The Bank of Princeton Announces Third Quarter 2012 Results

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Oct 19, 2012, 02:42 ET

PRINCETON, N.J., Oct. 19, 2012 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results for the quarter and nine months ended September 30, 2012.

Third quarter 2012 net income was $1.8 million, or $0.39 basic earnings per common share
Net income for the nine months ended September 30, 2012 was $4.3 million, or $0.94 basic earnings per share.
Total deposits increased $48.5 million, or eight percent, from December 31, 2011
Net loans receivable increased $97.3 million, or 24 percent, from December 31, 2011

"Our third quarter results continued to build on the momentum we established in the first half of the year," said Edward Dietzler, the Bank's President.

For the quarter ended September 30, 2012, net income was $1.8 million, an increase of $1.2 million, or 189 percent, from the same period in 2011. Basic earnings per common share were $0.39, an increase of $0.23 from the same period in 2011. The increase in net income was primarily attributable to a 56 percent increase in net interest income after provision for loan losses for the quarter ended September 30, 2012 compared to the same period in the prior year.

For the nine months ended September 30, 2012, net income was $4.3 million, an increase of $2.3 million, or 117 percent, from the same period in 2011. Basic earnings per common share were $0.94, an increase of $0.44 from the same period in 2011. The increase in net income was primarily attributable to a 46 percent increase in net interest income after provision for loan losses for the nine months ended September 30, 2012 compared to the same period in the prior year.

The Bank's total assets increased to $750.0 million at September 30, 2012, an increase of $85.1 million, or 13 percent, from December 31, 2011. Additionally, total deposits increased to $644.1 million at September 30, 2012, an eight percent increase from the prior year end. The growth in assets and deposits was the result of continuing organic growth through the Bank's existing branch network as well as the addition of one new branch during the quarter ended September 30, 2012.

"We are thrilled to introduce The Bank of Princeton and its style of community banking to new markets," stated Richard Gillespie, Board Member. "Our focus remains on building relationships and providing personalized customer service. It is exciting and rewarding to offer both traditional and electronic banking options to our consumers and business clients. These options make The Bank of Princeton competitive and convenient while supporting a wider demographic," added Gillespie. "The Board members are extremely pleased with the opening of our newest branch location at 1 Spring Street in New Brunswick. Successfully generating over $4 million in deposits after one month in operation is a significant accomplishment. Additionally, we are looking forward to our expansion into Chinatown in Philadelphia late in the fourth quarter 2012," remarked Gillespie as Arch Street in Philadelphia is expected to become the thirteenth branch location for The Bank of Princeton.

About The Bank of Princeton
The Bank of Princeton is a community bank founded in 2007, and has been profitable since 2009. It was recently named one of New Jersey's 50 Fastest Growing Companies by NJBIZ, for the second year in a row. It 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 Township, 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.

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; credit risk associated with the Bank's lending activities; risks relating to the Bank's significant real estate collateral and the real estate market; 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 impact of changes in applicable laws and regulations; 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 may be required by applicable law or regulation.

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

	September 30, 2012	December 31, 2011	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 17,593	$ 59,215	$(41,622)	-70%
Investment securities	203,595	177,237	26,358	15%
Loans receivable, net of allowance for loan losses of $6,650 and $5,362 at June 30, 2012 and December 31, 2011, respectively	503,147	405,861	97,286	24%
Bank-owned life insurance	8,847	8,639	208	2%
Other assets	16,805	13,919	2,886	21%
TOTAL ASSETS	$ 749,987	$ 664,871	$ 85,116	13%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 644,060	$ 595,573	$ 48,487	8%
Borrowings	39,694	11,344	28,350	250%
Accrued interest payable and other liabilities	5,192	3,636	1,556	43%
TOTAL LIABILITIES	688,946	610,553	78,393	13%

TOTAL STOCKHOLDERS' EQUITY	61,041	54,318	6,723	12%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 749,987	$ 664,871	$ 85,116	13%

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

	Three Months Ended
	September 30, 2012	September 30, 2011	$ Change	% Change
Interest income	$ 8,818	$ 6,598	$ 2,220	34%
Interest expense	1,772	1,811	(39)	-2%
Net interest income	7,046	4,787	2,259	47%
Provision for loan losses	392	525	(133)	-25%
Net interest income after provision	6,654	4,262	2,392	56%
Non-interest income	463	540	(77)	-14%
Non-interest expense	4,457	3,915	542	14%
Income before income taxes	2,660	887	1,773	200%
Income taxes	853	261	592	227%
Net Income	$ 1,807	$ 626	$ 1,181	189%

Earnings per share - Basic	$ 0.39	$ 0.16	$ 0.23	144%
Earnings per share - Diluted	$ 0.39	$ 0.15	$ 0.24	160%

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

	Nine Months Ended
	September 30, 2012	September 30, 2011	$ Change	% Change
Interest income	$ 24,924	$ 18,387	$ 6,537	36%
Interest expense	5,478	5,200	278	5%
Net interest income	19,446	13,187	6,259	47%
Provision for loan losses	1,661	1,008	653	65%
Net interest income after provision	17,785	12,179	5,606	46%
Non-interest income	1,449	1,655	(206)	-12%
Non-interest expense	12,869	10,859	2,010	19%
Income before income taxes	6,365	2,975	3,390	114%
Income taxes	2,041	979	1,062	108%
Net Income	$ 4,324	$ 1,996	$ 2,328	117%

Earnings per share - Basic	$ 0.94	$ 0.50	$ 0.44	88%
Earnings per share - Diluted	$ 0.93	$ 0.50	$ 0.43	86%