Princeton Bancorp Announces Second Quarter 2025 Results

Company Release - 7/24/2025 , /PRNewswire/ -- Princeton Bancorp, Inc. (the "Company") (NASDAQ - BPRN), the bank holding company for The Bank of Princeton (the "Bank"), today reported its unaudited financial condition and results of operations for the quarter and six months ended June 30, 2025. President/CEO Edward Dietzler commented on the quarter results, "Although we were disappointed with the large previously disclosed credit loss recorded in the second quarter, we are encouraged by the improvement in net interest income and in non-interest income, as well as a reduction in operating expenses this quarter, reflecting improvement in our earnings excluding our provision for credit losses. Additionally, we repurchased 173 thousand shares of our common stock at an average price of $31.14 as part of the share repurchase program. We expect stronger earnings in the second half of 2025. The Company reported net income of $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025, compared to $5.4 million, or $0.77 per diluted common share, for the first quarter of 2025, and net income of $5.1 million, or $0.80 per diluted common share, for the second quarter of 2024. The decrease in net income for the second quarter of 2025 when compared to the first quarter of 2025 was primarily due to an increase in provision for credit losses of $6.7 million partially offset by a decrease in non-interest expense of $283 thousand, an increase in net-interest income of $53 thousand, an increase in non-interest income of $61 thousand and a decrease in income tax expense of $1.6 million. The decrease in net income for the second quarter of 2025 when compared to the second quarter of 2024 was primarily due to increases in the provision for credit losses of $7.1 million and in non-interest expense of $1.5 million , partially offset by increases of $2.8 million in net-interest income and $164 thousand in non-interest income, and a decrease of $1.1 million in income tax expense. Review of Statements of Financial Condition Total assets were $2.24 billion at June 30, 2025, a decrease of $98.6 million, or 4.21% when compared to $2.34 billion at the end of 2024. The primary reasons for the decrease in total assets were related to decreases in cash and cash equivalents of $96.3 million and investment securities of $22.4 million, partially offset by an increase in net loans of $20.4 million. The increase in the Company's net loans consisted of increases of $40.5 million in residential mortgages, and $3.3 million in home equity and consumer loans, partially offset by decreases of $14.4 million in commercial and industrial loans, $6.8 million in commercial real estate loans and $1.8 million in construction loans. Total deposits on June 30, 2025, decreased $100.3 million, or 4.93%, when compared to December 31, 2024. The decrease in the Company's deposits consisted primarily of decreases in certificates of deposit of $52.7 million, money market deposits of $27.3 million, and interest-bearing demand deposits of $17.9 million. The decrease in the certificates was strategically planned, including a reduction in brokered deposits of $26 million which was not replenished, as was a pricing structure designed to reduce the Bank's cost of funds. On balance sheet liquidity remains strong at June 30, 2025. Total stockholders' equity at June 30, 2025, decreased $94 thousand or 0.04% when compared to December 31, 2024. The decrease was primarily due to a $5.6 million increase in purchases of treasury stock, partially offset by an increase in retained earnings of $1.8 million (which consisted of $6.1 million in net income, partially offset by $4.3 million of cash dividends recorded during the period), an increase in paid-in capital of $1.8 million, and a decrease in accumulated other comprehensive loss of $1.9 million. The ratio of equity to total assets at June 30, 2025, and at December 31, 2024, was 11.7% and 11.2%, respectively. Asset Quality At June 30, 2025, non-performing assets totaled $16.5 million, a decrease of $10.6 million when compared to the amount at December 31, 2024. Review of Quarterly and Six-Month Financial Results Net interest income was $18.8 million for the second quarter of 2025, an increase of $53 thousand over the first quarter of 2025, and an increase of $2.8 