The Bank of Princeton Announces Second Quarter 2013 Results

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Jul 26, 2013, 04:48 ET

PRINCETON, N.J., July 26, 2013 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results for the quarter and six-months ended June 30, 2013.

Second quarter 2013 net income of $2.1 million, or $0.45 per share
Net income for the six months ended June 30, 2013 was $4.1 million, or $0.88 per share
Total deposits increased $51.1 million, or eight percent, from December 31, 2012 to June 30, 2013
Total assets grew $43.7 million, or six percent, from December 31, 2012 to June 30, 2013
Loans receivable, net increased $18.6 million, or three percent, from December 31, 2012 to June 30, 2013

"We are pleased with our continued momentum from our solid start to 2013," said Edward Dietzler, the Bank's President.

For the quarter ended June 30, 2013, net income was $2.1 million, an increase of $664,000, or 47 percent, from the same period in 2012. Basic earnings per common share were $0.45, an increase of $0.14 from the same period in 2012. The increase in net income was primarily attributable to a 21 percent increase in net interest income after provision for loan losses compared to the same period in the prior year.

For the six months ended June 30, 2013, net income was $4.1 million, an increase of $1.5 million, or 61 percent, from the same period in 2012. Basic earnings per common share were $0.88, an increase of $0.33 from the same period in 2012. The increase in net income was primarily attributable to a 24 percent increase in net interest income after provision for loan losses for the six months ended June 30, 2013 compared to the same period in the prior year.

As of June 30, 2013, the Bank's total assets increased to $812.7 million, an increase of $43.7 million, or six percent, from December 31, 2012. Additionally, total deposits increased to $723.4 million, an increase of $51.1 million, or eight percent, from December 31, 2012. This was the result of organic growth from the Bank's existing branch network.

Andrew M. Chon, Chairman of the Board, stated, "Our second quarter operating performance remained strong with an improvement in our asset quality profile. We are pleased with our earnings results and believe that this continued improvement in our performance demonstrates the Company's commitment to achieving meaningful growth and returns for our shareholders. Our 2013 year-to-date operating performance continues to rank among the highest compared to our peer group. We were somewhat challenged this quarter by the level of loan payoffs that we experienced in the latter part of the quarter, which dampened the solid new loan growth that we achieved. However, our loan pipeline remains strong and should serve us well as the year continues."

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, Lambertville, and New Brunswick. 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 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.

Contact:
Barbara Cromwell
609.454.0133
[email protected]

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

	June 30, 2013	December 31, 2012	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 24,796	$ 24,619	$ 177	1%
Investment securities	210,079	186,641	23,438	13%
Loans receivable, net of allowance for loan losses of $7,277 and $7,033 at June 30, 2013 and December 31, 2012, respectively	550,739	532,115	18,624	3%
Bank-owned life insurance	9,051	8,918	133	1%
Other assets	18,000	16,709	1,291	8%
TOTAL ASSETS	$ 812,665	$ 769,002	$ 43,663	6%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 723,446	$ 672,364	$ 51,082	8%
Borrowings	24,264	28,246	(3,982)	-14%
Other liabilities	4,276	6,109	(1,833)	-30%
TOTAL LIABILITIES	751,986	706,719	45,267	6%

TOTAL STOCKHOLDERS' EQUITY	60,679	62,283	(1,604)	-3%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 812,665	$ 769,002	$ 43,663	6%

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

	Three Months Ended
	June 30, 2013	June 30, 2012	$ Change	% Change
Interest income	$ 9,041	$ 8,268	$ 773	9%
Interest expense	1,765	1,850	(85)	-5%
Net interest income	7,276	6,418	858	13%
Provision for loan losses	513	813	(300)	-37%
Net interest income after provision	6,763	5,605	1,158	21%
Non-interest income	693	761	(68)	-9%
Non-interest expense	4,631	4,363	268	6%
Income before income taxes	2,825	2,003	822	41%
Income taxes	755	597	158	26%
Net Income	$ 2,070	$ 1,406	$ 664	47%

Earnings per share - Basic	$ 0.45	$ 0.31	$ 0.14	45%
Earnings per share - Diluted	$ 0.45	$ 0.30	$ 0.15	50%

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

	Six Months Ended
	June 30, 2013	June 30, 2012	$ Change	% Change
Interest income	$ 17,931	$ 16,106	$ 1,825	11%
Interest expense	3,508	3,706	(198)	-5%
Net interest income	14,423	12,400	2,023	16%
Provision for loan losses	597	1,269	(672)	-53%
Net interest income after provision	13,826	11,131	2,695	24%
Non-interest income	1,082	986	96	10%
Non-interest expense	9,315	8,412	903	11%
Income before income taxes	5,593	3,705	1,888	51%
Income taxes	1,543	1,188	355	30%
Net Income	$ 4,050	$ 2,517	$ 1,533	61%

Earnings per share - Basic	$ 0.88	$ 0.55	$ 0.33	60%
Earnings per share - Diluted	$ 0.87	$ 0.54	$ 0.33	61%