Princeton Bancorp, Inc.

Previous wording

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 tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing 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; 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, 2024, and the success of the Company at managing the risks involved in the foregoing.

Current wording

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 tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing 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 acquired in 2024; 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, 2024, and the success of the Company at managing the risks involved in the foregoing.

Previous wording

Total assets were $2.32 billion at March 31, 2025, a decrease of $22.1 million, or 0.95% when compared to $2.34 billion at the end of 2024. The primary reasons for the decrease in total assets were related to decreases in cash of $49.7 million and in investment securities of $7.9 million, partially offset by an increase in net loans of $37.7 million. The decreases in cash and investment securities were caused in part by the decrease in deposits discussed below. The increase in the Company’s net loans consisted of increases of $29.2 million in residential mortgages, and $19.0 million in commercial real estate (“CRE”) loans, all partially offset by decreases of $8.0 million in construction loans and $2.9 million in commercial and industrial loans.

Current wording

Total assets were $2.24 billion at June 30, 2025, a decrease of $98.6 million, or 4.21% when compared to $2.34 billion at the end of 2024. The primary reasons for the decrease in total assets were related to decreases in cash and cash equivalents of $96.3 million and investment securities of $22.4 million, partially offset by an increase in net loans of $20.4 million.

Previous wording

Total available-for-sale investment securities decreased $7.9 million, or 3.2%, to $239.2 million at March 31, 2025 compared to December 31, 2024. This decrease was primarily related to decreases in mortgage-backed securities of U.S. government sponsored enterprises and U.S treasury securities during the three-months ended March 31, 2025.

Current wording

Total available-for-sale investment securities decreased $22.4 million, or 9.1%, to $224.8 million at June 30, 2025 compared to December 31, 2024. This decrease was related to the payoffs of mortgage-backed securities of U.S. government sponsored enterprises and U.S government agency securities during thesix-months ended June 30, 2025.

Previous wording

Loans, net of deferred loan fees and costs, increased $37.7 million, or 2.1%, to $1.86 billion at March 31, 2025 compared to December 31, 2024. The increase in the Company’s net loans consisted of increases of $29.2 million in residential mortgages, and $19.0 million in commercial real estate loans, all partially offset by decreases of $8.0 million in construction loans and $2.9 million in commercial and industrial loans.

Current wording

Loans, net of deferred loan fees and costs, increased $20.4 million, or 1.12%, to $1.84 billion at June 30, 2025 compared to December 31, 2024. The increase in the Company’s net loans consisted of increases of $40.5 million in residential mortgages, and $3.3 million in home equity and consumer loans, partially offset by decreases of $14.4 million in commercial and industrial loans, $6.8 million in commercial real estate loans and $1.8 million in construction loans.

Previous wording

The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied andnon-owner-occupied CRE loans, was $1.40 billion or 75.5% of total loans of $1.86 billion at March 31, 2025. There were 766 loans in the Company’s CRE portfolio with an average and median loan size of $1.8 million and $0.6 million, respectively. Loan to Value (“LTV”) estimates are less than 70% for $1.29 billion or 92.6% of the CRE portfolio and less than 80% for $1.39 billion or 99.6% of the CRE portfolio.

Current wording

The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and nonowner-occupied CRE loans, was $1.38 billion or 74.8% of total loans of $1.84 billion at June 30, 2025. The Company’s CRE loan portfolio included $517.1 million or 37.5% of the total in multi-family loans, $429.6 million or 31.2% of the total innon-owner-occupied loans, $404.0 million or 29.3% of the total in owner-occupied loans and $27.7 million or 2.0% of the total in land loans. The Company’snon-owner-occupied portfolio by property type included $113.6 million in retail, $94.0 million in office buildings, $82.6 million in industrial warehousing, $45.0 million inmixed-use, $21.3 million in restaurants, $10.0 million in healthcare and $63.0 million in other property types. There were 756 loans in the Company’s CRE portfolio with an average and median loan size of $1.8 million and $0.6 million, respectively. Loan to Value (“LTV”) estimates are less than 70% for $1.24 billion or 90.0% of the CRE portfolio and less than 80% for $1.36 billion or 98.6% of the CRE portfolio.

Previous wording

For the three-months ended March 31, 2025, charge-offs were $84 thousand and recoveries were $143 thousand. For the three-months ended December 31, 2024, charge-offs were $107 thousand and recoveries were $21 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.29% at March 31, 2025 and 1.30% at December 31, 2024.

Current wording

For the three-month andsix-month periods ended June 30, 2025, charge-offs were $9.9 million and $10.0 million, and recoveries were $72 thousand and $216 thousand, respectively. For the three-month andsix-month periods ended June 30, 2024, charge-offs were $84 thousand and $367 thousand, and recoveries were $99 thousand and $206 thousand, respectively. The coverage ratio of the allowance for credit losses to period end loans was 1.14% at June 30, 2025 and 1.30% at December 31, 2024.