million compared to $16.0 million for the second quarter of 2024. While net interest income was relatively consistent with the prior 2025 quarter, interest expense decreased $592 thousand, or 4.1%, partially offset by a decrease in interest income of $539 thousand, or 1.6%. The net interest margin for the second quarter of 2025 was 3.54%, an increase of 3 basis points when compared to the first quarter of 2025, and an increase of 10 basis points when compared to the second quarter of 2024. When comparing the second quarter of 2025 and the first quarter of 2025 periods, the decrease in interest expense and the increase in net interest margin were primarily associated with a decrease in total interest-bearing deposits of $41.3 million and as well as a decrease in the Company's cost of funds of 10 basis points. The decrease in interest income for the second quarter was due to a $35.7 million decrease in average interest-earning assets (caused mostly by a $19.1 million reduction in the average balance of Federal funds sold, a $9.8 million reduction in the average balance of total securities, and a $5.5 million reduction in the average balance of loans), and a 7-basis point decrease in the yield on interest-earning assets when compared to the first quarter of 2025. For the six-month period ended June 30, 2025, the Company recorded net income of $6.1 million, or $0.88 per diluted common share, compared to $9.5 million, or $1.48 per diluted common share, for the same period in 2024. The decrease was primarily due to the charge-off recorded in the second quarter of 2025 and discussed below. When comparing the second quarter of 2025 and second quarter of 2024, net-interest income increased by $2.8 million, which was primarily due to an increase in average interest-earning assets of $261.2 million and the Bank's cost of funds decreasing by 32 basis points. These were partially offset by the increase in average interest-bearing deposits of $213.9 million, and a decrease of 16 basis points in the yield earned on interest-earning assets. The Company recorded a provision for credit losses of $7.0 million during the second quarter of 2025, primarily associated with the charge-off of $9.9 million previously disclosed on the Company's Form 8-K filed with the Securities and Exchange Commission on May 28, 2025. The charge-off included a $2.4 million specific reserve that had previously been reserved in the allowance for loan losses and as well as changes in the composition in the allowance for loan losses consistent with typical business activity. The current quarter's provision recorded on the Company's statements of income was $6.7 million higher when compared to the provision for credit losses for the first quarter of 2025 and was $7.1 million higher when compared to the second quarter of 2024. For the second quarter of 2025, the Company recorded charge-offs of $9.9 million and recoveries of $90 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.14% at June 30, 2025, and 1.30% at December 31, 2024. Total non-interest income of $2.3 million for the second quarter of 2025 increased $61 thousand or 2.8% when compared to the first quarter of 2025 and increased $164 thousand or 7.9% when compared to the second quarter of 2024. The increase in the second quarter of 2025 when compared to the first quarter of 2025 was due to an increase of $40 thousand in fees and service charges, an increase of $28 thousand in loan fees, and an increase of $23 thousand in income from bank-owned life insurance, partially offset by a decrease in other non-interest income of $30 thousand. The increase over the prior year's second quarter was primarily due to an increase in other non-interest income of $206 thousand, and an increase in income from bank owned life insurance of $106 thousand, partially offset by a decrease in loan fees of $234 thousand. Total non-interest expense of $13.5 million for the second quarter of 2025 decreased $283 thousand, or 2.1%, when compared to the first quarter of 2025. This decrease over the prior quarter was primarily due to decreases in occupancy and equipment of $138 thousand, federal deposit insurance expense of $118 thousand, data processing and communications expenses of $83 thousand, and salaries and employee benefits expense of $79 thousand, partially offset by an increase in office expense of $128 