Princeton Bancorp Announces First Quarter 2025 Results

Rhea-AI Summary

Princeton Bancorp (NASDAQ: BPRN) reported strong Q1 2025 financial results with net income of $5.4 million, or $0.77 per diluted share, up from $5.2 million in Q4 2024 and $4.3 million in Q1 2024. The company demonstrated robust loan growth of $37.7 million since year-end 2024, representing an 8.4% annualized increase.

Key highlights include an improved net interest margin of 3.51%, up from 3.28% in Q4 2024. Total assets were $2.32 billion, showing a slight decrease of $22.1 million from year-end. The bank maintained strong asset quality with non-performing assets decreasing by $614 thousand, while total deposits decreased by $22.0 million to $2.01 billion.

The company's stockholders' equity increased by $4.9 million or 1.89%, with the equity-to-assets ratio improving to 11.5% from 11.2% at year-end 2024.

Positive

• Net income increased to $5.4M in Q1 2025, up from $5.2M in Q4 2024 and $4.3M in Q1 2024
• Strong loan growth of $37.7M (8.4% annualized)
• Net interest margin improved to 3.51% from 3.28% in Q4 2024
• Stockholders' equity increased by $4.9M (1.89%)
• Non-performing assets decreased by $614,000

Negative

• Total assets decreased by $22.1M (0.95%)
• Total deposits declined by $22.0M (1.08%)
• Non-interest expense increased by $1.0M (8.0%) quarter-over-quarter
• Cash and cash equivalents decreased by $49.7M (42.33%)

Insights

Financial Analyst

Princeton Bancorp delivered strong Q1 with improved profitability, expanding margins, and solid loan growth despite challenging rate environment.

Princeton Bancorp reported net income of $5.4 million ($0.77 per diluted share) for Q1 2025, representing meaningful improvements from both Q4 2024 ($5.2 million/$0.75 per share) and Q1 2024 ($4.3 million/$0.68 per share). The sequential profit growth was driven primarily by a $750,000 increase in net interest income and a lower provision for credit losses.

The bank's net interest margin expanded to 3.51%, a significant 23 basis point improvement from the previous quarter, demonstrating successful navigation of the challenging interest rate environment. This margin expansion resulted from decreasing funding costs (down 13 basis points) and improved yields on interest-earning assets (up 11 basis points).

Loan growth remained robust with $37.7 million net loan growth since year-end, translating to an 8.4% annualized growth rate. The loan mix shifted toward residential mortgages (+$29.2 million) and commercial real estate (+$19.0 million), while construction and C&I loans decreased.

Asset quality metrics showed improvement with non-performing assets decreasing by $614,000. The coverage ratio of allowance for credit losses to period-end loans remained healthy at 1.29%, indicating maintained risk management discipline.

While deposits decreased slightly by $22.0 million (1.08%) quarter-over-quarter, the bank's year-over-year deposit growth remains strong at 17.88%. The equity ratio improved to 11.5% from 11.2% at year-end, reflecting a strengthened capital position.

The elevated non-interest expense (up 8.0% from previous quarter) bears monitoring, primarily driven by increases in salaries/benefits (+$654,000) and technology costs. However, this appears to be outweighed by the positive revenue momentum and credit quality improvements.

PRINCETON, N.J., April 24, 2025 /PRNewswire/ -- Princeton Bancorp, Inc. (the "Company") (NASDAQ - BPRN), the bank holding company for The Bank of Princeton (the "Bank"), today reported its unaudited financial condition and results of operations for the quarter ended March 31, 2025.

President/CEO Edward Dietzler commented on the quarter results, "The Company completed the first quarter of 2025 with a strong financial performance in this challenging interest rate environment. The Company exhibited strong loan growth resulting in an increase of net loans of $37.7 million since year end 2024, representing an 8.4% annualized loan growth, while maintaining robust liquidity. Additionally, we have realized an increase in our net interest margin to 3.51% from 3.28% in the fourth quarter of 2024."

