Princeton Bancorp Announces YTD & Fourth Quarter 2025 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.

core deposit intangible financial

Core deposit intangible is an accounting asset that represents the value of customer deposits a bank gains, usually through an acquisition, because those deposits provide a stable, low-cost source of funding. Think of it like paying for a loyal customer list that will save the bank money over time; it is written down over several years and affects reported earnings and the apparent cost of acquiring new funds, so investors watch it to understand future profitability and capital impact.

other real estate owned financial

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

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.

restricted stock units financial

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

federal deposit insurance regulatory

A government-backed guarantee that reimburses people and businesses if a bank fails, up to a set dollar limit per account. Think of it as a safety net for savings and checking accounts; it keeps everyday customers from losing money and helps maintain confidence in the banking system. For investors, these guarantees affect how stable banks appear, influence deposit flows, and can change the risk and valuation of bank stocks and financial markets.

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 at, and its results of operations for the quarter and twelve-months ended, December 31, 2025.

President/CEO Edward Dietzler commented on the quarter results, “The Bank achieved another strong quarter, with net income of $6.1 million and diluted EPS of $0.90. These results were supported by an increase in non-interest income of over 11%, as well as a reduction in operating expenses of 8.5%, in each case compared to the third quarter of this year. These metrics also improved to a lesser extent when compared to the fourth quarter of 2024.”

The Company reported net income of $6.1 million, or $0.90 per diluted common share, for the fourth quarter of 2025, compared to $6.5 million, or $0.95 per diluted common share, for the third quarter of 2025, and net income of $5.2 million, or $0.75 per diluted common share, for the fourth quarter of 2024. The decrease in net income for the fourth quarter of 2025 when compared to the third quarter of 2025 was primarily due to an increase in provision for credit losses of $774 thousand, and a decrease in net-interest income of $989 thousand, partially offset by a decrease in non-interest expense of $1.2 million, and an increase in non-interest income of $211 thousand. The increase in net income for the fourth quarter of 2025 when compared to the fourth quarter of 2024 was primarily due to an increase in net-interest income of $623 thousand, a decrease in the provision for credit losses of $338 thousand, and an increase in non-interest income of $92 thousand, partially offset by an increase of $244 thousand in income tax expense.

Review of Statements of Financial Condition

Total assets were $2.28 billion at December 31, 2025, a decrease of $57.1 million, or 2.44% when compared to $2.34 billion at the end of 2024. The primary reason for the decrease in total assets was related to a decrease in investment securities of $66.6 million, partially offset by an increase in cash and cash equivalents of $18.3 million.

Total deposits at December 31, 2025, decreased $56.4 million, or 2.78%, when compared to December 31, 2024. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $45.0 million, money market deposits of $26.3 million, non-interest-bearing demand deposits of $15.0 million, and savings deposits of $3.1 million, partially offset by an increase in interest-bearing demand deposits of $33.0 million. On balance sheet liquidity remains strong at December 31, 2025 with $135.7 million in cash and cash equivalents, as well as available for sale securities and borrowing capacity .

Total stockholders’ equity at December 31, 2025, increased $8.7 million or 3.31% when compared to December 31, 2024. The increase was primarily due to an increase in retained earnings of $9.8 million (which consisted of $18.6 million in net income, partially offset by $8.8 million of cash dividends recorded during the period), an increase in paid-in capital of $3.0 million primarily due to the exercise of stock options, and a decrease in accumulated other comprehensive loss of $3.7 million due to reductions in market interest rates and in investment securities, partially offset by a $7.9 million increase in treasury stock due to our stock repurchase program. The ratio of equity to total assets at December 31, 2025, and at December 31, 2024, was 11.9% and 11.2%, respectively.

Asset Quality

At December 31, 2025, non-performing assets totaled $16.5 million, a decrease of $10.6 million when compared to the amount at December 31, 2024, primarily the result of $10.0 million in charge-offs recorded during 2025, of which $9.9 million was recorded during the second quarter of 2025.

