2008 Annual Report
The Bank of Princeton
Bank Wisely.
A return to community banking.
At The Bank of Princeton,
We listen to you, we appreciate
your business, and we’re committed to
being a true resource for our community.
We understand and we show it by
providing you with the highest level of
friendly, helpful, and personalized
banking services.
We get it — we know you want to be
treated with respect, and we thank you,
genuinely, for entrusting us with
your banking.
Most importantly, we believe that
our own success is achieved only when
yours is, when we deliver our unique
banking experience to you…and every-
one we meet. For you, in that way,
we make a difference.
Table of
Contents.
Letter to the Shareholders.............................................................................2
Independent Auditor’s Report.......................................................................4
Balance Sheet....................................................................................................5
Statement of Operations.................................................................................7
Statement of Stockholders’ Equity...............................................................8
Statement of Cash Flows.................................................................................9
Notes to Financial Statements.......................................................................9
Who we are........................................................................................................27
Community Partnerships..............................................................................29
The Bank of
Wise Growth.
Letter to Our Shareholders
We are pleased to present the second annual report to shareholders from The Bank of
Princeton (“the Bank”). The attached financial statements reflect the financial activity for
the year ended December 31, 2008.
Despite problems at many financial institutions our operations are sound. While more than
500 banks have taken TARP (Troubled Asset Relief Program) funds, The Bank of Princeton
(which was approved by the Department of the Treasury to participate in the program)
declined to do so.
When The Bank of Princeton began operations in April 2007, we stated that it represented
“the return of community banking to Princeton and its surrounding neighborhoods.” We
believed that others shared our vision and desire for an institution that would bring local
knowledge, expertise and a commitment to the area. Now that we are almost two years into
our mission, it has become abundantly clear that the communities we serve agree with this
philosophy.
Our model for success that was established with our Chambers Street office in Princeton
has been expanded with the successful opening of three new branches in 2008: Pennington,
Hamilton and our new corporate headquarters on Bayard Lane in Princeton Township.
While the initial start-up costs to the Bank for this expansion were significant, we believe
that they position us for continued growth and efficiencies into the future.
As the audited financial statements reflect, the Bank finished its December 31, 2008 fiscal
year with $194,371,000 in total assets. This represents a nearly 200% increase over the
prior fiscal year. Fueling this growth was a significant increase in deposits which measured
$166,597,000 at December 31, 2008. In honor of the grand opening of our fourth branch, we
ran a very successful ad campaign called “4 for 4.” This promotion, which allowed customers
to deposit funds with us and earn 4% for 4 months, brought in roughly $65 million in the
last quarter of the year. We were able to reinvest much of this capital into our community
as evidenced by the approximate 200% increase in our loan portfolio which measured
$90,401,000 at December 31, 2008. Our balance sheet continues to be strong as seen by
stockholders’ equity of $26,861,000.
2
continued over
The Bank of
Wise Growth.
Letter to Our Shareholders, continued
The Statement of Operations reflects a net loss of $2,314,000 for the year, an increase
from the $1,613,000 loss incurred for fiscal year 2007. This loss reflects the higher cost of
obtaining deposits in 2008 and the aforementioned investment in the infrastructure of our
branch network. As we continue to deploy deposits into our growing loan portfolio and as the
precipitous decline in short-term interest rates allows us to reduce our cost of funds, we should
see the resulting improvement in operations in 2009. The Banks cost of funds decreased
167 basis points during 2008 to 2.73% in December. This figure continues to improve and
measured 2.36% for March 2009.
In order to execute the task of loan growth in a safe and secure manner during these trying
economic times, we recently hired three very experienced commercial lenders and a consumer
lending manager. These key additions to staff enable us to benefit from the economic “credit
crunch” that has affected our larger competitors. There is no lack of available credit at The
Bank of Princeton. We will continue to gain market share through the acquisition of good,
solid relationships that are not being attended to by other institutions. We have seen several
mergers brought on by the failings of these larger banks and are well positioned to take
advantage with our customized lending solutions and personalized style of banking.
We recognize that the success of our organization is dependent on our ability to attract and
retain both customers and quality staff. To that end we want to be sure to recognize our
employees for their efforts toward creating a first class organization, our customers who have
placed their trust and confidence in us and our investors that have shown their commitment
to our mission and faith in our ability to execute on it.
Andrew Chon
Chairman and CEO
Martin P. Melilli
President
3
Independent Auditor’s Report
To the Board of Directors
The Bank of Princeton
Princeton, New Jersey
We have audited the accompanying balance sheets of The Bank of Princeton as of
December 31, 2008 and 2007, and the related statements of operations, stockholders’ equity
and cash flows for the years then ended. These financial statements are the responsibility
of the Bank’s management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as
valuating the overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of The Bank of Princeton as of December 31, 2008 and 2007,
and the results of its operations and its cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.
Beard Miller Company LLP
Malvern, Pennsylvania
March 20, 2009
4
Balance Sheets
December 31, 2008 and 2007
Assets
Cash and due from banks
Federal funds sold
Cash and Cash Equivalents
Securities available for sale
Securities held to maturity
Loans, net of allowance for loan losses of $1,092,258 and
$354,486, respectively
Restricted investment in bank stock
Bank premises and equipment
Accrued interest receivable
Other assets
2008
2007
$ 13,759,890
15,718,000
$ 1,274,611
11,697,000
29,477,890
12,971,611
70,454,967
502,077
21,993,736
503,489
90,401,161
89,000
2,289,553
808,379
348,537
29,116,579
50,000
1,260,558
369,894
197,459
Total Assets
$194,371,564
$66,463,326
Liabilities & Stockholders’ Equity
Liabilities
Deposits:
Non-interest bearing
Interest-bearing
Total Deposits
Accrued interest payable
Other liabilities
Total Liabilities
Stockholders’ Equity
$ 10,596,133
156,001,248
$ 1,268,080
36,482,595
166,597,381
37,750,675
384,585
528,327
74,214
298,327
167,510,293
38,123,216
Common stock, $5 par value; authorized 10,000,000 shares;
issued and outstanding 3,020,000 shares and 3,000,000
shares at December 31, 2008 and 2007, respectively
Surplus
Accumulated deficit
Accumulated other comprehensive income
Total Stockholders’ Equity
15,100,000
15,516,753
(4,467,163)
711,681
15,000,000
15,252,820
(2,152,232)
239,522
26,861,271
28,340,110
5
Total Liabilities and Stockholders’ Equity
$194,371,564
$66,463,326
See notes to financial statements.
