# EDGAR Filing Document

**Accession Number:** 0001913971
**File Stem:** 0001193125-23-016226
**Filing Date:** 2023-1
**Character Count:** 52301
**Document Hash:** bd3c4477107b3a383754c755a0439dcf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-016226.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001193125-23-016226

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Princeton Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0001913971
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41589
- **FILM NUMBER:** 23557681

**BUSINESS ADDRESS:**
- **STREET 1:** C/O STEVENS & LEE, P.C.
- **STREET 2:** 111 NORTH SIXTH STREET
- **CITY:** READING
- **STATE:** PA
- **ZIP:** 19603
- **BUSINESS PHONE:** (609) 921-1700

**MAIL ADDRESS:**
- **STREET 1:** 183 BAYARD LANE
- **CITY:** PRINCETON
- **STATE:** NJ
- **ZIP:** 08540

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM 8-K** 

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**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d)** 

**of the Securities Exchange Act of 1934** 

**January 26, 2023** 

**Date of Report (Date of earliest event reported)** 

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## PRINCETON BANCORP, INC.
**(Exact name of registrant as specified in its charter)** 

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---

| | | |
|:---|:---|:---|
| **Pennsylvania** | **001-41589** | **88-4268702** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Ident. No.)** |
| **183 Bayard Lane, Princeton, New Jersey** | **183 Bayard Lane, Princeton, New Jersey** | **08540** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**(609) 921-1700** 

**Registrant's telephone number, including area code** 

**N/A** 

**(Former name or former address, if changed since last report.)** 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)** | **Name of each exchange**<br> **on which registered** |
| Common stock, no par value | BPRN | The Nasdaq Global Market |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition**  |

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On January 26, 2023, the registrant's wholly owned subsidiary, The Bank of Princeton, issued a press release containing financial information regarding its financial condition and results of operations at and for the three and twelve months ended December 31, 2022.

A copy of the press release is furnished as <u>Exhibit 99.1</u> hereto.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.**  |

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(d) Exhibits:

[99.1 Press Release issued January 26, 2023.](d441956dex991.htm)

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<u>SIGNATURES</u> 

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 hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | PRINCETON BANCORP, INC. | PRINCETON BANCORP, INC. |
| Dated: January 26, 2023 |  |  |
|  | By: | /s/ George S. Rapp |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;George S. Rapp |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President and<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1** 

**For Immediate Release** 

**Contact George Rapp** 

**609.454.0718** 

<u>grapp@thebankofprinceton.com</u>

**The Bank of Princeton Announces** 

**Fourth Quarter and Year-End 2022 Results** 

Princeton, NJ, January 26, 2023 / PRNewswire / - The Bank of Princeton (the "Bank"), the wholly owned subsidiary of Princeton Bancorp, Inc. (NASDAQ – BPRN), today reported its unaudited financial condition and results of operations at and for the quarter and year ended December 31, 2022. The Bank reported net income of $7.2 million, or $1.13 per diluted common share, for the fourth quarter of 2022, compared to net income of $7.0 million, or $1.09 per diluted common share, for the third quarter of 2022, and net income of $6.2 million, or $0.92 per diluted common share, for the fourth quarter of 2021. The increase in net income for the fourth quarter of 2022, when compared to the three months ended September 30, 2022, was primarily due to an increase of $550 thousand in net interest income and a $454 thousand decrease in non-interest expenses, partially offset by a $710 thousand decrease in non-interest income and a $98 thousand increase in income tax expense. The increase in net income, when comparing it to the three months ended December 31, 2021, was primarily due to an increase in net interest income of $2.2 million and a $100 thousand decrease in the provision for loan losses, partially offset by a $708 thousand increase in non-interest expenses, a $470 thousand decrease in non-interest income and a $180 thousand increase in income tax expense. For the year ended December 31, 2022, the Bank recorded net income of $26.5 million, or $4.11 per diluted common share, compared to $22.5 million, or $3.30 per diluted common share for the year ended December 31, 2021, primarily due to a $5.5 million increase in net interest income, a $3.2 million decrease in the Bank's provision for loan losses, and a $196 thousand increase in non-interest income, partially offset by a $4.0 million increase in non-interest expenses and an increase in income taxes of $856 thousand.

***<u>Highlights for the three and twelve month periods ended December</u> <u>31, 2022 are as follows:</u>***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the year ended December 31, 2022, the Bank completed the purchase of 324,017 shares of common stock
from the 5% stock buyback program that commenced in 2022 at a weighted average price of $29.07.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income for the fourth quarter of 2022 increased $988 thousand or 16.0% over the same period in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank improved its net interest margin by 86 basis points for the fourth quarter of 2022 compared to the same
period in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ratio of nonperforming loans to total loans continues to be low at 0.02% as of December 31, 2022,
compared to 0.09% at December 31, 2021.