The Company reported net income of $5.4 million, or $0.77 per diluted common share, for the first quarter of 2025, compared to $5.2 million, or $0.75 per diluted common share, for the fourth quarter of 2024, and net income of $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024. The increase in net income for the first quarter of 2025 when compared to the fourth quarter of 2024 was primarily due to an increase in net-interest income of $750 thousand, decreases in the provision for credit losses of $172 thousand and its income tax expense of $85,000, and an increase in non-interest income of $163 thousand, partially offset by an increase in non-interest expense of $1.0 million. The increase in net income for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to increases of $3.2 million and $205 thousand in net interest income after provision for loan losses and non-interest income, respectively, partially offset by increases of $2.0 million and $443 thousand in non-interest expense and income tax expense, respectively,

Review of Statements of Financial Condition

Total assets were $2.32 billion at March 31, 2025, a decrease of $22.1 million, or 0.95% when compared to $2.34 billion at the end of 2024. The primary reasons for the decrease in total assets were related to decreases in cash of $49.7 million and in investment securities of $7.9 million, partially offset by an increase in net loans of $37.7 million. The increase in the Company's net loans consisted of increases of $29.2 million in residential mortgages, and $19.0 million in commercial real estate loans, all partially offset by decreases of $8.0 million in construction loans and $2.9 million in commercial and industrial loans.

Total deposits on March 31, 2025, decreased $22.0 million, or 1.08%, when compared to December 31, 2024. The decrease in the Company's deposits consisted of decreases in money market deposits of $26.5 million, certificates of deposit of $17.1 million, and non-interest-bearing deposits of $10.5 million, These were partially offset by increases in interest-bearing demand deposits of $30.5 million, and savings deposits of $1.7 million.

Total stockholders' equity at March 31, 2025, increased $4.9 million or 1.89% when compared to December 31, 2024. The increase was primarily due to an increase in retained earnings of $3.3 million, which consisted of $5.4 million in net income, partially offset by $2.1 million of cash dividends recorded during the period, an increase in paid-in capital of $544 thousand, and a decrease in accumulated other comprehensive loss of $1.3 million. These were partially offset by a $163 thousand purchase of treasury stock. The ratio of equity to total assets at March 31, 2025 and at December 31, 2024 was 11.5% and 11.2%, respectively.

Asset Quality

At March 31, 2025, non-performing assets totaled $26.5 million, a decrease of $614 thousand when compared to the amount at December 31, 2024.

Review of Quarterly Financial Results

Net interest income was $18.8 million for the first quarter of 2025, compared to $18.0 million for the fourth quarter of 2024 and $15.4 million for the first quarter of 2024. The increase from the previous quarter was the result of a decrease in interest expense of $1.1 million, or 7.1%, partially offset by a decrease in interest income of $365 thousand, or 1.1%. The net interest margin for the first quarter of 2025 was 3.51%, an increase of 23 basis points when compared to the fourth quarter of 2024, and an increase by 9 basis points when compared to the first quarter of 2024. When comparing the first quarter of 2025 and the fourth quarter of 2024 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 $8.3 million and a 17-basis point decrease in the rate on such deposits. This resulted in a decrease in the Company's cost of funds of 13 basis points.  The decrease in interest income for the first quarter was due to a $20.9 million decrease in average interest-earning assets (caused mostly by a $75.3 million reduction in the average balance of Federal funds sold), partially offset by an 11-basis point increase in the yield on interest-earning assets when compared to the fourth quarter of 2024.

When comparing the first quarter of 2025 and first quarter of 2024, net-interest income increased by $3.3 million, which was primarily due to an increase in average interest-earning assets of $347.0 million and an increase of 3 basis points in the yield earned on interest-earning assets, partially offset by the increase in average interest-bearing deposits of $306.8 million. The Bank's cost of funds decreased by 12 basis points compared to the first quarter of 2024.

The Company recorded a provision for credit losses of $268 thousand during the first quarter of 2025, which consisted of an increase in the required reserve for credit losses on loans in the amount of $225 thousand and a increase in the reserve for unfunded liabilities of $43 thousand. The current quarter's provision recorded on the Company's statements of income was $172 thousand lower when compared to the provision for credit losses for the fourth quarter of 2024, and was $82 thousand higher when compared to the first quarter of 2024.  For the quarter ended March 31, 2025, the Company recorded charge-offs of $84 thousand and recoveries of $143 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.29% at March 31, 2025 and 1.30% at December 31, 2024.

Total non-interest income of $2.2 million for the first quarter of 2025 increased $163 thousand or 8.0% when compared to the fourth quarter of 2024, and increased $205 thousand or 10.3% when compared to the first quarter of 2024. The increase from the first quarter of 2025 when compared to the fourth quarter of 2024 was due to an increase in other non-interest income of $151 thousand, and an increase of $38 thousand in loan fees. The increase over the prior year's first quarter was primarily due to an increase in income from bank owned life insurance of $90 thousand and an increase in other non-interest income of $85 thousand.

