Princeton Bancorp Announces Third Quarter 2025 Results

PRINCETON, N.J., Oct. 29, 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 at, and its results of operations for the quarter and nine months ended, September 30, 2025.

President/CEO Edward Dietzler commented on the quarter results, "The Bank achieved strong quarterly results, with a net income of $6.5 million and an EPS of $0.95. These results were driven by a 23-basis-point increase in the net interest margin to 3.77%, as compared to the prior quarter, reflecting improvements that were driven by higher asset yields and a reduction in funding costs."

The Company reported net income of $6.5 million, or $0.95 per diluted common share, for the third quarter of 2025, compared to $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025, and a net loss of ($4.5) million, or ($0.68) per diluted common share, for the third quarter of 2024. The increase in net income for the third quarter of 2025 when compared to the second quarter of 2025 was primarily due to a decrease in provision for credit losses of $7.6 million, and an increase in net-interest income of $809 thousand, partially offset by a increase in non-interest expense of $408 thousand, a decrease in non-interest income of $343 thousand and an increase in income tax expense of $1.9 million. The increase in net income for the third quarter of 2025 when compared to the third quarter of 2024 was primarily due to $7.8 million in Cornerstone Bank merger-related expenses recorded in the third quarter of 2024, partially offset by an increase in other non-interest expenses of $1.6 million, and an increase of $2.9 million in income tax expense, and an increase of $2.5 million in net-interest income, and a decrease in the provision for credit losses of $5.3 million.

Review of Statements of Financial Condition

Total assets were $2.23 billion at September 30, 2025, a decrease of $111.1 million, or 4.75% 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 $44.5 million, investment securities of $37.2 million, and in net loans of $25.1 million. The decrease in the Company's net loans consisted of decreases of $54.2 million in construction loans, $32.0 million in commercial real estate loans, and $11.5 million in commercial and industrial loans, partially offset by increases of $67.9 million in residential mortgages, and $4.7 million in home equity and consumer loans.

Total deposits on September 30, 2025, decreased $104.0 million, or 5.12%, when compared to December 31, 2024. The decrease in the Company's deposits consisted primarily of decreases in certificates of deposit of $62.8 million, money market deposits of $25.3 million, non-interest-bearing demand deposits of $6.6 million, interest-bearing demand deposits of $6.3 million, and savings deposits of $2.9 million. On balance sheet liquidity remains strong at September 30, 2025.

Total stockholders' equity at September 30, 2025, increased $4.6 million or 1.74% when compared to December 31, 2024. The increase was primarily due to an increase in retained earnings of $6.2 million (which consisted of $12.5 million in net income, partially offset by $6.3 million of cash dividends recorded during the period), an increase in paid-in capital of $2.7 million primarily due to the exercise of stock options, and a decrease in accumulated other comprehensive loss of $3.3 million, partially offset by a $7.6 million increase in treasury stock. The ratio of equity to total assets at September 30, 2025, and at December 31, 2024, was 12.0% and 11.2%, respectively.

Asset Quality

At September 30, 2025, non-performing assets totaled $16.7 million, a decrease of $10.4 million when compared to the amount at December 31, 2024, primarily the result of $10.2 million in charge-offs.

Review of Quarterly Financial Results

Net interest income was $19.6 million for the third quarter of 2025, an increase of $809 thousand over the second quarter of 2025, and an increase of $2.5 million compared to $17.1 million for the third quarter of 2024. The increase in net interest income when compared with the second quarter of 2025 was primarily related a decrease in interest expense of $820 thousand, or 5.9%. The net interest margin for the third quarter of 2025 was 3.77%, an increase of 23 basis points when compared to the second quarter of 2025, and an increase of 36 basis points when compared to the third quarter of 2024. When comparing the third quarter of 2025 and the second quarter of 2025 periods, the decrease in interest expense and the increase in net interest margin were primarily associated with a decrease in total interest-bearing deposits of $61.8 million, as well as a decrease in the Company's cost of funds of 12 basis points. 

When comparing the third quarter of 2025 and third quarter of 2024, the increase in net-interest income increased of $2.5 million, was primarily due to an increase in average interest-earning assets of $65.8 million and the Bank's cost of funds decreasing by 47 basis points. These were partially offset by the increase in average interest-bearing deposits of $53.3 million, and a decrease of 4 basis points in the yield earned on interest-earning assets.

