Bank of Princeton
Annual Report 2017

Plain-text annual report

Table of Contents Letter to the Shareholders................... i–ii 2017 Form 10-K ..........................................1 Who We Are.............................................113 • They make me feel like a valued customer • A bank I can build relationships with for years Our customers speak highly of our bank.* “ • Friendly and professional customer service • Convenient hours and branch locations • I’m happy to recommend them to others ” The power of touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the power to positively affect lives. It’s how we deliver a unique banking experience, while providing exceptional products and services to our customers and surrounding business community. * Results based on survey conducted by Bruno & Ridgeway. June 2016. Bank Wisely. Letter to Shareholders Dear Fellow Shareholders, The Bank of Princeton (the “Bank”) completed a successful year with earnings of $11.0 million, or $1.90 per diluted common share, and total assets reaching $1.2 billion. These results were a part of the Bank’s strategic initiative of increasing shareholder value, by growing the Bank’s earning assets through controlled prudent growth and the reduction of operating expenses. During 2017, the Bank increased net interest income by 3.9% or $1.5 million compared to 2016, reduced operating expenses by $427,000, and improved non-interest income by $476,000, achieving an efficiency ratio1 of 55.6%. The Bank has experienced many changes since its opening in 2007, when it ended its first year with 3 branches and $66.4 million in assets, to its current levels of 13 branches and an operations center along with $1.2 billion in total assets. The Bank has maintained its success by staying the course with its original core mission of target- ing the commercial real estate and the small business communities for their lending needs, and catering to the local community by offering competitive rates on deposits along with its involvement in the community. This growth has also provided the Bank the ability of expanding its market area along the Route 95 corridor to include as far north as New York City and as far south as Philadelphia. Edward J. Dietzler President Chief Executive Officer Targeting the commercial real estate and the small business communities for their lending needs, and catering to the local community by offering competitive rates on deposits along with its involvement in the community. Notable Highlights for 2017 • On August 4, 2017, the Bank successfully completed a common stock offering and issued 1.7 million shares of common stock at a price of $32.00 per share. This offering raised $51.9 million and our common stock began trading on the “NASDAQ Global Select Market” under the ticker symbol “BPRN.” Moving to the NASDAQ market provided an opportunity for shareholders to enjoy a liquidity event. Shares closed up on the market at $34.34 at year-end, an annualized increase of 18.6%, compared to the offering price. • Achieved a return on average assets of 1.02% and return on average equity of 8.3% for 2017. • The year-end closing price of $34.34 reflected a 33.7% premium compared to the Bank’s book value. • Net loans at December 31, 2017 increased $108.9 million, or 12.8%, from the level at December 31, 2016. • Total deposits at December 31, 2017 increased $166.1 million, or 19.3%, from the level at December 31, 2016. • The American Bankers Association rated the Bank 35th in a ranking of the top 200 publicly traded community banks and thrifts by three-year average in the nation. This marks the fourth consecutive year the Bank has achieved a rating in the Top 50. • The Bank successfully launched a number of products and promotions in 2017. The addition of the “Princeton Money Market” and “Princeton Savings” promotions enabled the Bank to expand existing relationships and increase its market share. • Our branch network continued to support the non-profit organizations and community events in