Total non-interest expense of $13.8 million for the first quarter of 2025 increased $1.0 million, or 8.0%, when compared to the fourth quarter of 2024. This increase over the prior quarter was primarily due to increases in salaries and employee benefits expense of $654 thousand, data processing and communications expenses of $268 thousand, and federal deposit insurance expense of $256 thousand, partially offset by a decrease in other non-interest expense of $155 thousand. Total non-interest expense for the first quarter of 2025 increased $2.0 million or 16.5% when compared to the first quarter of 2024. This increase was primarily related to increases in salaries and employee benefits expense of $652 thousand, data processing and communications expense of $466 thousand, federal deposit insurance expense of $260 thousand, occupancy and equipment expense of $256 thousand, professional fees of $237 thousand and core deposit intangible expense of $108 thousand.

For the quarter ended March 31, 2025, the Company recorded an income tax expense of $1.5 million, resulting in an effective tax rate of 21.9%, 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 and compared to an income tax expense of $1.0 million resulting in an effective tax rate of 19.7% for the quarter ended March 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 ongoing impact of higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the integration of the businesses of the Company and Cornerstone Bank following the completion of the transaction; the global impact of the military conflicts in the Ukraine and the Middle East; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes in consumer spending and saving habits; those risks under the heading "Risk Factors" set forth in the Bank's Annual Report on Form 10-K for the year ended December 31, 2024,  and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as required by applicable law or regulation.

 

Princeton Bancorp, Inc.
Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in thousands, except per share data)
								March 31, 2025 vs					March 31, 2025 vs
		March 31,		December 31,		March 31,		December 31, 2024					March 31, 2024
		2025		2024		2024		$ Change		% Change			$ Change		%  Change
ASSETS
Cash and cash equivalents		$     67,674		$        117,348		$   172,067		$   (49,674)		(42.33)	%		$  (104,393)		(60.67)	%
Securities available-for-sale taxable		199,931		207,442		77,418		(7,511)		(3.62)			122,513		158.25
Securities available-for-sale tax-exempt		39,304		39,729		40,680		(425)		(1.07)			(1,376)		(3.38)
Securities held-to-maturity		159		161		167		(2)		(1.24)			(8)		(4.79)
Loans receivable, net of deferred loan fees		1,856,539		1,818,875		1,571,231		37,664		2.07			285,308		18.16
Allowance for credit losses		(23,942)		(23,657)		(18,618)		(285)		1.20			(5,324)		28.60
Goodwill		14,381		14,381		8,853		-		-			5,528		62.44
Core deposit intangible		3,403		3,632		1,301		(229)		(6.31)			2,102		161.57
Other real estate owened		-		295		-		(295)		(100.00)			-		N/A
Other assets		160,648		162,027		134,902		(1,379)		(0.85)			25,746		19.08
TOTAL ASSETS		$2,318,097		$     2,340,233		$1,988,001		$   (22,136)		(0.95)	%		$   330,096		16.60	%
LIABILITIES
Non-interest checking		$   290,496		$        300,972		$   247,056		$   (10,476)		(3.48)	%		$     43,440		17.58	%
Interest checking		331,032		300,559		215,364		30,473		10.14			115,668		53.71
Savings		172,546		170,880		149,386		1,666		0.97			23,160		15.50
Money market		464,012		490,543		378,652		(26,531)		(5.41)			85,360		22.54
Time deposits over $250,000		220,968		208,858		179,479		12,110		5.80			41,489		23.12
Other time deposits		531,612		560,813		535,683		(29,201)		(5.21)			(4,071)		(0.76)
Total deposits		2,010,666		2,032,625		1,705,620		(21,959)		(1.08)			305,046		17.88
Borrowings		-		-		-		-		-			-		N/A
Other liabilities		40,444		45,568		40,573		(5,124)		(11.24)			(129)		(0.32)
TOTAL LIABILITIES		2,051,110		2,078,193		1,746,193		(27,083)		(1.30)			304,917		17.46
STOCKHOLDERS' EQUITY
Paid-in capital		120,452		119,908		98,312		544		0.45			22,140		22.52
Treasury stock 1		(1,005)		(842)		(579)		(163)		19.34			(426)		100.00
Retained earnings		155,170		151,915		151,860		3,255		2.14			3,310		2.18
Accumulated other comprehensive income (loss)		(7,630)		(8,941)		(7,785)		1,311		(14.66)			155		(1.99)
TOTAL STOCKHOLDERS' EQUITY		266,987		262,040		241,808		4,947		1.89			25,179		10.41
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY		$2,318,097		$      2,340,233		$1,988,001		$   (22,136)		(0.95)	%		$   330,096		16.60	%
Book value per common share		$      38.56		$            38.07		$      38.26		$        0.49		1.29	%		$        0.30		0.78	%
Tangible book value per common share 2		$      36.00		$            35.45		$      36.65		$        0.55		1.55	%		$       (0.65)		(1.77)	%

