Princeton Bancorp(BPRN) - 2023 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended September 30, 2023, was $20,483 thousand, compared to $19,323 thousand for the same period in 2022, reflecting a year-over-year increase of 6.0%[13] - Net income for the three months ended September 30, 2023, was $6.975 million, compared to $7.598 million for the same period in 2022, reflecting a decrease of approximately 8.2%[1] - Net income applicable to common stock for the three months ended September 30, 2023, was $7,598 thousand, up from $6,975 thousand for the same period in 2022, reflecting an increase of approximately 8.9%[94] - Net income for Q3 2023 was $7.6 million, or $1.19 per diluted share, compared to $7.0 million, or $1.09 per diluted share, in Q3 2022, reflecting a $700 thousand increase in non-interest income[196] Asset Growth - Total assets increased to $1,913,123 thousand as of September 30, 2023, up from $1,601,779 thousand at December 31, 2022, representing a growth of 19.4%[8] - Total stockholders' equity increased to $232,208 thousand as of September 30, 2023, from $219,601 thousand at December 31, 2022, reflecting a growth of 5.3%[27] - Total assets of the company as of September 30, 2023, amounted to $232.208 million, reflecting an increase from $219.601 million as of January 1, 2023[1] - Total stockholders' equity increased by $12.6 million, or 5.7%, to $233.0 million at September 30, 2023, driven by a $14.5 million increase in retained earnings[191] Loan and Deposit Activity - Loans receivable, net, rose to $1,480,508 thousand as of September 30, 2023, from $1,353,907 thousand at December 31, 2022, marking an increase of 9.3%[8] - Total deposits reached $1,637,966 thousand as of September 30, 2023, compared to $1,347,730 thousand at December 31, 2022, indicating a growth of 21.5%[27] - Total loans receivable increased to $1,500,811 thousand as of September 30, 2023, up from $1,372,824 thousand as of December 31, 2022, representing a growth of approximately 9.3%[81] - Demand, non-interest-bearing checking deposits totaled $264,197 thousand, showing a decrease of 0.33% from $265,078 thousand in December 2022[138] Credit Losses and Provisions - The provision for credit losses was $2,546 thousand for the nine months ended September 30, 2023, compared to $200 thousand for the same period in 2022, showing a substantial increase[13] - The allowance for credit losses increased by $2.3 million due to the acquisition, including $537 thousand identified for purchase credit deteriorated loans[46] - The allowance for credit losses on loans was $18,509 thousand as of September 30, 2023, compared to $16,793 thousand as of December 31, 2022, indicating an increase of about 10.2%[84] - The total provision for credit losses included a charge-off of $1,868 thousand during the period[134] Acquisitions - The company completed the acquisition of The Bank of Princeton on January 10, 2023, enhancing its market presence and operational capacity[5] - The acquisition of Noah Bank was completed on May 19, 2023, for a total cash payment of $6.00 per share, resulting in merger-related expenses of $5.6 million[33][41] - The acquisition of Noah Bank resulted in a bargain purchase gain of $9.7 million, recorded in non-interest income[63] - The fair value of the acquired investment securities from Noah Bank was estimated at $6.5 million, primarily consisting of mortgage-backed securities and small business administration securities[45] Income and Expenses - Total interest and dividend income for the three months ended September 30, 2023, was $27,000,000, up from $19,091,000 in the same period of 2022, reflecting a growth of 41.5%[164] - Net interest income after provision for credit losses for the three months ended September 30, 2023, was $16,866,000, compared to $17,496,000 for the same period in 2022, showing a decrease of 3.6%[164] - Non-interest income for the three months ended September 30, 2023, totaled $2,403,000, an increase from $1,707,000 in the same period of 2022, marking a growth of 40.7%[164] - Total non-interest expense for the three months ended September 30, 2023, was $10,159,000, slightly up from $10,125,000 in the same period of 2022, indicating a marginal increase of 0.3%[164] Employee and Operational Metrics - As of September 30, 2023, Princeton Bancorp, Inc. had 212 total employees, with 208 being full-time equivalent employees[54] - The company engaged a third party to review its risk assessment on a semiannual basis, ensuring ongoing evaluation of loan performance[129] - The company has adopted the FASB issued ASU 2022-02, which did not have a material effect on the consolidated financial statements[39] Market and Regulatory Considerations - The ratio of equity to total assets decreased to 12.1% at September 30, 2023, from 13.7% at the end of 2022, primarily due to the Noah Bank acquisition[191] - The company’s allowance for credit losses is subject to periodic review by regulatory agencies, which may require adjustments[58] - The fair value measurement hierarchy indicates that the company uses Level 3 measurements for certain assets, which are based on unobservable inputs[143]