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.
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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.
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 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.
Princeton Bancorp, Inc.Consolidated Statements of Financial Condition(Unaudited)(Dollars in thousands, except per share data) September30, 2025 vs September30, 2025 vs September30, December31, September30, December31, 2024 September30, 2024 2025 2024 2024 $ Change % Change $ Change % ChangeASSETSCash and cash equivalents $ 72,892 $ 117,348 $ 181,058 $ (44,456) (37.88) % $ (108,166) (59.74) %Securities available-for-sale 170,011 207,442 147,871 (37,431) (18.04) % 22,140 14.97 %taxableSecurities available-for-sale 39,917 39,729 40,988 188 0.47 % (1,071) (2.61) %tax-exemptSecurities held-to-maturity 155 161 163 (6) (3.73) % (8) (4.91) %Loans receivable, net of deferred 1,793,787 1,818,875 1,831,407 (25,088) (1.38) % (37,620) (2.05) %loan feesAllowance 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 owned – 295 – (295) (100.00) % – N/AOther 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) %LIABILITIESNon-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/AOther 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' EQUITYPaid-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 (5,630) (8,941) (5,886) 3,311 (37.03) % 256 (4.35) %comprehensive income (loss)TOTAL STOCKHOLDERS' 266,607 262,040 261,502 4,567 1.74 % 5,105 1.95 %EQUITYTOTAL LIABILITIES $ 2,229,090 $ 2,340,233 $ 2,354,730 (111,143) (4.21) % (125,640) 12.99 %AND STOCKHOLDERS'EQUITYBook value per common share $ 39.36 $ 38.07 $ 38.18 $ 1.29 3.39 % $ 1.18 3.09 %Tangible book value per $ 36.80 $ 35.45 $ 35.52 $ 1.35 3.81 % $ 1.28 3.60 %common share 2
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.
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: September30, December31, 2025 2024 (In thousands)Commercial real estate $ 1,353,039 $ 1,385,085Commercial and industrial 81,370 92,857Construction 203,004 257,169Residential first-lien mortgages 135,930 68,030Home equity / consumer 22,799 18,133Total loans 1,796,142 1,821,274Deferred 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: September30, December31, 2025 2024 (In thousands)Demand, non-interest-bearing $ 294,333 $ 300,972Demand, interest-bearing 294,236 300,559Savings 167,968 170,880Money market 465,194 490,543Time deposits 706,854 769,671Total deposits $ 1,928,585 $ 2,032,625
Princeton Bancorp, Inc.Consolidated Statements of Income(Unaudited)(Amounts in thousands except per share data) Three Months Ended September30, 2025 2024 $ Change % ChangeInterest and dividend incomeLoans 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 expenseDeposits 13,081 14,701 (1,620) (11.0) %Borrowings 45 – 45 N/ATotal 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 20,291 12,508 7,783 62.2 %lossesNon-interest incomeGain (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 expenseSalaries 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 %
Princeton Bancorp, Inc.Consolidated Statements of Income (Current Quarter vs Prior Quarter)(Unaudited)(Amounts in thousands, except per share data) Three Months Ended September30, June30, 2025 2025 $ Change % ChangeInterest and dividend incomeLoans 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 expenseDeposits 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 20,291 11,854 8,437 71.2 %lossesNon-interest incomeIncome 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 expenseSalaries 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) %
Princeton Bancorp, Inc.Consolidated Statements of Income(Unaudited)(Amounts in thousands, except per share data) Nine Months Ended September30, 2025 2024 $ Change % ChangeInterest and dividend incomeLoans 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 expenseDeposits 41,552 40,761 791 1.9 %Borrowings 58 – 58 N/ATotal 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 expenseSalaries 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/ACore 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 %
Princeton Bancorp, Inc.Consolidated Average Statement of Financial Condition(Unaudited)(Dollars in thousands) For the Three Months Ended September30, 2025 2024 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance RateEarning assetsLoans $ 1,817,551 6.53 % $ 1,691,688 6.62 % $ 125,863 (0.09) %SecuritiesTaxable 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 assetsFederal 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 170,260 151,776Total assets $ 2,234,250 $ 2,150,002Interest-bearing liabilitiesChecking $ 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 294,652 269,030Total 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/ATotal interest-bearing liabilities 1,639,599 3.18 % 1,582,598 3.70 % 57,001 (0.52) %(excluding non interest deposits)Non-interest-bearing deposits 294,652 269,030Total cost of funds 1,934,251 2.69 % 1,851,628 3.16 % 82,623 (0.47) %Accrued expenses and other liabilities 36,911 43,729Stockholders' equity 263,088 254,645Total liabilities and stockholders' $ 2,234,250 $ 2,150,002equityNet 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.
