The Bank of Princeton Announces Fourth Quarter and Full-Year 2012 Results

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Jan 31, 2013, 11:44 ET

PRINCETON, N.J., Jan. 31, 2013 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results for the quarter and year ended December 31, 2012.

Fourth Quarter 2012 Net income of $2.0 million, or $0.44 per share
Full-year 2012 Net income of $6.3 million, or $1.38 per share
Total deposits increased $77 million, or 13 percent, from December 31, 2011 to December 31, 2012
Net loans grew $126 million, or 31 percent, from December 31, 2011 to December 31, 2012

"The Bank of Princeton has completed another solid year of growth and earnings," said Edward Dietzler, the Bank's President.

For the quarter ended December 31, 2012, net income was $2.0 million, an increase of $1.2 million, or 143 percent, from the same period in 2011. Earnings per common share were $0.44, an increase of $0.26 from the same period in 2011. The increase in net income was primarily attributable to a 69 percent increase in net interest income after provision for loan losses.

For the year ended December 31, 2012, net income was $6.3 million, an increase of $3.5 million, or 124 percent, from the prior year. Earnings per common share were $1.38, an increase of 100 percent from the prior year. The increase in net income was primarily attributable to a 52 percent increase in net interest income after provision for loan losses.

For the year ended December 31, 2012, the Bank's total assets increased to $769 million, an increase of $104 million, or 16 percent, from December 31, 2011. Additionally, total deposits increased to $672 million, an increase of $77 million, or 13 percent, from December 31, 2011. This was the result of growing the Bank through "de novo" branch openings and organic growth through the Bank's existing branch network. The Bank opened two new branches in 2012, bringing the number of branches to 13 and further strengthening its presence in the central New Jersey and Philadelphia, Pennsylvania areas.

"Our continued success reflects our on-going commitment to our customers and the community we serve," said board member Judith A. Giacin, Chair of the Audit Committee.

About The Bank of Princeton
The Bank of Princeton is a community bank founded in 2007. It was recently named one of New Jersey's 50 Fastest Growing Companies by NJBIZ for the second consecutive year, moving up twelve spots to the third fastest growing company in New Jersey. 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 Township, Lambertville, and New Brunswick. There are also four 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 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 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 success of the Bank in gaining regulatory approval of its products and services, when required; the impact of changes in financial services' laws and regulations (including laws concerning taxes, banking, securities and insurance); 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)

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

ASSETS
Cash and cash equivalents	$ 24,619	$ 59,215	$(34,596)	-58%
Investment securities	186,641	177,237	9,404	5%
Loans receivable, net of allowance for loan losses of $7,033 and $5,362 at December 31, 2012 and 2011, respectively	532,115	405,861	126,254	31%
Bank-owned life insurance	8,918	8,639	279	3%
Other assets	16,710	13,919	2,791	20%
TOTAL ASSETS	$ 769,003	$ 664,871	$104,132	16%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 672,364	$ 595,573	$ 76,791	13%
Borrowings	28,246	11,344	16,902	149%
Other liabilities	6,109	3,636	2,473	68%
TOTAL LIABILITIES	706,719	610,553	96,166	16%

TOTAL STOCKHOLDERS' EQUITY	62,284	54,318	7,966	15%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 769,003	$ 664,871	$104,132	16%

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

	Three Months Ended
	December 31, 2012	December 31, 2011	$ Change	% Change
Interest income	$ 8,749	$ 7,286	$ 1,463	20%
Interest expense	1,776	1,965	(189)	-10%
Net interest income	6,973	5,321	1,652	31%
Provision for loan losses	307	1,369	(1,062)	-78%
Net interest income after provision	6,666	3,952	2,714	69%
Non-interest income	1,135	1,175	(40)	-3%
Non-interest expense	5,170	4,226	944	22%
Income before income taxes	2,631	901	1,730	192%
Income taxes	644	84	560	667%
Net Income	$ 1,987	$ 817	$ 1,170	143%

Earnings per share - Basic	$ 0.44	$ 0.18	$ 0.26	144%
Earnings per share - Diluted	$ 0.43	$ 0.18	$ 0.25	139%

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

	Twelve Months Ended
	December 31, 2012	December 31, 2011	$ Change	% Change
Interest income	$ 33,673	$ 25,673	$ 8,000	31%
Interest expense	7,254	7,165	89	1%
Net interest income	26,419	18,508	7,911	43%
Provision for loan losses	1,968	2,377	(409)	-17%
Net interest income after provision	24,451	16,131	8,320	52%
Non-interest income	2,584	2,830	(246)	-9%
Non-interest expense	18,039	15,085	2,954	20%
Income before income taxes	8,996	3,876	5,120	132%
Income taxes	2,685	1,063	1,622	153%
Net Income	$ 6,311	$ 2,813	$ 3,498	124%

Earnings per share - Basic	$ 1.38	$ 0.69	$ 0.69	100%
Earnings per share - Diluted	$ 1.36	$ 0.68	$ 0.68	100%