The Bank of Princeton Announces Second Quarter 2017 Results

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Jul 21, 2017, 08:45 ET

PRINCETON, N.J., July 21, 2017 /PRNewswire/ -- The Bank of Princeton (the "Bank") (OTC-PINK: BPRN) today announced unaudited results of operations and financial condition for the quarter and six months ended June 30, 2017.

As of June 30, 2017, the Bank's total assets of $1.1 billion increased $28.6 million. The $29.5 million increase in the Bank's loan portfolio was partially offset by the $10.5 million decrease in the securities portfolio. Total deposits increased by $16.8 million while borrowings increased only $3.9 million.

For the quarter ended June 30, 2017, net income was $3.0 million, up $17 thousand, from the same period in 2016. Basic earnings per common share were $0.63, compared to $0.64 in the same period in 2016. Diluted earnings per common share were $0.60 for the quarter ended June 30, 2017 and remained unchanged for the same period in 2016. Net interest income decreased $0.03 million, while provision for loan losses increased by $0.3 million over the prior year comparable quarter. Non-interest income decreased $0.2 million over the comparable period. Non-interest income expense and income taxes decreased by $0.4 million and $0.1 million, respectively, over the same comparable period.

For the six months ended June 30, 2017, net income was $6.1 million, an increase of $0.3 million, or 6 percent, from the same period in 2016. Basic earnings per common share were $1.29, compared to $1.23 in the same period in 2016. Diluted earnings per common share were $1.21 for the six months ended June 30, 2017 compared to $1.17 for the same period in 2016. Net interest income decreased $0.2 million while provision for loan losses decreased by $0.1 million over the prior year comparable period.

Non-interest income decreased $0.3 million over the prior year comparable period. Non-interest expense and income taxes decreased by $0.3 million and $0.5 million, respectively, over the same comparable period.

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, except per share data)

	June 30, 2017	December 31, 2016	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 26,791	$ 19,605	$ 7,186	37	%
Investment securities	102,922	113,374	(10,452)	(9)	%
Loans receivable, net of allowance for loan losses of $10,822 and $10,810 at June 30, 2017 and December 31, 2016, respectively	878,984	849,504	29,480	3	%
Other assets	45,852	43,513	2,339	5	%
TOTAL ASSETS	$ 1,054,549	$ 1,025,996	$ 28,553	3	%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 879,358	$ 862,521	$ 16,837	2	%
Borrowings	60,000	56,100	3,900	7	%
Other liabilities	3,598	3,913	(315)	(8)	%
TOTAL LIABILITIES	942,956	922,534	20,422	2	%

TOTAL STOCKHOLDERS' EQUITY	111,593	103,462	8,131	8	%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,054,549	$ 1,025,996	$ 28,553	3	%

Book value per common share	$ 23.15	$ 22.01	$ 1.14	5	%
Tangible book value per common share¹	$ 23.14	$ 22.00	$ 1.14	5	%



¹ Reconciliation of non-GAAP tangible book value per common share:
Total stockholders' equity	$ 111,593	$ 103,462
Intangible assets	(26)	(30)
Tangible stockholders' equity	$ 111,567	$ 103,432

Common shares outstanding	4,821,045	4,700,395

Tangible book value per common share	$ 23.14	$ 22.00

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

	Three Months Ended
	June 30, 2017	June 30, 2016	$ Change	% Change
Interest income	$ 11,631	$ 11,454	$ 177	2	%
Interest expense	2,154	1,944	210	11	%
Net interest income	9,477	9,510	(33)	-	%
Provision for loan losses	-	(321)	321	(100)	%
Net interest income after provision	9,477	9,831	(354)	(4)	%
Non-interest income	519	683	(164)	(24)	%
Non-interest expense	6,039	6,443	(404)	(6)	%
Income before income taxes	3,957	4,071	(114)	(3)	%
Income taxes	918	1,049	(131)	(12)	%
Net Income	$ 3,039	$ 3,022	$ 17	1	%

Earnings per share - Basic	$ 0.63	$ 0.64	$ (0.01)	(2)	%
Earnings per share - Diluted	$ 0.60	$ 0.60	$ -	-	%


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

	Six Months Ended
	June 30, 2017	June 30, 2016	$ Change	% Change
Interest income	$ 22,953	$ 22,802	$ 151	1	%
Interest expense	4,112	3,730	382	10	%
Net interest income	18,841	19,072	(231)	(1)	%
Provision for loan losses	-	101	(101)	(100)	%
Net interest income after provision	18,841	18,971	(130)	(1)	%
Non-interest income	883	1,232	(349)	(28)	%
Non-interest expense	11,999	12,313	(314)	(3)	%
Income before income taxes	7,725	7,890	(165)	(2)	%
Income taxes	1,596	2,098	(502)	(24)	%
Net Income	$ 6,129	$ 5,792	$ 337	6	%

Earnings per share - Basic	$ 1.29	$ 1.23	$ 0.06	5	%
Earnings per share - Diluted	$ 1.21	$ 1.17	$ 0.04	3	%