Princeton Bancorp Announces YTD & Fourth Quarter 2024 Results

, /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 at and for the quarter and twelve-months ended December 31, 2024. President/CEO Edward Dietzler commented, "We are proud to have completed our 17th year of operations with a successful performance. We completed the acquisition of Cornerstone Bank, continuing our long-term strategic plan of becoming the community bank of choice up and down the I-95 corridor. At December 31, 2024, the Bank entered a new milestone by exceeding $2.0 billion in assets, supported by growth in core loans and deposits while maintaining a strong capital position. The Bank remains well positioned to continue our conservative growth path with our experienced management team." The Company reported a net income of $5.2 million, or $0.75 per diluted common share, for the fourth quarter of 2024, compared to net loss of ($4.5) million, or ($0.68) per diluted common share, for the third quarter of 2024, and net income of $5.3 million, or $0.82 per diluted common share, for the fourth quarter of 2023. The increase in net income for the fourth quarter of 2024 when compared to the third quarter of 2024 was primarily due to a decrease of $7.4 million in non-interest expense, a decrease in the provision for credit losses of $4.2 million and an increase in net-interest income of $900 thousand, partially offset by an increase in income tax expense of $2.7 million. The variance in non-operating expenses was impacted by a one-time recorded charge in the third quarter of 2024 of $7.8 million in merger related expenses along with a $3.2 million provision for credit loss associated with the acquired non-purchase credit deteriorated loans related to the acquisition of Cornerstone Financial Corporation ("Cornerstone"). The decrease in net income for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was primarily due to increases of $1.8 million and $598 thousand in non-interest expense and income tax expense, respectively, mostly offset by increases of $2.1 million and $248 thousand in net interest income after provision for loan losses and non-interest income, respectively. Review of Statements of Financial Condition Total assets were $2.34 billion at December 31, 2024, an increase of $423.7 million, or 22.11% when compared to $1.92 billion at the end of 2023. The primary reasons for the increase in total assets were the acquisition of Cornerstone on August 23, 2024, which had approximately $303.5 million in assets at closing, and increases from existing core operations. When looking at specific components of the balance sheet, including acquired assets, the Company recorded an increase in net loans of $270.5 million, an increase in investments of $155.8 million, an increase in other assets of $24.9 million and a decrease in cash and cash equivalents of approximately $33.2 million that was partially used to purchase investment securities. The increase in the Company's net loans consisted of increases of $242.2 million in commercial real estate loans, $41.9 million in commercial and industrial loans, $30.0 million in residential mortgages, and $10.1 in home equity and consumer loans, all partially offset by a decrease of $53.0 million in construction loans. Total deposits on December 31, 2024, increased $396.9 million, or 24.26%, when compared to December 31, 2023. The primary reasons for the increase in total deposits were the $282.8 million in deposits acquired from Cornerstone and an increase of $114.1 million from existing branch operations. The increase in the Company's deposits consisted of increases in money market deposits of $136.5 million, certificates of deposit of $131.6 million, interest-bearing demand deposits of $52.6 million, non-interest-bearing deposits of $51.7 million, and savings deposits of $24.4 million. Total stockholders' equity at December 31, 2024, increased $21.8 million or 9.09% when compared to December 31, 2023. The increase was primarily