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For Immediate Release

Contact George Rapp

609.454.0718

grapp@thebankofprinceton.com

Princeton Bancorp Announces

Third Quarter 2025 Results

Princeton, NJ, October 29, 2025 / - Princeton Bancorp, Inc. (the “Company”) (NASDAQ - BPRN), the bank holding company for The Bank of Princeton (the “Bank”), today reported its unaudited financial condition at, and its results of operations for the quarter and nine months ended, September 30, 2025.

President/CEO Edward Dietzler commented on the quarter results, “The Bank achieved strong quarterly results, with a net income of $6.5 million and an EPS of $0.95. These results were driven by a 23-basis-point increase in the net interest margin to 3.77%, as compared to the prior quarter, reflecting improvements that were driven by higher asset yields and a reduction in funding costs."

The Company reported net income of $6.5 million, or $0.95 per diluted common share, for the third quarter of 2025, compared to $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025, and a net loss of ($4.5) million, or ($0.68) per diluted common share, for the third quarter of 2024. The increase in net income for the third quarter of 2025 when compared to the second quarter of 2025 was primarily due to a decrease in provision for credit losses of $7.6 million, and an increase in net-interest income of $809 thousand, partially offset by a increase in non-interest expense of $408 thousand, a decrease in non-interest income of $343 thousand and an increase in income tax expense of $1.9 million. The increase in net income for the third quarter of 2025 when compared to the third quarter of 2024 was primarily due to $7.8 million in Cornerstone Bank merger-related expenses recorded in the third quarter of 2024, partially offset by an increase in other non-interest expenses of $1.6 million, and an increase of $2.9 million in income tax expense, and an increase of $2.5 million in net-interest income, and a decrease in the provision for credit losses of $5.3 million.

Review of Statements of Financial Condition

Total assets were $2.23 billion at September 30, 2025, a decrease of $111.1 million, or 4.75% when compared to $2.34 billion at the end of 2024. The primary reasons for the decrease in total assets were related to decreases in cash and cash equivalents of $44.5 million, investment securities of $37.2 million, and in net loans of $25.1 million. The decrease in the Company’s net loans consisted of decreases of $54.2 million in construction loans, $32.0 million in commercial real estate loans, and $11.5 million in commercial and industrial loans, partially offset by increases of $67.9 million in residential mortgages, and $4.7 million in home equity and consumer loans.

Total deposits on September 30, 2025, decreased $104.0 million, or 5.12%, when compared to December 31, 2024. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $62.8 million, money market deposits of $25.3 million, non-interest-bearing demand deposits of $6.6 million, interest-bearing demand deposits of $6.3 million, and savings deposits of $2.9 million. On balance sheet liquidity remains strong at September 30, 2025.

Total stockholders’ equity at September 30, 2025, increased $4.6 million or 1.74% when compared to December 31, 2024. The increase was primarily due to an increase in retained earnings of $6.2 million (which consisted of $12.5 million in net income, partially offset by $6.3 million of cash dividends recorded during the period), an increase in paid-in capital of $2.7 million primarily due to the exercise of stock options, and a decrease in accumulated other comprehensive loss of $3.3 million, partially offset by a $7.6 million increase in treasury stock.

 

 

The ratio of equity to total assets at September 30, 2025, and at December 31, 2024, was 12.0% and 11.2%, respectively.

Asset Quality

At September 30, 2025, non-performing assets totaled $16.7 million, a decrease of $10.4 million when compared to the amount at December 31, 2024, primarily the result of $10.2 million in charge-offs.

Review of Quarterly Financial Results

Net interest income was $19.6 million for the third quarter of 2025, an increase of $809 thousand over the second quarter of 2025, and an increase of $2.5 million compared to $17.1 million for the third quarter of 2024. The increase in net interest income when compared with the second quarter of 2025 was primarily related a decrease in interest expense of $820 thousand, or 5.9%. The net interest margin for the third quarter of 2025 was 3.77%, an increase of 23 basis points when compared to the second quarter of 2025, and an increase of 36 basis points when compared to the third quarter of 2024. When comparing the third quarter of 2025 and the second quarter of 2025 periods, the decrease in interest expense and the increase in net interest margin were primarily associated with a decrease in total interest-bearing deposits of $61.8 million, as well as a decrease in the Company’s cost of funds of 12 basis points.

When comparing the third quarter of 2025 and third quarter of 2024, the increase in net-interest income increased of $2.5 million, was primarily due to an increase in average interest-earning assets of $65.8 million and the Bank’s cost of funds decreasing by 47 basis points. These were partially offset by the increase in average interest-bearing deposits of $53.3 million, and a decrease of 4 basis points in the yield earned on interest-earning assets.

The Company recorded a reversal of credit losses of $672 thousand during the third quarter of 2025, which consisted of a $659 thousand decrease recorded to the allowance of credit losses, and a decrease to the provision for credit losses of $13 thousand related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. The current quarters' reversal of provision recorded on the Company’s statements of income was $7.6 million lower when compared to the provision for credit losses for the second quarter of 2025 and was $5.3 million lower when compared to the third quarter of 2024. The coverage ratio of the allowance for credit losses to period end loans was 1.14% at September 30, 2025, and 1.30% at December 31, 2024.

Total non-interest income of $1.9 million for the third quarter of 2025 decreased $343 thousand or 15.2% when compared to the second quarter of 2025 and decreased $148 thousand or 7.2% when compared to the third quarter of 2024. The decrease in the third quarter of 2025 when compared to the second quarter of 2025 was primarily due to a decrease in other non-interest income of $582 thousand, partially offset by an increase in loans fees of $223 thousand. The decrease over the prior year’s third quarter was primarily due to a decrease in other non-interest income of $414 thousand, partially offset by an increase in loan fees of $142 thousand and an increase in income from bank owned life insurance of $83 thousand. The decrease in other non-interest income for the third quarter was related to a net loss on an equity investment in the amount of $471 thousand.

Total non-interest expense of $13.9 million for the third quarter of 2025 increased $408 thousand, or 3.0%, when compared to the second quarter of 2025. This increase over the prior quarter was primarily due to increases in professional fees of $346 thousand, and data processing and communications expenses of $165 thousand, partially offset by a decrease in office expense of $125 thousand. Total non-interest expense for the third quarter of 2025 decreased $6.2 million or 30.9% when compared to the third quarter of 2024. This decrease was primarily related to merger-related expenses of $7.8 million recorded in the third quarter of 2024, partially offset by increases in salaries and employee benefits expense of $537 thousand, professional fees of $413 thousand, data processing and communications expense of $252 thousand, and other non-interest expenses of $241 thousand.