1Treasury stock repurchases commenced March 8, 2024,  associated with the stock repurchase program announced August 10, 2023.

2Tangible book value per common share is a non-GAAP measure.

For more 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 March 31, 2025 and December 31, 2024 were as follows:
		March 31,		December 31,
		2025		2024
		(In thousands)
Commercial real estate		$1,404,108		$     1,385,085
Commercial and industrial		89,941		92,857
Construction		249,187		257,169
Residential first-lien mortgages		97,255		68,030
Home equity / consumer		18,532		18,133
Total loans		1,859,023		1,821,274
Deferred fees and costs		(2,484)		(2,399)
Allowance for credit losses		(23,942)		(23,657)
Loans, net		$1,832,597		$     1,795,218
The components of deposits at March 31, 2025 and December 31, 2024 were as follows:
		March 31.		December 31,
		2025		2024
		(In thousands)
Demand, non-interest-bearing		$   290,496		$        300,972
Demand, interest-bearing		331,032		300,559
Savings		172,546		170,880
Money market		464,012		490,543
Time deposits		752,580		769,671
Total deposits		$2,010,666		$     2,032,625

 

Princeton Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
(Amounts in thousands except per share data)
			Three Months Ended March 31,
			2025		2024		$ Change		% Change
Interest and dividend income
	Loans and fees		$29,624		$24,940		$    4,684		18.8 %
	Available-for-sale debt securities:
		Taxable	2,616		564		2,052		363.8 %
		Tax-exempt	284		286		(2)		-0.7 %
	Held-to-maturity debt securities		2		2		-		0.0 %
	Other interest and dividend income		769		2,274		(1,505)		-66.2 %
		Total interest and dividends	33,295		28,066		5,229		18.6 %
Interest expense
		Deposits	14,538		12,618		1,920		15.2 %
		Borrowings	-		-		-		N/A
		Total interest expense	14,538		12,618		1,920		15.2 %
Net interest income			18,757		15,448		3,309		21.4 %
Provision for credit losses			268		186		82		44.1 %
Net interest income after provision for credit losses			18,489		15,262		3,227		21.1 %
Non-interest income
	Income from bank-owned life insurance		471		381		90		23.6 %
	Fees and service charges		511		432		79		18.3 %
	Loan fees, including prepayment penalties		675		724		(49)		-6.8 %
	Other		533		448		85		19.0 %
		Total non-interest income	2,190		1,985		205		10.3 %
Non-interest expense
	Salaries and employee benefits		7,172		6,520		652		10.0 %
	Occupancy and equipment		2,285		2,029		256		12.6 %
	Professional fees		761		524		237		45.2 %
	Data processing and communications		1,626		1,160		466		40.2 %
	Federal deposit insurance		533		273		260		95.2 %
	Advertising and promotion		171		142		29		20.4 %
	Office expense		110		119		(9)		-7.6 %
	Other real estate owned expense		27		-		27		100.0 %
	Core deposit intangible		228		120		108		90.0 %
	Other		879		949		(70)		-7.4 %
		Total non-interest expense	13,792		11,836		1,956		16.5 %
Income before income tax expense			6,887		5,411		1,476		27.3 %
Income tax expense			1,509		1,066		443		41.6 %
Net income			$  5,378		$  4,345		1,033		23.8 %
Net income per common share - basic			$    0.78		$    0.69		$     0.09		13.0 %
Net income per common share - diluted			$    0.77		$    0.68		$     0.09		13.2 %
Weighted average shares outstanding - basic			6,905		6,328		577		9.1 %
Weighted average shares outstanding - diluted			6,964		6,418		546		8.5 %