The Company recorded a reversal of credit losses of $672 thousand during the third quarter of 2025,  which consisted of a $659 thousand decrease recorded to the allowance of credit losses, and a decrease to the provision for credit losses of $13 thousand related to unfunded commitments, which are recorded in other liabilities on the Company's statements of financial condition.  The current quarters' reversal of provision recorded on the Company's statements of income was $7.6 million lower when compared to the provision for credit losses for the second quarter of 2025 and was $5.3 million lower when compared to the third quarter of 2024. The coverage ratio of the allowance for credit losses to period end loans was 1.14% at September 30, 2025, and 1.30% at December 31, 2024.

Total non-interest income of $1.9 million for the third quarter of 2025 decreased $343 thousand or 15.2% when compared to the second quarter of 2025 and decreased $148 thousand or 7.2% when compared to the third quarter of 2024. The decrease in the third quarter of 2025 when compared to the second quarter of 2025 was primarily due to a decrease in other non-interest income of $582 thousand, partially offset by an increase in loans fees of $223 thousand. The decrease over the prior year's third quarter was primarily due to a decrease in other non-interest income of $414 thousand, partially offset by an increase in loan fees of $142 thousand and an increase in income from bank owned life insurance of $83 thousand. The decrease in other non-interest income for the third quarter was related to a net loss on an equity investment in the amount of $471 thousand.

Total non-interest expense of $13.9 million for the third quarter of 2025 increased $408 thousand, or 3.0%, when compared to the second quarter of 2025. This increase over the prior quarter was primarily due to increases in professional fees of $346 thousand, and data processing and communications expenses of $165 thousand, partially offset by a decrease in office expense of $125 thousand. Total non-interest expense for the third quarter of 2025 decreased $6.2 million or 30.9% when compared to the third quarter of 2024. This decrease was primarily related to merger-related expenses of $7.8 million recorded in the third quarter of 2024, partially offset by increases in salaries and employee benefits expense of $537 thousand, professional fees of $413 thousand, data processing and communications expense of $252 thousand, and other non-interest expenses of $241 thousand.

For the quarter ended September 30, 2025, the Company recorded an income tax expense of $1.8 million, resulting in an effective tax rate of 21.9%, compared to an income tax benefit of ($92) thousand, resulting in an effective tax rate of (15.4)% for the quarter ended June 30, 2025 and compared to an income tax benefit of ($1.1) million resulting in an effective tax rate of (20.1) % for the quarter ended September 30, 2024.

For the nine-month period ended September 30, 2025, the Company recorded net income of $12.5 million, or $1.82 per diluted common share, compared to $5.0 million, or $0.77 per diluted common share, for the same period in 2024. The increase in net income was primarily due to an increase of $8.7 million in net interest income as well as Cornerstone Bank merger-related expenses recorded in third quarter of 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 the current Federal budget stalemate in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the global impact of 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)

September 30, 2025 vs

September 30, 2025 vs

September 30,

December 31,

September 30,

December 31, 2024

September 30, 2024

2025

2024

2024

$ Change

% Change

$ Change

% Change

ASSETS

Cash and cash equivalents

$

72,892

$

117,348

$

181,058

$

(44,456)

(37.88)

%

$

(108,166)

(59.74)

%

Securities available-for-sale
   taxable

170,011

207,442

147,871

(37,431)

(18.04)

%

22,140

14.97

%

Securities available-for-sale
   tax-exempt

39,917

39,729

40,988

188

0.47

%

(1,071)

(2.61)

%

Securities held-to-maturity

155

161

163

(6)

(3.73)

%

(8)

(4.91)

%

Loans receivable, net of deferred
   loan fees

1,793,787

1,818,875

1,831,407

(25,088)

(1.38)

%

(37,620)

(2.05)

%

Allowance for credit losses

(20,441)

(23,657)

(23,200)

3,216

(13.59)

%

2,759

(11.89)

%

Goodwill

14,381

14,381

14,381

—

—

—

—

Core deposit intangible

2,976

3,632

3,860

(656)

(18.06)