Mercer, Hunterdon, Middlesex and Somerset counties in New Jersey and in Philadelphia, Montgomery and Bucks counties in Pennsylvania. Providing the highest level of customer service remains a top priority. A smile, kind word, listening ear, and honest compliment or the smallest act of caring, all have the power to positively affect lives. It is how we deliver a unique banking experience, and easily keeps us focused and motivated on exceeding our goals. With this in mind, we are extremely grateful for the support from our customers and community partners. We appreciate the loyalty and support of you, our valued shareholders. We are committed to work diligently alongside our directors and man- agement as stewards of your investment in The Bank of Princeton. Richard Gillespie Chairman of the Board A smile, kind word, listening ear, and honest compliment or the smallest act of caring, all have the power to positively affect lives. It is how we deliver a unique banking experience. 1 This measure of the Bank’s non-interest expenses divided by its net revenue (total revenue less interest expense) is not recognized under generally accepted accounting principles in the United States of America (“U.S. GAAP”), and is therefore considered to be a non-GAAP financial measure. i ii 2017 ANNUAL REPORT Financial Reports The Bank of Princeton Bank Wisely. 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Distler Vice Chairman Edward J. Dietzler President Chief Executive Officer Ross E. Wishnick Vice Chairman Judith A. Giacin Robert N. Ridolfi, Esq. Stephen K. Shueh Martin Tuchman This page intentionally left blank 112 113 Who We Are Executive Management Edward J. Dietzler President Chief Executive Officer George S. Rapp Executive Vice President Chief Financial Officer Daniel J. O’Donnell Executive Vice President Chief Risk Officer & General Counsel Carol R. Coles Executive Vice President Chief Credit Officer Stephanie M. Adkins Executive Vice President Chief Lending Officer Paul Y. Hyon Executive Vice President Regional President, MoreBank Established in 2007, The Bank of Princeton opened its Chambers Street doors for business on the 23rd of April. Since then, the Bank has grown to include ten branch locations in New Jersey that serve the Mercer, Hunterdon, Middlesex, and Somerset markets. Through the acquisition of MoreBank in 2010, the Bank extended its footprint with three branches in nearby Pennsylvania. Together, The Bank of Princeton and MoreBank branch network consists of thirteen locations and a comprehensive Operations Center. 114 Finance Jeffrey T. Hanuscin, VP Edward P. Hassenkamp, VP Commercial Lenders William McCoy, SVP, New Brunswick Kris Muse, SVP, Nassau Street Paul M. Bencivengo, VP, Hamilton William McDowell, VP, Pennington/Lambertville Michele Lewis Fleming, AVP, Chambers Street Jennifer Yoo, AVP, Cheltenham Market Managers Rose Russo, AVP, Bayard Lane Darshana Jadav, Chambers Street Paul Sabol, Nassau Street Roseanne Maresma, Montgomery Rhoda Sundhar, Pennington Nedgine Douge, Hamilton John Thompson, Monroe Amy Lavery, Lambertville Miriam Colón, New Brunswick Karin Broadway, Lawrenceville Esther Youngsoon Sim, Cheltenham Hae Ran Hwangbo, North Wales Sokha Eng, Arch Street Marketing Barbara A. Cromwell, SVP Human Resources Anna Maria Miller, SVP Retail Administration Debra L. Von Gonten, VP Information Technology Matthew T. Clark, VP Kelly Tarity, VP Kyndle E. Alig, AVP Operations, Compliance & Security Karen D. Pfeifer, SVP Vincent Auletta, VP Angela Bancroft, VP Keith R. Bietzel, VP Ronnie Ra, AVP Loan Administration Karen A. Collier, SVP David Geyer, SVP Mary Beth Gorecki, SVP Christopher Tonkovich, SVP Stephen R. Helhowski, VP Sharon Litchman, VP Joseph H. Robotin, VP Lana Tremblay, VP Incorporators Gregg E. Chaplin Andrew M. Chon Peter M. Crowley Stephen A. Distler Richard 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 115 Bank Wisely. “Never underestimate the valuable and important difference you make in every life you touch, for the impact you make today has a powerful rippling