Previous wording

At March 31, 2025, non-performing assets totaled $26.5 million, a decrease of $614 thousand when compared to the amount at December 31, 2024. Non-performing assets as a percentage of total loans, net of deferred fees and costs, was 1.43% at March 31, 2025 and 1.48% at December 31, 2024.

Current wording

At June 30, 2025, non-performing assets totaled $16.5 million, a decrease of $10.6 million when compared to the amount at December 31, 2024. Non-performing assets as a percentage of total loans, net of deferred fees and costs, was 0.90% at June 30, 2025 and 1.47% at December 31, 2024.

Previous wording

At March 31, 2025, the Company had approximately $645.1 million in uninsured deposits, consisting of $85.5 million innon-interest-bearing demand deposits, $230.6 million in interest-bearing demand deposits, $152.8 million in money market accounts, $24.7 million in savings deposits and $151.5 million in certificates of deposits.

Current wording

At June 30, 2025, the Company had approximately $599.8 million in uninsured deposits, consisting of $94.0 million innon-interest-bearing demand deposits, $183.9 million in interest-bearing demand deposits, $152.1 million in money market accounts, $24.4 million in savings deposits and $145.4 million in certificates of deposits.

Previous wording

The Company had no outstanding borrowings at March 31, 2025 or December 31, 2024.

Current wording

The Company had outstanding borrowings of $10 million at June 30, 2025 and no outstanding borrowings at December 31, 2024.

Previous wording

Total stockholders’ equity at March 31, 2025, increased $4.9 million or 1.89% when compared to December 31, 2024. The increase was primarily due to an increase in retained earnings of $3.3 million, which consisted of $5.4 million in net income, partially offset by $2.1 million of cash dividends recorded during the period, an increase inpaid-in capital of $544 thousand, and a $1.3 million decrease in our accumulated other comprehensive loss. These were partially offset by a $163 thousand purchase of treasury stock. The ratio of equity to total assets at March 31, 2025 and at December 31, 2024 was 11.5% and 11.2%, respectively.

Current wording

Total stockholders’ equity at June 30, 2025, decreased $94 thousand or 0.04% when compared to December 31, 2024. The decrease was primarily due to a $5.6 million increase in purchases of treasury stock, partially offset by an increase in retained earnings of $1.8 million (which consisted of $6.1 million in net income, partially offset by $4.3 million of cash dividends recorded during the period), an increase inpaid-in capital of $1.8 million, and a decrease in our accumulated other comprehensive loss of $1.9 million. The ratio of equity to total assets at June 30, 2025, and at December 31, 2024, was 11.7% and 11.2%, respectively.

Previous wording

Our liquidity, represented by cash and cash equivalents, is a product of our operating, investing and financing activities. Our primary sources of funds are deposits, principal repayments of securities and outstanding loans, and funds provided from operations. In addition, we invest excess funds in short-term interest-earnings assets such as overnight deposits or U.S. agency securities, which provide liquidity to meet lending requirements. While scheduled payments from the amortization of loans and

Current wording

Our liquidity, represented by cash and cash equivalents, is a product of our operating, investing and financing activities. Our primary sources of funds are deposits, principal repayments of securities and outstanding loans, and funds provided from operations. In addition, we invest excess funds in short-term interest-earnings assets such as overnight deposits or U.S. agency securities, which provide liquidity to meet lending requirements. While scheduled payments from the amortization of loans and securities and short-term investments are relatively predictable sources of funds, general interest rates, economic conditions and competition greatly influence deposit flows and repayments on loans and mortgage-backed securities.

Previous wording

As a member of the FHLB we are eligible to borrow funds in an aggregate amount of up to 50% of the Company’s total assets, subject to its collateral requirements. The Company maintained a $110.0 million letter of credit with the FHLB supporting municipal deposits as of March 31, 2025. Based on available eligible securities and qualified real estate loan collateral, the Company had the ability to borrow an additional $540.5 million as of March 31, 2025.

Current wording

As a member of the FHLB we are eligible to borrow funds in an aggregate amount of up to 50% of the Company’s total assets, subject to its collateral requirements. The Company maintained a $100.0 million letter of credit with the FHLB supporting municipal deposits as of June 30, 2025. Based on available eligible securities and qualified real estate loan collateral, the Company had the ability to borrow an additional $530.7 million as of June 30, 2025.

Previous wording

As of March 31, 2025, the Bank was eligible to use the Federal Reserve discount window for borrowings. Based on assets pledged as collateral as of the applicable date, the Bank’s borrowing availability was approximately $10.0 million at March 31, 2025. As of March 31, 2025, the Company had no outstanding advances from the discount window.

Current wording

As of June 30, 2025, the Bank was eligible to use the Federal Reserve discount window for borrowings, based on assets pledged as collateral as of the applicable date. As of June 30, 2025, the Company had no outstanding advances from the discount window.

Previous wording

Regulatory Capital Requirements. Federally insured, state-charterednon-member banks are required to maintain minimum levels of regulatory capital. Current FDIC capital standards require these institutions to satisfy a common equity Tier 1 capital requirement and a Tier 1 capital requirement, a leverage capital requirement and a risk-based capital requirement.