Review of Quarterly and Year-to-Date Financial Results

Net interest income was $18.6 million for the fourth quarter of 2025, a decrease of $1.0 million over the third quarter of 2025, and an increase of $623 thousand compared to $18.0 million for the fourth quarter of 2024. The decrease in net interest income when compared with the third quarter of 2025 was primarily related to a decrease in interest income of $1.0 million, or 3.0%. The increase in net interest income when compared with the fourth quarter of 2024 was due to a $2.5 million decrease in interest expense, partially offset by a decrease in interest income of $1.9 million. The net interest margin for the fourth quarter of 2025 was 3.51%, a decrease of 26 basis points when compared to the third quarter of 2025, and an increase of 23 basis points when compared to the fourth quarter of 2024. When comparing the fourth quarter of 2025 and the third quarter of 2025 periods, the decrease in interest income and decrease in net interest margin were primarily associated with a decrease in average total investments of $20.9 million, a decrease in average loans of $15.6 million, as well as a decrease in the Company’s yield earned on interest-earning assets of 32 basis points. When comparing the fourth quarter of 2025 and fourth quarter of 2024, the $2.5 million decrease in interest expense was primarily due to the Company's cost of funds decreasing by 40 basis points and average interest-bearing deposits decreasing by $69.5 million. The decrease in interest expense was partially offset by a $1.9 million decrease in interest income caused by a decrease in average interest-earning assets of $77.2 million, and a decrease of 16 basis points in the yield earned on interest-earning assets.

The Company recorded a provision of credit losses of $102 thousand during the fourth quarter of 2025, which consisted of a $101 thousand increase recorded to the allowance of credit losses, and an increase to the provision for credit losses of $1 thousand related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. The current quarters' provision recorded on the Company’s statements of income was $774 thousand higher when compared to the reversal of credit losses for the third quarter of 2025 and was $338 thousand lower when compared to the provision for the fourth quarter of 2024. The coverage ratio of the allowance for credit losses to period end loans was 1.12% at December 31, 2025, and 1.30% at December 31, 2024.

Total non-interest income of $2.1 million for the fourth quarter of 2025 increased $211 thousand or 11.1% when compared to the third quarter of 2025 and increased $92 thousand or 4.5% when compared to the fourth quarter of 2024. The increase over the third quarter of 2025 was primarily due to an increase in other non-interest income of $595 thousand discussed below, partially offset by a decrease in loans fees of $426 thousand. The increase over the prior year’s fourth quarter was primarily due to increases in income from bank-owned life insurance of $47 thousand, an increase in fees service charges of $48 thousand, an increase in other non-interest income of $134 thousand, partially offset by a decrease in loan fees of $137 thousand. The increase in other non-interest income for the fourth quarter of 2025 was related to a net loss on an equity investment in the amount of $471 thousand recorded in the third quarter of 2025 compared to no such net loss in the fourth quarter.

Total non-interest expense of $12.7 million for the fourth quarter of 2025 decreased $1.2 million, or 8.5%, when compared to the third quarter of 2025. This decrease over the prior quarter was primarily due to decreases in salaries and employee benefits expenses of $676, professional fees of $278 thousand, data processing communications expenses of $108 thousand and federal deposit insurance expenses of $95 thousand. Total non-interest expense for the fourth quarter of 2025 decreased $44 thousand or 0.3% when compared to the fourth quarter of 2024.

For the quarter ended December 31, 2025, the Company recorded an income tax expense of $1.8 million, resulting in an effective tax rate of 23.2%, compared to an income tax expense of $1.8 million, resulting in an effective tax rate of 21.9% for the quarter ended September 30, 2025 and compared to an income tax expense of $1.6 million resulting in an effective tax rate of 23.4 % for the quarter ended December 31, 2024.

For the year ended December 31, 2025, the Company recorded net income of $18.6 million, or $2.71 per diluted common share, compared to $10.2 million, or $1.55 per diluted common share, for 2024. This increase was primarily the result of the purchase accounting adjustments recorded in 2024 reducing net income, which were related to the Cornerstone acquisition, and included merger related expenses of $7.8 million. For the year ended December 31, 2025, net interest income of $75.8 million increased $9.3 million, or 14.0%, compared to net interest income of $66.5 million for the year ended December 31, 2024. The increase from the previous year was the result of an increase in interest income of $7.6 million, or 6.2%, and a decrease in interest expense of $1.7 million, or 3.0%.