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For the quarter ended September 30, 2025, the Company recorded an income tax expense of $1.8 million, resulting in an effective tax rate of 21.9%, compared to an income tax benefit of ($92) thousand, resulting in an effective tax rate of (15.4)% for the quarter ended June 30, 2025 and compared to an income tax benefit of ($1.1) million resulting in an effective tax rate of (20.1) % for the quarter ended September 30, 2024.

For the nine-month period ended September 30, 2025, the Company recorded net income of $12.5 million, or $1.82 per diluted common share, compared to $5.0 million, or $0.77 per diluted common share, for the same period in 2024. The increase in net income was primarily due to an increase of $8.7 million in net interest income as well as Cornerstone Bank merger-related expenses recorded in third quarter of 2024.

 

About Princeton Bancorp, Inc. and The Bank of Princeton

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 28 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation.

Forward-Looking Statements

The Company may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company (including this press release), which are made in good faith by the Company 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 Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of the current Federal budget stalemate in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the global impact of the military conflicts in the Ukraine and the Middle East; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct 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; 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 Company and the

3

 

Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes in consumer spending and saving habits; those risks under the heading “Risk Factors” set forth in the Bank’s Annual Report on Form 10-K for the year ended December 31, 2024, and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company 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 Company, except as required by applicable law or regulation.

4

 

Princeton Bancorp, Inc.

Consolidated Statements of Financial Condition

(Unaudited)

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025 vs

 

 

September 30, 2025 vs

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31, 2024

 

 

September 30, 2024

 

 

2025

 

 

2024

 

 

2024

 

 

$ Change

 

 

% Change

 

 

$ Change

 

 

% Change

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

72,892

 

 

$

117,348

 

 

$

181,058

 

 

$

(44,456

)

 

 

(37.88

)%

 

$

(108,166

)

 

 

(59.74

)%

Securities available-for-sale
   taxable

 

 

170,011

 

 

 

207,442

 

 

 

147,871

 

 

 

(37,431

)

 

 

(18.04

)%

 

 

22,140

 

 

 

14.97

%

Securities available-for-sale
   tax-exempt

 

 

39,917

 

 

 

39,729

 

 

 

40,988

 

 

 

188

 

 

 

0.47

%

 

 

(1,071

)

 

 

(2.61

)%

Securities held-to-maturity

 

 

155

 

 

 

161

 

 

 

163

 

 

 

(6

)

 

 

(3.73

)%

 

 

(8

)

 

 

(4.91

)%

Loans receivable, net of deferred
   loan fees

 

 

1,793,787

 

 

 

1,818,875

 

 

 

1,831,407

 

 

 

(25,088

)

 

 

(1.38

)%

 

 

(37,620

)

 

 

(2.05

)%

Allowance for credit losses

 

 

(20,441

)

 

 

(23,657

)

 

 

(23,200

)

 

 

3,216

 

 

 

(13.59

)%

 

 

2,759

 

 

 

(11.89

)%

Goodwill

 

 

14,381

 

 

 

14,381

 

 

 

14,381

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Core deposit intangible

 

 

2,976

 

 

 

3,632

 

 

 

3,860

 

 

 

(656

)

 

 

(18.06

)%

 

 

(884

)

 

 

(22.90

)%

Other real estate owened

 

 

—

 

 

 

295

 

 

 

—

 

 

 

(295

)

 

 

(100.00

)%

 

 

—

 

 

N/A

 

Other assets

 

 

155,412

 

 

 

162,027

 

 

 

158,202

 

 

 

(6,615

)

 

 

(4.08

)%

 

 

(2,790

)

 

 

(1.76

)%

TOTAL ASSETS

 

$

2,229,090

 

 

$

2,340,233

 

 

$

2,354,730

 

 

$

(111,143

)

 

 

(4.75

)%

 

$

(125,640

)

 

 

(5.34

)%

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest checking

 

$

294,333

 

 

$

300,972

 

 

$

302,846

 

 

$

(6,639

)

 

 

(2.21

)%

 

$

(8,513

)

 

 

(2.81

)%

Interest checking

 

 

294,236

 

 

 

300,559

 

 

 

284,504

 

 

 

(6,323

)

 

 

(2.10

)%

 

 

9,732

 

 

 

3.42

%

Savings

 

 

167,968

 

 

 

170,880

 

 

 

178,299

 

 

 

(2,912

)

 

 

(1.70

)%

 

 

(10,331

)

 

 

(5.79

)%

Money market

 

 

465,194

 

 

 

490,543

 

 

 

493,353

 

 

 

(25,349

)

 

 

(5.17

)%

 

 

(28,159

)

 

 

(5.71

)%

Time deposits over $250,000

 

 

226,666

 

 

 

208,858

 

 

 

213,310

 

 

 

17,808

 

 

 

8.53

%

 

 

13,356

 

 

 

6.26

%

Other time deposits

 

 

480,188

 

 

 

560,813

 

 

 

573,689

 

 

 

(80,625

)

 

 

(14.38

)%

 

 

(93,501

)

 

 

(16.30

)%

Total deposits

 

 

1,928,585

 

 

 

2,032,625

 

 

 

2,046,001

 

 

 

(104,040

)

 

 

(5.12

)%

 

 

(117,416

)

 

 

(5.74

)%

Borrowings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

N/A

 

 

 

—

 

 

N/A

 

Other liabilities

 

 

33,898

 

 

 

45,568

 

 

 

47,227

 

 

 

(11,670

)

 

 

(25.61

)%

 

 

(13,329

)

 

 

(28.22

)%

TOTAL LIABILITIES

 

 

1,962,483

 

 

 

2,078,193

 

 

 

2,093,228

 

 

 

(115,710

)

 

 

(5.57

)%

 

 

(130,745

)

 

 

(6.25

)%

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid-in capital

 

 

122,559

 

 

 

119,908

 

 

 

119,514

 

 

 

2,651

 

 

 

2.21

%

 

 

3,045

 

 

 

2.55

%

Treasury stock 1

 

 

(8,403

)

 

 

(842

)

 

 

(842

)

 

 

(7,561

)

 

 

897.98

%

 

 

(7,561

)

 

 

897.98

%

Retained earnings

 

 

158,081

 

 

 

151,915

 

 

 

148,716

 

 

 

6,166

 

 

 

4.06

%

 

 

9,365

 

 

 

6.30

%

Accumulated other
   comprehensive income (loss)

 

 

(5,630

)

 

 

(8,941

)

 

 

(5,886

)

 

 

3,311

 

 

 

(37.03

)%

 

 

256

 

 

 

(4.35

)%

TOTAL STOCKHOLDERS’
   EQUITY

 

 

266,607

 

 

 

262,040

 

 

 

261,502

 

 

 

4,567

 

 

 

1.74

%

 

 

5,105

 

 

 

1.95

%

TOTAL LIABILITIES
   AND STOCKHOLDERS’
   EQUITY

 

$

2,229,090

 

 

$

2,340,233

 

 

$

2,354,730

 

 

 

(111,143

)

 

 

(4.21

)%

 

 

(125,640

)

 

 

12.99

%

Book value per common share

 

$

39.36

 

 

$

38.07

 

 

$

38.18

 

 

$

1.29

 

 

 

3.39

%

 

$

1.18

 

 

 

3.09

%

Tangible book value per
   common share 2

 

$

36.80

 

 

$

35.45

 

 

$

35.52

 

 

$

1.35

 

 

 

3.81

%

 

$

1.28

 

 

 

3.60

%

 

1
Treasury stock repurchases commenced March 8, 2024, associated with the stock repurchase program announced August 10, 2023.
2
Tangible book value per common share is a non-GAAP measure.

