Princeton Bancorp(BPRN) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $4,456 thousand for the three months ended September 30, 2024, compared to a net income of $7,598 thousand in the same period of 2023[9]. - Earnings per common share for the three months ended September 30, 2024, was $(0.68), a decline from $1.21 in the same period of 2023[9]. - Net income for the nine months ended September 30, 2024, was $5,015,000, a decrease from $20,483,000 for the same period in 2023[13]. - Comprehensive income for the nine months ended September 30, 2024, was $6,623 thousand, down from $17,163 thousand in 2023, indicating a decrease of about 61.4%[10]. - The company reported a net cash used in investing activities of $101,205,000 in 2024, contrasting with a net cash provided of $49,617,000 in 2023[13]. Asset Growth - Total assets increased to $2,354,730 thousand as of September 30, 2024, up from $1,916,497 thousand at December 31, 2023, representing a growth of 22.7%[7]. - Total stockholders' equity as of September 30, 2024, increased to $261,502 thousand from $232,208 thousand as of September 30, 2023, reflecting an increase of approximately 12.6%[11]. - The company’s cash and cash equivalents totaled $181,058 thousand as of September 30, 2024, up from $150,557 thousand at December 31, 2023, marking a 20.3% increase[7]. Loans and Credit Losses - Loans receivable net of deferred fees and costs rose to $1,831,407 thousand, an increase of 18.3% from $1,548,335 thousand at the end of 2023[7]. - The allowance for credit losses increased to $23,200 thousand as of September 30, 2024, from $18,492 thousand at December 31, 2023, indicating a proactive approach to potential credit risks[7]. - Provision for credit losses increased to $4,669,000 in 2024 from $2,546,000 in 2023, indicating a rise of approximately 83.5%[13]. Deposits - Total deposits reached $2,046,001 thousand, up 25.2% from $1,635,741 thousand at December 31, 2023[7]. - The net increase in deposits for the nine months ended September 30, 2024, was $127,503,000, compared to $98,536,000 in 2023, reflecting an increase of approximately 29.4%[13]. Non-Interest Income and Expenses - Non-interest income decreased significantly to $2,056 thousand for the three months ended September 30, 2024, compared to $2,403 thousand in the same period of 2023[9]. - Total non-interest expense surged to $20,144 thousand for the three months ended September 30, 2024, compared to $10,159 thousand in the same period of 2023, reflecting a 98.1% increase[9]. - Non-interest expense increased to $44.0 million for the nine-month period ended September 30, 2024, from $37.7 million in the same period in 2023, primarily due to merger-related expenses and increased salaries[152]. Acquisitions - The company completed the acquisition of Cornerstone Financial Corporation on August 23, 2024, with a total goodwill recorded of $5.5 million[30]. - The acquisition of Cornerstone Financial Corporation involved 525,946 shares at a price of $38.09 per share, totaling $20,033 thousand[11]. - The total purchase price assigned to Cornerstone Financial Corporation was $20.03 million, with $5.5 million recorded as goodwill on the Consolidated Statement of Financial Condition[30][31]. Market and Economic Conditions - The unemployment rate in New Jersey was 4.6% as of September 30, 2024, reflecting a tight labor market[113]. - The Federal Reserve has increased short-term interest rates to combat inflation, which has implications for economic activity and financial transactions[105]. Interest Income and Expense - Interest income increased by $4.8 million, with loan interest rising by $4.6 million due to a $226.9 million increase in average loan balances and a 25 basis point yield increase[137]. - Interest expense on deposits rose by $19.3 million to $40.8 million for the nine-month period ended September 30, 2024, driven by a 126 basis point increase in the rate paid on interest-bearing deposits and a $284.6 million increase in average balances[149]. Credit Quality - The total past due loans amounted to $33,869 thousand as of September 30, 2024, with $2,334 thousand being more than 90 days past due[62]. - Non-performing assets decreased by $4.4 million to $2.3 million, representing 0.13% of total loans compared to 0.43% at December 31, 2023[122].