For the year ending December 31, 2025, income tax expense was $5.1 million resulting in an effective tax rate of 21.4% compared to income tax expense of $2.6 million and an effective tax rate of 20.1% for the year ended December 31, 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 potential impact of 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 global impact of foreign military conflicts; 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)
									December 31, 2025 vs
		December 31,				December 31,			December 31, 2024
		2025				2024			$ Change				% Change
ASSETS
Cash and cash equivalents		$	135,686			$	117,348		$	18,338				15.63	%
Securities available-for-sale taxable			140,817				207,442			(66,625	)			(32.12	)%
Securities available-for-sale tax-exempt			39,752				39,729			23				0.06	%
Securities held-to-maturity			153				161			(8	)			(4.97	)%
Loans receivable, net of deferred loan fees			1,816,416				1,818,875			(2,459	)			(0.14	)%
Allowance for credit losses			(20,325	)			(23,657	)		3,332				(14.08	)%
Goodwill			14,381				14,381			—				—
Core deposit intangible			2,776				3,632			(856	)			(23.57	)%
Other real estate owned			—				295			(295	)			(100.00	)%
Other assets			153,491				162,027			(8,536	)			(5.27	)%
TOTAL ASSETS		$	2,283,147			$	2,340,233		$	(57,086	)			(2.44	)%
LIABILITIES
Non-interest checking		$	286,013			$	300,972		$	(14,959	)			(4.97	)%
Interest checking			333,533				300,559			32,974				10.97	%
Savings			167,735				170,880			(3,145	)			(1.84	)%
Money market			464,205				490,543			(26,338	)			(5.37	)%
Time deposits over $250,000			256,929				208,858			48,071				23.02	%
Other time deposits			467,778				560,813			(93,035	)			(16.59	)%
Total deposits			1,976,193				2,032,625			(56,432	)			(2.78	)%
Borrowings			—				—			—			N/A
Other liabilities			36,242				45,568			(9,326	)			(20.47	)%
TOTAL LIABILITIES			2,012,435				2,078,193			(65,758	)			(3.16	)%
STOCKHOLDERS’ EQUITY
Paid-in capital			122,954				119,908			3,046				2.54	%
Treasury stock 1			(8,707	)			(842	)		(7,865	)			934.09	%
Retained earnings			161,730				151,915			9,815				6.46	%
Accumulated other comprehensive income (loss)			(5,265	)			(8,941	)		3,676				(41.11	)%
TOTAL STOCKHOLDERS’ EQUITY			270,712				262,040			8,672				3.31	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	2,283,147			$	2,340,233		$	(57,086	)			(2.44	)%
Book value per common share		$	40.01			$	38.07		$	1.94				5.10	%
Tangible book value per common share 2		$	37.48			$	35.45		$	2.03				5.73	%

1		Treasury stock repurchases commenced March 8, 2024, associated with the stock repurchase program announced August 10, 2023.
2		Tangible book value per common share is a non-GAAP measure. For more information, see “Supplemental Information - Non-GAAP Financial Measures (Unaudited)” below.

Princeton Bancorp, Inc.
Loan and Deposit Tables
(Unaudited)

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

		December 31,				December 31,
		2025				2024
		(In thousands)
Commercial real estate		$	1,343,531			$	1,385,085
Commercial and industrial			76,557				92,857
Construction			209,483				257,169
Residential first-lien mortgages			163,813				68,030
Home equity / consumer			25,359				18,133
Total loans			1,818,743				1,821,274
Deferred fees and costs			(2,326	)			(2,399	)
Allowance for credit losses			(20,325	)			(23,657	)
Loans, net		$	1,796,092			$	1,795,218

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

		December 31,				December 31,
		2025				2024
		(In thousands)
Demand, non-interest-bearing		$	286,013			$	300,972
Demand, interest-bearing			333,533				300,559
Savings			167,735				170,880
Money market			464,205				490,543
Time deposits			724,707				769,671
Total deposits		$	1,976,193			$	2,032,625

Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands except per share data)
		Three Months Ended December 31,
		2025				2024				$ Change				% Change
Interest and dividend income
Loans and fees		$	28,597			$	29,477			$	(880	)			(3.0	)%
Available-for-sale debt securities:
Taxable			1,797				2,090				(293	)			(14.0	)%
Tax-exempt			276				285				(9	)			(3.2	)%
Held-to-maturity debt securities			2				2				—				—
Other interest and dividend income			1,084				1,806				(722	)			(40.0	)%
Total interest and dividends			31,756				33,660				(1,904	)			(5.7	)%
Interest expense
Deposits			13,126				15,653				(2,527	)			(16.1	)%
Borrowings			—				—				—			N/A
Total interest expense			13,126				15,653				(2,527	)			(16.1	)%
Net interest income			18,630				18,007				623				3.5	%
Provision for credit losses			102				440				(338	)			(76.8	)%
Net interest income after provision for credit losses			18,528				17,567				961				5.5	%
Non-interest income
Income from bank-owned life insurance			528				481				47				9.8	%
Fees and service charges			575				527				48				9.1	%
Loan fees, including prepayment penalties			500				637				(137	)			(21.5	)%
Other			516				382				134				35.1	%
Total non-interest income			2,119				2,027				92				4.5	%
Non-interest expense
Salaries and employee benefits			6,417				6,518				(101	)			(1.5	)%
Occupancy and equipment			2,156				2,241				(85	)			(3.8	)%
Professional fees			789				795				(6	)			(0.8	)%
Data processing and communications			1,600				1,358				242				17.8	%
Federal deposit insurance			275				277				(2	)			(0.7	)%
Advertising and promotion			160				151				9				6.0	%
Office expense			117				157				(40	)			(25.5	)%
Other real eastate owned expense			—				14				(14	)			(100.0	)%
Core deposit intangible			200				228				(28	)			(12.3	)%
Other			1,015				1,034				(19	)			(1.8	)%
Total non-interest expense			12,729				12,773				(44	)			(0.3	)%
Income before income tax expense			7,918				6,821				1,097				16.1	%
Income tax expense			1,838				1,594				244				15.3	%
Net income		$	6,080			$	5,227			$	853				16.3	%
Net income per common share - basic		$	0.90			$	0.76			$	0.14				18.3	%
Net income per common share - diluted		$	0.90			$	0.75			$	0.15				19.7	%
Weighted average shares outstanding - basic			6,765				6,880				(115	)			(1.7	)%
Weighted average shares outstanding - diluted			6,787				6,984				(197	)			(2.8	)%

Princeton Bancorp, Inc. Consolidated Statements of Income (Current Quarter vs Prior Quarter) (Unaudited) (Amounts in thousands, except per share data)
		Three Months Ended
		December 31,				September 30,
		2025				2025				$ Change				% Change
Interest and dividend income
Loans and fees		$	28,597			$	29,927			$	(1,330	)			(4.4	)%
Available-for-sale debt securities:
Taxable			1,797				2,214				(417	)			(18.8	)%
Tax-exempt			276				278				(2	)			(0.7	)%
Held-to-maturity debt securities			2				2				—				0.0	%
Other interest and dividend income			1,084				324				760				234.6	%
Total interest and dividends			31,756				32,745				(989	)			(3.0	)%
Interest expense
Deposits			13,126				13,081				45				0.3	%
Borrowings			—				45				(45	)			(100.0	)%
Total interest expense			13,126				13,126				—				0.0	%
Net interest income			18,630				19,619				(989	)			(5.0	)%
Provision for (reversal of) credit losses			102				(672	)			774				(115.2	)%
Net interest income after provision for (reversal of) credit losses			18,528				20,291				(1,763	)			(8.7	)%
Non-interest income
Income from bank-owned life insurance			528				506				22				4.3	%
Fees and service charges			575				555				20				3.6	%
Loan fees, including prepayment penalties			500				926				(426	)			(46.0	)%
Other			516				(79	)			595				(753.2	)%
Total non-interest income			2,119				1,908				211				11.1	%
Non-interest expense
Salaries and employee benefits			6,417				7,093				(676	)			(9.5	)%
Occupancy and equipment			2,156				2,146				10				0.5	%
Professional fees			789				1,067				(278	)			(26.1	)%
Data processing and communications			1,600				1,708				(108	)			(6.3	)%
Federal deposit insurance			275				370				(95	)			(25.7	)%
Advertising and promotion			160				212				(52	)			(24.5	)%
Office expense			117				113				4				3.5	%
Core deposit intangible			200				209				(9	)			(4.3	)%
Other			1,015				999				16				1.6	%
Total non-interest expense			12,729				13,917				(1,188	)			(8.5	)%
Income before income tax expense			7,918				8,282				(364	)			(4.4	)%
Income tax expense			1,838				1,816				22				1.2	%
Net income		$	6,080			$	6,466			$	(386	)			(6.0	)%
Net income per common share - basic		$	0.90			$	0.96			$	(0.06	)			(5.9	)%
Net income per common share - diluted		$	0.90			$	0.95			$	(0.05	)			(5.7	)%
Weighted average shares outstanding - basic			6,765				6,759				6				0.1	%
Weighted average shares outstanding - diluted			6,787				6,778				9				0.1	%

Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data)
		Year Ended
		December 31,
		2025				2024				$ Change				% Change
Interest and dividend income
Loans and fees		$	117,768			$	108,586			$	9,182				8.5	%
Available-for-sale debt securities:
Taxable			8,925				4,928				3,997				81.1	%
Tax-exempt			1,117				1,142				(25	)			(2.2	)%
Held-to-maturity debt securities			8				9				(1	)			(11.1	)%
Other interest and dividend income			2,734				8,281				(5,547	)			(67.0	)%
Total interest and dividends			130,552				122,946				7,606				6.2	%
Interest expense
Deposits			54,678				56,414				(1,736	)			(3.1	)%
Borrowings			58				—				58			N/A
Total interest expense			54,736				56,414				(1,678	)			(3.0	)%
Net interest income			75,816				66,532				9,284				14.0	%
Provision for credit losses			6,654				5,109				1,545				30.2	%
Net interest income after provision for credit losses			69,162				61,423				7,739				12.6	%
Non-Interest income
(Loss) gain on sale of securities available-for-sale, net			—				(7	)			7				(100.0	)%
Income from bank-owned life insurance			1,999				1,673				326				19.5	%
Fees and service charges			2,192				1,945				247				12.7	%
Loan fees, including prepayment penalties			2,804				3,082				(278	)			(9.0	)%
Other			1,472				1,462				10				0.7	%
Total non-interest income			8,467				8,155				312				3.8	%
Non-interest expense
Salaries and employee benefits			27,775				26,037				1,738				6.7	%
Occupancy and equipment			8,734				8,207				527				6.4	%
Professional fees			3,338				2,575				763				29.6	%
Data processing and communications			6,477				5,378				1,099				20.4	%
Federal deposit insurance			1,593				1,145				448				39.1	%
Advertising and promotion			695				630				65				10.3	%
Office expense			578				621				(43	)			(6.9	)%
Other real estate owned expense			27				14				13				92.9	%
Core deposit intangible			856				602				254				42.2	%
Merger-related expenses			—				7,803				(7,803	)			(100.0	)%
Other			3,874				3,750				124				3.3	%
Total non-interest expense			53,947				56,762				(2,815	)			(5.0	)%
Income before income tax expense			23,682				12,816				10,866				84.8	%
Income tax expense			5,071				2,574				2,497				97.0	%
Net income		$	18,611			$	10,242			$	8,369				81.7	%
Net income per common share - basic		$	2.73			$	1.57			$	1.16				73.9	%
Net income per common share - diluted		$	2.71			$	1.55			$	1.16				74.8	%
Weighted average shares outstanding - basic			6,828				6,530				298				4.6	%
Weighted average shares outstanding - diluted			6,860				6,620				240				3.6	%

Princeton Bancorp, Inc. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands)
		For the Three Months Ended December 31,
		2025								2024								Change in				Change in
		Average Balance				Yield/ Rate				Average Balance				Yield/ Rate				Average Balance				Yield/ Rate
Earning assets
Loans		$	1,801,913				6.30	%		$	1,821,229				6.44	%		$	(19,316	)			(0.14	)%
Securities
Taxable available-for-sale			157,363				4.57	%			175,898				4.75	%			(18,535	)			(0.18	)%
Tax-exempt available-for-sale			39,981				2.77	%			40,415				2.82	%			(434	)			(0.05	)%
Held-to-maturity			154				5.33	%			162				5.33	%			(8	)			—
Total Securities			197,498				4.20	%			216,475				4.39	%			(18,977	)			(0.19	)%
Other interest earning assets
Federal funds sold			87,963				3.83	%			128,652				4.78	%			(40,689	)			(0.95	)%
Other interest-earning assets			21,283				4.35	%			19,503				5.31	%			1,780				(0.96	)%
Other interest-earning assets			109,246				3.94	%			148,155				4.85	%			(38,909	)			(0.91	)%
Total interest-earning assets			2,108,657				5.97	%			2,185,859				6.13	%			(77,202	)			(0.16	)%
Total non-earning assets			168,225								172,357
Total assets		$	2,276,882							$	2,358,216
Interest-bearing liabilities
Checking		$	316,278				2.04	%		$	300,728				1.87	%		$	15,550				0.17	%
Savings			167,008				2.26	%			174,376				2.39	%			(7,368	)			(0.13	)%
Money market			468,642				3.09	%			489,485				3.45	%			(20,843	)			(0.36	)%
Certificates of deposit			725,795				3.77	%			782,647				4.54	%			(56,852	)			(0.77	)%
Total interest-bearing deposits			1,677,723				3.10	%			1,747,236				3.56	%			(69,513	)			(0.46	)%
Non-interest bearing deposits			293,467								300,854
Total deposits			1,971,190				2.64	%			2,048,090				3.04	%			(76,900	)			(0.40	)%
Borrowings			—			N/A					—			N/A					—			N/A
Total interest-bearing liabilities (excluding non interest deposits)			1,677,723				3.10	%			1,747,236				3.56	%			(69,513	)			(0.46	)%
Non-interest-bearing deposits			293,467								300,854
Total cost of funds			1,971,190				2.64	%			2,048,090				3.04	%			(76,900	)			(0.40	)%
Accrued expenses and other liabilities			37,721								49,069
Stockholders’ equity			267,971								261,057
Total liabilities and stockholders’ equity		$	2,276,882							$	2,358,216
Net interest spread							2.87	%							2.56	%
Net interest margin							3.51	%							3.28	%
Net interest margin (FTE) 1, 2							3.54	%							3.32	%

