Bank of Princeton
Annual Report 2019

Plain-text annual report

2019 Annual Report Bayard Corporate HQ 183 Bayard Lane Princeton, NJ 08540 www.thebankofprinceton.com • 609.921.1700 Operations Center 403 Wall Street, Princeton, NJ 08540 New Jersey Bordentown 335 Farnsworth Avenue Bordentown, NJ 08505 609.291.8200 Browns Mills 101 Pemberton Browns Mills Road Brown Mills, NJ 08015 609.893.5540 Chambers 21 Chambers Street Princeton, NJ 08542 609.921.6800 Chesterfield 305 Bordentown- Chesterfield Road Chesterfield, NJ 08515 609.324.1256 Cream Ridge 403 Route 539 Cream Ridge, NJ 08514 609.757.1120 Deptford 1893 Hurffville Road Deptford, NJ 08080 856.227.9440 Hamilton 339 Route 33 Hamilton, NJ 08619 609.584.0011 Lambertville 10 Bridge Street Lambertville, NJ 08530 609.397.0333 Lawrenceville 2999 Princeton Pike Lawrenceville, NJ 08648 609.882.0500 Monroe 1 Rossmoor Drive, Suite 120 Monroe Twp, NJ 08831 609.655.7790 Montgomery 1185 Route 206 North Princeton, NJ 08540 609.497.0500 Nassau 194 Nassau Street Princeton, NJ 08542 609.921.3311 New Brunswick 1 Spring Street, Suite 102 New Brunswick, NJ 08901 732.993.0066 Pennington 2 Route 31 South Pennington, NJ 08534 609.730.8500 Princeton Junction 11 Cranbury Road Princeton Junction, NJ 08550 609.759.8100 Quakerbridge 3745 Quakerbridge Road Hamilton, NJ 08619 609.981.8900 Sicklerville 483 Cross Keys Road Sicklerville, NJ 08081 856.728.0343 Pennsylvania Cheltenham 470 W. Cheltenham Avenue Philadelphia, PA 19126 215.224.6400 Chinatown 921 Arch Street Philadelphia, PA 19107 215.923.6200 North Wales 1222 Welsh Road North Wales, PA 19454 215.631.9911 A hila, P ut St. P hestn C ajectory 9’20 L a k e w oo d Co ming: Spring 2020 Piscata w ay g r i d b 1 , 2 r 2 a u Q O c t o r e e e k 0 b 1 h t r r o w t g i t o n J u n c 3 , 2 t e 2 e m b e r i n c P r t p S e o n 9 1 0 Table of Contents Letter to the Shareholders.........i–ii 2019 Form 10-K ...............................1 Who We Are..................................111 The Bank of Princeton is approaching its 13th year of operation and continues its success by staying the course. The Bank’s strong capital position provides when they present themselves. the opportunity for future organic growth as well as the ability to take advantage of acquisition opportunities A n excitin g ne w h e s t e r fi el d D e p t f o r d c k l e r v i 0 , 2 S i l e 1 0 9 w n l C y 2 M a n t o e o r d ’19 M ills B o w n s B r MoreBank conversion to The Bank of Princeton completed March 30, 2019 Dear Fellow Shareholders, The Bank of Princeton (the “Bank”) completed a successful year with earnings of $10.1 million, or $1.47 per diluted common share, and total assets of $1.45 billion. These results were a part of the Bank’s strategic initiative of increasing shareholder value through controlled prudent growth of the Bank’s earning assets, which grew $100.5 million during 2019. Total deposits increased $230.6 million during the same period. The Bank is approaching its 13th year of operation, and continues its success by staying the course with its original core mission of targeting the commercial real estate and small business communities for their lending needs and staying significantly involved in the community. The Bank’s strong capital position provides the opportunity for future organic growth as well as the ability to take advantage of acquisition opportunities when they present themselves, such as the WSFS/ Beneficial Bank branch acquisition. Edward J. Dietzler President Chief Executive Officer Notable Highlights for 2019 The Bank is focused on the strategy to expand its cohesive footprint along the I-95 corridor. • Net loans increased $105.4 million to nearly $1.2 billion at year-end 2019 and reflected an 8.9% increase year over year. • The quarterly cash dividend paid to The Bank of Princeton shareholders increased by $0.07 per share to $0.10 per share during the 3rd quarter of 2019, from its inception on November 5, 2018. • Acquired five branches with $178.0 million in low-cost deposits in southern New Jersey from WSFS Bank on May 17, 2019. The five branches are consistent with the Bank’s I-95 footprint. • The Bank added the Princeton Junction branch in the 3rd quarter 2019, followed by the Quakerbridge Road branch in the 4th quarter 2019. • The Bank has received regulatory approval and expects to open three additional branches and two unique ATM locations in 2020; the branches will be located in Lakewood and Piscataway in New Jersey and on Chestnut Street in Philadelphia, Pennsylvania. These new locations