The Bank of Princeton Announces Third Quarter 2014 Results

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Oct 31, 2014, 01:55 ET

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

"Our momentum that began in the first half of 2014 has continued through the third quarter," said Edward Dietzler, the Bank's President.

As of September 30, 2014, the Bank's total assets increased to $936 million, an increase of $58.5 million from December 31, 2013. The increase in total assets was primarily the result of the continued growth of the Bank's loan portfolio, which increased $66.9 million, or 11 percent, from December 31, 2013. The increase in loans was partially offset by a decrease in investment securities.

For the quarter ended September 30, 2014, net income was $2.4 million, an increase of 14 percent from the corresponding period in 2013. Basic earnings per common share were $0.51, compared to $0.45 in the corresponding period in 2013. Diluted earnings per common share were $0.46 for the quarter ended September 30, 2014 compared to $0.44 for the corresponding period in 2013. Net interest income and non-interest income both increased for the quarter ended September 30, 2014 compared to the corresponding quarter of the prior year and these increases were partially offset by an increase in non-interest expense.

For the nine months ended September 30, 2014, net income was $6.4 million, an increase of four percent from the corresponding period in 2013. Basic earnings per common share were $1.39, compared to $1.34 for the corresponding period in 2013. Diluted earnings per common share were $1.24 for the nine months ended September 30, 2014 compared to $1.32 for the corresponding period in 2013. Increases in net interest income and non-interest income for the nine months ended September 30, 2014 compared to the corresponding nine months of the prior year were partially offset by an increase in non-interest expense.

Richard Gillespie, Director, commented, "The Bank of Princeton continues to show an accelerated growth rate compared to banks in our peer group, something that has marked our record since the bank's inception. The Board continues to make every attempt to maximize shareholder value through competitive products and services and quality management and oversight."

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 ("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; 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 Statement of Financial Condition Data
(unaudited)
(dollars in thousands)

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

ASSETS
Cash and cash equivalents	$ 26,356	$ 27,425	$ (1,069)	-4%
Investment securities	179,924	193,737	(13,813)	-7%
Loans receivable, net of allowance for loan losses of $9,473 and $8,493 at September 30, 2014 and December 31, 2013, respectively	692,262	625,340	66,922	11%
Other assets	37,386	30,926	6,460	21%
TOTAL ASSETS	$ 935,928	$ 877,428	$ 58,500	7%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 807,818	$ 749,010	$ 58,808	8%
Borrowings	48,671	60,412	(11,741)	-19%
Other liabilities	4,836	3,774	1,062	28%
TOTAL LIABILITIES	861,325	813,196	48,129	6%

TOTAL STOCKHOLDERS' EQUITY	74,603	64,232	10,371	16%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 935,928	$ 877,428	$ 58,500	7%

Book value per common share	$ 16.29	$ 14.03	$ 2.26	16%

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

	Three Months Ended
	September 30, 2014	September 30, 2013	$ Change	% Change
Interest income	$ 10,241	$ 9,470	$ 771	8%
Interest expense	1,827	1,809	18	1%
Net interest income	8,414	7,661	753	10%
Provision for loan losses	361	577	(216)	-37%
Net interest income after provision	8,053	7,084	969	14%
Non-interest income	708	324	384	119%
Non-interest expense	5,512	4,560	952	21%
Income before income taxes	3,249	2,848	401	14%
Income taxes	896	785	111	14%
Net income	$ 2,353	$ 2,063	$ 290	14%

Earnings per share - Basic	$ 0.51	$ 0.45	$ 0.06	13%
Earnings per share - Diluted	$ 0.46	$ 0.44	$ 0.02	5%

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

	Nine Months Ended
	September 30, 2014	September 30, 2013	$ Change	% Change
Interest income	$ 29,977	$ 27,401	$ 2,576	9%
Interest expense	5,342	5,317	25	0%
Net interest income	24,635	22,084	2,551	12%
Provision for loan losses	984	1,174	(190)	-16%
Net interest income after provision	23,651	20,910	2,741	13%
Non-interest income	1,893	1,406	487	35%
Non-interest expense	16,754	13,875	2,879	21%
Income before income taxes	8,790	8,441	349	4%
Income taxes	2,424	2,328	96	4%
Net income	$ 6,366	$ 6,113	$ 253	4%

Earnings per share - Basic	$ 1.39	$ 1.34	$ 0.05	4%
Earnings per share - Diluted	$ 1.24	$ 1.32	$ (0.08)	-6%