Princeton Bancorp Announces Second Quarter 2025 Results

Rhea-AI Summary

Princeton Bancorp (NASDAQ:BPRN) reported Q2 2025 net income of $688,000 ($0.10 per diluted share), down significantly from $5.4 million in Q1 2025 and $5.1 million in Q2 2024. The decline was primarily due to a $9.9 million charge-off and increased provision for credit losses of $7.0 million.

Total assets decreased 4.21% to $2.24 billion, with deposits declining 4.93%. Net interest income showed improvement at $18.8 million, with net interest margin increasing to 3.54%. The bank maintained strong balance sheet liquidity and an equity-to-assets ratio of 11.7%.

Despite challenges, management highlighted improvements in net interest income, non-interest income, and reduced operating expenses. The company actively repurchased 173,000 shares at an average price of $31.14 and expects stronger earnings in H2 2025.

Positive

• Net interest income increased by $2.8 million year-over-year to $18.8 million
• Net interest margin improved to 3.54%, up 10 basis points year-over-year
• Non-interest income increased 7.9% year-over-year to $2.3 million
• Operating expenses decreased by $283,000 quarter-over-quarter
• Strong equity-to-assets ratio of 11.7%, improved from 11.2% at year-end

Negative

• Net income dropped to $688,000 from $5.4 million in previous quarter
• Significant $9.9 million charge-off recorded in Q2
• Total assets decreased by $98.6 million or 4.21% from year-end
• Total deposits declined by $100.3 million or 4.93% from year-end
• Non-performing assets totaled $16.5 million at quarter-end

Insights

Banking Financial Analyst

Princeton Bancorp reported disappointing Q2 2025 earnings with net income dropping 87% YoY due to a significant $9.9M loan charge-off.

Princeton Bancorp's Q2 2025 results reveal a substantial decline in profitability, with net income falling to just $688,000 ($0.10 per diluted share) compared to $5.1 million ($0.80 per share) in Q2 2024 - representing an 87% year-over-year decrease. The primary culprit was a previously disclosed $9.9 million loan charge-off that necessitated a $7.0 million provision for credit losses.

Despite this significant credit issue, the bank showed some underlying operational improvements. Net interest income increased 17.5% year-over-year to $18.8 million, with net interest margin expanding 10 basis points to 3.54%. The bank's efficiency initiatives yielded results with non-interest expenses decreasing 2.1% quarter-over-quarter, though they remained 12.5% higher year-over-year due to costs associated with the Cornerstone Bank acquisition.

Balance sheet metrics reveal strategic adjustments, with total assets declining 4.21% to $2.24 billion since year-end 2024. The bank actively reduced its deposit costs by strategically decreasing certificates of deposit by $52.7 million and cutting brokered deposits by $26 million. The loan portfolio shifted toward residential mortgages (up $40.5 million) while commercial lending contracted.

Asset quality metrics showed mixed signals. While non-performing assets decreased by $10.6 million since December 2024, the significant loan charge-off raises questions about credit risk management. The allowance for credit losses to loans ratio contracted to 1.14% from 1.30% at year-end 2024.

Management's outlook indicates expectations for "stronger earnings" in the second half of 2025, suggesting the credit loss was an isolated event rather than a systemic issue. The bank also continued its shareholder capital return program, repurchasing 173,000 shares at an average price of $31.14 during the quarter.

PRINCETON, N.J., July 24, 2025 /PRNewswire/ -- 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 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.

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.

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.

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.