President/CEO Edward Dietzler noted that, "The Bank's earnings performance far exceeds the prior year, up 17.8% year-over-year, driven by a strong net interest margin of 4.82% for the quarter and excellent credit quality."

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***Balance Sheet Review***

Total assets were $1.60 billion at December 31, 2022, a decrease of $85.9 million, or 5.1% when compared to $1.69 billion at the end of 2021. The primary reason for the decrease in total assets was a decrease in cash and cash equivalents of approximately $105.4 million and a $17.8 million decrease in available-for-sale securities, partially offset by an increase of $35.2 million in net loans. The increase in net loans primarily consisted of a $102.5 million increase in commercial real estate loans, partially offset by a decrease of $77.3 million in Payroll Protection Program ("PPP") loans which are no longer being offered by the SBA.

Total deposits at December 31, 2022 decreased $98.4 million, or 6.8%, when compared to December 31, 2021. When comparing deposit products between the two periods, money market deposits decreased $89.4 million, savings decreased $34.9 million and non-interest-bearing demand deposits decreased $21.2 million. Partially offsetting these decreases were increases in certificates of deposit of $36.4 million and interest-bearing demand deposits of $10.7 million. In addition, the Bank had $10 million in outstanding borrowings at December 31, 2022 and none at December 31, 2021.

Total stockholders' equity at December 31, 2022 increased $3.0 million or 1.4% when compared to the end of 2021. The increase was primarily due to the $20.0 million increase in retained earnings consisting of $26.5 million in income less $6.5 million of cash dividends recorded during the period. Partially offsetting this increase was $9.4 million of common stock repurchased pursuant to the 2022 buyback program, and a $9.1 million change in the accumulated other comprehensive income (loss) on the available-for-sale investment portfolio associated with an increase in unrealized losses due to the increase in interest rates. The ratio of equity to total assets at December 31, 2022 and at December 31, 2021, was 13.7% and 12.8%, respectively.

***Asset Quality***

At December 31, 2022, non-performing assets were $266 thousand, a decrease of $1.1 million, or 81.0%, when compared to the amount at December 31, 2021. This decrease was primarily due to the sale of an other real estate owned property in the amount of $226 thousand and a $757 thousand write-down of a non-performing loan. Troubled debt restructurings ("TDRs") totaled $5.9 million at December 31, 2022 and $6.9 million at December 31, 2021. All three TDR loans totaling $5.9 million are performing in accordance with the agreed-upon terms as of December 31, 2022.

***Review of Quarterly and Year-to-Date Financial Results***

Net interest income was $18.2 million for the fourth quarter of 2022, compared to $17.7 million for the third quarter of 2022 and $16.0 million for the fourth quarter of 2021. The increase from the previous quarter was the result of an increase in interest income of $1.4 million, or 7.2%, partially offset by an increase in interest expense of $817 thousand. The net interest margin for the fourth quarter 2022 was 4.82%, increasing 18 basis points when compared to the third quarter of 2022. This increase was primarily associated with an increase of 39 basis points in the yield on earning assets. When comparing the three-month periods ended December 31, 2022 and 2021, net interest income increased $2.2 million, which was primarily due to an increase of 109 basis points in the yield earned on interest-earning assets. For the year ended December 31, 2022, net interest income was $68.1 million

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compared to $62.6 million for the year ended December 31, 2021. The increase from the previous year was the result of an increase in interest income of $4.8 million, or 6.9% and a decrease in interest expense of $674 thousand, or 10.1%. The rate on total deposits, for the three-month periods ended December 31, 2022 and 2021 was 0.64% and 0.38%, respectively. For the years ended December 31, 2022 and 2021, the rate on total deposits was 0.43% and 0.47%, respectively.

The Bank recorded provisions for loan losses of $200 thousand and $400 thousand during the three-months and year ended December 30, 2022, respectively. The comparable amounts were $300 thousand and $3.6 million for the three months and year ended December 31, 2021, respectively. Net charge-offs for the three-month and twelve-month periods ended December 31, 2022 were $406 thousand and $560 thousand, respectively. Net charge-offs for the comparable periods in 2021 were $101 thousand and $1.8 million, respectively. The Bank did not make any material changes to the qualitative factors used in determining the level of general reserve needed for management's assessment of the credit quality in the loan portfolio. The coverage ratio of allowance for loan losses to period end loans was 1.20% (excluding and including PPP loans) at December 31, 2022, compared to 1.24% (excluding PPP loans it was 1.32%) at December 31, 2021.