will boost the total number of branches to twenty-four, adding locations in Ocean and Middlesex Counties in New Jersey and the Philadelphia Market. The Bank is focused on the strategy to expand its cohesive footprint along the I-95 corridor. This footprint along the I-95 corridor extends from north New Jersey to Philadelphia. After going public in 2017, the Bank started with opening the Cream Ridge branch in December 2018, followed by two additional strategic branch locations in the 3rd (West Windsor) and 4th (Quakerbridge) quarters of 2019. The Bank expects that the three additional branches which were approved in 2019 will open in the 1st and 2nd quarters of 2020 as discussed above. In addition, the Bank executed on the acquisition of five branches from the WSFS/ Beneficial Bank merger. These additional branches added $178.0 million of low-cost deposits and were consistent with the Bank’s strategic I-95 footprint focus. The Bank recognizes that attracting and retaining core deposits is fundamental to the future success of the Bank. Core deposits drive greater profitability and franchise value, which can translate into higher stock value. This expansion naturally comes with additional cost. The strong core earnings power of the Bank provides sufficient revenue to allow the Bank to continue to be a solid performer during the period it takes to realize this investment in the franchise. Finally, the Bank is making significant investments in its digital platform. The investment in these digital technologies allows our Bank customers to conveniently access the many Bank products and services. In addition, while our existing customers can benefit from the convenience, this technology also allows the Bank to recruit new customers within our market areas. The digital platform offers the Bank a more efficient way to market our brand along with our products and services in our existing and new market areas while extending the Bank’s reach to new customers. The Board and Management of the Bank are excited about providing the highest level of service along with being a strong partner in the communities we service. Richard Gillespie Chairman of the Board Multiple new branch openings and increased deposits are fueling our growth. i ii The Bank of Princeton 1 The Bank of Princeton 2019 Financial Reports The Bank of Princeton The Bank of Princeton This page intentionally left blank 2 3 The Bank of Princeton The Bank of Princeton 4 5 The Bank of Princeton The Bank of Princeton 6 7 The Bank of Princeton The Bank of Princeton 8 9 The Bank of Princeton The Bank of Princeton 10 11 The Bank of Princeton The Bank of Princeton 12 13 The Bank of Princeton The Bank of Princeton 14 15 The Bank of Princeton The Bank of Princeton 16 17 The Bank of Princeton The Bank of Princeton 18 19 The Bank of Princeton The Bank of Princeton 20 21 The Bank of Princeton The Bank of Princeton 22 23 The Bank of Princeton The Bank of Princeton 24 25 The Bank of Princeton The Bank of Princeton 26 27 The Bank of Princeton The Bank of Princeton 28 29 The Bank of Princeton The Bank of Princeton 30 31 The Bank of Princeton The Bank of Princeton 32 33 The Bank of Princeton The Bank of Princeton 34 35 The Bank of Princeton The Bank of Princeton 36 37 The Bank of Princeton The Bank of Princeton 38 39 The Bank of Princeton The Bank of Princeton 40 41 The Bank of Princeton The Bank of Princeton 42 43 The Bank of Princeton The Bank of Princeton 44 45 The Bank of Princeton The Bank of Princeton 46 47 The Bank of Princeton The Bank of Princeton 48 49 The Bank of Princeton The Bank of Princeton 50 51 The Bank of Princeton The Bank of Princeton 52 53 The Bank of Princeton The Bank of Princeton 54 55 The Bank of Princeton The Bank of Princeton 56 57 The Bank of Princeton The Bank of Princeton 58 59 The Bank of Princeton The Bank of Princeton 60 61 The Bank of Princeton The Bank of Princeton 62 63 The Bank of Princeton The Bank of Princeton 64 65 The Bank of Princeton The Bank of Princeton 66 67 The Bank of Princeton The Bank of Princeton 68 69 The Bank of Princeton The Bank of Princeton 70 71 The Bank of Princeton The Bank of Princeton 72 73 The Bank of Princeton The Bank of Princeton 74 75 The Bank of Princeton The Bank of Princeton 76 77 The Bank of Princeton The Bank of Princeton 78 79 The Bank of Princeton The Bank of Princeton 80 81 The Bank of Princeton The Bank of Princeton 82 83 The Bank of Princeton The Bank of Princeton 84 85 The Bank of Princeton The Bank of Princeton 86 87 The Bank of Princeton The Bank of Princeton 88 89 The Bank of Princeton The Bank of Princeton 90 91 The Bank of Princeton The Bank of Princeton 92 93 The Bank of Princeton The Bank of Princeton 94 95 The Bank of Princeton The Bank of Princeton 96 97 The Bank of Princeton The Bank of Princeton 98 99 The Bank of Princeton The Bank of Princeton 100 101 The Bank of Princeton The Bank of Princeton 102 103 The Bank of Princeton The Bank of Princeton 104 105 The Bank of Princeton The Bank of Princeton 106 107 The Bank of Princeton The Bank of Princeton 108 109 The Bank of Princeton Who We Are Board of Directors Richard Gillespie Chairman Stephen A. 