Princeton Bancorp Announces First Quarter 2024 Results - Form 8-K

Princeton Bancorp Announces

First Quarter 2024 Results

Princeton, NJ, April 25, 2024 / PRNewswire /-Princeton Bancorp, Inc. (the "Company") (NASDAQ-BPRN), the bank holding company for The Bank of Princeton (the "Bank"), today reported its unaudited financial condition and results of operations at and for the quarter ended March 31, 2024.

President/CEO Edward Dietzler commented on the quarter results, "The Company continued its strong financial performance despite the industry's challenging interest rate environment. The Company continues to increase loan and deposit balances while maintaining robust liquidity and strong credit quality. The anticipated addition of Cornerstone Bank will add to the Company's central and southern New Jersey footprint by strengthening our existing valuable franchise spanning from New York to Philadelphia."

HIGHLIGHTS

•

Announced the acquisition of Cornerstone Financial Corporation with total assets of over $300 million

•

Net loans for the quarter increased by $22.9 million, representing a 5.9% annualized growth rate

•

Total deposits for the quarter increased $69.9 million, representing a 17.1% annualized growth rate

•

Non-performing assets decreased to $2.1 million from $6.7 million at year end 2023

The Company reported net income of $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024, compared to net income of $5.3 million, or $0.82 per diluted common share, for the fourth quarter of 2023, and net income of $6.1 million, or $0.95 per diluted common share, for the first quarter of 2023. The decrease in net income for the first quarter of 2024 when compared to the fourth quarter of 2023 was due a decrease of $562 thousand in net interest income, and an increase of $887 thousand in non-interest expense. These impacts to net income were partially offset by a decrease in provision for credit losses of $376 thousand and an increase in non-interest income of $206 thousand. The decrease in net income for the first quarter of 2024 compared to the same period in 2023 was primarily due to a decrease in net interest income of $1.2 million and an increase in non-interest expenses of $2.1 million, partially offset by a decrease in income tax expense of $835 thousand and an increase in non-interest income of $611 thousand.

Balance Sheet Review

Total assets were $1.99 billion on March 31, 2024, an increase of $71.5 million, or 3.73% when compared to $1.92 billion at the end of 2023. The primary reason for the increase in total assets was attributable to increases in available for sale securities of $26.7 million, an increase in net loans of $22.9 million, and an increase in cash and cash equivalents of approximately $21.5 million. The increase in the Company's net loans consisted of a $19.9 million increase in commercial real estate loans and a $10.8 million increase in construction loans, partially offset by decreases of $5.0 million in commercial and industrial loans, $1.5 million in residential mortgages and a decrease of $770 thousand in HELOC/consumer loans.

1

Total deposits on March 31, 2024 increased $69.9 million, or 4.27%, when compared to December 31, 2023. Certificates of deposit increased $77.1 million, money market deposits increased $24.7 million, and savings deposits increased $2.9 million. Partially offsetting these increases were decreases in interest-bearing demand deposits of $32.6 million and non-interest-bearing deposits of $2.2 million.

Total stockholders' equity on March 31, 2024 increased $1.6 million or 0.66% when compared to December 31, 2023. The increase was primarily due to the $2.4 million increase in retained earnings, consisting of $4.3 million in net income partially offset by $1.9 million of cash dividends recorded during the period. Additionally, stockholders' equity declined as a result of a stock buyback of 19,000 shares totaling $579 thousand. The ratio of equity to total assets at March 31, 2024 and at December 31, 2023 was 12.2% and 12.5%, respectively.

Asset Quality

At March 31, 2024, non-performing assets totaled $2.1 million, a decrease of $4.6 million when compared to the amount at December 31, 2023. The decrease was primarily related to a $4.5 million commercial real estate loan which was sold during the first quarter of 2024.

