New Jersey Pennsylvania Chambers Cheltenham 2018 Annual Report 21 Chambers Street 470 W. Cheltenham Avenue Princeton, NJ 08542 Philadelphia, PA 19126 609.921.6800 215.224.6400 Nassau North Wales 194 Nassau Street 1222 Welsh Road Princeton, NJ 08542 North Wales, PA 19454 Bayard 609.921.3311 215.631.9911 Corporate HQ Montgomery Chinatown 183 Bayard Lane 1185 Route 206 North 921 Arch Street Princeton, NJ 08540 Princeton, NJ 08540 Philadelphia, PA 19107 609.497.0500 215.923.6200 www.thebankofprinceton.com Pennington 609.921.1700 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 Cream Ridge 403 Route 539 Cream Ridge, NJ 08514 609.757.1120 Operations Center 403 Wall Street Princeton, NJ 08540 609.454.0116 Table of Contents

Letter to the Shareholders...... i–ii

2017 Form 10-K ...... 1

Who We Are...... 109 A look back with an eye towards the future.

The Bank of Princeton 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 14 branches with $1.2 billion in total assets.

With an eye towards the future, the expansion of our footprint allows for our community focus to be transported to new markets where our presence also can make a difference.

Bank Wisely. Dear Fellow Shareholders,

The Bank of Princeton (the “Bank”) completed another successful • Promotions offered throughout the year attracted new money, new year with earnings of $14.7 million, or $2.14 per diluted common customers, and expanded existing relationships. The Business share, and total assets reaching $1.2 billion. These results were Money Market promotion yielded additional opportunities that a part of the Bank’s strategic initiative of increasing shareholder attracted business customers and non-profit organizations. value through controlled prudent growth of the Bank’s earning assets. During 2018, the Bank increased net interest income by • The first ever cash dividend was paid to The Bank of Princeton 4.8% or $1.9 million compared to 2017, largely due to the $136.9 shareholders on November 5, 2018. million increase in the average balance of interest-earning assets • The Bank of Princeton opened its 14th branch location on December such as our loans, which increased by $127.9 million from 2018. 10, 2018, in Cream Ridge, New Jersey. This new office extended The Bank has experienced many changes since its opening in 2007, our footprint into the Monmouth and Ocean County markets. when it ended its first year with 3 branches and $66.4 million in • Our 2019 Strategic Plan includes the addition of two new assets, to its current levels of 14 branches with $1.2 billion in total branches; one located in Princeton Junction, New Jersey and assets. The Bank continues its success by staying the course with the second on Quakerbridge Road in Hamilton, New Jersey. its original core mission of targeting the commercial real estate and Edward J. Dietzler small business communities for their lending needs, and catering to Richard Gillespie President • The Bank entered into an agreement to purchase five bank Chairman Chief Executive Officer the local community by offering competitive rates on deposits and branches from Beneficial/WSFS Bank on February 4, 2019. This of the Board getting substantially involved in the community. The Bank’s capital acquisition expands our footprint into Burlington, Gloucester, and position provides a source of strength to accomplish future organic Camden Counties. The deal is expected to close in the middle of Providing a friendly, The Bank’s capital growth and to explore other growth opportunities such as the the 2nd quarter of 2019, subject to customary conditions such as caring, and personalized position provides a acquisition of five Beneficial Bank branches announced in February regulatory approval. of this year. We will continue to concentrate on our markets along banking experience is source of strength to the Route 95 corridor from as far north as New York City and south what differentiates us accomplish future to the extended Philadelphia area. Delivering superior customer service in harmonious, classic style and propels our growth. organic growth and continues to capture our attention and consideration. Providing a Notable Highlights for 2018 friendly, caring, and personalized banking experience is what differ- to explore other growth • Net loans increased $111.2 million to exceed $1.0 billion at entiates us and propels our growth. The expansion of our footprint opportunities. year-end 2018 and reflected a 11.5% increase year over year. allows for our community focus to be transported to new markets where our presence also can make a difference. • An exclusive invitation was extended by Nasdaq Global to participate in the closing bell ceremony on August 21, 2018. This It truly is an exciting time in the evolution of The Bank of Princeton! special recognition celebrated the first anniversary of “BPRN” We remain extremely grateful for the support from our loyal custom- being listed on the Nasdaq as a publicly traded company. ers, community partners, and shareholders.

• In September of 2018, The Bank of Princeton successfully We are dedicated to work together in collaboration with our directors launched a multimedia campaign focusing on “Brand Awareness,” and management teams enriching the personalized banking experience which featured real customers sharing unscripted, candid and maximizing shareholder value. comments based on their genuine experiences.

