The Bank of Princeton Announces First Quarter 2016 Results

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May 02, 2016, 05:07 ET

PRINCETON, N.J., May 2, 2016 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results for the quarter ended March 31, 2016.

"We are pleased with our continued strong and consistent financial performance," said Edward Dietzler, the Bank's President.

For the quarter ended March 31, 2016, the Bank's total assets increased to $1.04 billion, an increase of $22.2 million from December 31, 2015. The increase in total assets was primarily the result of the continued growth of the Bank's loan portfolio, as loans, net increased $33.1 million, or four percent, from December 31, 2015. The increase in loans was partially offset by a decrease in investment securities. Total liabilities increased by $18.6 million from December 31, 2015, primarily the result of a $30.7 million increase in deposits offset by a $12.6 million decrease in borrowings.

For the quarter ended March 31, 2016, net income was $2.8 million, an increase of 11 percent from the same period in 2015. Basic earnings per common share were $0.59, compared to $0.55 in the same period in 2015. Quarter-end net interest income increased over the same prior year period as a result of the growth in the loan portfolio. Non-interest income increased due to increases in gains on sale of investment securities, income from bank-owned life insurance, and fees and service charges. Non-interest expense increased due to increases in salaries and benefits and professional fees, and were offset by a decrease in deposit insurance assessments for the same comparative periods.

Stephen Shueh, Director and Chair of the Bank's asset/liability-investment committee, stated, "We continue to carefully monitor interest rates. The Bank's strong net interest margin in the face of falling long-term rates is a direct result of planning and a focus on prudent capital allocation."

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)

	March 31, 2016	December 31, 2015	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 28,466	$ 28,589	$ (123)	0%
Investment securities	133,468	141,890	(8,422)	-6%
Loans receivable, net of allowance for loan losses of $11,276 and $10,851 at March 31, 2016 and December 31, 2015, respectively	830,238	797,095	33,143	4%
Other assets	43,317	45,748	(2,431)	-5%
TOTAL ASSETS	$ 1,035,489	$ 1,013,322	$ 22,167	2%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 820,103	$ 789,433	$ 30,670	4%
Borrowings	116,200	128,800	(12,600)	-10%
Other liabilities	4,183	3,645	538	15%
TOTAL LIABILITIES	940,486	921,878	18,608	2%

TOTAL STOCKHOLDERS' EQUITY	95,003	91,444	3,559	4%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,035,489	$ 1,013,322	$ 22,167	2%

Book value per common share	$ 20.27	$ 19.51	$ 0.76	4%
Tangible book value per common share¹	$ 20.26	$ 19.50	$ 0.76	4%

¹Reconciliation of non-GAAP tangible book value per common share:
Total stockholders' equity	$ 95,003	$ 91,444
Intangible assets	(37)	(39)
Tangible stockholders' equity	$ 94,966	$ 91,405

Common shares outstanding	4,687,457	4,687,457

Tangible book value per common share	$ 20.26	$ 19.50

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

	Three Months Ended
	March 31, 2016	March 31, 2015	$ Change	% Change
Interest income	$ 11,348	$ 10,532	$ 816	8%
Interest expense	1,786	1,742	44	3%
Net interest income	9,562	8,790	772	9%
Provision for loan losses	422	233	189	81%
Net interest income after provision	9,140	8,557	583	7%
Non-interest income	549	476	73	15%
Non-interest expense	5,870	5,649	221	4%
Income before income taxes	3,819	3,384	435	13%
Income taxes	1,049	880	169	19%
Net Income	$ 2,770	$ 2,504	$ 266	11%

Earnings per share - Basic	$ 0.59	$ 0.55	$ 0.04	7%
Earnings per share - Diluted	$ 0.56	$ 0.53	$ 0.03	6%