Total non-interest income of $1.0 million for the fourth quarter of 2022 decreased $710 thousand and $470 thousand, or by 41.6% and 32.0%, when compared to the quarter ended September 30, 2022 and the quarter ended December 31, 2021, respectively. The decrease over the prior quarter was primarily due to a $614 thousand decrease in loan fees and a $58 thousand decrease in other fees and service charges. The decrease over the 2021 period was primarily due to a $521 thousand decrease in loan fees, partially offset by a $117 thousand increase in other non-interest income. For the year ended December 31, 2022, non-interest income increased $196 thousand, or 4.2%, from the year ended December 31, 2021, primarily due to a $365 thousand increase in other non-interest income, partially offset by a $273 thousand decrease in loan fees.

Total non-interest expense for the fourth quarter of 2022 increased $708 thousand, or 7.9%, when compared to the same period in 2021. This increase was primarily due to a $537 thousand increase in salaries and benefits expenses and a $456 thousand increase in data processing and communications expenses partially offset by decreases in other real estate owned expense of $157 thousand, other non-interest expenses of $115 thousand and occupancy and equipment expenses of $108 thousand. When comparing the quarter ended December 31, 2022 to the immediately preceding quarter, non-interest expense decreased $454 thousand, or 4.5%, primarily due to decreases in salaries and employee benefits costs, professional fees and occupancy and equipment expenses, partially offset by an increase in data processing and communications expenses. For the year ended December 31, 2022, non-interest expense was $38.5 million, compared to $34.5 million for the same period in 2021. This increase was primarily due to increases in salaries and benefits expenses as a result of additional benefit programs and increases in data processing and communications costs related to technology costs incurred to enhance services.

For the three-month period ended December 31, 2022, the Bank recorded an income tax expense of $2.2 million, resulting in an effective tax rate of 23.5%, compared to an income tax expense of $2.1 million resulting in an effective tax rate of 23.2% for the three-month period ended September 30, 2022, and compared to an income tax expense of $2.0 million resulting in an effective tax rate of 24.6% for the three-month period ended December 31, 2021. For the years ended December 31, 2022 and 2021, the income tax expenses were $7.6 million (effective tax rate of 22.2%) and $6.7 million (effective tax rate of 23.0%), respectively.

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***About Princeton Bancorp, Inc. and The Bank of Princeton***

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

***Forward-Looking Statements***

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

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

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

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**The Bank of Princeton** 

**Consolidated Statements of Financial Condition** 

**(Unaudited)** 

**(Dollars in thousands, except per share data)** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,<br>2022** | **December 31,<br>2021** | **2022 vs 2021**<br>**$ Change** | **2022 vs 2021% Change** |
|  **ASSETS** |  |  |  |  |
|  Cash and cash equivalents | $53351 | $158716 | $(105365) | -66.4% |
|  Securities available-for-sale taxable | 42061 | 51690 | (9629) | -18.6% |
|  Securities available-for-sale tax-exempt | 41341 | 49468 | (8127) | -16.4% |
|  Securities held-to-maturity | 201 | 208 | (7) | -3.4% |
|  Loans receivable, net of deferred | 1370368 | 1335163 | 35205 | 2.6% |
|  Allowance for loan losses | (16461) | (16620) | 159 | -1.0% |
|  Goodwill | 8853 | 8853 |  | 0.0% |
|  Core deposit intangible | 1825 | 2393 | (568) | -23.7% |
|  Other assets | 100240 | 97811 | 2429 | 2.5% |
|  **TOTAL ASSETS** | $1601779 | $1687682 | $(85903) | -5.1% |
|  **LIABILITIES** |  |  |  |  |
|  Non-interest checking | $265078 | $286247 | $(21169) | -7.4% |
|  Interest checking | 269737 | 259022 | 10715 | 4.1% |
|  Savings | 190685 | 225579 | (34894) | -15.5% |
|  Money market | 283652 | 373075 | (89423) | -24.0% |
|  Time deposits over $250 | 76150 | 33741 | 42409 | 125.7% |
|  Other time deposits | 262428 | 268479 | (6051) | -2.3% |
|  Total deposits | 1347730 | 1446143 | (98413) | -6.8% |
|  Borrowings | 10000 |  | 10000 | N/A |
|  Other liabilities | 24448 | 24961 | (513) | -2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES | 1382178 | 1471104 | (88926) | -6.0% |
|  **STOCKHOLDERS' EQUITY** |  |  |  |  |
|  Common stock | 34547 | 34100 | 447 | 1.3% |
|  Paid-in capital | 81291 | 80220 | 1071 | 1.3% |
|  Treasury stock | (19452) | (10032) | (9420) | 93.9% |
|  Retained earnings | 131488 | 111451 | 20037 | 18.0% |
|  Accumulated other comprehensive income (loss) | (8273) | 839 | (9112) | -1086.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL STOCKHOLDERS' EQUITY | 219601 | 216578 | 3023 | 1.4% |
|  **TOTAL LIABILITIES** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **AND STOCKHOLDERS' EQUITY** | $1601779 | $1687682 | $(85903) | -5.1% |
|  **Book value per common share** | $35.16 | $33.42 | $1.74 | 5.2% |
|  **Tangible book value per common share <sup>1</sup>**  | $33.45 | $31.69 | $1.76 | 5.6% |

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<sup>1</sup> Tangible book value per common share is a non-GAAP measure that represents book value per common share which excludes goodwill and core deposit intangible.