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 Year Ended December 31,
		2025								2024								Change in				Change in
		Average Balance				Yield/ Rate				Average Balance				Yield/ Rate				Average Balance				Yield/ Rate
Earning assets
Loans		$	1,829,038				6.44	%		$	1,663,013				6.53	%		$	166,025				(0.09	)%
Securities
Taxable available-for-sale			183,722				4.86	%			109,145				4.51	%			74,577				0.35	%
Tax-exempt available-for-sale			39,562				2.82	%			40,239				2.84	%			(677	)			(0.02	)%
Held-to-maturity			157				5.33	%			169				5.27	%			(12	)			0.06	%
Securities			223,441				4.50	%			149,553				4.06	%			73,888				0.44	%
Other interest earning assets
Federal funds sold			47,855				4.14	%			136,281				5.27	%			(88,426	)			(1.13	)%
Other interest-earning assets			16,068				4.68	%			19,337				5.65	%			(3,269	)			(0.97	)%
Other interest-earning assets			63,923				4.28	%			155,618				5.32	%			(91,695	)			(1.04	)%
Total interest-earning assets			2,116,402				6.17	%			1,968,184				6.25	%			148,218				(0.08	)%
Total non-earning assets			168,805								151,600
Total assets		$	2,285,207							$	2,119,784
Interest-bearing liabilities
Checking		$	313,269				2.01	%		$	258,462				1.91	%		$	54,807				0.10	%
Savings			169,486				2.28	%			157,538				2.52	%			11,948				(0.24	)%
Money market			469,061				3.12	%			421,934				3.79	%			47,127				(0.67	)%
Certificates of deposit			735,427				4.06	%			724,060				4.35	%			11,367				(0.29	)%
Total interest-bearing deposits			1,687,243				3.24	%			1,561,994				3.61	%			125,249				(0.37	)%
Non-interest bearing deposits			291,084								264,418
Total deposits			1,978,327				2.76	%			1,826,412				3.09	%			151,915				(0.33	)%
Borrowings			1,262				4.59	%			—				—				1,262			N/A
Total interest-bearing liabilities (excluding non interest deposits)			1,688,505				3.24	%			1,561,994				3.61	%			126,511				(0.37	)%
Non-interest-bearing deposits			291,084								264,418
Total cost of funds			1,979,589				2.76	%			1,826,412				3.09	%			153,177				(0.33	)%
Accrued expenses and other liabilities			40,619								43,955
Stockholders’ equity			264,999								249,417
Total liabilities and stockholders’ equity		$	2,285,207							$	2,119,784
Net interest spread							2.93	%							2.64	%
Net interest margin							3.58	%							3.38	%
Net interest margin (FTE) 1, 2							3.62	%							3.42	%