For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.

5

 

Princeton Bancorp, Inc.

Loan and Deposit Tables

(Unaudited)

The components of loans receivable, net at September 30, 2025 and December 31, 2024 were as follows:

 

 

September 30,

 

 

December 31,

 

 

2025

 

 

2024

 

 

(In thousands)

 

Commercial real estate

 

$

1,353,039

 

 

$

1,385,085

 

Commercial and industrial

 

 

81,370

 

 

 

92,857

 

Construction

 

 

203,004

 

 

 

257,169

 

Residential first-lien mortgages

 

 

135,930

 

 

 

68,030

 

Home equity / consumer

 

 

22,799

 

 

 

18,133

 

Total loans

 

 

1,796,142

 

 

 

1,821,274

 

Deferred fees and costs

 

 

(2,355

)

 

 

(2,399

)

Allowance for credit losses

 

 

(20,441

)

 

 

(23,657

)

Loans, net

 

$

1,773,346

 

 

$

1,795,218

 

 

The components of deposits at September 30, 2025 and December 31, 2024 were as follows:

 

 

September 30,

 

 

December 31,

 

 

2025

 

 

2024

 

 

(In thousands)

 

Demand, non-interest-bearing

 

$

294,333

 

 

$

300,972

 

Demand, interest-bearing

 

 

294,236

 

 

 

300,559

 

Savings

 

 

167,968

 

 

 

170,880

 

Money market

 

 

465,194

 

 

 

490,543

 

Time deposits

 

 

706,854

 

 

 

769,671

 

Total deposits

 

$

1,928,585

 

 

$

2,032,625

 

 

6

 

Princeton Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

(Amounts in thousands except per share data)

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

$ Change

 

 

% Change

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

Loans and fees

 

$

29,927

 

 

$

28,135

 

 

$

1,792

 

 

 

6.4

%

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,214

 

 

 

1,273

 

 

 

941

 

 

 

73.9

%

Tax-exempt

 

 

278

 

 

 

285

 

 

 

(7

)

 

 

(2.5

)%

Held-to-maturity debt securities

 

 

2

 

 

 

2

 

 

 

—

 

 

 

—

 

Other interest and dividend income

 

 

324

 

 

 

2,115

 

 

 

(1,791

)

 

 

(84.7

)%

Total interest and dividends

 

 

32,745

 

 

 

31,810

 

 

 

935

 

 

 

2.9

%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,081

 

 

 

14,701

 

 

 

(1,620

)

 

 

(11.0

)%

Borrowings

 

 

45

 

 

 

—

 

 

 

45

 

 

N/A

 

Total interest expense

 

 

13,126

 

 

 

14,701

 

 

 

(1,575

)

 

 

(10.7

)%

Net interest income

 

 

19,619

 

 

 

17,109

 

 

 

2,510

 

 

 

14.7

%

Provision for (reversal of) credit losses

 

 

(672

)

 

 

4,601

 

 

 

(5,273

)

 

 

(114.6

)%

Net interest income after provision for (reversal of) credit
   losses

 

 

20,291

 

 

 

12,508

 

 

 

7,783

 

 

 

62.2

%

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) on sale of securities available-for-sale, net

 

 

—

 

 

 

(7

)

 

 

7

 

 

 

(100.0

)%

Income from bank-owned life insurance

 

 

506

 

 

 

423

 

 

 

83

 

 

 

19.6

%

Fees and service charges

 

 

555

 

 

 

521

 

 

 

34

 

 

 

6.5

%

Loan fees, including prepayment penalties

 

 

926

 

 

 

784

 

 

 

142

 

 

 

18.1

%

Other

 

 

(79

)

 

 

335

 

 

 

(414

)

 

 

(123.6

)%

Total non-interest income

 

 

1,908

 

 

 

2,056

 

 

 

(148

)

 

 

(7.2

)%

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,093

 

 

 

6,556

 

 

 

537

 

 

 

8.2

%

Occupancy and equipment

 

 

2,146

 

 

 

2,087

 

 

 

59

 

 

 

2.8

%

Professional fees

 

 

1,067

 

 

 

654

 

 

 

413

 

 

 

63.1

%

Data processing and communications

 

 

1,708

 

 

 

1,456

 

 

 

252

 

 

 

17.3

%

Federal deposit insurance

 

 

370

 

 

 

316

 

 

 

54

 

 

 

17.1

%

Advertising and promotion

 

 

212

 

 

 

181

 

 

 

31

 

 

 

17.1

%

Office expense

 

 

113

 

 

 

190

 

 

 

(77

)

 

 

(40.5

)%

Core deposit intangible

 

 

209

 

 

 

143

 

 

 

66

 

 

 

46.2

%

Merger-related expenses

 

 

—

 

 

 

7,803

 

 

 

(7,803

)

 

 

(100.0

)%

Other

 

 

999

 

 

 

758

 

 

 

241

 

 

 

31.8

%

Total non-interest expense

 

 

13,917

 

 

 

20,144

 

 

 

(6,227

)

 

 

(30.9

)%

Income (loss) before income tax expense

 

 

8,282

 

 

 

(5,580

)

 

 

13,862

 

 

 

(248.4

)%

Income tax (benefit) expense

 

 

1,816

 

 

 

(1,124

)

 

 

2,940

 

 

 

(261.6

)%

Net income (loss)

 

$

6,466

 

 

$

(4,456

)

 

 

10,922

 

 

 

(245.1

)%

Net income (loss) per common share - basic

 

$

0.95

 

 

$

(0.68

)

 

$

1.63

 

 

 

(240.8

)%

Net income (loss) per common share - diluted

 

$

0.95

 

 

$

(0.68

)

 

$

1.63

 

 

 

(240.4

)%

Weighted average shares outstanding - basic

 

 

6,776

 

 

 

6,573

 

 

 

203

 

 

 

3.1

%

Weighted average shares outstanding - diluted

 

 

6,795

 

 

 

6,573

 

 

 

222

 

 

 

3.4

%

 

7

 

Princeton Bancorp, Inc.