thousand, and in other non-interest expense of $102 thousand. Total non-interest expense for the second quarter of 2025 increased $1.5 million or 12.5% when compared to the second quarter of 2024. This increase was primarily related to increases in salaries and employee benefits expense of $650 thousand, occupancy and equipment expense of $297 thousand, data processing and communications expense of $139 thousand, federal deposit insurance expense of $136 thousand, professional fees of $119 thousand, and core deposit intangible expense of $108 thousand, all primarily associated with the Cornerstone Bank acquisition in the third quarter of 2024. For the quarter ended June 30, 2025, the Company recorded an income tax benefit of ($92) thousand, resulting in an effective tax rate of (15.4)%, which was primarily the result of the loan loss provision, compared to an income tax expense of $1.5 million resulting in an effective tax rate of 21.9% for the quarter ended March 31, 2025 and compared to an income tax expense of $1.0 million resulting in an effective tax rate of 16.8% for the quarter ended June 30, 2024. About Princeton Bancorp, Inc. and The Bank of Princeton Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 28 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation. Forward-Looking Statements The Company may from time to time make written or oral "forward-looking statements," including statements contained in the Company's filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company (including this press release), which are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, such as statements of the Company's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company's control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the integration of the businesses of the Company and Cornerstone Bank acquired in 2024; the global impact of the military conflicts in the Ukraine and the Middle East; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes in consumer spending and saving habits; those risks under the heading "Risk Factors" set forth in the Bank's Annual Report on Form 10-K for the year ended December 31, 2024, and the success of the Company at managing the risks involved in the foregoing. The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as required by applicable law or regulation. Princeton Bancorp, Inc. Consolidated Statements of Financial Condition (Unaudited) (Dollars in thousands, except per share data) June 30, 2025 vs June 30, 2025 vs June 30, December 31, June 30, December 31, 2024 June 30, 2024 2025 2024 2024 $ Change % Change $ Change % Change ASSETS Cash and cash equivalents $ 21,094 $ 117,348 $ 151,305 $ (96,254) (82.02) % $ (130,211) (86.06) % Securities available-for-sale taxable 185,177 207,442 92,001 (22,265) (10.73) 93,176 101.28 Securities available-for-sale tax-exempt 39,586 39,729 39,688 (143) (0.36) (102) (0.26) Securities held-to-maturity 157 161 165 (4) (2.48) (8) (4.85) Loans receivable, net of deferred loan fees 1,839,228 1,818,875 1,573,352 20,353 1.12 265,876 16.90 Allowance for credit losses (21,014) (23,657) (18,464) 2,643 (11.17) (2,550) 13.81 Goodwill 14,381 14,381 8,853 - - 5,528 62.44 Core deposit intangible 3,185 3,632 1,191 (447) (12.31) 1,994 167.42 Other real estate owened - 295 - (295) (100.00) - N/A Other assets 159,874 162,027 135,850 (2,153) (1.33) 24,024 17.68 TOTAL ASSETS $ 2,241,668 $ 2,340,233 $ 1,983,941 $ (98,565) (4.21) % $ 257,727 12.99 % LIABILITIES Non-interest checking $ 299,902 $ 300,972 $ 245,073 $ (1,070) (0.36) % $ 54,829 22.37 % Interest checking 282,656 300,559 223,759 (17,903) (5.96) 58,897 26.32 Savings 169,663 170,880 146,935 (1,217) (0.71) 22,728 15.47 Money market 463,206 490,543 403,926 (27,337) (5.57) 59,280 14.68 Time deposits over $250,000 220,474 208,858 154,605 11,616 5.56 65,869 42.60 Other time deposits 496,471 560,813 524,774 (64,342) (11.47) (28,303) (5.39) Total deposits 1,932,372 2,032,625 1,699,072 (100,253) (4.93) 233,300 13.73 Borrowings 10,000 - - 10,000 100.00 10,000 N/A Other liabilities 37,350 45,568 40,028 (8,218) (18.03) (2,678) (6.69) TOTAL LIABILITIES 1,979,722 2,078,193 1,739,100 (98,471) (4.74) 240,622 13.84 STOCKHOLDERS' EQUITY Paid-in capital 121,684 119,908 99,179 1,776 1.48 22,505 22.69 Treasury stock1 (6,413) (842) (842) (5,571) 661.64 (5,571) 661.64 Retained earnings 153,718 151,915 155,083 1,803 1.19 (1,365) (0.88) Accumulated other comprehensive income (loss) (7,043) (8,941) (8,579) 1,898 (21.23) 1,536 (17.90) TOTAL STOCKHOLDERS' EQUITY 261,946 262,040 244,841 (94) (0.04) 17,105 6.99 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,241,668 $ 2,340,233 $ 1,983,941 $ (98,565) (4.21) % $ 257,727 12.99 % Book value per common share $ 38.49 $ 38.07 $ 38.54 $ 0.42 1.10 % $ (0.05) (0.13) % Tangible book value per common share 2 $ 35.91 $ 35.45 $ 36.96 $ 0.46 1.30 % $ (1.05) (2.84) % 1Treasury stock repurchases commenced March 8, 2024, associated with the stock repurchase program announced August 10, 2023. 