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**The Bank of Princeton** 

**Loan and Deposit Tables** 

**(Unaudited)** 

The components of loans receivable, net at December 31, 2022 and 2021 were as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **December 31,<br>2021** |
|  | (In thousands) | (In thousands) |
|  Commercial real estate | $873573 | $771028 |
|  Commercial and industrial | 28859 | 29677 |
|  Construction | 417538 | 403680 |
|  Residential first-lien mortgages | 43125 | 48638 |
|  Home equity / consumer | 7260 | 7685 |
|  PPP I (SBA loans) | 1307 | 6641 |
|  PPP II (SBA loans) | 1162 | 73099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans | 1372824 | 1340448 |
|  Deferred fees and costs | (2456) | (5285) |
|  Allowance for loan losses | (16461) | (16620) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | $1353907 | $1318543 |

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

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **December 31,<br>2021** |
|  | (In thousands) | (In thousands) |
|  Demand, non-interest-bearing | $265078 | $286247 |
|  Demand, interest-bearing | 269737 | 259022 |
|  Savings | 190685 | 225579 |
|  Money markets | 283652 | 373075 |
|  Time deposits | 338578 | 302220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits | $1347730 | $1446143 |

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**The Bank of Princeton** 

**Consolidated Statements of Income** 

**(Unaudited)** 

**(Amounts in thousands except per share data)** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | | |
|  | **2022** | **2021** |<br>**$ Change** |<br>**% Change** |
|  **Interest and dividend income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and fees | $19400 | $16861 | $2539 | 15.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available-for-sale debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable | 288 | 194 | 94 | 48.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt | 285 | 295 | (10) | -3.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Held-to-maturity debt securities | 3 | 3 | 0 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest and dividend income | 482 | 58 | 424 | 731.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest and dividends** | 20458 | 17411 | 3047 | 17.5% |
|  **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2210 | 1411 | 799 | 56.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowing | 2 |  | 2 | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest expense** | 2212 | 1411 | 801 | 56.8% |
|  **Net interest income** | 18246 | 16000 | 2246 | 14.0% |
|  **Provision for loan losses** | 200 | 300 | (100) | -33.3% |
|  **Net interest income after provision for loan losses** | 18046 | 15700 | 2346 | 14.9% |
|  **Non-interest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from bank-owned life insurance | 286 | 290 | (4) | -1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees and service charges | 411 | 473 | (62) | -13.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan fees, including prepayment penalties | 236 | 757 | (521) | -68.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 64 | (53) | 117 | -220.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest income** | 997 | 1467 | (470) | -32.0% |
|  **Non-interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 5204 | 4667 | 537 | 11.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment | 1413 | 1521 | (108) | -7.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 541 | 511 | 30 | 5.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing and communications | 1354 | 898 | 456 | 50.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal deposit insurance | 222 | 206 | 16 | 7.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising and promotion | 105 | 42 | 63 | 150.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office expense | 71 | 66 | 5 | 7.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other real estate owned | (6) | 151 | (157) | -104.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Core deposit intangible | 135 | 154 | (19) | -12.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 632 | 747 | (115) | -15.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest expense** | 9671 | 8963 | 708 | 7.9% |
|  **Income before income tax expense** | 9372 | 8204 | 1168 | 14.2% |
|  **Income tax expense** | 2201 | 2021 | 180 | 8.9% |
|  **Net income** | $7171 | $6183 | 988 | 16.0% |
|  **Net income per common share - basic** | $1.14 | $0.94 | $0.20 | 21.1% |
|  **Net income per common share - diluted** | $1.13 | $0.92 | $0.21 | 22.3% |
|  **Weighted average shares outstanding - basic** | 6246 | 6538 | (292) | -4.5% |
|  **Weighted average shares outstanding - diluted** | 6371 | 6694 | (323) | -4.8% |

