Princeton Bancorp, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
BPRN$44.54+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001193125-25-176488
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272371
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 97 current paragraphs.
58 unchanged; 31 reworded; 8 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
The 3rd quarter kicked off with a bang with the passage of the One Big Beautiful Bill Act, signed into law on July 4. The legislation made permanent many of the 2017 TCJA tax cuts, increased and inflation-adjusted the child tax credit, raised the SALT cap to $40k, and added a number of temporary tax cuts. It also ended a number of clean energy subsidies and credits, added work and residency requirements for Medicaid and SNAP programs, and increased border security funding. The net effect of the package is projected to boost economic growth fractionally in 2026, but investment incentives and tax certainty could eventually yield a larger impact.
Current report
Cash and cash equivalents decreased $44.5 million, or 37.9%, to $72.9 million at September 30, 2025 compared to December 31, 2024.
Current report
The Company recorded a reversal of credit losses of $672 thousand during the third quarter of 2025, which consisted of a $658 thousand decrease recorded to the allowance of credit losses due to updated peer loss rate data, and a decrease to the provision for credit losses of $14 thousand related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. There were no charge-offs recorded, and recoveries were $86 thousand, for the three months ended September 30, 2025.
Current report
The Company recorded a $6.6 million provision for credit losses for the nine months ended September 30, 2025 and recorded $4.7 million provision for credit losses for the nine months ended September 30, 2024. The increase for the nine months ended September 30, 2025, compared with the same prior year period, is primarily due to a net charge-off of $7.5 million recorded in the second quarter of 2025, partially offset by a decrease in net loans of $25.1 million since December 31, 2024. $3.2 million of the $4.7 million provision for credit losses for the nine months ended September 30, 2024 was due to a $3.2 million provision for credit loss for the purchased non-credit deteriorated loans recorded in 2024 related to the Cornerstone Bank acquisition. For the nine months ended September 30, 2025, charge-offs were $10.0 million and recoveries were $301 thousand.
Current report
Interest-earnings assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities.
Current report
Includes interest-bearing bank balances, FHLB Stock and Federal Funds Sold
Current report
Interest-rate sensitivity gap represents the difference between total interest-earning assets and total interest-bearing liabilities.
Current report
Economic Value of Equity (EVE) divided by Economic Value of Assets (EVA)
Removed paragraphs (4)
Previous report
The second quarter of 2025 was defined by an extreme level of uncertainty regarding U.S. trade policy and large swings in the financial markets. The quarter began with the Liberation Day announcement of larger trade tariffs than expected. This triggered a violent market reaction and dominated investor psyche in the early part of the quarter. The anxiety was partially assuaged as the quarter progressed, and tariff rates were dialed back. Investors were encouraged by the early economic reports that showed no discernible damage from higher tariffs and policy uncertainty. In fact, inflation posted some of its better readings in three years, and the labor data remained generally stable. However, economists and investors remained concerned as the quarter concluded that the effects could still be working their way through the system. Moreover, tariff rates remained unsettled atquarter-end with numerous pauses in the higher rates set to expire imminently.
Previous report
Cash and cash equivalents decreased $96.3 million, or 82.0%, to $21.1 million at June 30, 2025 compared to December 31, 2024.
Previous report
The Company recorded a provision for credit losses of $7.0 million during the second quarter of 2025, primarily associated with the loan charge-off of $9.9 million previously disclosed on the Company’s Form 8-K filed with the Securities and Exchange Commission on May 28, 2025. Thecharge-off included a $2.4 million specific reserve that had previously been reserved in the allowance for loan losses and as well as changes in the composition in the allowance for loan losses consistent with typical business activity. Charge-offs were $9.9 million, and recoveries were $72 thousand, for the quarter ended June 30, 2025.