2Tangible book value per common share is a non-GAAP measure. For more informaion, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below. Princeton Bancorp, Inc. Loan and Deposit Tables (Unaudited) The components of loans receivable, net at June 30, 2025 and December 31, 2024 were as follows: June 30, December 31, 2025 2024 (In thousands) Commercial real estate $ 1,378,327 $ 1,385,085 Commercial and industrial 78,409 92,857 Construction 255,335 257,169 Residential first-lien mortgages 108,558 68,030 Home equity / consumer 21,416 18,133 Total loans 1,842,045 1,821,274 Deferred fees and costs (2,817) (2,399) Allowance for credit losses (21,014) (23,657) Loans, net $ 1,818,214 $ 1,795,218 The components of deposits at June 30, 2025 and December 31, 2024 were as follows: June 30, December 31, 2025 2024 (In thousands) Demand, non-interest-bearing $ 299,902 $ 300,972 Demand, interest-bearing 282,656 300,559 Savings 169,663 170,880 Money market 463,206 490,543 Time deposits 716,945 769,671 Total deposits $ 1,932,372 $ 2,032,625 Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands except per share data) Three Months Ended June 30, 2025 2024 $ Change % Change Interest and dividend income Loans and fees $ 29,620 $ 26,034 $ 3,586 13.8 % Available-for-sale debt securities: Taxable 2,298 1,001 1,297 129.6 % Tax-exempt 279 286 (7) -2.4 % Held-to-maturity debt securities 2 3 (1) -33.3 % Other interest and dividend income 557 2,086 (1,529) -73.3 % Total interest and dividends 32,756 29,410 3,346 11.4 % Interest expense Deposits 13,933 13,442 491 3.7 % Borrowings 13 - 13 N/A Total interest expense 13,946 13,442 504 3.7 % Net interest income 18,810 15,968 2,842 17.8 % Provision for (reversal of) credit losses 6,956 (118) 7,074 -5994.9 % Net interest income after provision for (reversal of) credit losses 11,854 16,086 (4,232) -26.3 % Non-interest income Income from bank-owned life insurance 494 388 106 27.3 % Fees and service charges 551 465 86 18.5 % Loan fees, including prepayment penalties 703 937 (234) -25.0 % Other 503 297 206 69.4 % Total non-interest income 2,251 2,087 164 7.9 % Non-interest expense Salaries and employee benefits 7,093 6,443 650 10.1 % Occupancy and equipment 2,147 1,850 297 16.1 % Professional fees 721 602 119 19.8 % Data processing and communications 1,543 1,404 139 9.9 % Federal deposit insurance 415 279 136 48.7 % Advertising and promotion 152 156 (4) -2.6 % Office expense 238 155 83 53.5 % Core deposit intangible 219 111 108 97.3 % Other 981 1,009 (28) -2.8 % Total non-interest expense 13,509 12,009 1,500 12.5 % Income before income tax expense 596 6,164 (5,568) -90.3 % Income tax (benefit) expense (92) 1,038 (1,130) -108.9 % Net income $ 688 $ 5,126 (4,438) -86.6 % Net income per common share - basic $ 0.10 $ 0.81 $ (0.71) -87.7 % Net income per common share - diluted $ 0.10 $ 0.80 $ (0.70) -87.5 % Weighted average shares outstanding - basic 6,867 6,334 533 8.4 % Weighted average shares outstanding - diluted 6,895 6,420 475 7.4 % Princeton Bancorp, Inc. Consolidated Statements of Income (Current Quarter vs Prior Quarter) (Unaudited) (Amounts in thousands, except per share data) Three Months Ended June 30, March 31, 2025 2025 $ Change % Change Interest and dividend income Loans and fees $ 29,620 $ 29,624 $ (4) 0.0 % Available-for-sale debt securities: Taxable 2,298 2,616 (318) -12.2 % Tax-exempt 279 284 (5) -1.8 % Held-to-maturity debt securities 2 2 - 0.0 % Other interest and dividend income 557 769 (212) -27.6 % Total interest and dividends 32,756 33,295 (539) -1.6 % Interest expense Deposits 13,933 14,538 (605) -4.2 % Borrowings 13 - 13 N/A Total interest expense 13,946 14,538 (592) -4.1 % Net interest income 18,810 18,757 53 0.3 % Provision