Review of Quarterly Financial Results

Net interest income was $15.4 million for the first quarter of 2024, compared to $16.0 million for the fourth quarter of 2023 and $16.7 million for the first quarter of 2023. The decrease from the previous quarter was the result of an increase in interest expense of $1.1 million, or 9.3%, partially offset by an increase in interest income of $512 thousand, or 1.9%. The net interest margin for the first quarter of 2024 was 3.42%, decreasing 13 basis points when compared to the fourth quarter of 2023. This decrease was primarily associated with an increase of 25 basis points in the cost of funds, associated with an increase in the outstanding balance of certificate of deposits and money markets accounts which typically pay a higher interest rate. When comparing the three-month periods ended March 31, 2024 and 2023, net interest income decreased $1.2 million, which was primarily due to an increase of 184 basis points in the cost of funds, partially offset by an increase of 54 basis points in the yield earned on interest-earning assets.

The Company recorded a provision for credit losses of $186 thousand during the first quarter of 2024, which consisted of $302 thousand increase recorded to the allowance of credit losses and a reduction to the allowance of $116 thousand in unfunded commitments, which is reported in other liabilities on the Company's statement of condition. The provision recorded on the statement of income was $376 thousand lower when compared to the quarter ended December 31, 2023, and was $79 thousand lower than the provision for the same period in 2023. For the quarter ended March 31, 2024, the Company recorded charge-offs of $283 thousand and recoveries of $107 thousand. The coverage ratio of the allowance for credit losses to period end loans was 1.18% at March 31, 2024 and 1.19% at December 31, 2023.

Total non-interest income of $1.9 million for the first quarter of 2024 increased $206 thousand or 11.6% when compared to the fourth quarter of 2023 and increased $611 thousand or 44.5% when compared to the quarter ended March 31, 2023. The increase from the fourth quarter of 2023 was primarily due to a $158 thousand increase in equity method investment income. The increase over the comparable prior year quarter was primarily due to an increase in loan fees of $373 thousand. The increase in non-interest income when comparing the first quarters of 2024 and 2023 can also be attributed to the acquisition of Noah Bank, which closed in May 2023.

2

Total non-interest expense of $11.8 million for the first quarter of 2024 increased $887 thousand, or 8.1%, when compared to the fourth quarter of 2023, due primarily to increases in salaries and employee benefits of $486 thousand, occupancy and equipment expense of $180 thousand, $99 thousand in professional fees, $83 thousand in FDIC insurance expenses and $33 thousand in other operating expenses. Total non-interest expense for the first quarter of 2024 increased $2.1 million or 21.1% from the first quarter of 2023. The increase was due primarily to increases in salaries and employee benefits and occupancy and equipment expenses of $1.1 million and $688 thousand, respectively, over the prior-year period which were associated with the Noah Bank acquisition in 2023.

For the quarter ended March 31, 2024, the Company recorded an income tax expense of $1.1 million, resulting in an effective tax rate of 19.7%, compared to an income tax expense of $1.0 million resulting in an effective tax rate of 15.9% for the quarter ended December 31, 2023, and compared to an income tax expense of $1.9 million resulting in an effective tax rate of 23.8% for the quarter ended March 31, 2023. The effective tax rate in the fourth quarter of 2023 was lower than the current quarter's rate because of the non-taxable $9.9 million bargain purchase gain from the Noah bank acquisition.

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 22 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, and Sicklerville. 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.On January 18, 2024, the Company announced that it has entered into a definitive agreement and plan of merger with Cornerstone Financial Corporation ("Cornerstone"), the parent company of Cornerstone Bank, headquartered in Mount Laurel, New Jersey, pursuant to which the Company will acquire Cornerstone in a transaction that is expected to close in the second or third quarter of 2024 (the "Transaction").

Forward-Looking Statements

The Company may from time to time make written or oral "forward-looking statements," including statements contained in the Company's filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by the Company (including this press release), which are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

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 impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the Federal Reserve.