 

Princeton Bancorp, Inc.
Consolidated Statements of Income (Current Quarter vs Prior Quarter)
(Unaudited)
(Amounts in thousands, except per share data)
			Three Months Ended
			March 31,		December 31,
			2025		2024		$ Change		% Change
Interest and dividend income
	Loans and fees		$   29,624		$          29,477		$      147		0.5 %
	Available-for-sale debt securities:
		Taxable	2,616		2,090		526		25.2 %
		Tax-exempt	284		285		(1)		-0.4 %
	Held-to-maturity debt securities		2		2		-		0.0 %
	Other interest and dividend income		769		1,806		(1,037)		-57.4 %
		Total interest and dividends	33,295		33,660		(365)		-1.1 %
Interest expense
		Deposits	14,538		15,653		(1,115)		-7.1 %
		Borrowings	-		-		-		N/A
		Total interest expense	14,538		15,653		(1,115)		-7.1 %
Net interest income			18,757		18,007		750		4.2 %
Provision for credit losses			268		440		(172)		-39.1 %
Net interest income after provision for credit losses			18,489		17,567		922		5.2 %
Non-interest income
	Income from bank-owned life insurance		471		481		(10)		-2.1 %
	Fees and service charges		511		527		(16)		-3.0 %
	Loan fees, including prepayment penalties		675		637		38		6.0 %
	Other		533		382		151		39.5 %
		Total non-interest income	2,190		2,027		163		8.0 %
Non-interest expense
	Salaries and employee benefits		7,172		6,518		654		10.0 %
	Occupancy and equipment		2,285		2,241		44		2.0 %
	Professional fees		761		795		(34)		-4.3 %
	Data processing and communications		1,626		1,358		268		19.7 %
	Federal deposit insurance		533		277		256		92.4 %
	Advertising and promotion		171		151		20		13.2 %
	Office expense		110		157		(47)		-29.9 %
	Other real estate owned expense		27		14		13		92.9 %
	Core deposit intangible		228		228		-		0.0 %
	Other		879		1,034		(155)		-15.0 %
		Total non-interest expense	13,792		12,773		1,019		8.0 %
Income before income tax expense			6,887		6,821		66		-1.0 %
Income tax expense			1,509		1,594		(85)		5.3 %
Net income			$     5,378		$           5,227		$      151		-2.9 %
Net income per common share - basic			$       0.78		$             0.76		$     0.02		-2.6 %
Net income per common share - diluted			$       0.77		$             0.75		$     0.02		-2.7 %
Weighted average shares outstanding - basic			6,905		6,880		25		0.4 %
Weighted average shares outstanding - diluted			6,964		6,984		(20)		-0.3 %

 

Princeton Bancorp, Inc.
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended March 31,
	2025				2024				Change in		Change in
	Average		Yield/		Average		Yield/		Average		Yield/
	Balance		Rate		Balance		Rate		Balance		Rate
Earning assets
Loans	$1,851,439		6.49 %		$1,551,206		6.47 %		$ 300,233		0.02 %
Securities
Taxable available-for-sale	203,992		5.13 %		58,742		3.84 %		145,250		1.29 %
Tax-exempt available-for-sale	39,978		2.84 %		40,758		2.81 %		(780)		0.03 %
Held-to-maturity	160		5.33 %		183		5.10 %		(23)		0.23 %
Total Securities	244,130		4.76 %		99,683		3.42 %		144,447		1.34 %
Other interest earning assets
Federal funds sold	53,314		4.42 %		148,069		5.45 %		(94,755)		-1.03 %
Other interest-earning assets	16,028		4.81 %		18,954		5.65 %		(2,926)		-0.84 %
Other interest-earning assets	69,342		4.51 %		167,023		5.48 %		(97,681)		-0.97 %
Total interest-earning assets	2,164,911		6.24 %		1,817,912		6.21 %		346,999		0.03 %
Total non-earning assets	170,945				140,659
Total assets	$2,335,856				$1,958,571
Interest-bearing liabilities
Checking	$   325,278		1.94 %		$   242,030		1.98 %		$   83,248		-0.04 %
Savings	171,404		2.24 %		147,672		2.51 %		23,732		-0.27 %
Money market	476,338		3.10 %		364,150		3.93 %		112,188		-0.83 %
Certificates of deposit	765,942		4.45 %		678,306		4.12 %		87,636		0.33 %
Total interest-bearing deposits	1,738,962		3.39 %		1,432,158		3.54 %		306,804		-0.15 %
Non-interest bearing deposits	287,506				244,089				43,417
Total  deposits	2,026,468		2.91 %		1,676,247		3.03 %		350,221		-0.12 %
Borrowings	-		N/A		-		N/A		-		N/A
Total interest-bearing liabilities
(excluding non interest deposits)	1,738,962		3.39 %		1,432,158		3.54 %		306,804		-0.15 %
Non-interest-bearing deposits	287,506				244,089
Total cost of funds	2,026,468		2.91 %		1,676,247		3.03 %		350,221		-0.12 %
Accrued expenses and other liabilities	45,354				42,094
Stockholders' equity	264,034				240,230
Total liabilities and stockholders' equity	$2,335,856				$1,958,571
Net interest spread			2.85 %				2.67 %
Net interest margin			3.51 %				3.42 %
Net interest margin (FTE) 1, 2			3.56 %				3.47 %

