2022 ANNUAL REPORT
Our growing community
is expanding into a greater region.
109
Table of Contents
Letter to the Shareholders.................................................i -ii
2022 Form 10-K .............................................................................1
Who We Are.............................................................................. 105
Our growing community
is expanding into a greater region.
A Successful 2022
We have expanded our communities in
New Jersey and Pennsylvania, regionally.
The Bank of Princeton is approaching its 16th year of
operation, and continues its success by focusing on
growth – personal and business – with a priority on
customer satisfaction. The Bank’s strong capital position
provides the opportunity for future organic growth,
as well as the ability to take advantage of acquisition
opportunities such as local and regional communities.
Our mission stands strong, as we continue to grow
with a foothold on community service.
Dear Fellow Shareholders,
The Bank of Princeton dealt with many challenges during the year,
including the impact of the economy, which had some residual effects
from the pandemic of 2019. In addition, rising inflation and a volatile
interest rate market which impacted our net interest margin. Despite
these challenges, the Bank reached its strategic and financial goals
with exceptional financial performance and sustained credit quality.
The Bank completed a successful year with earnings of $26.5 million,
or $4.11 per diluted common share, representing a 24.5% increase over
2021. Total assets stood at $1.6 billion at year end. Loans grew $35.2
million during 2022. These results, as well as increasing the quarterly
cash dividend to $0.25 per share (from $0.18 per share in 2021),
completing a second stock buy-back program, and controlled prudent
loan growth, aided the Bank in increasing shareholder value.
The Bank celebrated its 15th year of operation and continues its
success by staying the course with its original core mission. That is,
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.
Notable Highlights for 2022
• Our net interest margin was $4.41% for 2022, an increase of 39
basis points over 2021.
• The Bank increased its quarterly dividend 39% to $0.25 per share.
The Bank announced an increase to $0.30 per share for the 1st
quarter of 2023.
• The Bank announced in March its intent to form Princeton
Bancorp, Inc., a bank holding company, which would allow for
increased flexibility to pursue strategic opportunities to drive
long-term growth. This was completed in January 2023.
Richard J. Gillespie
Chairman
of the Board
Edward J. Dietzler
President
Chief Executive Officer
i
ii
Dear Fellow Shareholders,
2022
ANNUAL
REPORT
“The Board is proud both
of the management
team and staff that
delivered our best
year ever.”
Richard J. Gillespie
“I am extremely pleased
with the Bank’s financial
performance in 2022.
Our team at The Bank of
Princeton continues to
deliver strong performance
and the highest level of
customer service, while
at the same time making
significant improvements
in our products and
services.”
Edward J. Dietzler
• In October, the Bank announced that it had entered into
a definitive agreement to acquire Elkins Park, PA based
Noah Bank, expanding the Bank’s footprint to northern
New Jersey & New York City.
• Initiated and completed a second 5% stock repurchase
program during 2022, with the intent to maximize shareholder
value by enhancing future periods’ earnings-per-share and
return-on-equity without dilution.
• The Bank launched NotifiAlerts and CardCentral, two online
banking and mobile banking app services that provide real-time
account activity alerts and the ability to monitor all bank debit/
credit cards from one location.
The Bank believes that to stay competitive in the community
banking market it must continue to make significant investments
in digital technologies that allow our customers to remotely access
the many Bank products and services, as well as adding protection
against cyber fraud and other threats. In addition, while our existing
clients can benefit from the convenience of this technology, it also
allows the Bank to be competitive in attracting new consumer and
business customers within our footprint and surrounding market
areas.
The Board and Management stand committed to providing
exceptional customer service paralleled with strong partnerships
in the communities we serve. We are proud of our employees who
have successfully responded to the challenges of 2022 to deliver
our most profitable year ever.