3

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 integration of the businesses of the Company and Cornerstone following the completion of the Transaction may be more difficult, time-consuming or costly than expected; the ability to obtain required regulatory and shareholder approvals, and the ability to complete the Transaction on the expected timeframe may be more difficult, time-consuming or costly than expected; 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, 2023, and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as required by applicable law or regulation.

4

Princeton Bancorp, Inc.

Consolidated Statements of Financial Condition

(Unaudited)

(Dollars in thousands, except per share data)

											March 31, 2024 vs			March 31, 2024 vs
		March 31,			December 31,			March 31,			December 31, 2023			March 31, 2023
		2024			2023			2023			$ Change			% Change			$ Change			% Change
ASSETS
Cash and cash equivalents		$	172,067			$	150,557			$	18,024			$	21,510				14.29	%		$	154,043				854.65	%
Securities available-for-sale taxable			77,418				50,544				39,935				26,874				53.17				37,483				93.86
Securities available-for-saletax-exempt			40,680				40,808				42,284				(128	)			(0.31	)			(1,604	)			(3.79	)
Securities held-to-maturity			167				193				199				(26	)			(13.47	)			(32	)			(16.08	)
Loans receivable, net of deferred loan fees			1,571,231				1,548,335				1,388,575				22,896				1.48				182,656				13.15
Allowance for credit losses			(18,618	)			(18,492	)			(16,507	)			(126	)			0.68				(2,111	)			12.79
Goodwill			8,853				8,853				8,853				-				-				-				-
Core deposit intangible			1,301				1,422				1,690				(121	)			(8.51	)			(389	)			(23.02	)
Equity method investments			9,051				8,296				2,293				755				9.10				6,758				294.72
Other assets			125,851				125,981				99,974				(130	)			(0.10	)			25,877				25.88
TOTAL ASSETS		$	1,988,001			$	1,916,497			$	1,585,320			$	71,504				3.73	%		$	402,681				25.40	%
LIABILITIES
Non-interest checking		$	247,056			$	249,282			$	218,709			$	(2,226	)			(0.89	)%		$	28,347				12.96	%
Interest checking			215,364				247,939				244,889				(32,575	)			(13.14	)			(29,525	)			(12.06	)
Savings			149,386				146,484				173,502				2,902				1.98				(24,116	)			(13.90	)
Money market			378,652				354,005				263,874				24,647				6.96				114,778				43.50
Time deposits over $250,000			179,479				150,113				88,378				29,366				19.56				91,101				103.08
Other time deposits			535,683				487,918				302,748				47,765				9.79				232,935				76.94
Total deposits			1,705,620				1,635,741				1,292,100				69,879				4.27				413,520				32.00
Borrowings			-				-				44,500				-				-				(44,500	)			(100.00	)
Other liabilities			40,573				40,545				23,447				28				0.07				17,126				73.04
TOTAL LIABILITIES			1,746,193				1,676,286				1,360,047				69,907				4.17				386,146				28.39
STOCKHOLDERS' EQUITY
Paid-in capital			98,312				98,291				96,880				21				0.02				1,432				1.48
Treasury stock 1			(579	)			-				-				(579	)			100.00				(579	)			100.00
Retained earnings			151,860				149,414				135,425				2,446				1.64				16,435				12.14
Accumulated other comprehensive income (loss)			(7,785	)			(7,494	)			(7,032	)			(291	)			3.88				(753	)			10.71
TOTAL STOCKHOLDERS' EQUITY			241,808				240,211				225,273				1,597				0.66				16,535				7.34
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,988,001			$	1,916,497			$	1,585,320			$	71,504				3.73	%		$	402,681				25.40	%
Book value per common share		$	38.26			$	38.04			$	35.98			$	0.22				0.58	%		$	2.28				6.34	%
Tangible book value per common share 2		$	36.65			$	36.41			$	34.29			$	0.24				0.66	%		$	2.36				6.88	%

1	Treasury stock repurchases commenced March 8, 2024, associated with the stock repurchase program announced August 10, 2023.