%

(884)

(22.90)

%

Other real estate owned

—

295

—

(295)

(100.00)

%

—

N/A

Other assets

155,412

162,027

158,202

(6,615)

(4.08)

%

(2,790)

(1.76)

%

TOTAL ASSETS

$

2,229,090

$

2,340,233

$

2,354,730

$

(111,143)

(4.75)

%

$

(125,640)

(5.34)

%

LIABILITIES

Non-interest checking

$

294,333

$

300,972

$

302,846

$

(6,639)

(2.21)

%

$

(8,513)

(2.81)

%

Interest checking

294,236

300,559

284,504

(6,323)

(2.10)

%

9,732

3.42

%

Savings

167,968

170,880

178,299

(2,912)

(1.70)

%

(10,331)

(5.79)

%

Money market

465,194

490,543

493,353

(25,349)

(5.17)

%

(28,159)

(5.71)

%

Time deposits over $250,000

226,666

208,858

213,310

17,808

8.53

%

13,356

6.26

%

Other time deposits

480,188

560,813

573,689

(80,625)

(14.38)

%

(93,501)

(16.30)

%

Total deposits

1,928,585

2,032,625

2,046,001

(104,040)

(5.12)

%

(117,416)

(5.74)

%

Borrowings

—

—

—

—

N/A

—

N/A

Other liabilities

33,898

45,568

47,227

(11,670)

(25.61)

%

(13,329)

(28.22)

%

TOTAL LIABILITIES

1,962,483

2,078,193

2,093,228

(115,710)

(5.57)

%

(130,745)

(6.25)

%

STOCKHOLDERS' EQUITY

Paid-in capital

122,559

119,908

119,514

2,651

2.21

%

3,045

2.55

%

Treasury stock ¹

(8,403)

(842)

(842)

(7,561)

897.98

%

(7,561)

897.98

%

Retained earnings

158,081

151,915

148,716

6,166

4.06

%

9,365

6.30

%

Accumulated other
   comprehensive income (loss)

(5,630)

(8,941)

(5,886)

3,311

(37.03)

%

256

(4.35)

%

TOTAL STOCKHOLDERS'
   EQUITY

266,607

262,040

261,502

4,567

1.74

%

5,105

1.95

%

TOTAL LIABILITIES
   AND STOCKHOLDERS'
   EQUITY

$

2,229,090

$

2,340,233

$

2,354,730

(111,143)

(4.21)

%

(125,640)

12.99

%

Book value per common share

$

39.36

$

38.07

$

38.18

$

1.29

3.39

%

$

1.18

3.09

%

Tangible book value per
   common share ²

$

36.80

$

35.45

$

35.52

$

1.35

3.81

%

$

1.28

3.60

%

¹  

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

²  

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

For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

Princeton Bancorp, Inc.

Loan and Deposit Tables

(Unaudited)

 The components of loans receivable, net at September 30, 2025 and December 31, 2024 were as follows:

September 30,

December 31,

2025

2024

(In thousands)

Commercial real estate

$

1,353,039

$

1,385,085

Commercial and industrial

81,370

92,857

Construction

203,004

257,169

Residential first-lien mortgages

135,930

68,030

Home equity / consumer

22,799

18,133

Total loans

1,796,142

1,821,274

Deferred fees and costs

(2,355)

(2,399)

Allowance for credit losses

(20,441)

(23,657)

Loans, net

$

1,773,346

$

1,795,218

The components of deposits at September 30, 2025 and December 31, 2024 were as follows:

September 30,

December 31,

2025

2024

(In thousands)

Demand, non-interest-bearing

$

294,333

$

300,972

Demand, interest-bearing

294,236

300,559

Savings

167,968

170,880

Money market

465,194

490,543

Time deposits

706,854

769,671

Total deposits

$

1,928,585

$

2,032,625

Princeton Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

(Amounts in thousands except per share data)

Three Months Ended
September 30,

2025

2024

$ Change

% Change

Interest and dividend income

Loans and fees

$

29,927

$

28,135

$

1,792

6.4

%

Available-for-sale debt securities:

Taxable

2,214

1,273

941

73.9

%

Tax-exempt

278

285

(7)

(2.5)