for credit losses 6,956 268 6,688 2495.5 % Net interest income after provision for credit losses 11,854 18,489 (6,635) -35.9 % Non-interest income Income from bank-owned life insurance 494 471 23 4.9 % Fees and service charges 551 511 40 7.8 % Loan fees, including prepayment penalties 703 675 28 4.1 % Other 503 533 (30) -5.6 % Total non-interest income 2,251 2,190 61 2.8 % Non-interest expense Salaries and employee benefits 7,093 7,172 (79) -1.1 % Occupancy and equipment 2,147 2,285 (138) -6.0 % Professional fees 721 761 (40) -5.3 % Data processing and communications 1,543 1,626 (83) -5.1 % Federal deposit insurance 415 533 (118) -22.1 % Advertising and promotion 152 171 (19) -11.1 % Office expense 238 110 128 116.4 % Other real estate owned expense - 27 (27) -100.0 % Core deposit intangible 219 228 (9) -3.9 % Other 981 879 102 11.6 % Total non-interest expense 13,509 13,792 (283) -2.1 % Income before income tax expense 596 6,887 (6,291) 91.3 % Income tax (benefit) expense (92) 1,509 (1,601) 106.1 % Net income $ 688 $ 5,378 $ (4,690) 87.2 % Net income per common share - basic $ 0.10 $ 0.78 $ (0.68) 87.2 % Net income per common share - diluted $ 0.10 $ 0.77 $ (0.67) 87.0 % Weighted average shares outstanding - basic 6,867 6,905 (38) -0.6 % Weighted average shares outstanding - diluted 6,895 6,964 (69) -1.0 % Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data) Six Months Ended June 30, 2025 2024 $ Change % Change Interest and dividend income Loans and fees $ 59,244 $ 50,974 $ 8,270 16.2 % Available-for-sale debt securities: Taxable 4,914 1,565 3,349 214.0 % Tax-exempt 563 572 (9) -1.6 % Held-to-maturity debt securities 4 5 (1) -20.0 % Other interest and dividend income 1,326 4,360 (3,034) -69.6 % Total interest and dividends 66,051 57,476 8,575 14.9 % Interest expense Deposits 28,471 26,060 2,411 9.3 % Borrowings 13 - 13 N/A Total interest expense 28,484 26,060 2,424 9.3 % Net interest income 37,567 31,416 6,151 19.6 % Provision for credit losses 7,224 68 7,156 10523.5 % Net interest income after provision for credit losses 30,343 31,348 (1,005) -3.2 % Non-Interest income Income from bank-owned life insurance 965 769 196 25.5 % Fees and service charges 1,062 897 165 18.4 % Loan fees, including prepayment penalties 1,378 1,661 (283) -17.0 % Other 1,036 745 291 39.1 % Total non-interest income 4,441 4,072 369 9.1 % Non-interest expense Salaries and employee benefits 14,265 12,963 1,302 10.0 % Occupancy and equipment 4,432 3,879 553 14.3 % Professional fees 1,482 1,126 356 31.6 % Data processing and communications 3,169 2,564 605 23.6 % Federal deposit insurance 948 552 396 71.7 % Advertising and promotion 323 298 25 8.4 % Office expense 348 274 74 27.0 % Other real estate owned expense 27 - 27 N/A Core deposit intangible 447 231 216 93.5 % Other 1,860 1,958 (98) -5.0 % Total non-interest expense 27,301 23,845 3,456 14.5 % Income before income tax expense 7,483 11,575 (4,092) -35.4 % Income tax expense 1,417 2,104 (687) -32.7 % Net income $ 6,066 $ 9,471 $ (3,405) -36.0 % Net income per common share - basic $ 0.88 $ 1.50 $ (0.61) -40.8 % Net income per common share - diluted $ 0.88 $ 1.48 $ (0.60) -40.6 % Weighted average shares outstanding - basic 6,886 6,331 555 8.8 % Weighted average shares outstanding - diluted 6,929 6,411 518 8.1 % Princeton Bancorp, Inc. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands) For the Three Months Ended June 30, 2025 2024 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Earning assets Loans $ 1,845,920 6.44 % $ 1,585,876 6.60 % $ 260,044 -0.16 % Securities Taxable available-for-sale 195,152 4.71 % 89,547 4.47 % 105,605 0.24 % Tax-exempt available-for-sale 39,025 2.86 % 39,756 2.88 % (731) -0.02 % Held-to-maturity 158 5.33 % 166 5.33 % (8) 0.00 % Total Securities 234,335 4.40 % 129,469 3.98 % 104,866 0.42 % Other interest earning assets Federal funds sold 34,201 4.42 % 133,336 5.45 % (99,135) -1.03 % Other interest-earning assets 14,790 4.91 % 19,338 5.78 % (4,548) -0.87 % Other interest-earning assets 48,991 4.57 % 152,674 5.49 % (103,683) -0.92 % Total interest-earning assets 2,129,246 6.17 % 1,868,019 6.33 % 261,227 -0.16 % Total non-earning assets 165,803 141,377 Total assets $ 2,295,049 $ 2,009,396 Interest-bearing liabilities Checking $ 314,336 2.00 % $ 231,895 1.94 % $ 82,441 0.06 % Savings 170,644 2.29 % 148,377 2.64 % 22,267 -0.35 % Money market 