2	Tangible book value per common share is a non-GAAP measure that represents book value per common share which excludes goodwill and core deposit intangible.

5

Princeton Bancorp, Inc.

Loan and Deposit Tables

(Unaudited)

The components of loans receivable, net at March 31, 2024 and December 31, 2023 were as follows:

		March 31, 2024			December 31, 2023
		(In thousands)
Commercial real estate		$	1,162,741			$	1,142,864
Commercial and industrial			45,930				50,961
Construction			321,009				310,187
Residential first-lien mortgages			36,565				38,040
Home equity / consumer			7,311				8,081
Total loans			1,573,556				1,550,133
Deferred fees and costs			(2,325	)			(1,798	)
Allowance for credit losses			(18,618	)			(18,492	)
Loans, net		$	1,552,613			$	1,529,843

The components of deposits at March 31, 2024 and December 31, 2023 were as follows:

		March 31, 2024			December 31, 2023
		(In thousands)
Demand, non-interest-bearing		$	247,056			$	249,282
Demand, interest-bearing			215,364				247,939
Savings			149,386				146,484
Money market			378,652				354,005
Time deposits			715,162				638,031
Total deposits		$	1,705,620			$	1,635,741

6

Princeton Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

(Amounts in thousands except per share data)

		Three Months Ended March 31,
		2024			2023			$ Change			% Change
Interest and dividend income
Loans and fees		$	24,940			$	19,894			$	5,046				25.4	%
Available-for-sale debt securities:
Taxable			564				278				286				102.9	%
Tax-exempt			286				284				2				0.7	%
Held-to-maturity debt securities			2				3				(1	)			-33.3	%
Other interest and dividend income			2,274				153				2,121				1386.3	%
Total interest and dividends			28,066				20,612				7,454				36.2	%
Interest expense
Deposits			12,618				3,865				8,753				226.5	%
Borrowing			-				86				(86	)			-100.0	%
Total interest expense			12,618				3,951				8,667				219.4	%
Net interest income			15,448				16,661				(1,213	)			-7.3	%
Provision for credit losses			186				265				(79	)			-29.8	%
Net interest income after provision for credit losses			15,262				16,396				(1,134	)			-6.9	%
Non-interest income
Income from bank-owned life insurance			381				290				91				31.4	%
Fees and service charges			432				448				(16	)			-3.6	%
Loan fees, including prepayment penalties			724				351				373				106.3	%
Other			448				285				163				57.2	%
Total non-interest income			1,985				1,374				611				44.5	%
Non-interest expense
Salaries and employee benefits			6,520				5,399				1,121				20.8	%
Occupancy and equipment			2,029				1,341				688				51.3	%
Professional fees			524				465				59				12.7	%
Data processing and communications			1,160				1,300				(140	)			-10.8	%
Federal deposit insurance			273				190				83				43.7	%
Advertising and promotion			142				110				32				29.1	%
Office expense			119				97				22				22.7	%
Core deposit intangible			120				135				(15	)			-11.1	%
Other			949				735				214				29.1	%
Total non-interest expense			11,836				9,772				2,064				21.1	%
Income before income tax expense			5,411				7,998				(2,587	)			-32.3	%
Income tax expense			1,066				1,901				(835	)			-43.9	%
Net income		$	4,345			$	6,097				(1,752	)			-28.7	%
Net income per common share - basic		$	0.69			$	0.97			$	(0.28	)			-28.9	%
Net income per common share - diluted		$	0.68			$	0.95			$	(0.27	)			-28.4	%
Weighted average shares outstanding - basic			6,328				6,257				71				1.1	%
Weighted average shares outstanding - diluted			6,418				6,386				32				0.5	%

7

Princeton Bancorp, Inc.