%

Held-to-maturity debt securities

2

2

—

—

Other interest and dividend income

324

2,115

(1,791)

(84.7)

%

Total interest and dividends

32,745

31,810

935

2.9

%

Interest expense

Deposits

13,081

14,701

(1,620)

(11.0)

%

Borrowings

45

—

45

N/A

Total interest expense

13,126

14,701

(1,575)

(10.7)

%

Net interest income

19,619

17,109

2,510

14.7

%

Provision for (reversal of) credit losses

(672)

4,601

(5,273)

(114.6)

%

Net interest income after provision for (reversal of) credit
   losses

20,291

12,508

7,783

62.2

%

Non-interest income

Gain (Loss) on sale of securities available-for-sale, net

—

(7)

7

(100.0)

%

Income from bank-owned life insurance

506

423

83

19.6

%

Fees and service charges

555

521

34

6.5

%

Loan fees, including prepayment penalties

926

784

142

18.1

%

Other

(79)

335

(414)

(123.6)

%

Total non-interest income

1,908

2,056

(148)

(7.2)

%

Non-interest expense

Salaries and employee benefits

7,093

6,556

537

8.2

%

Occupancy and equipment

2,146

2,087

59

2.8

%

Professional fees

1,067

654

413

63.1

%

Data processing and communications

1,708

1,456

252

17.3

%

Federal deposit insurance

370

316

54

17.1

%

Advertising and promotion

212

181

31

17.1

%

Office expense

113

190

(77)

(40.5)

%

Core deposit intangible

209

143

66

46.2

%

Merger-related expenses

—

7,803

(7,803)

(100.0)

%

Other

999

758

241

31.8

%

Total non-interest expense

13,917

20,144

(6,227)

(30.9)

%

Income (loss) before income tax expense

8,282

(5,580)

13,862

(248.4)

%

Income tax (benefit) expense

1,816

(1,124)

2,940

(261.6)

%

Net income (loss)

$

6,466

$

(4,456)

10,922

(245.1)

%

Net income (loss) per common share - basic

$

0.95

$

(0.68)

$

1.63

(240.8)

%

Net income (loss) per common share - diluted

$

0.95

$

(0.68)

$

1.63

(240.4)

%

Weighted average shares outstanding - basic

6,776

6,573

203

3.1

%

Weighted average shares outstanding - diluted

6,795

6,573

222

3.4

%

Princeton Bancorp, Inc.

Consolidated Statements of Income (Current Quarter vs Prior Quarter)

(Unaudited)

(Amounts in thousands, except per share data)

Three Months Ended

September 30,

June 30,

2025

2025

$ Change

% Change

Interest and dividend income

Loans and fees

$

29,927

$

29,620

$

307

1.0

%

Available-for-sale debt securities:

Taxable

2,214

2,298

(84)

(3.7)

%

Tax-exempt

278

279

(1)

(0.4)

%

Held-to-maturity debt securities

2

2

—

0.0

%

Other interest and dividend income

324

557

(233)

(41.8)

%

Total interest and dividends

32,745

32,756

(11)

(0.0)

%

Interest expense

Deposits

13,081

13,933

(852)

(6.1)

%

Borrowings

45

13

32

246.2

%

Total interest expense

13,126

13,946

(820)

(5.9)

%

Net interest income

19,619

18,810

809

4.3

%

Provision for (reversal of) credit losses

(672)

6,956

(7,628)

(109.7)

%

Net interest income after provision for (reversal of) credit
losses

20,291

11,854

8,437

71.2

%

Non-interest income

Income from bank-owned life insurance

506

494

12

2.4

%

Fees and service charges

555

551

4

0.7

%

Loan fees, including prepayment penalties

926

703

223

31.7

%

Other

(79)

503

(582)

(115.7)

%

Total non-interest income

1,908

2,251

(343)

(15.2)

%

Non-interest expense

Salaries and employee benefits

7,093

7,093

—

0.0

%

Occupancy and equipment

2,146

2,147

(1)

(0.0)

%

Professional fees

1,067

721

346

48.0

%

Data processing and communications

1,708

1,543

165

10.7

%

Federal deposit insurance

370

415

(45)

(10.8)