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
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
TOTAL ASSETS		$     2,241,668		$     2,340,233		$     1,983,941		$   (98,565)		(4.21)	%		$     257,727		12.99	%
LIABILITIES
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)
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)
TOTAL LIABILITIES		1,979,722		2,078,193		1,739,100		(98,471)		(4.74)			240,622		13.84
STOCKHOLDERS' EQUITY
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)
TOTAL STOCKHOLDERS' EQUITY		261,946		262,040		244,841		(94)		(0.04)			17,105		6.99
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY		$     2,241,668		$     2,340,233		$     1,983,941		$   (98,565)		(4.21)	%		$     257,727		12.99	%
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)	%
1Treasury stock repurchases commenced March 8, 2024,  associated with the stock repurchase program announced August 10, 2023.
2Tangible book value per common share is a non-GAAP measure.
For more informaion, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

 

	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
	Total loans		1,842,045		1,821,274
	Deferred fees and costs		(2,817)		(2,399)
	Allowance for credit losses		(21,014)		(23,657)
	Loans, net		$      1,818,214		$      1,795,218
	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
	Total deposits		$      1,932,372		$      2,032,625

 

	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
		Loans and fees		$              29,620		$              26,034		$    3,586		13.8 %
		Available-for-sale debt securities:
			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 %
			Total interest and dividends	32,756		29,410		3,346		11.4 %
	Interest expense
			Deposits	13,933		13,442		491		3.7 %
			Borrowings	13		-		13		N/A
			Total interest expense	13,946		13,442		504		3.7 %
	Net interest income			18,810		15,968		2,842		17.8 %
	Provision for (reversal of) credit losses			6,956		(118)		7,074		-5994.9 %
	Net interest income after provision for (reversal of) credit losses			11,854		16,086		(4,232)		-26.3 %
	Non-interest income
		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 %
			Total non-interest income	2,251		2,087		164		7.9 %
	Non-interest expense
		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 %
			Total non-interest expense	13,509		12,009		1,500		12.5 %
	Income before income tax expense			596		6,164		(5,568)		-90.3 %
	Income tax (benefit) expense			(92)		1,038		(1,130)		-108.9 %
	Net income			$                   688		$                5,126		(4,438)		-86.6 %
	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 %

 

	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
		Loans and fees		$        29,620		$         29,624		$           (4)		0.0 %
		Available-for-sale debt securities:
			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 %

 

	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 %

 

Princeton Bancorp, Inc.
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended June 30,
	2025				2024				Change in		Change in
	Average		Yield/		Average		Yield/		Average		Yield/
	Balance		Rate		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 %
1Includes federal and state tax effect of tax-exempt securities and loans.
2This 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 Six Months Ended June 30,
	2025				2024				Change in		Change in
	Average		Yield/		Average		Yield/		Average		Yield/
	Balance		Rate		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 %
1Includes federal and state tax effect of tax-exempt securities and loans.
2This 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
	June 30, 2025				March 31, 2025				Change in		Change in
	Average		Yield/		Average		Yield/		Average		Yield/
	Balance		Rate		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 %
1Includes federal and state tax effect of tax-exempt securities and loans.
2This 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		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 %
1This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

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%.

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
1Income 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.
2Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period.
3Average 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 %
1Income 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.
3Fully 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 George Rapp
609.454.0718
grapp@thebankofprinceton.com

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SOURCE The Bank of Princeton

FAQ

What caused Princeton Bancorp's (BPRN) earnings decline in Q2 2025?

The earnings decline was primarily due to a $9.9 million charge-off and increased provision for credit losses of $7.0 million, resulting in net income of just $688,000 compared to $5.4 million in Q1 2025.

How much was Princeton Bancorp's (BPRN) Q2 2025 net interest income?

Princeton Bancorp reported net interest income of $18.8 million for Q2 2025, representing an increase of $2.8 million compared to Q2 2024.

What is Princeton Bancorp's (BPRN) current asset quality status?

As of June 30, 2025, non-performing assets totaled $16.5 million, with an allowance for credit losses coverage ratio of 1.14% of total loans.

How many shares did Princeton Bancorp (BPRN) repurchase in Q2 2025?

The company repurchased 173,000 shares at an average price of $31.14 per share during Q2 2025.

What was Princeton Bancorp's (BPRN) deposit performance in H1 2025?

Total deposits decreased by $100.3 million or 4.93% from December 31, 2024, including strategic reductions in certificates of deposit and brokered deposits.