due to the $21.6 million increase in paid-in capital which is primarily associated with the issuance of $20.0 million of common stock related to the acquisition of Cornerstone, an increase in retained earnings of $2.5 million, which consisted of $10.2 million in net income, partially offset by $7.7 million of cash dividends recorded during the period and partially offset by an increase in accumulated other comprehensive loss of $1.4 million. The ratio of equity to total assets at December 31, 2024 and at December 31, 2023 was 11.2% and 12.5%, respectively. The current period ratio decrease was primarily due to the Cornerstone acquisition. Asset Quality At December 31, 2024, non-performing assets totaled $27.1million, an increase of $20.4 million when compared to the amount at December 31, 2023. The increase was due to the delinquency of two commercial real estate loans totaling $25.4 million with collateral supporting each loan. The Company is a participant in these loans and is currently evaluating its options with the lead bank, including but not limited to placing the loans on the market for sale. Review of Quarterly and Year-to-Date Financial Results Net interest income was $18.0 million for the fourth quarter of 2024, compared to $17.1 million for the third quarter of 2024 and $16.0 million for the fourth quarter of 2023. The increase from the previous quarter was the result of an increase in interest income of $1.9 million, or 5.8%, partially offset by an increase in interest expense of $1.0 million, or 6.5%. The net interest margin for the fourth quarter of 2024 was 3.28%, a decrease by 13 basis points when compared to the third quarter of 2024, and a decrease by 27 basis points when compared to the fourth quarter of 2023. When comparing the two 2024 periods, the increase in interest expense and the decrease in net interest margin were primarily associated with an increase in total interest-bearing deposits of $164.6 million and partially offset by a 13-basis point decrease in the rate on such deposits. This resulted in a decrease in the Company's cost of funds of 12 basis points. The increase in interest income for the fourth quarter was due to a $187.6 million increase in average interest-earning assets, partially offset by a 21-basis point decrease in the yield on interest-earning assets when compared to the third quarter of 2024. When comparing the three-month periods ended December 31, 2024 and 2023, net-interest income increased by $2.0 million, which was primarily due to an increase in average interest-earning assets of $396.2 million and an increase of 2 basis points in the yield earned on interest-earning assets, partially offset by the increase in average interest-bearing deposits of $357.1 million and an increase of 26 basis points in the cost of funds. For the year ended December 31, 2024, the Company recorded net income of $10.2 million, or $1.55 per diluted common share, compared to $25.8 million, or $4.03 per diluted common share, for the same period in 2023. This year-to-date decrease was primarily the result of a $9.7 bargain purchase gain which included a tax benefit of $2.0 million in 2023 from the Company's acquisition of Noah Bank in May of that year, and the purchase accounting adjustments recorded in 2024 related to the Cornerstone acquisition, which included an increase of $2.0 million in the provision for credit losses when comparing both periods. For the year ended December 31, 2024, net interest income of $66.5 million increased $1.5 million, or 2.3%, compared to net interest income of $65.0 million for the year ended December 31, 2023. The increase from the previous year was the result of an increase in interest income of $24.8 million, or 25.2%, partially offset by an increase in interest expense of $23.3 million, or 70.1%. The Company recorded a provision for credit losses of $440 thousand during the fourth quarter of 2024, which consisted of an increase in the required reserve for credit losses