Consolidated Statements of Income (Current Quarter vs Prior Quarter)

(Unaudited)

(Amounts in thousands, except per share data)

 

 

Three Months Ended

 

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

 

 

 

 

 

 

2025

 

 

2025

 

 

$ Change

 

 

% Change

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

Loans and fees

 

$

29,927

 

 

$

29,620

 

 

$

307

 

 

 

1.0

%

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,214

 

 

 

2,298

 

 

 

(84

)

 

 

(3.7

)%

Tax-exempt

 

 

278

 

 

 

279

 

 

 

(1

)

 

 

(0.4

)%

Held-to-maturity debt securities

 

 

2

 

 

 

2

 

 

 

—

 

 

 

0.0

%

Other interest and dividend income

 

 

324

 

 

 

557

 

 

 

(233

)

 

 

(41.8

)%

Total interest and dividends

 

 

32,745

 

 

 

32,756

 

 

 

(11

)

 

 

(0.0

)%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,081

 

 

 

13,933

 

 

 

(852

)

 

 

(6.1

)%

Borrowings

 

 

45

 

 

 

13

 

 

 

32

 

 

 

246.2

%

Total interest expense

 

 

13,126

 

 

 

13,946

 

 

 

(820

)

 

 

(5.9

)%

Net interest income

 

 

19,619

 

 

 

18,810

 

 

 

809

 

 

 

4.3

%

Provision for (reversal of) credit losses

 

 

(672

)

 

 

6,956

 

 

 

(7,628

)

 

 

(109.7

)%

Net interest income after provision for (reversal of) credit losses

 

 

20,291

 

 

 

11,854

 

 

 

8,437

 

 

 

71.2

%

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Income from bank-owned life insurance

 

 

506

 

 

 

494

 

 

 

12

 

 

 

2.4

%

Fees and service charges

 

 

555

 

 

 

551

 

 

 

4

 

 

 

0.7

%

Loan fees, including prepayment penalties

 

 

926

 

 

 

703

 

 

 

223

 

 

 

31.7

%

Other

 

 

(79

)

 

 

503

 

 

 

(582

)

 

 

(115.7

)%

Total non-interest income

 

 

1,908

 

 

 

2,251

 

 

 

(343

)

 

 

(15.2

)%

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,093

 

 

 

7,093

 

 

 

—

 

 

 

0.0

%

Occupancy and equipment

 

 

2,146

 

 

 

2,147

 

 

 

(1

)

 

 

(0.0

)%

Professional fees

 

 

1,067

 

 

 

721

 

 

 

346

 

 

 

48.0

%

Data processing and communications

 

 

1,708

 

 

 

1,543

 

 

 

165

 

 

 

10.7

%

Federal deposit insurance

 

 

370

 

 

 

415

 

 

 

(45

)

 

 

(10.8

)%

Advertising and promotion

 

 

212

 

 

 

152

 

 

 

60

 

 

 

39.5

%

Office expense

 

 

113

 

 

 

238

 

 

 

(125

)

 

 

(52.5

)%

Core deposit intangible

 

 

209

 

 

 

219

 

 

 

(10

)

 

 

(4.6

)%

Other

 

 

999

 

 

 

981

 

 

 

18

 

 

 

1.8

%

Total non-interest expense

 

 

13,917

 

 

 

13,509

 

 

 

408

 

 

 

3.0

%

Income before income tax expense

 

 

8,282

 

 

 

596

 

 

 

7,686

 

 

 

1289.6

%

Income tax (benefit) expense

 

 

1,816

 

 

 

(92

)

 

 

1,908

 

 

 

(2073.9

)%

Net income

 

$

6,466

 

 

$

688

 

 

$

5,778

 

 

 

839.8

%

Net income per common share - basic

 

$

0.95

 

 

$

0.10

 

 

$

0.85

 

 

 

852.4

%

Net income per common share - diluted

 

$

0.95

 

 

$

0.10

 

 

$

0.85

 

 

 

853.7

%

Weighted average shares outstanding - basic

 

 

6,776

 

 

 

6,867

 

 

 

(91

)

 

 

(1.3

)%

Weighted average shares outstanding - diluted

 

 

6,795

 

 

 

6,895

 

 

 

(100

)

 

 

(1.5

)%

 

8

 

Princeton Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

(Amounts in thousands, except per share data)

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

$ Change

 

 

% Change

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

Loans and fees

 

$

89,171

 

 

$

79,109

 

 

$

10,062

 

 

 

12.7

%

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

7,128

 

 

 

2,838

 

 

 

4,290

 

 

 

151.2

%

Tax-exempt

 

 

841

 

 

 

857

 

 

 

(16

)

 

 

(1.9

)%

Held-to-maturity debt securities

 

 

6

 

 

 

7

 

 

 

(1

)

 

 

(14.3

)%

Other interest and dividend income

 

 

1,650

 

 

 

6,475

 

 

 

(4,825

)

 

 

(74.5

)%

Total interest and dividends

 

 

98,796

 

 

 

89,286

 

 

 

9,510

 

 

 

10.7

%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

41,552

 

 

 

40,761

 

 

 

791

 

 

 

1.9

%

Borrowings

 

 

58

 

 

 

—

 

 

 

58

 

 

N/A

 

Total interest expense

 

 

41,610

 

 

 

40,761

 

 

 

849

 

 

 

2.1

%

Net interest income

 

 

57,186

 

 

 

48,525

 

 

 

8,661

 

 

 

17.8

%

Provision for credit losses

 

 

6,552

 

 

 

4,669

 

 

 

1,883

 

 

 

40.3

%

Net interest income after provision for credit losses

 

 

50,634

 

 

 

43,856

 

 

 

6,778

 

 

 

15.5

%

Non-Interest income

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) gain on sale of securities available-for-sale, net

 

 

—

 

 

 

(7

)

 

 

7

 

 

 

(100.0

)%

Income from bank-owned life insurance

 

 

1,471

 

 

 

1,192

 

 

 

279

 

 

 

23.4

%

Fees and service charges

 

 

1,617

 

 

 

1,418

 

 

 

199

 

 

 

14.0

%

Loan fees, including prepayment penalties

 

 

2,304

 

 

 

2,445

 

 

 

(141

)

 

 

(5.8

)%

Other

 

 

957

 

 

 

1,080

 

 

 

(123

)

 

 

(11.4

)%

Total non-interest income

 

 

6,349

 

 

 

6,128

 

 

 

221

 

 

 

3.6

%

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

21,358

 

 

 

19,519

 

 

 

1,839

 

 

 

9.4

%

Occupancy and equipment

 

 

6,578

 

 

 

5,966

 

 

 

612

 

 

 

10.3

%

Professional fees

 

 

2,549

 

 

 

1,780

 

 

 

769

 

 

 

43.2

%

Data processing and communications

 

 

4,877

 

 

 

4,020

 

 

 

857

 