• The addition of credit cards to our product line provided many new opportunities. The introduction of the mobile deposit feature to The Bank of Princeton’s Mobile App offered additional convenience and flexibility fitting today’s active lifestyles. i ii The Bank of Princeton

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106 107 The Bank of Princeton Who We Are Board of Directors

Richard Gillespie Stephen A. Distler Chairman Vice Chairman

Edward J. Dietzler Ross E. Wishnick President Vice Chairman Chief Executive Officer

Judith A. Giacin Robert N. Ridolfi, Esq.

Stephen K. Shueh Martin Tuchman

108 109 Who We Are Executive Management Marketing Finance Barbara A. Cromwell, SVP Jeffrey T. Hanuscin, VP Edward P. Hassenkamp, VP Human Resources Anna Maria Miller, SVP Commercial Lenders Edward J. Dietzler Daniel J. O’Donnell Arthur M. Birenbaum, SVP, Arch Street President Executive Vice President Retail Administration William McCoy, SVP, New Brunswick Chief Executive Officer Chief Risk Officer Debra L. Von Gonten, VP Kris Muse, SVP, Nassau Street & General Counsel Rose Russo, AVP Paul M. Bencivengo, VP, Hamilton William McDowell, VP, Pennington/Lambertville Information Technology Michele Lewis Fleming, AVP, Chambers Street Jennifer Yoo, AVP, Cheltenham Matthew T. Clark, VP Kyndle E. Alig, AVP Market Managers Henrry Polanco, Bayard Lane George S. Rapp Operations, Compliance Christopher M. Tonkovich Darshana Jadav, Chambers Street Executive Vice President Executive Vice President & Security Paul Sabol, Nassau Street Chief Financial Officer Chief Credit Officer Karen D. Pfeifer, SVP Roseanne Maresma, Montgomery Vincent Auletta, VP Rhoda Sundhar, Pennington Angela Bancroft, VP Nedgine Douge, Hamilton Keith R. Bietzel, VP Wendy J. Evans, Monroe Ronnie Ra, AVP Amy Zuccarello, Lambertville Miriam Colón, New Brunswick Loan Administration Karin van Garderen, Lawrenceville , Cream Ridge Karen A. Collier, SVP Jeralyn H. Lang , Cheltenham David Geyer, SVP Esther Youngsoon Sim , North Wales Stephanie M. Adkins Mary Beth Gorecki, SVP Sera Yu , Arch Street Executive Vice President Stephen R. Helhowski, VP Sokha Eng Chief Lending Officer Michelle Goldstein, VP Amela Muslic, VP Stanley Plytynski, VP Joseph H. Robotin, VP Lana Tremblay, VP Lukasz Gargas, AVP Eleanor Velasquez, AVP Denise Youn, AVP 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 eleven branch locations that serve Mercer, Hunterdon, Middlesex, Somerset, Incorporators Monmouth and Ocean counties in New Jersey along with three branches in the Gregg E. Chaplin Bumsung K. Han Emmett J. Lescroart Robert N. Ridolfi, Esq. Montgomery County and Philadelphia markets of Pennsylvania. Andrew M. Chon John A. Horvath Dennis M. Machulsky James M. Riley Peter M. Crowley Kevin R. Kenyon Casey K. Min Jeffrey H. Sands Today, The Bank of Princeton is comprised of fourteen branch locations and a Stephen A. Distler W. Andrew Krusen, Jr. J. Scott Needham Eric L. Steinfeldt comprehensive Operations Center headquartered in Princeton. Richard Gillespie Janet M. Lasley Henry S. Opatut Ross E. Wishnick

110 111 “The greatness of a community is most accurately measured by the compassionate actions of its members.” Korean American Association Music & Theatre Parents Association of Princeton University – Coretta Scott King of Greater Philadelphia Hopewell Valley Central High School Summer Chamber Concerts Korean Community Center National Association for Korean Schools: Puerto Rican Action Board of Greater Princeton Mid-Atlantic Chapter Robert Wood Johnson Korean Senior Golf Association National Eating Disorders Association Hamilton Foundation Korean United Church of Philadelphia National Junior Tennis & Learning Rocky Hill Fire Department Thank you Lambertville / New Hope Winter Festival of Trenton Ryan’s Quest Lambertville Area Education Foundation New Brunswick City Center SAFE in Hunterdon Lambertville Historical Society New Brunswick Domestic Violence San Felese Lodge to our community Lambertville-West Amwell Response Team Send Hunger Packing Princeton Youth Baseball & Softball Association New Hope Film Festival SERV Behavioral Health Systems LaShir New Hope Historical Society Shad Festival Lawrence Township New Jersey Association of Shad Run partners for helping Lawrence Township Education Foundation Community Providers Society of Saint Vincent de Paul Lawrenceville Main Street Notre Dame High School Solebury Township Historical Society Lawrenceville School Camps, The Om Parikh Memorial Fund Sourland Conservancy Make a Difference. Manna on Main Street Parents Anonymous of New Jersey, Inc. Special Olympics NJ Mary Jacobs Library Foundation Parkinson Alliance, The Spectrum for Living Meals on Wheels of Mercer County Paul Robeson House, The Steinert School Fund: DECA

