Princeton Bancorp Announces Second Quarter 2026 Results

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-performing assets financial

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

tangible book value per common share financial

A per-share measure of the company’s tangible net asset value available to common shareholders after removing intangible items (like goodwill, brand value, and patents) and any preferred shareholder claims. Think of it as the amount each common share would get if the company sold only its physical and financial assets and settled priority claims. Investors use it as a conservative baseline to judge whether a stock is cheaply priced relative to the company’s hard-asset backing.

brokered deposits financial

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

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PRINCETON, N.J.--(BUSINESS WIRE)-- 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, 2026.

President/CEO Edward Dietzler spoke to the quarter results, "We are pleased with our strong second quarter performance, which reflects the continued execution of our strategic priorities and the resilience of our franchise. Net income totaled $7.1 million, or diluted earnings per share of $1.04, supported by a 6% increase in net interest income and continued expansion of our net interest margin compared to the first quarter of 2026.”

The Company reported net income of $7.1 million, or $1.04 per diluted common share, for the second quarter of 2026, compared to $6.2 million, or $0.91 per diluted common share, for the first quarter of 2026, and net income of $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025. The increase in net income for the second quarter of 2026 when compared to the first quarter of 2026 was primarily due to an increase in net interest income of $1.2 million, and an increase in the reversal of credit losses of $197 thousand, partially offset by an increase in non-interest expense of $231 thousand, and an increase in income tax expense of $281 thousand. The increase in net income for the second quarter of 2026 when compared to the second quarter of 2025 was primarily due to a decrease in the provision for credit losses of $7.3 million, an increase in net interest income of $1.2 million, and an increase in non-interest income of $185 thousand, partially offset by increases of $2.2 million in income tax expenses and $137 thousand in non-interest expense.

Review of Statements of Financial Condition
Total assets were $2.25 billion at June 30, 2026, a decrease of $34.1 million, or 1.49% when compared to $2.28 billion at December 31, 2025. The primary reasons for the decrease in total assets were related to decreases in cash and cash equivalents of $69.5 million and net loans of $44.6 million, partially offset by an increase in investment securities of $78.9 million. The decrease in the Company’s net loans consisted of decreases of $69.7 million in commercial real estate loans and $15.3 million in construction loans, partially offset by increases of $25.4 million in home equity and consumer loans, and $15.1 million in residential mortgages.

Total deposits on June 30, 2026, decreased $40.5 million, or 2.05%, when compared to December 31, 2025. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $97.0 million, interest-bearing checking deposits of $20.9 million, and savings deposits of $3.0 million, partially offset by increases in money market deposits of $57.1 million, and non-interest checking deposits of $23.2 million. The decrease in the certificates was strategically planned, including a reduction in brokered deposits of $11 million, implemented by a pricing structure designed to reduce the Bank’s cost of funds. On balance sheet liquidity remains strong at June 30, 2026.

Total stockholders’ equity at June 30, 2026, increased $9.2 million, or 3.40% when compared to December 31, 2025. The increase was primarily due to an increase in retained earnings of $8.7 million (which consisted of $13.3 million in net income, partially offset by $4.6 million of cash dividends recorded during the period), and an increase in paid-in capital from the exercise of stock options of $939 thousand. The ratio of equity to total assets at June 30, 2026, and at December 31, 2025, was 12.4% and 11.9%, respectively.

Asset Quality
At June 30, 2026, non-performing assets totaled $16.3 million, a decrease of $195 thousand when compared to the amount at December 31, 2025.

Review of Quarterly and Six-Month Financial Results
Net interest income was $20.0 million for the second quarter of 2026, an increase of $1.2 million over the first quarter of 2026, and an increase of $1.2 million compared to $18.8 million for the second quarter of 2025. Net interest margin for the second quarter of 2026 was 3.86%, an increase of 23 basis points when compared to the first quarter of 2026, and an increase of 32 basis points when compared to the second quarter of 2025. The increase in net interest income when compared with the first quarter of 2026 was primarily related to a decrease in interest expense of $597 thousand, or 4.9%, and an increase in interest income of $585 thousand, or 1.9%. The increase in net interest income when compared with the second quarter of 2025 was primarily due to a $2.3 million decrease in interest expense, partially offset by a decrease in interest income of $1.1 million. When comparing the second quarter of 2026 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 $68.8 million, as well as a decrease in the Company’s cost of funds of 40 basis points. The decrease in interest income for the second quarter of 2026 when compared to the second quarter of 2025 was due to a $46.6 million decrease in average interest-earning assets (caused mostly by a $50.4 million reduction in the average balance of loans, and a $39.7 million reduction in the average balance of total securities, partially offset by an increase of $43.5 million in the average balance of other interest-earning assets), and a 7-basis point decrease in the yield on interest-earning assets.