on loans in the amount of $543 thousand and a decrease in the reserve for unfunded liabilities of $103 thousand. The current quarters' provision recorded on the Company's statements of income was $4.2 million lower when compared to the provision for credit losses for the quarter ended September 30, 2024, most of which was primarily attributed to the acquisition of Cornerstone Bank. When comparing the three-month periods of December 31, 2024, and 2023, the provision for credit losses decreased $122 thousand. For the quarter ended December 31, 2024, the Company recorded charge-offs of $107 thousand and recoveries of $21 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.30% at December 31, 2024 and 1.19% at December 31, 2023. Total non-interest income of $2.0 million for the fourth quarter of 2024 decreased $29 thousand or 1.4% when compared to the third quarter of 2024 and increased $248 thousand or 13.9% when compared to the quarter ended December 31, 2023. The increase over the prior year quarter was primarily due to an increase in other non-interest income of $143 thousand and an increase in income from bank owned life insurance of $104 thousand. For the year ended December 31, 2024, non-interest income decreased $9.0 million, or by 52.4%, primarily due to the $9.7 million bargain purchase gain from the Noah Bank acquisition, partially offset by an increase in other non-interest income of $646 thousand and an increase in income from bank owned life insurance of $380 thousand over the same period in 2023. Total non-interest expense of $12.8 million for the fourth quarter of 2024 decreased $7.4 million, or 36.6%, when compared to the third quarter of 2024. This increase over the prior quarter was primarily due to the $7.8 million in merger costs associated with the Cornerstone acquisition recorded in the third quarter of 2024. Total non-interest expense for the fourth quarter of 2024 increased $1.8 million or 16.7% when compared to the fourth quarter of 2023.This increase was primarily related to the Cornerstone acquisition, as salaries and benefits expense increased by $484 thousand, occupancy and equipment expense increased by $392 thousand, data processing and communications expense increased by $192 thousand, professional fees increased by $370 thousand and core deposit intangible expense increased by $104 thousand. For the year ended December 31, 2024, non-interest expense was $56.8 million, compared to $48.7 million for 2023. The increase of $8.0 million was primarily attributed increases in salaries and employee benefits of $2.7 million, occupancy and equipment of $1.2 million, professional fees of $515 thousand, data processing and communications of $352 thousand, federal deposit insurance of $254 thousand and merger-related expenses of $2.2 million during 2024 over the same period in 2023. The Cornerstone acquisition caused a significant portion of such increases. For the three-month period ended December 31, 2024, the Company recorded an income tax expense of $1.6 million, resulting in an effective tax rate of 23.4%, compared to an income tax benefit of $1.1 million resulting in an effective tax rate of (20.1)% for the three-month period ended September 30, 2024 and compared to an income tax expense of $1.0 million resulting in an effective tax rate of 15.9% for the three-month period ended December 31, 2023. For the year ending December 31, 2024, income tax expense was $2.6 million resulting in an effective tax rate of 20.1% compared to income tax expense of $4.6 million and an effective tax rate of 15.1% for the year ended December 31, 2023. This decrease was due to the income taxes on the $9.7 million non-taxable bargain purchase gain from the Noah Bank acquisition, recorded in the year end December 31, 2023, and an increase in 2024 merger related expenses of $2.2 million when comparing December 31, 2024, and 2023. 