The Bank of Princeton Announces Second Quarter 2014 Results

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Jul 31, 2014, 12:40 ET

PRINCETON, N.J., July 31, 2014 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results of operations and financial condition for the quarter and six months ended June 30, 2014.

"After a strong start to 2014, we are pleased with our continued momentum in the second quarter," said Edward Dietzler, the Bank's President.

As of June 30, 2014, the Bank's total assets increased to $901 million, an increase of $23.6 million from December 31, 2013. The increase in total assets was the result of the continued growth of the Bank's loan portfolio, which increased $40.5 million, or six percent from December 31, 2013. The increase in loans was partially offset by a decrease in investment securities.

For the quarter ended June 30, 2014, net income was $2.0 million, a decrease of three percent from the same period in 2013. Basic earnings per common share were $0.44, compared to $0.45 in the same period in 2013. Diluted earnings per common share were $0.39 for the quarter ended June 30, 2014 compared to $0.45 for the same period in 2013. While net interest income increased for the quarter ended June 30, 2014 compared to the prior year, these increases were offset by an increase in non-interest expense.

For the six months ended June 30, 2014, net income was $4.0 million, a decrease of one percent from the same period in 2013. Basic earnings per common share were $0.88, consistent with the same period in 2013. Diluted earnings per common share were $0.78 for the six months ended June 30, 2014 compared to $0.87 for the same period in 2013. The increases in net interest income and non-interest income for the six months ended June 30, 2014 compared to the prior year were offset by an increase in non-interest expense.

Steve Distler, the Bank's vice-chairman, observed that, "despite continued competition from other community banks, the scale and breadth of our lenders has allowed us to develop an expanding loan pipeline, the results of which will be very evident in the second half of the year."

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, Pennsylvania 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 value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; the Bank's ability to satisfy the requirements of the FDIC consent order entered into on January 30, 2014 and other regulatory requirements applicable to the Bank; 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)

	June 30, 2014	December 31, 2013	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 29,384	$ 27,425	$ 1,959	7%
Investment securities	170,976	193,737	(22,761)	-12%
Loans receivable, net of allowance for loan losses of $9,112 and $8,493 at June 30, 2014 and December 31, 2013, respectively	665,848	625,340	40,508	6%
Other assets	34,865	30,926	3,939	13%
TOTAL ASSETS	$ 901,073	$ 877,428	$ 23,645	3%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 778,393	$ 749,010	$ 29,383	4%
Borrowings	45,461	60,412	(14,951)	-25%
Other liabilities	5,060	3,774	1,286	34%
TOTAL LIABILITIES	828,914	813,196	15,718	2%

TOTAL STOCKHOLDERS' EQUITY	72,159	64,232	7,927	12%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 901,073	$ 877,428	$ 23,645	3%

Book value per common share	$ 15.76	$ 14.03	$ 1.73	12%

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

	Three Months Ended
	June 30, 2014	June 30, 2013	$ Change	% Change
Interest income	$ 10,042	$ 9,041	$ 1,001	11%
Interest expense	1,755	1,765	(10)	-1%
Net interest income	8,287	7,276	1,011	14%
Provision for loan losses	371	513	(142)	-28%
Net interest income after provision	7,916	6,763	1,153	17%
Non-interest income	633	693	(60)	-9%
Non-interest expense	5,784	4,631	1,153	25%
Income before income taxes	2,765	2,825	(60)	-2%
Income taxes	762	755	7	1%
Net income	$ 2,003	$ 2,070	$ (67)	-3%

Earnings per share - Basic	$ 0.44	$ 0.45	$ (0.01)	-2%
Earnings per share - Diluted	$ 0.39	$ 0.45	$ (0.06)	-13%

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

	Six Months Ended
	June 30, 2014	June 30, 2013	$ Change	% Change
Interest income	$ 19,736	$ 17,931	$ 1,805	10%
Interest expense	3,515	3,508	7	0%
Net interest income	16,221	14,423	1,798	12%
Provision for loan losses	623	597	26	4%
Net interest income after provision	15,598	13,826	1,772	13%
Non-interest income	1,185	1,082	103	10%
Non-interest expense	11,242	9,315	1,927	21%
Income before income taxes	5,541	5,593	(52)	-1%
Income taxes	1,528	1,543	(15)	-1%
Net income	$ 4,013	$ 4,050	$ (37)	-1%

Earnings per share - Basic	$ 0.88	$ 0.88	$ -	0%
Earnings per share - Diluted	$ 0.78	$ 0.87	$ (0.09)	-10%