The Company recorded a reversal of credit losses of $353 thousand during the second quarter of 2026, which consisted of a $314 thousand decrease recorded to the allowance of credit losses on loans, and a $39 thousand decrease to the provision for credit losses related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. The current quarter's reversal of credit losses recorded on the Company’s statements of income was $197 thousand greater than when compared to the reversal of credit losses for the first quarter of 2026, and was $7.3 million lower when compared to the provision for credit losses for the second quarter of 2025. The coverage ratio of the allowance for credit losses to period end loans was 1.13% at June 30, 2026, and 1.12% at December 31, 2025.

Total non-interest income of $2.4 million for the second quarter of 2026 decreased $15 thousand or 0.6% when compared to the first quarter of 2026 and increased $185 thousand or 8.2% when compared to the second quarter of 2025. The decrease in the second quarter of 2026 when compared to the first quarter of 2026 was due to a decrease in other non-interest income of $421 thousand, which is related to a gain recorded on an equity investment in the amount of $232 thousand in the first quarter of 2026, partially offset by an increase of $380 thousand in loan fees. The increase over the prior year’s second quarter was primarily due to an increase in loan fees of $205 thousand, and in fees and service charges of $46 thousand, partially offset by a decrease in other non-interest income of $88 thousand.

Total non-interest expense of $13.6 million for the second quarter of 2026 increased $231 thousand, or 1.7%, when compared to the first quarter of 2026. This increase over the prior quarter was primarily due to increases in professional fees of $214 thousand, in salaries and employee benefits expense of $128 thousand, and in other non-interest expense of $119 thousand, partially offset by decreases in occupancy and equipment of $140 thousand, and in data processing and communications expenses of $46 thousand. Total non-interest expense for the second quarter of 2026 increased $137 thousand or 1.0% when compared to the second quarter of 2025. This increase was primarily related to increases in professional fees of $253 thousand, occupancy and equipment expense of $105 thousand, and salaries and employee benefits expense of $60 thousand, partially offset by decreases in federal deposit insurance expense of $115 thousand, office expense of $102 thousand, and other non-interest expense of $53 thousand.

For the quarter ended June 30, 2026, the Company recorded an income tax expense of $2.1 million, resulting in an effective tax rate of 22.9%, compared to an income tax expense of $1.8 million resulting in an effective tax rate of 22.6% for the quarter ended March 31, 2026 and 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.

For the six-month period ended June 30, 2026, the Company recorded net income of $13.3 million, or $1.95 per diluted common share, compared to $6.1 million, or $0.88 per diluted common share, for the same period in 2025. The increase in net income was primarily due to a decrease of $7.7 million in the provision for credit losses, an increase in net interest income of $1.3 million, an increase in non-interest income of $446 thousand, and a decrease in non-interest expense of $240 thousand, partially offset by an increase in income tax expense of $2.5 million, when compared to the prior year period.

