Key Highlights

  • Net income fell to USD 1.0 million, or USD 0.15 per diluted share, from USD 6.5 million a year earlier.
  • Provision for credit losses was USD 7.6 million, tied mainly to the charge-off of two commercial real estate loans.
  • Net loans grew USD 80.0 million and deposits rose USD 68.0 million from the second quarter, annualized 18.1% and 14.0%.
  • Net interest margin was 3.75% and the quarterly dividend was raised by USD 0.05, or 14.2%.

Princeton Bancorp, Inc. (NASDAQ:BPRN), the holding company for The Bank of Princeton, reported third-quarter 2026 net income of USD 1.0 million, or USD 0.15 per diluted share. That compares with a consensus estimate of USD 0.95, USD 1.04 in the second quarter of 2026 and USD 0.95 in the third quarter of 2025. Total revenue, combining net interest income and other income, was USD 22.47 million, above a consensus estimate of USD 22.35 million.

CEO Edward Dietzler said the quarter included the charge-off of two previously identified problem loans and an asset write-down tied to a future retail consolidation. He said that, excluding those non-recurring items, core bank operations produced a little over USD 7.0 million of net income. That adjusted figure is the company's own measure and not a GAAP result.

Credit Costs, Margin and Expenses

The provision for credit losses was USD 7.6 million, about USD 8.0 million higher than the reversal recorded in the second quarter, and the allowance for credit losses stood at 1.05% of loans, down from 1.12% at the end of 2025. Non-performing assets declined to USD 8.2 million from USD 16.5 million at year end, mainly because of the write-down of the two loans. Return on average assets fell to 0.18% from 1.26% in the prior quarter.

Net interest income was USD 20.0 million, up USD 390 thousand from a year earlier. Net interest margin was 3.75%, down 11 basis points from the second quarter and 2 basis points from the year-ago period. Non-interest income rose 28.9% to USD 2.5 million. Non-interest expense was USD 13.5 million, down 2.7% year over year, even with a USD 900 thousand write-down in occupancy and equipment. The adjusted efficiency ratio (non-GAAP) was 59.50%, compared with 63.68% a year earlier.

Balance Sheet, Capital and Dividend

Total assets were USD 2.31 billion, with net loans up USD 35.1 million and deposits up USD 27.5 million since December 31, 2025. Commercial real estate loans declined USD 67.7 million over the nine months, while home equity and consumer, residential mortgage, commercial and industrial and construction categories grew. Money market deposits increased USD 96.4 million, while certificates of deposit fell USD 87.5 million.

Tier 1 capital to risk-weighted assets was 13.10% and equity to assets was 11.7%. Book value per share was USD 39.69. Nine-month net income was USD 14.3 million, or USD 2.10 per diluted share, versus USD 12.5 million, or USD 1.82. The release listed geopolitical conflict, tariffs, inflation, federal budget disputes and real estate market risk among factors that could affect future results.

Figures That Frame the Next Report

Four datapoints shape the next report. Asset quality is the first, with non-performing assets at USD 8.2 million and the allowance at 1.05% of loans after the charge-offs. The second is net interest margin, which moved from 3.86% in the second quarter to 3.75%. The third is commercial real estate balances, which fell USD 67.7 million year to date while the bank grew other loan categories. The fourth is expense discipline, including the USD 900 thousand write-down for the retail consolidation, and a dividend that was raised by USD 0.05, or 14.2%, while book value stands at USD 39.69 per share.