balance sheet instruments. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. Finally, reasonable comparability between financial institutions may not be practical due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Note 8 – Leases Leases (Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 26 operating lease agreements for 25 branches and its corporate offices with terms extending through 2039. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability. The following table represents the classification of the Company’s right of use and lease liability.
As of March 31, 2024, the weighted-average remaining lease terms for operating leases was 11.6 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.48%. The Company used FHLB fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term. Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2024 (in thousands):
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Goodwill and Core Deposit Intangible |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Core Deposit Intangible | Note 9 – Goodwill and Core Deposit Intangible In accordance with ASC 805, the Company recorded $8.9 million of goodwill along with a core deposit intangible asset of $4.2 million of for the five branches acquired in 2019. The Noah Bank acquisition that occurred in 2023 did not generate any goodwill, but the Bank recorded $98 thousand in core deposit intangible asset. The core deposit intangible asset is being amortized over 10 years, using the sum of the year’s digits. Except as set forth below, GAAP requires that goodwill be tested for impairment annually (with the Company’s annual evaluation occurring on May 31 of each year) or more frequently if impairment indicators arise. The reporting unit was determined to be our community banking operations, which is our only operating segment. ASC Topic 350-20 guidance requires an annual review of the fair value of a Reporting Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a Reporting Unit is less than its carrying amount, including goodwill. A qualitative factor test can be performed to determine whether it is necessary to perform a quantitative goodwill impairment test. If this qualitative test determines it is not more likely than not (less than % probability) that the fair value of the Reporting Unit is less than the Carrying Value, then the Company does not have to perform a quantitative test and goodwill can be considered not impaired. The Company performed its annual review at May 31, 2023 and determined that it was more than 50% probable the fair value of the Reporting Unit exceeds the then Carrying Value, therefore a quantitative test was not required as of May 31, 2023. The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:
As of March 31, 2024, the remaining current fiscal year and future fiscal periods amortization for the core deposit intangible is (in thousands):
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Subsequent Events |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10 – Subsequent Events On April 23, 2024, during the Company’s annual shareholder meeting, the Board of Directors approved an amendment to the Company’s articles of incorporation to authorize a class of preferred stock consisting of 2,000,000 shares. On April 24, 2024, the Board of Directors declared a cash dividend of $0.30 per share of common stock to shareholders of record on May 10, 2024, payable on May 31, 2024.
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Risk and Uncertainties |
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Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Risk and Uncertainties | Note 11 – Risk and Uncertainties The occurrence of events which adversely affect the global, national, and regional economies may have a negative impact on our business. Like other financial institutions, our business relies upon the ability and willingness of our customers to transact business with us, including banking, borrowing and other financial transactions. A strong and stable economy at each of the local, federal, and global levels is often a critical component of consumer confidence and typically correlates positively with our customers’ ability and willingness to transact certain types of business with us. Local and global events outside of our control which disrupt the New Jersey, Pennsylvania, New York, United States and/or global economy may therefore negatively impact our business and financial condition. Government economic programs intended to backstop and bolster the economy through the pandemic have ended, and the nation’s economy has entered an inflationary phase. The Consumer Price Index has risen to levels not experienced since the 1980s while the labor market remains very tight, contributing additional inflationary pressure. To address the inflation problem, the Federal Reserve has reversed course on its previously accommodative monetary policies and aggressively increased short-term interest rates. These actions are intended to slow overall economic activity and risk entering the economy into a recession. Regional conflicts around the world, including between Russia and Ukraine, have exacerbated pandemic-related supply chain issues, upset numerous global markets including energy and certain raw materials, and generally added to economic uncertainty and geopolitical instability. Any or all could have negative downstream effects on the Company’s operating results, the extent of which is indeterminable at this time.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The unaudited consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries: Bayard Lane, LLC, Bayard Properties, LLC, 112 Fifth Avenue, LLC, TBOP Delaware Investment Company and TBOP REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission and the FDIC. Accordingly, they do not include all the information and disclosures required by GAAP for annual financial statements. In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023. |
Estimates | Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes, actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of acquired assets and liabilities, and evaluation of the potential impairment of goodwill. Management believes that the allowance for credit losses is adequate as of March 31, 2024. While management uses current information to recognize losses on loans, future additions to the allowance for credit losses may be necessary based on changes in economic conditions in the market area or other factors. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to effect certain changes that result in additions to the allowance based on their judgments about information available to them at the time of their examinations.
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Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation.