effect on every tomorrow.” —Leon Brown Thank you to our community partners for helping Make a Difference. ACME Screening Room Allies, Inc. Alzheimer’s New Jersey American Foundation for Suicide Prevention Children’s Home Society of New Jersey, The Greener New Jersey Productions Habitat for Humanity of Burlington Christine’s Hope for Kids Foundation County and Greater Trenton-Princeton Civic League of Greater New Brunswick Habitat for Humanity American Heart Association Community Options, Inc. American Legion, Communiversity Community Justice Center in Monmouth County Habitat for Humanity Millstone Basin Area Hopewell Valley Post 339 Corner House Foundation Habitat for Humanity Philadelphia American Red Cross Crossroads of the American Revolution Habitat for Humanity American Repertory Ballet D&R Greenway Land Trust Raritan Valley Chapter Anchor House Animal Alliance Delaware River Towns Chamber of Hamilton Educational Foundation Commerce & Visitors Bureau, The Harrington Tournament Foundation Arc of Hunterdon County, The Delaware Township Schools, Hibernia Fire Company Archangel Raphael’s Mission Partners in Education Arm in Arm Dress for Success Central New Jersey HiTOPS, Inc. HomeFront Arts Council of Princeton Eden Autism Services Foundation HomeSharing, Inc. Bentley Community Services Elijah’s Promise Hopewell Harvest Fair Big Brothers Big Sisters Family Guidance Center Hopewell Valley Central High School of Mercer County Friendly Sons & Daughters Hopewell Valley Arts Council Bridge Academy of New Jersey, The of St. Patrick of Mercer County, The Hopewell Valley Education Foundation Brownie Troop #60119 Capital Health Auxiliary Capital Health Foundation Capital Singers of Trenton Carrier Clinic Catholic Charities, Friends of Ely Park Hopewell Valley Historical Society Friends of Hopewell Valley Open Space Hopewell Valley Senior Foundation Friends of Hopewell Public Library Hopewell Valley Veterans Association Friends of Howell Living History Farm, The Hopewell Valley YMCA Hopewell Valley Youth Football Friends of Princeton Basketball and Cheer Association, The Diocese of Trenton Catholic Youth Organization Gift of Life Donor Program Good Grief of Mercer County Grand Harmonie Center for Educational Advancement Greater Philadelphia Housing Initiatives of Princeton Hunterdon County Chamber of Commerce Hunterdon County YMCA Hyacinth AIDS Foundation Jason Fuhr Memorial Charity Morven Museum & Garden Robert Wood Johnson Golf Tournament & Scholarship Fund National Association for Korean Schools, Hamilton Foundation Jewish Family & Children’s Service The - Mid-Atlantic Chapter Ronald McDonald House of Greater Mercer County National Eating Disorders Association Rotary Club of Princeton John Warms Montgomery High School New Brunswick City Market Ryan’s Quest Alumni Association Joint Effort - Princeton Safe Streets Weekend Kalmia Club, The Knights of Columbus Trenton Council #355 New Brunswick Domestic Violence Saint Ann School Response Team New Hope Film Festival Saint Francis Medical Center Foundation New Hope Historical Society Saint John’s Outreach Ministry New Jersey Association of Community Providers Saint Peter the Apostle Church San Felese Lodge Korean American Institute of Princeton New Jersey Bankers Association Send Hunger Packing Princeton Korean Community Center New Jersey Business & Industry SERV Behavioral Health Systems of Greater Princeton Association Lambertville Area Education Foundation Notre Dame High School Shad Run Sixth Man Club Lambertville Historical Society One Simple Wish Solebury Township Historical Society Lambertville / New Hope Winter Festival Parkinson Alliance, The Lambertville Shad Fest Pennington Business & Special Olympics NJ Special Strides Lambertville-West Amwell Youth Professional Association SPLASH Steamboat Floating Classroom Baseball & Softball Association Pennington Day, Inc. Steinert High School Lawrence Township Education Foundation Pennington Volunteer Fire Company Sustainable Princeton Lawrenceville Fire Company People & Stories / Gente y Cuentos