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 110 111 Who We Are Executive Management Edward J. Dietzler President Chief Executive Officer Daniel J. O’Donnell Executive Vice President Chief Operating Officer & General Counsel George S. Rapp Executive Vice President Chief Financial Officer Christopher M. Tonkovich Executive Vice President Chief Credit Officer Stephanie M. Adkins Executive Vice President Chief Lending Officer 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 eighteen branch locations that serve Mercer, Burlington, Camden, Glouchester, Hunterdon, Middlesex, Monmouth, Ocean, and Somerset counties in New Jersey along with three branches in the Montgomery County and Philadelphia markets of Pennsylvania. Today, The Bank of Princeton is comprised of twenty-one branch locations and a comprehensive Operations Center headquartered in Princeton. Marketing Barbara A. Cromwell, SVP Human Resources Anna Maria Miller, SVP Retail Administration Debra L. Von Gonten, SVP Rose Russo, AVP Amy Zuccarello, AVP Information Technology Matthew T. Clark, SVP Kyndle E. Alig, AVP Operations, Compliance Security & Facilities Karen D. Pfeifer, SVP Vincent Auletta, VP Angela Bancroft, VP Keith R. Bitzel, VP Joseph H. Robotin, VP Ryan M. Cavicchio, AVP Justin Naidoo, AVP Jamie Wilson, AVP Loan Administration Karen A. Collier, SVP David Geyer, SVP Mary Beth Gorecki, SVP Michelle Goldstein, VP Stephen R. Helhowski, VP Amela Muslic, VP Stanley Plytynski, VP Marianne Pugliese, VP Lana Tremblay, VP Lukasz Gargas, AVP Theresa Harris-Norfleet, AVP Wanda M. Szymanski, AVP Eleanor Velasquez, AVP Thomas Waszkiewicz, AVP Denise Youn, AVP Incorporators Finance Jeffrey T. Hanuscin, SVP Edward P. Hassenkamp, VP Carmen Lloja-MacKenzie, AVP Rosemary Tumino, AVP Commercial Lenders Arthur M. Birenbaum, SVP William McCoy, SVP Kris Muse, SVP Paul M. Bencivengo, VP William McDowell, VP Jennifer Yoo, VP Michele Lewis-Fleming, AVP Market Managers Princeton Region Roseanne Maresma, AVP, Montgomery, RRM* Henrry Polanco, Bayard Lane Darshana Jadav, Chambers Street & Nassau Street Wendy J. Evans, Monroe Miriam Colón, New Brunswick Central Region Nedgine Douge, AVP, Hamilton, RRM* Barbara Brehaut, Hamilton Paul Sabol, Bordentown Donna Craddock, Browns Mills Shannon Bennett, Chesterfield Jeralyn H. Lang, Cream Ridge Lourdes Pagan, Quakerbridge Road Southern Region Kelly Zane, AVP, Deptford, RRM* Sokha Eng, Arch Street Esther Youngsoon Sim, Cheltenham Mi Kyung Kim, North Wales Christina Lerro, Sicklerville Western Region Karin van Garderen, AVP, Lawrenceville, RRM* Jonathan Collins, Lambertville Natalie Cassion, Pennington Rhoda Sundhar, Princeton Junction * Regional Retail Manager 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 112 113 “ Taking the time to build community, to get to know your people will have long-lasting benefits.” – Clifton Taulbert Thank you to our community partners for helping Make a Difference. Isles, Inc. Montgomery Township Puerto Rican Action Board Jason Fuhr Memorial Charity Education Foundation Rebuilding Together Essex County Golf Tournament & Scholarship Fund Montgomery Township Rebuilding Together Philadelphia Jewish Family & Children’s Service Fireworks Committee Robert Wood Johnson University Hospital of Greater Mercer County Montgomery Township Hamilton Foundation JFCS Mobile Food Pantry Volunteer Fire Company No. 1 Rotary Club of Princeton, The Joint Effort: Princeton Safe Streets Weekend Kalmia Club, The Kidpreneur Montgomery Woman’s Club SAFE in Hunterdon Morven Museum & Garden San Felese Lodge Mount Carmel Guild of Trenton Send Hunger Packing Princeton Music & Theatre Parents Sixth Man Club Korean American Institute of Princeton Association of Hopewell Valley Societa Napoletana Korean CBMC of North America Central High School Solebury Township Historical Society Korean Senior Golf Association New Brunswick City Center Sourland Conservancy Ladies Auxiliary of the Chesterfield