Statement of Operations
Years Ended December 31, 2008 and 2007
Interest Income
Loans receivable, including fees
Securities:
Taxable
Tax-exempt
Dividends
Federal funds sold
2008
2007
$ 3,570,605
$ 625,212
2,088,732
18,589
1,170
290,217
379,432
10,239
-
1,160,724
Total Interest Income
5,969,313
2,175,607
Interest Expense, Deposits
2,621,324
539,764
Net Interest Income
Provision for Loan Losses
3,347,989
1,635,843
737,772
354,486
Net Interest Income after Provision for Loan Losses
2,610,217
1,281,357
Non-Interest Income
Gain (loss) on sale of securities available for sale
Other income
Total Non-Interest Income
Non-Interest Expenses
Salaries and employee benefits
Occupancy and equipment
Professional fees
Data processing
Advertising and promotion
Loan expenses
Other
17,000
83,791
100,791
2,793,844
810,368
333,114
211,738
447,903
114,496
314,476
(4,304)
4,075
(229)
1,627,935
309,216
216,172
73,720
283,578
59,901
323,740
6
Total Non-Interest Expenses
5,025,939
2,894,262
Net Loss
$(2,314,931)
$(1,613,134)
See notes to financial statements.
Statements of Stockholders’ Equity
Years Ended December 31, 2008 and 2007
Common
Stock
Surplus
Accumulated
Deficit
Accumulated
Other
Comprehen-
sive Gain
Total
Balance - January 1, 2007
$ -
$ -
$ (539,098)
$ -
$ (539,098)
Comprehensive loss:
Net loss
Change in net unrealized gains
on securities available
for sale, net of
reclassification adjustment
and tax effect
Total Comprehensive Loss
-
-
-
(1,613,134)
-
(1,613,134)
-
-
239,522
239,522
Sale of 3,000,000 shares of common
stock, net of offering costs of $56,522
Share-based compensation expense
15,000,000
-
14,943,478
309,342
-
-
-
-
29,943,478
309,342
(1,373,612)
Balance - December 31, 2007
15,000,000
15,252,820
(2,152,232)
239,522
28,340,110
Comprehensive loss:
Net loss
Change in net unrealized gains
on securities available
for sale, net of
reclassification adjustment
and tax effect
Total Comprehensive Loss
Options exercised (20,000 shares
at $10 per share)
Share-based compensation expense
-
-
-
(2,314,931)
-
(2,314,931)
-
-
472,159
472,159
(1,842,772)
100,000
-
100,000
163,933
-
-
-
-
200,000
163,933
Balance - December 31, 2008
$15,100,000
$15,516,753
$(4,467,163)
$711,681
$26,861,271
7
See notes to financial statements.
Statement of Cash Flows
Years Ended December 31, 2008 and 2007
Cash Flows from Operating Activities
Net loss
Adjustments to reconcile net loss to net cash
used in operating activities:
Provision for loan losses
Depreciation and amortization
Share-based compensation
Accretion of deferred loan fees
Net amortization of securities premiums
Net realized (gain) loss on sale of
securities available for sale
(Increase) in accrued interest receivable
(Increase) in other assets
Increase in accrued interest payable
Decrease in other liabilities
2008
2007
$ (2,314,931)
$(1,613,134)
737,772
270,309
163,933
(51,975)
10,620
(17,000)
(438,485)
(151,078)
310,371
(13,234)
354,486
74,859
309,342
(12,445)
856
4,304
(369,894)
(197,459)
74,214
(364,161)
Net Cash Used in Operating Activities
(1,493,698)
(1,739,032)
Cash Flows from Investing Activities
Activity in available for sale securities:
Purchases
Maturities, calls and principal repayments
Proceeds from sales
Activity in held to maturity securities, purchases
Net increase in loans
Purchases of restricted investment in bank stock
Purchases of premises and equipment
(56,811,526)
8,056,480
1,017,000
-
(61,970,379)
(39,000)
(1,299,304)
(25,628,963)
-
3,993,740
(504,250)
(29,458,620)
(50,000)
(1,335,417)
Net Cash Used in Investing Activities
(111,046,729)
(52,983,510)
Cash Flows from Financing Activities
Net increase in deposits
Proceeds from issuance of common stock, net
Proceeds from exercise of stock options
128,846,706
-
200,000
37,750,675
29,943,478
-
Net Cash Provided by Financing Activities
129,046,706
67,694,153
Net Increase in Cash and Cash Equivalents
16,506,279
12,971,611
Cash and Cash Equivalents - Beginning
12,971,611
-
8
Cash and Cash Equivalents - Ending
$ 29,477,890
$12,971,611
Supplementary Cash Flows Information
Interest paid
$ 2,310,953
$ 465,550
See notes to financial statements.
Notes to Financial Statements
December 31, 2008 and 2007
Note 1 - Summary of Significant Accounting Policies
Organization and Nature of Operations
The Bank of Princeton (the “Bank”) was incorporated on July 17, 2006 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. The Bank 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 of the
New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation. The area
served by the Bank, through its four branches, is primarily Mercer County, New Jersey.
