Exhibit 99.1
For Immediate Release
Contact George Rapp
609.454.0718
grapp@thebankofprinceton.com
Princeton Bancorp Announces
Second Quarter 2025 Results
Princeton, NJ, July 24, 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 and results of operations for the quarter and six months ended June 30, 2025.
President/CEO Edward Dietzler commented on the quarter results, “Although we were disappointed with the large previously disclosed credit loss recorded in the second quarter, we are encouraged by the improvement in net interest income and in non-interest income, as well as a reduction in operating expenses this quarter, reflecting improvement in our earnings excluding our provision for credit losses. Additionally, we repurchased 173 thousand shares of our common stock at an average price of $31.14 as part of the share repurchase program. We expect stronger earnings in the second half of 2025.”
The Company reported net income of $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025, compared to $5.4 million, or $0.77 per diluted common share, for the first quarter of 2025, and net income of $5.1 million, or $0.80 per diluted common share, for the second quarter of 2024. The decrease in net income for the second quarter of 2025 when compared to the first quarter of 2025 was primarily due to an increase in provision for credit losses of $6.7 million partially offset by a decrease in non-interest expense of $283 thousand, an increase in net-interest income of $53 thousand, an increase in non-interest income of $61 thousand and a decrease in income tax expense of $1.6 million. The decrease in net income for the second quarter of 2025 when compared to the second quarter of 2024 was primarily due to increases in the provision for credit losses of $7.1 million and in non-interest expense of $1.5 million , partially offset by increases of $2.8 million in net-interest income and $164 thousand in non-interest income, and a decrease of $1.1 million in income tax expense.
Review of Statements of Financial Condition
Total assets were $2.24 billion at June 30, 2025, a decrease of $98.6 million, or 4.21% 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 $96.3 million and investment securities of $22.4 million, partially offset by an increase in net loans of $20.4 million. The increase in the Company’s net loans consisted of increases of $40.5 million in residential mortgages, and $3.3 million in home equity and consumer loans, partially offset by decreases of $14.4 million in commercial and industrial loans, $6.8 million in commercial real estate loans and $1.8 million in construction loans.
Total deposits on June 30, 2025, decreased $100.3 million, or 4.93%, when compared to December 31, 2024. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $52.7 million, money market deposits of $27.3 million, and interest-bearing demand deposits of $17.9 million. The decrease in the certificates was strategically planned, including a reduction in brokered deposits of $26 million, of which was not replenished as was a pricing structure designed to reduce the bank’s cost of funds. On balance sheet liquidity remains strong at June 30, 2025.
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Total stockholders’ equity at June 30, 2025, decreased $94 thousand or 0.04% when compared to December 31, 2024. The decrease was primarily due to a $5.6 million increase in purchases of treasury stock, partially offset by an increase in retained earnings of $1.8 million (which consisted of $6.1 million in net income, partially offset by $4.3 million of cash dividends recorded during the period), an increase in paid-in capital of $1.8 million, and a decrease in accumulated other comprehensive loss of $1.9 million. The ratio of equity to total assets at June 30, 2025, and at December 31, 2024, was 11.7% and 11.2%, respectively.
Asset Quality
At June 30, 2025, non-performing assets totaled $16.5 million, a decrease of $10.6 million when compared to the amount at December 31, 2024.
Review of Quarterly and Six-Month Financial Results
Net interest income was $18.8 million for the second quarter of 2025, an increase of $53 thousand over the first quarter of 2025, and an increase of $2.8 million compared to $16.0 million for the second quarter of 2024. While net interest income was relatively consistent with the prior 2025 quarter, interest expense decreased $592 thousand, or 4.1%, partially offset by a decrease in interest income of $539 thousand, or 1.6%. The net interest margin for the second quarter of 2025 was 3.54%, an increase of 3 basis points when compared to the first quarter of 2025, and an increase of 10 basis points when compared to the second quarter of 2024. When comparing the second quarter of 2025 and the first 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 $41.3 million and as well as a decrease in the Company’s cost of funds of 10 basis points. The decrease in interest income for the second quarter was due to a $35.7 million decrease in average interest-earning assets (caused mostly by a $19.1 million reduction in the average balance of Federal funds sold, a $9.8 million reduction in the average balance of total securities, and a $5.5 million reduction in the average balance of loans), and a 7-basis point decrease in the yield on interest-earning assets when compared to the first quarter of 2025. For the six-month period ended June 30, 2025, the Company recorded net income of $6.1 million, or $0.88 per diluted common share, compared to $9.5 million, or $1.48 per diluted common share, for the same period in 2024. The decrease was primarily due to the charge-off recorded in the second quarter of 2025 and discussed below.
When comparing the second quarter of 2025 and second quarter of 2024, net-interest income increased by $2.8 million, which was primarily due to an increase in average interest-earning assets of $261.2 million and the Bank’s cost of funds decreasing by 32 basis points. These were partially offset by the increase in average interest-bearing deposits of $213.9 million, and a decrease of 16 basis points in the yield earned on interest-earning assets.
The Company recorded a provision for credit losses of $7.0 million during the second quarter of 2025, primarily associated with the charge-off of $9.9 million previously disclosed on the Company’s Form 8-K filed with the Securities and Exchange Commission on May 28, 2025. The charge-off included a $2.4 million specific reserve that had previously been reserved in the allowance for loan losses and as well as changes in the composition in the allowance for loan losses consistent with typical business activity. The current quarter’s provision recorded on the Company’s statements of income was $6.7 million higher when compared to the provision for credit losses for the first quarter of 2025 and was $7.1 million higher when compared to the second quarter of 2024. For the second quarter of 2025, the Company recorded charge-offs of $9.9 million and recoveries of $90 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.14% at June 30, 2025, and 1.30% at December 31, 2024.