Consolidated Statements of Income (Current Quarter vs Prior Quarter)

(Unaudited)

(Amounts in thousands, except per share data)

		Three Months Ended
		March 31, 2024			December 31, 2023			$ Change			% Change
Interest and dividend income
Loans and fees		$	24,940			$	24,364			$	576				2.4	%
Available-for-sale debt securities:
Taxable			564				412				152				36.9	%
Tax-exempt			286				285				1				0.4	%
Held-to-maturity debt securities			2				2				0				0.0	%
Other interest and dividend income			2,274				2,491				(217	)			-8.7	%
Total interest and dividends			28,066				27,554				512				1.9	%
Interest expense
Deposits			12,618				11,544				1,074				9.3	%
Borrowings			-				-				-				N/A
Total interest expense			12,618				11,544				1,074				9.3	%
Net interest income			15,448				16,010				(562	)			-3.5	%
Provision for credit losses			186				562				(376	)			-66.9	%
Net interest income after provision for credit losses			15,262				15,448				(186	)			-1.2	%
Non-interest income
Gain on call/sale of securities available-for-sale			-				45				(45	)			-100.0	%
Income from bank-owned life insurance			381				377				4				1.1	%
Fees and service charges			432				462				(30	)			-6.5	%
Loan fees, including prepayment penalties			724				656				68				10.4	%
Other			448				239				209				87.4	%
Total non-interest income			1,985				1,779				206				11.6	%
Non-interest expense
Salaries and employee benefits			6,520				6,034				486				8.1	%
Occupancy and equipment			2,029				1,849				180				9.7	%
Professional fees			524				425				99				23.3	%
Data processing and communications			1,160				1,166				(6	)			-0.5	%
Federal deposit insurance			273				190				83				43.7	%
Advertising and promotion			142				129				13				10.1	%
Office expense			119				116				3				2.6	%
Core deposit intangible			120				124				(4	)			-3.2	%
Other			949				916				33				3.6	%
Total non-interest expense			11,836				10,949				887				8.1	%
Income before income tax expense			5,411				6,278				(867	)			-13.8	%
Income tax expense			1,066				996				70				7.0	%
Net income		$	4,345			$	5,282			$	(937	)			-17.7	%
Net income per common share - basic		$	0.69			$	0.84			$	(0.15	)			-17.9	%
Net income per common share - diluted		$	0.68			$	0.82			$	(0.14	)			-17.1	%
Weighted average shares outstanding - basic			6,328				6,300				28				0.4	%
Weighted average shares outstanding - diluted			6,418				6,414				4				0.1	%

8

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

		For the Three Months Ended March 31,
		2024			2023			Change in			Change in
		Average			Yield/			Average			Yield/			Average			Yield/
		Balance			Rate			Balance			Rate			Balance			Rate
Earning assets
Loans		$	1,551,206				6.47	%		$	1,375,849				5.86	%		$	175,357				0.60	%
Securities
Taxable available-for-sale			58,742				3.84	%			42,235				2.66	%			16,507				1.18	%
Tax-exemptavailable-for-sale			40,758				2.81	%			41,634				2.77	%			(876	)			0.03	%
Held-to-maturity			183				5.10	%			200				5.36	%			(17	)			-0.25	%
Securities			99,683				3.42	%			84,069				2.72	%			15,614				0.70	%
Other interest earning assets
Federal funds sold			148,069				5.45	%			8,454				4.56	%			139,615				0.90	%
Other interest-earning assets			18,954				5.65	%			5,001				4.77	%			13,953				0.87	%
Other interest-earning assets			167,023				5.48	%			13,455				4.64	%			153,568				0.84	%
Total interest-earning assets			1,817,912				6.21	%			1,473,373				5.67	%			344,539				0.54	%
Total non-earning assets			140,659					109,354
Total assets		$	1,958,571				$	1,582,727
Interest-bearing liabilities
Checking		$	242,030				1.98	%		$	264,507				0.84	%		$	(22,477	)			1.14	%
Savings			147,672				2.51	%			182,763				0.92	%			(35,091	)			1.58	%
Money market			364,150				3.93	%			268,814				1.75	%			95,336				2.18	%
Certificates of deposit			678,306				4.12	%			364,470				1.94	%			313,836				2.18	%
Total interest-bearing deposits			1,432,158				3.54	%			1,080,554				1.45	%			351,604				2.09	%
Non-interest bearing deposits			244,089					242,814					1,275
Total deposits			1,676,247				3.03	%			1,323,368				1.18	%			352,879				1.84	%
Borrowings			-				N/A				6,993				4.99	%			(6,993	)			N/A
Total interest-bearing liabilities (excluding non interest deposits)			1,432,158				3.54	%			1,087,547				1.47	%			344,611				2.07	%
Non-interest-bearing deposits			244,089					242,814
Total cost of funds			1,676,247				3.03	%			1,330,361				1.18	%			345,886				1.84	%
Accrued expenses and other liabilities			42,094					28,587
Stockholders' equity			240,230					223,779
Total liabilities and stockholders' equity		$	1,958,571				$	1,582,727
Net interest spread				2.67	%				4.20	%
Net interest margin				3.42	%				4.59	%
Net interest margin (FTE)1				3.47	%				4.66	%