%

Advertising and promotion

212

152

60

39.5

%

Office expense

113

238

(125)

(52.5)

%

Core deposit intangible

209

219

(10)

(4.6)

%

Other

999

981

18

1.8

%

Total non-interest expense

13,917

13,509

408

3.0

%

Income before income tax expense

8,282

596

7,686

1289.6

%

Income tax (benefit) expense

1,816

(92)

1,908

(2073.9)

%

Net income

$

6,466

$

688

$

5,778

839.8

%

Net income per common share - basic

$

0.95

$

0.10

$

0.85

852.4

%

Net income per common share - diluted

$

0.95

$

0.10

$

0.85

853.7

%

Weighted average shares outstanding - basic

6,776

6,867

(91)

(1.3)

%

Weighted average shares outstanding - diluted

6,795

6,895

(100)

(1.5)

%

Princeton Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

(Amounts in thousands, except per share data)

Nine Months Ended

September 30,

2025

2024

$ Change

% Change

Interest and dividend income

Loans and fees

$

89,171

$

79,109

$

10,062

12.7

%

Available-for-sale debt securities:

Taxable

7,128

2,838

4,290

151.2

%

Tax-exempt

841

857

(16)

(1.9)

%

Held-to-maturity debt securities

6

7

(1)

(14.3)

%

Other interest and dividend income

1,650

6,475

(4,825)

(74.5)

%

Total interest and dividends

98,796

89,286

9,510

10.7

%

Interest expense

Deposits

41,552

40,761

791

1.9

%

Borrowings

58

—

58

N/A

Total interest expense

41,610

40,761

849

2.1

%

Net interest income

57,186

48,525

8,661

17.8

%

Provision for credit losses

6,552

4,669

1,883

40.3

%

Net interest income after provision for credit losses

50,634

43,856

6,778

15.5

%

Non-Interest income

(Loss) gain on sale of securities available-for-sale, net

—

(7)

7

(100.0)

%

Income from bank-owned life insurance

1,471

1,192

279

23.4

%

Fees and service charges

1,617

1,418

199

14.0

%

Loan fees, including prepayment penalties

2,304

2,445

(141)

(5.8)

%

Other

957

1,080

(123)

(11.4)

%

Total non-interest income

6,349

6,128

221

3.6

%

Non-interest expense

Salaries and employee benefits

21,358

19,519

1,839

9.4

%

Occupancy and equipment

6,578

5,966

612

10.3

%

Professional fees

2,549

1,780

769

43.2

%

Data processing and communications

4,877

4,020

857

21.3

%

Federal deposit insurance

1,318

868

450

51.8

%

Advertising and promotion

535

479

56

11.7

%

Office expense

461

464

(3)

(0.6)

%

Other real estate owned expense

27

—

27

N/A

Core deposit intangible

656

374

282

75.4

%

Merger-related expenses

—

7,803

(7,803)

(100.0)

%

Other

2,859

2,716

143

5.3

%

Total non-interest expense

41,218

43,989

(2,771)

(6.3)

%

Income before income tax expense

15,765

5,995

9,770

163.0

%

Income tax expense

3,233

980

2,253

229.9

%

Net income

$

12,532

$

5,015

$

7,517

149.9

%

Net income per common share - basic

$

1.83

$

0.78

$

1.05

(40.8)

%

Net income per common share - diluted

$

1.82

$

0.77

$

1.05

(40.6)

%

Weighted average shares outstanding - basic

6,849

6,412

437

6.8

%

Weighted average shares outstanding - diluted

6,884

6,496

388

6.0

%

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

For the Three Months Ended September 30,

2025

2024

Change in

Change in

Average
Balance

Yield/
Rate

Average
Balance

Yield/
Rate

Average
Balance

Yield/
Rate

Earning assets

Loans

$

1,817,551

6.53

%

$

1,691,688

6.62

%

$

125,863

(0.09)

%

Securities

Taxable available-for-sale

178,947

4.95

%

111,633

4.56

%

67,314

0.39

%

Tax-exempt available-for-sale

39,269

2.83

%

40,028

2.85

%

(759)

(0.02)

%

Held-to-maturity

156

5.33

%

164

5.33

%

(8)