---

------

**The Bank of Princeton** 

**Consolidated Statements of Income (Current Quarter vs Prior Quarter)** 

**(Unaudited)** 

**(Amounts in thousands, except per share data)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | | |
|  | **December 31,** | **September 30,** | | |
|  | **2022** | **2022** |<br>**$ Change** |<br>**% Change** |
|  **Interest and dividend income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and fees | $19400 | $18336 | $1064 | 5.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available-for-sale debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable | 288 | 241 | 47 | 19.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt | 285 | 286 | (1) | -0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Held-to-maturity debt securities | 3 | 2 | 1 | 50.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest and dividend income | 482 | 226 | 256 | 113.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest and dividends** | 20458 | 19091 | 1367 | 7.2% |
|  **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2210 | 1392 | 818 | 58.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowing | 2 | 3 | (1) | -33.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest expense** | 2212 | 1395 | 817 | 58.6% |
|  **Net interest income** | 18246 | 17696 | 550 | 3.1% |
|  **Provision for loan losses** | 200 | 200 | 0 | 0.0% |
|  **Net interest income after provision for loan losses** | 18046 | 17496 | 550 | 3.1% |
|  **Non-interest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from bank-owned life insurance | 286 | 287 | (1) | -0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees and service charges | 411 | 469 | (58) | -12.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan fees, including prepayment penalties | 236 | 850 | (614) | -72.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 64 | 101 | (37) | -36.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest income** | 997 | 1707 | (710) | -41.6% |
|  **Non-interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 5204 | 5442 | (238) | -4.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment | 1413 | 1539 | (126) | -8.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 541 | 786 | (245) | -31.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing and communications | 1354 | 1043 | 311 | 29.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal deposit insurance | 222 | 249 | (27) | -10.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising and promotion | 105 | 140 | (35) | -25.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office expense | 71 | 52 | 19 | 36.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other real estate owned | (6) |  | (6) | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Core deposit intangible | 135 | 135 | 0 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 632 | 739 | (107) | -14.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest expense** | 9671 | 10125 | (454) | -4.5% |
|  **Income before income tax expense** | 9372 | 9078 | 294 | 3.2% |
|  **Income tax expense** | 2201 | 2103 | 98 | 4.7% |
|  **Net income** | $7171 | $6975 | $196 | 2.8% |
|  **Net income per common share - basic** | $1.14 | $1.12 | $0.02 | 1.6% |
|  **Net income per common share - diluted** | $1.13 | $1.09 | $0.04 | 3.3% |
|  **Weighted average shares outstanding - basic** | 6246 | 6269 | (23) | -0.4% |
|  **Weighted average shares outstanding - diluted** | 6371 | 6378 | (7) | -0.1% |

---

------

**The Bank of Princeton** 

**Consolidated Statements of Income** 

**(Unaudited)** 

**(Amounts in thousands, except per share data)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | | |
|  | **December 31,** | **December 31,** | | |
|  | **2022** | **2021** |<br>**$ Change** |<br>**% Change** |
|  **Interest and dividend income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and fees | $70996 | $67348 | $3648 | 5.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available-for-sale debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable | 986 | 547 | 439 | 80.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt | 1167 | 1172 | (5) | -0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Held-to-maturity debt securities | 11 | 11 |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest and dividend income | 923 | 197 | 726 | 368.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest and dividends** | 74083 | 69275 | 4808 | 6.9% |
|  **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 5995 | 6673 | (678) | -10.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 5 | 1 | 4 | 400.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest expense** | 6000 | 6674 | (674) | -10.1% |
|  **Net interest income** | 68083 | 62601 | 5482 | 8.8% |
|  **Provision for loan losses** | 400 | 3625 | (3225) | -89.0% |
|  **Net interest income after provision for loan losses** | 67683 | 58976 | 8707 | 14.8% |
|  **Non-Interest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of securities available-for-sale, net | 2 | 7 | (5) | -71.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from bank-owned life insurance | 1138 | 1117 | 21 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees and service charges | 1852 | 1764 | 88 | 5.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan fees, including prepayment penalties | 1484 | 1757 | (273) | -15.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 386 | 21 | 365 | 1738.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest income** | 4862 | 4666 | 196 | 4.2% |
|  **Non-interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 20455 | 17483 | 2972 | 17.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment | 5859 | 6055 | (196) | -3.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 2470 | 2431 | 39 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing and communications | 4488 | 3562 | 926 | 26.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal deposit insurance | 1010 | 792 | 218 | 27.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising and promotion | 484 | 214 | 270 | 126.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office expense | 239 | 219 | 20 | 9.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other real estate owned | 106 | 241 | (135) | -56.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Core deposit intangible | 569 | 643 | (74) | -11.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 2812 | 2813 | (1) | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest expense** | 38492 | 34453 | 4039 | 11.7% |
|  **Income before income tax expense** | 34053 | 29189 | 4864 | 16.7% |
|  **Income tax expense** | 7559 | 6703 | 856 | 12.8% |
|  **Net income** | $26494 | $22486 | $4008 | 17.8% |
|  **Net income per common share - basic** | $4.19 | $3.37 | $0.82 | 24.4% |
|  **Net income per common share - diluted** | $4.11 | $3.30 | $0.81 | 24.5% |
|  **Weighted average shares outstanding - basic** | 6320 | 6667 | (347) | -5.2% |
|  **Weighted average shares outstanding - diluted** | 6449 | 6814 | (365) | -5.4% |

