The Bank of Princeton Announces Second Quarter 2015 Results

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Jul 31, 2015, 03:42 ET

PRINCETON, N.J., July 31, 2015 /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, 2015.

"After a strong start to 2015, we are pleased with our continued momentum in the second quarter," said Edward Dietzler, the Bank's President.

As of June 30, 2015, the Bank's total assets increased to $1.0 billion, an increase of $65.6 million from December 31, 2014. The increase in total assets was the result of the continued growth of the Bank's loan portfolio, which increased $37.8 million, or five percent from December 31, 2014.

For the quarter ended June 30, 2015, net income was $2.8 million, an increase of 38 percent from the same period in 2014. Basic earnings per common share were $0.60, compared to $0.44 in the same period in 2014. Diluted earnings per common share were $0.58 for the quarter ended June 30, 2015 compared to $0.39 for the same period in 2014. The increase in net income occurred as both net interest income and non-interest expenses showed improvement over the prior year comparable quarter.

For the six months ended June 30, 2015, net income was $5.3 million, an increase of 31 percent from the same period in 2014. Basic earnings per common share were $1.15, compared to $0.88 in the same period in 2014. Diluted earnings per common share were $1.11 for the six months ended June 30, 2015 compared to $0.78 for the same period in 2014. Similar to our quarter-end results, the increase in net income over the prior year six month period was the result of increased net interest income and decreased non-interest expenses.

Director Robert Ridolfi observed that, "The bank amassed a strong loan pipeline during the early months of 2015. As a consequence, the second quarter benefitted from strong loan funding activity. These loan fundings drove the bank's loan-to-deposit ratio above 90 percent for the first time."

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 (the "Bank") may from time to time make written or oral "forward-looking statements," including statements contained in the Bank's filings with the Federal Deposit Insurance Corporation (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 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 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 our products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; our borrowers' ability to repay their loans; changes in the real estate market that can affect real estate that serves as collateral for some of our loans; the adequacy of our allowance for loan losses and our methodology for determining such allowance; 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; changes in technology or interruptions and breaches in security of our information systems; 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, 2015	December 31, 2014	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 66,609	$ 31,872	$ 34,737	109%
Investment securities	152,783	164,220	(11,437)	-7%
Loans receivable, net of allowance for loan losses of $10,573 and $10,008 at June 30, 2015 and December 31, 2014, respectively	760,925	723,131	37,794	5%
Other assets	40,582	36,039	4,543	13%
TOTAL ASSETS	$ 1,020,899	$ 955,262	$ 65,637	7%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 833,987	$ 847,857	$ (13,870)	-2%
Borrowings	98,800	24,300	74,500	307%
Other liabilities	4,416	4,603	(187)	-4%
TOTAL LIABILITIES	937,203	876,760	60,443	7%

TOTAL STOCKHOLDERS' EQUITY	83,696	78,502	5,194	7%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,020,899	$ 955,262	$ 65,637	7%

Book value per common share	$ 18.17	$ 17.13	$ 1.04	6%

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

	Three Months Ended
	June 30, 2015	June 30, 2014	$ Change	% Change
Interest income	$ 10,614	$ 10,042	$ 572	6%
Interest expense	1,712	1,755	(43)	-2%
Net interest income	8,902	8,287	615	7%
Provision for loan losses	502	371	131	35%
Net interest income after provision	8,400	7,916	484	6%
Non-interest income	590	633	(43)	-7%
Non-interest expense	5,359	5,784	(425)	-7%
Income before income taxes	3,631	2,765	866	31%
Income taxes	866	762	104	14%
Net income	$ 2,765	$ 2,003	$ 762	38%

Earnings per share - Basic	$ 0.60	$ 0.44	$ 0.16	36%
Earnings per share - Diluted	$ 0.58	$ 0.39	$ 0.19	49%

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

	Six Months Ended
	June 30, 2015	June 30, 2014	$ Change	% Change
Interest income	$ 21,146	$ 19,736	$ 1,410	7%
Interest expense	3,454	3,515	(61)	-2%
Net interest income	17,692	16,221	1,471	9%
Provision for loan losses	735	623	112	18%
Net interest income after provision	16,957	15,598	1,359	9%
Non-interest income	1,066	1,185	(119)	-10%
Non-interest expense	11,008	11,242	(234)	-2%
Income before income taxes	7,015	5,541	1,474	27%
Income taxes	1,746	1,528	218	14%
Net income	$ 5,269	$ 4,013	$ 1,256	31%

Earnings per share - Basic	$ 1.15	$ 0.88	$ 0.27	31%
Earnings per share - Diluted	$ 1.11	$ 0.78	$ 0.33	42%