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 29 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cranbury, 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 shareholders 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 potential impact of the global impact of foreign military conflicts in Iran, the Middle East and elsewhere, any future Federal budget stalemates 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 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; the timing and nature of the regulatory response to any applications filed by the Company and the Bank; developments in technology, such as artificial intelligence, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our customers' expectations for convenience and security; other acquisitions; changes in consumer spending and saving habits; those risks under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025; 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, 2026 vs								June 30, 2026 vs
		June 30,				December 31,				June 30,				December 31, 2025								June 30, 2025
		2026				2025				2025				$ Change				% Change				$ Change				% Change
ASSETS
Cash and cash equivalents		$	66,190			$	135,686			$	21,094			$	(69,496	)			(51.22	)%		$	45,096				213.79	%
Securities available-for-sale-    taxable			222,906				142,817				185,177				80,089				56.08	%			37,729				20.37	%
Securities available-for-sale-    tax-exempt			38,585				39,752				39,586				(1,167	)			(2.94	)%			(1,001	)			(2.53	)%
Securities held-to-maturity			149				153				157				(4	)			(2.61	)%			(8	)			(5.10	)%
Loans receivable, net of deferred    loan fees			1,771,500				1,816,416				1,839,228				(44,916	)			(2.47	)%			(67,728	)			(3.68	)%
Allowance for credit losses on loans			(19,963	)			(20,325	)			(21,014	)			362				(1.78	)%			1,051				(5.00	)%
Goodwill			14,381				14,381				14,381				—				—				—				—
Core deposit intangible			2,394				2,776				3,185				(382	)			(13.76	)%			(791	)			(24.84	)%
Other assets			154,870				153,491				159,874				1,379				0.90	%			(5,004	)			(3.13	)%
TOTAL ASSETS		$	2,251,012			$	2,285,147			$	2,241,668			$	(34,135	)			(1.49	)%		$	9,344				0.42	%
LIABILITIES
Non-interest checking		$	309,244			$	286,013			$	299,902			$	23,231				8.12	%		$	9,342				3.12	%
Interest checking			312,640				333,533				282,656				(20,893	)			(6.26	)%			29,984				10.61	%
Savings			164,744				167,735				169,663				(2,991	)			(1.78	)%			(4,919	)			(2.90	)%
Money market			521,309				464,205				463,206				57,104				12.30	%			58,103				12.54	%
Time deposits over $250,000			236,109				256,929				220,474				(20,820	)			(8.10	)%			15,635				7.09	%
Other time deposits			391,646				467,778				496,471				(76,132	)			(16.28	)%			(104,825	)			(21.11	)%
Total deposits			1,935,692				1,976,193				1,932,372				(40,501	)			(2.05	)%			3,320				0.17	%
Borrowings			—				—				10,000				—			N/A					(10,000	)			(100.00	)%
Other liabilities			35,397				38,242				37,350				(2,845	)			(7.44	)%			(1,953	)			(5.23	)%
TOTAL LIABILITIES			1,971,089				2,014,435				1,979,722				(43,346	)			(2.15	)%			(8,633	)			(0.44	)%
STOCKHOLDERS’ EQUITY
Paid-in capital			123,893				122,954				121,684				939				0.76	%			2,209				1.82	%
Treasury stock			(9,034	)			(8,707	)			(6,413	)			(327	)			3.76	%			(2,621	)			40.87	%
Retained earnings			170,424				161,730				153,718				8,694				5.38	%			16,706				10.87	%
Accumulated other    comprehensive income (loss)			(5,360	)			(5,265	)			(7,043	)			(95	)			1.80	%			1,683				(23.90	)%
TOTAL STOCKHOLDERS’    EQUITY			279,923				270,712				261,946				9,211				3.40	%			17,977				6.86	%
TOTAL LIABILITIES    AND STOCKHOLDERS’    EQUITY		$	2,251,012			$	2,285,147			$	2,241,668				(34,135	)			(1.49	)%			9,344				0.42	%
Book value per common share		$	41.09			$	40.01			$	38.49			$	1.08				2.70	%		$	2.60				6.76	%
Tangible book value per    common share 1		$	38.62			$	37.48			$	35.91			$	1.14				3.04	%		$	2.71				7.55	%

1	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 June 30, 2026 and December 31, 2025 were as follows:
		June 30,				December 31,
		2026				2025
		(In thousands)
Commercial real estate		$	1,273,815			$	1,343,531
Commercial and industrial			76,570				76,557
Construction			194,188				209,483
Residential first-lien mortgages			178,954				163,813
Home equity / consumer			50,754				25,359
Total loans			1,774,281				1,818,743
Deferred fees and costs			(2,781	)			(2,327	)
Allowance for credit losses on loans			(19,963	)			(20,325	)
Loans, net		$	1,751,537			$	1,796,091

The components of deposits at June 30, 2026 and December 31, 2025 were as follows:
		June 30,				December 31,
		2026				2025
		(In thousands)
Non-interest checking		$	309,244			$	286,013
Interest checking			312,640				333,533
Savings			164,744				167,735
Money market			521,309				464,205
Time deposits			627,755				724,707
Total deposits		$	1,935,692			$	1,976,193

Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands except per share data)
		Three Months Ended June 30,
		2026				2025				$ Change				% Change
Interest and dividend income
Loans and fees		$	28,681			$	29,620			$	(939	)			(3.2	)%
Available-for-sale debt securities:
Taxable			1,832				2,298				(466	)			(20.3	)%
Tax-exempt			264				279				(15	)			(5.4	)%
Held-to-maturity debt securities			2				2				—				—
Other interest and dividend income			877				557				320				57.5	%
Total interest and dividends			31,656				32,756				(1,100	)			(3.4	)%
Interest expense
Deposits			11,616				13,933				(2,317	)			(16.6	)%
Borrowings			—				13				(13	)			(100.0	)%
Total interest expense			11,616				13,946				(2,330	)			(16.7	)%
Net interest income			20,040				18,810				1,230				6.5	%
Provision for (reversal of) credit losses			(353	)			6,956				(7,309	)			(105.1	)%
Net interest income after provision for (reversal of) credit losses			20,393				11,854				8,539				72.0	%
Non-interest income
Income from bank-owned life insurance			516				494				22				4.5	%
Fees and service charges			597				551				46				8.3	%
Loan fees, including prepayment penalties			908				703				205				29.2	%
Other			415				503				(88	)			(17.5	)%
Total non-interest income			2,436				2,251				185				8.2	%
Non-interest expense
Salaries and employee benefits			7,153				7,093				60				0.8	%
Occupancy and equipment			2,252				2,147				105				4.9	%
Professional fees			974				721				253				35.1	%
Data processing and communications			1,581				1,543				38				2.5	%
Federal deposit insurance			300				415				(115	)			(27.7	)%
Advertising and promotion			136				152				(16	)			(10.5	)%
Office			136				238				(102	)			(42.9	)%
Core deposit intangible			186				219				(33	)			(15.1	)%
Other			928				981				(53	)			(5.4	)%
Total non-interest expense			13,646				13,509				137				1.0	%
Income before income tax expense (benefit)			9,183				596				8,587				1440.8	%
Income tax expense (benefit)			2,102				(92	)			2,194				(2384.8	)%
Net income		$	7,081			$	688			$	6,393				929.2	%
Net income per common share - basic		$	1.04			$	0.10			$	0.94				937.5	%
Net income per common share - diluted		$	1.04			$	0.10			$	0.94				940.1	%
Weighted average shares outstanding - basic			6,812				6,867				(55	)			(0.8	)%
Weighted average shares outstanding - diluted			6,823				6,895				(72	)			(1.0	)%

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,
		2026				2026				$ Change				% Change
Interest and dividend income
Loans and fees		$	28,681			$	28,066			$	615				2.2	%
Available-for-sale debt securities:
Taxable			1,832				1,519				313				20.6	%
Tax-exempt			264				274				(10	)			(3.6	)%
Held-to-maturity debt securities			2				2				—				0.0	%
Other interest and dividend income			877				1,210				(333	)			(27.5	)%
Total interest and dividends			31,656				31,071				585				1.9	%
Interest expense
Deposits			11,616				12,213				(597	)			(4.9	)%
Borrowings			—				—				—			N/A
Total interest expense			11,616				12,213				(597	)			(4.9	)%
Net interest income			20,040				18,858				1,182				6.3	%
Provision for (reversal of) credit losses			(353	)			(156	)			(197	)			126.3	%
Net interest income after provision for (reversal of) credit losses			20,393				19,014				1,379				7.3	%
Non-interest income
Income from bank-owned life insurance			516				507				9				1.8	%
Fees and service charges			597				580				17				2.9	%
Loan fees, including prepayment penalties			908				528				380				72.0	%
Other			415				836				(421	)			(50.4	)%
Total non-interest income			2,436				2,451				(15	)			(0.6	)%
Non-interest expense
Salaries and employee benefits			7,153				7,025				128				1.8	%
Occupancy and equipment			2,252				2,392				(140	)			(5.9	)%
Professional fees			974				760				214				28.2	%
Data processing and communications			1,581				1,627				(46	)			(2.8	)%
Federal deposit insurance			300				300				—				0.0	%
Advertising and promotion			136				175				(39	)			(22.3	)%
Office			136				131				5				3.8	%
Core deposit intangible			186				196				(10	)			(5.1	)%
Other			928				809				119				14.7	%
Total non-interest expense			13,646				13,415				231				1.7	%
Income before income tax expense			9,183				8,050				1,133				14.1	%
Income tax expense			2,102				1,821				281				15.4	%
Net income		$	7,081			$	6,229			$	852				13.7	%
Net income per common share - basic		$	1.04			$	0.92			$	0.12				13.0	%
Net income per common share - diluted		$	1.04			$	0.91			$	0.13				14.3	%
Weighted average shares outstanding - basic			6,812				6,788				24				0.4	%
Weighted average shares outstanding - diluted			6,823				6,808				15				0.2	%

Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data)
		Six Months Ended
		June 30,
		2026				2025				$ Change				% Change
Interest and dividend income
Loans and fees		$	56,747			$	59,244			$	(2,497	)			(4.2	)%
Available-for-sale debt securities:
Taxable			3,351				4,914				(1,563	)			(31.8	)%
Tax-exempt			538				563				(25	)			(4.4	)%
Held-to-maturity debt securities			4				4				—				—
Other interest and dividend income			2,087				1,326				761				57.4	%
Total interest and dividends			62,727				66,051				(3,324	)			(5.0	)%
Interest expense
Deposits			23,829				28,471				(4,642	)			(16.3	)%
Borrowings			—				13				(13	)			(100.0	)%
Total interest expense			23,829				28,484				(4,655	)			(16.3	)%
Net interest income			38,898				37,567				1,331				3.5	%
Provision for (reversal of) credit losses			(509	)			7,224				(7,733	)			(107.0	)%
Net interest income after provision for (reversal of) credit losses			39,407				30,343				9,064				29.9	%
Non-interest income
Income from bank-owned life insurance			1,023				965				58				6.0	%
Fees and service charges			1,177				1,062				115				10.8	%
Loan fees, including prepayment penalties			1,436				1,378				58				4.2	%
Other			1,251				1,036				215				20.8	%
Total non-interest income			4,887				4,441				446				10.0	%
Non-interest expense
Salaries and employee benefits			14,178				14,265				(87	)			(0.6	)%
Occupancy and equipment			4,644				4,432				212				4.8	%
Professional fees			1,734				1,482				252				17.0	%
Data processing and communications			3,208				3,169				39				1.2	%
Federal deposit insurance			600				948				(348	)			(36.7	)%
Advertising and promotion			311				323				(12	)			(3.7	)%
Office			267				348				(81	)			(23.3	)%
Other real estate owned			—				27				(27	)			(100.0	)%
Core deposit intangible			382				447				(65	)			(14.5	)%
Other			1,737				1,860				(123	)			(6.6	)%
Total non-interest expense			27,061				27,301				(240	)			(0.9	)%
Income before income tax expense			17,233				7,483				9,750				130.3	%
Income tax expense			3,923				1,417				2,506				176.9	%
Net income		$	13,310			$	6,066			$	7,244				119.4	%
Net income per common share - basic		$	1.96			$	0.88			$	1.08				122.7	%
Net income per common share - diluted		$	1.95			$	0.88			$	1.07				121.6	%
Weighted average shares outstanding - basic			6,800				6,886				(86	)			(1.3	)%
Weighted average shares outstanding - diluted			6,816				6,929				(113	)			(1.6	)%