Prior to commencing operations, the Bank incurred $1,080,046 of organization and pre opening costs, $539,098
of which was expensed in 2006, and $540,948 of which was expensed in 2007. Interest income of $360,539 was
earned on escrow funds during 2007. The amounts expensed and earned in 2007 are included in the statement
of operations for the period ended December 31, 2007 in their respective income and expense categories. Stock
offering costs of $56,522 were netted against the proceeds from the sale of common stock.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America 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 financial
statements and the reported amounts of revenues and expenses during the reporting period. 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 loan losses, the potential impairment of restricted
stock, the valuation of deferred tax assets, and the determination of other-than-temporary impairment of
securities.
Significant Group Concentrations of Credit Risk
Most of the Bank’s activities are with customers located within Mercer County, New Jersey. Note 2 discusses
the type of securities that the Bank invests in. Note 3 discusses the types of lending that the Bank engages
in. Although the Bank has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced
by the region’s economy. The Bank does not have any significant concentrations to any one industry or
customer.
Presentation of Cash Flows
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from
banks and federal funds sold, all of which is highly liquid. Generally, federal funds are purchased for one day
periods.
9
Notes to Financial Statements
December 31, 2008 and 2007
Note 1 - Summary of Significant Accounting Policies (Continued)
Securities
Management determines the appropriate classification of debt securities at the time of purhase and re-
evaluates such designation as of each balance sheet date.
Securities classified as available for sale are those securities that the Bank intends to hold for an indefinite
period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any
decision to sell a security classified as available for sale would be based on various factors, including
significant movement in interest rates, changes in maturity mix of the Bank’s assets and liabilities, liquidity
needs, regulatory capital considerations and other similar factors. Unrealized gains and losses are reported
as increases or decreases in other comprehensive income. Realized gains or losses, determined on the basis
of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized
in interest income using the interest method over the terms of the securities.
Securities classified as held to maturity are those debt securities the Bank has both the intent and ability to
hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic
conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of
discount, computed by a method which approximates the interest method over the terms of the securities.
Declines in the fair value of securities below their cost that are deemed to be other than temporary are
reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management
considers (1) the length of time and the extent to which the fair value has been less than cost (2) the financial
condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its
investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.
Restricted Stock
Restricted stock, which represents required investments in the common stock of correspondent banks, is
carried at cost and as of December 31, 2008 consist of the common stock of Atlantic Central Bankers Bank
(ACBB) and the Federal Home Loan Bank of New York (FHLB-NY). As of December 31, 2007, restricted
stock consists of the common stock of the ACBB.
Management evaluates the restricted stock for impairment in accordance with Statement of Position (SOP)
01-6, Accounting by Certain Entities (Including EntitiesWith Trade Receiables) That Lend to or Finance
the Activities of Others. Management’s determination of whether these investments are impaired is based
on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary
declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is
influenced by criteria such as (1) the significance of the decline in net assets of the ACBB or FHLB-NY as
compared to the capital stock amounts and the length of time this situation has persisted, (2) commitments
by the ACBB or FHLB-NY to make payments required by law or regulation and the level of such payments
in relation to the operating performance of the ACBB and FHLB-NY, and (3) the impact of legislative and
regulatory changes on institutions and, accordingly, on the customer base of the ACBB and FHLB-NY.
Management believes no impairment charge is necessary related to restricted stock as of December 31,
2008.
10
Notes to Financial Statements
December 31, 2008 and 2007
Note 1 - Summary of Significant Accounting Policies (Continued)
Loans
Loans receivable that management has the intent and the Bank the ability to hold for the foreseeable
future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an
allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal
balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an
adjustment of the yield (interest income) of the related loans. The Bank is generally amortizing these
amounts over the contractual life of the loan.
The accrual of interest is discontinued when the contractual payment of principal or interest has become
90 days past due or management has serious doubts about further collectibility of principal or interest,
even though the loan is currently performing. A loan may remain on accrual status if it is in the process
of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid
interest credited to income in the current year is reversed and unpaid interest accrued in prior years is
charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either
applied against principal or reported as interest income, according to management’s judgment as to the
collectibility of principal. Generally, loans are restored to accrual status when the obligation is brought
current, has performed in accordance with the contractual terms for a reasonable period of time and the
ultimate collectibility of the total contractual principal and interest is no longer in doubt.
Allowance for Loan Losses
The allowance for loan losses is established through provisions for loan losses charged against earnings.
Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recov-
eries, if any, are credited to the allowance.
The allowance for loan losses is maintained at a level considered adequate to provide for losses that can
be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based
on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to
repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic
conditions and other relevant factors. This evaluation is inherently subjective as it requires material esti-
mates that may be susceptible to significant revisions as more information becomes available.
The allowance generally consists of specific, general and unallocated components. The specific component
relates to loans that are classified as either doubtful, substandard, or special mention. For such loans
that are also classified as impaired, an allowance is established when the discounted cash flows (or collat-
eral value or observable market price) of the impaired loan is lower than the carrying value of that loan.
The general component covers non-classified loans and is based on historical loss experience adjusted for
qualitative factors. An unallocated component is maintained to cover uncertainties that could affect man-
agement’s estimate of probable losses. The unallocated component of the allowance reflects the margin of
imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and
general losses in the portfolio.
11
At December 31, 2008 and 2007, the entire allowance reflected a general reserve.
Notes to Financial Statements
December 31, 2008 and 2007
Note 1 - Summary of Significant Accounting Policies (Continued)
Allowance for Loan Losses (Continued)
A loan is considered impaired when, based on current information and events, it is probable that the
Bank will be unable to collect the scheduled payments of principal or interest when due according to the
contractual terms of the loan agreement. Factors considered by management in determining impairment
include payment status, collateral value and the probability of collecting scheduled principal and interest
payments when due. Loans that experience insignificant payment delays and payment shortfalls generally
are not classified as impaired. Management determines the significance of payment delays and payment
shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the
loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior
payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment
is measured on a loan by loan basis for commercial and construction loans by either the present value of
expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral
if the loan is collateral dependent.