1Includes federal and state tax effect of tax-exempt securities and loans.

2This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

 

Princeton Bancorp, Inc.
Consolidated Average Statement of Financial Condition
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	March 31, 2025				December 31, 2024				Change in		Change in
	Average		Yield/		Average		Yield/		Average		Yield/
	Balance		Rate		Balance		Rate		Balance		Rate
Earning assets
Loans	$1,851,439		6.49 %		$1,821,229		6.44 %		$   30,210		0.05 %
Securities
Taxable available-for-sale	203,992		5.13 %		175,898		4.75 %		28,094		0.38 %
Tax-exempt available-for-sale	39,978		2.84 %		40,415		2.82 %		(437)		0.02 %
Held-to-maturity	160		5.33 %		162		5.33 %		(2)		0.00 %
Total Securities	244,130		4.76 %		216,475		4.39 %		27,655		0.37 %
Other interest earning assets
Federal funds sold	53,314		4.42 %		128,652		4.78 %		(75,338)		-0.36 %
Other interest-earning assets	16,028		4.81 %		19,503		5.31 %		(3,475)		-0.50 %
Other interest-earning assets	69,342		4.51 %		148,155		4.85 %		(78,813)		-0.34 %
Total interest-earning assets	2,164,911		6.24 %		2,185,859		6.13 %		(20,948)		0.11 %
Total non-earning assets	170,945				172,357
Total assets	$2,335,856				$2,358,216
Interest-bearing liabilities
Checking	$   325,278		1.94 %		$   300,728		1.87 %		$   24,550		0.07 %
Savings	171,404		2.24 %		174,376		2.39 %		(2,972)		-0.15 %
Money market	476,338		3.10 %		489,485		3.45 %		(13,147)		-0.35 %
Certificates of deposit	765,942		4.45 %		782,647		4.54 %		(16,705)		-0.09 %
Total interest-bearing deposits	1,738,962		3.39 %		1,747,236		3.56 %		(8,274)		-0.17 %
Non-interest bearing deposits	287,506				300,854				(13,348)
Total  deposits	2,026,468		2.91 %		2,048,090		3.04 %		(21,622)		-0.13 %
Borrowings	-		N/A		-		N/A		-		N/A
Total interest-bearing liabilities
(excluding non interest deposits)	1,738,962		3.39 %		1,747,236		3.56 %		(8,274)		-0.17 %
Non-interest-bearing deposits	287,506				300,854
Total cost of funds	2,026,468		2.91 %		2,048,090		3.04 %		(21,622)		-0.13 %
Accrued expenses and other liabilities	45,354				49,069
Stockholders' equity	264,034				261,057
Total liabilities and stockholders' equity	$2,335,856				$2,358,216
Net interest spread			2.85 %				2.56 %
Net interest margin			3.51 %				3.28 %
Net interest margin (FTE) 1, 2			3.56 %				3.32 %

1Includes federal and state tax effect of tax-exempt securities and loans.