0.00

%

Total Securities

218,372

4.57

%

151,825

4.11

%

66,547

0.46

%

Other interest earning assets

Federal funds sold

15,911

4.33

%

135,164

5.38

%

(119,253)

(1.05)

%

Other interest-earning assets

12,156

4.92

%

19,549

5.85

%

(7,393)

(0.93)

%

Other interest-earning assets

28,067

4.58

%

154,713

5.44

%

(126,646)

(0.86)

%

Total interest-earning assets

2,063,990

6.29

%

1,998,226

6.33

%

65,764

(0.04)

%

Total non-earning assets

170,260

151,776

Total assets

$

2,234,250

$

2,150,002

Interest-bearing liabilities

Checking

$

297,455

2.06

%

$

258,728

1.86

%

$

38,727

0.20

%

Savings

168,940

2.31

%

159,521

2.57

%

9,419

(0.26)

%

Money market

466,459

3.16

%

443,109

3.85

%

23,350

(0.69)

%

Certificates of deposit

702,996

3.86

%

721,240

4.50

%

(18,244)

(0.64)

%

Total interest-bearing deposits

1,635,850

3.17

%

1,582,598

3.70

%

53,252

(0.53)

%

Non-interest bearing deposits

294,652

269,030

Total deposits

1,930,502

2.69

%

1,851,628

3.16

%

78,874

(0.47)

%

Borrowings

3,749

4.72

%

—

N/A

3,749

N/A

Total interest-bearing liabilities
   (excluding non interest deposits)

1,639,599

3.18

%

1,582,598

3.70

%

57,001

(0.52)

%

Non-interest-bearing deposits

294,652

269,030

Total cost of funds

1,934,251

2.69

%

1,851,628

3.16

%

82,623

(0.47)

%

Accrued expenses and other liabilities

36,911

43,729

Stockholders' equity

263,088

254,645

Total liabilities and stockholders'
   equity

$

2,234,250

$

2,150,002

Net interest spread

3.11

%

2.64

%

Net interest margin

3.77

%

3.41

%

Net interest margin (FTE) ^{1, 2}

3.81

%

3.45

%

¹

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

²

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

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

For the Nine Months Ended September 30,

2025

2024

Change in

Change in

Average
Balance

Yield/
Rate

Average
Balance

Yield/
Rate

Average
Balance

Yield/
Rate

Earning assets

Loans

$

1,838,179

6.49

%

$

1,609,890

6.56

%

$

228,289

(0.07)

%

Securities

Taxable available-for-sale

192,605

4.93

%

86,732

4.36

%

105,873

0.57

%

Tax-exempt available-for-sale

39,421

2.84

%

40,180

2.84

%

(759)

(0.00)

%

Held-to-maturity

158

5.33

%

171

5.25

%

(13)

0.08

%

Securities

232,184

4.58

%

127,083

3.88

%

105,101

0.70

%

Other interest earning assets

Federal funds sold

34,339

4.41

%

138,843

5.43

%

(104,504)

(1.02)

%

Other interest-earning assets

14,311

4.85

%

19,281

5.76

%

(4,970)

(0.91)

%

Other interest-earning assets

48,650

4.54

%

158,124

5.47

%

(109,474)

(0.93)

%

Total interest-earning assets

2,119,013

6.23

%

1,895,097

6.29

%

223,916

(0.06)

%

Total non-earning assets

169,000

144,630

Total assets

$

2,288,013

$

2,039,727

Interest-bearing liabilities

Checking

$

312,254

2.00

%

$

244,271

1.93

%

$

67,983

0.07

%

Savings

170,320

2.28

%

151,884

2.57

%

18,436

(0.29)

%

Money market

469,202

3.13

%

399,253

3.92

%

69,949

(0.79)

%

Certificates of deposit

738,673

4.16

%

704,388

4.28

%

34,285

(0.12)

%

Total interest-bearing deposits

1,690,449

3.29

%

1,499,796

3.63

%

190,653

(0.34)

%

Non-interest bearing deposits

290,281

252,184

Total deposits

1,980,730

2.80

%

1,751,980

3.11

%

228,750

(0.31)

%

Borrowings

1,687

4.59

%

—

—

1,687

N/A

Total interest-bearing liabilities
   (excluding non interest deposits)

