Princeton Bancorp(US:BPRN)2025-08-08 16:11Financial Performance - The Company reported a net income of $688 thousand, or $0.10 per diluted common share, for Q2 2025, a decrease from $5.1 million, or $0.80 per diluted common share, in Q2 2024[141]. - The Company reported a net income of $6.1 million, or $0.88 per diluted common share, for the six-month period ended June 30, 2025, a decrease from $9.5 million, or $1.48 per diluted common share, for the same period in 2024[153]. - Total non-interest income for Q2 2025 was $2.3 million, reflecting a 7.9% increase compared to the same period in 2024[145]. - Non-interest income rose by $369 thousand, or 9.1%, for the six-month period ended June 30, 2025, compared to the same period in 2024[157]. - The effective tax rate for Q2 2025 was (15.4)%, compared to an effective tax rate of 16.8% in Q2 2024[148]. - The effective tax rate for the six-month period ended June 30, 2025, was 18.9%, compared to 18.2% for the same period in 2024[159]. Asset and Liability Management - Total assets decreased by $98.6 million, or 4.21%, to $2.24 billion at June 30, 2025, compared to $2.34 billion at the end of 2024[120]. - Total deposits decreased by $100.3 million, or 4.93%, to $1.93 billion at June 30, 2025[127]. - The Company had approximately $599.8 million in uninsured deposits as of June 30, 2025[128]. - The Company maintained a $100.0 million letter of credit with the FHLB supporting municipal deposits as of June 30, 2025[132]. - Total stockholders' equity decreased by $94 thousand, or 0.04%, to $236.5 million at June 30, 2025[130]. - The ratio of equity to total assets improved to 11.7% at June 30, 2025, from 11.2% at December 31, 2024[130]. Loan and Credit Management - Net loans increased by $20.4 million, or 1.12%, to $1.84 billion at June 30, 2025, driven by a $40.5 million increase in residential mortgages[123]. - The provision for credit losses was recorded at $7.0 million in Q2 2025, primarily due to a loan charge-off of $9.9 million[144]. - The provision for credit losses was $7.2 million for the six-month period ended June 30, 2025, compared to only $68 thousand for the same period in 2024, largely due to a charge-off of $9.9 million[156]. - Non-performing assets totaled $16.5 million, a decrease of $10.6 million, with non-performing assets as a percentage of total loans at 0.90%[126]. Interest Income and Expense - Interest income increased by $3.3 million in Q2 2025, driven by a $3.6 million increase in loan interest income due to a $260 million increase in the average balance of loans[142]. - Interest income increased by $8.6 million for the six months ended June 30, 2025, primarily due to an increase in the average balance of loans by $280.1 million[154]. - The average balance of interest-bearing deposits increased by $213.9 million, contributing to a total interest expense of $13.9 million in Q2 2025[143]. - Interest expense on deposits rose by $2.4 million to $28.5 million for the six-month period ended June 30, 2025, due to an increase in the average balance of interest-bearing deposits[155]. Capital Adequacy - Total capital to risk-weighted assets ratio was 13.048% as of June 30, 2025, exceeding the well-capitalized requirement of 10.000%[140]. - Tier 1 capital to risk-weighted assets ratio was 12.004% as of June 30, 2025, above the minimum requirement of 8.000%[140]. Market Risk Management - The Company actively manages market risk, particularly interest rate risk, through its Asset/Liability Committee, which regularly reviews policies and risk positions[164]. - The cumulative interest-rate sensitivity gap as a percentage of total assets at June 30, 2025, was -38.06%[169]. - The net portfolio value (NPV) under a 300 basis points rate shock decreased by $39,629,000, representing an 11.81% decline[174]. - The NPV ratio under static conditions was 14.93%[174]. - The company reported a decrease in NPV of $12,761,000, or 3.80%, under a 100 basis points rate shock[174]. Internal Controls and Reporting - There were no changes in the company's internal control over financial reporting that materially affected its effectiveness during the quarter ended June 30, 2025[178]. - The company’s disclosure controls and procedures were deemed effective as of June 30, 2025[177]. Investment Securities - Total available-for-sale investment securities decreased by $22.4 million, or 9.1%, to $224.8 million at June 30, 2025[122]. - The total amount of investment securities was $224,920,000, with a loss of $(10,767,000)[169].