0001193125-26-106151
SEC filingPrinceton Bancorp, Inc. reported net income of $18.6 million for fiscal year 2025, driven by net interest income of $75.8 million and total non-interest income of $8.5 million. The company's total assets stood at $2.29 billion, with total deposits of $1.98 billion and total stockholders' equity of $270.7 million. Key performance indicators include earnings per share of $3.00 (both basic and diluted) and a net interest margin supported by $130.6 million in total interest and dividend income against $54.7 million in total interest expense. The company maintained strong liquidity with $135.7 million in cash and cash equivalents and generated $21.5 million in net cash from operating activities. Total non-interest expense was $53.9 million, primarily consisting of salaries and employee benefits ($27.8 million) and occupancy and equipment ($8.7 million).
Princeton Bancorp, Inc. reported net income of $18.6 million for fiscal year 2025, with earnings per common share of $3.00 (both basic and diluted). The company generated total interest and dividend income of $130.6 million, primarily from loans receivable ($117.8 million) and securities ($10.0 million combined from taxable, tax-exempt, and held-to-maturity). Total interest expense was $54.7 million, resulting in net interest income of $75.8 million. After a provision for credit losses of $6.7 million, net interest income after provision for credit losses was $69.2 million. Non-interest income totaled $8.5 million, while non-interest expense was $53.9 million, leading to income before income tax expense of $23.7 million and income tax expense of $5.1 million.
Revenue was primarily driven by interest income from the loan portfolio, which generated $117.8 million from loans receivable including fees. Securities contributed $10.0 million in interest income ($8.9 million taxable, $1.1 million tax-exempt, and $8,000 from held-to-maturity securities). Other interest and dividend income added $2.7 million. Non-interest income sources included income from bank-owned life insurance ($2.0 million), fees and service charges ($2.2 million), loan fees including prepayment penalties ($2.8 million), and other income ($1.5 million). The company reported no gain on call/sale of securities available-for-sale.
The company's net interest margin was supported by the spread between interest-earning assets and interest-bearing liabilities. Total interest and dividend income of $130.6 million compared to total interest expense of $54.7 million resulted in net interest income of $75.8 million. After accounting for the provision for credit losses ($6.7 million), the net interest income after provision was $69.2 million. Non-interest expense of $53.9 million included significant components such as salaries and employee benefits ($27.8 million), occupancy and equipment ($8.7 million), data processing and communications ($6.5 million), and professional fees ($3.3 million). The income before income tax expense margin was $23.7 million on total revenue of $139.1 million (interest income plus non-interest income).
The company generated $21.5 million in net cash from operating activities, with net income of $18.6 million adjusted for items including provision for credit losses ($6.7 million), depreciation and amortization ($1.8 million), and stock-based compensation expense ($1.3 million). Investing activities provided $68.2 million in net cash, primarily from maturities, calls and principal repayments of securities available-for-sale ($81.1 million), partially offset by purchases of available-for-sale securities ($11.6 million) and net decrease in loans ($2.1 million). Financing activities used $71.4 million in net cash, mainly due to net decrease in deposits ($56.4 million), cash dividends ($8.7 million), and purchase of treasury stock ($7.9 million). The balance sheet shows total assets of $2.29 billion, including cash and cash equivalents ($135.7 million), securities available-for-sale ($182.6 million), and net loans receivable ($1.80 billion). Total liabilities were $2.01 billion, with total deposits of $1.98 billion, and stockholders' equity of $270.7 million.
The company faces risks related to credit and interest rates, particularly concentration in commercial real estate and commercial construction loans, which represented 73.9% and 11.5% of the total loan portfolio respectively at December 31, 2025. Operational risks include cybersecurity threats, competition from other financial institutions, and reliance on third-party service providers. Regulatory risks involve extensive government supervision by the Federal Reserve, FDIC, and New Jersey Department of Banking and Insurance, with potential changes in laws and regulations that could affect operations. The company maintains a 'satisfactory' Community Reinvestment Act rating and exceeded all regulatory capital requirements at December 31, 2025. Management has implemented information security programs and risk management processes to address cybersecurity threats, though future threats could have material adverse effects on business strategy, results of operations, and financial condition.