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 inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage 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 may be more difficult; 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, 2023, 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) December 31, 2024 vs December 31, December 31, December 31, 2023 2024 2023 $ Change % Change ASSETS Cash and cash equivalents $ 117,348 $ 150,557 $ (33,209) (22.06) % Securities available-for-sale taxable 207,442 50,544 156,898 310.42 Securities available-for-sale tax-exempt 39,729 40,808 (1,079) (2.64) Securities held-to-maturity 161 193 (32) (16.58) Loans receivable, net of deferred loan fees 1,818,875 1,548,335 270,540 17.47 Allowance for credit losses (23,657) (18,492) (5,165) 27.93 Goodwill 14,381 8,853 5,528 62.44 Core deposit intangible 3,632 1,422 2,210 155.41 Equity method investments 11,160 8,296 2,864 34.52 Other real estate owned 295 - 295 N/A Other assets 150,867 125,981 24,886 19.75 TOTAL ASSETS $ 2,340,233 $ 1,916,497 $ 423,736 22.11 % LIABILITIES Non-interest checking $ 300,972 $ 249,282 $ 51,690 20.74 % Interest checking 300,559 247,939 52,620 21.22 Savings 170,880 146,484 24,396 16.65 Money market 490,543 354,005 136,538 38.57 Time deposits over $250,000 208,858 150,113 58,745 39.13 Other time deposits 560,813 487,918 72,895 14.94 Total deposits 2,032,625 1,635,741 396,884 24.26 Borrowings - - - - Other liabilities 45,568 40,545 5,023 12.39 TOTAL LIABILITIES 2,078,193 1,676,286 401,907 23.98 STOCKHOLDERS' EQUITY Paid-in capital 119,908 98,291 21,617 21.99 Treasury stock 1 (842) - (842) N/A Retained earnings 151,915 149,414 2,501 1.67 Accumulated other comprehensive income (loss) (8,941) (7,494) (1,447) 19.31 TOTAL STOCKHOLDERS' EQUITY 262,040 240,211 21,829 9.09 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,340,233 $ 1,916,497 $ 423,736 22.11 % Book value per common share $ 38.07 $ 38.04 $ 0.03 0.08 % Tangible book value per common share 2 $ 35.45 $ 36.41 $ (0.96) (2.64) % 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 December 31, 2024 and December 31, 2023 were as follows: December 31, December 31, 2024 2023 (In thousands) Commercial real estate $ 1,385,085 $ 1,142,864 Commercial and industrial 92,857 50,961 Construction 257,169 310,187 Residential first-lien mortgages 68,030 38,040 Home equity / consumer 18,133 8,081 Total loans 1,821,274 1,550,133 Deferred fees and costs (2,399) (1,798) Allowance for credit losses (23,657) (18,492) Loans, net $ 1,795,218 $ 1,529,843 The components of deposits at December 31, 2024 and December 31, 2023 were as follows: December 31. December 31, 2024 2023 (In thousands) Demand, non-interest-bearing $ 300,972 $ 249,282 Demand, interest-bearing 300,559 247,939 Savings 170,880 146,484 Money market 490,543 354,005 Time deposits 769,671 638,031 Total deposits $ 2,032,625 $ 1,635,741 Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands except per share data) Three Months Ended December 31, 2024 2023 $ Change % Change Interest and dividend income Loans and fees $ 29,477 $ 24,364 $ 5,113 21.0 % Available-for-sale debt securities: Taxable 2,090 412 1,678 407.3 % Tax-exempt 285 285 0 0.0 % Held-to-maturity debt securities 2 2 0 0.0 % Other interest and dividend income 1,806 2,491 (685) -27.5 % Total interest and dividends 33,660 27,554 6,106 22.2 % Interest expense Deposits 15,653 11,544 4,109 35.6 % Borrowings - - 0 N/A Total interest expense 15,653 11,544 4,109 35.6 % Net interest income 18,007 16,010 1,997 12.5 % Provision for (reversal of) credit losses 440 562 (122) -21.7 % Net interest income after provision for (reversal of) credit losses 17,567 15,448 2,119 13.7 % Non-interest income Gain (Loss) on sale of securities available-for-sale, net - 45 (45) -100.0 % Income from bank-owned life insurance 481 377 104 27.6 % Fees and service charges 527 462 65 14.1 % Loan fees, including prepayment penalties 637 656 (19) -2.9 % Other 382 239 143 59.8 % Total non-interest income 2,027 1,779 248 13.9 % Non-interest expense Salaries and employee benefits 6,518 6,034 484 8.0 % Occupancy