Princeton Bancorp Announces First Quarter 2025 Results

Company Release - 4/24/2025 , /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 stock1 (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 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/princeton-bancorp-announces-first-quarter-2025-results-302437497.html SOURCE The Bank of Princeton