#United States #Princeton #Princeton Bancorp #Bank of Princeton #Cornerstone Bank

Overview of Princeton Bancorp's 2024 Financial Results

On January 28, 2025, Princeton Bancorp, Inc. (NASDAQ - BPRN) disclosed its financial performance during the fourth quarter and for the entire year of 2024. This bank holding company, which oversees The Bank of Princeton, showcased resilient growth despite economic challenges. The company's President and CEO, Edward Dietzler, expressed pride in the completion of their 17th year of operations, highlighting the successful acquisition of Cornerstone Bank as a significant milestone in their strategic growth plan along the I-95 corridor.

Financial Highlights

Princeton Bancorp reported a net income of $5.2 million for Q4, translating to $0.75 per diluted share, a rebound from a net loss of $4.5 million in Q3 of 2024. When reflecting on the same quarter in 2023, there was a slight decrease from $5.3 million in net income for Q4. The robust performance in Q4 was credited to reduced non-interest expenses, which saw a drop of $7.4 million, as well as a $900 thousand increase in net interest income.

The company’s total assets jumped to $2.34 billion as of December 31, 2024, marking an impressive 22.11% increase compared to $1.92 billion at the end of 2023. This growth was largely fueled by the Cornerstone acquisition, which contributed approximately $303.5 million in additional assets. Moreover, net loans surged by $270.5 million, while investments grew by $155.8 million. However, cash and cash equivalents saw a reduction of $33.2 million, mainly due to deployment into investment securities.

Significant Observations

Total deposits also reflected a positive trend, increasing by 24.26% to $2.03 billion compared to the previous year. The rise can be attributed to the $282.8 million in deposits acquired from Cornerstone and an additional $114.1 million from existing operations. Key increases in deposit categories included $136.5 million in money market deposits and $131.6 million in certificates of deposit, underscoring strong customer confidence and growth in consumer banking.

Challenges and Outlook

Despite these strong results, the company reported a significant increase in non-performing assets, which reached $27.1 million by the end of 2024, primarily due to specific commercial real estate loans totaling $25.4 million. As a participant in these loans, Princeton Bancorp is currently reassessing recovery options with associated banking partners.

When evaluating overall yearly financial results, net income for 2024 was reported at $10.2 million, or $1.55 per diluted share, a noticeable decline from $25.8 million in 2023. This decrease has been linked to prior year's gains due to acquisitions and heightened provisions for credit losses.

Conclusion

Princeton Bancorp is strategically positioned for future growth with its strong asset base and an experienced management team. As they continue their conservative growth strategy, the bank plans to leverage its recent acquisition while navigating the evolving landscape amidst rising interest rates and economic volatility. Stakeholders remain optimistic about the bank's capacity to adapt and thrive in a challenging financial environment, reinforcing Princeton Bancorp's commitment to providing exceptional community banking services.

• ---

Princeton Bancorp, Inc. maintains a commitment to transparency and forward-looking operations, indicating readiness to tackle future challenges as they arise in an unpredictable economic landscape.