The Bank of Princeton Announces Second Quarter 2016 Results

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Jul 29, 2016, 01:17 ET

PRINCETON, N.J., July 29, 2016 /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, 2016.

"In the second quarter, we continued to deliver consistent, high-level performance," said Edward Dietzler, the Bank's President. He added, "We continue to be excited about the merger with Investors Bank and are moving forward to obtain the necessary approvals to close the transaction."

As of June 30, 2016, the Bank's total assets of $1.0 billion were relatively unchanged from December 31, 2015. The $12.2 million increase in the Bank's loan portfolio was more than offset by the $18.6 million decrease in the securities portfolio. Total deposits increased by $23.0 million while borrowings decreased by $38.8 million.

For the quarter ended June 30, 2016, net income was $3.0 million, an increase of $0.3 million, or 9 percent, from the same period in 2015. Basic earnings per common share were $0.64, compared to $0.60 in the same period in 2015. Diluted earnings per common share were $0.60 for the quarter ended June 30, 2016 compared to $0.58 for the same period in 2015. Net interest income increased $0.6 million, while provision for loan losses decreased by $0.8 million over the prior year comparable quarter. Non-interest expense and income taxes increased by $1.1 million and $0.2 million, respectively, over the same comparable period.

For the six months ended June 30, 2016, net income was $5.8 million, an increase of $0.5 million, or 10 percent, from the same period in 2015. Basic earnings per common share were $1.23, compared to $1.15 in the same period in 2015. Diluted earnings per common share were $1.17 for the six months ended June 30, 2016 compared to $1.11 for the same period in 2015. Net interest income increased $1.4 million while provision for loan losses decreased by $0.6 million over the prior year comparable period. Non-interest expense and income taxes increased by $1.3 million and $0.4 million, respectively, over the same comparable period.

Director Robert Ridolfi observed that, "The Bank's continued ability to maintain its net interest margin in a flattening yield curve environment is a result of disciplined loan pricing and a terrific accomplishment for The Bank of Princeton team."

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 ten branches in New Jersey, including three in Princeton and others in Hamilton, Pennington, Montgomery, Monroe, Lambertville, Lawrenceville, 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 ("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; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; 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, 2016	December 31, 2015	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 31,386	$ 28,589	$ 2,797	10%
Investment securities	123,246	141,890	(18,644)	-13%
Loans receivable, net of allowance for loan losses of $10,958 and $10,851 at June 30, 2016 and December 31, 2015, respectively	809,275	797,095	12,180	2%
Other assets	42,167	45,748	(3,581)	-8%
TOTAL ASSETS	$ 1,006,074	$ 1,013,322	$ (7,248)	-1%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 812,477	$ 789,433	$ 23,044	3%
Borrowings	90,000	128,800	(38,800)	-30%
Other liabilities	4,979	3,645	1,334	37%
TOTAL LIABILITIES	907,456	921,878	(14,422)	-2%

TOTAL STOCKHOLDERS' EQUITY	98,618	91,444	7,174	8%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,006,074	$ 1,013,322	$ (7,248)	-1%

Book value per common share	$ 20.99	$ 19.51	$ 1.48	8%
Tangible book value per common share¹	$ 20.98	$ 19.50	$ 1.48	8%

¹Reconciliation of non-GAAP tangible book value per common share:
Total stockholders' equity	$ 98,618	$ 91,444
Intangible assets	(35)	(39)
Tangible stockholders' equity	$ 98,583	$ 91,405

Common shares outstanding	4,697,895	4,687,457

Tangible book value per common share	$ 20.98	$ 19.50

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

	Three Months Ended
	June 30, 2016	June 30, 2015	$ Change	% Change
Interest income	$ 11,454	$ 10,614	$ 840	8%
Interest expense	1,944	1,712	232	14%
Net interest income	9,510	8,902	608	7%
Provision for loan losses	(321)	502	(823)	-164%
Net interest income after provision	9,831	8,400	1,431	17%
Non-interest income	683	590	93	16%
Non-interest expense	6,443	5,359	1,084	20%
Income before income taxes	4,071	3,631	440	12%
Income taxes	1,049	866	183	21%
Net Income	$ 3,022	$ 2,765	$ 257	9%

Earnings per share - Basic	$ 0.64	$ 0.60	$ 0.04	7%
Earnings per share - Diluted	$ 0.60	$ 0.58	$ 0.02	4%

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

	Six Months Ended
	June 30, 2016	June 30, 2015	$ Change	% Change
Interest income	$ 22,802	$ 21,146	$ 1,656	8%
Interest expense	3,730	3,454	276	8%
Net interest income	19,072	17,692	1,380	8%
Provision for loan losses	101	735	(634)	-86%
Net interest income after provision	18,971	16,957	2,014	12%
Non-interest income	1,232	1,066	166	16%
Non-interest expense	12,313	11,008	1,305	12%
Income before income taxes	7,890	7,015	875	12%
Income taxes	2,098	1,746	352	20%
Net income	$ 5,792	$ 5,269	$ 523	10%

Earnings per share - Basic	$ 1.23	$ 1.15	$ 0.08	7%
Earnings per share - Diluted	$ 1.17	$ 1.11	$ 0.06	5%