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Total non-interest income of $2.3 million for the second quarter of 2025 increased $61 thousand or 2.8% when compared to the first quarter of 2025 and increased $164 thousand or 7.9% when compared to the second quarter of 2024. The increase in the second quarter of 2025 when compared to the first quarter of 2025 was due to an increase of $40 thousand in fees and service charges, an increase of $28 thousand in loan fees, and an increase of $23 thousand in income from bank-owned life insurance, partially offset by a decrease in other non-interest income of $30 thousand. The increase over the prior year’s second quarter was primarily due to an increase in other non-interest income of $206 thousand, and an increase in income from bank owned life insurance of $106 thousand, partially offset by a decrease in loan fees of $234 thousand.
Total non-interest expense of $13.5 million for the second quarter of 2025 decreased $283 thousand, or 2.1%, when compared to the first quarter of 2025. This decrease over the prior quarter was primarily due to decreases in occupancy and equipment of $138 thousand, federal deposit insurance expense of $118 thousand, data processing and communications expenses of $83 thousand, and salaries and employee benefits expense of $79 thousand, partially offset by an increase in office expense of $128 thousand, and in other non-interest expense of $102 thousand. Total non-interest expense for the second quarter of 2025 increased $1.5 million or 12.5% when compared to the second quarter of 2024. This increase was primarily related to increases in salaries and employee benefits expense of $650 thousand, occupancy and equipment expense of $297 thousand, data processing and communications expense of $139 thousand, federal deposit insurance expense of $136 thousand, professional fees of $119 thousand, and core deposit intangible expense of $108 thousand, all primarily associated with the Cornerstone Bank acquisition in the third quarter of 2024.
For the quarter ended June 30, 2025, the Company recorded an income tax benefit of ($92) thousand, resulting in an effective tax rate of (15.4)%, which was primarily the result of the loan loss provision, compared to an income tax expense of $1.5 million resulting in an effective tax rate of 21.9% for the quarter ended March 31, 2025 and compared to an income tax expense of $1.0 million resulting in an effective tax rate of 16.8% for the quarter ended June 30, 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.
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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 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 integration of the businesses of the Company and Cornerstone Bank acquired in 2024; 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 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)
| June 30, 2025 vs | June 30, 2025 vs | |||||||||||||||||||||||||||
| June 30, | December 31, | June 30, | December 31, 2024 | June 30, 2024 | ||||||||||||||||||||||||
| 2025 | 2024 | 2024 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||
| ASSETS |
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| Cash and cash equivalents |
$ | 21,094 | $ | 117,348 | $ | 151,305 | $ | (96,254 | ) | (82.02 | )% | $ | (130,211 | ) | (86.06 | )% | ||||||||||||
| Securities available-for-sale taxable |
185,177 | 207,442 | 92,001 | (22,265 | ) | (10.73 | ) | 93,176 | 101.28 | |||||||||||||||||||
| Securities available-for-sale tax-exempt |
39,586 | 39,729 | 39,688 | (143 | ) | (0.36 | ) | (102 | ) | (0.26 | ) | |||||||||||||||||
| Securities held-to-maturity |
157 | 161 | 165 | (4 | ) | (2.48 | ) | (8 | ) | (4.85 | ) | |||||||||||||||||
| Loans receivable, net of deferred loan fees |
1,839,228 | 1,818,875 | 1,573,352 | 20,353 | 1.12 | 265,876 | 16.90 | |||||||||||||||||||||
| Allowance for credit losses |
(21,014 | ) | (23,657 | ) | (18,464 | ) | 2,643 | (11.17 | ) | (2,550 | ) | 13.81 | ||||||||||||||||
| Goodwill |
14,381 | 14,381 | 8,853 | — | — | 5,528 | 62.44 | |||||||||||||||||||||
| Core deposit intangible |
3,185 | 3,632 | 1,191 | (447 | ) | (12.31 | ) | 1,994 | 167.42 | |||||||||||||||||||
| Other real estate owened |
— | 295 | — | (295 | ) | (100.00 | ) | — | N/A | |||||||||||||||||||
| Other assets |
159,874 | 162,027 | 135,850 | (2,153 | ) | (1.33 | ) | 24,024 | 17.68 | |||||||||||||||||||
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| TOTAL ASSETS |
$ | 2,241,668 | $ | 2,340,233 | $ | 1,983,941 | $ | (98,565 | ) | (4.21 | )% | $ | 257,727 | 12.99 | % | |||||||||||||
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| LIABILITIES |
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| Non-interest checking |
$ | 299,902 | $ | 300,972 | $ | 245,073 | $ | (1,070 | ) | (0.36 | )% | $ | 54,829 | 22.37 | % | |||||||||||||
| Interest checking |
282,656 | 300,559 | 223,759 | (17,903 | ) | (5.96 | ) | 58,897 | 26.32 | |||||||||||||||||||
| Savings |
169,663 | 170,880 | 146,935 | (1,217 | ) | (0.71 | ) | 22,728 | 15.47 | |||||||||||||||||||
| Money market |
463,206 | 490,543 | 403,926 | (27,337 | ) | (5.57 | ) | 59,280 | 14.68 | |||||||||||||||||||
| Time deposits over $250,000 |
220,474 | 208,858 | 154,605 | 11,616 | 5.56 | 65,869 | 42.60 | |||||||||||||||||||||
| Other time deposits |
496,471 | 560,813 | 524,774 | (64,342 | ) | (11.47 | ) | (28,303 | ) | (5.39 | ) | |||||||||||||||||
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| Total deposits |
1,932,372 | 2,032,625 | 1,699,072 | (100,253 | ) | (4.93 | ) | 233,300 | 13.73 | |||||||||||||||||||
| Borrowings |
10,000 | — | — | 10,000 | 100.00 | 10,000 | N/A | |||||||||||||||||||||
| Other liabilities |
37,350 | 45,568 | 40,028 | (8,218 | ) | (18.03 | ) | (2,678 | ) | (6.69 | ) | |||||||||||||||||
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| TOTAL LIABILITIES |
1,979,722 | 2,078,193 | 1,739,100 | (98,471 | ) | (4.74 | ) | 240,622 | 13.84 | |||||||||||||||||||
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| STOCKHOLDERS’ EQUITY |
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| Paid-in capital |
121,684 | 119,908 | 99,179 | 1,776 | 1.48 | 22,505 | 22.69 | |||||||||||||||||||||
| Treasury stock 1 |
(6,413 | ) | (842 | ) | (842 | ) | (5,571 | ) | 661.64 | (5,571 | ) | 661.64 | ||||||||||||||||
