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Overview of Princeton Bancorp's Q3 2025 Financial Results

Princeton Bancorp, Inc., the parent company of The Bank of Princeton, has announced its financial achievements for the third quarter of 2025. The results indicate significant progress compared to previous periods, underscoring the bank's robust operational strategies and responsiveness to market conditions.

Financial Highlights

In the third quarter of 2025, Princeton Bancorp posted a net income of $6.5 million, translating to an earnings per share (EPS) of $0.95. This performance represents a notable 939% increase from the $688 thousand net income reported in the second quarter of 2025. Comparatively, the previous year's third quarter revealed a net loss of $4.5 million. The turnaround is attributed to a decrease in provision for credit losses and an increase in net interest income.

Key Factors Behind Growth

The financial uplift in Q3 is primarily due to several contributing factors:

• - A 23-basis-point increase in net interest margin to 3.77%, reflecting a rise in asset yields and reduced funding costs.
• - The provision for credit losses decreased by $7.6 million, signaling improved asset quality and risk management.
• - Net-interest income grew by $809 thousand, boosted by lower interest expenses.

Despite the overall positive outlook, the bank faced a $343 thousand decline in non-interest income and an increase in non-interest expense by $408 thousand. However, these challenges were effectively mitigated by stronger operational efficiency and prudent management decision-making.

Balance Sheet Overview

As of September 30, 2025, Princeton Bancorp's total assets amounted to $2.23 billion, which represents a 4.75% decrease from the previous year. The reduction reflects adjustments in cash equivalents, investment securities, and net loans. Specifically, there were declines in construction loans and commercial real estate loans, although residential mortgages increased significantly by $67.9 million. Total deposits also fell by 5.12%, totaling $1.93 billion, influenced by decreases in various deposit categories, including certificates and money market deposits.

Equity and Asset Quality

Total stockholders' equity saw a modest increase to $266.6 million, primarily due to retained earnings growth supported by strong net income. The ratio of equity to total assets stood at 12%, indicating a solid capital base. The quality of assets improved with non-performing assets dropping to $16.7 million, showcasing effective risk management and recovery measures.

Market Response and Outlook

The market reacted positively to the financial disclosures, reflecting confidence in Princeton Bancorp's strategic direction. Edward Dietzler, the President and CEO, emphasized that the bank's resilience amid changing economic conditions underscores its commitment to stakeholder value creation and sustainable growth.

Looking ahead, Princeton Bancorp is well-positioned to navigate potential challenges while maximizing profit opportunities. The bank’s strategy focuses on enhancing its service offerings, expanding its market presence, and leveraging technology to boost operational efficiency and customer satisfaction.

In conclusion, Princeton Bancorp's Q3 results illustrate the institution's strong financial health and its ability to adapt to market dynamics. The ongoing focus on asset quality and profitability should continue to drive favorable outcomes for stakeholders in the upcoming quarters.