Princeton Bancorp Reports $18.6 Million Net Income for Fiscal Year 2025

Princeton Bancorp, Inc. reported a net income of $18.6 million for the fiscal year ending December 31, 2025, translating to earnings of $2.71 per diluted share. This marks a significant increase from the previous year's net income of $10.2 million, or $1.55 per diluted share. The rise in profitability is attributed to a reduction in merger-related expenses from the prior year, particularly those associated with the acquisition of Cornerstone Financial Corporation, which had incurred $7.8 million in costs in 2024. Net interest income also saw an increase of 14% to $75.8 million, driven by a $7.6 million rise in interest income, despite a slight decrease in interest expense.

In terms of asset management, total assets decreased by 2.35% to $2.29 billion, primarily due to a $64.6 million decline in investment securities. However, cash and cash equivalents increased by 15.6% to $135.7 million. The loan portfolio remained stable at $1.82 billion, with notable shifts in composition; residential first-lien mortgage loans surged by 140.8% to $163.8 million, while commercial real estate loans decreased by 3% to $1.34 billion. The overall allowance for credit losses decreased to $20.3 million from $23.7 million, reflecting a charge-off of $9.9 million during the year.

Strategically, Princeton Bancorp has expanded its footprint through acquisitions, including the purchase of Noah Bank in May 2023 and Cornerstone Financial Corporation in August 2024. These acquisitions have allowed the company to enhance its market presence in New Jersey and Pennsylvania. As of December 31, 2025, the company operated 35 branches across New Jersey, Pennsylvania, and New York, with a total employee count of 241. The company has also authorized 2 million shares of preferred stock, although none were issued as of the end of the reporting period.

Operationally, the company faced challenges in deposit retention, with total deposits decreasing by 2.78% to $1.98 billion. This decline was primarily due to reductions in certificates of deposit and money market accounts, although interest-bearing demand deposits increased by $33 million. The company continues to focus on maintaining competitive rates to attract and retain deposits while managing its liquidity effectively. The outlook for 2026 remains cautiously optimistic, with management emphasizing the importance of credit quality and operational efficiency in navigating the current economic landscape.