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
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Martin P. Melilli
President
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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
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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
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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
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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
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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