and equipment 2,241 1,849 392 21.2 % Professional fees 795 425 370 87.1 % Data processing and communications 1,358 1,166 192 16.5 % Federal deposit insurance 277 190 87 45.8 % Advertising and promotion 151 129 22 17.1 % Office expense 157 116 41 35.3 % Other real estate owned expense 14 - 14 100.0 % Core deposit intangible 228 124 104 83.9 % Other 1,034 916 118 12.9 % Total non-interest expense 12,773 10,949 1,824 16.7 % Income before income tax expense 6,821 6,278 543 8.6 % Income tax expense 1,594 996 598 60.0 % Net income $ 5,227 $ 5,282 (55) -1.0 % Net income per common share - basic $ 0.76 $ 0.84 $ (0.08) -9.5 % Net income per common share - diluted $ 0.75 $ 0.82 $ (0.07) -8.5 % Weighted average shares outstanding - basic 6,880 6,300 580 9.2 % Weighted average shares outstanding - diluted 6,984 6,414 570 8.9 % Princeton Bancorp, Inc. Consolidated Statements of Income (Current Quarter vs Prior Quarter) (Unaudited) (Amounts in thousands, except per share data) Three Months Ended December 31, September 30, 2024 2024 $ Change % Change Interest and dividend income Loans and fees $ 29,477 $ 28,135 $ 1,342 4.8 % Available-for-sale debt securities: Taxable 2,090 1,273 817 64.2 % Tax-exempt 285 285 0 0.0 % Held-to-maturity debt securities 2 2 0 0.0 % Other interest and dividend income 1,806 2,115 (309) -14.6 % Total interest and dividends 33,660 31,810 1,850 5.8 % Interest expense Deposits 15,653 14,701 952 6.5 % Borrowings - - - N/A Total interest expense 15,653 14,701 952 6.5 % Net interest income 18,007 17,109 898 5.2 % Provision for (reversal of) credit losses 440 4,601 (4,161) -90.4 % Net interest income after provision for (reversal of) credit losses 17,567 12,508 5,059 40.4 % Non-interest income Gain on call/sale of securities available-for-sale - (7) 7 -100.0 % Income from bank-owned life insurance 481 423 58 13.7 % Fees and service charges 527 521 6 1.2 % Loan fees, including prepayment penalties 637 784 (147) -18.8 % Other 382 335 47 14.0 % Total non-interest income 2,027 2,056 (29) -1.4 % Non-interest expense Salaries and employee benefits 6,518 6,556 (38) -0.6 % Occupancy and equipment 2,241 2,087 154 7.4 % Professional fees 795 654 141 21.6 % Data processing and communications 1,358 1,456 (98) -6.7 % Federal deposit insurance 277 316 (39) -12.3 % Advertising and promotion 151 181 (30) -16.6 % Office expense 157 190 (33) -17.4 % Other real estate owned expense 14 - 14 100.0 % Core deposit intangible 228 143 85 59.4 % Merger-related expenses - 7,803 (7,803) -100.0 % Other 1,034 758 276 36.4 % Total non-interest expense 12,773 20,144 (7,371) -36.6 % Income (loss) before income tax expense 6,821 (5,580) 12,401 222.2 % Income tax (benefit) expense 1,594 (1,124) 2,718 241.8 % Net (loss) income $ 5,227 $ (4,456) $ 9,683 217.3 % Net (loss) income per common share - basic $ 0.76 $ (0.68) $ 1.44 211.8 % Net (loss) income per common share - diluted $ 0.75 $ (0.68) $ 1.43 210.3 % Weighted average shares outstanding - basic 6,880 6,573 307 4.7 % Weighted average shares outstanding - diluted 6,984 6,573 411 6.3 % Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data) Year ended December 31, 2024 2023 $ Change % Change Interest and dividend income Loans and fees $ 108,586 $ 89,278 $ 19,308 21.6 % Available-for-sale debt securities: Taxable 4,928 1,339 3,589 268.0 % Tax-exempt 1,142 1,138 4 0.4 % Held-to-maturity debt securities 9 10 (1) -10.0 % Other interest and dividend income 8,281 6,415 1,866 29.1 % Total interest and dividends 122,946 98,180 24,766 25.2 % Interest expense Deposits 56,414 33,046 23,368 70.7 % Borrowings - 118 (118) -100.0 % Total interest expense 56,414 33,164 23,250 70.1 % Net interest income 66,532 65,016 1,516 2.3 % Provision for credit losses 5,109 3,108 2,001 64.4 % Net interest income after provision for credit losses 61,423 61,908 (485) -0.8 % Non-Interest income (Loss) gain on sale of securities available-for-sale, net (7) 39 (46) -117.9 % Income from bank-owned life insurance 1,673 1,293 380 29.4 % Fees and service