The Bank of Princeton Announces Fourth Quarter and Full-Year 2014 Results

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Jan 30, 2015, 03:35 ET

PRINCETON, N.J., Jan. 30, 2015 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results of operations and financial condition for the three and twelve months ended December 31, 2014.

"The strength of our balance sheet, coupled with our disciplined growth, was illustrated in the Bank's record performance for 2014," said Edward Dietzler, the Bank's President.

As of December 31, 2014, the Bank's total assets increased to $955 million, an increase of $77.8 million, or nine percent, from December 31, 2013. The increase in total assets was primarily the result of the continued growth of the Bank's loan portfolio, which, net of an allowance for losses, increased $97.8 million, or 16 percent, from December 31, 2013. The increase in loans was partially offset by a decrease in investment securities. Deposits increased by $98.8 million, or 13 percent, over the same period, a result of organic growth from the Bank's existing branch network.

Full-year 2014 net income was $9.0 million, an increase of $0.2 million, or two percent, from full-year 2013 net income. Basic earnings per common share were $1.97, an increase of $0.05 per share from 2013. Diluted earnings per common share were $1.92, an increase of $0.02 per share from 2013. Net interest income increased $3.4 million, or 11 percent, from 2013. Non-interest expense increased $3.5 million, or 19 percent. Book value per share was $17.13 at December 31, 2014, an increase of $3.10 per share, or 22 percent, from December 31, 2013.

For the three months ended December 31, 2014, net income was $2.6 million, a slight decrease from the corresponding period in 2013. Basic earnings per common share were $0.58, compared to $0.59 for the corresponding period in 2013. Diluted earnings per common share were $0.56 for the three months ended December 31, 2014 compared to $0.58 for the corresponding period in 2013. An increase in net interest income for the three months ended December 31, 2014 was offset by a decrease in non-interest income and an increase in non-interest expense compared to the same period of the prior year.

Ross Wishnick, the Bank's vice-chairman, commented that, "The Bank of Princeton remains committed to the communities it serves. From the day the Bank opened it used its advertising dollars to support the many community service organizations operating in those communities. This local support, in addition to financing many local businesses, is just one more reason that the Bank has thrived and outperformed its peers."

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.

Contact Barbara Cromwell
609.454.0133
[email protected]

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

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

ASSETS
Cash and cash equivalents	$ 31,872	$ 27,425	$ 4,447	16%
Investment securities	164,220	193,737	(29,517)	-15%
Loans receivable, net of allowance for loan losses of $10,008 and $8,493 at December 31, 2014 and 2013, respectively	723,131	625,340	97,791	16%
Other assets	36,039	30,926	5,113	17%
TOTAL ASSETS	$ 955,262	$ 877,428	$ 77,834	9%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 847,857	$ 749,010	$ 98,847	13%
Borrowings	24,300	60,412	(36,112)	-60%
Other liabilities	4,603	3,774	829	22%
TOTAL LIABILITIES	876,760	813,196	63,564	8%

TOTAL STOCKHOLDERS' EQUITY	78,502	64,232	14,270	22%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 955,262	$ 877,428	$ 77,834	9%

Book value per common share	$ 17.13	$ 14.03	$ 3.10	22%

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

	Year Ended
	December 31, 2014	December 31, 2013	$ Change	% Change
Interest income	$ 40,567	$ 37,113	$ 3,454	9%
Interest expense	7,157	7,115	42	1%
Net interest income	33,410	29,998	3,412	11%
Provision for loan losses	1,580	2,032	(452)	-22%
Net interest income after provision	31,830	27,966	3,864	14%
Non-interest income	2,746	2,675	71	3%
Non-interest expense	22,407	18,865	3,542	19%
Income before income taxes	12,169	11,776	393	3%
Income taxes	3,168	2,975	193	6%
Net income	$ 9,001	$ 8,801	$ 200	2%

Earnings per common share - Basic	$ 1.97	$ 1.92	$ 0.05	3%
Earnings per common share - Diluted	$ 1.92	$ 1.90	$ 0.02	1%

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

	Three Months Ended
	December 31, 2014	December 31, 2013	$ Change	% Change
Interest income	$ 10,590	$ 9,712	$ 878	9%
Interest expense	1,815	1,798	17	1%
Net interest income	8,775	7,914	861	11%
Provision for loan losses	596	858	(262)	-31%
Net interest income after provision	8,179	7,056	1,123	16%
Non-interest income	853	1,269	(416)	-33%
Non-interest expense	5,653	4,990	663	13%
Income before income taxes	3,379	3,335	44	1%
Income taxes	744	647	97	15%
Net income	$ 2,635	$ 2,688	$ (53)	-2%

Earnings per common share - Basic	$ 0.58	$ 0.59	$ (0.01)	-2%
Earnings per common share - Diluted	$ 0.56	$ 0.58	$ (0.02)	-3%