i
ii
2022
Financial
Reports
105
The Bank of Princeton
The Bank of Princeton
The following table presents a summary of our allowance for loan losses and nonaccrual loans by total loans and a summary
of net charge-offs by loan segments:
Allowance for loan losses to total loans outstanding:
Allowance for loan losses
Total loans outstanding
Nonaccrual loans
Allowance for loan losses to nonaccrual loans
Nonaccrual loans to total loans outstanding
Net charge-offs during the period to average loans
outstanding
Commercial real estate
Net charge-offs
Average amount outstanding
Commercial and industrial
Net charge-offs
Average amount outstanding
Construction
Net charge-offs
Average amount outstanding
Residential first-lien
Net charge-offs
Average amount outstanding
Home equity/consumer
Net charge-offs
Average amount outstanding
PPP
Net charge-offs
Average amount outstanding
Total Loans
Net charge-offs
Average amount outstanding
As of and for Year Ended
December 31,
2022
2021
(Dollars in thousands)
1.20%
16,461
1,372,824
266
6188.3%
0.02%
0.05%
459
850,192
0.00%
-
29,562
0.02%
100
416,508
0.00%
-
46,379
0.00%
-
7,575
0.00%
-
25,285
0.04%
559
1,375,501
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1.24%
16,620
1,340,448
1,175
1414.5%
0.09%
0.26%
2,075
785,379
2.43%
957
39,329
0.00%
-
335,416
0.00%
-
55,230
0.00%
-
9,133
0.00%
-
157,140
0.22%
3,032
1,381,626
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
The allowance for loan losses decreased $159 thousand, or 1.0%, to $16.5 million at December 31, 2022. Changes between
loan segments were mainly a result of charge-offs during the year ended December 31, 2022. The allowance for loan losses decreased
as a result of the decrease in historical loss rate from December 31, 2021 to at December 31, 2022. The decrease was partially offset by
an increase in qualitative factors from 2021 to 2022.
Our allowance for loan losses is allocated to the various segments of our portfolio identified above. The unallocated component
of the allowance for loan losses is maintained to cover uncertainties that could affect our estimate of probable losses. The unallocated
component reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific
and general losses in the portfolio. Reductions or additions to the allowance charged to operations are the result of applying our
allowance methodology to the existing loan portfolio.
Average Balance Sheets. The following table sets forth average balance sheets, yields and costs, and certain other information
for the years indicated. The average yields and costs of funds shown are derived by dividing income or expense by the daily average
balance of assets or liabilities, respectively, for the periods presented. Net loan fees of $5.2 million and $9.2 million were recorded for
twelve months ended December 31, 20`22 and 2021, respectively. Nonaccrual loans are included in the average balance of loans
receivable, net for all periods presented. No tax-equivalent adjustments have been made.
How the Critical Audit Matter was addressed in the Audit
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion
on the financial statements. These procedures included tests of the following:
(cid:220) Management’s determination of general reserves, including determination of historical loss experience and qualitative
adjustments to historical loss experience.
The accuracy of management’s calculation of the allowance for loan losses, including relevant internal controls.
(cid:220)
We have served as the Bank's auditor since 2021.
/s/ Wolf & Company, P.C.
Boston, Massachusetts
March 24, 2023
Note 14 – Fair Value Measurements and Disclosure (Continued)
Other real estate owned (generally carried at fair value)
Other real estate owned is adjusted to fair value, less estimated selling costs, upon transfer of loans to other real estate
owned. Subsequently, other real estate owned is carried at the lower of carrying value or fair value less cost to
sell. Fair value is based upon independent market prices, appraised values of the collateral or management’s
estimation of the value of the collateral. The discount adjustment from the appraised value is a significant
unobservable input in the determination of the fair value for other real estate owned. These assets are included as
Level 3 fair values.
Loans Receivable, net
The fair value of loans receivable, net is based on discounted cash flow methodologies for which the determination of
fair value may require significant management judgement.
Deposits
The fair value of deposits is based on discounted cash flow methodologies for which the determination of fair value
may require significant management judgement.
Borrowings
Borrowings held by the Bank that are overnight, the carrying value is deemed to be its approximate fair value.
Restricted investment in bank stock and accrued interest receivable and accrued interest payable
Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value
of anticipated future business. The fair value has not been estimated for assets and liabilities that are not considered
financial instruments.
The carrying amounts and estimated fair value of financial instruments are as follows:
Level 2
Level 3
Financial Assets:
Cash and cash equivalents
Securities AFS
Securities HTM
Loans receivable, net
Restricted bank stock
Accrued interest receivable
December 31, 2022
Carrying
Amount
Estimated
Fair Value
$
53,351
5
83,402
88
2012
1,353,907
1
1,742
4
4,756
$
53,351
5
83,402
88
2002
1,347,137
1
1,742
4
4,756
Level 1
(In thousands)
53,351
$
5
--
--
--
--
--
Note 14 – Fair Value Measurements and Disclosure (Continued)
$
-
-
81,341
8
20022
--
1,742
4,756
4
Financial Liabilities
The carrying amounts and estimated fair value of financial instruments are as follows:
1,347,730
10,000
1
1,027
Deposits
Borrowings
Accrued interest payable
1,225,087
10,000
1
1,027
--
--
--
1,225,087
10,000
1
1,027
Limitations
$
-
-
2,061
2
--
1,347,137
1
--
--
--
--
--
10.13 (Q) 2020 Management Incentive Plan*
10.14 (R) Dividend Reinvestment and Stock Purchase Plan
10.15 (S) Supplemental Executive Retirement Plan dated July 30, 2021 for the benefit of Edward J. Dietzler and
21.1
31.1
31.2
32.1
Daniel J. O’Donnell
Subsidiaries of the Registrant
Rule 13a-14(a) Certification of the Principal Executive Officer
Rule 13a-14(a) Certification of the Principal Financial Officer
Section 1350 Certifications
* Management contract or compensatory plan, contract or arrangement.