 

 

21.3

%

Federal deposit insurance

 

 

1,318

 

 

 

868

 

 

 

450

 

 

 

51.8

%

Advertising and promotion

 

 

535

 

 

 

479

 

 

 

56

 

 

 

11.7

%

Office expense

 

 

461

 

 

 

464

 

 

 

(3

)

 

 

(0.6

)%

Other real estate owned expense

 

 

27

 

 

 

—

 

 

 

27

 

 

N/A

 

Core deposit intangible

 

 

656

 

 

 

374

 

 

 

282

 

 

 

75.4

%

Merger-related expenses

 

 

—

 

 

 

7,803

 

 

 

(7,803

)

 

 

(100.0

)%

Other

 

 

2,859

 

 

 

2,716

 

 

 

143

 

 

 

5.3

%

Total non-interest expense

 

 

41,218

 

 

 

43,989

 

 

 

(2,771

)

 

 

(6.3

)%

Income before income tax expense

 

 

15,765

 

 

 

5,995

 

 

 

9,770

 

 

 

163.0

%

Income tax expense

 

 

3,233

 

 

 

980

 

 

 

2,253

 

 

 

229.9

%

Net income

 

$

12,532

 

 

$

5,015

 

 

$

7,517

 

 

 

149.9

%

Net income per common share - basic

 

$

1.83

 

 

$

0.78

 

 

$

1.05

 

 

 

(40.8

)%

Net income per common share - diluted

 

$

1.82

 

 

$

0.77

 

 

$

1.05

 

 

 

(40.6

)%

Weighted average shares outstanding - basic

 

 

6,849

 

 

 

6,412

 

 

 

437

 

 

 

6.8

%

Weighted average shares outstanding - diluted

 

 

6,884

 

 

 

6,496

 

 

 

388

 

 

 

6.0

%

 

9

 

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

 

 

For the Three Months Ended September 30,

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

Change in

 

 

Change in

 

 

Average
Balance

 

 

Yield/
Rate

 

 

Average
Balance

 

 

Yield/
Rate

 

 

Average
Balance

 

 

Yield/
Rate

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

1,817,551

 

 

 

6.53

%

 

$

1,691,688

 

 

 

6.62

%

 

$

125,863

 

 

 

(0.09

)%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable available-for-sale

 

 

178,947

 

 

 

4.95

%

 

 

111,633

 

 

 

4.56

%

 

 

67,314

 

 

 

0.39

%

Tax-exempt available-for-sale

 

 

39,269

 

 

 

2.83

%

 

 

40,028

 

 

 

2.85

%

 

 

(759

)

 

 

(0.02

)%

Held-to-maturity

 

 

156

 

 

 

5.33

%

 

 

164

 

 

 

5.33

%

 

 

(8

)

 

 

0.00

%

Total Securities

 

 

218,372

 

 

 

4.57

%

 

 

151,825

 

 

 

4.11

%

 

 

66,547

 

 

 

0.46

%

Other interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold

 

 

15,911

 

 

 

4.33

%

 

 

135,164

 

 

 

5.38

%

 

 

(119,253

)

 

 

(1.05

)%

Other interest-earning assets

 

 

12,156

 

 

 

4.92

%

 

 

19,549

 

 

 

5.85

%

 

 

(7,393

)

 

 

(0.93

)%

Other interest-earning assets

 

 

28,067

 

 

 

4.58

%

 

 

154,713

 

 

 

5.44

%

 

 

(126,646

)

 

 

(0.86

)%

Total interest-earning assets

 

 

2,063,990

 

 

 

6.29

%

 

 

1,998,226

 

 

 

6.33

%

 

 

65,764

 

 

 

(0.04

)%

Total non-earning assets

 

 

170,260

 

 

 

 

 

 

151,776

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,234,250

 

 

 

 

 

$

2,150,002

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

297,455

 

 

 

2.06

%

 

$

258,728

 

 

 

1.86

%

 

$

38,727

 

 

 

0.20

%

Savings

 

 

168,940

 

 

 

2.31

%

 

 

159,521

 

 

 

2.57

%

 

 

9,419

 

 

 

(0.26

)%

Money market

 

 

466,459

 

 

 

3.16

%

 

 

443,109

 

 

 

3.85

%

 

 

23,350

 

 

 

(0.69

)%

Certificates of deposit

 

 

702,996

 

 

 

3.86

%

 

 

721,240

 

 

 

4.50

%

 

 

(18,244

)

 

 

(0.64

)%

Total interest-bearing deposits

 

 

1,635,850

 

 

 

3.17

%

 

 

1,582,598

 

 

 

3.70

%

 

 

53,252

 

 

 

(0.53

)%

Non-interest bearing deposits

 

 

294,652

 

 

 

 

 

 

269,030

 

 

 

 

 

 

 

 

 

 

Total deposits

 

 

1,930,502

 

 

 

2.69

%

 

 

1,851,628

 

 

 

3.16

%

 

 

78,874

 

 

 

(0.47

)%

Borrowings

 

 

3,749

 

 

 

4.72

%

 

 

—

 

 

N/A

 

 

 

3,749

 

 

N/A

 

Total interest-bearing liabilities
   (excluding non interest deposits)

 

 

1,639,599

 

 

 

3.18

%

 

 

1,582,598

 

 

 

3.70

%

 

 

57,001

 

 

 

(0.52

)%

Non-interest-bearing deposits

 

 

294,652

 

 

 

 

 

 

269,030

 

 

 

 

 

 

 

 

 

 

Total cost of funds

 

 

1,934,251

 

 

 

2.69

%

 

 

1,851,628

 

 

 

3.16

%

 

 

82,623

 

 

 

(0.47

)%

Accrued expenses and other liabilities

 

 

36,911

 

 

 

 

 

 

43,729

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

263,088

 

 

 

 

 

 

254,645

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’
   equity

 

$

2,234,250

 

 

 

 

 

$

2,150,002

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

3.11

%

 

 

 

 

 

2.64

%

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

3.77

%

 

 

 

 

 

3.41

%

 

 

 

 

 

 

Net interest margin (FTE) 1, 2

 

 

 

 

 

3.81

%

 

 

 

 

 

3.45

%

 

 

 

 

 

 

 

1
Includes federal and state tax effect of tax-exempt securities and loans.
2
This is a non-GAAP financial measure. For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.