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly,
the Bank does not separately identify individual consumer loans for impairment disclosures, unless such
loans are the subject of a restructuring agreement.
Transfers of Financial Assets
Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when
control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered
when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions
that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3)
the Bank does not maintain effective control over the transferred assets through an agreement to repurchase
them before their maturity.
Bank Premises and Equipment
Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed
on the straight-line method over the estimated useful lives of the related assets.
Advertising Costs
The Bank follows the policy of charging the costs of advertising to expense as incurred.
Advertising expense incurred for the years ended December 31, 2008 and 2007 totaled approximately
$448,000 and $284,000, respectively.
Income Taxes
12
Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for
deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences.
Temporary differences are the differences between the reported amounts of assets and liabilities and net
operating loss carryforwards and their tax basis. Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets
will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment.
Notes to Financial Statements
December 31, 2008 and 2007
Note 1 - Summary of Significant Accounting Policies (Continued)
Income Taxes (Continued)
In December 2008, the Financial Accounting Standards Board issued FASB Staff Position (FSP) FIN 48
3, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises. The FSP defers the
effective date of FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, to be
effective for fiscal years beginning after December 15, 2008 for certain nonpublic enterprises. The FSP
requires a nonpublic enterprise that elects to defer the application of FIN 48 to explicitly disclose that fact
and also requires the disclosure of the enterprise’s accounting policy for evaluating uncertain tax positions
for each set of financial statements where the deferral applies.
The Bank has elected to defer the application of FIN 48. For the years ended December 31, 2008 and 2007,
the Bank has accounted for uncertain tax positions in accordance with Statement of Financial Accounting
Standards No. 5, Accounting for Contingencies.
Comprehensive Income (Loss)
Accounting principles generally require that recognized revenue, expenses, gains and losses be included
in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on
available for sale securities, are reported as a separate component of the equity section of the balance sheet,
such items, along with net income, are components of comprehensive income (loss). The components of
other comprehensive income for the years ended December 31 are as follows:
Unrealized holding gains on securities available for sale
Reclassification adjustment for (gains) losses included
in net loss
Tax effect
2008
2007
$732,393
$358,608
(17,000)
4,304
715,393
(243,234)
362,912
(123,390)
$472,159
$239,522
Off-Balance Sheet Financial Instruments
In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments
consisting of commitments to extend credit. Such financial instruments are recorded in the balance sheet
when they are funded.
Employee Benefit Plan
During 2007, the Bank established a 401(k) plan (“the Plan”). Under the Plan, all employees are eligible to
contribute the maximum allowed by the Internal Revenue Code of 1986, as amended. The Bank may make
discretionary matching contributions. During the period ended December 31, 2008 and 2007, no matching
contributions were made.
13
Notes to Financial Statements
December 31, 2008 and 2007
Note 1 - Summary of Significant Accounting Policies (Continued)
Share-Based Compensation
The Bank adopted the provisions of Statement of Financial Standards No. 123(R), “Share-Based Payment.”
This statement requires the Bank to recognize the cost of employee and organizer services received in
share-based payment transactions and measure the cost based on the grant-date fair value of the award.
The cost will be recognized over the period during which the employee or organizer is required to provide
service in exchange for the award.
Reclassifications
Certain reclassifications have been made to the previous year’s financial statements to conform to the
current year’s presentation. These reclassifications had no effect on net loss.
Note 2 - Securities
The amortized cost and approximate fair value of securities are summarized as follows:
December 31, 2008
Securities Available for Sale
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
U.S. Government agency securities
Mortgage-backed securities
Corporate securities
$17,994,474
49,927,782
1,454,406
$ 506,880
853,396
-
$ -
(253,260)
(28,711)
$18,501,354
50,527,918
1,425,695
Securities Held to Maturity
Obligations of state and political
subdivisions
$ 502,077
$ 8,115
$ - $ 510,192
$69,376,662
$1,360,276
$(281,971)
$70,454,967
December 31, 2007
Securities Available for Sale
U.S. Government agency securities
Mortgage-backed securities
$16,795,870
4,834,954
$376,140
7,196
$ -
(20,424)
$17,172,010
4,821,726
14
Securities Held to Maturity
Obligations of state and political
subdivisions
$ 503,489
$ 5,257
$ -
$ 508,746
$21,630,824
$383,336
$(20,424)
$21,993,736
Notes to Financial Statements
December 31, 2008 and 2007
Note 2 - Securities (Continued)
At December 31, 2008, the Bank has 16 securities in an unrealized loss position due to interest rate
fluctuations. These securities were in an unrealized loss position for less than 12 months. The Bank has
the intent and ability to hold this investment until maturity or market price recovery, therefore, they are
not deemed to be other-than-temporarily impaired.
There were three securities in an unrealized loss position at December 31, 2007. These securities were in
an unrealized loss position for less than 12 months.
The amortized cost and fair value of securities as of December 31, 2008, by contractual maturity, are
shown below. Expected maturities may differ from contractual maturities because the securities may be
called without any penalties.
Due in one year or less
Due after one year through five years
Due after five years through ten years
Due after ten years
Available for Sale
Held to Maturity
Amortized
Cost
$ -
5,800,684
15,811,884
47,764,094
Fair
Value
$ -
5,774,875
16,420,269
48,259,823
Amortized
Cost
$ -
502,077
-
-
Fair
Value
$ -
510,192
-
-
$69,376,662
$70,454,967
$502,077
$510,192
During 2008, the Bank sold a security available for sale for total proceeds of approximately $1,017,000,
resulting in a gross realized gain of $17,000.
During 2007, the Bank sold securities available for sale for total proceeds of approximately $3,993,740,
resulting in gross realized losses of $4,304.