1,692,136

3.29

%

1,499,796

3.63

%

192,340

(0.34)

%

Non-interest-bearing deposits

290,281

252,184

Total cost of funds

1,982,417

2.80

%

1,751,980

3.11

%

230,437

(0.31)

%

Accrued expenses and other liabilities

41,599

42,239

Stockholders' equity

263,997

245,508

Total liabilities and stockholders'
   equity

$

2,288,013

$

2,039,727

Net interest spread

2.94

%

2.66

%

Net interest margin

3.61

%

3.42

%

Net interest margin (FTE) ^{1, 2}

3.65

%

3.46

%

¹

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

²

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

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

For the Three Months Ended

September 30, 2025

June 30, 2025

Change in

Change in

Average
Balance

Yield/
Rate

Average
Balance

Yield/
Rate

Average
Balance

Yield/
Rate

Earning assets

Loans

$

1,817,551

6.53

%

$

1,845,920

6.44

%

$

(28,369)

0.09

%

Securities

Taxable available-for-sale

178,947

4.95

%

195,152

4.71

%

(16,205)

0.24

%

Tax-exempt available-for-sale

39,269

2.83

%

39,025

2.86

%

244

(0.03)

%

Held-to-maturity

156

5.33

%

158

5.33

%

(2)

—

Total Securities

218,372

4.57

%

234,335

4.40

%

(15,963)

0.17

%

Other interest earning assets

Federal funds sold

15,911

4.33

%

34,201

4.42

%

(18,290)

(0.09)

%

Other interest-earning assets

12,156

4.92

%

14,790

4.91

%

(2,634)

0.01

%

Other interest-earning assets

28,067

4.58

%

48,991

4.57

%

(20,924)

0.01

%

Total interest-earning assets

2,063,990

6.29

%

2,129,246

6.17

%

(65,256)

0.12

%

Total non-earning assets

170,260

165,803

Total assets

$

2,234,250

$

2,295,049

Interest-bearing liabilities

Checking

$

297,455

2.06

%

$

314,336

2.00

%

$

(16,881)

0.06

%

Savings

168,940

2.31

%

170,644

2.29

%

(1,704)

0.02

%

Money market

466,459

3.16

%

464,917

3.14

%

1,542

0.02

%

Certificates of deposit

702,996

3.86

%

747,773

4.16

%

(44,777)

(0.30)

%

Total interest-bearing deposits

1,635,850

3.17

%

1,697,670

3.29

%

(61,820)

(0.12)

%

Non-interest bearing deposits

294,652

288,608

6,044

Total deposits

1,930,502

2.69

%

1,986,278

2.81

%

(55,776)

(0.12)

%

Borrowings

3,749

4.72

%

1,259

4.18

%

2,490

0.54

%

Total interest-bearing liabilities
   (excluding non interest deposits)

1,639,599

3.18

%

1,698,929

3.29

%

(59,330)

(0.11)

%

Non-interest-bearing deposits

294,652

288,608

6,044

—

Total cost of funds

1,934,251

2.69

%

1,987,537

2.81

%

(53,286)

(0.12)

%

Accrued expenses and other liabilities

36,911

42,634

Stockholders' equity

263,088

264,878

Total liabilities and stockholders'
   equity

$

2,234,250

$

2,295,049

Net interest spread

3.11

%

2.88

%

Net interest margin

3.77

%

3.54

%

Net interest margin (FTE) ^{1, 2}

3.81

%

3.58

%

¹

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

²

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

Princeton Bancorp, Inc.

Quarterly Financial Highlights

(Unaudited)

2025

2025

2025

2024

2024

September

June

March

December

September

Return on average assets

1.15

%

0.12

%

0.93

%

0.88

%

(0.82)

%

Return on average equity

9.75

%

1.04

%

8.26

%

7.97

%

(6.96)

%

Return on average tangible equity¹

10.45

%

1.12

%

8.86

%

8.56

%

(7.25)

%

Net interest margin

3.77

%

3.54

%

3.51

%

3.28

%

3.41

%

Net interest margin (FTE)¹

3.81

%

3.58

%

3.56

%

3.32

%

3.45

%

Adjusted efficiency ratio¹

63.68

%

63.10

%

64.75

%

62.62

%

63.65

%

COMMON STOCK DATA

Market value at period end

$

31.84

$

30.54

$

30.55

$

34.43

$

36.98

Market range:

High

$

34.84

$

32.97

$

34.31

$

38.90

$

39.12

Low

$

29.95

$

27.69

$

30.02

$

33.26

$

32.40

Book value per common share at period end

$

39.48

$

38.49

$

38.56

$

38.07

$

38.18

Tangible book value per common share¹

$

36.80

$

35.91

$

36.00

$

35.45

$

35.52

Shares of common stock outstanding (in thousands)

6,773

6,806

6,923

6,883

6,849

CAPITAL RATIOS

Total capital (to risk-weighted assets)

13.78

%

13.05

%

13.67

%

13.52

%

13.17

%

Tier 1 capital (to risk-weighted assets)

12.73

%

12.01

%

12.48

%

12.34

%

12.02

%

Tier 1 capital (to average assets)

11.15

%

10.63

%

10.91

%

10.58

%

11.44

%

Equity to assets

11.96

%

11.69

%

11.52

%

11.20

%

11.11

%

Tangible equity to tangible assets¹

11.27

%

10.99

%

10.83

%

10.51

%

10.41

%

CREDIT QUALITY DATA (Dollars in thousands)

Net charge-offs (recoveries)

$

(86)

$

9,859

$

(60)

$

86

$

108

Annualized net charge-offs (recoveries) to average
   loans

(0.019)

%

2.136

%

(0.013)

%

0.019

%

0.026

%

Nonperforming loans

$

16,710

$

16,530

$

26,522

$

26,841

$

2,330

Other real estate owned

—

—

—

295

—

Total nonperforming assets

$

16,710

$

16,530

$

26,522

$

27,136

$

2,330

Allowance for credit losses as a percent of:

Period-end loans, net of deferred fees and costs

1.14

%

1.14

%

1.29

%

1.30

%

1.27

%

Nonperforming loans

122.33

%

127.13

%

90.27

%

88.14

%

995.85

%

Nonperforming assets

122.33

%

127.13

%

90.27

%

87.18

%

995.85

%

Nonaccrual loans as a percent of total loans, net of
   deferred fees and costs

0.93

%

0.90

%

1.43

%

1.48

%

0.13

%

¹ 

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

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

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

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

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

Princeton Bancorp, Inc.

Supplemental Information - Non-GAAP Financial Measures

(Unaudited)

(Dollars in thousands)

Three months ended

2025

2025

2025

2024

2024

September

June

March

December

September

Net (loss) income (annualized)¹

$

25,653

$

2,760

$

21,811

$

20,794

$

(17,727)

Average equity²

263,088

264,878

264,034

261,057

254,645

Less: average intangible assets³

(17,493)

(17,701)

(17,929)

(18,148)

(10,096)

Average Tangible Equity

$

245,595

$

247,177

$

246,105

$

242,909

$

244,549

Return on average tangible equity

10.45

%

1.12

%

8.86

%

8.56

%

(7.25)

%

Net interest income

$

19,619

$

18,810

$

18,757

$

18,007

$

17,109

Other income

1,908

2,251

2,190

2,027

2,056

Total revenue

21,527

21,061

20,947

20,034

19,165

Non-interest expenses

$

13,917

$

13,509

$

13,792

$

12,773

$

20,144

Less: core deposit intangible amortization

(209)

(219)

(228)

(228)

(143)

Less: merger-related expenses

—

—

—

—

(7,803)

Total operating expenses

$

13,708

$

13,290

$

13,564

$

12,545

$

12,198

Adjusted efficiency ratio

63.68

%

63.10

%

64.75

%

62.62

%

63.65

%

Total Assets

$

2,229,090

$

2,241,668

$

2,318,097

$

2,340,233

$

2,354,730

Less: intangible assets

(17,357)

(17,566)

(17,784)

(18,013)

(18,241)

Tangible assets

$

2,211,733

$

2,224,102

$

2,300,313

$

2,322,220

$

2,336,489

Stockholders' equity

$

266,607

$

261,946

$

266,987

$

262,040

$

261,502

Less: intangible assets