Bank of Princeton
Annual Report 2009

Plain-text annual report

2009 Annual Report The Bank of Princeton Bank Wisely. On the road to success. 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................................................................................3 Balance Sheet.............................................................................................................4 Statement of Operations..........................................................................................5 Statement of Stockholders’ Equity.........................................................................6 Statement of Cash Flows..........................................................................................7 Notes to Financial Statements................................................................................8 Where We Are..........................................................................................................30 Who We Are..............................................................................................................31 Serving the Community..........................................................................................33 Note: This statement has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation. Letter to the Shareholders We are pleased to present the 2009 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, 2009. For the year we surpassed virtually every financial goal. As the audited financial statements reveal, the Bank had total assets of $264,661,000, total deposits of $218,628,000, total gross loans outstanding of $174,657,000 and capital of $27,890,000. Our loan portfolio grew 91% ($83 million) while our deposits grew 31% ($52 million). This strategic balance sheet realignment resulted in a favorable loan to deposit ratio of 80% at December 31, 2009. While asset growth was significant, credit quality remains sound as we continually enhance our monitoring systems and operating procedures. As illustrated in the Statement of Operations, the Bank realized a profit of $412,705 for fiscal year 2009. These results reflect interest income of $11,423,000, interest expense of $3,807,000, a $1,204,000 addition to the loan loss reserve, and $6,578,000 of non-interest expenses. Contributing to this profit were the aforementioned loan growth as well as a lower cost of funds. We were able to reduce our weighted average cost of funds to 1.83% for the year (1.51% for the month of December). These results represent a significant improvement over the prior year twelve month operations which showed a loss of $2,315,000. During 2009 we implemented several programs and strategies that contributed to our growth and profitability and will serve us well into the future. • In the second quarter we began offering a residential first mortgage product. This enabled us to diversify our loan portfolio and address another one of our customers’ financial needs. • In the third quarter we rolled out a new healthcare financing program. This was created to address the unique banking needs of medical practices and other healthcare providers. • In July we placed our most experienced commercial lenders in each branch as Community Bank Executives (CBE’s). The CBE’s are veteran customer contact personnel that have both a retail and commercial background which allows for a full service presence in our branches at the management level. • In December four new Business Development Managers (BDM’s) joined The Bank of Princeton team. Consistent with our business model, which is designed to foster maximum customer contact, each of these Business Development Managers is located within a branch. • We are also pleased to report that we continue to successfully attract new and expand existing municipal deposit relationships. This has become a niche market that the Bank looks forward to expanding. We are acquiring the Montgomery office of Provident Bank, pending regulatory approval. This purchase, which includes approximately $11,000,000 in deposits, is anticipated to close in the second quarter of 2010. As we grow our franchise, we will continue to invest in the communities we proudly serve. The majority of deposits we gather are reinvested into personal and business loans within the surrounding neighborhoods. This practice is an integral part of the mission that we adopted when The Bank of Princeton was formed and it is the community bank model that will continue to guide us. At The Bank of Princeton we not only share a sense of economic responsibility, but a social responsibility as well. During 2009 our employees actively participated in many non-profit and local business organizations. As an example, in December each branch collected food and clothing for a charity that was near and dear to their hearts in their respective markets. By supporting charitable organizations we all help make our communities a better place to live and work. This is a responsibility we embrace and take very seriously at The Bank of Princeton. Overall, we are extremely pleased with our results for 2009. Achieving profitability is an exciting accomplishment made possible through the dedicated team at The Bank of Princeton and our loyal customers. We are positioned well to build upon these positive results and look forward to meeting and even exceeding our goals for 2010. The Directors, Management and Staff of The Bank of Princeton thank you for your continued support. Sincerely, Andrew M. Chon Chairman of the Board 2 Martin P. Melilli President 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 