At December 31, 2008 and 2007, the Bank had pledged to the Commissioner of Banking, State of New
Jersey, $1,237,000 and $100,000, respectively, in municipal and mortgage-backed securities, for the
purpose of securing public deposits under the Governmental Unit Deposit Protection Act. At December
31, 2008, the Bank has $3,000,000 in U.S. Government agency securities pledged to the ACBB as collateral
for the Bank’s two business sweep accounts held at the ACBB. In addition, the Bank has $15,706,268 in
mortgage-backed securities available to be pledged to the FHLB as collateral for advances outstanding
from the FHLB. As of December 31, 2008, there were no advances outstanding from the FHLB.
15
Notes to Financial Statements
December 31, 2008 and 2007
Note 3 - Loans
The composition of loans receivable at December 31 is as follows:
Commercial term
Commercial real estate
Construction
Home equity
Consumer
2008
2007
$ 8,878,365
56,218,516
11,326,390
12,301,915
3,012,366
$ 3,059,135
16,132,127
5,653,778
2,098,160
2,637,550
Total Loans
91,737,552
29,580,750
Deferred fees
Allowance for loan losses
(244,133)
(1,092,258)
(109,685)
(354,486)
Net Loans
$90,401,161
$29,116,579
The changes in the allowance for loan losses for the periods ended December 31 are as follows:
Balance, beginning
Provision for loan losses
$ 354,486
737,772
$ -
354,486
Balance, ending
$1,092,258
$354,486
2008
2007
At December 31, 2008, included in loans is an impaired loan (nonaccrual) in the amount of $155,000.
There was no specific reserve required on this impaired loan in accordance with Financial Accounting
Standards Board No. 114, “Accounting by Creditors for Impairment of a Loan.” Interest income that
would have been recognized on this loan had it been current in accordance with its original term totaled
approximately $3,300. Subsequent to December 31, 2008 all amounts outstanding on this impaired loan
were paid in full. There were no nonaccrual loans as of December 31, 2007. There were no loans past due
90 days or more still accruing interest at December 31, 2008 and 2007.
As of December 31, 2007, the Bank had no impaired loans.
16
Notes to Financial Statements
December 31, 2008 and 2007
Note 4 - Bank Premises and Equipment
The components of premises and equipment at December 31 are as follows:
Estimated
Useful
Lives
2008
2007
Leasehold improvements
Furniture, fixtures and equipment
Construction in progress
10
3 - 7
$1,412,707
1,222,015
-
$ 679,602
565,367
90,448
Accumulated depreciation
2,634,722
(345,169)
1,335,417
(74,859)
$2,289,553
$1,260,558
Depreciation and amortization expense charged to operations amounted to $270,309 and $74,859 for
the periods ended December 31, 2008 and 2007, respectively.
Note 5 - Deposits
The components of deposits at December 31 are as follows:
Demand, non-interest bearing
Demand, interest bearing and savings accounts
Money market accounts
Time, $100,000 and over
Time, other
2008
2007
$ 10,596,133
22,349,991
73,268,491
22,160,465
38,222,301
$ 1,268,080
2,229,469
9,002,083
12,576,216
12,674,827
$166,597,381
$37,750,675
At December 31, 2008, the scheduled maturities of time deposits are as follows:
2009
2010
2011
2012
2013
$ 58,980,869
944,405
290,581
81,911
85,000
$ 60,382,766
17
Notes to Financial Statements
December 31, 2008 and 2007
Note 6 - Borrowings
The Bank had no borrowings outstanding as of December 31, 2008 and 2007. At December 31, 2008, the
Bank has federal funds available with the ACBB of $4,000,000. In addition, the Bank has a $15,000,000
borrowing facility with the FHLB-NY.
Note 7 - Lease Commitments and Total Rental Expense
The Bank has operating leases for four of its branch locations, as well as its loan operations center.
Future minimum lease payments by year under the non-cancellable lease agreements for the Bank’s
facilities are as follows:
2009
2010
2011
2012
2013
Thereafter
$ 508,378
513,701
496,881
484,416
442,070
2,010,714
$4,456,160
Rental expense for the years ended December 31, 2008 and 2007 was $369,625 and $190,440,
respectively.
Since November 2008, the Bank has had an operating lease agreement with a related party for its
corporate headquarters and branch. The lease terms were comparable to similarly outfitted office space
in the Bank’s market. The Bank is also required to pay a monthly fee for certain operating expenses,
including real estate taxes, insurance, utilities, maintenance and repairs, in addition to the base rent.
Rental expense to this related party was approximately $47,000 for the period ended December 31,
2008.
Note 8 - Employment Agreement
The Bank entered into employment agreements with certain employees. The terms of the agreements
range from one to three years. The agreements include minimum annual salary commitments and for
certain employees change of control provisions. Upon resignation after a change in the control of the
Bank, as defined in the agreement, the individual will receive monetary compensation in the amount set
forth in the agreements.
18
Note 9 - Stockholders’ Equity
During 2007, the bank sold 3,000,000 shares of common stock at $10.00 per share, which resulted in
net proceeds of $29,943,478 (after offering costs of $56,522) under an initial stock offering of 1,200,000
to 2,500,000 shares. The Bank reserved the right to in their sole and absolute discretion to increase
the number of shares offered by 20% over the maximum. For every four (4) shares of common stock
purchased in the offering, one (1) warrant to purchase one (1) additional share of the Bank’s common
stock at $12.00 was issued. Warrants are exercisable any time and expire three years from the date of
issuance, which is April 1, 2010. There were 750,000 warrants outstanding at December 31, 2008 and
2007. No warrants were exercised, granted, or forfeited during the year ended December 31, 2008.
Notes to Financial Statements
December 31, 2008 and 2007
Note 9 - Stockholders’ Equity (Continued)
The New Jersey Department of Banking, in issuing its charter to the Bank required an allocation of
its initial capital to a reserve for organization expenses of $325,000 and a reserve for contingencies
of $1,625,000 to defray anticipated initial losses. Accordingly, $1,950,000 of the Bank’s surplus is
reserved for this purpose until the Bank becomes profitable.
