#United States #Q2 2025 #Princeton Bancorp #Bank of Princeton #Princeton, New Jersey

Princeton Bancorp Reports Second Quarter 2025 Results

Princeton Bancorp, Inc. (NASDAQ: BPRN), the parent company of The Bank of Princeton, has released its unaudited financial results for the quarter ending June 30, 2025. The financial summary reveals a nuanced picture of the firm’s operational performance, especially concerning credit losses and overall earnings.

Key Financial Highlights

In the second quarter of 2025, Princeton Bancorp reported a net income of $688,000, or $0.10 per diluted common share. This highlights a significant decrease from the previous quarter's net income of $5.4 million ($0.77 per diluted common share) and a drop from $5.1 million ($0.80 per diluted common share) in the same period last year. The primary driver of this decrease was an increase in provisions for credit losses, which amounted to $7.0 million. The company faced a notable charge-off totaling $9.9 million during this period, contributing to challenges in maintaining profitability.

Despite these hurdles, the bank saw improvements in net interest income, which increased by $53 thousand from the first quarter of 2025, reaching $18.8 million. This gain can be attributed to an overall enhancement in net interest margins, which rose to 3.54%, indicating more efficient management of interest-bearing assets and associated funding costs.

Performance Evaluation

President and CEO Edward Dietzler expressed disappointment in the credit losses but noted encouragement from the supported growth in net interest and non-interest income, alongside reduced operating expenses during the quarter. The total operating expenses decreased by $283 thousand from the previous quarter to $13.5 million. Reduced costs in categories such as occupancy, salaries, and data processing played a significant role in achieving operational efficiencies.

In terms of total assets, Princeton Bancorp's figures fell to $2.24 billion, a decrease of 4.21% compared to the end of 2024. A significant factor in this decline was a reduction in cash reserves and investment securities, though this was counterbalanced by an increase of $20.4 million in net loans, particularly in residential mortgages.

Shareholder Actions

The company also reported that it repurchased 173,000 shares of its common stock at an average price of $31.14 as part of its ongoing share repurchase program. This indicates the firm’s commitment to enhancing shareholder value despite the current financial challenges.

Regarding deposits, there was a decrease of $100.3 million, or 4.93%, highlighting shifts in the bank's deposit strategy. Notably, declines in certificates of deposit were intentionally driven by a structured approach aiming to optimize the cost of funds.

Looking Forward

The outlook for the second half of 2025 remains optimistic, with expectations for stronger earnings as operational strategies continue to focus on enhancing profitability while managing credit risk. The management remains committed to improving asset quality, evidenced by a reduction in non-performing assets to $16.5 million, a meaningful drop from prior figures.

In summary, while Princeton Bancorp's second quarter results reflect certain operational challenges, the bank's strategic maneuvers and strong focus on managing costs and improving income sources highlight a path toward recovery and growth. Shareholders and stakeholders will be keenly watching how the bank navigates the rest of 2025 under current economic conditions.