| Retained earnings |
153,718 | 151,915 | 155,083 | 1,803 | 1.19 | (1,365 | ) | (0.88 | ) | |||||||||||||||||||
| Accumulated other comprehensive income (loss) |
(7,043 | ) | (8,941 | ) | (8,579 | ) | 1,898 | (21.23 | ) | 1,536 | (17.90 | ) | ||||||||||||||||
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| TOTAL STOCKHOLDERS’ EQUITY |
261,946 | 262,040 | 244,841 | (94 | ) | (0.04 | ) | 17,105 | 6.99 | |||||||||||||||||||
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| TOTAL LIABILITIES |
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| AND STOCKHOLDERS’ EQUITY |
$ | 2,241,668 | $ | 2,340,233 | $ | 1,983,941 | $ | (98,565 | ) | (4.21 | )% | $ | 257,727 | 12.99 | % | |||||||||||||
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| Book value per common share |
$ | 38.49 | $ | 38.07 | $ | 38.54 | $ | 0.42 | 1.10 | % | $ | (0.05 | ) | (0.13 | )% | |||||||||||||
| Tangible book value per common share 2 |
$ | 35.91 | $ | 35.45 | $ | 36.96 | $ | 0.46 | 1.30 | % | $ | (1.05 | ) | (2.84 | )% | |||||||||||||
| 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 informaion, 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 June 30, 2025 and December 31, 2024 were as follows:
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Commercial real estate |
$ | 1,378,327 | $ | 1,385,085 | ||||
| Commercial and industrial |
78,409 | 92,857 | ||||||
| Construction |
255,335 | 257,169 | ||||||
| Residential first-lien mortgages |
108,558 | 68,030 | ||||||
| Home equity / consumer |
21,416 | 18,133 | ||||||
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| Total loans |
1,842,045 | 1,821,274 | ||||||
| Deferred fees and costs |
(2,817 | ) | (2,399 | ) | ||||
| Allowance for credit losses |
(21,014 | ) | (23,657 | ) | ||||
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| Loans, net |
$ | 1,818,214 | $ | 1,795,218 | ||||
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The components of deposits at June 30, 2025 and December 31, 2024 were as follows:
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Demand, non-interest-bearing |
$ | 299,902 | $ | 300,972 | ||||
| Demand, interest-bearing |
282,656 | 300,559 | ||||||
| Savings |
169,663 | 170,880 | ||||||
| Money market |
463,206 | 490,543 | ||||||
| Time deposits |
716,945 | 769,671 | ||||||
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| Total deposits |
$ | 1,932,372 | $ | 2,032,625 | ||||
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6
Princeton Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
(Amounts in thousands except per share data)
| Three Months Ended June 30, | ||||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||||
| Interest and dividend income |
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| Loans and fees |
$ | 29,620 | $ | 26,034 | $ | 3,586 | 13.8 | % | ||||||||
| Available-for-sale debt securities: |
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| Taxable |
2,298 | 1,001 | 1,297 | 129.6 | % | |||||||||||
| Tax-exempt |
279 | 286 | (7 | ) | -2.4 | % | ||||||||||
| Held-to-maturity debt securities |
2 | 3 | (1 | ) | -33.3 | % | ||||||||||
| Other interest and dividend income |
557 | 2,086 | (1,529 | ) | -73.3 | % | ||||||||||
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| Total interest and dividends |
32,756 | 29,410 | 3,346 | 11.4 | % | |||||||||||
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| Interest expense |
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| Deposits |
13,933 | 13,442 | 491 | 3.7 | % | |||||||||||
| Borrowings |
13 | — | 13 | N/A | ||||||||||||
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| Total interest expense |
13,946 | 13,442 | 504 | 3.7 | % | |||||||||||
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| Net interest income |
18,810 | 15,968 | 2,842 | 17.8 | % | |||||||||||
| Provision for (reversal of) credit losses |
6,956 | (118 | ) | 7,074 | -5994.9 | % | ||||||||||
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| Net interest income after provision for (reversal of) credit losses |
11,854 | 16,086 | (4,232 | ) | -26.3 | % | ||||||||||
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| Non-interest income |
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| Income from bank-owned life insurance |
494 | 388 | 106 | 27.3 | % | |||||||||||
| Fees and service charges |
551 | 465 | 86 | 18.5 | % | |||||||||||
| Loan fees, including prepayment penalties |
703 | 937 | (234 | ) | -25.0 | % | ||||||||||
| Other |
503 | 297 | 206 | 69.4 | % | |||||||||||
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| Total non-interest income |
2,251 | 2,087 | 164 | 7.9 | % | |||||||||||
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| Non-interest expense |
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| Salaries and employee benefits |
7,093 | 6,443 | 650 | 10.1 | % | |||||||||||
| Occupancy and equipment |
2,147 | 1,850 | 297 | 16.1 | % | |||||||||||
| Professional fees |
721 | 602 | 119 | 19.8 | % | |||||||||||
| Data processing and communications |
1,543 | 1,404 | 139 | 9.9 | % | |||||||||||
| Federal deposit insurance |
415 | 279 | 136 | 48.7 | % | |||||||||||
| Advertising and promotion |
152 | 156 | (4 | ) | -2.6 | % | ||||||||||
| Office expense |
238 | 155 | 83 | 53.5 | % | |||||||||||
| Core deposit intangible |
219 | 111 | 108 | 97.3 | % | |||||||||||
| Other |
981 | 1,009 | (28 | ) | -2.8 | % | ||||||||||
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| Total non-interest expense |
13,509 | 12,009 | 1,500 | 12.5 | % | |||||||||||
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| Income before income tax expense |
596 | 6,164 | (5,568 | ) | -90.3 | % | ||||||||||
| Income tax (benefit) expense |
(92 | ) | 1,038 | (1,130 | ) | -108.9 | % | |||||||||
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| Net income |
$ | 688 | $ | 5,126 | (4,438 | ) | -86.6 | % | ||||||||
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| Net income per common share - basic |
$ | 0.10 | $ | 0.81 | $ | (0.71 | ) | -87.7 | % | |||||||
| Net income per common share - diluted |
$ | 0.10 | $ | 0.80 | $ | (0.70 | ) | -87.5 | % | |||||||
| Weighted average shares outstanding - basic |
6,867 | 6,334 | 533 | 8.4 | % | |||||||||||
| Weighted average shares outstanding - diluted |
6,895 | 6,420 | 475 | 7.4 | % | |||||||||||
7
Princeton Bancorp, Inc.
