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Bank holding companies

Princeton Bancorp Reports Strong Financial Performance in Q2 2024

Strategic Insights

— 2 min read

Princeton Bancorp, the parent company of The Bank of Princeton, announced its unaudited financial results for the quarter ended June 30, 2024, showing a strong performance with a 18.0% increase in net income over the first quarter of 2024. The Company's net interest margin increased to 3.44% for the second quarter, and average loan and deposit balances continued to grow while maintaining strong liquidity and credit quality.

Key Takeaways:

  • Average total loans increased by $34.7 million, or 3.45%, compared to the first quarter of 2024, with a significant increase in commercial real estate loans of $51.4 million.
  • Average total deposits increased by $50.7 million, or 3.15%, compared to the first quarter of 2024, with a notable increase in money market deposits of $49.9 million.
  • Non-performing assets remained low at $3.2 million, or 0.2% of total loans, compared to $6.7 million at year-end 2023.
  • Net income for the second quarter of 2024 was $5.1 million, or $0.80 per diluted common share, compared to $4.3 million, or $0.68 per diluted common share, for the first quarter of 2024.
  • The Company reported a reversal of provision for credit losses of $304 thousand in the second quarter of 2024, resulting in a decrease in the provision for credit losses compared to the first quarter of 2024.
  • The acquisition of Cornerstone Financial Corporation is expected to close on August 23, 2024, and will contribute to the Company's central and southern New Jersey footprint.
  • Total stockholders' equity increased by $4.6 million, or 1.93%, to $242.9 million at June 30, 2024, compared to December 31, 2023.
  • The Company's asset quality remains strong, with a coverage ratio of the allowance for credit losses to period-end loans of 1.17% at June 30, 2024.
  • Total non-interest income increased by $102 thousand, or 5.1%, in the second quarter of 2024 compared to the first quarter of 2024, while total non-interest expense increased by $173 thousand, or 1.5%, in the same period.
  • The Company recorded an income tax expense of $1.0 million, resulting in an effective tax rate of 16.8%, for the second quarter of 2024.

Statistics:

  • Average total loans: $1.007 billion (Q2 2024) vs. $972.3 million (Q1 2024)
  • Average total deposits: $1.657 billion (Q2 2024) vs. $1.606 billion (Q1 2024)
  • Non-performing assets: $3.2 million (Q2 2024) vs. $6.7 million (YE 2023)
  • Net income: $5.1 million (Q2 2024) vs. $4.3 million (Q1 2024)
  • Total stockholders' equity: $242.9 million (Q2 2024) vs. $238.3 million (YE 2023)
  • Effective tax rate: 16.8% (Q2 2024) vs. 19.7% (Q1 2024)

Sources:

  • Company press release, August 2024
  • Form 10-Q, Princeton Bancorp, Inc., June 30, 2024
  • Form 8-K, Princeton Bancorp, Inc., August 2024

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