10

 

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

 

 

For the Nine Months Ended September 30,

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

Change in

 

 

Change in

 

 

Average
Balance

 

 

Yield/
Rate

 

 

Average
Balance

 

 

Yield/
Rate

 

 

Average
Balance

 

 

Yield/
Rate

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

1,838,179

 

 

 

6.49

%

 

$

1,609,890

 

 

 

6.56

%

 

$

228,289

 

 

 

(0.07

)%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable available-for-sale

 

 

192,605

 

 

 

4.93

%

 

 

86,732

 

 

 

4.36

%

 

 

105,873

 

 

 

0.57

%

Tax-exempt available-for-sale

 

 

39,421

 

 

 

2.84

%

 

 

40,180

 

 

 

2.84

%

 

 

(759

)

 

 

(0.00

)%

Held-to-maturity

 

 

158

 

 

 

5.33

%

 

 

171

 

 

 

5.25

%

 

 

(13

)

 

 

0.08

%

Securities

 

 

232,184

 

 

 

4.58

%

 

 

127,083

 

 

 

3.88

%

 

 

105,101

 

 

 

0.70

%

Other interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold

 

 

34,339

 

 

 

4.41

%

 

 

138,843

 

 

 

5.43

%

 

 

(104,504

)

 

 

(1.02

)%

Other interest-earning assets

 

 

14,311

 

 

 

4.85

%

 

 

19,281

 

 

 

5.76

%

 

 

(4,970

)

 

 

(0.91

)%

Other interest-earning assets

 

 

48,650

 

 

 

4.54

%

 

 

158,124

 

 

 

5.47

%

 

 

(109,474

)

 

 

(0.93

)%

Total interest-earning assets

 

 

2,119,013

 

 

 

6.23

%

 

 

1,895,097

 

 

 

6.29

%

 

 

223,916

 

 

 

(0.06

)%

Total non-earning assets

 

 

169,000

 

 

 

 

 

 

144,630

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,288,013

 

 

 

 

 

$

2,039,727

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

312,254

 

 

 

2.00

%

 

$

244,271

 

 

 

1.93

%

 

$

67,983

 

 

 

0.07

%

Savings

 

 

170,320

 

 

 

2.28

%

 

 

151,884

 

 

 

2.57

%

 

 

18,436

 

 

 

(0.29

)%

Money market

 

 

469,202

 

 

 

3.13

%

 

 

399,253

 

 

 

3.92

%

 

 

69,949

 

 

 

(0.79

)%

Certificates of deposit

 

 

738,673

 

 

 

4.16

%

 

 

704,388

 

 

 

4.28

%

 

 

34,285

 

 

 

(0.12

)%

Total interest-bearing deposits

 

 

1,690,449

 

 

 

3.29

%

 

 

1,499,796

 

 

 

3.63

%

 

 

190,653

 

 

 

(0.34

)%

Non-interest bearing deposits

 

 

290,281

 

 

 

 

 

 

252,184

 

 

 

 

 

 

 

 

 

 

Total deposits

 

 

1,980,730

 

 

 

2.80

%

 

 

1,751,980

 

 

 

3.11

%

 

 

228,750

 

 

 

(0.31

)%

Borrowings

 

 

1,687

 

 

 

4.59

%

 

 

—

 

 

 

—

 

 

 

1,687

 

 

N/A

 

Total interest-bearing liabilities
   (excluding non interest deposits)

 

 

1,692,136

 

 

 

3.29

%

 

 

1,499,796

 

 

 

3.63

%

 

 

192,340

 

 

 

(0.34

)%

Non-interest-bearing deposits

 

 

290,281

 

 

 

 

 

 

252,184

 

 

 

 

 

 

 

 

 

 

Total cost of funds

 

 

1,982,417

 

 

 

2.80

%

 

 

1,751,980

 

 

 

3.11

%

 

 

230,437

 

 

 

(0.31

)%

Accrued expenses and other liabilities

 

 

41,599

 

 

 

 

 

 

42,239

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

263,997

 

 

 

 

 

 

245,508

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’
   equity

 

$

2,288,013

 

 

 

 

 

$

2,039,727

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

2.94

%

 

 

 

 

 

2.66

%

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

3.61

%

 

 

 

 

 

3.42

%

 

 

 

 

 

 

Net interest margin (FTE) 1, 2

 

 

 

 

 

3.65

%

 

 

 

 

 

3.46

%

 

 

 

 

 

 

 

1
Includes federal and state tax effect of tax-exempt securities and loans.
2
This is a non-GAAP financial measure. For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.

11

 

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

 

 

For the Three Months Ended

 

 

 

 

 

 

 

 

September 30, 2025

 

 

June 30, 2025

 

 

Change in

 

 

Change in

 

 

Average
Balance

 

 

Yield/
Rate

 

 

Average
Balance

 

 

Yield/
Rate

 

 

Average
Balance

 

 

Yield/
Rate

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

1,817,551

 

 

 

6.53

%

 

$

1,845,920

 

 

 

6.44

%

 

$

(28,369

)

 

 

0.09

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable available-for-sale

 

 

178,947

 

 

 

4.95

%

 

 

195,152

 

 

 

4.71

%

 

 

(16,205

)

 

 

0.24

%

Tax-exempt available-for-sale

 

 

39,269

 

 

 

2.83

%

 

 

39,025

 

 

 

2.86

%

 

 

244

 

 

 

(0.03

)%

Held-to-maturity

 

 

156

 

 

 

5.33

%

 

 

158

 

 

 

5.33

%

 

 

(2

)

 

 

—

 

Total Securities

 

 

218,372

 

 

 

4.57

%

 

 

234,335

 

 

 

4.40

%

 

 

(15,963

)

 

 

0.17

%

Other interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold

 

 

15,911

 

 

 

4.33

%

 

 

34,201

 

 

 

4.42

%

 

 

(18,290

)

 

 

(0.09

)%

Other interest-earning assets

 

 

12,156

 

 

 

4.92

%

 

 

14,790

 

 

 

4.91

%

 

 

(2,634

)

 

 

0.01

%

Other interest-earning assets

 

 

28,067

 

 

 

4.58

%

 

 

48,991

 

 

 

4.57

%

 

 

(20,924

)

 

 

0.01

%

Total interest-earning assets

 

 

2,063,990

 

 

 

6.29

%

 

 

2,129,246

 

 

 

6.17

%

 

 

(65,256

)

 

 

0.12

%

Total non-earning assets

 

 

170,260

 

 

 

 

 

 

165,803

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,234,250

 

 

 

 

 

$

2,295,049

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

297,455

 

 

 

2.06

%

 

$

314,336

 

 

 

2.00

%

 

$

(16,881

)

 

 

0.06

%

Savings

 

 

168,940

 

 

 

2.31

%

 

 

170,644

 

 

 

2.29

%

 

 

(1,704

)

 

 

0.02

%

Money market

 

 

466,459

 

 

 

3.16

%

 

 

464,917

 

 

 

3.14

%

 

 

1,542

 

 

 

0.02

%

Certificates of deposit

 

 

702,996

 

 

 

3.86

%

 

 

747,773

 

 

 

4.16

%

 

 

(44,777

)

 

 

(0.30

)%

Total interest-bearing deposits

 

 