Consolidated Statements of Income (Current Quarter vs Prior Quarter)
(Unaudited)
(Amounts in thousands, except per share data)
| Three Months Ended | ||||||||||||||||
| June 30, | March 31, | |||||||||||||||
| 2025 | 2025 | $ Change | % Change | |||||||||||||
| Interest and dividend income |
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| Loans and fees |
$ | 29,620 | $ | 29,624 | $ | (4 | ) | 0.0 | % | |||||||
| Available-for-sale debt securities: |
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| Taxable |
2,298 | 2,616 | (318 | ) | -12.2 | % | ||||||||||
| Tax-exempt |
279 | 284 | (5 | ) | -1.8 | % | ||||||||||
| Held-to-maturity debt securities |
2 | 2 | — | 0.0 | % | |||||||||||
| Other interest and dividend income |
557 | 769 | (212 | ) | -27.6 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total interest and dividends |
32,756 | 33,295 | (539 | ) | -1.6 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Interest expense |
||||||||||||||||
| Deposits |
13,933 | 14,538 | (605 | ) | -4.2 | % | ||||||||||
| Borrowings |
13 | — | 13 | N/A | ||||||||||||
|
|
|
|
|
|||||||||||||
| Total interest expense |
13,946 | 14,538 | (592 | ) | -4.1 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Net interest income |
18,810 | 18,757 | 53 | 0.3 | % | |||||||||||
| Provision for credit losses |
6,956 | 268 | 6,688 | 2495.5 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Net interest income after provision for credit losses |
11,854 | 18,489 | (6,635 | ) | -35.9 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Non-interest income |
||||||||||||||||
| Income from bank-owned life insurance |
494 | 471 | 23 | 4.9 | % | |||||||||||
| Fees and service charges |
551 | 511 | 40 | 7.8 | % | |||||||||||
| Loan fees, including prepayment penalties |
703 | 675 | 28 | 4.1 | % | |||||||||||
| Other |
503 | 533 | (30 | ) | -5.6 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total non-interest income |
2,251 | 2,190 | 61 | 2.8 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Non-interest expense |
||||||||||||||||
| Salaries and employee benefits |
7,093 | 7,172 | (79 | ) | -1.1 | % | ||||||||||
| Occupancy and equipment |
2,147 | 2,285 | (138 | ) | -6.0 | % | ||||||||||
| Professional fees |
721 | 761 | (40 | ) | -5.3 | % | ||||||||||
| Data processing and communications |
1,543 | 1,626 | (83 | ) | -5.1 | % | ||||||||||
| Federal deposit insurance |
415 | 533 | (118 | ) | -22.1 | % | ||||||||||
| Advertising and promotion |
152 | 171 | (19 | ) | -11.1 | % | ||||||||||
| Office expense |
238 | 110 | 128 | 116.4 | % | |||||||||||
| Other real estate owned expense |
— | 27 | (27 | ) | -100.0 | % | ||||||||||
| Core deposit intangible |
219 | 228 | (9 | ) | -3.9 | % | ||||||||||
| Other |
981 | 879 | 102 | 11.6 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Total non-interest expense |
13,509 | 13,792 | (283 | ) | -2.1 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Income before income tax expense |
596 | 6,887 | (6,291 | ) | 91.3 | % | ||||||||||
| Income tax (benefit) expense |
(92 | ) | 1,509 | (1,601 | ) | 106.1 | % | |||||||||
|
|
|
|
|
|||||||||||||
| Net income |
$ | 688 | $ | 5,378 | $ | (4,690 | ) | 87.2 | % | |||||||
|
|
|
|
|
|||||||||||||
| Net income per common share - basic |
$ | 0.10 | $ | 0.78 | $ | (0.68 | ) | 87.2 | % | |||||||
| Net income per common share - diluted |
$ | 0.10 | $ | 0.77 | $ | (0.67 | ) | 87.0 | % | |||||||
| Weighted average shares outstanding - basic |
6,867 | 6,905 | (38 | ) | -0.6 | % | ||||||||||
| Weighted average shares outstanding - diluted |
6,895 | 6,964 | (69 | ) | -1.0 | % | ||||||||||
8
Princeton Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except per share data)
| Six Months Ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||||
| Interest and dividend income |
||||||||||||||||
| Loans and fees |
$ | 59,244 | $ | 50,974 | $ | 8,270 | 16.2 | % | ||||||||
| Available-for-sale debt securities: |
||||||||||||||||
| Taxable |
4,914 | 1,565 | 3,349 | 214.0 | % | |||||||||||
| Tax-exempt |
563 | 572 | (9 | ) | -1.6 | % | ||||||||||
| Held-to-maturity debt securities |
4 | 5 | (1 | ) | -20.0 | % | ||||||||||
| Other interest and dividend income |
1,326 | 4,360 | (3,034 | ) | -69.6 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total interest and dividends |
66,051 | 57,476 | 8,575 | 14.9 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Interest expense |
||||||||||||||||
| Deposits |
28,471 | 26,060 | 2,411 | 9.3 | % | |||||||||||
| Borrowings |
13 | — | 13 | N/A | ||||||||||||
|
|
|
|
|
|||||||||||||
| Total interest expense |
28,484 | 26,060 | 2,424 | 9.3 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Net interest income |
37,567 | 31,416 | 6,151 | 19.6 | % | |||||||||||
| Provision for credit losses |
7,224 | 68 | 7,156 | 10523.5 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Net interest income after provision for credit losses |