Note 10 - Income Taxes
There is no provision for income taxes for the years ended December 31, 2008 and 2007 due to the net
operating losses incurred.
The components of the net deferred tax liability at December 31 are as follows:
Deferred tax assets:
Allowance for loan losses
Organization and start-up costs
Net operating loss carryforwards
Organizer warrants
Other
Valuation allowance
Total Deferred Tax Assets, Net of
Valuation Allowance
Deferred tax liabilities:
Property and equipment
Cash basis conversions
Unrealized gain on securities
Deferred loan costs
2008
2007
$ 396,776
379,341
1,387,597
109,656
2,668
2,276,038
(1,688,369)
$ 123,128
410,418
397,583
109,656
1,176
1,041,961
(846,795)
587,669
195,166
(237,330)
(320,503)
(366,624)
(29,836)
(41,112)
(134,941)
(123,390)
(19,113)
(954,293)
(318,556)
Net Deferred Tax Liability
$ (366,624)
$ (123,390)
19
Notes to Financial Statements
December 31, 2008 and 2007
Note 10 - Income Taxes (Continued)
At December 31, 2008, the Bank has available unused net operating loss carryforwards available for
federal and state income tax purposes of approximately $3,469,000, which expire through 2028 for federal
purposes and through 2015 for state purposes.
Note 11 - Transactions with Executive Officers, Directors and Principal Stockholders
The Bank has had, and may be expected to have in the future, banking transactions in the ordinary
course of business with its executive officers, directors, principal stockholders, their immediate families
and affiliated companies (commonly referred to as related parties), on the same terms, including interest
rates and collateral, as those prevailing at the time for comparable transactions with others. There were
loans receivable from related parties in the amount of $3,373,818 and $-0- at December 31, 2008 and 2007,
respectively. Deposits of related parties totaled $3,284,590 and $7,691,595 as of December 31, 2008 and
2007, respectively.
During 2008, loans originated to related parties totaled $3,498,818 and principal paydowns were
$125,000.
Note 12 - Share-Based Compensation
Organizers of the Bank were issued a total of 97,500 “organizer warrants” for their efforts during the
organization and start-up of the Bank. These warrants are immediately exercisable, expire in 10 years
and will enable the warrant holder to purchase one (1) share of common stock at $10.00 per share for each
warrant exercised.
In 2007, the Board of Directors adopted the 2007 Stock Option Plan, which was approved by the Board of
Directors in August 2007, and was approved by the shareholders in October 2007.
The 2007 Plan enables the Board of Directors to grant stock options to employees, directors, consultants,
and other individuals who provide services to the Bank. The shares subject to or related to options under
the Plan are authorized and unissued shares of the Bank. The maximum number of shares that may be
subject to options under the Plan is 300,000, all of which may be issued as Incentive Stock Options and
not more than 100,000 of which may be issued as Non-Qualified Stock Options. Incentive Stock Options
are subject to limitations under Section 422 of the Internal Revenue Code. The Bank has reserved, for the
purposes of the Plan, out of its authorized and unissued shares, such number of shares. The 2007 Plan
will terminate ten years from stockholder approval. Options may not be granted with an exercise price
that is less than 100% of the fair market value of the Bank’s common stock on the date of grant. Options
may not be granted with a term longer than 10 years. However, any Incentive Stock Option granted to
any employee who, at the time such Option is granted, owns more than 10% of the voting power of all
classes of shares of the Bank, its parent or of a subsidiary may not have a term of more than five years.
Options will vest and be exercisable at such time or times and subject to such terms and conditions as
determined by the Board of Directors. Generally, options will vest over a vesting period of approximately
equal percentages each year over an initial term no shorter than three (3) years.
20
Notes to Financial Statements
December 31, 2008 and 2007
Note 12 - Share-Based Compensation (Continued)
The fair value of each option grant is estimated on the date of the grant using the Black-Scholes
option-pricing model with the following weighted-average assumptions:
Dividend yield
Expected life
Expected volatility
Risk-free interest rate
2008
-
8 Yrs
23.19
3.75
%
%
%
2007
-
7 Yrs
20.89
4.34
%
%
%
The following is a summary of the Bank’s share-based compensation activity and related information
for the year ended December 31, 2008 and 2007:
December 31, 2008
Outstanding - beginning of year
Options granted
Exercised
Forfeited
Outstanding - end of year
Exercisable - end of year
Weighted-average fair value of options
granted during the year
December 31, 2007
Outstanding - beginning of year
Warrants granted
Options granted
Outstanding - end of year
Exercisable - end of year
Weighted-average fair value of options
granted during the year
Weighted-average fair value of warrants
granted during the year
Warrants
and Options
$223,250
85,200
(20,000)
(70,250)
$218,200
$133,000
Warrants
and Options
$ -
97,500
125,750
$223,250
$ 97,500
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
$10.00
10.25
10.00
10.00
10.10
10.00
8.8 years
8.2 years
$ -
$ -
$3.87
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
$ -
10.25
10.00
10.00
9.5 years
10.00
9.3 years
$ -
$ -
21
$3.46
$2.81
Notes to Financial Statements
December 31, 2008 and 2007
Note 12 - Share-Based Compensation (Continued)
Total share-based compensation cost for the year ended December 31, 2007 was $309,342 of which $35,203
related to stock options and $274,139 related to stock warrants granted to organizers. There is no tax
benefits recognized in 2007 related to the share-based compensation expense due to the net operating
loss incurred. Total share-based compensation cost for the year ended December 31, 2008 was $163,933
which related to stock options only. There is no tax benefits recognized in 2008 related to the share-based
compensation expense due to the net operation loss incurred.