1,635,850

 

 

 

3.17

%

 

 

1,697,670

 

 

 

3.29

%

 

 

(61,820

)

 

 

(0.12

)%

Non-interest bearing deposits

 

 

294,652

 

 

 

 

 

 

288,608

 

 

 

 

 

 

6,044

 

 

 

 

Total deposits

 

 

1,930,502

 

 

 

2.69

%

 

 

1,986,278

 

 

 

2.81

%

 

 

(55,776

)

 

 

(0.12

)%

Borrowings

 

 

3,749

 

 

 

4.72

%

 

 

1,259

 

 

 

4.18

%

 

 

2,490

 

 

 

0.54

%

Total interest-bearing liabilities
   (excluding non interest deposits)

 

 

1,639,599

 

 

 

3.18

%

 

 

1,698,929

 

 

 

3.29

%

 

 

(59,330

)

 

 

(0.11

)%

Non-interest-bearing deposits

 

 

294,652

 

 

 

 

 

 

288,608

 

 

 

 

 

 

6,044

 

 

 

—

 

Total cost of funds

 

 

1,934,251

 

 

 

2.69

%

 

 

1,987,537

 

 

 

2.81

%

 

 

(53,286

)

 

 

(0.12

)%

Accrued expenses and other liabilities

 

 

36,911

 

 

 

 

 

 

42,634

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

263,088

 

 

 

 

 

 

264,878

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’
   equity

 

$

2,234,250

 

 

 

 

 

$

2,295,049

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

3.11

%

 

 

 

 

 

2.88

%

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

3.77

%

 

 

 

 

 

3.54

%

 

 

 

 

 

 

Net interest margin (FTE) 1, 2

 

 

 

 

 

3.81

%

 

 

 

 

 

3.58

%

 

 

 

 

 

 

 

1
Includes federal and state tax effect of tax-exempt securities and loans.
2
This is a non-GAAP financial measure. For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.

12

 

Princeton Bancorp, Inc.

Quarterly Financial Highlights

(Unaudited)

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

September

 

 

June

 

 

March

 

 

December

 

 

September

 

Return on average assets

 

 

1.15

%

 

 

0.12

%

 

 

0.93

%

 

 

0.88

%

 

 

(0.82

)%

Return on average equity

 

 

9.75

%

 

 

1.04

%

 

 

8.26

%

 

 

7.97

%

 

 

(6.96

)%

Return on average tangible equity1

 

 

10.45

%

 

 

1.12

%

 

 

8.86

%

 

 

8.56

%

 

 

(7.25

)%

Net interest margin

 

 

3.77

%

 

 

3.54

%

 

 

3.51

%

 

 

3.28

%

 

 

3.41

%

Net interest margin (FTE)1

 

 

3.81

%

 

 

3.58

%

 

 

3.56

%

 

 

3.32

%

 

 

3.45

%

Adjusted efficiency ratio1

 

 

63.68

%

 

 

63.10

%

 

 

64.75

%

 

 

62.62

%

 

 

63.65

%

COMMON STOCK DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market value at period end

 

$

31.84

 

 

$

30.54

 

 

$

30.55

 

 

$

34.43

 

 

$

36.98

 

Market range:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High

 

$

34.84

 

 

$

32.97

 

 

$

34.31

 

 

$

38.90

 

 

$

39.12

 

Low

 

$

29.95

 

 

$

27.69

 

 

$

30.02

 

 

$

33.26

 

 

$

32.40

 

Book value per common share at period end

 

$

39.48

 

 

$

38.49

 

 

$

38.56

 

 

$

38.07

 

 

$

38.18

 

Tangible book value per common share1

 

$

36.80

 

 

$

35.91

 

 

$

36.00

 

 

$

35.45

 

 

$

35.52

 

Shares of common stock outstanding (in thousands)

 

 

6,773

 

 

 

6,806

 

 

 

6,923

 

 

 

6,883

 

 

 

6,849

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk-weighted assets)

 

 

13.78

%

 

 

13.05

%

 

 

13.67

%

 

 

13.52

%

 

 

13.17

%

Tier 1 capital (to risk-weighted assets)

 

 

12.73

%

 

 

12.01

%

 

 

12.48

%

 

 

12.34

%

 

 

12.02

%

Tier 1 capital (to average assets)

 

 

11.15

%

 

 

10.63

%

 

 

10.91

%

 

 

10.58

%

 

 

11.44

%

Equity to assets

 

 

11.96

%

 

 

11.69

%

 

 

11.52

%

 

 

11.20

%

 

 

11.11

%

Tangible equity to tangible assets1

 

 

11.27

%

 

 

10.99

%

 

 

10.83

%

 

 

10.51

%

 

 

10.41

%

CREDIT QUALITY DATA (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

(86

)

 

$

9,859

 

 

$

(60

)

 

$

86

 

 

$

108

 

Annualized net charge-offs (recoveries) to average
   loans

 

 

(0.019

)%

 

 

2.136

%

 

 

(0.013

)%

 

 

0.019

%

 

 

0.026

%

Nonperforming loans

 

$

16,710

 

 

$

16,530

 

 

$

26,522

 

 

$

26,841

 

 

$

2,330

 

Other real estate owned

 

 

—

 

 

 

—

 

 

 

—

 

 

 

295

 

 

 

—

 

Total nonperforming assets

 

$

16,710

 

 

$

16,530

 

 

$

26,522

 

 

$

27,136

 

 

$

2,330

 

Allowance for credit losses as a percent of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-end loans, net of deferred fees and costs

 

 

1.14

%

 

 

1.14

%

 

 

1.29

%

 

 

1.30

%

 

 

1.27

%

Nonperforming loans

 

 

122.33

%

 

 

127.13

%

 

 

90.27

%

 

 

88.14

%

 

 

995.85

%

Nonperforming assets

 

 

122.33

%

 

 

127.13

%

 

 

90.27

%

 

 

87.18

%

 

 

995.85

%

Nonaccrual loans as a percent of total loans, net of
   deferred fees and costs

 

 

0.93

%

 

 

0.90

%

 

 

1.43

%

 

 

1.48

%

 

 

0.13

%

 

1
This is a non-GAAP financial measure. For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.

13

 

Princeton Bancorp, Inc

Supplemental Information – Non-GAAP Financial Measures

(Unaudited)

This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of its performance. These non-GAAP financial measures are “tangible book value per common share,” “return on average tangible equity,” “efficiency ratio,” “adjusted efficiency ratio,” “tangible equity to tangible assets,” and “net interest margin on a fully taxable equivalent.” For the purpose of calculating return on average tangible equity, net income for such period is annualized and divided by average tangible equity during such period. Average tangible equity equals average shareholders’ equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating tangible equity to tangible assets, tangible equity is divided by tangible assets. Tangible equity equals total shareholders’ equity less goodwill and other intangible assets, in each case at period end. Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end. For the purpose of calculating tangible book value per common share, tangible equity is divided by the number of common shares outstanding, in each case at period end. For the purpose of calculating efficiency ratio, total operating expense is divided by total revenue for the period. For the purpose of calculating adjusted efficiency ratio, total operating expense minus core deposit intangible amortization and merger-related expenses is divided by total revenue for the period. For the purpose of calculating net interest margin on a fully taxable equivalent, fully taxable equivalent adjustments are added to net interest income for the period, net interest income fully taxable equivalent for such period is annualized and divided by average interest earning assets during such period. Adjusted earnings per share and adjusted diluted earnings per share are calculated by dividing net income adjusted for the provision for credit loss on non-purchase credit deteriorated loans and merger-related expenses by weighted outstanding shares.

