UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.06. Material Impairments.
As previously reported, at March 31, 2025, the Registrant’s non-performing assets totaled $26.5 million, $25.3 million of which was attributable to the delinquency of two commercial real estate loans with collateral supporting each loan. The Registrant is a participant in these loans, and the lead bank is in the process of placing the collateral for these loans on the market for possible sale. Based on the bids received for such loans, on May 28, 2025, the Registrant’s Board of Directors, Chief Executive Officer and Chief Financial Officer concluded that a material charge for impairment to such loans is required under generally accepted accounting principles applicable to the Registrant.
The amount of the net impairment charge is estimated to be $9.9 million, $2.4 million of which has already been reserved for in the Registrant’s allowance for loan losses. The after-tax effect on the Registrant’s consolidated statements of income is estimated to be approximately ($6.0 million), or ($0.86) per diluted common share.
The occupancy of both properties should be sufficient to cover the day-to-day operations and general maintenance.
Forward-Looking Statements
The Registrant may from time to time make written or oral “forward-looking statements,” including statements contained in the Registrant’s filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Registrant (including this press release), which are made in good faith by the Registrant 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 Registrant’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Registrant’s control). 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 level of success or failure of the borrowers under the loans discussed and their businesses; inflation and the costs of goods and services; the strength of the United States economy in general and the strength of the local economies in which the Registrant 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; risks relating to the real estate market and the Bank’s real estate collateral, including the risk that the value of such collateral will decrease; the impact of changes in applicable laws and regulations; technological changes; and changes in consumer spending and saving habits.
The Registrant cautions that the foregoing list of important factors is not exclusive. The Registrant 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 Registrant, except as required by applicable law or regulation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PRINCETON BANCORP. INC. | ||||||
| Dated: May 28, 2025 | ||||||
| By: | /s/ George S. Rapp | |||||
| George S. Rapp | ||||||
| Executive Vice President and Chief Financial Officer | ||||||