The Bank of Princeton Announces Fourth Quarter and Full-Year 2013 Results

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Feb 06, 2014, 12:13 ET

PRINCETON, N.J., Feb. 6, 2014 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results for the fourth quarter and twelve months ended December 31, 2013.

As of December 31, 2013, the Bank's total assets increased to $877.4 million, an increase of $108.4 million, or 14 percent, from December 31, 2012. Loans increased to $625.3 million, an increase of $93.2 million, or 18%, while total deposits increased to $749.0 million, an increase of $76.6 million, or 11 percent, from December 31, 2012. The Bank's deposit growth was the result of organic growth from the Bank's existing branch network.

Net income for the twelve months ended December 31, 2013 was $8.8 million, with $1.92 basic earnings per common share and $1.90 diluted earnings per common share.

"We continue to produce solid financial results and are encouraged with our 2013 fourth quarter and full-year earnings," said Edward Dietzler, the Bank's President.

Full-year 2013 net income increased $2.5 million, or 39 percent, from the same period in 2012. Basic earnings per common share increased $0.54, or 39% from the same period in 2012. The increase in full-year 2013 net income was primarily attributable to a 14 percent increase in net interest income after provision for loan losses compared to the same period in the prior year.

Judith Giacin, Chair of the Audit Committee, stated, "Today, more than ever, people have many choices for their personal and business banking. Our continued, dynamic growth in both assets and earnings indicates that our customer-centric banking model is meeting the needs of the communities we serve. We are grateful for the support of our customers."

The Bank also noted that it and the Federal Deposit Insurance Corporation agreed to a Stipulation and Consent to the Issuance of a Consent Order. The Consent Order, which was issued January 30, 2014, requires the Bank to strengthen its Bank Secrecy Act/anti-money laundering program and its internal audit function, and to address other related matters. The Bank consented to the issuance of the Consent Order without admitting any charges of unsafe or unsound banking practices or violations of law or regulation, and the Consent Order does not include any monetary penalties or restrictions on growth.

About The Bank of Princeton
The Bank of Princeton is a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with nine branches in New Jersey, including three in Princeton and others in Hamilton, Pennington, Montgomery, Monroe, Lambertville, and New Brunswick. There are also three branches in the Philadelphia area, operating as MoreBank, a division of The Bank of Princeton. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation (the "FDIC").

Forward-Looking Statements
The Bank of Princeton may from time to time make written or oral "forward-looking statements," including statements contained in the Bank's filings with the FDIC, in its reports to stockholders and in other communications by the Bank (including this press release), which are made in good faith by the Bank pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Bank's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Bank's control). The following factors, among others, could cause the Bank's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the timely development of and acceptance of new products and services of the Bank and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; the willingness of users to substitute competitors' products and services for the Bank's products and services; the success of the Bank in gaining regulatory approval of its products and services, when required; the impact of changes in financial services' laws and regulatory requirements, including laws concerning taxes, banking, securities and insurance and requirements arising out of our supervision by banking regulators; technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Bank at managing the risks involved in the foregoing.

The Bank cautions that the foregoing list of important factors is not exclusive. The Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Bank, except as required by applicable law or regulation.

The Bank of Princeton
Summary Statements of Financial Condition Data
(unaudited)
(dollars in thousands)

	December 31, 2013	December 31, 2012	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 27,425	$ 24,619	$ 2,806	11%
Investment securities	193,737	186,641	7,096	4%
Loans receivable, net of allowance for loan losses of $8,493 and $7,033 at December 31, 2013 and 2012, respectively	625,340	532,115	93,225	18%
Other assets	30,926	25,627	5,299	21%
TOTAL ASSETS	$ 877,428	$ 769,002	$108,426	14%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 749,010	$ 672,364	$ 76,646	11%
Borrowings	60,412	28,246	32,166	114%
Other liabilities	3,764	6,109	(2,345)	-38%
TOTAL LIABILITIES	813,186	706,719	106,467	15%

TOTAL STOCKHOLDERS' EQUITY	64,242	62,283	1,959	3%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 877,428	$ 769,002	$108,426	14%

The Bank of Princeton
Summary Statement of Operations Data
(unaudited)
(dollars in thousands, except per share data)

	Three Months Ended
	December 31, 2013	December 31, 2012	$ Change	% Change
Interest income	$ 9,712	$ 8,749	$ 963	11%
Interest expense	1,798	1,776	22	1%
Net interest income	7,914	6,973	941	13%
Provision for loan losses	858	307	551	179%
Net interest income after provision	7,056	6,666	390	6%
Non-interest income	1,269	1,135	134	12%
Non-interest expense	4,990	5,170	(180)	-3%
Income before income taxes	3,335	2,631	704	27%
Income taxes	647	644	3	0%
Net income	$ 2,688	$ 1,987	$ 701	35%

Earnings per common share - Basic	$ 0.59	$ 0.44	$ 0.15	34%
Earnings per common share - Diluted	$ 0.58	$ 0.43	$ 0.15	35%

The Bank of Princeton
Summary Statement of Operations Data
(unaudited)
(dollars in thousands, except per share data)

	Year Ended
	December 31, 2013	December 31, 2012	$ Change	% Change
Interest income	$ 37,113	$ 33,673	$ 3,440	10%
Interest expense	7,115	7,254	(139)	-2%
Net interest income	29,998	26,419	3,579	14%
Provision for loan losses	2,032	1,968	64	3%
Net interest income after provision	27,966	24,451	3,515	14%
Non-interest income	2,675	2,584	91	4%
Non-interest expense	18,865	18,039	826	5%
Income before income taxes	11,776	8,996	2,780	31%
Income taxes	2,975	2,685	290	11%
Net income	$ 8,801	$ 6,311	$ 2,490	39%

Earnings per common share - Basic	$ 1.92	$ 1.38	$ 0.54	39%
Earnings per common share - Diluted	$ 1.90	$ 1.36	$ 0.54	40%