30,343 | 31,348 | (1,005 | ) | -3.2 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Non-Interest income |
||||||||||||||||
| Income from bank-owned life insurance |
965 | 769 | 196 | 25.5 | % | |||||||||||
| Fees and service charges |
1,062 | 897 | 165 | 18.4 | % | |||||||||||
| Loan fees, including prepayment penalties |
1,378 | 1,661 | (283 | ) | -17.0 | % | ||||||||||
| Other |
1,036 | 745 | 291 | 39.1 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Total non-interest income |
4,441 | 4,072 | 369 | 9.1 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Non-interest expense |
||||||||||||||||
| Salaries and employee benefits |
14,265 | 12,963 | 1,302 | 10.0 | % | |||||||||||
| Occupancy and equipment |
4,432 | 3,879 | 553 | 14.3 | % | |||||||||||
| Professional fees |
1,482 | 1,126 | 356 | 31.6 | % | |||||||||||
| Data processing and communications |
3,169 | 2,564 | 605 | 23.6 | % | |||||||||||
| Federal deposit insurance |
948 | 552 | 396 | 71.7 | % | |||||||||||
| Advertising and promotion |
323 | 298 | 25 | 8.4 | % | |||||||||||
| Office expense |
348 | 274 | 74 | 27.0 | % | |||||||||||
| Other real estate owned expense |
27 | — | 27 | N/A | ||||||||||||
| Core deposit intangible |
447 | 231 | 216 | 93.5 | % | |||||||||||
| Other |
1,860 | 1,958 | (98 | ) | -5.0 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total non-interest expense |
27,301 | 23,845 | 3,456 | 14.5 | % | |||||||||||
|
|
|
|
|
|||||||||||||
| Income before income tax expense |
7,483 | 11,575 | (4,092 | ) | -35.4 | % | ||||||||||
| Income tax expense |
1,417 | 2,104 | (687 | ) | -32.7 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Net income |
$ | 6,066 | $ | 9,471 | $ | (3,405 | ) | -36.0 | % | |||||||
|
|
|
|
|
|||||||||||||
| Net income per common share - basic |
$ | 0.88 | $ | 1.50 | $ | (0.61 | ) | -40.8 | % | |||||||
| Net income per common share - diluted |
$ | 0.88 | $ | 1.48 | $ | (0.60 | ) | -40.6 | % | |||||||
| Weighted average shares outstanding - basic |
6,886 | 6,331 | 555 | 8.8 | % | |||||||||||
| Weighted average shares outstanding - diluted |
6,929 | 6,411 | 518 | 8.1 | % | |||||||||||
9
Princeton Bancorp, Inc.
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)
| For the Three Months Ended June 30, | Change in Average Balance |
Change in Yield/ Rate |
||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
| Balance | Rate | Balance | Rate | |||||||||||||||||||||
| Earning assets |
||||||||||||||||||||||||
| Loans |
$ | 1,845,920 | 6.44 | % | $ | 1,585,876 | 6.60 | % | $ | 260,044 | -0.16 | % | ||||||||||||
| Securities |
||||||||||||||||||||||||
| Taxable available-for-sale |
195,152 | 4.71 | % | 89,547 | 4.47 | % | 105,605 | 0.24 | % | |||||||||||||||
| Tax-exempt available-for-sale |
39,025 | 2.86 | % | 39,756 | 2.88 | % | (731 | ) | -0.02 | % | ||||||||||||||
|
Held-to-maturity |
158 | 5.33 | % | 166 | 5.33 | % | (8 | ) | 0.00 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total Securities |
234,335 | 4.40 | % | 129,469 | 3.98 | % | 104,866 | 0.42 | % | |||||||||||||||
| Other interest earning assets |
||||||||||||||||||||||||
| Federal funds sold |
34,201 | 4.42 | % | 133,336 | 5.45 | % | (99,135 | ) | -1.03 | % | ||||||||||||||
| Other interest-earning assets |
14,790 | 4.91 | % | 19,338 | 5.78 | % | (4,548 | ) | -0.87 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Other interest-earning assets |
48,991 | 4.57 | % | 152,674 | 5.49 | % | (103,683 | ) | -0.92 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-earning assets |
2,129,246 | 6.17 | % | 1,868,019 | 6.33 | % | 261,227 | -0.16 | % | |||||||||||||||
| Total non-earning assets |
165,803 | 141,377 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 2,295,049 | $ | 2,009,396 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities |
||||||||||||||||||||||||
| Checking |
$ | 314,336 | 2.00 | % | $ | 231,895 | 1.94 | % | $ | 82,441 | 0.06 | % | ||||||||||||
| Savings |
170,644 | 2.29 | % | 148,377 | 2.64 | % | 22,267 | -0.35 | % | |||||||||||||||
| Money market |
464,917 | 3.14 | % | 390,019 | 3.99 | % | 74,898 | -0.85 | % | |||||||||||||||
| Certificates of deposit |
747,773 | 4.16 | % | 713,433 | 4.22 | % | 34,340 | -0.06 | % | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-bearing deposits |
1,697,670 | 3.29 | % | 1,483,724 | 3.64 | % | 213,946 | -0.35 | % | |||||||||||||||
| Non-interest bearing deposits |
288,608 | 243,248 | 45,361 | |||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total deposits |
1,986,278 | 2.81 | % | 1,726,972 | 3.13 | % | 259,307 | -0.32 | % | |||||||||||||||
| Borrowings |
1,259 | 4.18 | % | — | N/A | 1,259 | N/A | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-bearing liabilities (excluding non interest deposits) |
1,698,929 | 3.29 | % | 1,483,724 | 3.64 | % | 215,205 | -0.35 | % | |||||||||||||||
| Non-interest-bearing deposits |
288,608 | 243,248 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total cost of funds |
