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 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.

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 potential impact of any future Federal budget stalemates in Congress, 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 foreign military conflicts; 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; the timing and nature of the regulatory response to any applications filed by the Company and the Bank; developments in technology, such as artificial intelligence, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our customers' expectations for convenience and security; other acquisitions; changes in consumer spending and saving habits; those risks under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025; and…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

The Company is the holding company for The Bank of Princeton (the “Bank”), a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 28 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation (“FDIC”).

Current wording

The Company is the holding company for The Bank of Princeton (the “Bank”), a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 28 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank is a member of the Federal Deposit Insurance Corporation (“FDIC”).

Previous 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.

Current wording

Total assets were $2.25 billion at March 31, 2026, a decrease of $31.4 million, or 1.37% when compared to $2.29 billion at the end of 2025. The primary reasons for the decrease in total assets were related to decreases in cash and cash equivalents of $15.9 million and investment securities of $18.0 million, partially offset by an increase in net loans of $2.7 million.

Previous 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.

Current wording

Total available-for-sale investment securities decreased $18.0 million, or 9.9%, to $164.6 million at March 31, 2026 compared to December 31, 2025. 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 three months ended March 31, 2026.

Previous 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.

Current wording

Loans, net of deferred loan fees and costs, increased $2.7 million, or 0.15%, to $1.82 billion at March 31, 2026 compared to December 31, 2025. The increase in the Company’s net loans consisted of increases in of $10.8 million in home equity and consumer loans, $6.7 million in residential mortgages, $4.1 million in commercial and industrial loans, and $1.4 million in construction loans, and, partially offset by a decrease of $20.0 million in commercial real estate loans.

Previous 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.

Current wording

The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and non-owner-occupied CRE loans, was $1.32 billion or 72.6% of total loans of $1.82 billion at March 31, 2026. There were 721 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 $1.21 billion or 92.5% of the CRE portfolio and less than 80% for $1.31 billion or 99.6% of the CRE portfolio.

Previous 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.

Current wording

For the three months ended March 31, 2026, charge-offs were $14 thousand, and recoveries were $12 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.10% at March 31, 2026 and 1.12% at December 31, 2025.

Previous 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.

Current wording

At March 31, 2026, non-performing assets remained steady at $16.5 million, compared to $16.6 million at December 31, 2025. Non-performing assets as a percentage of total loans, net of deferred fees and costs, remained steady at 0.91% for March 31, 2026 compared to 0.91% at December 31, 2025.

Previous 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.

Current wording

Total deposits on March 31, 2026, decreased $33.5 million, or 1.70%, when compared to December 31, 2025. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $53.2 million and interest-bearing demand deposits of $25.3 million, partially offset by increases in money market deposits of $26.5 million, non-interest-bearing demand deposits of $17.2 million, and savings deposits of $1.3 million. On balance sheet liquidity remains strong at March 31, 2025.

Previous 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.

Current wording

At March 31, 2026, the Company had approximately $613.3 million in uninsured deposits, consisting of $84.3 million in non-interest-bearing demand deposits, $220.1 million in interest-bearing demand deposits, $172.5 million in money market accounts, $24.5 million in savings deposits and $111.9 million in certificates of deposits.

Previous 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.

Current wording

Total stockholders’ equity at March 31, 2026 increased $2.9 million, or 1.07%, when compared to December 31, 2025. The increase was primarily due to an increase in retained earnings of $3.7 million (which consisted of $6.2 million in net income, partially offset by $2.5 million of cash dividends recorded during the period), partially offset by an increase in accumulated other comprehensive loss of $845 thousand due to increases in market interest rates. The ratio of equity to total assets at March 31, 2026 and December 31, 2025 was 12.1% and 11.9%, 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 $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.

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 March 31, 2026. Based on available eligible securities and qualified real estate loan collateral, the Company had the ability to borrow an additional $539.0 million as of March 31, 2026.

Previous 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.