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
		December 31, 2025								September 30, 2025								Change in				Change in
		Average Balance				Yield/ Rate				Average Balance				Yield/ Rate				Average Balance				Yield/ Rate
Earning assets
Loans		$	1,801,913				6.30	%		$	1,817,551				6.53	%		$	(15,638	)			(0.23	)%
Securities
Taxable available-for-sale			157,363				4.57	%			178,947				4.95	%			(21,584	)			(0.38	)%
Tax-exempt available-for-sale			39,981				2.77	%			39,269				2.83	%			712				(0.06	)%
Held-to-maturity			154				5.33	%			156				5.33	%			(2	)			—
Total Securities			197,498				4.20	%			218,372				4.57	%			(20,874	)			(0.37	)%
Other interest earning assets
Federal funds sold			87,963				3.83	%			15,911				4.33	%			72,052				(0.50	)%
Other interest-earning assets			21,283				4.35	%			12,156				4.92	%			9,127				(0.57	)%
Other interest-earning assets			109,246				3.94	%			28,067				4.58	%			81,179				(0.64	)%
Total interest-earning assets			2,108,657				5.97	%			2,063,990				6.29	%			44,667				(0.32	)%
Total non-earning assets			168,225								170,260
Total assets		$	2,276,882							$	2,234,250
Interest-bearing liabilities
Checking		$	316,278				2.04	%		$	297,455				2.06	%		$	18,823				(0.02	)%
Savings			167,008				2.26	%			168,940				2.31	%			(1,932	)			(0.05	)%
Money market			468,642				3.09	%			466,459				3.16	%			2,183				(0.07	)%
Certificates of deposit			725,795				3.77	%			702,996				3.86	%			22,799				(0.09	)%
Total interest-bearing deposits			1,677,723				3.10	%			1,635,850				3.17	%			41,873				(0.07	)%
Non-interest bearing deposits			293,467								294,652								(1,185	)
Total deposits			1,971,190				2.64	%			1,930,502				2.69	%			40,688				(0.05	)%
Borrowings			—			N/A					3,749				4.72	%			(3,749	)		N/A
Total interest-bearing liabilities (excluding non interest deposits)			1,677,723				3.10	%			1,639,599				3.18	%			38,124				(0.08	)%
Non-interest-bearing deposits			293,467								294,652								(1,185	)			—
Total cost of funds			1,971,190				2.64	%			1,934,251				2.69	%			36,939				(0.05	)%
Accrued expenses and other liabilities			37,721								36,911
Stockholders’ equity			267,971								263,088
Total liabilities and stockholders’ equity		$	2,276,882							$	2,234,250
Net interest spread							2.87	%							3.11	%
Net interest margin							3.51	%							3.77	%
Net interest margin (FTE) 1, 2							3.54	%							3.81	%

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

Princeton Bancorp, Inc. Quarterly Financial Highlights (Unaudited)
		2025				2025				2025				2025				2024
		December				September				June				March				December
Return on average assets			1.06	%			1.15	%			0.12	%			0.93	%			0.88	%
Return on average equity			9.00	%			9.75	%			1.04	%			8.26	%			7.97	%
Return on average tangible equity1			9.62	%			10.45	%			1.12	%			8.86	%			8.56	%
Net interest margin			3.51	%			3.77	%			3.54	%			3.51	%			3.28	%
Net interest margin (FTE)1			3.54	%			3.81	%			3.58	%			3.56	%			3.32	%
Adjusted efficiency ratio1			60.38	%			63.68	%			63.10	%			64.75	%			62.62	%
COMMON STOCK DATA
Market value at period end		$	34.69			$	31.84			$	30.54			$	30.55			$	34.43
Market range:
High		$	36.69			$	34.84			$	32.97			$	34.31			$	38.90
Low		$	29.75			$	29.95			$	27.69			$	30.02			$	33.26
Book value per common share at period end		$	40.01			$	39.48			$	38.49			$	38.56			$	38.07
Tangible book value per common share1		$	37.48			$	36.80			$	35.91			$	36.00			$	35.45
Shares of common stock outstanding (in thousands)			6,766				6,773				6,806				6,923				6,883
CAPITAL RATIOS
Total capital (to risk-weighted assets)			13.98	%			13.78	%			13.05	%			13.67	%			13.52	%
Tier 1 capital (to risk-weighted assets)			12.93	%			12.73	%			12.01	%			12.48	%			12.34	%
Tier 1 capital (to average assets)			11.12	%			11.15	%			10.63	%			10.91	%			10.58	%
Equity to assets			11.86	%			11.96	%			11.69	%			11.52	%			11.20	%
Tangible equity to tangible assets1			11.19	%			11.27	%			10.99	%			10.83	%			10.51	%
CREDIT QUALITY DATA (Dollars in thousands)
Net charge-offs (recoveries)		$	(15	)		$	(86	)		$	9,859			$	(60	)		$	86
Annualized net charge-offs (recoveries) to average loans			(0.003	)%			(0.019	)%			2.136	%			(0.013	)%			0.019	%
Nonperforming loans		$	16,529			$	16,710			$	16,530			$	26,522			$	26,841
Other real estate owned			—				—				—				—				295
Total nonperforming assets		$	16,529			$	16,710			$	16,530			$	26,522			$	27,136
Allowance for credit losses as a percent of:
Period-end loans, net of deferred fees and costs			1.12	%			1.14	%			1.14	%			1.29	%			1.30	%
Nonperforming loans			122.97	%			122.33	%			127.13	%			90.27	%			88.14	%
Nonperforming assets			122.97	%			122.33	%			127.13	%			90.27	%			87.18	%
Nonaccrual loans as a percent of total loans, net of deferred fees and costs			0.91	%			0.93	%			0.90	%			1.43	%			1.48	%

