Princeton Bancorp(BPRN) - 2024 Q3 - Quarterly Results

Financial Performance - The Company reported a net loss of $3.6 million, or $0.55 per diluted common share, for Q3 2024, compared to net income of $5.1 million, or $0.80 per diluted common share, in Q2 2024[3]. - For the nine-month period ended September 30, 2024, net income was $5.9 million, or $0.90 per diluted common share, compared to $20.5 million, or $3.21 per diluted common share, for the same period in 2023[10]. - Net loss income was $(3,607,000), a decline of 147.5% compared to net income of $7,598,000 in the previous year[25]. - Basic net loss per common share was $(0.55), down 145.5% from $1.21 year-over-year[25]. - Net income decreased by 71.4% to $5,864,000 compared to $20,483,000 in the prior year[27]. - Net income per common share (basic) fell by 72.0% to $0.91 from $3.26[27]. - Net (loss) income for September 2024 was $(14,350) thousand, compared to a profit of $20,617 thousand in June 2024, reflecting a significant downturn[40]. Asset and Deposit Growth - Total assets increased to $2.35 billion at September 30, 2024, a rise of $438.2 million, or 22.87%, from $1.92 billion at the end of 2023, primarily due to the Cornerstone Bank acquisition[4]. - Total deposits rose by $410.3 million, or 25.08%, to $2.05 billion as of September 30, 2024, driven by $282.8 million in deposits from Cornerstone Bank and $127.5 million from existing operations[5]. - Total assets increased to $2,354,730 thousand as of September 30, 2024, up 22.87% from $1,916,497 thousand at December 31, 2023[21]. - Total deposits reached $2,046,001 thousand, a 25.08% increase compared to $1,635,741 thousand at December 31, 2023[21]. - Total assets grew to $2,150,002,000, up from $1,889,249,000[28]. - Total deposits increased by 14.6% to $1,851,628,000 from $1,614,922,000[28]. Loan and Credit Quality - Loans receivable, net of deferred loan fees, rose to $1,831,407 thousand, reflecting an 18.28% increase from $1,548,335 thousand at December 31, 2023[21]. - The allowance for credit losses increased to $23,200 thousand, up 25.46% from $18,492 thousand at December 31, 2023[21]. - Non-performing assets decreased to $2.3 million at September 30, 2024, down $4.4 million from December 31, 2023[7]. - Nonperforming loans decreased to $2,330,000 in September 2024 from $3,198,000 in June 2024[34]. - Provision for credit losses was $4,601,000, a significant increase compared to a reversal of $182,000 in the previous year[25]. - Provision for credit losses increased by 83.4% to $4,669,000, up from $2,546,000[27]. Expenses and Efficiency - Total non-interest expense for Q3 2024 was $19.0 million, an increase of $7.0 million, or 58.5%, compared to Q2 2024, largely due to $6.7 million in merger costs related to the Cornerstone acquisition[13]. - Total non-interest expense rose to $19,036,000, an increase of 87.4% from $10,159,000 year-over-year[25]. - Non-interest income totaled $2,056,000, a decrease of 14.4% from $2,403,000 year-over-year[25]. - Non-interest income decreased significantly by 60.1% to $6,128,000 from $15,342,000[27]. - Non-interest expenses for September 2024 were $19,036 thousand, significantly higher than $12,009 thousand in June 2024, reflecting a 58.4% increase[40]. - Adjusted efficiency ratio improved to 63.65% in September 2024 from 65.90% in June 2024, showing enhanced operational efficiency[40]. Capital and Equity - Total stockholders' equity increased by $22.1 million, or 9.22%, to $262.5 million at September 30, 2024, mainly due to a $21.2 million increase in paid-in capital from the acquisition[6]. - Total stockholders' equity increased to $262,351 thousand, reflecting a 9.22% rise from $240,211 thousand at December 31, 2023[21]. - Stockholders' equity grew to $245,508 thousand, an increase from $226,471 thousand, showing a rise of 8.3%[30]. - Book value per common share was $38.15, a slight increase of 0.29% from $38.04 at December 31, 2023[21]. - Book value per common share at period end was $38.15 in September 2024, down from $38.54 in June 2024[34]. - The tangible book value per share decreased to $35.50 in September 2024 from $36.98 in June 2024, a decline of 4.0%[40]. Interest Income and Margin - Net interest income for Q3 2024 was $17.1 million, an increase of $1.1 million from Q2 2024, with a net interest margin of 3.41%[8]. - Total interest and dividend income increased to $31,810,000, up 17.8% from $27,000,000 year-over-year[25]. - Total interest and dividends increased by 26.4% to $89,286,000 compared to $70,626,000 in the previous year[27]. - The net interest margin decreased to 3.42% from 4.07% in the previous period, indicating a decline in profitability[30]. - The net interest margin (FTE) for September 2024 was 3.45%, slightly down from 3.48% in June 2024[41]. - Net interest income after provision for credit losses decreased to $12,508,000, down 25.8% from $16,866,000 year-over-year[25].