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Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07 in November 2023, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024. Early adoption is permitted. The company has only one reportable segment, ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. ASU No. 2023-09 In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements. ASU 2023-06, “Disclosure improvements” Amends disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The effective dates will depend, in part, on whether an entity is already subject to the SEC’s current disclosure requirements. This ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share (Tables) |
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Summary of earnings per share | The following schedule presents earnings per share data for the three-month periods ended March 31, 2024, and 2023 (in thousands, except per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following schedule presents stock options granted but not exercised and the amount of share that were anti-dilutive because the weighted average exercise price equaled or exceeded the estimated fair value of our common stock for the three-months period ended March 31, 2024, and 2023:
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Investment Securities (Tables) |
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Summary of amortized cost and estimated fair value | The following summarizes the amortized cost and fair value of securities available-for-sale
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Summary of fair value of related securities available-for-sale | The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities available-for-sale
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Summary of securities available-for-sale by contractual maturity | The amortized cost and fair value of securities available-for-sale
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Loans Receivable (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loans receivable net | Loans receivable, net at March 31, 2024 and December 31, 2023 were comprised of the following:
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Summary of components of allowance for credit losses | The following table presents the components of the allowance for credit losses:
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Summary of nonaccrual loans by segment of loan portfolio | The following table presents nonaccrual loans by segment of the loan portfolio as of March 31, 2024 and December 31, 2023:
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Summary of performance and credit quality of loan portfolio | The following table presents the segments of the loan portfolio, summarized by the past due status as of March 31, 2024:
The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2023:
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Summary of loans by year of origination, internally assigned credit grades and risk characteristics | The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of March 31, 2024.
F-14 The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2023.
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Summary of allowance for credit losses on loans receivables | The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2024:
The following table presents the allowance for credit losses on loans receivable at and for the three months ended March 31, 2023:
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Deposits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of components of deposits | The components of deposits were as follows:
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of operating leases of lessee | The following table represents the classification of the Company’s right of use and lease liability.
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Summary of lease cost |
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Summary of lessee operating lease liability maturity | Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2024 (in thousands):
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Goodwill and Core Deposit Intangible (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of carrying amount of goodwill and core deposit intangible assets | The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:
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Summary of future fiscal periods amortization for the core deposit intangible | As of March 31, 2024, the remaining current fiscal year and future fiscal periods amortization for the core deposit intangible is (in thousands):
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Fair Value Measurements and Disclosure (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Financial Assets Measured At Fair Value On Recurring Basis | For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024 were as follows:
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy, used at December 31, 2023 were as follows:
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Summary Of Financial Assets Measured At Fair Value On NonRecurring Basis | For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2024, were as follows.
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2023, were as follows:
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Summary Of Quantitative Information Using Level 3 Fair Value Measurements | The following table presents quantitative information using Level 3 fair value measurements at March 31, 2024.
The following table presents quantitative information using Level 3 fair value measurements at December 31, 2023.
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Summary Of Carrying Amounts And Estimated Fair Value Of Financial Instruments | The carrying amounts and estimated fair value of financial instruments at March 31, 2024 are as follows.
The carrying amounts and estimated fair value of financial instruments at December 31, 2023 are as follows:
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Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income applicable to common stock | $ 4,345 | $ 6,097 |
Weighted average number of common shares outstanding | 6,328,000 | 6,257,000 |
Basic earnings per share | $ 0.69 | $ 0.97 |
Dilutive effect on common shares outstanding | 90 | 129 |
Weighted average number of diluted common shares outstanding | 6,418 | 6,386 |
Diluted earnings per share | $ 0.68 | $ 0.95 |
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Earnings Per Share [Line Items] | |||
Number of shares | 90 | 129 | |
Option [Member] | |||
Earnings Per Share [Line Items] | |||
Number of shares | 245,633 | 374,496 | |
Number of shares excluded | 86,431 | 0 | |
Option [Member] | Employee Stock Option One [Member] | |||
Earnings Per Share [Line Items] | |||
