The Bank of Princeton Announces $0.25 First Quarter Cash Dividend and New Stock Repurchase Program

Rhea-AI Summary

The Bank of Princeton (NASDAQ – BPRN) declared a cash dividend of $0.25 per share, a 39% increase from the previous quarter, scheduled for February 28, 2022. This move reflects the Board's commitment to returning value to shareholders. Additionally, a new stock repurchase program will allow management to buy back up to 5% of outstanding shares, with a maximum expenditure of $10.3 million, pending regulatory approval. These initiatives signal a strong focus on enhancing shareholder value.

Positive

• Declared a cash dividend of $0.25 per share, a 39% increase.
• New stock repurchase program to buy back up to 5% of outstanding shares.
• Total repurchase cost not to exceed $10.3 million.

Negative

• None.

PRINCETON, N.J., Jan. 26, 2022 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ – BPRN) announced that its Board of Directors, at a meeting held on January 26, 2022, declared a cash dividend of $0.25 per share of the common stock of the Bank, an increase of 39% over the prior quarter's dividend.  This dividend will be paid on February 28, 2022 to shareholders of record at the close of business on February 11, 2022.  "This increased dividend reflects the Board of Director's commitment to provide an appropriate return to our shareholders," stated Edward Dietzler, President and CEO.

The Bank's Board of Directors also announced that it has adopted a new stock repurchase program to commence on the date approval of such program is received from the FDIC and the New Jersey Department of Banking and Insurance. The Bank expects to receive such approvals during the first quarter of 2022. Under the 2022 stock repurchase program, management is authorized to repurchase up to 5% of the Bank's outstanding shares of common stock, with a total cost not to exceed $10.3 million. As of today, five percent of the Bank's outstanding shares of common stock would be 324,017 shares. The stock repurchase program does not obligate the Bank to acquire any particular amount of common stock, and it may be limited, suspended or terminated at any time without prior notice.

Under the stock repurchase program, once regulatory approval is received, the Bank may repurchase shares of common stock from time to time in open market transactions or in privately negotiated transactions as permitted under applicable rules and regulations. Open market repurchases will be conducted in accordance with the limitations set forth in Rule 10b-18 under the Securities Exchange Act of 1934 (the "Exchange Act"), and applicable legal requirements. The timing, volume and nature of such purchases will be determined at the sole discretion of the Bank's management at prices the Bank considers attractive and in the best interests of the Bank, subject to the availability of stock, general market conditions, trading price, alternate uses for capital, the Bank's financial performance, and applicable securities laws. No assurance can be given that any particular amount of common stock will be repurchased. All or some portion of the repurchases will be made pursuant to trading plans under Rule 10b5-1 under the Exchange Act, which will permit shares to be repurchased when the Bank might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. This repurchase program may be modified, extended or terminated by the Board of Directors at any time.

The Bank's payment of cash dividends on a quarterly basis is subject to a determination and declaration each quarter by its Board of Directors, which takes into account a number of factors, including the financial condition of the Bank, and any applicable legal and regulatory restrictions on the payment of dividends by the Bank.  If paid, such dividends may be reduced or eliminated in future periods.

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 nineteen branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Hamilton, Lakewood, Lambertville, Lawrenceville, Monroe Township, New Brunswick, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville.  There are also four branches in the Philadelphia, Pennsylvania area. 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 impact of the recent global coronavirus outbreak, 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 or the failure of the Bank to receive requested regulatory approvals; technological changes; acquisitions; changes in consumer spending and saving habits; those risks set forth in the Bank's Annual Report on Form 10-K for the year ended December 31, 2020 under the heading "Risk Factors," and the success of the Bank at managing the risks involved in the foregoing.

Contact George Rapp
609.454.0718
grapp@thebankofprinceton.com

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SOURCE The Bank of Princeton

FAQ

What is the cash dividend amount declared by The Bank of Princeton?

The Bank of Princeton declared a cash dividend of $0.25 per share.

When will the dividend be paid to shareholders?

The dividend will be paid on February 28, 2022.

What is the percentage increase of the declared dividend compared to the previous quarter?

The declared dividend represents a 39% increase over the previous quarter.

What is the new stock repurchase program for BPRN?

The new stock repurchase program allows the Bank to buy back up to 5% of its outstanding shares, costing a total of $10.3 million.

When is the expected approval date for the stock repurchase program?

The Bank expects to receive regulatory approvals in the first quarter of 2022.