Princeton Bancorp, Inc. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands)
		For the Three Months Ended June 30,
		2026								2025								Change in				Change in
		Average Balance				Yield/ Rate				Average Balance				Yield/ Rate				Average Balance				Yield/ Rate
Earning assets
Loans		$	1,795,516				6.41	%		$	1,845,920				6.44	%		$	(50,404	)			(0.03	)%
Securities
Taxable available-for-sale			155,641				4.71	%			195,152				4.71	%			(39,511	)			—
Tax-exempt available-for-sale			38,806				2.72	%			39,025				2.86	%			(219	)			(0.14	)%
Held-to-maturity			150				5.33	%			158				5.33	%			(8	)			—
Total Securities			194,597				4.31	%			234,335				4.40	%			(39,738	)			(0.09	)%
Other interest earning assets
Federal funds sold			8,817				3.66	%			34,201				4.42	%			(25,384	)			(0.76	)%
Other interest-earning assets			83,676				3.82	%			14,790				4.91	%			68,886				(1.09	)%
Other interest-earning assets			92,493				3.80	%			48,991				4.57	%			43,502				(0.77	)%
Total interest-earning assets			2,082,606				6.10	%			2,129,246				6.17	%			(46,640	)			(0.07	)%
Total non-earning assets			167,339								165,803
Total assets		$	2,249,945							$	2,295,049
Interest-bearing liabilities
Checking		$	323,266				2.04	%		$	314,336				2.00	%		$	8,930				0.04	%
Savings			165,712				2.07	%			170,644				2.29	%			(4,932	)			(0.22	)%
Money market			495,284				2.92	%			464,917				3.14	%			30,367				(0.22	)%
Certificates of deposit			644,658				3.43	%			747,773				4.16	%			(103,115	)			(0.73	)%
Total interest-bearing deposits			1,628,920				2.86	%			1,697,670				3.29	%			(68,750	)			(0.43	)%
Non-interest checking			306,096								288,608
Total deposits			1,935,016				2.41	%			1,986,278				2.81	%			(51,262	)			(0.40	)%
Borrowings			—			N/A					1,259				4.18	%			(1,259	)		N/A
Total interest-bearing liabilities    (excluding non-interest deposits)			1,628,920				2.86	%			1,698,929				3.29	%			(70,009	)			(0.43	)%
Non-interest-bearing deposits			306,096								288,608
Total cost of funds			1,935,016				2.41	%			1,987,537				2.81	%			(52,521	)			(0.40	)%
Accrued expenses and other liabilities			39,252								42,634
Stockholders’ equity			275,677								264,878
Total liabilities and stockholders’    equity		$	2,249,945							$	2,295,049
Net interest spread							3.24	%							2.88	%
Net interest margin							3.86	%							3.54	%
Net interest margin (FTE) 1, 2							3.90	%							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. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands)
		For the Six Months Ended June 30,
		2026								2025								Change in				Change in
		Average Balance				Yield/ Rate				Average Balance				Yield/ Rate				Average Balance				Yield/ Rate
Earning assets
Loans		$	1,797,846				6.37	%		$	1,848,664				6.46	%		$	(50,818	)			(0.09	)%
Securities
Taxable available-for-sale			144,254				4.65	%			199,548				4.92	%			(55,294	)			(0.27	)%
Tax-exempt available-for-sale			39,427				2.73	%			39,499				2.85	%			(72	)			(0.12	)%
Held-to-maturity			151				5.33	%			159				5.33	%			(8	)			0.00	%
Securities			183,832				4.24	%			239,206				4.58	%			(55,374	)			(0.34	)%
Other interest earning assets
Federal funds sold			38,451				3.72	%			43,705				4.42	%			(5,254	)			(0.70	)%
Other interest-earning assets			73,246				3.80	%			15,406				4.82	%			57,840				(1.02	)%
Other interest-earning assets			111,697				3.77	%			59,111				4.53	%			52,586				(0.76	)%
Total interest-earning assets			2,093,375				6.04	%			2,146,981				6.20	%			(53,606	)			(0.16	)%
Total non-earning assets			165,963								168,359
Total assets		$	2,259,338							$	2,315,340
Interest-bearing liabilities
Checking		$	326,550				2.03	%		$	319,777				1.97	%		$	6,773				0.06	%
Savings			167,257				2.10	%			171,022				2.27	%			(3,765	)			(0.17	)%
Money market			482,882				2.92	%			470,596				3.12	%			12,286				(0.20	)%
Certificates of deposit			672,367				3.54	%			756,808				4.30	%			(84,441	)			(0.76	)%
Total interest-bearing deposits			1,649,056				2.91	%			1,718,203				3.34	%			(69,147	)			(0.43	)%
Non-interest checking			297,587								288,060
Total deposits			1,946,643				2.47	%			2,006,263				2.86	%			(59,620	)			(0.39	)%
Borrowings			—			N/A					639				4.19	%			(639	)		N/A
Total interest-bearing liabilities    (excluding non interest deposits)			1,649,056				2.91	%			1,718,842				3.34	%			(69,786	)			(0.43	)%
Non-interest-bearing deposits			297,587								288,060
Total cost of funds			1,946,643				2.47	%			2,006,902				2.86	%			(60,259	)			(0.39	)%
Accrued expenses and other liabilities			38,688								43,979
Stockholders’ equity			274,007								264,459
Total liabilities and stockholders’    equity		$	2,259,338							$	2,315,340
Net interest spread							3.13	%							2.86	%
Net interest margin							3.75	%							3.53	%
Net interest margin (FTE) 1, 2							3.79	%							3.57	%