Management contract or compensatory plan, contract or arrangement.
(A) Incorporated by reference to Exhibit 3.1 to registrant’s Current Report on Form 8-K, filed with the SEC on
September 2, 2022
(B) Incorporated by reference to Exhibit 3.1(ii) to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(C) Incorporated by reference to Exhibit 4.1 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022 (D) Incorporated by reference to Exhibit 4.1 to registrant’s Current Report
on Form 8-K12B, filed with the SEC on January 10, 2023.
(E) Incorporated by reference to Exhibit 10.1 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(F) Incorporated by reference to Exhibit 10.2 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(G) Incorporated by reference to Exhibit 10.3 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(H) Incorporated by reference to Exhibit 10.4 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(I)
Incorporated by reference to Exhibit 10.5 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(J)
Incorporated by reference to Exhibit 10.6 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(K)
Incorporated by reference to Exhibit 10.7 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(L)
Incorporated by reference to Exhibit 10.8 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(M) Incorporated by reference to Exhibit 10.9 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
(N) Incorporated by reference to Exhibit 10.10 to registrant’s Registration Statement No. 333-263313 of Form S-4EF
filed with the SEC on March 4, 2022.
The Bank of Princeton
104
Who We Are
Board of Directors
2022
Financial
Reports
Richard J. 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
105
Who We Are
Executive Management
Edward J. Dietzler
President
Chief Executive Officer
Daniel J. O’Donnell, Esq.
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
Matthew T. Clark
Executive Vice President
Chief Information Officer
Established in 2007, The Bank of Princeton opened its first branch for business
on the 23rd of April. Since then, the Bank has grown to include twenty-four branch
locations and a comprehensive Operations Center that serve the Mercer, Burlington,
Camden, Gloucester, Hunterdon, Middlesex, Monmouth, Ocean, and Somerset
counties in New Jersey along with four branches in the Montgomery County and
Philadelphia markets in Pennsylvania.
106
107
Our Team
Compliance & Operations
Karen D. Pfeifer, SVP
Angela Bancroft, VP
Jamie Wilson, VP
Michelle Gorda, AVP
Justin Naidoo, AVP
Sandhya Paul, AVP
Facilities
Ryan M. Cavicchio, VP
Finance
Jeffrey T. Hanuscin, SVP
Marie P. Mueller, VP
Rosemary Tumino, AVP
Human Resources
Anna Maria Potter-Miller, SVP
Information Technology
Michael C. Stocklin, SVP
Kyndle E. Alig, VP
John Critelli, VP
Kevin Pierce, VP
Loan Administration
Mary Beth Gorecki, SVP
Denise Youn, SVP
Lukasz Gargas, VP
Michelle Goldstein, VP
Peggyann Lane, VP
Clifford Livingston, VP
Marc Lordi, VP
Amela Muslic, VP
Stanley Plytynski, VP
Steven Beck, AVP
Theresa Harris-Norfleet, AVP
Roseann Kennedy, AVP
Natalya Khandros, AVP
Eileen McBride, AVP
David Mulryne, AVP
Olivia Pyon, AVP
Wanda Szymanski, AVP
Rebecca Vanselous, AVP
Marketing
Stefanie Gryger, AVP
Retail Administration
Karin van Garderen, SVP
Paul Ojeda, VP
Rose Russo, VP
Amy Zuccarello, AVP
Security
Keith R. Bitzel, VP
Commercial Lenders
Paul Bencivengo, SVP
William McCoy, SVP
William McDowell, SVP
Kris Muse, SVP
Duncan Farquhar, VP
Michele Lewis-Fleming, VP
Branch Management
Princeton Region
Henrry Polanco, VP, RRM
Rian Andrews, AVP, Bayard Lane
Wendy J. Evans, AVP, Monroe
Khendra Slawinski, AVP, Montgomery
Darshana Jadav, AVP, Nassau Street
Keisha Patrick-Davey, AVP, New Brunswick
Miriam Colón, AVP, Piscataway
Rhoda Sundhar, AVP, Princeton Junction
Central Region
Nedgine Douge, VP, RRM*
Paul Sabol, AVP, Bordentown
Barbara Brehaut, AVP, Hamilton
Jonathan Collins, AVP, Lambertville
Yvette Windsor, AVP, Lawrenceville
Nathalie Cassion, AVP, Pennington
Lourdes Pagan, AVP, Quakerbridge Road
Southern Region
Kelly Zane, VP, RRM*
Donna Craddock, AVP, Browns Mills
Shannon Bennett, AVP, Chesterfield
Jeralyn H. Lang, AVP, Cream Ridge
Christina Lerro, AVP, Deptford
Jhonatan Castro, AVP, Lakewood
Carole McGuirl, AVP, Sicklerville
Pennsylvania Region
Sera Yu, AVP, RRM*
Rebecca Zheng, AVP, Arch Street
Kyung Nam Kim, AVP, Cheltenham
Chantal Smith, AVP, Chestnut Street
Monica Kyung Ae Song, AVP, North Wales
* Regional Retail Manager
Matthew T. Clark
Executive Vice President
Chief Information Officer
106
107
108
Our growing community
is expanding into a greater region.