Current wording

The Company reported net income of $6.2 million, or $0.91 per diluted common share, for the first quarter of 2026, compared to a net income of $5.4 million, or $0.77 per diluted common share, for the first quarter of 2025. The increase in net income for the first quarter of 2026 when compared to the first quarter of 2025 was primarily due to an increase in non-interest income of $261 thousand, an increase in net-interest income of $101 thousand, a decrease in non-interest expense of $377 thousand, and a decrease in the provision for credit losses of $424 thousand, partially offset by an increase of $312 thousand in income tax expense.

Previous 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.

Current wording

Interest income decreased $2.2 million for the three months ended March 31, 2026, compared to the same period in 2025. Interest income on loans decreased $1.6 million due to a decrease in the average balance of loans of $51.2 million, and a decrease of 17 basis points on the yield on loans. Interest on taxable available-for-sale securities decreased $1.1 million due to a 55 basis point decrease in yield and a $71.3 million decrease in the average balance of taxable available-for-sale securities. Other interest and dividend income increased $441 thousand due to an increase in average balances of $61.8 million, partially offset by a decrease in the yield of 73 basis points.

Previous 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.

Current wording

Interest expense decreased $2.3 million to $12.2 million for the three months ended March 31, 2026, compared to the same period in 2025. Interest expense decreased primarily due to a decrease in the average balance of interest-bearing deposits of $69.5 million and a decrease of 42 basis points in the rate paid on interest-bearing deposits over the same prior year period.

Previous wording

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 wording

The Company recorded a reversal of credit losses of $156 thousand during the first quarter of 2026, which consisted of a $290 thousand decrease recorded to the allowance of credit losses on loans, offset by an increase to the provision for credit losses of $134 thousand related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. There were charge-offs of $14 thousand recorded, and recoveries were $12 thousand, for the three months ended March 31, 2026.

Previous 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.

Current wording

Total non-interest income was $2.5 million for the three months ended March 31, 2026, an increase of $261 thousand or 11.9% when compared to the same prior year period. The increase over the prior year’s first quarter was primarily due to increases in other non-interest income of $303 thousand, an increase in fees and service charges of $69 thousand, and an increase in income from bank-owned life insurance of $36 thousand, partially offset by a decrease in loan fees of $147 thousand. The increase in other non-interest income for the first quarter was related to a net gain on an equity investment in the amount of $232 thousand.

Previous 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.

Current wording

Total non-interest expense was $13.4 million for the three months ended March 31, 2026, a decrease of $377 thousand or 2.7% when compared to the same prior year period. This decrease was primarily related to a decrease in salaries and employee benefits expense of $147 thousand, and a decrease in federal deposit insurance expense of $233 thousand.

Previous 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.

Current wording

For the three months ended March 31, 2026, the Company recorded an income tax expense of $1.8 million, resulting in an effective tax rate of 22.6%, compared to an income tax expense of $1.5 million resulting in an effective tax rate of 21.9% for the three months ended March 31, 2025.

Previous wording

Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from interest rate risk which is inherent in our lending, investment and deposit gathering activities. To that end, management actively monitors and manages interest rate risk exposure. In addition to market risk, our primary risk is credit risk on our loan portfolio. We attempt to manage credit risk through our loan underwriting and oversight policies.

Current wording

Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from interest rate risk which is inherent in our lending, investment and deposit gathering activities. To that end, management actively monitors and manages interest rate risk exposure. In addition to market risk, our primary risk is credit risk on our loan portfolio and our investment security portfolio. We attempt to manage credit risk through our loan underwriting and oversight policies.

Previous wording

As is the case with the GAP Table, certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in NPV require the making of certain assumptions which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the models presented assume that the composition of our interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the NPV model provides an indication of interest rate risk exposure at a particular point in time, such model is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on net interest income and will differ from actual results.

Current wording

As is the case with the Gap Table above, certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in NPV require the making of certain assumptions which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the models presented assume that the composition of our interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the NPV model provides an indication of interest rate risk exposure at a particular point in time, such model is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on net interest income and will differ from actual results.