Management believes that these non-GAAP financial measures provide valuable insights into understanding our financial results by excluding certain items that can distort our core business results. This allows investors to better understand our ongoing operations and assess our future potential, while still being transparent about the adjustments made to arrive at these non-GAAP figures. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

In addition to the items noted above, defined footnotes are included in the Supplemental Information – Non-GAAP Financial Measures table below. Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period. Fully taxable equivalent adjustment is calculated using tax exempt loan income plus tax exempt securities income for the period, multiplied by a tax rate of 28%.

14

 

Princeton Bancorp, Inc.

Supplemental Information - Non-GAAP Financial Measures

(Unaudited)

(Dollars in thousands)

 

 

Three months ended

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

September

 

 

June

 

 

March

 

 

December

 

 

September

 

Net (loss) income (annualized)1

 

$

25,653

 

 

$

2,760

 

 

$

21,811

 

 

$

20,794

 

 

$

(17,727

)

Average equity2

 

 

263,088

 

 

 

264,878

 

 

 

264,034

 

 

 

261,057

 

 

 

254,645

 

Less: average intangible assets3

 

 

(17,493

)

 

 

(17,701

)

 

 

(17,929

)

 

 

(18,148

)

 

 

(10,096

)

Average Tangible Equity

 

$

245,595

 

 

$

247,177

 

 

$

246,105

 

 

$

242,909

 

 

$

244,549

 

Return on average tangible equity

 

 

10.45

%

 

 

1.12

%

 

 

8.86

%

 

 

8.56

%

 

 

(7.25

)%

Net interest income

 

$

19,619

 

 

$

18,810

 

 

$

18,757

 

 

$

18,007

 

 

$

17,109

 

Other income

 

 

1,908

 

 

 

2,251

 

 

 

2,190

 

 

 

2,027

 

 

 

2,056

 

Total revenue

 

 

21,527

 

 

 

21,061

 

 

 

20,947

 

 

 

20,034

 

 

 

19,165

 

Non-interest expenses

 

$

13,917

 

 

$

13,509

 

 

$

13,792

 

 

$

12,773

 

 

$

20,144

 

Less: core deposit intangible amortization

 

 

(209

)

 

 

(219

)

 

 

(228

)

 

 

(228

)

 

 

(143

)

Less: merger-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,803

)

Total operating expenses

 

$

13,708

 

 

$

13,290

 

 

$

13,564

 

 

$

12,545

 

 

$

12,198

 

Adjusted efficiency ratio

 

 

63.68

%

 

 

63.10

%

 

 

64.75

%

 

 

62.62

%

 

 

63.65

%

Total Assets

 

$

2,229,090

 

 

$

2,241,668

 

 

$

2,318,097

 

 

$

2,340,233

 

 

$

2,354,730

 

Less: intangible assets

 

 

(17,357

)

 

 

(17,566

)

 

 

(17,784

)

 

 

(18,013

)

 

 

(18,241

)

Tangible assets

 

$

2,211,733

 

 

$

2,224,102

 

 

$

2,300,313

 

 

$

2,322,220

 

 

$

2,336,489

 

Stockholders’ equity

 

$

266,607

 

 

$

261,946

 

 

$

266,987

 

 

$

262,040

 

 

$

261,502

 

Less: intangible assets

 

 

(17,357

)

 

 

(17,566

)

 

 

(17,784

)

 

 

(18,013

)

 

 

(18,241

)

Tangible equity

 

$

249,250

 

 

$

244,380

 

 

$

249,203

 

 

$

244,027

 

 

$

243,261

 

Tangible equity to tangible assets

 

 

11.27

%

 

 

10.99

%

 

 

10.83

%

 

 

10.51

%

 

 

10.41

%

Tangible equity

 

$

249,250

 

 

$

244,380

 

 

$

249,203

 

 

$

244,027

 

 

$

243,261

 

Shares outstanding (in thousands)

 

 

6,773

 

 

 

6,806

 

 

 

6,923

 

 

 

6,883

 

 

 

6,849

 

Tangible book value per share

 

$

36.80

 

 

$

35.91

 

 

$

36.00

 

 

$

35.45

 

 

$

35.52

 

 

1
Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year.
2
Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period.
3
Average intangible assets is calculated using the sum of daily equity balance for the period, divided by the number of days in the period.

 

 

Three months ended

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

September

 

 

June

 

 

March

 

 

December

 

 

September

 

Net interest income

 

$

19,619

 

 

$

18,810

 

 

$

18,757

 

 

$

18,007

 

 

$

17,109

 

FTE adjustment3

 

 

211

 

 

 

212

 

 

 

250

 

 

 

241

 

 

 

211

 

Net interest income FTE

 

$

19,830

 

 

$

19,022

 

 

$

19,007

 

 

$

18,248

 

 

$

17,320

 

Net interest income FTE (annualized)1

 

$

78,675

 

 

$

76,297

 

 

$

77,083

 

 

$

72,595

 

 

$

68,902

 

Average interest earning assets

 

 

2,063,990

 

 

 

2,129,246

 

 

 

2,164,911

 

 

 

2,185,859

 

 

 

1,998,226

 

Net interest margin FTE

 

 

3.81

%

 

 

3.58

%

 

 

3.56

%

 

 

3.32

%

 

 

3.45

%

 

15

 

 

 

Nine-months ended

 

 

2025

 

 

2024

 

 

September

 

 

September

 

Net interest income

 

$

57,186

 

 

$

48,525

 

FTE adjustment3

 

 

673

 

 

 

612

 

Net interest income FTE

 

$

57,859

 

 

$

49,137

 

Net interest income FTE (annualized)1

 

$

77,357

 

 

$

65,635

 

Average interest earning assets

 

 

2,119,013

 

 

 

1,895,097

 

Net interest margin FTE

 

 

3.65

%

 

 

3.46

%

 

1
Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year.
3
Fully taxable equivalent adjustment is calculated using tax exempt loan income plus tax exempt securities income for the period, multiplied by a tax rate of 28%.

16