The Bank of Where We Are Bayard Lane Branch 183 Bayard Lane Princeton, NJ 08540 609.921.1700 (main office) Chambers Street Branch 21 Chambers Street Princeton, NJ 08542 609.921.6800 Hamilton Branch 339 Route 33 Hamilton, NJ 08619 609.584.0011 Pennington Branch 2 Route 31 South Pennington, NJ 08534 609.730.8500 Montgomery Branch 1185 Route 206 North Princeton, NJ 08540 (coming soon) Loan Operations Center 403 Wall Street Princeton, NJ 08540 609.454.0116 Visit us on the web at www.thebankofprinceton.com 30 Who We Are Relationship Management Team Community Bank Executives Customer Service Managers Stephanie M. Adkins, Chambers Street Nina D. Melker, Hamilton Michelle C. Jones, Pennington Karen Dwyer, Bayard Lane Suzanne Lang, Chambers Street Suzanne Lippincott, Hamilton Joseph Ciampa, Pennington Lenders Business Development Managers Mary Beth Gorecki, Consumer Credit Kris Muse, Healthcare Personal Banking Representatives Cathy Proctor, Bayard Lane Charlene Jones, Pennington Jelani W. Polite, Bayard Lane Carly Meyer, Chambers Street Paul M. Bencivengo, Hamilton Daniel A. Jackson, Pennington Customer Service Representatives Dwayne Armstrong, Bayard Lane Connie Inverso, Bayard Lane Rose Russo, Bayard Lane Oliver Guzman, Chambers Street Justin Naidoo, Chambers Street David Oquendo, Chambers Street Valerie Sievers, Chambers Street Madhu Vysyaraju, Chambers Street Linda Brown, Hamilton Earl Hawley, Hamilton Trinace Johnson, Hamilton Angela Arduini, Pennington April Sullivan, Pennington Loan Administration Team Management and Support Team Carol Safechinsky Praful Bhagat David Geyer Michelle Goldstein Deborah Josephson Amela Muslic Lois Newman Edna Stout Lana Trembley Melissa Trout Senior Management Andrew M. Chon Martin P. Melilli Douglas V. Conover William A. Siegenthaler Edward J. Dietzler Administration Kelly Tarity Marketing Barbara A. Cromwell Gregory R. Talkington Operations & Compliance Karen D. Pfeifer Brian K. Maslowski Nancy C. German Anne Paglia Finance Edward Hassenkamp 31 Who We Are Board of Directors Advisory Board Andrew M. Chon, Chairman Ross E. Wishnick, Vice Chairman Martin P. Melilli, President Stephen Distler Judith Giacin Richard J. Gillespie Janet M. Lasley Robert N. Ridolfi, Esq. Stephen K. Shueh Scott Sipprelle, Chairman Kristen Appleget David Bonanni Barbara Cuneo Peter J. Dawson Michael Goodman, Esq. Yongkeun Joh Lance Liverman Jerry Maclean J. Scott Needham Khursheed Palkhiwala Joseph Ridolfi Incorporators Gregg E. Chaplin Andrew M. Chon Peter M. Crowley Stephen Distler Richard J. Gillespie Bumsung K. Han John A. Horvath Kevin R. Kenyon W. Andrew Krusen, Jr. Janet M. Lasley Emmett J. Lescroart Dennis M. Machulsky Casey K. Min J. Scott Needham Henry S. Opatut Robert N. Ridolfi, Esq. James M. Riley Jeffrey H. Sands Eric L. Steinfeldt Ross E. Wishnick 32 Serving the Community Lending Team Nina D. Melker Community Bank Executive, Hamilton Kris Muse Healthcare Lender Mary Beth Gorecki Consumer Credit Officer Douglas V. Conover Chief Lending Officer Stephanie M. Adkins Community Bank Executive, Princeton Michelle C. Jones Community Bank Executive, Pennington Business Development Managers Dan A. Jackson Pennington Market Carly Meyer Princeton Market, (Chambers Street) Jelani W. Polite Princeton Market, (Bayard Lane) Paul M. Bencivengo Hamilton Market 33 The Bank of Caring. Thank you to our partners who continue to make a difference in the community. Allies, Inc. Alzheimer’s Association Arts Council of Princeton American Heart Association Auxiliary of University Medical Center at Princeton Capital Health Foundation Catholic Charities of the Diocese of Trenton Community Options, Inc. Corner House Foundation Crisis Ministry of Princeton & Trenton Dress for Success of Mercer County Eden Autism Services Frances Clark School for Keyboarding Friends of the Princeton Public Library Hamilton Area YMCA Hamilton Education Foundation Healthcare Ministry of Princeton HiTOPS Home Town Princeton, Inc. Hopewell Valley Education Foundation Hopewell Valley YMCA Jewish Family & Children’s Service of Mercer County KFS Education Services, LLC Kidsbridge Children’s Museum Korean Community Center of Princeton Mercer County Community College Foundation Mercer Regional Chamber of Commerce Metropolitan Trenton African-American Chamber of Commerce Empowerment Fund Miracle League of Mercer New Jersey Regional Coalition Nick & Jim “Friends in Heaven” NJSCPA Education Foundation Opera New Jersey Our Lady of Sorrows - St. Anthony Parish Passage Theatre Company Pennington Business & Professional Association Philadelphia Treasurers’ Club Princeton Charter Club Princeton Community Church Princeton Community Housing Princeton Family YMCA Princeton Girls Softball Princeton High School Princeton Human Services Princeton Pro Musica Princeton Regional Chamber of Commerce Princeton Regional Schools Princeton Senior Resource Center Princeton Symphony Orchestra Princeton Young Achievers Princeton Kids Project 101 Project Freedom Recreational Foundation of Hopewell Valley Robbinsville Education Foundation Rotary Club of Princeton Robert Wood Johnson Hamilton Ryan’s Quest SCORE The American Legion The Foundation of Morris Hall The Hun School The Oxford Group The Parkinson Alliance, Inc. The Princeton Singers The Salvation Army Trenton Area Soup Kitchen Trenton Homeless Shelter Union County Economic Development Corporation Union Fire Company & Rescue Way of the Cross Holy Temple and many other community organizations. www.thebankofprinceton.com 

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