200 Club of Mercer County
Adopt A Classroom
Alfa Gallery, The
Alpha Care
American Cancer Society
American Foundation for
Suicide Prevention
Anchor House
Animal Alliance
Arts Council of Princeton
Asian American Chamber
of Commerce of Greater Philadelphia
Bayard Rustin Center for Social Justice
Bordentown Rotary Club
Boys & Girls Clubs of Mercer County
Bridge Academy of New Jersey, The
Calvary Chapel Gloucester County
Campus Philly
Capital Health Foundation
Capital Singers of Trenton
CASA of New Jersey
Catholic Charities Diocese
of Trenton
Central Jersey Housing
Resource Center
Cheltenham Township
Chesterfield Baptist Church
Chesterfield MVP LLC
Chesterfield Township
Children’s Home Society
of New Jersey
Civic League of Greater
New Brunswick
Clarifi
Consolidated Fire Association
Corner House Foundation
Crosswicks Library Company
CYO Bromley Center
Delaware River Steamboat
Floating Classroom, Inc.
Downtown Bordentown
Association
Dress for Success Central New Jersey
Eastern Montgomery County
Chamber of Commerce
Eden Autism Services Foundation
Elijah’s Promise
Erial Little League
Father Center, The
Feeding Middlesex County
Fellowship CrossPoint Church
First Ukrainian Evangelical
Baptist Church
Friends of Abbott Marshlands
Friends of Hopewell Valley Open Space
Friends of Rittenhouse Square
Gilda’s Club South Jersey
Greater Lambertville
Chamber of Commerce
Greater Philadelphia Asian
Social Services Center
Greater Philadelphia Coalition
Against Hunger
Grounds for Sculpture
Habitat for Humanity of Burlington
County and Greater Philadelphia
Habitat for Humanity of
South Central New Jersey, Inc.
Habitat for Humanity Philadelphia
Habitat for Humanity,
Raritan Valley Chapter
Hamilton Area YMCA
Hamilton Educational Foundation
HiTOPS, Inc.
HomeFront
Hopewell Harvest Fair
Hopewell Valley Arts Council
Hopewell Valley Gridiron Club
Hopewell Valley Veterans Association
Hopewell Valley YMCA
Housing Initiatives of Princeton
Indo American Fair
Interfaith Caregivers of
Greater Mercer County
Isles, Inc.
Jewish Family & Children’s Service
of Greater Mercer County
Joint Effort - Princeton
Safe Streets Weekend
Kalmia Club, The
“Those who are
happiest are those
who do the most
for others.”
~Booker T. Washington
Korean American Association
of Greater Philadelphia
Korean American Chamber
of Commerce for Philadelphia
Korean Cultural Foundation
Lambertville Historical Society
Lawrence Township Education
Foundation
Lawrenceville Main Street
Let There Be Health
LifeTies, Inc.
Mainstage Center for the Arts
Meadow View Junior Academy
Meals on Wheels in Greater
New Brunswick
Medina Community Clinic
Mental Health Association
of Monmouth County, The
Mercer County Community College
Foundation
Mercer County Turkey Trot
Mercer Street Friends
Metropolitan Community Churches
Middlesex County Regional
Chamber of Commerce
Mil Al Mission
Mission Fire Company
Moms Helping Moms
Montgomery / Rocky Hill Rotary Club
109
Montgomery Baseball League
Montgomery High School -
Cougar Football Club
Montgomery Township
Fireworks Committee
Morven Museum & Garden
Mount Carmel Guild of Trenton
National Junior Tennis & Learning of Trenton
New Egypt Recreational Baseball
New Hope Celebrates
New Jersey State Theatre
North Hanover Township
Northern Burlington Junior Greyhounds
Athletic Association
Om Parikh Memorial Fund
Penn Asian Senior Services
Pennington Business & Professional
Association
Pennington Day, Inc.