464,917 3.14 % 390,019 3.99 % 74,898 -0.85 % Certificates of deposit 747,773 4.16 % 713,433 4.22 % 34,340 -0.06 % Total interest-bearing deposits 1,697,670 3.29 % 1,483,724 3.64 % 213,946 -0.35 % Non-interest bearing deposits 288,608 243,248 45,361 Total deposits 1,986,278 2.81 % 1,726,972 3.13 % 259,307 -0.32 % Borrowings 1,259 4.18 % - N/A 1,259 N/A Total interest-bearing liabilities (excluding non interest deposits) 1,698,929 3.29 % 1,483,724 3.64 % 215,205 -0.35 % Non-interest-bearing deposits 288,608 243,248 Total cost of funds 1,987,537 2.81 % 1,726,972 3.13 % 260,566 -0.32 % Accrued expenses and other liabilities 42,634 40,874 Stockholders' equity 264,878 241,550 Total liabilities and stockholders' equity $ 2,295,049 $ 2,009,396 Net interest spread 2.88 % 2.69 % Net interest margin 3.54 % 3.44 % Net interest margin (FTE) 1,2 3.58 % 3.48 % 1Includes federal and state tax effect of tax-exempt securities and loans. 2This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below. Princeton Bancorp, Inc. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands) For the Six Months Ended June 30, 2025 2024 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Earning assets Loans $ 1,848,664 6.46 % $ 1,568,541 6.54 % $ 280,123 -0.08 % Securities Taxable available-for-sale 199,548 4.92 % 74,144 4.21 % 125,404 0.71 % Tax-exempt available-for-sale 39,499 2.85 % 40,257 2.84 % (758) 0.01 % Held-to-maturity 159 5.33 % 174 5.21 % (15) 0.12 % Securities 239,206 4.58 % 114,576 3.74 % 124,630 0.84 % Other interest earning assets Federal funds sold 43,705 4.42 % 140,703 5.45 % (96,998) -1.03 % Other interest-earning assets 15,406 4.82 % 19,146 5.71 % (3,740) -0.89 % Other interest-earning assets 59,111 4.53 % 159,848 5.48 % (100,737) -0.95 % Total interest-earning assets 2,146,981 6.20 % 1,842,965 6.27 % 304,016 -0.07 % Total non-earning assets 168,359 141,019 Total assets $ 2,315,340 $ 1,983,984 Interest-bearing liabilities Checking $ 319,777 1.97 % $ 236,963 1.96 % $ 82,814 0.01 % Savings 171,022 2.27 % 148,024 2.57 % 22,998 -0.30 % Money market 470,596 3.12 % 377,084 3.96 % 93,512 -0.84 % Certificates of deposit 756,808 4.30 % 695,870 4.17 % 60,938 0.13 % Total interest-bearing deposits 1,718,203 3.34 % 1,457,941 3.59 % 260,262 -0.25 % Non-interest bearing deposits 288,060 243,669 Total deposits 2,006,263 2.86 % 1,701,610 3.08 % 304,653 -0.22 % Borrowings 639 4.19 % - N/A 639 N/A Total interest-bearing liabilities (excluding non interest deposits) 1,718,842 3.34 % 1,457,941 3.59 % 260,901 -0.25 % Non-interest-bearing deposits 288,060 243,669 Total cost of funds 2,006,902 2.86 % 1,701,610 3.08 % 305,292 -0.22 % Accrued expenses and other liabilities 43,979 41,484 Stockholders' equity 264,459 240,890 Total liabilities and stockholders' equity $ 2,315,340 $ 1,983,984 Net interest spread 2.86 % 2.68 % Net interest margin 3.53 % 3.43 % Net interest margin (FTE) 1,2 3.57 % 3.47 % 1Includes federal and state tax effect of tax-exempt securities and loans. 2This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below. Princeton Bancorp, Inc. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands) For the Three Months Ended June 30, 2025 March 31, 2025 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Earning assets Loans $ 1,845,920 6.44 % $ 1,851,439 6.49 % $ (5,519) -0.05 % Securities Taxable available-for-sale 195,152 4.71 % 203,992 5.13 % (8,840) -0.42 % Tax-exempt available-for-sale 39,025 2.86 % 39,978 2.84 % (953) 0.02 % Held-to-maturity 158 5.33 % 160 5.33 % (2) 0.00 % Total Securities 234,335 4.40 % 244,130 4.76 % (9,795) -0.36 % Other interest earning assets Federal funds sold 34,201 4.42 % 53,314 4.42 % (19,113) 0.00 % Other interest-earning assets 14,790 4.91 % 16,028 4.81 % (1,238) 0.10 % Other interest-earning assets 48,991 4.57 % 69,342 4.51 % (20,351) 0.06 % Total interest-earning assets 2,129,246 6.17 % 2,164,911 6.24 % (35,665) -0.07 % Total non-earning assets 165,803 170,945 Total assets $ 2,295,049 $ 2,335,856 Interest-bearing liabilities Checking $ 314,336 2.00 % $ 325,278 1.94 % $ (10,942) 0.06 % Savings 170,644 2.29 % 171,404 2.24 % (760) 0.05 % Money market 464,917 3.14 % 476,338 3.10 % (11,421) 0.04 % Certificates of deposit 747,773 4.16 % 765,942 4.45 % (18,169) -0.29 % Total interest-bearing deposits 1,697,670 3.29 % 1,738,962 3.39 % (41,292) -0.10 % Non-interest bearing deposits 