1,987,537 | 2.81 | % | 1,726,972 | 3.13 | % | 260,566 | -0.32 | % | |||||||||||||||
| Accrued expenses and other liabilities |
42,634 | 40,874 | ||||||||||||||||||||||
| Stockholders’ equity |
264,878 | 241,550 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 2,295,049 | $ | 2,009,396 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest spread |
2.88 | % | 2.69 | % | ||||||||||||||||||||
| Net interest margin |
3.54 | % | 3.44 | % | ||||||||||||||||||||
| Net interest margin (FTE) 1, 2 |
3.58 | % | 3.48 | % | ||||||||||||||||||||
| 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 Six Months Ended June 30, | Change in Average Balance |
Change in Yield/ Rate |
||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
| Balance | Rate | Balance | Rate | |||||||||||||||||||||
| Earning assets |
||||||||||||||||||||||||
| Loans |
$ | 1,848,664 | 6.46 | % | $ | 1,568,541 | 6.54 | % | $ | 280,123 | -0.08 | % | ||||||||||||
| Securities |
||||||||||||||||||||||||
| Taxable available-for-sale |
199,548 | 4.92 | % | 74,144 | 4.21 | % | 125,404 | 0.71 | % | |||||||||||||||
| Tax-exempt available-for-sale |
39,499 | 2.85 | % | 40,257 | 2.84 | % | (758 | ) | 0.01 | % | ||||||||||||||
|
Held-to-maturity |
159 | 5.33 | % | 174 | 5.21 | % | (15 | ) | 0.12 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Securities |
239,206 | 4.58 | % | 114,576 | 3.74 | % | 124,630 | 0.84 | % | |||||||||||||||
| Other interest earning assets |
||||||||||||||||||||||||
| Federal funds sold |
43,705 | 4.42 | % | 140,703 | 5.45 | % | (96,998 | ) | -1.03 | % | ||||||||||||||
| Other interest-earning assets |
15,406 | 4.82 | % | 19,146 | 5.71 | % | (3,740 | ) | -0.89 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Other interest-earning assets |
59,111 | 4.53 | % | 159,848 | 5.48 | % | (100,737 | ) | -0.95 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-earning assets |
2,146,981 | 6.20 | % | 1,842,965 | 6.27 | % | 304,016 | -0.07 | % | |||||||||||||||
| Total non-earning assets |
168,359 | 141,019 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 2,315,340 | $ | 1,983,984 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities |
||||||||||||||||||||||||
| Checking |
$ | 319,777 | 1.97 | % | $ | 236,963 | 1.96 | % | $ | 82,814 | 0.01 | % | ||||||||||||
| Savings |
171,022 | 2.27 | % | 148,024 | 2.57 | % | 22,998 | -0.30 | % | |||||||||||||||
| Money market |
470,596 | 3.12 | % | 377,084 | 3.96 | % | 93,512 | -0.84 | % | |||||||||||||||
| Certificates of deposit |
756,808 | 4.30 | % | 695,870 | 4.17 | % | 60,938 | 0.13 | % | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-bearing deposits |
1,718,203 | 3.34 | % | 1,457,941 | 3.59 | % | 260,262 | -0.25 | % | |||||||||||||||
| Non-interest bearing deposits |
288,060 | 243,669 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total deposits |
2,006,263 | 2.86 | % | 1,701,610 | 3.08 | % | 304,653 | -0.22 | % | |||||||||||||||
| Borrowings |
639 | 4.19 | % | — | N/A | 639 | N/A | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-bearing liabilities (excluding non interest deposits) |
1,718,842 | 3.34 | % | 1,457,941 | 3.59 | % | 260,901 | -0.25 | % | |||||||||||||||
| Non-interest-bearing deposits |
288,060 | 243,669 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total cost of funds |
2,006,902 | 2.86 | % | 1,701,610 | 3.08 | % | 305,292 | -0.22 | % | |||||||||||||||
| Accrued expenses and other liabilities |
43,979 | 41,484 | ||||||||||||||||||||||
| Stockholders’ equity |
264,459 | 240,890 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 2,315,340 | $ | 1,983,984 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest spread |
2.86 | % | 2.68 | % | ||||||||||||||||||||
| Net interest margin |
3.53 | % | 3.43 | % | ||||||||||||||||||||
| Net interest margin (FTE) 1, 2 |
3.57 | % | 3.47 | % | ||||||||||||||||||||
| 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 | Change in Average Balance |
Change in Yield/ Rate |
||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
| Balance | Rate | Balance | Rate | |||||||||||||||||||||
| Earning assets |
||||||||||||||||||||||||
| Loans |
$ | 1,845,920 | 6.44 | % | $ | 1,851,439 | 6.49 | % | $ | (5,519 | ) | -0.05 | % | |||||||||||
| Securities |
||||||||||||||||||||||||
| Taxable available-for-sale |
195,152 | 4.71 | % | 203,992 | 5.13 | % | (8,840 | ) | -0.42 | % | ||||||||||||||
| Tax-exempt available-for-sale |
39,025 | 2.86 | % | 39,978 | 2.84 | % | (953 | ) | 0.02 | % | ||||||||||||||
|
Held-to-maturity |
158 | 5.33 | % | 160 | 5.33 | % | (2 | ) | 0.00 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total Securities |
234,335 | 4.40 | % | 244,130 | 4.76 | % | (9,795 | ) | -0.36 | % | ||||||||||||||
| Other interest earning assets |
||||||||||||||||||||||||
| Federal funds sold |
34,201 | 4.42 | % | 53,314 | 4.42 | % | (19,113 | ) | 0.00 | % | ||||||||||||||
| Other interest-earning assets |
