For the nine-month period ended September 30, 2024, the Company recorded net income of
$5.0 million, or $0.77 per diluted common share, compared to $20.5 million, or $3.21 per diluted common share, for the same period in 2023. This year-to-date
decrease was primarily the result of a $9.7 bargain purchase gain in 2023 which included a tax benefit of $2.0 million from the Company’s acquisition of Noah Bank in May of that year, and the purchase accounting recorded in 2024 related to
the Cornerstone acquisition, which includes an increase of $2.1 million in the provision for credit losses when comparing both periods.
The Company
recorded a provision for credit losses of $4.6 million during the third quarter of 2024, which consisted of $3.2 million related to the CECL impact for non-purchase credit deteriorated loans
associated with loans acquired in the Cornerstone acquisition, and $1.5 million recorded to the allowance of credit losses resulting from changes in the Company’s loan portfolio assumptions. The current quarters’ provision recorded on
the Company’s statements of income was $4.7 million higher when compared to the provision for credit losses for the quarter ended June 30, 2024, and was $4.8 million higher than the provision for the same period in 2023, most of
which can primarily be attributed to the acquisition of Cornerstone Bank. For the quarter ended September 30, 2024, the Company recorded charge-offs of $279 thousand and recoveries of $171 thousand. The coverage ratio of the allowance
for credit losses to period end loans was 1.27% at September 30, 2024 and 1.19% at December 31, 2023.
Total
non-interest income of $2.1 million for the third quarter of 2024 decreased $31 thousand or 1.5% when compared to the second quarter of 2024 and decreased $347 thousand or 14.4% when compared to
the quarter ended September 30, 2023.
Total non-interest expense of $20.1 million for the third quarter
of 2024 increased $8.1 million, or 67.7%, when compared to the second quarter of 2024. Total non-interest expense for the third quarter of 2024 increased $10.0 million or 98.3% when compared to the
third quarter of 2023. This increase over both the prior quarter and the third quarter of 2023 was primarily due to the $7.8 million in merger costs associated with the Cornerstone acquisition. The remaining increase compared to the second
quarter of 2024 was primarily related to occupancy and equipment expense increasing $237 thousand, salaries and benefits expense increasing $113 thousand, data processing and communications expense increasing $52 thousand, and
professional fees increasing $52 thousand all partially offset by a decrease in other expenses of $251 thousand. For the nine-month period ended September 30, 2024, non-interest expense was
$44.0 million, compared to $37.7 million for the same period in 2023. The increase was primarily due to an increase in merger-related expenses of $2.2 million during 2024 as well as increases in salaries and employee benefits of
$2.2 million over the same period in 2023 associated with merit increases as well as additional staff costs related to the Cornerstone and Noah acquisitions.
For the quarter ended September 30, 2024, the Company recorded an income tax benefit of $1.1 million , resulting in an effective tax rate of
(20.1%), compared to an income tax expense of $1.0 million resulting in an effective tax rate of 16.8% for the second quarter ended June 30, 2024, and compared to an income tax expense of $1.5 million resulting in an effective tax
rate of 16.6% for the quarter ended September 30, 2023.
About Princeton Bancorp, Inc. and The Bank of Princeton
Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, 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.
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