Previous report
The Company recorded a $7.2 million provision for credit losses for thesix-month period ended June 30, 2025 and recorded $68 thousand provision for credit losses for thesix-month period ended June 30, 2024. The increase for thesix-month period ended June 30, 2025, compared with the same prior year period, is primarily associated with the previously disclosed charge-off of $9.9 million, which included a $2.4 million specific reserve that had previously been reserved in the allowance for loan losses. For thesix-month periods ended June 30, 2025, charge-offs were $10.0 million and recoveries were $216 thousand.
Reworded paragraphs (31)
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 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.
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 federal budget stalemate in Congress, 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 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 $2.24 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.
Current wording
Total assets were $2.23 billion at September 30, 2025, a decrease of $111.1 million , or 4.75% 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 $44.5 million, investment securities of $37.2 million, and net loans of $25.1 million.
Previous 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.
Current wording
Total available-for-sale investment securities decreased $37.2 million, or 15.1%, to $209.9 million at September 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 the nine months ended September 30, 2025.
Previous 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.
Current wording
Loans, net of deferred loan fees and costs, decreased $25.1 million, or 1.38%, to $1.79 billion at September 30, 2025 compared to December 31, 2024. The decrease in the Company’s net loans consisted of decreases of $54.2 million in construction loans, $32.0 million in commercial real estate loans, and $11.5 million in commercial and industrial loans, partially offset by increases of $67.9 million in residential mortgages, and $4.7 million in home equity and consumer loans.
Previous 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.
Current wording
The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and non-owner-occupied CRE loans, was $1.35 billion or 75.3% of total loans of $1.79 billion at September 30, 2025. There were 748 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 $1.25 billion or 92.7% of the CRE portfolio and less than 80% for $1.34 billion or 99.6% of the CRE portfolio.
Previous 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.
Current wording
For the three and nine months ended September 30, 2025, charge-offs were $0 and $10.0 million, and recoveries were $86 thousand and $302 thousand, respectively. For the three-month and nine-month periods ended September 30, 2024, charge-offs were $278 thousand and $645 thousand, and recoveries were $172 thousand and $378 thousand, respectively. The coverage ratio of the allowance for credit losses to period end loans was 1.14% at September 30, 2025 and 1.30% at December 31, 2024.
Previous 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.
Current wording
At September 30, 2025, non-performing assets totaled $16.7 million, a decrease of $10.1 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 0.93% at September 30, 2025 and 1.47% at December 31, 2024.
Previous wording
Total deposits on June 30, 2025, decreased $100.3 million, or 4.93%, when compared to December 31, 2024. The decrease in the Company’s deposits consisted of decreases in certificates of deposit of $52.7 million, money market deposits of $27.3 million, and interest-bearing demand deposits of $17.9 million. The decrease in the certificates was strategically planned, including a reduction in brokered deposits of $26 million which was not replenished, as part of a pricing structure designed to reduce the Bank’s cost of funds. On balance sheet liquidity remains strong at June 30, 2025.
Current wording
Total deposits on September 30, 2025, decreased $104.0 million, or 5.12%, when compared to December 31, 2024. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $62.8 million, money market deposits of $25.3 million, non-interest-bearing demand deposits of $6.6 million, interest-bearing demand deposits of $6.3 million, and savings deposits of $2.9 million. On balance sheet liquidity remains strong at September 30, 2025.
Previous 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.
Current wording
At September 30, 2025, the Company had approximately $585.2 million in uninsured deposits, consisting of $91.6 million in non-interest-bearing demand deposits, $197.3 million in interest-bearing demand deposits, $156.1 million in money market accounts, $26.1 million in savings deposits and $114.1 million in certificates of deposits.
Previous wording
The Company had outstanding borrowings of $10 million at June 30, 2025 and no outstanding borrowings at December 31, 2024.
Current wording
The Company had no outstanding borrowings at September 30, 2025 and December 31, 2024.
Previous 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.