Hose Co. New Brunswick Domestic Violence Spectrum for Living Response Team Steinert School Fund: DECA Lambertville / New Hope Winter Festival New Hope Historical Society TCA eSports Program Lambertville Area Education Foundation NJ Bankers Association Team Habitat Company Build Day Lambertville Historical Society Notre Dame High School Thomas Edison State Lambertville-West Amwell Youth Om Parikh Memorial Fund University Foundation ACME Screening Room Advancing Opportunities Allentown Food Pantry American Foundation for Suicide Prevention Chesterfield Township Historical Society Friends of Hopewell Valley Open Space Baseball & Softball Association Parkinson Alliance, The Town Clock Community Children’s Home Society of New Jersey, The Christian Caring Center Friends of Rittenhouse Square Gift of Life Donor Program Lawrenceville Winter Market PEI Kids Development Corporation LaShir, The Jewish Community Choir Penn Asian Senior Services Township of Chesterfield Gloucester Township Fire District #5 of Princeton Pennington Business & Professional Township of Lawrence Christine’s Hope for Kids Foundation Greater Philadelphia Asian Lawrence Township Education Foundation Association Toys for Tots: Camden County American Heart Association Clarifi Arc of Hunterdon County, The Communiversity Social Services Center Greater Philadelphia Arts Council of Princeton Big Brothers Big Sisters of Mercer County Consolidated Fire Association Coalition Against Hunger Corner House Foundation Grounds for Sculpture Crosswicks Community Association Habitat for Humanity Lawrenceville Main Street Pennington Day, Inc. Trenton Area Soup Kitchen, The Learning to Lead LifeTies, Inc. Pennington Public Library Trenton Catholic Academy Petey Greene Program, The Trenton Circus Squad Main Street New Egypt Philabundance Trinity Church Mainstage Center for the Arts Philadelphia Holy Redeemer Triple C Housing, Inc. Bordentown City Veterans Crosswicks Library Company in Monmouth County Meals on Wheels in Chinese Catholic Church and School United Way of Hunterdon County Memorial Committee Deborah Hospital Foundation Habitat for Humanity of Greater New Brunswick Planned Lifetime Assistance Unity Square: Trunk or Treat Bordentown Regional High School Delaware River Steamboat Floating Burlington County and Meals on Wheels of Mercer County Network of NJ Bordentown Rotary Club Classroom, Inc., SPLASH Greater Trenton-Princeton Mercer Council on Alcoholism Plumstead Township West Windsor - Plainsboro Regional School District Bridge Academy of New Jersey, The Delaware River Towns Chamber Habitat for Humanity Philadelphia & Drug Addiction Police Unity Tour Inc., Chapter 10 Widener University Budget Challenge Burlington Mercer of Commerce & Visitors Bureau, The Habitat for Humanity, Mercer County Community Prevent Child Abuse Womanspace Delaware Township Schools, Raritan Valley Chapter College Foundation Princeton Area Alumni Association WW-P Robotics: MidKnight Mayhem Chamber of Commerce Partners in Education Hamilton Educational Foundation Mercer County Turkey Trot Princeton Battlefield Society, The YWCA Princeton Business NJ, LLC Camp Sunshine Capital Area YMCA Downtown Bordentown Association HomeFront Mercer Street Friends Princeton Education Foundation Dress for Success Central New Jersey - 7 Counties Hope Hose Humane Co. No. 1 Hopewell Valley Arts Council Mid-Summer Marketing Showcase Princeton Family YMCA Mil Al Mission Princeton Little League Capital Health Foundation Eden Autism Services Foundation Hopewell Valley Education Foundation Monroe Indians for Civil Action Princeton Mercer Regional Chamber CASA of New Jersey Elijah’s Promise Hopewell Valley Veterans Association Montgomery / Rocky Hill Rotary Club Princeton Pro Musica Catholic Charities, Diocese of Trenton First Friday Fireworks Hopewell Valley YMCA Montgomery Baseball League Princeton Public Library Center for Educational Advancement Foundation for Bordentown Housing Initiatives of Princeton Montgomery Business Association Princeton Senior Resource Center Central Jersey Housing Traditions, Inc., The Hunterdon County Chamber of Commerce Montgomery County Korean Princeton Symphony Orchestra Resource Center Chapin School Friendly Sons & Daughters of I Believe in Pink Senior Association Princeton University St. Patrick of Mercer County, The Iron Mikes Foundation Montgomery High School - Summer Chamber Concerts Friends of Ely Park 114 Cougar Football Club Project Freedom 115 

Continue reading text version or see original annual report in PDF format above