2This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

 

Princeton Bancorp, Inc.
Quarterly Financial Highlights
(Unaudited)
	2025		2024		2024		2024		2024
	March		December		September		June		March
Return on average assets	0.93 %		0.88 %		-0.82 %		1.03 %		0.89 %
Return on average equity	8.26 %		7.97 %		-6.96 %		8.54 %		7.27 %
Return on average tangible equity1	8.86 %		8.56 %		-7.50 %		8.91 %		7.60 %
Net interest margin	3.51 %		3.28 %		3.41 %		3.44 %		3.42 %
Net interest margin (FTE)1	3.56 %		3.32 %		3.45 %		3.48 %		3.58 %
Adjusted efficiency ratio1	64.75 %		62.62 %		63.65 %		65.90 %		67.21 %
COMMON STOCK DATA
Market value at period end	$  30.55		$     34.43		$     36.98		$     33.10		$     30.78
Market range:
High	$  34.31		$     38.90		$     39.12		$     33.10		$     36.25
Low	$  30.02		$     33.26		$     32.40		$     29.15		$     29.72
Book value per common share at period end	$  38.56		$     38.07		$     38.18		$     38.54		$     38.26
Tangible book value per common share1	$  36.00		$     35.45		$     35.52		$     36.98		$     36.65
Shares of common stock outstanding (in thousands)	6,923		6,883		6,849		6,353		6,320
CAPITAL RATIOS
Total capital (to risk-weighted assets)	13.62 %		13.52 %		13.17 %		14.66 %		14.31 %
Tier 1 capital (to risk-weighted assets)	12.44 %		12.34 %		12.02 %		13.62 %		13.26 %
Tier 1 capital (to average assets)	10.88 %		10.58 %		11.44 %		12.21 %		11.99 %
Equity to assets	11.52 %		11.20 %		11.11 %		12.34 %		12.16 %
Tangible equity to tangible assets1	10.83 %		10.51 %		10.41 %		11.90 %		11.71 %
CREDIT QUALITY DATA (Dollars in thousands)
Net charge-offs (recoveries)	$     (60)		$          86		$        108		$        (15)		$        176
Annualized net charge-offs (recoveries) to average loans	-0.013 %		0.019 %		0.026 %		-0.004 %		0.045 %
Nonperforming loans	$26,522		$   26,841		$     2,330		$     3,198		$     2,115
Other real estate owned	-		295		-		-		-
Total nonperforming assets	$26,522		$   27,136		$     2,330		$     3,198		$     2,115
Allowance for credit losses as a percent of:
Period-end loans, net of deferred fees and costs	1.29 %		1.30 %		1.27 %		1.17 %		1.18 %
Nonperforming loans	90.27 %		88.14 %		995.85 %		577.36 %		880.28 %
Nonperforming assets	90.27 %		87.18 %		995.85 %		577.36 %		880.28 %
Nonaccrual loans as a percent of total loans, net of deferred fees and costs	1.43 %		1.48 %		0.13 %		0.20 %		0.13 %

1This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

Princeton Bancorp, Inc
Supplemental Information – Non-GAAP Financial Measures
(Unaudited)

This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of its performance. These non-GAAP financial measures are "tangible book value per common share," "return on average tangible equity," "efficiency ratio," "adjusted efficiency ratio," "tangible equity to tangible assets," and "net interest margin on a fully taxable equivalent." For the purpose of calculating return on average tangible equity, net income for such period is annualized and divided by average tangible equity during such period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating tangible equity to tangible assets, tangible equity is divided by tangible assets. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at period end. Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end. For the purpose of calculating tangible book value per common share, tangible equity is divided by the number of common shares outstanding, in each case at period end.  For the purpose of calculating efficiency ratio, total operating expense is divided by total revenue for the period. For the purpose of calculating adjusted efficiency ratio, total operating expense minus core deposit intangible amortization and merger-related expenses is divided by total revenue for the period.  For the purpose of calculating net interest margin on a fully taxable equivalent, fully taxable equivalent adjustments are added to net interest income for the period, net interest income fully taxable equivalent for such period is annualized and divided by average interest earning assets during such period. Adjusted earnings per share and adjusted diluted earnings per share are calculated by dividing net income adjusted for the provision for credit loss on non-purchase credit deteriorated loans and merger-related expenses by weighted outstanding shares.

Management believes that these non-GAAP financial measures provide valuable insights into understanding our financial results by excluding certain items that can distort our core business results. This allows investors to better understand our ongoing operations and assess our future potential, while still being transparent about the adjustments made to arrive at these non-GAAP figures. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

In addition to the items noted above, defined footnotes are included in the Supplemental Information – Non-GAAP Financial Measures table below. Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period. Fully taxable equivalent adjustment is calculated using tax exempt loan income plus tax exempt securities income for the period, multiplied by a tax rate of 28%.