Weighted average exercise price | $ 21.38 | $ 22.01 | |
Weighted average exercise price excluded | $ 33.19 | $ 0 |
Loans Receivable - Additional Information (Detail) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
USD ($)
Loan
|
Mar. 31, 2023
USD ($)
Loan
|
Dec. 31, 2023
USD ($)
|
|
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Number of loans | Loan | 6 | 9 | |
Troubled debt restructuring | $ 2,100,000 | $ 6,700,000 | |
Payments to Acquire Loans Receivable | 0 | $ 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Financing receivable, accrued interest, writeoff | 310,000 | 130,000 | |
Loans Receivable [Member] | |||
Schedule Of Activity Relating To Amount Due From Related Party [Line Items] | |||
Accrued Interest Receivable | $ 5,600,000 | $ 4,300,000 |
Loans Receivable - Summary of Loans Receivable Net (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,573,556 | $ 1,550,133 |
Deferred fees and costs | (2,325) | (1,798) |
Loans, net | 1,571,231 | 1,548,335 |
Commercial real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,162,741 | 1,142,864 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 45,930 | 50,961 |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 321,009 | 310,187 |
Residential first-lien mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 36,565 | 38,040 |
Home equity/consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,311 | $ 8,081 |
Loans Receivable - Summary of components of allowance for credit losses (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses - loans | $ (18,618) | $ (18,492) | $ (16,507) | $ (16,461) |
Allowance for credit losses - off balance sheet | (473) | (589) | ||
Allowance for credit losses | $ (19,091) | $ (19,081) |
Loans Receivable - Summary of Allowance for Loan Losses On Loans Receivables (Parenthetical) (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Receivables [Abstract] | ||
Provision for credit losses | $ 186,000 | $ 265,000 |
Increase decrease in reserve for unfunded liabilities | 116,000 | 79,000 |
Financing receivable allowance for credit loss not purchased with credit deterioration | $ 302,000,000 | $ 344,000 |
Deposits - Summary of Components of Deposits (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deposit Liability [Line Items] | ||
Demand, non-interest-bearing checking | $ 247,056 | $ 249,282 |
Demand, interest-bearing checking | 215,364 | 247,939 |
Savings | 149,386 | 146,484 |
Money market | 378,652 | 354,005 |
Time deposits, $250,000 and over | 179,479 | 173,614 |
Time deposits, other | 535,683 | 464,417 |
Total deposits | $ 1,705,620 | $ 1,635,741 |
Demand, non-interest-bearing checking percentage | 14.48% | 15.24% |
Demand, interest-bearing checking percentage | 12.63% | 15.16% |
Savings percentage | 8.76% | 8.96% |
Money market percentage | 22.20% | 21.64% |
Time deposits, $250,000 and over percentage | 10.52% | 10.61% |
Time deposits other percentage | 31.41% | 28.39% |
Total deposits percentage | 100.00% | 100.00% |
Borrowings - Additional Information (Detail) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Short-Term Debt [Line Items] | ||
Borrowings outstanding | $ 0 | $ 0 |
Fair Value Measurements and Disclosure - Summary of Quantitative Information Using Level 3 Fair Value Measurements (Detail) $ in Thousands |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 1,495,787 | $ 1,425,814 |
Collateral dependent loan [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable Measurement Input | 6 | 0 |
Measurement Input Discount Rate Adjustment [Member] | Valuation Technique Collateral [Member] | Weighted Average [Member] | Collateral dependent loan [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 95 | $ 4,485 |
Loans Receivable Measurement Input | (6) | 0 |
Leases - Additional Information (Detail) |
Mar. 31, 2024 |
---|---|
Leases [Abstract] | |
Weighted-average remaining lease terms for operating leases | 11 years 7 months 6 days |
Weighted-average discount rate | 3.48% |
Leases - Summary of Operating Leases of Lessee (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Gross carrying amount | $ 23,398 | $ 16,026 |
Increased asset from new lease | 1,808 | 9,799 |
Accumulated amortization | (2,480) | (2,427) |
Net book value | 22,726 | 23,398 |
Lease liabilities | $ 23,643 | $ 24,280 |
Leases - Summary of Lease Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Lease cost: | ||
Operating lease | $ 987 | $ 665 |
Short-term lease cost | 48 | 2 |
Total lease cost | 1,035 | 667 |
Cash paid for amounts included in the measurement of lease liabilities | $ 898 | $ 585 |
Leases - Summary of Lessee Operating Lease Liability Maturity (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2024 | $ 3,501 | |
2025 | 3,453 | |
2026 | 3,269 | |
2027 | 2,992 | |
2028 | 2,779 | |
Thereafter | 15,748 | |
Total future operating lease payment | 31,742 | |
Amounts representing interest | (8,099) | |
Present value of net future lease payments | $ 23,643 | $ 24,280 |
Goodwill and Core Deposit Intangible - Additional Information (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill And Intangible Assets Disclosure [Line Items] | ||
Goodwill | $ 8,853 | $ 8,853 |
Core deposit intangible assets | $ 1,301 | $ 1,422 |
Percentage of fair value of reporting unit including goodwill | 50.00% | |
Percentage of probability of fair value of reporting unit including goodwill | 50.00% | |
Core Deposits [Member] | ||
Goodwill And Intangible Assets Disclosure [Line Items] | ||
Core deposit intangible assets | $ 4,200 | |
Intangible assets amortized year | 10 years | |
Core Deposits [Member] | Noah Bank Acquisition [Member] | ||
Goodwill And Intangible Assets Disclosure [Line Items] | ||
Core deposit intangible assets | $ 98 |
Goodwill and Core Deposit Intangible - Summary of Carrying Amount of Goodwill and Core Deposit Intangible Assets (Detail) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning balance | $ 8,853 |
Core Deposit Intangible, Beginning balance | 1,422 |
Amortization expense | (121) |
Goodwill, Ending balance | 8,853 |
Core Deposit Intangible, Ending balance | $ 1,301 |
Goodwill and Core Deposit Intangible - Summary of Future Fiscal Periods Amortization for the Core Deposit Intangible (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2024 | $ 314 | |
2025 | 353 | |
2026 | 274 | |
2027 | 195 | |
Thereafter | 165 | |
Total | $ 1,301 | $ 1,422 |
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - $ / shares |
Apr. 24, 2024 |
Apr. 23, 2024 |
---|---|---|
Subsequent Event [Line Items] | ||
Dividends payable, date to be paid | May 31, 2024 | |
Dividends payable, date of record | May 10, 2024 | |
Preferred stock, shares authorized | 2,000,000 | |
Dividend Declared [Member] | ||
Subsequent Event [Line Items] | ||
Dividends payable, amount per share | $ 0.3 |
1 Year Princeton Bancorp Chart |
1 Month Princeton Bancorp Chart |
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