PRINCETON, N.J., Feb. 1, 2017 /PRNewswire/ -- The Bank of Princeton (the "Bank") (Pink Sheets: BPRN) today announced unaudited results of operations and financial condition for the three and twelve months ended December 31, 2016.
"2016 was a challenging year," said Edward Dietzler, the Bank's president. "However," he continued, "the Bank continued to grow both its earnings and loans to record levels. This is in large part due to the Bank's business model and the professionalism of people who are part of the Bank of Princeton team."
The Bank's total assets increased $12.7 million to $1.026 billion as compared to December 31, 2015. 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 $52.4 million, or seven percent, from December 31, 2015. The increase in loans was partially offset by decreases in investment securities of $28.5 million and cash and cash equivalents of $9.0 million. Total liabilities remained relatively unchanged at $922.0 million, with an increase in deposits of $73.1 million offset by a decrease in borrowings of $72.7 million. Book value per share was $22.01 at December 31, 2016, an increase of $2.50 per share, or 13 percent, from December 31, 2015.
Full-year 2016 net income was $11.8 million, an increase of $0.8 million, or eight percent, from full-year 2015 net income. Basic earnings per common share were $2.52 at December 31, 2016, an increase of $0.14 per share from December 31, 2015. Diluted earnings per common share were $2.36 at December 31, 2016, an increase of $0.06 per share from December 31, 2015. The earnings improvement was due to a $1.3 million, or four percent, increase in the Bank's net interest income and a $1.9 million decrease in the Bank's provision for loan losses for the full-year 2016 as compared to the full-year 2015. Increases in non-interest expense and income tax expense for the full-year 2016 of $1.7 million, or eight percent, and $0.8 million, or 21 percent, respectively, from full-year 2015 partially offset the improvements in net interest income and the loan loss provision. Non-interest income remained relatively flat in 2016 as compared to the prior year.
For the three months ended December 31, 2016, net income was $3.0 million, an increase of $0.3 million, or ten percent, over the same three month period in 2015. Basic earnings per common share were $0.64 for the three months ended December 31, 2016, an increase of $0.06 per share from the same period in 2015. Diluted earnings per common share were $0.60 for the three months ended December 31, 2016, an increase of $0.04 from the same period in 2015. The earnings improvement was due to a $0.9 million decrease in the Bank's provision for loan losses for the three months ended December 31, 2016 compared to the three months ended December 31, 2015. Such decrease was only partially offset by a decrease in net interest income of $0.2 million, or two percent, a decrease in non-interest income of $0.1 million, or 12 percent, and an increased income tax expense of $0.3 million compared to the same prior year period. Non-interest expense remained relatively unchanged.
Steve Shueh, director, commented that, "The Bank was under a merger agreement for the bulk of 2016. Despite this, earnings and assets rose to record levels. I credit the leadership and everyone in the organization for continuing to drive growth. It's a reflection of our commitment to the communities that we serve."
