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 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.

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 global impact of foreign military conflicts, 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 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 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 29 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cranbury, 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

Economic conditions during the first quarter of 2026 remained mixed, characterized by moderating growth, resilient labor markets, and inflation trending downward but still modestly above the target of the Federal Reserve. Consumer spending continued to support economic activity but showed signs of softening amid elevated interest rates and reduced excess savings, while business investment remained constrained by tighter financial conditions. The Federal Reserve maintained a restrictive monetary policy stance during the quarter, contributing to higher borrowing costs, modest tightening in credit availability, and continued pressure on interest-sensitive sectors, including commercial real estate. Looking ahead, economic conditions remain uncertain, with risks dependent on the trajectory of inflation, labor market conditions, and the timing of potential monetary policy adjustments.

Current wording

Economic conditions during the second quarter of 2026 remained mixed, characterized by moderating growth, resilient labor markets, and inflation trending downward but still modestly above the target of the Federal Reserve. Consumer spending continued to support economic activity but showed signs of softening amid elevated interest rates and reduced excess savings, while business investment remained constrained by tighter financial conditions. The Federal Reserve maintained a restrictive monetary policy stance during the quarter, contributing to higher borrowing costs, modest tightening in credit availability, and continued pressure on interest-sensitive sectors, including commercial real estate. Looking ahead, economic conditions remain uncertain, with risks dependent on the trajectory of inflation, labor market conditions, and the timing of potential monetary policy adjustments.

Previous 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.

Current wording

Total assets were $2.25 billion at June 30, 2026, a decrease of $34.1 million, or 1.49% 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 $69.5 million and in loans of $44.9 million, partially offset by an increase in investment securities of $78.9 million.

Previous 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.

Current wording

Total available-for-sale investment securities increased $78.9 million, or 43.2%, to $261.5 million at June 30, 2026 compared to December 31, 2025. This increase was related to the purchase of $109.4 million in mortgage-backed securities of U.S. government sponsored enterprises, partially offset by payoffs of mortgage-backed securities of U.S. government sponsored enterprises and U.S government agency securities during the six months ended June 30, 2026.

Previous 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.

Current wording

Loans, net of deferred loan fees and costs, decreased $44.9 million, or 2.47%, to $1.77 billion at June 30, 2026 compared to December 31, 2025. The decrease in the Company’s net loans consisted of decreases of $69.7 million in commercial real estate loans and $15.3 million in construction loans, partially offset by increases of $25.4 million in home equity and consumer loans and $15.1 million in residential mortgages.

Previous 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.

Current wording

The Company’s CRE loan portfolio, which includes multi-family, land, owner-occupied and non-owner-occupied CRE loans, was $1.27 billion or 71.8% of total loans of $1.77 billion at June 30, 2026. There were 705 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 $1.16 billion or 92.1% of the CRE portfolio and less than 80% for $1.26 billion or 99.6% of the CRE portfolio.

Previous 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.

Current wording

For the three and six months ended June 30, 2026, charge-offs were $4 thousand and $18 thousand and recoveries were $248 thousand and $261 thousand, respectively. The coverage ratio of the allowance for credit losses to period end loans was 1.13% at June 30, 2026 and 1.12% at December 31, 2025.

Previous 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.

Current wording

At June 30, 2026, non-performing assets remained steady at $16.3 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 0.92% at June 30, 2026 compared to 0.91% at December 31, 2025.

Previous 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.

Current wording

Total deposits on June 30, 2026, decreased $40.5 million, or 2.05%, when compared to December 31, 2025. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $97.0 million, interest-bearing checking deposits of $20.9 million, and savings deposits of $3.0 million, partially offset by increases in money market deposits of $57.1 million, and non-interest checking deposits of $23.2 million. On balance sheet liquidity remains strong at June 30, 2026.

Previous 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.

Current wording

At June 30, 2026, the Company had approximately $666.0 million in uninsured deposits, consisting of $80.3 million in non-interest-bearing demand deposits, $230.1 million in interest-bearing demand deposits, $227.7 million in money market accounts, $25.8 million in savings deposits and $102.1 million in certificates of deposits.

Previous 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.

Current wording

Total stockholders’ equity at June 30, 2026 increased $9.2 million, or 3.40%, when compared to December 31, 2025. The increase was primarily due to an increase in retained earnings of $8.7 million (which consisted of $13.3 million in net income, partially offset by $4.6 million of cash dividends recorded during the period), and an increase in paid-in capital of $989 thousand. The ratio of equity to total assets at June 30, 2026 and December 31, 2025 was 12.4% 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 $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.

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, 2026. Based on available eligible securities and qualified real estate loan collateral, the Company had the ability to borrow an additional $523.5 million as of June 30, 2026.

Previous 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.

Current wording

Interest expense decreased $2.3 million to $11.6 million for the three months ended June 30, 2026, compared to the same period in 2025. Interest expense decreased primarily due to a decrease of $68.8 million in the average balance of interest-bearing deposits and a decrease of 43 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 $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.

Current wording

The Company recorded a reversal of credit losses of $353 thousand during the three months ended June 30, 2026, which consisted of a $314 thousand decrease recorded to the allowance of credit losses on loans, and a decrease to the provision for credit losses of $39 thousand related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. This reversal represented a decrease in the provision for credit losses of $7.3 million from the three-months ended June 30, 2025. There were charge-offs of $4 thousand recorded, and recoveries were $248 thousand, for the three months ended June 30, 2026.

Previous 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.

Current wording

For the three months ended June 30, 2026, the Company recorded an income tax expense of $2.1 million, resulting in an effective tax rate of 22.9%, compared to an income tax benefit of ($92) thousand resulting in an effective tax rate of (15.4%) for the three months ended June 30, 2025.

Previous 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.

Current wording

The Company reported net income of $13.3 million, or $1.95 per diluted common share, for the six months ended June 30, 2026, compared to a net income of $6.1 million, or $0.88 per diluted common share, for the six months ended June 30, 2025. The increase in net income was primarily due to a decrease of $7.7 million in the provision for credit losses, an increase in net interest income of $1.3 million, an increase in non-interest income of $446 thousand, and a decrease in non-interest expense of $240 thousand, partially offset by an increase in income tax expense of $2.5 million, when compared to the prior year period.

Previous 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.

Current wording

Interest income decreased $3.3 million for the six months ended June 30, 2026, compared to the same period in 2025. Interest income on loans decreased $2.5 million due to a decrease of $50.8 million in the average balance of loans, and a decrease of 9 basis points on the yield on loans. Interest on taxable available-for-sale securities decreased $1.6 million due to a 28 basis point decrease in yield and a $55.3 million decrease in the average balance of taxable available-for-sale securities. Other interest and dividend income increased $761 thousand due to an increase of $52.6 million in average balances, partially offset by a decrease of 76 basis points in the yield.

Previous 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.

Current wording

Total non-interest income was $4.9 million for the six months ended June 30, 2026, an increase of $446 thousand or 10.0% when compared to the same prior year period. The increase over the prior year period was primarily due to increases in other non-interest income of $215 thousand, an increase in fees and service charges of $115 thousand, an increase in income from bank-owned life insurance of $58 thousand, and an increase in loan fees of $58 thousand.

Previous 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.

Current wording

Total non-interest expense was $27.1 million for the six months ended June 30, 2026 , a decrease of $240 thousand or 0.9% when compared to the same prior year period. This decrease was primarily related to a decrease in federal deposit insurance expense of $348 thousand, a decrease in other non-interest expense of $123 thousand, and a decrease in salaries and employees benefits of $87 thousand, partially offset by an increase in professional fees of $252 thousand.