Current wording
Total stockholders’ equity at September 30, 2025, increased $4.6 million or 1.74% when compared to December 31, 2024. The increase was primarily due to an increase in retained earnings of $6.2 million (which consisted of $12.5 million in net income, partially offset by $6.3 million of cash dividends recorded during the period), an increase in paid-in capital of $2.7 million primarily due to the exercise of stock options, and a decrease in accumulated other comprehensive loss of $3.3 million, partially offset by a $7.6 million increase in treasury stock due to our stock repurchase program. The ratio of equity to total assets at September 30, 2025, and at December 31, 2024, was 12.0% and 11.2%, respectively.
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 $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.
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 $60.0 million letter of credit with the FHLB supporting municipal deposits as of September 30, 2025. Based on available eligible securities and qualified real estate loan collateral, the Company had the ability to borrow an additional $542.0 million as of September 30, 2025.
Previous 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.
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-chartered non-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
Under the risk-based capital requirements, “total” capital (a combination of core and “supplementary” capital) must equal at least 8.0% of “risk-weighted” assets. The FDIC also is authorized to impose capital requirements in excess of these standards on individual institutions on acase-by-case basis. Management believes, as of June 30, 2025, that the Bank meets all capital adequacy requirements to which it is subject and is “well capitalized” under applicable regulations.
Current wording
Under the risk-based capital requirements, “total” capital (a combination of core and “supplementary” capital) must equal at least 8.0% of “risk-weighted” assets. The FDIC also is authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis. Management believes, as of September 30, 2025, that the Bank meets all capital adequacy requirements to which it is subject and is “well capitalized” under applicable regulations.
Previous 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.
Current wording
The Company reported net income of $6.5 million, or $0.95 per diluted common share, for the third quarter of 2025, compared to a net loss of ($4.5) million, or ($0.68) per diluted common share, for the third quarter of 2024. The increase in net income for the third quarter of 2025 when compared to the third quarter of 2024 was primarily due to $7.8 million in Cornerstone Bank merger-related expenses recorded in the third quarter of 2024 and an increase of $2.5 million in net-interest income, and a decrease in the provision for credit losses of $5.3 million, partially offset by an increase in other non-interest expenses of $1.6 million, and an increase of $2.9 million in income tax expense.
Previous 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.
Current wording
Interest income increased $935 thousand for the three months ended September 30, 2025, compared to the same period in 2024. Interest income on loans increased $1.8 million due to an increase in the average balance of loans of $125.9 million, partially offset by a decrease of 9 basis points on the yield on loans. Other interest and dividend income decreased $1.8 million due to a decrease in average balances of $126.7 million and a decrease in the yield of 86 basis points. Interest on taxable available-for-sale securities increased $941 thousand due to a 39 basis point increase in yield and a $67.3 million increase in the average balance of taxable available-for-sale securities.
Previous 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.
Current wording
Interest expense decreased $1.6 million to $13.1 million for the three months ended September 30, 2025, compared to the same period in 2024. Interest expense decreased primarily due to a decrease of 53 basis points in the rate paid on interest-bearing deposits over the same prior year period, partially offset by an increase in the average balance of interest-bearing deposits of $53.3 million.
Previous wording
Totalnon-interest income was $2.3 million for the three-months ended June 30, 2025, an increase of $164 thousand or 7.9% when compared to the same prior year period. The increase over the prior year’s second quarter was primarily due to an increase in othernon-interest income of $206 thousand, and an increase in income from bank owned life insurance of $106 thousand, partially offset by a decrease in loan fees of $234 thousand.
Current wording
Total non-interest income was $1.9 million for the three months ended September 30, 2025, a decrease of $148 thousand or 7.2% when compared to the same prior year period. The decrease over the prior year’s third quarter was primarily due to a decrease in other non-interest income of $414 thousand, partially offset by an increase in loan fees of $142 thousand and an increase in income from bank owned life insurance of $83 thousand. The decrease in other non-interest income for the third quarter was related to a net loss on an equity investment in the amount of $471 thousand.
Previous 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.
