The Bank of Princeton Announces Third Quarter 2016 Results

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Oct 28, 2016, 05:52 ET

PRINCETON, N.J., Oct. 28, 2016 /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, 2016.

"In the third quarter, the Bank's return on average assets (ROA) was 1.22%, which continues to demonstrate the Bank's consistent high-level performance," said Edward Dietzler, the Bank's President. He added, "We continue to proceed with the merger with Investors Bank and are moving forward to obtain the necessary approvals to close the transaction in the first quarter of 2017."

As of September 30, 2016, the Bank's total assets of $1.0 billion were relatively unchanged from December 31, 2015. The $23.6 million increase in the Bank's loan portfolio was more than offset by the $25.8 million decrease in the securities portfolio. Total deposits increased by $76.1 million while borrowings decreased by $91.8 million.

Net income was $3.0 million for the quarter ended September 30, 2016, a slight increase over the same period in 2015. Basic earnings per common share were $0.65, unchanged from the same period in 2015. Diluted earnings per common share were $0.60 for the quarter ended September 30, 2016 compared to $0.63 for the same period in 2015. Net interest income remained flat at $9.2 million and non-interest income was essentially flat as well, while provision for loan losses decreased by $0.4 million over the prior year comparable quarter. Non-interest expense and income taxes increased by $0.4 million and $0.1 million, respectively, over the same comparable period.

For the nine months ended September 30, 2016, net income was $8.8 million, an increase of $0.6 million from the same period in 2015. Basic earnings per common share were $1.88, compared to $1.80 for the same period in 2015. Diluted earnings per common share were $1.76 for the nine months ended September 30, 2016 compared to $1.74 for the same period in 2015. Net interest income increased $1.5 million and non-interest income increased by $0.2 million, while provision for loan losses decreased by $1.1 million over the prior year comparable period. Non-interest expense and income taxes increased by $1.7 million and $0.4 million, respectively, over the same comparable period.

Director Ross Wishnick commented that, "The bank continues to be a strong financial institution in a market with a number of community banks. Its performance consistently ranks in the highest quartiles when comparing its ROA, ROE and other ratios to its competitors locally and to its peers nationally. Its mission continues to be the bank of choice when local families and small business are seeking a financial resource. From the highest offices of the bank through all levels of employees, the bank's approach is to provide friendly, competent and competitive service to all they interact with."

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 Statement of Financial Condition Data
(unaudited)
(dollars in thousands, except per share data)

	September 30, 2016	December 31, 2015	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 32,929	$ 28,589	$ 4,340	15%
Investment securities	116,087	141,890	(25,803)	-18%
Loans receivable, net of allowance for loan losses of $10,818 and $10,851 at September 30, 2016 and December 31, 2015, respectively	820,675	797,095	23,580	3%
Other assets	39,010	45,748	(6,738)	-15%
TOTAL ASSETS	$ 1,008,701	$ 1,013,322	$ (4,621)	0%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 865,560	$ 789,433	$ 76,127	10%
Borrowings	37,000	128,800	(91,800)	-71%
Other liabilities	4,522	3,645	877	24%
TOTAL LIABILITIES	907,082	921,878	(14,796)	-2%

TOTAL STOCKHOLDERS' EQUITY	101,619	91,444	10,175	11%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,008,701	$ 1,013,322	$ (4,621)	0%

Book value per common share	$ 21.62	$ 19.51	$ 2.11	11%
Tangible book value per common share¹	$ 21.61	$ 19.50	$ 2.11	11%

¹Reconciliation of non-GAAP tangible book value per common share:
Total stockholders' equity	$ 101,619	$ 91,444
Intangible assets	(32)	(39)
Tangible stockholders' equity	$ 101,587	$ 91,405

Common shares outstanding	4,700,295	4,687,457

Tangible book value per common share	$ 21.61	$ 19.50

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

	Three Months Ended
	September 30, 2016	September 30, 2015	$ Change	% Change
Interest income	$ 11,255	$ 10,857	$ 398	4%
Interest expense	2,009	1,685	324	19%
Net interest income	9,246	9,172	74	1%
(Credit) provision for loan losses	(142)	298	(440)	-148%
Net interest income after provision	9,388	8,874	514	6%
Non-interest income	468	482	(14)	-3%
Non-interest expense	5,724	5,336	388	7%
Income before income taxes	4,132	4,020	112	3%
Income taxes	1,099	1,018	81	8%
Net Income	$ 3,033	$ 3,002	$ 31	1%

Earnings per share - Basic	$ 0.65	$ 0.65	$ (0.00)	-1%
Earnings per share - Diluted	$ 0.60	$ 0.63	$ (0.03)	-5%

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

	Nine Months Ended
	September 30, 2016	September 30, 2015	$ Change	% Change
Interest income	$ 34,057	$ 32,003	$ 2,054	6%
Interest expense	5,739	5,139	600	12%
Net interest income	28,318	26,864	1,454	5%
(Credit) provision for loan losses	(41)	1,033	(1,074)	-104%
Net interest income after provision	28,359	25,831	2,528	10%
Non-interest income	1,700	1,548	152	10%
Non-interest expense	18,037	16,345	1,692	10%
Income before income taxes	12,022	11,034	988	9%
Income taxes	3,197	2,764	433	16%
Net income	$ 8,825	$ 8,270	$ 555	7%

Earnings per share - Basic	$ 1.88	$ 1.80	$ 0.08	4%
Earnings per share - Diluted	$ 1.76	$ 1.74	$ 0.02	1%