---

------

**The Bank of Princeton** 

**Consolidated Average Statement of Financial Condition** 

**(Unaudited)** 

**(Dollars in thousands)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | | |
|  | **2022** | **2022** | **2021** | **2021** | | |
|  | **Average<br>Balance** | **Yield/<br>Rate** | **Average<br>Balance** | **Yield/<br>Rate** |<br>**$ Change** |<br>**% Change** |
|  **Earning assets** |  |  |  |  |  |  |
|  **Loans** | $1375191 | 5.60% | $1347511 | 4.96% | $27680 | 0.64% |
|  **Securities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable available-for-sale | 42458 | 2.69% | 50124 | 1.56% | (7666) | 1.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt available-for-sale | 39743 | 2.85% | 47562 | 2.47% | (7819) | 0.38% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Held-to-maturity | 202 | 5.24% | 209 | 5.27% | (7) | -0.03% |
|  **Securities** | 82403 | 2.77% | 97895 | 2.01% | (15492) | 0.76% |
|  **Other interest earning assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing bank accounts | 44410 | 4.09% | 157550 | 0.11% | (113140) | 3.98% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | 1303 | 7.40% | 1338 | 3.99% | (35) | 3.41% |
|  **Other interest-earning assets** | 45713 | 4.19% | 158888 | 0.15% | (113175) | 4.04% |
|  **Total interest-earning assets** | 1503307 | 5.40% | 1604294 | 4.31% | (100987) | 1.09% |
|  **Total non-earning assets** | 109554 |  | 102987 |  |  |  |
|  **Total assets** | $1612861 |  | $1707281 |  |  |  |
|  **Interest-bearing liabilities** |  |  |  |  |  |  |
|  Checking | $275797 | 0.45% | $274944 | 0.26% | $853 | 0.19% |
|  Savings | 201498 | 0.53% | 223590 | 0.23% | (22092) | 0.30% |
|  Money market | 294246 | 0.91% | 367493 | 0.27% | (73247) | 0.64% |
|  Certificates of deposit | 316689 | 1.19% | 312634 | 1.09% | 4055 | 0.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing deposits** | 1088230 | 0.81% | 1178661 | 0.48% | (90431) | 0.33% |
|  Non-interest bearing deposits | 280626 |  | 288292 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total deposits** | 1368856 | 0.64% | 1466953 | 0.38% | (98097) | 0.26% |
|  Borrowings | 217 | 4.67% |  | 0.00% | 217 | 4.67% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing liabilities (excluding non interest deposits)** | 1088447 | 0.81% | 1178661 | 0.48% | (90214) | 0.33% |
|  Non-interest-bearing deposits | 280626 |  | 288292 |  |  |  |
|  **Total cost of funds** | 1369073 | 0.64% | 1466953 | 0.38% | (97880) | 0.26% |
|  Accrued expenses and other liabilities | 28215 |  | 24056 |  |  |  |
|  Stockholders' equity | 215573 |  | 216272 |  |  |  |
|  **Total liabilities and stockholders' equity** | $1612861 |  | $1707281 |  |  |  |
|  **Net interest spread** |  | 4.59% |  | 3.83% |  |  |
|  **Net interest margin** |  | 4.82% |  | 3.96% |  |  |
|  **Net interest margin (FTE)<sup>1</sup>**  |  | 4.89% |  | 4.02% |  |  |

---

<sup>1</sup> Includes federal and state tax effect of tax-exempt securities and loans.