Current wording
Total non-interest expense was $13.9 million for the three months ended September 30, 2025, a decrease of $6.2 million or 30.9% when compared to the same prior year period. This decrease was primarily related to Cornerstone Bank merger-related expenses of $7.8 million recorded in the third quarter of 2024, partially offset by increases in salaries and employee benefits expense of $537 thousand, professional fees of $413 thousand, data processing and communications expense of $252 thousand, and other non-interest expenses of $241 thousand.
Previous 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.
Current wording
For the three months ended September 30, 2025, the Company recorded an income tax expense of $1.8 million, resulting in an effective tax rate of 21.9%, compared to an income tax benefit of ($1.1) million resulting in an effective tax rate of (20.1) % for the three months ended September 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.
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 include non-accrual loans. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to a tax-equivalent basis.
Previous wording
Comparison of Operating Results for the Six Months Ended June 30, 2025, and 2024
Current wording
Comparison of Operating Results for the nine months ended September 30, 2025 and 2024
Previous wording
The Company reported net income of $6.1 million, or $0.88 per diluted common share, for thesix-month period ended June 30, 2025, compared to net income of $9.5 million, or $1.48 per diluted common share, for the same period in 2024. The decrease in net income for thesix-month period ended June 30, 2025, compared to the same period in 2025, was primarily due to an increase of $7.2 million in our provision for credit losses associated with thecharge-off of $9.9 million previously disclosed on the Company’s Form 8-K filed with the Securities and Exchange Commission on May 28, 2025, and a $3.5 million increase innon-interest expense, partially offset by an increase in net interest income of $6.2 million, a decrease of $687 thousand in income tax expense and an increase of $369 thousand innon-interest income.
Current wording
The Company reported net income of $12.5 million, or $1.82 per diluted common share, for the nine months ended September 30, 2025, compared to net income of $5.0 million, or $0.77 per diluted common share, for the same period in 2024. The increase in net income for the nine months ended September 30, 2025, compared to the same period in 2024, was primarily due to $7.8 million in Cornerstone Bank merger-related expenses recorded in the third quarter of 2024, and an increase of $8.7 million in net-interest income, partially offset by an increase in other non-interest expenses of $5.0 million, an increase of $2.3 million in income tax expense, and an increase in the provision for credit losses of $1.9 million..
Previous wording
Interest income increased $8.6 million for thesix-months ended June 30, 2025, compared to the same period in 2024. Interest income on loans increased $8.3 million due to an increase in the average balance of loans of $280.1 million, partially offset by a decrease in the yield of 8 basis points. Other interest and dividend income decreased $3.0 million due to a decrease in average balances of $100.7 million and a decrease in the yield of 95 basis points. Interest on taxable available-for-sale securities increased $3.3 million due to a 71 basis point increase in yield and a $125.4 million increase in the average balance of taxable available-for-sale securities.
Current wording
Interest income increased $9.5 million for the nine months ended September 30, 2025, compared to the same period in 2024. Interest income on loans increased $10.1 million due to an increase in the average balance of loans of $228.3 million partially as a result of the Cornerstone Bank acquisition, partially offset by a decrease in the yield of 7 basis points. Other interest and dividend income decreased $4.8 million due to a decrease in average balances of $109.5 million and a decrease in the yield of 93 basis points. Interest on taxable available-for-sale securities increased $4.3 million due to a 57 basis point increase in yield and a $105.9 million increase in the average balance of taxable available-for-sale securities, partially as a result of the Cornerstone Bank acquisition.
Previous wording
Interest expense on deposits increased $2.4 million to $28.5 million for thesix-month period ended June 30, 2025, due to an increase in the average balance of interest-bearing deposits of $260.3 million, partially offset by a decrease on the rate paid on interest-bearing deposits of 25 basis points over the same prior year period.
Current wording
Interest expense on deposits increased $849 thousand to $41.6 million for the nine months ended September 30, 2025, due to an increase in the average balance of interest-bearing deposits of $190.7 million, partially as a result of the Cornerstone Bank acquisition, partially offset by a decrease on the rate paid on interest-bearing deposits of 34 basis points over the same prior year period.