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
		June 30, 2026								March 31, 2026								Change in				Change in
		Average Balance				Yield/ Rate				Average Balance				Yield/ Rate				Average Balance				Yield/ Rate
Earning assets
Loans		$	1,795,516				6.41	%		$	1,800,201				6.32	%		$	(4,685	)			0.09	%
Securities
Taxable available-for-sale			155,641				4.71	%			132,740				4.58	%			22,901				0.13	%
Tax-exempt available-for-sale			38,806				2.72	%			40,054				2.73	%			(1,248	)			(0.01	)%
Held-to-maturity			150				5.33	%			152				5.33	%			(2	)			—
Total Securities			194,597				4.31	%			172,946				4.15	%			21,651				0.16	%
Other interest earning assets
Federal funds sold			8,817				3.66	%			68,415				3.72	%			(59,598	)			(0.06	)%
Other interest-earning assets			83,676				3.82	%			62,700				3.84	%			20,976				(0.02	)%
Other interest-earning assets			92,493				3.80	%			131,115				3.78	%			(38,622	)			0.02	%
Total interest-earning assets			2,082,606				6.10	%			2,104,262				5.99	%			(21,656	)			0.11	%
Total non-earning assets			167,339								164,573
Total assets		$	2,249,945							$	2,268,835
Interest-bearing liabilities
Checking		$	323,266				2.04	%		$	329,872				2.03	%		$	(6,606	)			0.01	%
Savings			165,712				2.07	%			168,820				2.13	%			(3,108	)			(0.06	)%
Money market			495,284				2.92	%			470,343				2.94	%			24,941				(0.02	)%
Certificates of deposit			644,658				3.43	%			700,384				3.63	%			(55,726	)			(0.20	)%
Total interest-bearing deposits			1,628,920				2.86	%			1,669,419				2.97	%			(40,499	)			(0.11	)%
Non-interest checking			306,096								288,984								17,112
Total deposits			1,935,016				2.41	%			1,958,403				2.53	%			(23,387	)			(0.12	)%
Borrowings			—			N/A					—			N/A					—			N/A
Total interest-bearing liabilities    (excluding non-interest deposits)			1,628,920				2.86	%			1,669,419				2.97	%			(40,499	)			(0.11	)%
Non-interest-bearing deposits			306,096								288,984								17,112				—
Total cost of funds			1,935,016				2.41	%			1,958,403				2.53	%			(23,387	)			(0.12	)%
Accrued expenses and other liabilities			39,252								38,114
Stockholders’ equity			275,677								272,318
Total liabilities and stockholders’    equity		$	2,249,945							$	2,268,835
Net interest spread							3.24	%							3.02	%
Net interest margin							3.86	%							3.63	%
Net interest margin (FTE) 1, 2							3.90	%							3.67	%

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)
		2026				2026				2025				2025				2025
		June				March				December				September				June
Return on average assets			1.26	%			1.11	%			1.06	%			1.15	%			0.12	%
Return on average equity			10.30	%			9.28	%			9.00	%			9.75	%			1.04	%
Return on average tangible equity1			10.97	%			9.90	%			9.62	%			10.45	%			1.12	%
Net interest margin			3.86	%			3.63	%			3.51	%			3.77	%			3.54	%
Net interest margin (FTE)1			3.90	%			3.67	%			3.54	%			3.81	%			3.58	%
Adjusted efficiency ratio1			59.89	%			62.03	%			60.38	%			63.68	%			63.10	%
COMMON STOCK DATA
Market value at period end		$	37.95			$	33.77			$	34.69			$	31.84			$	30.54
Market range:
High		$	38.35			$	37.84			$	36.69			$	34.84			$	32.97
Low		$	34.04			$	32.98			$	29.75			$	29.95			$	27.69
Book value per common share at period end		$	41.09			$	40.26			$	40.01			$	39.48			$	38.49
Tangible book value per common share1		$	38.62			$	37.76			$	37.48			$	36.80			$	35.91
Shares of common stock outstanding (in thousands)			6,813				6,796				6,766				6,773				6,806
CAPITAL RATIOS
Total capital (to risk-weighted assets)2			14.67	%			13.98	%			14.01	%			13.78	%			13.05	%
Tier 1 capital (to risk-weighted assets)2			13.60	%			12.93	%			12.95	%			12.73	%			12.01	%
Tier 1 capital (to average assets)2			11.69	%			11.35	%			11.12	%			11.15	%			10.63	%
Equity to assets			12.44	%			12.14	%			11.86	%			11.96	%			11.69	%
Tangible equity to tangible assets1			11.78	%			11.47	%			11.19	%			11.27	%			10.99	%
CREDIT QUALITY DATA (Dollars in thousands)
Net charge-offs (recoveries)		$	(244	)		$	1			$	235			$	(86	)		$	9,859
Annualized net charge-offs (recoveries) to average    loans			(0.05	)%			0.00	%			(0.00	)%			(0.02	)%			2.14	%
Nonperforming loans		$	16,320			$	16,478			$	16,529			$	16,710			$	16,530
Other real estate owned			—				—				—				—				—
Total nonperforming assets		$	16,320			$	16,478			$	16,529			$	16,710			$	16,530
Allowance for credit losses as a percent of:
Period-end loans, net of deferred fees and costs			1.13	%			1.10	%			1.12	%			1.14	%			1.14	%
Nonperforming loans			122.22	%			121.58	%			122.97	%			122.33	%			127.13	%
Nonperforming assets			122.22	%			121.58	%			122.97	%			122.33	%			127.13	%
Nonaccrual loans as a percent of total loans, net of    deferred fees and costs			0.92	%			0.91	%			0.91	%			0.93	%			0.90	%

