Princeton Bancorp Announces YTD & Fourth Quarter 2025 Results

Princeton Bancorp, Inc. (the "Company") (NASDAQ - BPRN), the bank holding company for The Bank of Princeton (the "Bank"), today reported its unaudited financial condition at, and its results of operations for the quarter and twelve-months ended, December 31, 2025.

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

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

Review of Statements of Financial Condition

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

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

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

Asset Quality

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

Review of Quarterly and Year-to-Date Financial Results

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

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

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

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

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

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

For the year ending December 31, 2025, income tax expense was $5.1 million resulting in an effective tax rate of 21.4% compared to income tax expense of $2.6 million and an effective tax rate of 20.1% for the year ended December 31, 2024.

About Princeton Bancorp, Inc. and The Bank of Princeton

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 28 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation.

Forward-Looking Statements

The Company may from time to time make written or oral "forward-looking statements," including statements contained in the Company's filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company (including this press release), which are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Company's plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company's control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the potential impact of any future Federal budget stalemates in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the global impact of foreign military conflicts; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Bank's products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors' products and services; the willingness of customers to substitute competitors' products and services for the Bank's products and services; credit risk associated with the Bank's lending activities; risks relating to the real estate market and the Bank's real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; and the timing and nature of the regulatory response to any applications filed by the Company and the Bank; technological changes; other acquisitions; changes in consumer spending and saving habits; those risks under the heading "Risk Factors" set forth in the Bank's Annual Report on Form 10-K for the year ended December 31, 2024, and the success of the Company at managing the risks involved in the foregoing.

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

Princeton Bancorp, Inc.

Loan and Deposit Tables

(Unaudited)

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

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