Pennington Public Library
Philabundance
Philadelphia Chinatown
Development Corporation
Piscataway Township
Planned Lifetime Assistance Network of NJ
Plumstead Township
Princeton Area Alumni Association
Princeton Battlefield Society, The
Princeton Community Housing
Princeton Tennis Program
Princeton University Summer
Chamber Concerts
Project Freedom
Puerto Rican Action Board
Rebuilding Together Philadelphia
Robert Wood Johnson University Hospital
Hamilton Foundation
SAVE, A Friend to Homeless Animals
Send Hunger Packing Princeton
Senior Crimestoppers
Society of Young Korean Americans
Sourland Conservancy
South Jersey Dream Center
Special Olympics NJ
Steinert School Fund
Styletainment
Sustainable Princeton
Thomas Edison State University Foundation
Town Clock Community
Development Corporation
Township of Deptford
Township of Gloucester
Township of Pemberton
Trenton Area Soup Kitchen, The
Trenton Catholic Preparatory Academy
Trenton Educational Dance Institute
Trenton Music Makers
United Way of Hunterdon County
USS New Jersey Commissioning Committee
Washington Township Parks & Recreation
Softball Wildcats 16U
West Windsor - Plainsboro
Education Foundation
Women Aware
Woori Center
YMCA Camp Mason
YMCA of Metuchen, Edison,
Woodbridge & South Amboy
ThankYou!
2022 ANNUAL REPORT
thebankofprinceton.com
609.921.1700
Corporate Headquarters
183 Bayard Lane, Princeton, NJ 08540
Operations Center
403 Wall Street, Princeton, NJ 08540
Convenient Locations Throughout
New Jersey and Pennsylvania.
New Jersey
Bayard Lane
183 Bayard Lane
Princeton, NJ 08540
609.847.7300
Bordentown
335 Farnsworth Avenue
Bordentown, NJ 08505
609.291.8200
Browns Mills
101 Pemberton
Browns Mills Road
Browns Mills, NJ 08015
609.893.5540
Chesterfield
305 Bordentown–
Chesterfield Road
Chesterfield, NJ 08515
609.324.1256
Cream Ridge
403 Route 539
Cream Ridge, NJ 08514
609.757.1120
Deptford
1895 Hurffville Road
Sewell, NJ 08080
856.227.9440
Hamilton
339 Route 33
Hamilton, NJ 08619
609.584.0011
Kingston
4422 Route 27
Kingston, NJ 08528
609.454.0333
Princeton Jct.
11 Cranbury Road
Princeton Junction, NJ 08550
609.759.8100
Quakerbridge Rd.
3745 Quakerbridge Road
Hamilton, NJ 08619
609.981.8900
Sicklerville
483 Cross Keys Road
Sicklerville, NJ 08081
856.728.0343
Pennsylvania
Arch St.
921 Arch Street
Philadelphia, PA 19107
215.923.6200
Cheltenham
470 W. Cheltenham Avenue
Philadelphia, PA 19126
215.224.6400
Chestnut St.
1839 Chestnut Street
Philadelphia, PA 19103
215.996.7380
North Wales
1222 Welsh Road
North Wales, PA 19454
215.631.9911
Lakewood
12 America Avenue, 7B
Lakewood, NJ 08701
732.835.7320
Lambertville
10 Bridge Street
Lambertville, NJ 08530
609.397.0333
Lawrenceville
2999 Princeton Pike
Lawrenceville, NJ 08648
609.882.0500
Monroe
1 Rossmoor Drive, Ste 120
Monroe Twp, NJ 08831
609.655.7790
Montgomery
1185 Route 206 North
Princeton, NJ 08540
609.497.0500
Nassau St.
194 Nassau Street
Princeton, NJ 08542
609.921.3311
New Brunswick
1 Spring Street, Ste 102
New Brunswick, NJ 08901
732.993.0066
Pennington
2 Route 31 South
Pennington, NJ 08534
609.730.8500
Piscataway
1642 Stelton Road, Ste 410
Piscataway, NJ 08854
732.743.9500
2022 ANNUAL REPORT