As of December 31, 2008, there was $289,000 of unrecognized compensation cost related to nonvested
stock options granted in 2007 and 2008. The cost is expected to be recognized on a graded vesting method
over a weighted average period of 8 years.
Note 13 - Financial Instruments with Off-Balance Sheet Risk
The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business
to meet the financing needs of its customers. These financial instruments include commitments to extend
credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess
of the amount recognized in the balance sheet.
The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial
instrument for commitments to extend credit is represented by the contractual amount of those instruments.
The Bank uses the same credit policies in making commitments and conditional obligations as it does for
on-balance sheet instruments.
The Bank had the following off-balance sheet financial instruments whose contract amounts represent
credit risk at December 31:
2008
2007
Commitments to grant loans
Unfunded commitments under lines of credit
$ 36,548,533
11,214,664
$ 13,205,000
9,165,359
47,763,197
22,370,359
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of
any condition established in the contract. Since many of the commitments are expected to expire without
being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
Commitments generally have fixed expiration dates or other termination clauses and may require payment
of a fee. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of
collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s
credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts
receivable, inventory and equipment.
22
Notes to Financial Statements
December 31, 2008 and 2007
Note 14 - Regulatory Matters
The Bank is subject to various regulatory capital requirements administered by the federal banking
agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and
possibly additional discretionary-actions by regulators that, if undertaken, could have a direct material
effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory
framework for prompt corrective action, the Bank must meet specific capital guidelines that involve
quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated
under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to
qualitative judgments by the regulators about components, risk-weightings and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain
minimum amounts and ratios (set forth below) of total and Tier 1 capital (as defined in the regulations) to
risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31,
2008, that the Bank meets all capital adequacy requirements to which it is subject.
The Federal Deposit Insurance Corporation requires that the Bank maintain a ratio of Tier 1 leverage
capital to total assets of at least 8% during the first three years of operation. Under these guidelines, the
Bank is considered well capitalized as of December 31, 2008.
The Bank’s actual capital amounts and ratios at December 31, 2008 and 2007 are presented below:
For Capital
Adequacy
Purposes
To be Well
Capitalized under
Prompt Corrective
Action Provisions
Actual
Amount
Ratio
Amount
Ratio
Amount
Ratio
(Dollars in Thousands)
$27,241
26,149
26,149
%
24.72
23.73
15.86
$ > 8,817
> 4,408
>13,190
> 8.0
> 4.0
> 8.0
% $ >11,021
> 6,612
> 3,190
%
>10.0
> 6.0
> 8.0
$28,455
28,101
28,101
%
76.88
75.92
46.84
$ > 2,960
> 1,480
> 4,799
> 8.0
> 4.0
> 8.0
% $ > 3,701
> 2,220
> 4,799
%
>10.0
> 6.0
> 8.0
2008
2007
Total capital (to
risk-weighted assets)
Tier 1 capital (to
risk-weighted assets)
Tier 1 capital (to
average assets)
Total capital (to
risk-weighted assets)
Tier 1 capital (to
risk-weighted assets)
Tier 1 capital (to
average assets)
The Bank is subject to certain restrictions on the amount of dividends that it may declare due to regulatory
considerations.
23
Notes to Financial Statements
December 31, 2008 and 2007
Note 15 - Fair Value Measurements and Fair Values of Financial Instruments
Management uses its best judgment in estimating the fair value of the Bank’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
Bank could have realized in a sales transaction on the dates indicated. The estimated fair value amounts
have been measured as of their respective year-ends and have not been re-evaluated or updated for
purposes of these 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 than
the amounts reported at each year-end.
In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement No. 157, Fair
Value Measurements (“SFAS 157”), which defines fair value, establishes a framework for measuring fair
value under GAAP, and expands disclosures about fair value measurements. SFAS 157 applies to other
accounting pronouncements that require or permit fair value measurements. The Bank adopted SFAS
157 effective for its fiscal year beginning January 1, 2008.
In December 2007, the FASB issued FASB Staff Position 157-2, Effective Date of FASB Statement No. 157
(“FSP 157-2”). FSP 157-2 delays the effective date of SFAS 157 for all non-financial assets and liabilities,
except those that are recognized or disclosed at fair value on a recurring basis (at least annually) to fiscal
years beginning after November 15, 2008 and interim periods within those fiscal years. As such, the Bank
only partially adopted the provisions of SFAS 157, and will begin to account and report for non-financial
assets and liabilities in 2009. In October 2008, the FASB issued FASB Staff Position 157-3, Determining
the Fair Value of a Financial Asset When the Market for that Asset is Not Active (“FSP 157-3”), to clarify
the application of the provisions of SFAS 157 in an inactive market and how an entity would determine
fair value in an inactive market. FSP 157-3 is effective immediately and applies to the Bank’s December
31, 2008 consolidated financial statements. The adoption of SFAS 157 and FSP 157-3 had no impact on
the amounts reported in the financial statements.
SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to
measure fair value. The 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 under SFAS 157 are as follows:
Level 1:
Level 2:
Level 3:
Unadjusted quoted prices in active markets that are accessible at the measure
ment date for identical, unrestricted assets or liabilities.
Quoted prices in markets that are not active, or inputs that are observable either
directly or indirectly, for substantially the full term of the asset or liability.
Prices or valuation techniques that require inputs that are both significant to the
fair value measurement and unobservable (i.e., supported with little or no market
activity).
24
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.
Notes to Financial Statements
December 31, 2008 and 2007
Note 15 - Fair Value Measurements and Fair Values of Financial Instruments (Continued)
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, 2008 are as follows:
Description
December 31,
2008
(Level 1)
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 2)
Significant
Other
Observable
Inputs
(Level 3)
Significant
Unobserv-
able
Inputs
Securities available for sale
$70,454,967 $1,425,695 $69,029,272
$ -
Certain financial assets and financial liabilities 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). There were no financial assets and
financial liabilities measured at fair value on a non-recurring basis at December 31, 2008.
