The Bank of Princeton Announces Third Quarter 2015 Results

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Oct 30, 2015, 01:29 ET

PRINCETON, N.J., Oct. 30, 2015 /PRNewswire/ -- The Bank of Princeton (the "Bank") today announced unaudited results of operations and financial condition for the three and nine months ended September 30, 2015.

"The continued positive results achieved in the third quarter are a direct result of the commitment and dedication of our employees in the execution of the bank's strategy," said Edward Dietzler, the Bank's President.

As of September 30, 2015, the Bank's total assets increased to $1.0 billion, an increase of $66.7 million from December 31, 2014. The increase in total assets was the result of the continued growth of the Bank's loan portfolio, which increased $60.4 million, or eight percent, from December 31, 2014.

For the quarter ended September 30, 2015, net income was $3.0 million, an increase of 28 percent from the same period in 2014. Basic earnings per common share were $0.65, compared to $0.51 in the same period in 2014. Diluted earnings per common share were $0.63 for the quarter ended September 30, 2015 compared to $0.46 for the same period in 2014. The increase in net income occurred as a result of the improvement of both net interest income and non-interest expenses over the prior year comparable quarter.

For the nine months ended September 30, 2015, net income was $8.3 million, an increase of 30 percent from the same period in 2014. Basic earnings per common share were $1.80, compared to $1.39 in the same period in 2014. Diluted earnings per common share were $1.74 for the nine months ended September 30, 2015 compared to $1.24 for the same period in 2014. Similar to our quarter-end results, the increase in net income over the prior year nine month period was the result of increased net interest income and decreased non-interest expenses.

Director Stephen Shueh observed that, "The bank is proud to have recently passed the $1 billion threshold in total assets. We are appreciative of the hard work and dedication of those who have contributed to our continuing growth."

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 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 (the "Bank") may from time to time make written or oral "forward-looking statements," including statements contained in the Bank's filings with the Federal Deposit Insurance Corporation (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 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 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 our products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; our borrowers' ability to repay their loans; changes in the real estate market that can affect real estate that serves as collateral for some of our loans; the adequacy of our allowance for loan losses and our methodology for determining such allowance; the willingness of customers to substitute competitors' products and services for the Bank's products and services; the impact of changes in applicable laws and regulations; changes in technology or interruptions and breaches in security of our information systems; 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)

	September 30, 2015	December 31, 2014	$ Change	% Change

ASSETS
Cash and cash equivalents	$ 46,562	$ 31,872	$ 14,690	46%
Investment securities	147,533	164,220	(16,687)	-10%
Loans receivable, net of allowance for loan losses of $10,603 and $10,008 at September 30, 2015 and December 31, 2014, respectively	783,484	723,131	60,353	8%
Other assets	44,378	36,039	8,339	23%
TOTAL ASSETS	$ 1,021,957	$ 955,262	$ 66,695	7%

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Total deposits	$ 777,746	$ 847,857	$(70,111)	-8%
Borrowings	151,500	24,300	127,200	523%
Other liabilities	3,948	4,603	(655)	-14%
TOTAL LIABILITIES	933,194	876,760	56,434	6%

TOTAL STOCKHOLDERS' EQUITY	88,763	78,502	10,261	13%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,021,957	$ 955,262	$ 66,695	7%

Book value per common share	$ 18.94	$ 17.13	$ 1.81	11%

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

	Three Months Ended
	September 30, 2015	September 30, 2014	$ Change	% Change
Interest income	$ 10,857	$ 10,241	$ 616	6%
Interest expense	1,685	1,828	(143)	-8%
Net interest income	9,172	8,413	759	9%
Provision for loan losses	298	360	(62)	-17%
Net interest income after provision	8,874	8,053	821	10%
Non-interest income	482	708	(226)	-32%
Non-interest expense	5,336	5,512	(176)	-3%
Income before income taxes	4,020	3,249	771	24%
Income taxes	1,018	896	122	14%
Net income	$ 3,002	$ 2,353	$ 649	28%

Earnings per share - Basic	$ 0.65	$ 0.51	$ 0.14	27%
Earnings per share - Diluted	$ 0.63	$ 0.46	$ 0.17	37%

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

	Nine Months Ended
	September 30, 2015	September 30, 2014	$ Change	% Change
Interest income	$ 32,003	$ 29,977	$ 2,026	7%
Interest expense	5,139	5,343	(204)	-4%
Net interest income	26,864	24,634	2,230	9%
Provision for loan losses	1,033	983	50	5%
Net interest income after provision	25,831	23,651	2,180	9%
Non-interest income	1,548	1,893	(345)	-18%
Non-interest expense	16,345	16,754	(409)	-2%
Income before income taxes	11,034	8,790	2,244	26%
Income taxes	2,764	2,424	340	14%
Net income	$ 8,270	$ 6,366	$ 1,904	30%

Earnings per share - Basic	$ 1.80	$ 1.39	$ 0.41	29%
Earnings per share - Diluted	$ 1.74	$ 1.24	$ 0.50	40%