Princeton Bancorp, Inc.Consolidated Average Statement of Financial Condition(Unaudited)(Dollars in thousands) For the Nine Months Ended September30, 2025 2024 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance RateEarning assetsLoans $ 1,838,179 6.49 % $ 1,609,890 6.56 % $ 228,289 (0.07) %SecuritiesTaxable 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 assetsFederal 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 169,000 144,630Total assets $ 2,288,013 $ 2,039,727Interest-bearing liabilitiesChecking $ 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 290,281 252,184Total deposits 1,980,730 2.80 % 1,751,980 3.11 % 228,750 (0.31) %Borrowings 1,687 4.59 % – – 1,687 N/ATotal interest-bearing liabilities 1,692,136 3.29 % 1,499,796 3.63 % 192,340 (0.34) %(excluding non interest deposits)Non-interest-bearing deposits 290,281 252,184Total cost of funds 1,982,417 2.80 % 1,751,980 3.11 % 230,437 (0.31) %Accrued expenses and other liabilities 41,599 42,239Stockholders' equity 263,997 245,508Total liabilities and stockholders' $ 2,288,013 $ 2,039,727equityNet 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.
Princeton Bancorp, Inc.Consolidated Average Statement of Financial Condition(Unaudited)(Dollars in thousands) For the Three Months Ended September30, 2025 June30, 2025 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance RateEarning assetsLoans $ 1,817,551 6.53 % $ 1,845,920 6.44 % $ (28,369) 0.09 %SecuritiesTaxable 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 assetsFederal 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 170,260 165,803Total assets $ 2,234,250 $ 2,295,049Interest-bearing liabilitiesChecking $ 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 6,044Total 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 1,639,599 3.18 % 1,698,929 3.29 % (59,330) (0.11) %(excluding non interest deposits)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 42,634Stockholders' equity 263,088 264,878Total liabilities and stockholders' $ 2,234,250 $ 2,295,049equityNet 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.
Princeton Bancorp, Inc.Quarterly Financial Highlights(Unaudited) 2025 2025 2025 2024 2024 September June March December SeptemberReturn 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 DATAMarket value at period end $ 31.84 $ 30.54 $ 30.55 $ 34.43 $ 36.98Market range:High $ 34.84 $ 32.97 $ 34.31 $ 38.90 $ 39.12Low $ 29.95 $ 27.69 $ 30.02 $ 33.26 $ 32.40Book value per common share at period end $ 39.48 $ 38.49 $ 38.56 $ 38.07 $ 38.18Tangible book value per common share1 $ 36.80 $ 35.91 $ 36.00 $ 35.45 $ 35.52Shares of common stock outstanding (in thousands) 6,773 6,806 6,923 6,883 6,849CAPITAL RATIOSTotal 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 $ 108Annualized net charge-offs (recoveries) to average (0.019) % 2.136 % (0.013) % 0.019 % 0.026 %loansNonperforming loans $ 16,710 $ 16,530 $ 26,522 $ 26,841 $ 2,330Other real estate owned – – – 295 -Total nonperforming assets $ 16,710 $ 16,530 $ 26,522 $ 27,136 $ 2,330Allowance 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 0.93 % 0.90 % 1.43 % 1.48 % 0.13 %deferred fees and costs
1 This is a non-GAAP financial measure. For more information, see “Supplemental Information – Non-GAAP Financial Measures (Unaudited)” below.
PrincetonBancorp, 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%.
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 SeptemberNet (loss) income (annualized)1 $ 25,653 $ 2,760 $ 21,811 $ 20,794 $ (17,727)Average equity2 263,088 264,878 264,034 261,057 254,645Less: average intangible assets3 (17,493) (17,701) (17,929) (18,148) (10,096)Average Tangible Equity $ 245,595 $ 247,177 $ 246,105 $ 242,909 $ 244,549Return 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 $ 17,109Other income 1,908 2,251 2,190 2,027 2,056Total revenue 21,527 21,061 20,947 20,034 19,165Non-interest expenses $ 13,917 $ 13,509 $ 13,792 $ 12,773 $ 20,144Less: 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 $ 12,198Adjusted 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 $ 2,354,730Less: 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 $ 2,336,489Stockholders' equity $ 266,607 $ 261,946 $ 266,987 $ 262,040 $ 261,502Less: intangible assets (17,357) (17,566) (17,784) (18,013) (18,241)Tangible equity $ 249,250 $ 244,380 $ 249,203 $ 244,027 $ 243,261Tangible equity to tangible assets 11.27 % 10.99 % 10.83 % 10.51 % 10.41 %Tangible equity $ 249,250 $ 244,380 $ 249,203 $ 244,027 $ 243,261Shares outstanding (in thousands) 6,773 6,806 6,923 6,883 6,849Tangible 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 SeptemberNet interest income $ 19,619 $ 18,810 $ 18,757 $ 18,007 $ 17,109FTE adjustment3 211 212 250 241 211Net interest income FTE $ 19,830 $ 19,022 $ 19,007 $ 18,248 $ 17,320Net interest income FTE (annualized)1 $ 78,675 $ 76,297 $ 77,083 $ 72,595 $ 68,902Average interest earning assets 2,063,990 2,129,246 2,164,911 2,185,859 1,998,226Net interest margin FTE 3.81 % 3.58 % 3.56 % 3.32 % 3.45 %
Nine-months ended 2025 2024 September SeptemberNet interest income $ 57,186 $ 48,525FTE adjustment3 673 612Net interest income FTE $ 57,859 $ 49,137Net interest income FTE (annualized)1 $ 77,357 $ 65,635Average interest earning assets 2,119,013 1,895,097Net 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%.
Contact GeorgeRapp609.454.0718grapp@thebankofprinceton.com
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