Princeton Bancorp(BPRN) - 2025 Q1 - Quarterly Report

Financial Position - Total assets decreased by $22.1 million, or 0.95%, to $2.32 billion at March 31, 2025, compared to $2.34 billion at the end of 2024[125] - Cash and cash equivalents decreased by $49.7 million, or 42.3%, to $67.7 million at March 31, 2025[126] - Total available-for-sale investment securities decreased by $7.9 million, or 3.2%, to $239.2 million at March 31, 2025[127] - Total deposits decreased by $22.0 million, or 1.08%, to $2.02 billion at March 31, 2025[132] - Non-performing assets totaled $26.5 million, a decrease of $614 thousand, with a non-performing assets ratio of 1.43% at March 31, 2025[131] - Total stockholders' equity increased by $4.9 million, or 1.89%, to $263.5 million at March 31, 2025[135] - The Company had approximately $645.1 million in uninsured deposits at March 31, 2025[133] - The Company maintained a $110.0 million letter of credit with the FHLB as of March 31, 2025[137] Income and Expenses - The Company reported net income of $5.4 million, or $0.77 per diluted common share, for Q1 2025, an increase of 25.6% from $4.3 million, or $0.68 per diluted common share, in Q1 2024[145] - Interest income increased by $5.2 million in Q1 2025 compared to Q1 2024, driven by a $4.7 million increase in loan interest income due to a $300.2 million increase in average loan balances[146] - Total non-interest income for Q1 2025 was $2.2 million, reflecting a 10.3% increase of $205 thousand compared to the same period in 2024[149] - Non-interest expense rose to $13.8 million in Q1 2025, an increase of 16.5% or $2.0 million compared to Q1 2024, primarily due to higher salaries and employee benefits[150] - The provision for credit losses was recorded at $268 thousand in Q1 2025, which is $82 thousand higher than the provision in Q1 2024[148] - The effective tax rate for Q1 2025 was 21.9%, compared to 19.7% in Q1 2024, with income tax expense increasing to $1.5 million[151] Capital Ratios - Total capital to risk-weighted assets ratio was 13.681% as of March 31, 2025, exceeding the required minimum of 10.500%[144] - Tier 1 capital to risk-weighted assets ratio was 12.497% as of March 31, 2025, above the required minimum of 8.000%[144] Interest Rate Sensitivity - The cumulative interest-rate sensitivity gap was reported at -34.66% of total assets, indicating a significant exposure to interest rate fluctuations[163] - The net portfolio value (NPV) at a static interest rate scenario was $350,172,000, with a potential decrease of 12.39% under a 300 basis points increase in interest rates[168] - Interest-bearing liabilities totaled $1,720,170,000, primarily from checking and savings accounts and money market accounts[163] - The company expects to see a repricing of $497,377,000 in interest-earning assets within the next three months[163] - The NPV as a percentage of portfolio value of assets was 15.10% under static conditions, indicating a stable financial position[168] - The cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities was 38.23% at March 31, 2025, reflecting a healthy asset-liability management[163] - The company anticipates that prepayment and early withdrawal levels may deviate significantly from assumptions in the event of interest rate changes[165] Internal Controls and Procedures - The company has not identified any changes in internal control over financial reporting that materially affect its operations as of March 31, 2025[171] - Management evaluated the effectiveness of disclosure controls and procedures, concluding they are effective as of March 31, 2025[170]