14,790 | 4.91 | % | 16,028 | 4.81 | % | (1,238 | ) | 0.10 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Other interest-earning assets |
48,991 | 4.57 | % | 69,342 | 4.51 | % | (20,351 | ) | 0.06 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-earning assets |
2,129,246 | 6.17 | % | 2,164,911 | 6.24 | % | (35,665 | ) | -0.07 | % | ||||||||||||||
| Total non-earning assets |
165,803 | 170,945 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 2,295,049 | $ | 2,335,856 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities |
||||||||||||||||||||||||
| Checking |
$ | 314,336 | 2.00 | % | $ | 325,278 | 1.94 | % | $ | (10,942 | ) | 0.06 | % | |||||||||||
| Savings |
170,644 | 2.29 | % | 171,404 | 2.24 | % | (760 | ) | 0.05 | % | ||||||||||||||
| Money market |
464,917 | 3.14 | % | 476,338 | 3.10 | % | (11,421 | ) | 0.04 | % | ||||||||||||||
| Certificates of deposit |
747,773 | 4.16 | % | 765,942 | 4.45 | % | (18,169 | ) | -0.29 | % | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-bearing deposits |
1,697,670 | 3.29 | % | 1,738,962 | 3.39 | % | (41,292 | ) | -0.10 | % | ||||||||||||||
| Non-interest bearing deposits |
288,608 | 287,506 | 1,102 | |||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total deposits |
1,986,278 | 2.81 | % | 2,026,468 | 2.91 | % | (40,190 | ) | -0.10 | % | ||||||||||||||
| Borrowings |
1,259 | 4.18 | % | — | N/A | 1,259.00 | N/A | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total interest-bearing liabilities (excluding non interest deposits) |
1,698,929 | 3.29 | % | 1,738,962 | 3.39 | % | (40,033 | ) | -0.10 | % | ||||||||||||||
| Non-interest-bearing deposits |
288,608 | 287,506 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total cost of funds |
1,987,537 | 2.81 | % | 2,026,468 | 2.91 | % | (38,931 | ) | -0.10 | % | ||||||||||||||
| Accrued expenses and other liabilities |
42,634 | 45,354 | ||||||||||||||||||||||
| Stockholders’ equity |
264,878 | 264,034 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 2,295,049 | $ | 2,335,856 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest spread |
2.88 | % | 2.85 | % | ||||||||||||||||||||
| Net interest margin |
3.54 | % | 3.51 | % | ||||||||||||||||||||
| Net interest margin (FTE) 1, 2 |
3.58 | % | 3.56 | % | ||||||||||||||||||||
| 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 | 2024 | 2024 | 2024 | ||||||||||||||||
| June | March | December | September | June | ||||||||||||||||
| Return on average assets |
0.12 | % | 0.93 | % | 0.88 | % | -0.82 | % | 1.03 | % | ||||||||||
| Return on average equity |
1.04 | % | 8.26 | % | 7.97 | % | -6.96 | % | 8.54 | % | ||||||||||
| Return on average tangible equity1 |
1.12 | % | 8.86 | % | 8.56 | % | -7.25 | % | 8.91 | % | ||||||||||
| Net interest margin |
3.54 | % | 3.51 | % | 3.28 | % | 3.41 | % | 3.44 | % | ||||||||||
| Net interest margin (FTE)1 |
3.58 | % | 3.56 | % | 3.32 | % | 3.45 | % | 3.48 | % | ||||||||||
| Adjusted efficiency ratio1 |
63.10 | % | 64.75 | % | 62.62 | % | 63.65 | % | 65.90 | % | ||||||||||
| COMMON STOCK DATA |
||||||||||||||||||||
| Market value at period end |
$ | 30.54 | $ | 30.55 | $ | 34.43 | $ | 36.98 | $ | 33.10 | ||||||||||
| Market range: |
||||||||||||||||||||
| High |
$ | 32.97 | $ | 34.31 | $ | 38.90 | $ | 39.12 | $ | 33.10 | ||||||||||
| Low |
$ | 27.69 | $ | 30.02 | $ | 33.26 | $ | 32.40 | $ | 29.15 | ||||||||||
| Book value per common share at period end |
$ | 38.49 | $ | 38.56 | $ | 38.07 | $ | 38.18 | $ | 38.54 | ||||||||||
| Tangible book value per common share1 |
$ | 35.91 | $ | 36.00 | $ | 35.45 | $ | 35.52 | $ | 36.96 | ||||||||||
| Shares of common stock outstanding (in thousands) |
6,806 | 6,923 | 6,883 | 6,849 | 6,353 | |||||||||||||||
| CAPITAL RATIOS |
||||||||||||||||||||
| Total capital (to risk-weighted assets) |
13.05 | % | 13.67 | % | 13.52 | % | 13.17 | % | 14.66 | % | ||||||||||
| Tier 1 capital (to risk-weighted assets) |
12.01 | % | 12.48 | % | 12.34 | % | 12.02 | % | 13.62 | % | ||||||||||
| Tier 1 capital (to average assets) |
10.63 | % | 10.91 | % | 10.58 | % | 11.44 | % | 12.21 | % | ||||||||||
| Equity to assets |
11.69 | % | 11.52 | % | 11.20 | % | 11.11 | % | 12.34 | % | ||||||||||
| Tangible equity to tangible assets1 |
10.99 | % | 10.83 | % | 10.51 | % | 10.41 | % | 11.90 | % | ||||||||||
| CREDIT QUALITY DATA (Dollars in thousands) |
||||||||||||||||||||
| Net charge-offs (recoveries) |
$ | 9,859 | $ | (60 | ) | $ | 86 | $ | 108 | $ | (15 | ) | ||||||||
| Annualized net charge-offs (recoveries) to average loans |
2.136 | % | -0.013 | % | 0.019 | % | 0.026 | % | -0.004 | % | ||||||||||
| Nonperforming loans |
$ | 16,530 | $ | 26,522 | $ | 26,841 | $ | 2,330 | $ | 3,198 | ||||||||||
| Other real estate owned |
— | — | 295 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total nonperforming assets |
$ | 16,530 | $ | 26,522 | $ | 27,136 | $ | 2,330 | $ | 3,198 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Allowance for credit losses as a percent of: |
