Princeton Bancorp (BPRN) Q3 2024 earnings summary

Executive summary

• Total assets grew 22.9% to $2.35 billion at September 30, 2024, driven by the Cornerstone Bank acquisition.

• Net loss for Q3 2024 was between $3.6 million and $4.5 million, compared to net income of $7.6 million in Q3 2023, mainly due to merger-related expenses and credit loss provisions.

• Net income for the nine months ended September 30, 2024, was between $5.0 million and $5.9 million, down from $20.5 million in 2023, reflecting the absence of a prior year bargain purchase gain and higher operating expenses.

• Completed Cornerstone Bank acquisition, immediately accretive to earnings with a 2.5-year earn-back of tangible book value dilution.

• Core loans and deposits increased, with asset quality and capital position remaining strong.

Financial highlights

• Net interest income for Q3 2024 was $17.1 million, up from $16.7 million in Q3 2023; net interest margin was between 3.07% and 3.41%, down from Q3 2023.

• Interest income rose $4.8 million year-over-year in Q3 2024, mainly from higher loan balances and yields.

• Interest expense on deposits increased $4.4 million year-over-year in Q3 2024 due to higher rates and balances.

• Non-interest expense for Q3 2024 was between $19.0 million and $20.1 million, up significantly year-over-year, mainly from merger costs.

• Allowance for credit losses to loans was 1.27% at September 30, 2024, up from 1.19% at year-end 2023.

Outlook and guidance

• Management expects the Cornerstone acquisition to be immediately accretive to earnings and supports long-term growth.

• The company is well capitalized, meets all regulatory capital requirements, and has adequate liquidity.

• The bank is positioned for continued growth with a strong management team and increased core loans and deposits.