------

**The Bank of Princeton** 

**Consolidated Average Statement of Financial Condition** 

**(Unaudited)** 

**(Dollars in thousands)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | | |
|  | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | | |
|  | **Average<br>Balance** | **Yield/<br>Rate** | **Average<br>Balance** | **Yield/<br>Rate** |<br>**$ Change** |<br>**% Change** |
|  **Earning assets** |  |  |  |  |  |  |
|  **Loans** | $1375191 | 5.60% | $1386589 | 5.25% | $(11398) | 0.35% |
|  **Securities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable available-for-sale | 42458 | 2.69% | 46281 | 2.06% | (3823) | 0.63% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt available-for-sale | 39743 | 2.85% | 42220 | 2.68% | (2477) | 0.17% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Held-to-maturity | 202 | 5.24% | 204 | 5.24% | (2) | 0.00% |
|  **Securities** | 82403 | 2.77% | 88705 | 2.37% | (6302) | 0.40% |
|  **Other interest earning assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing bank accounts | 44410 | 4.09% | 35081 | 2.28% | 9329 | 1.81% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | 1303 | 7.40% | 1322 | 5.85% | (19) | 1.55% |
|  **Other interest-earning assets** | 45713 | 4.19% | 36403 | 2.41% | 9310 | 1.78% |
|  **Total interest-earning assets** | 1503307 | 5.40% | 1511697 | 5.01% | (8390) | 0.39% |
|  **Total non-earning assets** | 109554 |  | 115159 |  |  |  |
|  **Total assets** | $1612861 |  | $1626856 |  |  |  |
|  **Interest-bearing liabilities** |  |  |  |  |  |  |
|  Checking | $275797 | 0.45% | $240948 | 0.29% | $34849 | 0.16% |
|  Savings | 201498 | 0.53% | 217133 | 0.32% | (15635) | 0.21% |
|  Money market | 294246 | 0.91% | 350901 | 0.43% | (56655) | 0.48% |
|  Certificates of deposit | 316689 | 1.19% | 289274 | 0.86% | 27415 | 0.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing deposits** | 1088230 | 0.81% | 1098256 | 0.51% | (10026) | 0.30% |
|  Non-interest bearing deposits | 280626 |  | 285665 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total deposits** | 1368856 | 0.64% | 1383921 | 0.40% | (15065) | 0.24% |
|  Borrowings | 217 | 4.67% | 391 | 2.65% | (174) | 2.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing liabilities (excluding non interest deposits)** | 1088447 | 0.81% | 1098647 | 0.51% | (10200) | 0.30% |
|  Non-interest-bearing deposits | 280626 |  | 285665 |  |  |  |
|  **Total cost of funds** | 1369073 | 0.64% | 1384312 | 0.40% | (15239) | 0.24% |
|  Accrued expenses and other liabilities | 28215 |  | 28136 |  |  |  |
|  Stockholders' equity | 215573 |  | 214408 |  |  |  |
|  **Total liabilities and stockholders' equity** | $1612861 |  | $1626856 |  |  |  |
|  **Net interest spread** |  | 4.59% |  | 4.50% |  |  |
|  **Net interest margin** |  | 4.82% |  | 4.64% |  |  |
|  **Net interest margin (FTE)<sup>1</sup>**  |  | 4.89% |  | 4.71% |  |  |

---

<sup>1</sup> Includes federal and state tax effect of tax-exempt securities and loans.

------

**The Bank of Princeton** 

**Consolidated Average Statement of Financial Condition** 

**(Unaudited)** 

**(Dollars in thousands)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | | | |
|  | **2022** | **2022** | **2021** | **2021** | | |
|  | **Average<br>Balance** | **Yield/<br>Rate** | **Average<br>Balance** | **Yield/<br>Rate** |<br>**$ Change** |<br>**% Change** |
|  **Earning assets** |  |  |  |  |  |  |
|  **Loans** | $1375501 | 5.16% | $1381626 | 4.87% | $(6125) | 0.29% |
|  **Securities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable available-for-sale | 47626 | 2.07% | 33805 | 1.62% | 13821 | 0.45% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt available-for-sale | 44832 | 2.60% | 47294 | 2.48% | (2462) | 0.12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Held-to-maturity | 205 | 5.25% | 212 | 5.27% | (7) | -0.02% |
|  **Securities** | 92664 | 2.34% | 81311 | 2.13% | 11353 | 0.21% |
|  **Other interest earning assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing bank accounts | 75583 | 1.12% | 93031 | 0.15% | (17448) | 0.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | 1321 | 5.57% | 1366 | 4.21% | (45) | 1.36% |
|  **Other interest-earning assets** | 76904 | 0.44% | 94397 | 0.21% | (17493) | 0.23% |
|  **Total interest-earning assets** | 1545069 | 4.79% | 1557334 | 4.45% | (12265) | 0.34% |
|  **Total non-earning assets** | 101940 |  | 101479 |  |  |  |
|  **Total assets** | $1647008 |  | $1658813 |  |  |  |
|  **Interest-bearing liabilities** |  |  |  |  |  |  |
|  Checking | $261951 | 0.31% | $263715 | 0.27% | $(1764) | 0.04% |
|  Savings | 220222 | 0.32% | 205788 | 0.25% | 14434 | 0.07% |
|  Money market | 353224 | 0.44% | 339903 | 0.30% | 13321 | 0.14% |
|  Certificates of deposit | 293627 | 0.99% | 336488 | 1.32% | (42861) | -0.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing deposits** | 1129024 | 0.42% | 1145894 | 0.58% | (16870) | -0.16% |
|  Non-interest bearing deposits | 280729 |  | 273260 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total deposits** | 1409753 | 0.43% | 1419154 | 0.47% | (9401) | -0.04% |
|  Borrowings | 153 | 3.37% | 270 | 0.32% | (117) | 3.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing liabilities (excluding non interest deposits)** | 1129177 | 0.53% | 1146164 | 0.58% | (16987) | -0.05% |
|  Non-interest-bearing deposits | 280729 |  | 273260 |  |  |  |
|  **Total cost of funds** | 1409906 | 0.43% | 1419424 | 0.47% | (9518) | -0.04% |
|  Accrued expenses and other liabilities | 22307 |  | 25470 |  |  |  |
|  Stockholders' equity | 214795 |  | 213919 |  |  |  |
|  **Total liabilities and stockholders' equity** | $1647008 |  | $1658813 |  |  |  |
|  **Net interest spread** |  | 4.26% |  | 3.87% |  |  |
|  **Net interest margin** |  | 4.41% |  | 4.02% |  |  |
|  **Net interest margin (FTE)<sup>1</sup>**  |  | 4.47% |  | 4.12% |  |  |