||||||||||||||||||||
| Period-end loans, net of deferred fees and costs |
1.14 | % | 1.29 | % | 1.30 | % | 1.27 | % | 1.17 | % | ||||||||||
| Nonperforming loans |
127.13 | % | 90.27 | % | 88.14 | % | 995.85 | % | 577.36 | % | ||||||||||
| Nonperforming assets |
127.13 | % | 90.27 | % | 87.18 | % | 995.85 | % | 577.36 | % | ||||||||||
| Nonaccrual loans as a percent of total loans, net of deferred fees and costs |
0.90 | % | 1.43 | % | 1.48 | % | 0.13 | % | 0.20 | % | ||||||||||
| 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 | 2024 | 2024 | 2024 | ||||||||||||||||
| June | March | December | September | June | ||||||||||||||||
| Net (loss) income (annualized)1 |
$ | 2,760 | $ | 21,811 | $ | 20,794 | $ | (17,727 | ) | $ | 20,617 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average equity2 |
264,878 | 264,034 | 261,057 | 254,645 | 241,550 | |||||||||||||||
| Less: average intangible assets3 |
(17,701 | ) | (17,929 | ) | (18,148 | ) | (10,096 | ) | (10,112 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average Tangible Equity |
$ | 247,177 | $ | 246,250 | $ | 243,044 | $ | 236,404 | $ | 231,506 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Return on average tangible equity |
1.12 | % | 8.86 | % | 8.56 | % | -7.25 | % | 8.91 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income |
$ | 18,810 | $ | 18,757 | $ | 18,007 | $ | 17,109 | $ | 15,968 | ||||||||||
| Other income |
2,251 | 2,190 | 2,027 | 2,056 | 2,087 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenue |
21,061 | 20,947 | 20,034 | 19,165 | 18,055 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-interest expenses |
$ | 13,509 | $ | 13,792 | $ | 12,773 | $ | 20,144 | $ | 12,009 | ||||||||||
| Less: core deposit intangible amortization |
(219 | ) | (228 | ) | (228 | ) | (143 | ) | (111 | ) | ||||||||||
| Less: merger-related expenses |
— | — | — | (7,803 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating expenses |
$ | 13,290 | $ | 13,564 | $ | 12,545 | $ | 12,198 | $ | 11,898 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted efficiency ratio |
63.10 | % | 64.75 | % | 62.62 | % | 63.65 | % | 65.90 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Assets |
$ | 2,241,668 | $ | 2,318,097 | $ | 2,340,233 | $ | 2,354,730 | $ | 1,983,941 | ||||||||||
| Less: intangible assets |
(17,566 | ) | (17,784 | ) | (18,013 | ) | (18,241 | ) | (10,044 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible assets |
$ | 2,224,102 | $ | 2,300,313 | $ | 2,322,220 | $ | 2,336,489 | $ | 1,973,897 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Stockholders’ equity |
$ | 261,946 | $ | 266,987 | $ | 262,040 | $ | 261,502 | $ | 244,841 | ||||||||||
| Less: intangible assets |
(17,566 | ) | (17,784 | ) | (18,013 | ) | (18,241 | ) | (10,044 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity |
$ | 244,380 | $ | 249,203 | $ | 244,027 | $ | 243,261 | $ | 234,797 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity to tangible assets |
10.99 | % | 10.83 | % | 10.51 | % | 10.41 | % | 11.90 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity |
$ | 244,380 | $ | 249,203 | $ | 244,027 | $ | 243,261 | $ | 234,797 | ||||||||||
| Shares outstanding (in thousands) |
6,806 | 6,923 | 6,883 | 6,849 | 6,353 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible book value per share |
$ | 35.91 | $ | 36.00 | $ | 35.45 | $ | 35.52 | $ | 36.96 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 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 | 2024 | 2024 | 2024 | ||||||||||||||||
| June | March | December | September | June | ||||||||||||||||
| Net interest income |
$ | 18,810 | $ | 18,757 | $ | 18,007 | $ | 17,109 | $ | 15,968 | ||||||||||
| FTE adjustment3 |
212 | 250 | 241 | 211 | 213 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income FTE |
$ | 19,022 | $ | 19,007 | $ | 18,248 | $ | 17,320 | $ | 16,181 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income FTE (annualized)1 |
$ | 76,297 | $ | 77,083 | $ | 72,595 | $ | 68,902 | $ | 65,078 | ||||||||||
| Average interest earning assets |
2,129,246 | 2,164,911 | 2,185,859 | 1,998,226 | 1,868,019 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest margin FTE |
3.58 | % | 3.56 | % | 3.32 | % | 3.45 | % | 3.48 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Six-months ended | ||||||||
| 2025 | 2024 | |||||||
| June | June | |||||||
| Net interest income |
$ | 37,567 | $ | 31,416 | ||||
| FTE adjustment3 |
462 | 401 | ||||||
|
|
|
|
|
|||||
| Net interest income FTE |
$ | 38,029 | $ | 31,817 | ||||
|
|
|
|
|
|||||
| Net interest income FTE (annualized)1 |
$ | 76,688 | $ | 63,984 | ||||
| Average interest earning assets |
2,146,981 | 1,842,965 | ||||||
|
|
|
|
|
|||||
| Net interest margin FTE |
3.57 | % | 3.47 | % | ||||
|
|
|
|
|
|||||
| 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%. |
15