1	Includes federal and state tax effect of tax-exempt securities and loans.

9

Princeton Bancorp, Inc.

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)

		For the Three Months Ended
		March 31, 2024			December 31, 2023			Change in			Change in
		Average			Yield/			Average			Yield/			Average			Yield/
		Balance			Rate			Balance			Rate			Balance			Rate
Earning assets
Loans		$	1,551,206				6.47	%		$	1,522,906				6.35	%		$	28,300				0.12	%
Securities
Taxable available-for-sale			58,742				3.84	%			47,566				3.46	%			11,176				0.37	%
Tax-exemptavailable-for-sale			40,758				2.81	%			38,157				2.99	%			2,601				-0.18	%
Held-to-maturity			183				5.10	%			194				5.28	%			(11	)			-0.18	%
Securities			99,683				3.42	%			85,917				3.26	%			13,766				0.16	%
Other interest earning assets
Federal funds sold			148,069				5.45	%			161,903				5.44	%			(13,834	)			0.01	%
Other interest-earning assets			18,954				5.65	%			18,898				5.71	%			56				-0.07	%
Other interest-earning assets			167,023				5.48	%			180,801				5.47	%			(13,778	)			0.01	%
Total interest-earning assets			1,817,912				6.21	%			1,789,624				6.11	%			28,288				0.10	%
Total non-earning assets			140,659					138,225
Total assets		$	1,958,571				$	1,927,849
Interest-bearing liabilities
Checking		$	242,030				1.98	%		$	250,941				1.96	%		$	(8,911	)			0.03	%
Savings			147,672				2.51	%			146,294				2.32	%			1,378				0.19	%
Money market			364,150				3.93	%			353,372				3.72	%			10,778				0.21	%
Certificates of deposit			678,306				4.12	%			639,547				3.81	%			38,759				0.31	%
Total interest-bearing deposits			1,432,158				3.54	%			1,390,154				3.29	%			42,004				0.25	%
Non-interest bearing deposits			244,089					258,663					(14,574	)
Total deposits			1,676,247				3.03	%			1,648,817				2.78	%			27,430				0.25	%
Borrowings			-				N/A				-				N/A				0				N/A
Total interest-bearing liabilities (excluding non interest deposits)			1,432,158				3.54	%			1,390,154				3.29	%			42,004				0.25	%
Non-interest-bearing deposits			244,089					258,663
Total cost of funds			1,676,247				3.03	%			1,648,817				2.78	%			27,430				0.25	%
Accrued expenses and other liabilities			42,094					44,404
Stockholders' equity			240,230					234,628
Total liabilities and stockholders' equity		$	1,958,571				$	1,927,849
Net interest spread				2.67	%				2.81	%
Net interest margin				3.42	%				3.55	%
Net interest margin (FTE)1				3.47	%				3.60	%

1	Includes federal and state tax effect of tax-exempt securities and loans.

10

Princeton Bancorp, Inc.