Thomas Edison State University Lawrenceville Main Street Lewis School of Princeton LifeTies, Inc. Links, Incorporated, The - Essex County Chapter Manna on Main Street March of Dimes Philadelphia Chinatown Foundation Development Corporation Trenton Area Soup Kitchen, The Philadelphia Holy Redeemer Trenton Catholic Academy Chinese Catholic Church Trenton Circus Squad Philadelphia Korean Christian Trenton Educational Dance Institute Broadcasting Company Trenton Public Education Foundation Princeton Area Alumni Association Trinity Church Mary Jacobs Library Foundation Princeton Battlefield Society, The UIH Family Partners Meals on Wheels of Greater New Brunswick Princeton Cornerstone Community Kitchen United Way of Hunterdon County Unity Square Trunk or Treat Meals on Wheels of Mercer County Princeton Education Foundation Waldorf School of Princeton Medina Community Clinic Mental Health Association Princeton Family YMCA Princeton Future of Monmouth County, The Princeton Historical Society Widener University The Bank of Princeton (cid:127) Brand Standards Guide Womanspace YMCA Camp Mason The MoreBank Signature Logo Mercer County Community College Princeton in Africa YMCA of Trenton Foundation Princeton Little League Full Color Young Friends of Philadelphia Grayscale Mercer County Turkey Trot Princeton Merchants Association Mercer Orthodontics Princeton Pro Musica Halloween Candy Buy-Back Princeton Public Library Mercerville Fire Company Princeton Recreation Department MidJersey Chamber of Commerce Princeton Regional Chamber Mid-Summer Marketing Showcase of Commerce Alt. Museum of Art YWCA Princeton Mil Al Mission Princeton Senior Resource Center Black & White Green & White Montgomery / Rocky Hill Rotary Club Princeton Symphony Orchestra Montgomery Baseball League Princeton University Montgomery Business Association Summer Chamber Concerts Montgomery High School Rebuilding Together Essex County Montgomery Township Economic Rebuilding Together Philadelphia Development Commission Montgomery Township Fireworks Committee Recreation Foundation of Hopewell Valley, Inc Riders for a Cause Black & Green White & Green Montgomery Township Volunteer Rise, A Community Service Partnership Center for Literacy Asian Social Services Center Isles, Inc. Fire Company No. 1 & No. 2 Riverside Symphonia Bank Wisely. 116 117 Green & Black White & Black Primary Typeface Complimentary Typeface Century Schoolbook Bold Century Schoolbook Regular Century Schoolbook Italic Century Schoolbook Bold Italic Century Gothic Regular Century Gothic Bold Italic Century Gothic Bold Century Gothic Italic Primary Color Palette Grayscale Pantone 356 C (Print) Pantone 173 C Pantone 5787 C Black Pantone Cool Gray 11 C Pantone Cool Gray 9 C Pantone Cool Gray 4 C CMYK RGB Hex# 96, 2, 100, 12 0, 132, 61 00843D 0, 82, 94, 2 207, 69, 32 CF4520 18, 4, 41, 10 186, 189, 139 BABD8B 0, 0, 0, 100 35, 31, 32 231F20 44, 34, 22, 77 30, 22, 17, 57 12, 8, 9, 23 83, 86, 90 53565A 117, 120, 123 187, 188, 188 75787B BBBCBC Revised July 2016 Bayard Corporate HQ 183 Bayard Lane Princeton, NJ 08540 www.thebankofprinceton.com 609.921.1700 www.morebankusa.com 215.224.6400 Cheltenham 470 W. Cheltenham Avenue Philadelphia, PA 19126 215.224.6400 North Wales 1222 Welsh Road North Wales, PA 19454 215.631.9911 Chinatown 921 Arch Street Philadelphia, PA 19107 215.923.6200 Chambers 21 Chambers Street Princeton, NJ 08542 609.921.6800 Nassau 194 Nassau Street Princeton, NJ 08542 609.921.3311 Montgomery 1185 Route 206 North Princeton, NJ 08540 609.497.0500 Pennington 2 Route 31 South Pennington, NJ 08534 609.730.8500 Hamilton 339 Route 33 Hamilton, NJ 08619 609.584.0011 Monroe 1 Rossmoor Drive, Ste 120 Monroe Twp, NJ 08831 609.655.7790 Lambertville 10 Bridge Street Lambertville, NJ 08530 609.397.0333 New Brunswick 1 Spring Street, Ste 102 New Brunswick, NJ 08901 732.993.0066 Lawrenceville 2999 Princeton Pike Lawrenceville, NJ 08648 609.882.0500 Operations Center 403 Wall Street Princeton, NJ 08540 609.454.0116 

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