288,608 287,506 1,102 Total deposits 1,986,278 2.81 % 2,026,468 2.91 % (40,190) -0.10 % Borrowings 1,259 4.18 % - N/A 1,259.00 N/A Total interest-bearing liabilities (excluding non interest deposits) 1,698,929 3.29 % 1,738,962 3.39 % (40,033) -0.10 % Non-interest-bearing deposits 288,608 287,506 Total cost of funds 1,987,537 2.81 % 2,026,468 2.91 % (38,931) -0.10 % Accrued expenses and other liabilities 42,634 45,354 Stockholders' equity 264,878 264,034 Total liabilities and stockholders' equity $ 2,295,049 $ 2,335,856 Net interest spread 2.88 % 2.85 % Net interest margin 3.54 % 3.51 % Net interest margin (FTE) 1,2 3.58 % 3.56 % 1Includes federal and state tax effect of tax-exempt securities and loans. 2This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below. Princeton Bancorp, Inc. Quarterly Financial Highlights (Unaudited) 2025 2025 2024 2024 2024 June March December September June Return on average assets 0.12 % 0.93 % 0.88 % -0.82 % 1.03 % Return on average equity 1.04 % 8.26 % 7.97 % -6.96 % 8.54 % Return on average tangible equity1 1.12 % 8.86 % 8.56 % -7.25 % 8.91 % Net interest margin 3.54 % 3.51 % 3.28 % 3.41 % 3.44 % Net interest margin (FTE)1 3.58 % 3.56 % 3.32 % 3.45 % 3.48 % Adjusted efficiency ratio1 63.10 % 64.75 % 62.62 % 63.65 % 65.90 % COMMON STOCK DATA Market value at period end $ 30.54 $ 30.55 $ 34.43 $ 36.98 $ 33.10 Market range: High $ 32.97 $ 34.31 $ 38.90 $ 39.12 $ 33.10 Low $ 27.69 $ 30.02 $ 33.26 $ 32.40 $ 29.15 Book value per common share at period end $ 38.49 $ 38.56 $ 38.07 $ 38.18 $ 38.54 Tangible book value per common share1 $ 35.91 $ 36.00 $ 35.45 $ 35.52 $ 36.96 Shares of common stock outstanding (in thousands) 6,806 6,923 6,883 6,849 6,353 CAPITAL RATIOS Total capital (to risk-weighted assets) 13.05 % 13.67 % 13.52 % 13.17 % 14.66 % Tier 1 capital (to risk-weighted assets) 12.01 % 12.48 % 12.34 % 12.02 % 13.62 % Tier 1 capital (to average assets) 10.63 % 10.91 % 10.58 % 11.44 % 12.21 % Equity to assets 11.69 % 11.52 % 11.20 % 11.11 % 12.34 % Tangible equity to tangible assets1 10.99 % 10.83 % 10.51 % 10.41 % 11.90 % CREDIT QUALITY DATA (Dollars in thousands) Net charge-offs (recoveries) $ 9,859 $ (60) $ 86 $ 108 $ (15) Annualized net charge-offs (recoveries) to average loans 2.136 % -0.013 % 0.019 % 0.026 % -0.004 % Nonperforming loans $ 16,530 $ 26,522 $ 26,841 $ 2,330 $ 3,198 Other real estate owned - - 295 - - Total nonperforming assets $ 16,530 $ 26,522 $ 27,136 $ 2,330 $ 3,198 Allowance for credit losses as a percent of: Period-end loans, net of deferred fees and costs  1.14 % 1.29 % 1.30 % 1.27 % 1.17 % Nonperforming loans 127.13 % 90.27 % 88.14 % 995.85 % 577.36 % Nonperforming assets 127.13 % 90.27 % 87.18 % 995.85 % 577.36 % Nonaccrual loans as a percent of total loans, net of deferred fees and costs 0.90 % 1.43 % 1.48 % 0.13 % 0.20 % 1This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below. Princeton Bancorp, Inc Supplemental Information – Non-GAAP Financial Measures (Unaudited) This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of its performance. These non-GAAP financial measures are "tangible book value per common share," "return on average tangible equity," "efficiency ratio," "adjusted efficiency ratio," "tangible equity to tangible assets," and "net interest margin on a fully taxable equivalent." For the purpose of calculating return on average tangible equity, net income for such period is annualized and divided by average tangible equity during such period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating tangible equity to tangible assets, tangible equity is divided by tangible assets. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at period end. Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end. For the purpose of calculating tangible book value per common share, tangible equity is divided by the number of common shares outstanding, in each case at period end. For the purpose of calculating efficiency ratio, total operating expense is divided by total revenue for the period. For the purpose of calculating adjusted efficiency ratio, total operating expense minus core deposit intangible amortization and merger-related expenses is divided by total revenue for the period. For the purpose of calculating net interest margin on a fully taxable equivalent, fully taxable equivalent adjustments are added to net