---

<sup>1</sup> Includes federal and state tax effect of tax-exempt securities and loans.

------

**The Bank of Princeton** 

**Quarterly Financial Highlights** 

**(Unaudited)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022<br>December** | **2022<br>September** | **2022**<br>**June** | **2022<br>March** | **2021<br>December** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on average assets | 1.76% | 1.70% | 1.52% | 1.45% | 1.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on average equity | 13.20% | 12.91% | 11.90% | 11.25% | 11.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on average tangible equity<sup>1</sup>  | 13.89% | 13.59% | 12.54% | 11.86% | 11.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest margin | 4.82% | 4.64% | 4.19% | 4.09% | 3.96% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest margin (FTE)<sup>2</sup>  | 4.89% | 4.71% | 4.24% | 4.14% | 4.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Efficiency ratio - non-GAAP<sup>3</sup>  | 49.56% | 51.49% | 53.36% | 53.93% | 50.43% |
|  **COMMON STOCK DATA** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market value at period end | $31.72 | $28.35 | $27.46 | $28.85 | $29.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market range: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; High | $32.80 | $29.95 | $30.55 | $32.05 | $30.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Low | $28.57 | $27.16 | $26.57 | $28.67 | $28.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Book value per common share at period end | $35.16 | $34.00 | $33.74 | $33.49 | $33.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible book value per common share at period end<sup>4</sup>  | $33.45 | $32.27 | $32.00 | $31.75 | $31.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of common stock outstanding (in thousands) | 6245 | 6251 | 6263 | 6366 | 6480 |
|  **CAPITAL RATIOS** |  |  |  |  |  |
|  Total capital (to risk-weighted assets) | 15.12% | 14.71% | 14.13% | 14.16% | 15.10% |
|  Tier 1 capital (to risk-weighted assets) | 14.06% | 13.63% | 13.08% | 13.10% | 13.97% |
|  Tier 1 capital (to average assets) | 13.47% | 13.10% | 12.46% | 12.36% | 12.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Period-end equity to assets | 13.71% | 13.26% | 13.00% | 12.71% | 12.84% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Period-end tangible equity to tangible assets <sup>1,5</sup>  | 13.13% | 12.67% | 12.42% | 12.13% | 12.26% |
|  **CREDIT QUALITY DATA (Dollars in thousands)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net charge-offs (recoveries) | $406 | $200 | $(12) | $(34) | $101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annualized net charge-offs (recoveries) to average loans | 0.118% | 0.058% | -0.003% | -0.010% | 0.030% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonperforming loans (excluding TDRs) | $266 | $370 | $402 | $406 | $409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other real estate owned |  |  |  | 226 | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Troubled debt restructurings (TDRs) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Performing | 5882 | 5943 | 6001 | 6066 | 6122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Non-performing |  | 359 | 563 | 766 | 766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total nonperforming assets and accruing TDRs | $6148 | $6672 | $6966 | $7464 | $7523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for loan losses as a percent of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Period-end loans | 1.20% | 1.21% | 1.19% | 1.19% | 1.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual loans | 6188.35% | 2286.15% | 1727.05% | 1420.99% | 1398.99% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonperforming assets | 6188.35% | 2286.15% | 1727.05% | 1191.27% | 1175.39% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As a percent of total loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual loans | 0.02% | 0.05% | 0.07% | 0.08% | 0.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accruing TDRs | 0.43% | 0.43% | 0.43% | 0.43% | 0.46% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual loans and accruing TDRs | 0.45% | 0.48% | 0.50% | 0.52% | 0.55% |

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<sup>1</sup> Tangible equity is a non-GAAP measure that represents equity excluding goodwill and core deposit intangible.

<sup>2</sup> Includes the effect of tax exempt securities and loans.

<sup>3</sup> The efficiency ratio is a non-GAAP measure that represents the ratio of non-interest expense (excluding amortization of core deposit intangible) divided by net interest income and non-interest income.

<sup>4</sup> Tangible book value per common share is a non-GAAP measure that represents book value per common share which excludes goodwill and core deposit intangible.

<sup>5</sup> Tangible assets is a non-GAAP measure that represents assets excluding goodwill and core deposit intangible.