Current wording

Regulatory Capital Requirements. Because the Company qualifies as a “small bank holding company” under the Federal Reserve’s Small Bank Holding Company Policy Statement, it is exempt from the Federal Reserve’s risk-based capital and leverage rules. With respect to the Bank, Federally insured, state-charterednon-member banks such as the Bank are required to maintain minimum levels of regulatory capital. Current FDIC capital standards require these institutions to satisfy a common equity Tier 1 capital requirement and a Tier 1 capital requirement, a leverage capital requirement and a risk-based capital requirement.

Previous wording

The Company reported net income of $5.4 million, or $0.77 per diluted common share, for the first quarter of 2025, compared to net income of $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024. The increase in net income for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to increases of $3.2 million and $205 thousand in net interest income after provision for credit losses andnon-interest income, respectively, partially offset by increases of $2.0 million and $443 thousand innon-interest expense and income tax expense, respectively.

Current wording

The Company reported net income of $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025, compared to net income of $5.1 million, or $0.80 per diluted common share, for the second quarter of 2024. The decrease in net income for the second quarter of 2025 when compared to the second quarter of 2024 was primarily due to increases in the provision for credit losses of $7.1 million and innon-interest expense of $1.5 million, partially offset by increases of $2.8 million innet-interest income and $164 thousand innon-interest income, and a decrease of $1.1 million in income tax expense.

Previous wording

Interest income increased $5.2 million for the three months ended March 31, 2025, compared to the same period in 2024. Interest income on loans increased $4.7 million due to increases in both the average balance of loans of $300.2 million and the yield of 2 basis points. Interest on taxable available-for-sale securities increased $2.1 million due to a 127 basis point increase in yield and a $145.3 million increase in the average balance of taxable available-for-sale securities. Other interest and dividend income decreased $1.5 million due to a decrease in average balance of $97.7 million and a decrease in the yield of 97 basis points.

Current wording

Interest income increased $3.3 million for the three months ended June 30, 2025, compared to the same period in 2024. Interest income on loans increased $3.6 million due to an increase in the average balance of loans of $260.0 million, partially offset by a decrease of 16 basis points on the yield on loans. Other interest and dividend income decreased $1.5 million due to a decrease in average balances of $103.7 million and a decrease in the yield of 90 basis points. Interest on taxable available-for-sale securities increased $1.3 million due to a 24 basis point increase in yield and a $105.6 million increase in the average balance of taxable available-for-sale securities.

Previous wording

Interest expense on deposits increased $1.9 million to $14.5 million for the three-month period ended March 31, 2025 over the same prior year period, due to an increase in the average balance of interest-bearing deposits of $306.8 million, partially offset by a decrease in the rate paid on interest-bearing deposits of 15 basis points.

Current wording

Interest expense increased $500 thousand to $13.9 million for the three-month period ended June 30, 2025, due to an increase in the average balance of interest-bearing deposits of $213.9 million, partially offset by a decrease of 35 basis points in the rate paid on interest-bearing deposits over the same prior year period.

Previous wording

Totalnon-interest expense was impacted by the Cornerstone Bank acquisition in the third quarter of 2024. It was $13.8 million for the three-months ended March 31, 2025, an increase of $2.0 million or 16.5% when compared to the same prior year period. This increase was primarily related to increases in salaries and employee benefits expense of $652 thousand, data processing and communications expense of $466 thousand, federal deposit insurance expense of $260 thousand, occupancy and equipment expense of $256 thousand, professional fees of $237 thousand and core deposit intangible expense of $108 thousand.

Current wording

Totalnon-interest expense was $13.5 million for the three-months ended June 30, 2025, an increase of $1.5 million or 12.5% when compared to the same prior year period. This increase was primarily related to increases in salaries and employee benefits expense of $650 thousand, occupancy and equipment expense of $297 thousand, data processing and communications expense of $139 thousand, federal deposit insurance expense of $136 thousand, professional fees of $119 thousand, and core deposit intangible expense of $108 thousand, all primarily associated with the Cornerstone Bank acquisition in the third quarter of 2024.

Previous wording

For the quarter ended March 31, 2025, the Company recorded an income tax expense of $1.5 million, resulting in an effective tax rate of 21.9%, compared to an income tax expense of $1.1 million resulting in an effective tax rate of 19.7% for the quarter ended March 31, 2024.

Current wording

For the three months ended June 30, 2025, the Company recorded an income tax benefit of $92 thousand, resulting in an effective tax rate of (15.4)%, compared to an income tax expense of $1.0 million resulting in an effective tax rate of 16.8% for the quarter ended June 30, 2024.

Previous wording

The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average loan receivables balances includenon-accrual loans. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to atax-equivalent basis, as the impacts were not deemed to be significant.

Current wording

The following table shows for the three-month period indicated the total dollar amount of interest earned from average interest earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities and the resulting costs, expressed both in dollars and rates. Average loan receivables balances includenon-accrual loans. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to atax-equivalent basis.