Princeton Bancorp Reports Significant Net Income Decline in Q2 2025

Princeton Bancorp, Inc. reported a net income of $688,000, or $0.10 per diluted share, for the second quarter of 2025, a significant decrease from the $5.1 million, or $0.80 per diluted share, recorded in the same period of 2024. The decline in profitability was primarily attributed to a $7.1 million increase in the provision for credit losses and a $1.5 million rise in non-interest expenses. However, the company did see a $2.8 million increase in net interest income, totaling $18.8 million for the quarter, alongside a $164,000 increase in non-interest income, which reached $2.3 million.

In terms of financial position, total assets decreased by $98.6 million, or 4.21%, to $2.24 billion as of June 30, 2025, compared to $2.34 billion at the end of 2024. This decline was primarily driven by a $96.3 million reduction in cash and cash equivalents and a $22.4 million decrease in investment securities, partially offset by a $20.4 million increase in net loans, which totaled $1.84 billion. The loan portfolio saw growth in residential mortgages and home equity loans, while commercial and industrial loans, as well as commercial real estate loans, experienced declines.

Princeton Bancorp's strategic developments included the acquisition of Cornerstone Financial Corporation in August 2024, which has contributed to the company's operational scale. As of June 30, 2025, the company employed 251 individuals, with 247 in full-time positions. The company also reported a decrease in total deposits of $100.3 million, or 4.93%, to $1.93 billion, driven by planned reductions in brokered deposits and other interest-bearing accounts.

The company’s allowance for credit losses stood at $21.4 million, reflecting a coverage ratio of 1.14% of total loans, down from 1.30% at the end of 2024. Non-performing assets decreased to $16.5 million, representing 0.90% of total loans, a reduction from 1.47% at the end of the previous year. The company noted that the economic environment remains uncertain, with inflationary pressures and potential recession risks impacting consumer behavior and lending activities.

Looking ahead, Princeton Bancorp anticipates continued challenges due to economic conditions, including inflation and geopolitical uncertainties. The company remains focused on managing its credit risk and maintaining liquidity, with a strong capital position that meets regulatory requirements. The management expressed confidence in the bank's ability to navigate these challenges while pursuing growth opportunities in its core markets.