The Bank of Princeton Announces Intent to Form Holding Company
The Bank of Princeton (NASDAQ – BPRN) announced plans to form a bank holding company, Princeton Bancorp, Inc., pending stockholder and regulatory approvals. This restructuring aims to enhance financial and operational flexibility and maintain shareholder rights and ownership percentages. Chairman Richard Gillespie and CEO Edward Dietzler emphasized the benefits of improved capital access and adaptability to market conditions. The transition is expected to conclude by the mid-2022, without affecting the Bank's operations or services, which will continue as usual.
- Formation of a holding company could improve financial flexibility.
- Current shareholders will retain their rights and ownership percentage.
- Potential risks and uncertainties associated with regulatory approvals.
- Market volatility and economic conditions could impact future performance.
PRINCETON, N.J., March 1, 2022 /PRNewswire/ -- The Bank of Princeton (the "Bank") (NASDAQ – BPRN) is pleased to announce its intent to form a bank holding company, subject to stockholder and regulatory approval. If approved, the Bank would become a subsidiary of Princeton Bancorp, Inc., the newly-formed bank holding company. Current stockholders of the Bank would become shareholders of the newly-formed bank holding company and current stockholders will have the same rights and ownership percentage in the new holding company as they currently have in the Bank.
"The Bank's Board of Directors believes this new corporate structure will provide added financial and operational flexibility for the Bank, is an integral part of the continued growth of the Bank, and is in the best interests of the Bank's stockholders," said Richard Gillespie, Chairman of the Board of the Bank.
Edward Dietzler, President and Chief Executive Officer of the Bank, stated: "The formation of the holding company will provide more efficient access to capital if the need arises and will create flexibility in the overall corporate structure of our organization. We believe that forming a holding company will put the Bank in the best position to respond to future market conditions and to take advantage of future opportunities as they arise."
The holding company formation will not impact the Bank's operations. The Bank will continue to provide its full range of financial services comprised of personal and business lending and deposit services. The Bank's headquarters will remain in, and the holding company's headquarters will be located in, Princeton, New Jersey.
The Bank anticipates completing the reorganization at the end of the second quarter or the beginning of the third quarter of 2022, subject to stockholder and regulatory approval.
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, 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
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