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) |
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| December 31, 2016 |
| December 31, 2015 |
| $
Change |
| % Change |
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ASSETS |
Cash and cash equivalents |
| $ 19,605 |
| $ 28,589 |
| $ (8,984) |
| -31% |
Investment securities |
| 113,374 |
| 141,890 |
| (28,516) |
| -20% |
Loans receivable, net of allowance for loan losses of $10,822 and
$10,851 at December 31, 2016 and 2015, respectively |
| 849,504 |
| 797,095 |
| 52,409 |
| 7% |
Other assets |
| 43,512 |
| 45,748 |
| (2,236) |
| -5% |
TOTAL ASSETS |
| $ 1,025,995 |
| $ 1,013,322 |
| $ 12,673 |
| 1% |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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LIABILITIES |
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Total deposits |
| $ 862,520 |
| $ 789,433 |
| $ 73,087 |
| 9% |
Borrowings |
| 56,100 |
| 128,800 |
| (72,700) |
| -56% |
Other liabilities |
| 3,913 |
| 3,645 |
| 268 |
| 7% |
TOTAL LIABILITIES |
| 922,533 |
| 921,878 |
| 655 |
| 0% |
|
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|
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TOTAL STOCKHOLDERS' EQUITY |
| 103,462 |
| 91,444 |
| 12,018 |
| 13% |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
| $ 1,025,995 |
| $ 1,013,322 |
| $ 12,673 |
| 1% |
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Book value per common share |
| $ 22.01 |
| $ 19.51 |
| $ 2.50 |
| 13% |
Tangible book value per common share1 |
| $ 22.00 |
| $ 19.50 |
| $ 2.50 |
| 13% |
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1Reconciliation of non-GAAP tangible book value per common share: |
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Total stockholders' equity |
| $ 103,462 |
| $ 91,444 |
|
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Intangible assets |
| (30) |
| (39) |
|
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Tangible stockholders' equity |
| $ 103,432 |
| $ 91,405 |
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Common shares outstanding |
| 4,700,395 |
| 4,687,457 |
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Tangible book value per common share |
| $ 22.00 |
| $ 19.50 |
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The Bank of Princeton |
Summary Statement of Operations Data |
(unaudited) |
(dollars in thousands, except per share data) |
|
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| Year Ended |
|
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|
|
| December 31,
2016 |
| December 31,
2015 |
| $ Change |
| % Change |
Interest income | $ 45,433 |
| $ 43,221 |
| $ 2,212 |
| 5% |
Interest expense | 7,763 |
| 6,837 |
| 926 |
| 14% |
Net interest income | 37,670 |
| 36,384 |
| 1,286 |
| 4% |
Provision for loan losses | (41) |
| 1,904 |
| (1,945) |
| -102% |
Net interest income after provision | 37,711 |
| 34,480 |
| 3,231 |
| 9% |
Non-interest income | 2,354 |
| 2,287 |
| 67 |
| 3% |
Non-interest expense | 23,761 |
| 22,059 |
| 1,702 |
| 8% |
Income before income taxes | 16,304 |
| 14,708 |
| 1,596 |
| 11% |
Income taxes | 4,461 |
| 3,702 |
| 759 |
| 21% |
Net income | $ 11,843 |
| $ 11,006 |
| $ 837 |
| 8% |
|
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Earnings per common share - Basic | $ 2.52 |
| $ 2.38 |
| $ 0.14 |
| 6% |
Earnings per common share - Diluted | $ 2.36 |
| $ 2.30 |
| $ 0.06 |
| 3% |
The Bank of Princeton |
Summary Statement of Operations Data |
(unaudited) |
(dollars in thousands, except per share data) |
|
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| Three Months Ended |
|
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| December 31,
2016 |
| December 31,
2015 |
| $ Change |
| % Change |
Interest income | $ 11,376 |
| $ 11,218 |
| $ 158 |
| 1% |
Interest expense | 2,024 |
| 1,698 |
| 326 |
| 19% |
Net interest income | 9,352 |
| 9,520 |
| (168) |
| -2% |
Provision for loan losses | - |
| 871 |
| (871) |
| -100% |
Net interest income after provision | 9,352 |
| 8,649 |
| 703 |
| 8% |
Non-interest income | 654 |
| 739 |
| (85) |
| -12% |
Non-interest expense | 5,724 |
| 5,715 |
| 9 |
| 0% |
Income before income taxes | 4,282 |
| 3,673 |
| 609 |
| 17% |
Income taxes | 1,264 |
| 938 |
| 326 |
| 35% |
Net income | $ 3,018 |
| $ 2,735 |
| $ 283 |
| 10% |
|
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Earnings per common share - Basic | $ 0.64 |
| $ 0.58 |
| $ 0.06 |
| 10% |
Earnings per common share - Diluted | $ 0.60 |
| $ 0.56 |
| $ 0.04 |
| 7% |
Contact Barbara Cromwell
609.454.0133
bcromwell@thebankofprinceton.com
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SOURCE The Bank of Princeton