interest income for the period, net interest income fully taxable equivalent for such period is annualized and divided by average interest earning assets during such period. Adjusted earnings per share and adjusted diluted earnings per share are calculated by dividing net income adjusted for the provision for credit loss on non-purchase credit deteriorated loans and merger-related expenses by weighted outstanding shares. Management believes that these non-GAAP financial measures provide valuable insights into understanding our financial results by excluding certain items that can distort our core business results. This allows investors to better understand our ongoing operations and assess our future potential, while still being transparent about the adjustments made to arrive at these non-GAAP figures. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition to the items noted above, defined footnotes are included in the Supplemental Information – Non-GAAP Financial Measures table below. Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period. Fully taxable equivalent adjustment is calculated using tax exempt loan income plus tax exempt securities income for the period, multiplied by a tax rate of 28%. Princeton Bancorp, Inc. Supplemental Information - Non-GAAP Financial Measures (Unaudited) (Dollars in thousands) Three months ended 2025 2025 2024 2024 2024 June March December September June Net (loss) income (annualized)1 $ 2,760 $ 21,811 $ 20,794 $ (17,727) $ 20,617 Average equity2 264,878 264,034 261,057 254,645 241,550 Less: average intangible assets3 (17,701) (17,929) (18,148) (10,096) (10,112) Average Tangible Equity $ 247,177 $ 246,250 $ 243,044 $ 236,404 $ 231,506 Return on average tangible equity 1.12 % 8.86 % 8.56 % -7.25 % 8.91 % Net interest income $ 18,810 $ 18,757 $ 18,007 $ 17,109 $ 15,968 Other income 2,251 2,190 2,027 2,056 2,087 Total revenue 21,061 20,947 20,034 19,165 18,055 Non-interest expenses $ 13,509 $ 13,792 $ 12,773 $ 20,144 $ 12,009 Less: core deposit intangible amortization (219) (228) (228) (143) (111) Less: merger-related expenses - - - (7,803) - Total operating expenses $ 13,290 $ 13,564 $ 12,545 $ 12,198 $ 11,898 Adjusted efficiency ratio 63.10 % 64.75 % 62.62 % 63.65 % 65.90 % Total Assets $ 2,241,668 $ 2,318,097 $ 2,340,233 $ 2,354,730 $ 1,983,941 Less: intangible assets (17,566) (17,784) (18,013) (18,241) (10,044) Tangible assets $ 2,224,102 $ 2,300,313 $ 2,322,220 $ 2,336,489 $ 1,973,897 Stockholders' equity $ 261,946 $ 266,987 $ 262,040 $ 261,502 $ 244,841 Less: intangible assets (17,566) (17,784) (18,013) (18,241) (10,044) Tangible equity $ 244,380 $ 249,203 $ 244,027 $ 243,261 $ 234,797 Tangible equity to tangible assets 10.99 % 10.83 % 10.51 % 10.41 % 11.90 % Tangible equity $ 244,380 $ 249,203 $ 244,027 $ 243,261 $ 234,797 Shares outstanding (in thousands) 6,806 6,923 6,883 6,849 6,353 Tangible book value per share $ 35.91 $ 36.00 $ 35.45 $ 35.52 $ 36.96 1Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. 2Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period. 3Average intangible assets is calculated using the sum of daily equity balance for the period, divided by the number of days in the period. Three months ended 2025 2025 2024 2024 2024 June March December September June Net interest income $ 18,810 $ 18,757 $ 18,007 $ 17,109 $ 15,968 FTE adjustment3 212 250 241 211 213 Net interest income FTE $ 19,022 $ 19,007 $ 18,248 $ 17,320 $ 16,181 Net interest income FTE (annualized)1 $ 76,297 $ 77,083 $ 72,595 $ 68,902 $ 65,078 Average interest earning assets 2,129,246 2,164,911 2,185,859 1,998,226 1,868,019 Net interest margin FTE 3.58 % 3.56 % 3.32 % 3.45 % 3.48 % Six-months ended 2025 2024 June June Net interest income $ 37,567 $ 31,416 FTE adjustment3 462 401 Net interest income FTE $ 38,029 $ 31,817 Net interest income FTE (annualized)1 $ 76,688 $ 63,984 Average interest earning assets 2,146,981 1,842,965 Net interest margin FTE 3.57 % 3.47 % 1Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. 3Fully taxable equivalent adjustment is calculated using tax exempt loan income plus tax exempt securities income for the period, multiplied by a tax rate of 28%. Contact George Rapp 609.454.0718 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/princeton-bancorp-announces-second-quarter-2025-results-302513505.html SOURCE The Bank of Princeton