charges 1,945 1,853 92 5.0 % Loan fees, including prepayment penalties 3,082 3,221 (139) -4.3 % Bargain purchase gain - 9,696 (9,696) -100.0 % Gain on sale of other real estate owned - 203 (203) -100.0 % Other 1,462 816 646 79.2 % Total non-interest income 8,155 17,121 (8,966) -52.4 % Non-interest expense Salaries and employee benefits 26,037 23,386 2,651 11.3 % Occupancy and equipment 8,207 7,037 1,170 16.6 % Professional fees 2,575 2,060 515 25.0 % Data processing and communications 5,378 5,026 352 7.0 % Federal deposit insurance 1,145 891 254 28.5 % Advertising and promotion 630 504 126 25.0 % Office expense 621 508 113 22.2 % Other real estate owned expense 14 1 13 1300.0 % Core deposit intangible 602 502 100 19.9 % Merger-related expenses 7,803 5,635 2,168 38.5 % Other 3,750 3,144 606 19.3 % Total non-interest expense 56,762 48,694 8,068 16.6 % Income before income tax expense 12,816 30,335 (17,519) -57.8 % Income tax expense 2,574 4,570 (1,996) -43.7 % Net income $ 10,242 $ 25,765 $ (15,523) -60.2 % Net income per common share - basic $ 1.57 $ 4.10 $ (2.53) -61.7 % Net income per common share - diluted $ 1.55 $ 4.03 $ (2.48) -61.5 % Weighted average shares outstanding - basic 6,530 6,281 249 4.0 % Weighted average shares outstanding - diluted 6,620 6,388 232 3.6 % Princeton Bancorp, Inc. Consolidated Average Statement of Financial Condition (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2024 2023 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Earning assets Loans $ 1,821,229 6.44 % $ 1,522,906 6.35 % $ 298,323 0.09 % Securities Taxable available-for-sale 175,898 4.75 % 47,566 3.46 % 128,332 1.29 % Tax-exempt available-for-sale 40,415 2.82 % 38,157 2.99 % 2,258 -0.17 % Held-to-maturity 162 5.33 % 194 5.28 % (32) 0.05 % Securities 216,475 4.39 % 85,917 3.26 % 130,558 1.13 % Other interest earning assets Federal funds sold 128,652 4.78 % 161,903 5.44 % (33,251) -0.66 % Other interest-earning assets 19,503 5.31 % 18,898 5.71 % 605 -0.40 % Other interest-earning assets 148,155 4.85 % 180,801 5.47 % (32,646) -0.62 % Total interest-earning assets 2,185,859 6.13 % 1,789,624 6.11 % 396,235 0.02 % Total non-earning assets 172,357 138,225 Total assets $ 2,358,216 $ 1,927,849 Interest-bearing liabilities Checking $ 300,728 1.87 % $ 250,941 1.96 % $ 49,787 -0.09 % Savings 174,376 2.39 % 146,294 2.32 % 28,082 0.07 % Money market 489,485 3.45 % 353,372 3.72 % 136,113 -0.27 % Certificates of deposit 782,647 4.54 % 639,547 3.81 % 143,100 0.73 % Total interest-bearing deposits 1,747,236 3.56 % 1,390,154 3.29 % 357,082 0.27 % Non-interest bearing deposits 300,854 258,663 42,191 Total deposits 2,048,090 3.04 % 1,648,817 2.78 % 399,273 0.26 % Borrowings - N/A - N/A - N/A Total interest-bearing liabilities (excluding non interest deposits) 1,747,236 3.56 % 1,390,154 3.29 % 357,082 0.27 % Non-interest-bearing deposits 300,854 258,663 Total cost of funds 2,048,090 3.04 % 1,648,817 2.78 % 399,273 0.26 % Accrued expenses and other liabilities 49,069 44,404 Stockholders' equity 261,057 234,628 Total liabilities and stockholders' equity $ 2,358,216 $ 1,927,849 Net interest spread 2.56 % 2.81 % Net interest margin 3.28 % 3.55 % Net interest margin (FTE) 1,2 3.32 % 3.60 % 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 Year Ended December 31, 2024 2023 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Earning assets Loans $ 1,663,013 6.53 % $ 1,449,504 6.16 % $ 213,509 0.37 % Securities Taxable available-for-sale 109,145 4.51 % 43,476 3.08 % 65,669 1.43 % Tax-exempt available-for-sale 40,239 2.84 % 40,264 2.83 % (25) 0.01 % Held-to-maturity 169 5.27 % 197 5.28 % (28) -0.01 % Securities 149,553 4.06 % 83,937 2.96 % 65,616 1.10 % Other interest earning assets Federal funds sold 136,281 5.27 % 109,441 5.35 % 26,840 -0.08 % Other interest-earning assets 19,337 5.65 % 10,064 5.53 % 9,273 0.12 % Other interest-earning assets 155,618 5.32 % 119,505 5.37 % 36,113 -0.05 % Total interest-earning assets 1,968,184 6.25 % 1,652,947 5.94 % 315,237 