The following information should not be interpreted as an estimate of the fair value of the entire Bank since
a fair value calculation is only provided for a limited portion of the Bank’s assets and liabilities. Due to a
wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons
between the Bank’s disclosures and those of other companies may not be meaningful. The following methods
and assumptions were used to estimate the fair values of the Bank’s financial instruments at December 31, 2008
and 2007:
Cash and Cash Equivalents (Carried at Cost)
The carrying amounts reported in the balance sheets for cash and short-term instruments approximate
those assets’ fair values.
Securities
The fair value of securities available for sale (carried at fair value) and held to maturity (carried at
amortized cost) are determined by obtaining quoted market prices on nationally recognized securities
exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the
industry to value debt securities without relying exclusively on quoted market prices for the specific
securities but rather by relying on the securities’ relationship to other benchmark quoted prices.
Loans (Carried at Cost)
25
The fair values of loans are estimated using discounted cash flow analyses, using market rates at the
balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future
cash flows are calculated based upon contractual maturity or call dates, projected repayments and
prepayments of principal. Generally, for variable rate loans that reprice frequently and with no
significant change in credit risk, fair values are based on carrying values.
Notes to Financial Statements
December 31, 2008 and 2007
Note 15 - Fair Value Measurements and Fair Values of Financial Instruments (Continued)
Restricted Investment in Bank Stock (Carried at Cost)
The carrying amount of restricted investments in bank stock approximates fair value, and con
siders the limited marketability of such securities.
Accrued Interest Receivable and Payable (Carried at Cost)
The carrying amount of accrued interest receivable and accrued interest payable approximates
its fair value.
Deposit Liabilities (Carried at Cost)
The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook
savings and money market accounts) are, by definition, equal to the amount payable on demand
at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of de
posit are estimated using a discounted cash flow calculation that applies interest rates currently
being offered in the market on certificates to a schedule of aggregated expected monthly maturi
ties on time deposits.
Off-Balance Sheet Financial Instruments (Disclosed at Cost)
Fair values for the Bank’s off-balance sheet financial instruments (lending commitments and
lines of credit) are based on fees currently charged in the market to enter into similar agree
ments, taking into account, the remaining terms of the agreements and the counterparties’
credit standing.
The estimated fair values of the Bank’s financial instruments were as follows at December 31, 2008.
Financial Assets:
Cash and cash equivalents
Investment securities available
2008
Carrying
Amount
Fair
Value
$29,477,890
$29,477,890
for sale
70,454,967
70,454,967
Investment securities held to
maturity
Restricted investment in bank
stock
Loans receivable, net
Accrued interest receivable
26
Financial Liabilities:
Deposits
Accrued interest payable
502,077
510,192
89,000
90,401,161
808,379
89,000
90,236,742
808,379
166,597,381
384,585
173,985,000
384,585
Off-Balance Sheet:
Commitments to extend credit
Standby letters of credit
-
-
-
-
The Bank of
Princeton. Who we are.
Executive
Andrew M. Chon
Chairman/CEO
Martin P. Melilli
President
Kelly Tarity
Lending
C. Herbert Schneider
Chief Lending Officer
Stephanie Adkins
Scott Beresford
Michelle Jones
Nina Melker
Operations
Loan Operations
Lewis Foulke
Chief Financial Officer
Rebecca Dittrich
Edward Hassenkamp
Brian Maslowski
Amela Muslic
Karen Pfeifer
Kris Muse
Praful Bhagat
Joel Goldman
Mary Beth Gorecki
Daniel Jackson
Tamieka Jones
Edna Stout
Melissa Trout
Bayard Lane Branch
Chambers St Branch
Karen Dwyer
Gregory R. Talkington
Dwayne Armstrong
Trinace Johnson
Stuart Strachan
Maria Swift
Suzanne Lang
Oliver Guzman
Justin Naidoo
David Oquendo
Madhumathi Vysyaraju
Pennington Branch
Hamilton Branch
27
Barbara Cromwell
Joseph Ciampa
Charlene Jones
April Sullivan
Suzanne Lippincott
Linda Brown
Cathy Proctor
Erin Winder
Board of Directors
Advisory Board
Andrew Chon, Chairman/CEO
Ross Wishnick, Vice Chairman
Martin P. Melilli, President
Stephen Distler
Judith Giacin
Richard Gillespie
Janet Lasley
Robert N. Ridolfi
Stephen Shueh
Scott Siprelle, Chairman
Kristen Appleget
Barbara Cuneo
Peter J. Dawson
Jessica Durrie
Michael Goodman
YongKuen Joh
Lance Liverman
Scott Needham
Khursheed Palkhiwala
Joseph Ridolfi
Incorporators
Gregg E. Chaplin
Andrew Chon
Peter M. Crowley
Stephen Distler
Judith Giacin
Richard Gillespie
Bumsung Han
John Horvath
W. Andrew Krusen
Janet Lasley
Emmett Lescroart
Casey K. Min
David Machulsky
Scott Needham
Henry Opatut
Robert N. Ridolfi
Jeffrey Sands
Eric Steinfeldt
Ross Wishnick
28
The Bank of
Community Partnerships.
We’re here to lend a hand in the community.
Princeton Borough
Clarke Caton Hintz
Princeton Township
C&M Auto Parts
Suburban Wrench
Project Freedom
29
183 Bayard Lane
Princeton, NJ 08540
Our new corporate headquarters!
21 Chambers St
Princeton, NJ 08542
2 Rte 31 South
Pennington, NJ 08534
339 Rte 33
Hamilton, NJ 08619
The Bank of Princeton
Bank Wisely.
www.thebankofprinceton.com