1	This is a non-GAAP financial measure. For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.
2	Capital ratios presented herein are derived from the Call Report of The Bank of Princeton

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 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. 

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
		2026				2026				2025				2025				2025
		June				March				December				September				June
Net income (annualized)1		$	28,402			$	25,262			$	24,122			$	25,653			$	2,760
Average equity2			275,677				272,318				267,971				263,088				264,878
Less: average intangible assets3			(16,890	)			(17,084	)			(17,280	)			(17,493	)			(17,701	)
Average Tangible Equity		$	258,787			$	255,234			$	250,691			$	245,595			$	247,177
Return on average tangible equity			10.97	%			9.90	%			9.62	%			10.45	%			1.12	%
Net interest income		$	20,040			$	18,858			$	18,630			$	19,619			$	18,810
Other income			2,436				2,451				2,119				1,908				2,251
Total revenue			22,476				21,309				20,749				21,527				21,061
Non-interest expenses		$	13,646			$	13,415			$	12,729			$	13,917			$	13,509
Less: core deposit intangible amortization			(186	)			(196	)			(200	)			(209	)			(219	)
Total operating expenses		$	13,460			$	13,219			$	12,529			$	13,708			$	13,290
Adjusted efficiency ratio			59.89	%			62.03	%			60.38	%			63.68	%			63.10	%
Total Assets		$	2,251,012			$	2,253,767			$	2,285,147			$	2,229,090			$	2,241,668
Less: intangible assets			(16,775	)			(16,961	)			(17,157	)			(17,357	)			(17,566	)
Tangible assets		$	2,234,237			$	2,236,806			$	2,267,990			$	2,211,733			$	2,224,102
Stockholders’ equity		$	279,923			$	273,599			$	270,712			$	266,607			$	261,946
Less: intangible assets			(16,775	)			(16,961	)			(17,157	)			(17,357	)			(17,566	)
Tangible equity		$	263,148			$	256,638			$	253,555			$	249,250			$	244,380
Tangible equity to tangible assets			11.78	%			11.47	%			11.18	%			11.27	%			10.99	%
Tangible equity		$	263,125			$	256,638			$	253,555			$	249,250			$	244,380
Shares outstanding (in thousands)			6,813				6,796				6,766				6,773				6,806
Tangible book value per share		$	38.62			$	37.76			$	37.48			$	36.80			$	35.91

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 intangible assets balance for the period, divided by the number of days in the period.

		Three months ended
		2026				2026				2025				2025				2025
		June				March				December				September				June
Net interest income		$	20,040			$	18,858			$	18,630			$	19,619			$	18,810
FTE adjustment1			203				207				209				211				212
Net interest income FTE		$	20,243			$	19,065			$	18,839			$	19,830			$	19,022
Net interest income FTE (annualized)2		$	81,194			$	77,318			$	74,743			$	78,675			$	76,297
Average interest earning assets			2,082,606				2,104,262				2,108,657				2,063,990				2,129,246
Net interest margin FTE			3.90	%			3.67	%			3.54	%			3.81	%			3.58	%

		Six Months Ended
		2026				2025
		June				June
Net interest income		$	38,898			$	37,567
FTE adjustment3			410				462
Net interest income FTE		$	39,308			$	38,029
Net interest income FTE (annualized)1		$	79,268			$	76,688
Average interest earning assets			2,093,375				2,146,981
Net interest margin FTE			3.79	%			3.57	%

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	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%.

 

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George Rapp
EVP and Chief Financial Officer
609.454.0718
grapp@thebankofprinceton.com

Source: The Bank of Princeton