Advancing Opportunities Daytop New Jersey at Crawford House Hamilton Educational Foundation Mercer Council on Alcoholism PEI Kids Thomas Edison State Alzheimer’s New Jersey Delaware River Steamboat Hamilton Township Economic & Drug Addiction Pennington Business & University Foundation American Foundation for Floating Classroom, Inc.: SPLASH Development Commission Mercer County CYO Professional Association Town Clock Community Suicide Prevention Delaware River Towns Chamber Borough of Highland Park: Mercer County Hispanic Association Pennington Day, Inc. Development Corporation American Heart Association of Commerce & Visitors Bureau, The Highland Park Gives a Hoot Mercer County Turkey Trot Pennington Montessori School Trenton Catholic Academy American Repertory Ballet: Delaware Township Schools, HiTOPS, Inc. Monroe Indians for Civil Action People & Stories / Gente y Cuentos Trenton Circus Squad DANCE POWER Partners in Education HomeFront Middlesex County Regional Philabundance Trenton Educational Dance Institute Arc of Hunterdon County, The Development Corporation for Israel HomeSharing, Inc. Chamber of Commerce Philadelphia Museum of Art: Trinity Church Arts Council of Princeton DoughMain Financial Literacy Foundation Hopewell Harvest Fair MidJersey Chamber of Commerce Young Friends United Way of Hunterdon County Ben Franklin Elementary School Dress for Success Hopewell Valley Arts Council Mid-Summer Marketing Showcase Plainsboro Township Unity Square: Trunk or Treat Big Brothers Big Sisters Central New Jersey - 7 Counties Hopewell Valley Education Foundation Mil Al Mission Police Unity Tour Inc.: Chapter 10 Way of the Cross of Mercer County Eden Autism Services Foundation Hopewell Valley Veterans Association Montgomery / Rocky Hill Rotary Club Princeton Area Alumni Association Widener University Bridge Academy of New Jersey, The Elijah’s Promise Hopewell Valley YMCA Montgomery Baseball League Princeton Battlefield Society, The Womanspace Capital Health Foundation Fal-Rooney Sports Camps & Events Hunterdon County Chamber of Commerce Montgomery Basketball League Princeton Education Foundation Women Aware Capital Region Minority Friendly Sons & Daughters of Hunterdon County YMCA Montgomery Business Association Princeton Family YMCA YMCA of Trenton Chamber of Commerce St. Patrick of Mercer County, The I Believe in Pink Montgomery High School: Princeton Historical Society YWCA Princeton CASA of New Jersey Friends of Ely Park Isles, Inc. Cougar Football Club Princeton Independent Film Festival Catholic Charities, Diocese of Trenton Friends of Hopewell Valley Open Space Jason Fuhr Memorial Charity Montgomery Township Economic Princeton Little League Center for Educational Advancement Friends of Princeton Charter School Golf Tournament & Scholarship Fund Development Commission Princeton Merchants Association Chapin School Gift of Life Donor Program Jewish Center of Princeton, The Montgomery Township Education Princeton Nursery School Children’s Home Society Good Grief Jewish Family & Children’s Service Foundation Princeton Pro Musica of New Jersey, The Greater Philadelphia Asian of Greater Mercer County Montgomery Township Princeton Public Library Christine’s Hope for Kids Foundation Social Services Center Joint Effort: Fireworks Committee Princeton Recreation Department Communiversity Greater Philadelphia Food Bank Princeton Safe Streets Weekend Montgomery Woman’s Club Princeton Regional Chamber of Commerce Corner House Foundation Grice Middle School Kalmia Club, The Mount Carmel Guild of Trenton Princeton Senior Resource Center Cranbury Lions Club Grounds for Sculpture Kidsbridge Mount Olive Baptist Church Princeton Symphony Orchestra

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