Quarterly Financial Highlights

(Unaudited)

		2024			2023			2023			2023			2023
		March			December			September			June			March
Return on average assets			0.89	%			1.09	%			1.60	%			1.60	%			1.56	%
Return on average equity			7.27	%			8.93	%			13.20	%			11.98	%			11.05	%
Return on average tangible equity1			7.60	%			9.34	%			13.83	%			12.57	%			11.60	%
Net interest margin			3.42	%			3.55	%			3.76	%			3.95	%			4.59	%
Net interest margin (FTE)2			3.47	%			3.60	%			3.81	%			3.99	%			4.66	%
Efficiency ratio - non-GAAP3			67.21	%			61.01	%			59.89	%			60.82	%			53.43	%
COMMON STOCK DATA
Market value at period end		$	30.78			$	35.90			$	28.99			$	27.32			$	31.72
Market range:
High		$	36.25			$	37.60			$	31.69			$	33.00			$	37.18
Low		$	29.72			$	28.21			$	27.37			$	24.09			$	31.18
Book value per common share at period end		$	38.26			$	38.04			$	36.86			$	36.45			$	35.98
Tangible book value per common share at period end4		$	36.65			$	36.41			$	35.21			$	34.78			$	34.29
Shares of common stock outstanding (in thousands)			6,320				6,314				6,299				6,279				6,262
CAPITAL RATIOS
Total capital (to risk-weighted assets)			14.31	%			14.68	%			14.96	%			14.57	%			15.43	%
Tier 1 capital (to risk-weighted assets)			13.26	%			13.61	%			13.89	%			13.50	%			14.36	%
Tier 1 capital (to average assets)			11.99	%			12.29	%			12.38	%			13.43	%			14.00	%
Period-end equity to assets			12.16	%			12.53	%			12.14	%			12.42	%			14.21	%
Period-end tangible equity to tangible assets5			11.71	%			12.06	%			11.66	%			11.92	%			13.64	%
CREDIT QUALITY DATA (Dollars in thousands)
Net charge-offs (recoveries)		$	176			$	(10	)		$	(23	)		$	1,842			$	(3	)
Annualized net charge-offs (recoveries) to average loans			0.045	%			-0.003	%			-0.006	%			0.514	%			-0.001	%
Nonperforming loans		$	2,115			$	6,708			$	6,755			$	9,753			$	6,456
Other real estate owned			-				-				-				33				-
Total nonperforming assets		$	2,115			$	6,708			$	6,755			$	9,786			$	6,456
Allowance for credit losses as a percent of:
Period-end loans, net of deferred fees and costs			1.18	%			1.19	%			1.20	%			1.20	%			1.19	%
Nonperforming loans			880.28	%			275.67	%			266.35	%			184.25	%			255.68	%
Nonperforming assets			880.28	%			275.67	%			266.35	%			183.63	%			255.68	%
Nonaccrual loans as a percent of total loans, net of deferred fees and costs			0.13	%			0.43	%			0.45	%			0.65	%			0.46	%

1	Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.

2	Includes the effect of tax-exempt securities and loans.

3	The efficiency ratio is a non-GAAP measure that represents the ratio of non-interest expense (excluding amortization of core deposit intangible and merger-) related expenses) divided by net interest income and non-interest income (excluding bargain purchase gain).

4	Tangible book value per common share is a non-GAAP measure that represents book value per common share which excludes goodwill and core deposit intangible.

5	Tangible equity to tangible assets is a non-GAAP measure that represents equity to assets which exludes goodwill and core deposit intagible.

11