0.31 % Total non-earning assets 151,600 122,320 Total assets $ 2,119,784 $ 1,775,267 Interest-bearing liabilities Checking $ 258,462 1.91 % $ 250,312 1.46 % $ 8,150 0.45 % Savings 157,538 2.52 % 159,175 1.72 % (1,637) 0.80 % Money market 421,934 3.79 % 311,478 3.07 % 110,456 0.72 % Certificates of deposit 724,060 4.35 % 538,343 3.17 % 185,717 1.18 % Total interest-bearing deposits 1,561,994 3.61 % 1,259,308 2.62 % 302,686 0.99 % Non-interest bearing deposits 264,418 248,233 Total deposits 1,826,412 3.09 % 1,507,541 2.19 % 318,871 0.90 % Borrowings - 0.00 % 2,343 5.01 % (2,343) -5.01 % Total interest-bearing liabilities (excluding non interest deposits) 1,561,994 3.61 % 1,261,651 2.63 % 300,343 0.98 % Non-interest-bearing deposits 264,418 248,233 Total cost of funds 1,826,412 3.09 % 1,509,884 2.19 % 316,528 0.90 % Accrued expenses and other liabilities 43,955 36,856 Stockholders' equity 249,417 228,527 Total liabilities and stockholders' equity $ 2,119,784 $ 1,775,267 Net interest spread 2.64 % 3.31 % Net interest margin 3.38 % 3.93 % Net interest margin (FTE) 1,2 3.42 % 3.99 % 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 December 31, 2024 September 30, 2024 Change in Change in Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Earning assets Loans $ 1,821,229 6.44 % $ 1,691,688 6.62 % $ 129,541 -0.18 % Securities Taxable available-for-sale 175,898 4.75 % 111,633 4.56 % 64,265 0.19 % Tax-exempt available-for-sale 40,415 2.82 % 40,028 2.85 % 387 -0.03 % Held-to-maturity 162 5.33 % 164 5.33 % (2) 0.00 % Securities 216,475 4.39 % 151,825 4.11 % 64,650 0.28 % Other interest earning assets Federal funds sold 128,652 4.78 % 135,164 5.38 % (6,512) -0.60 % Other interest-earning assets 19,503 5.31 % 19,549 5.85 % (46) -0.53 % Other interest-earning assets 148,155 4.85 % 154,713 5.44 % (6,558) -0.59 % Total interest-earning assets 2,185,859 6.13 % 1,998,226 6.33 % 187,633 -0.21 % Total non-earning assets 172,357 151,776 Total assets $ 2,358,216 $ 2,150,002 Interest-bearing liabilities Checking $ 300,728 1.87 % $ 258,728 1.86 % $ 42,000 0.01 % Savings 174,376 2.39 % 159,521 2.57 % 14,855 -0.18 % Money market 489,485 3.45 % 443,109 3.85 % 46,376 -0.40 % Certificates of deposit 782,647 4.54 % 721,240 4.50 % 61,407 0.04 % Total interest-bearing deposits 1,747,236 3.56 % 1,582,598 3.70 % 164,638 -0.13 % Non-interest bearing deposits 300,854 269,030 31,824 Total deposits 2,048,090 3.04 % 1,851,628 3.16 % 196,462 -0.12 % Borrowings - N/A - N/A - N/A Total interest-bearing liabilities (excluding non interest deposits) 1,747,236 3.56 % 1,582,598 3.70 % 164,638 -0.13 % Non-interest-bearing deposits 300,854 269,030 Total cost of funds 2,048,090 3.04 % 1,851,628 3.16 % 196,462 -0.12 % Accrued expenses and other liabilities 49,069 43,729 Stockholders' equity 261,057 254,645 Total liabilities and stockholders' equity $ 2,358,216 $ 2,150,002 Net interest spread 2.56 % 2.64 % Net interest margin 3.28 % 3.41 % Net interest margin (FTE) 1,2 3.32 % 3.45 % 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) 2024 2024 2024 2024 2023 December September June March December Return on average assets 0.88 % -0.82 % 1.03 % 0.89 % 1.09 % Return on average equity 7.97 % -6.96 % 8.54 % 7.27 % 8.93 % Return on average tangible equity1 8.56 % -7.50 % 8.91 % 7.60 % 9.34 % Net interest margin 3.28 % 3.41 % 3.44 % 3.42 % 3.55 % Net interest margin (FTE)1 3.32 % 3.45 % 3.48 % 3.58 % 3.51 % Adjusted efficiency ratio1 62.62 % 63.65 % 65.90 % 67.21 % 60.85 % COMMON STOCK DATA Market value at period end $ 34.43 $ 36.98 $ 33.10 $ 30.78 $ 35.90 Market range: High $ 38.90 $ 39.12 $ 33.10 $ 36.25 $ 37.60 Low $ 33.26 $ 32.40 $ 29.15 $ 29.72 $ 28.21 Book value per common share at period end $ 38.07 $ 38.18 $ 38.54 $ 38.26 $ 38.04 Tangible book value per common share1 $ 35.45 $ 35.52 $ 36.98 $ 36.65 $ 36.41 Shares of common stock outstanding (in thousands) 6,883 6,849 6,353 6,320 6,314 CAPITAL RATIOS Total capital (to risk-weighted assets) 13.52 % 13.17 % 14.66 % 14.31 % 14.68 % Tier 