1

This 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				2025				2025				2024
		December				September				June				March				December
Net (loss) income (annualized)1		$	24,122			$	25,653			$	2,760			$	21,811			$	20,794
Average equity2			267,971				263,088				264,878				264,034				261,057
Less: average intangible assets3			(17,280	)			(17,493	)			(17,701	)			(17,929	)			(18,148	)
Average Tangible Equity		$	250,691			$	245,595			$	247,177			$	246,105			$	242,909
Return on average tangible equity			9.62	%			10.45	%			1.12	%			8.86	%			8.56	%
Net interest income		$	18,630			$	19,619			$	18,810			$	18,757			$	18,007
Other income			2,119				1,908				2,251				2,190				2,027
Total revenue			20,749				21,527				21,061				20,947				20,034
Non-interest expenses		$	12,729			$	13,917			$	13,509			$	13,792			$	12,773
Less: core deposit intangible amortization			(200	)			(209	)			(219	)			(228	)			(228	)
Less: merger-related expenses			—				—				—				—				—
Total operating expenses		$	12,529			$	13,708			$	13,290			$	13,564			$	12,545
Adjusted efficiency ratio			60.38	%			63.68	%			63.10	%			64.75	%			62.62	%
Total Assets		$	2,283,147			$	2,229,090			$	2,241,668			$	2,318,097			$	2,340,233
Less: intangible assets			(17,157	)			(17,357	)			(17,566	)			(17,784	)			(18,013	)
Tangible assets		$	2,265,990			$	2,211,733			$	2,224,102			$	2,300,313			$	2,322,220
Stockholders’ equity		$	270,712			$	266,607			$	261,946			$	266,987			$	262,040
Less: intangible assets			(17,157	)			(17,357	)			(17,566	)			(17,784	)			(18,013	)
Tangible equity		$	253,555			$	249,250			$	244,380			$	249,203			$	244,027
Tangible equity to tangible assets			11.19	%			11.27	%			10.99	%			10.83	%			10.51	%
Tangible equity		$	253,555			$	249,250			$	244,380			$	249,203			$	244,027
Shares outstanding (in thousands)			6,766				6,773				6,806				6,923				6,883
Tangible book value per share		$	37.48			$	36.80			$	35.91			$	36.00			$	35.45

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

		Three months ended
		2025				2025				2025				2025				2024
		December				September				June				March				December
Net interest income		$	18,630			$	19,619			$	18,810			$	18,757			$	18,007
FTE adjustment3			209				211				212				250				241
Net interest income FTE		$	18,839			$	19,830			$	19,022			$	19,007			$	18,248
Net interest income FTE (annualized)1		$	74,743			$	78,675			$	76,297			$	77,083			$	72,595
Average interest earning assets			2,108,657				2,063,990				2,129,246				2,164,911				2,185,859
Net interest margin FTE			3.54	%			3.81	%			3.58	%			3.56	%			3.32	%

		Year Ended
		2025				2024
		December				December
Net interest income		$	75,816			$	66,532
FTE adjustment3			883				852
Net interest income FTE		$	76,699			$	67,384
Average interest earning assets			2,116,402				1,968,184
Net interest margin FTE			3.62	%			3.42	%

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%.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260129890748/en/

George Rapp

609.454.0718

grapp@thebankofprinceton.com

Source: The Bank of Princeton