Princeton Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
(Dollars in thousands)
	Three months ended
	2025		2024		2024		2024		2024
	March		December		September		June		March
Net (loss) income (annualized)1	$         21,811		$         20,794		$       (17,727)		$         20,617		$         17,475
Average equity2	264,034		261,057		254,645		241,550		240,230
Less: intangible assets	(17,784)		(18,013)		(18,241)		(10,044)		(10,154)
Average Tangible Equity	$       246,250		$       243,044		$       236,404		$       231,506		$       230,076
Return on average tangible equity	8.86 %		8.56 %		-7.50 %		8.91 %		7.60 %
Net interest income	$         18,757		$         18,007		$         17,109		$         15,968		$         15,448
Other income	2,190		2,027		2,056		2,087		1,985
Total revenue	20,947		20,034		19,165		18,055		17,433
Non-interest expenses	$         13,792		$         12,773		$         20,144		$         12,009		$         11,836
Less: core deposit intangible amortization	(228)		(228)		(143)		(111)		(120)
Less: merger-related expenses	-		-		(7,803)		-		-
Total operating expenses	$         13,564		$         12,545		$         12,198		$         11,898		$         11,716
Adjusted efficiency ratio	64.75 %		62.62 %		63.65 %		65.90 %		67.21 %
Total Assets	$    2,318,097		$    2,340,233		$    2,354,730		$    1,983,941		$    1,988,001
Less: intangible assets	(17,784)		(18,013)		(18,241)		(10,044)		(10,154)
Tangible assets	$    2,300,313		$    2,322,220		$    2,336,489		$    1,973,897		$    1,977,847
Stockholders' equity	$       266,987		$       262,040		$       261,502		$       244,841		$       241,808
Less: intangible assets	(17,784)		(18,013)		(18,241)		(10,044)		(10,154)
Tangible equity	$       249,203		$       244,027		$       243,261		$       234,797		$       231,654
Tangible equity to tangible assets	10.83 %		10.51 %		10.41 %		11.90 %		11.71 %
Tangible equity	$       249,203		$       244,027		$       243,261		$       234,797		$       231,654
Shares outstanding (in thousands)	6,923		6,883		6,849		6,350		6,320
Tangible book value per share	$          36.00		$          35.45		$          35.52		$          36.98		$          36.65
1Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year.
2Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period.
	Three months ended
	2025		2024		2024		2024		2024
	March		December		September		June		March
Net interest income	$         18,757		$         18,007		$         17,109		$         15,968		$         15,448
FTE adjustment3	250		241		211		213		226
Net interest income FTE	$         19,007		$         18,248		$         17,320		$         16,181		$         15,674
Net interest income FTE (annualized)1	$         77,083		$         72,595		$         68,902		$         65,078		$         63,041
Average interest earning assets	2,164,911		2,185,859		1,998,226		1,868,019		1,817,912
Net interest margin FTE	3.56 %		3.32 %		3.45 %		3.48 %		3.47 %
1Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year.
3Fully taxable equivalent adjustment is calculated using tax exempt loan income plus tax exempt securities income for the period, multiplied by a tax rate of 28%.

Contact George Rapp
609.454.0718
grapp@thebankofprinceton.com

 

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SOURCE The Bank of Princeton

FAQ

What was Princeton Bancorp's (BPRN) net income for Q1 2025?

Princeton Bancorp reported net income of $5.4 million ($0.77 per diluted share) for Q1 2025, an increase from $5.2 million in Q4 2024 and $4.3 million in Q1 2024.

How much did BPRN's loan portfolio grow in Q1 2025?

BPRN's net loans increased by $37.7 million since year-end 2024, representing an 8.4% annualized loan growth.

What was Princeton Bancorp's net interest margin in Q1 2025?

The net interest margin increased to 3.51% in Q1 2025, up from 3.28% in Q4 2024.

How did BPRN's deposit base change in Q1 2025?

Total deposits decreased by $22.0 million (1.08%) to $2.01 billion, with notable decreases in money market deposits ($26.5M) and certificates of deposit ($17.1M).

What is Princeton Bancorp's asset quality status as of Q1 2025?

Non-performing assets totaled $26.5 million, showing improvement with a decrease of $614 thousand compared to Q4 2024. The allowance for credit losses coverage ratio was 1.29%.