Previous wording
For thesix-month period ended June 30, 2025, non-interest income increased $369 thousand or 9.1%, from the samesix-month period in 2024.
Current wording
For the nine months ended September 30, 2025, non-interest income increased $221 thousand or 3.6%, from the same nine-month period in 2024.
Previous wording
For thesix-month period ended June 30, 2025, non-interest expense was $27.3 million, compared to $23.8 million for the same period in 2024. This increase was primarily due to increases in salaries and employee benefits of $1.3 million, data processing and communications of $605 thousand, occupancy and equipment expense of $553 thousand and federal deposit insurance of $396 thousand, all primarily due to the Cornerstone Bank acquisition in the third quarter of 2024.
Current wording
For the nine months ended September 30, 2025, non-interest expense was $41.2 million, compared to $44.0 million for the same period in 2024. This decrease was primarily due to Cornerstone merger-related expenses of $7.8 million recorded in 2024, partially offset by increases in salaries and employee benefits of $1.8 million, data processing and communications expense of $857 thousand, professional fees of $769 thousand, occupancy and equipment expense of $612 thousand and federal deposit insurance assessments of $450 thousand.
Previous wording
For thesix-month period ended June 30, 2025, the Bank recorded an income tax expense of $1.4 million, resulting in an effective tax rate of 18.9%, compared to an income tax expense of $2.1 million resulting in an effective tax rate of 18.2% for thesix-month period ended June 30, 2024.
Current wording
For the nine months ended September 30, 2025, the Bank recorded an income tax expense of $3.3 million, resulting in an effective tax rate of 20.5%, compared to an income tax expense of $1.0 million resulting in an effective tax rate of 16.3% for the nine months ended September 30, 2024.
Previous wording
The following table shows for thesix-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.
Current wording
The following table shows for the nine-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 include non-accrual loans. Average yields have been annualized. Tax-exempt incomes and yields have not been adjusted to a tax-equivalent basis.
Previous wording
The table on the next page sets forth the amounts of our interest-earning assets and interest-bearing liabilities outstanding at June 30, 2025, which we expect, based upon certain assumptions, to reprice or mature in each of the future time periods shown (the “GAP Table”). Except as stated below, the amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at June 30, 2025, based on contractual maturities, anticipated prepayments, and scheduled rate adjustments within a three-month period and subsequent selected time intervals. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and anticipated prepayments of adjustable-rate loans and fixed-rate loans, and as a result of contractual rate adjustments on adjustable-rate loans.
Current wording
The table below sets forth the amounts of our interest-earning assets and interest-bearing liabilities outstanding at September 30, 2025, which we expect, based upon certain assumptions, to reprice or mature in each of the future time periods shown (the “GAP Table”). Except as stated below, the amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at September 30, 2025, based on contractual maturities, anticipated prepayments, and scheduled rate adjustments within a three-month period and subsequent selected time intervals. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and anticipated prepayments of adjustable-rate loans and fixed-rate loans, and as a result of contractual rate adjustments on adjustable-rate loans.
Previous wording
Net Portfolio Value Analysis. Our interest rate sensitivity is also monitored by management through the use of a model which generates estimates of the changes in our net portfolio value (“NPV”) over a range of interest rate scenarios. NPV is the present value of expected cash flows from assets, liabilities, andoff-balance sheet contracts. The NPV ratio, under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The following table sets forth our NPV as of June 30, 2025, and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.
Current wording
Net Portfolio Value Analysis. Our interest rate sensitivity is also monitored by management through the use of a model which generates estimates of the changes in our net portfolio value (“NPV”) over a range of interest rate scenarios. NPV is the present value of expected cash flows from assets, liabilities, and off-balance sheet contracts. The NPV ratio, under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The following table sets forth our NPV as of September 30, 2025, and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.