The Bank of Princeton Announces Second Quarter 2012 Results

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Jul 27, 2012, 03:52 ET

PRINCETON, N.J., July 27, 2012 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results for the quarter and six months ended June 30, 2012.

Second Quarter 2012 Net income was $1.4 million, or $0.31 basic earnings per common share
Net income for the six months ended June 30, 2012 was $2.5 million, or $0.55 basic earnings per share.
Total non-interest bearing deposits increased $20.9 million, or 45 percent, from December 31, 2011
Net loans receivable grew $72.0 million, or 18 percent, from December 31, 2011

"Our second quarter results reflect our continued ability to execute on our business plan," said Edward Dietzler, the Bank's President.

For the quarter ended June 30, 2012, net income was $1.4 million, an increase of $657,000, or 88 percent, from the same period in 2011. Basic earnings per common share were $0.31, an increase of $0.12 from the same period in 2011. The increase in net income was primarily attributable to a 36 percent increase in net interest income after provision for loan losses for the quarter ended June 30, 2012 compared to the same period in the prior year.

For the six months ended June 30, 2012, net income was $2.5 million, an increase of $1.1 million, or 84 percent, from the same period in 2011. Basic earnings per common share were $0.55, an increase of $0.20 from the same period in 2011. The increase in net income was primarily attributable to a 41 percent increase in net interest income after provision for loan losses for the six months ended June 30, 2012 compared to the same period in the prior year.

The Bank's total assets increased to $736.6 million at June 30, 2012, an increase of $71.7 million, or 11 percent, from December 31, 2011. Additionally, total deposits increased to $610 million at June 30, 2012, a two percent increase from the prior year end. The growth in assets and deposits was the result of continuing organic growth through the Bank's existing branch network.

"We continue to focus on responsibly growing our loan portfolio by attracting high quality customers through our relationships in our local markets," said Robert Ridolfi, Loan Committee Chairman. "Additionally, we will be expanding our footprint in the second half of 2012 with the opening of two new branches in New Brunswick, New Jersey and Chinatown in Philadelphia, Pennsylvania, allowing the Bank to attract new business through our ability to provide exceptional customer service," added Ridolfi.

About The Bank of Princeton

The Bank of Princeton is a community bank founded in 2007, and has been profitable since 2009. It was recently named one of New Jersey's 50 Fastest Growing Companies by NJBIZ. It is a New Jersey state-chartered commercial bank with eight branches in New Jersey, including three in Princeton and others in Hamilton, Pennington, Montgomery, Monroe Township and Lambertville. There are also three 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.

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; credit risk associated with the Bank's lending activities; risks relating to the Bank's significant real estate collateral and the real estate market; 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 impact of changes in applicable laws and regulations; 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 may be required by applicable law or regulation.

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

	June 30, 2012	December 31, 2011	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 16,601	$ 59,215	$ (42,614)	-72%
Investment securities	215,153	177,237	37,916	21%
Loans receivable, net of allowance for loan losses of $6,297 and $5,362 at June 30, 2012 and December 31, 2011, respectively	477,867	405,861	72,006	18%
Bank-owned life insurance	8,776	8,639	137	2%
Other assets	18,190	13,919	4,271	31%
TOTAL ASSETS	$ 736,587	$ 664,871	$ 71,716	11%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 609,916	$ 595,573	$ 14,343	2%
Borrowings	63,451	11,344	52,107	459%
Accrued interest payable and other liabilities	5,063	3,636	1,427	39%
TOTAL LIABILITIES	678,430	610,553	67,877	11%

TOTAL STOCKHOLDERS' EQUITY	58,157	54,318	3,839	7%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 736,587	$ 664,871	$ 71,716	11%

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

	Three Months Ended
	June 30, 2012	June 30, 2011	$ Change	% Change
Interest income	$ 8,268	$ 6,175	$ 2,093	34%
Interest expense	1,850	1,712	138	8%
Net interest income	6,418	4,463	1,955	44%
Provision for loan losses	813	355	458	129%
Net interest income after provision	5,605	4,108	1,497	36%
Non-interest income	761	840	(79)	-9%
Non-interest expense	4,363	3,807	556	15%
Income before income taxes	2,003	1,141	862	76%
Income taxes	597	392	205	52%
Net Income	$ 1,406	$ 749	$ 657	88%

Earnings per share - Basic	$ 0.31	$ 0.19	$ 0.12	62%
Earnings per share - Diluted	$ 0.30	$ 0.19	$ 0.11	58%

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

	Six Months Ended
	June 30, 2012	June 30, 2011	$ Change	% Change
Interest income	$ 16,106	$ 11,789	$ 4,317	37%
Interest expense	3,706	3,389	317	9%
Net interest income	12,400	8,400	4,000	48%
Provision for loan losses	1,269	483	786	163%
Net interest income after provision	11,131	7,917	3,214	41%
Non-interest income	986	1,115	(129)	-12%
Non-interest expense	8,412	6,944	1,468	21%
Income before income taxes	3,705	2,088	1,617	77%
Income taxes	1,188	718	470	65%
Net Income	$ 2,517	$ 1,370	$ 1,147	84%

Earnings per share - Basic	$ 0.55	$ 0.35	$ 0.20	57%
Earnings per share - Diluted	$ 0.54	$ 0.34	$ 0.20	59%