1 capital (to risk-weighted assets) 12.34 % 12.02 % 13.62 % 13.26 % 13.61 % Tier 1 capital (to average assets) 10.58 % 11.44 % 12.21 % 11.99 % 12.29 % Equity to assets 11.20 % 11.11 % 12.34 % 12.16 % 12.53 % Tangible equity to tangible assets1 10.51 % 10.41 % 11.90 % 11.71 % 12.06 % CREDIT QUALITY DATA (Dollars in thousands) Net charge-offs (recoveries) $ 86 $ 108 $ (15) $ 176 $ (10) Annualized net charge-offs (recoveries) to average loans 0.019 % 0.026 % -0.004 % 0.045 % -0.003 % Nonperforming loans $ 26,841 $ 2,330 $ 3,198 $ 2,115 $ 6,708 Other real estate owned 295 - - - - Total nonperforming assets $ 27,136 $ 2,330 $ 3,198 $ 2,115 $ 6,708 Allowance for credit losses as a percent of: Period-end loans, net of deferred fees and costs 1.30 % 1.27 % 1.17 % 1.18 % 1.19 % Nonperforming loans 88.14 % 995.85 % 577.36 % 880.28 % 275.67 % Nonperforming assets 87.18 % 995.85 % 577.36 % 880.28 % 275.67 % Nonaccrual loans as a percent of total loans, net of deferred fees and costs 1.48 % 0.13 % 0.20 % 0.13 % 0.43 % 1This is a non-GAAP financial measure. For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below. Princeton Bancorp, IncSupplemental 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," "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 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 2024 2024 2024 2024 2023 December September June March December Net (loss) income (annualized)1 $ 20,794 $ (17,727) $ 20,617 $ 17,475 $ 20,956 Average equity2 261,057 254,645 241,550 240,230 234,628 Less: intangible assets (18,013) (18,241) (10,044) (10,154) (10,275) Average Tangible Equity $ 243,044 $ 236,404 $ 231,506 $ 230,076 $ 224,353 Return on average tangible equity 8.56 % -7.50 % 8.91 % 7.60 % 9.34 % Net interest income $ 18,007 $ 17,109 $ 15,968 $ 15,448 $ 16,010 Other income 2,027 2,056 2,087 1,985 1,779 Total revenue 20,034 19,165 18,055 17,433 17,789 Non-interest expenses $ 12,773 $ 20,144 $ 12,009 $ 11,836 $ 10,949 Less: core deposit intangible amortization (228) (143) (111) (120) (124) Less: merger-related expenses - (7,803) - - - Total operating expenses $ 12,545 $ 12,198 $ 11,898 $ 11,716 $ 10,825 Adjusted efficiency ratio 62.62 % 63.65 % 65.90 % 67.21 % 60.85 % Total Assets $ 2,340,233 $ 2,354,730 $ 1,983,941 $ 1,988,001 $ 1,916,497 Less: intangible assets (18,013) (18,241) (10,044) (10,154) (10,275) Tangible assets $ 2,322,220 $ 2,336,489 $ 1,973,897 $ 1,977,847 $ 1,906,222 Stockholders' equity $ 262,040 $ 261,502 $ 244,841 $ 241,808 $ 240,211 Less: intangible assets (18,013) (18,241) (10,044) (10,154) (10,275) Tangible equity $ 244,027 $ 243,261 $ 234,797 $ 231,654 $ 229,936 Tangible equity to tangible assets 10.51 % 10.41 % 11.90 % 11.71 % 12.06 % Tangible equity $ 244,027 $ 243,261 $ 234,797 $ 231,654 $ 229,936 Shares outstanding (in thousands) 6,883 6,849 6,350 6,320 6,315 Tangible book value per share $ 35.45 $ 35.52 $ 36.98 $ 36.65 $ 36.41 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 2024 2024 2024 2024 2023 December September June March December Net interest income $ 18,007 $ 17,109 $ 15,968 $ 15,968 $ 15,448 FTE adjustment3 241 211 213 226 224 Net interest income FTE $ 18,248 $ 17,320 $ 16,181 $ 16,194 $ 15,672 Net interest income FTE (annualized)1 $ 72,595 $ 68,902 $ 65,078 $ 65,132 $ 62,862 Average interest earning assets 2,185,859 1,998,226 1,868,019 1,817,912 1,789,624 Net interest margin FTE 3.32 % 3.45 % 3.48 % 3.58 % 3.51 % Twelve-months ended 2024 2023 December December Net interest income $ 66,532 $ 65,016 FTE adjustment3 852 580 Net interest income FTE $ 67,384 $ 65,596 Net interest income FTE (annualized)1 $ 90,010 $ 88,024 Average interest earning assets 1,968,184 1,652,947 Net interest margin FTE 4.57 % 5.33 % 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 Rapp609.454.0718[email protected] SOURCE The Bank of Princeton WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Princeton Bancorp Announces YTD & Fourth Quarter 2024 Results

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