Princeton Bancorp (BPRN) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $5.1 million ($0.80 per diluted share), up 18% from Q1 2024 but down from $6.8 million ($1.07 per share) in Q2 2023, mainly due to prior year acquisition-related items.

• Total assets reached $1.98 billion at June 30, 2024, up 3.52% from year-end 2023, driven by increases in securities and net loans.

• Average total loans increased by $34.7 million and average total deposits by $50.7 million compared to Q1 2024.

• The merger with Cornerstone Financial Corporation is expected to close August 23, 2024, with all regulatory and shareholder approvals obtained.

Financial highlights

• Net interest income for Q2 2024 was $16.0 million, up $0.3 million year-over-year and $0.6 million from Q1 2024.

• Net interest margin rose to 3.44% in Q2 2024, up 2 basis points from Q1 2024.

• Non-interest income was $2.1 million, up 5.1% sequentially but down 82% year-over-year due to a $9.7 million bargain purchase gain in Q2 2023.

• Non-interest expense was $12.0 million, up 1.5% from Q1 2024 but down 32.6% year-over-year due to prior year merger expenses.

• Provision for credit losses was a reversal of $118 thousand in Q2 2024, compared to a $2.5 million provision in Q2 2023.

Outlook and guidance

• The Cornerstone Bank acquisition is expected to close in Q3 2024, expanding the New Jersey footprint and strengthening the franchise.

• Management believes current liquidity and capital resources are sufficient for ongoing operations and growth.