Princeton Bancorp Posts $0.15 Per-Share Profit After Large Credit Provisions
Key Facts
Princeton Bancorp reported net income of $1.0 million, or $0.15 per diluted common share, in the third quarter ended September 30, 2026, compared with $7.1 million and $1.04 per share in the previous quarter, and $6.5 million and $0.95 per share in the same period of 2025. The company attributed the quarterly decline mainly to an $8.0 million increase in the provision for credit losses, largely related to charge-offs of two commercial real estate loans. Chief Executive Edward Dietzler said the bank also recorded an impairment of an asset as part of a plan to consolidate retail branches. He added that these actions reduced reported profit, while the bank’s core operations, excluding nonrecurring items, generated “more than about $7.0 million” in net income. The company did not provide a documented comparison with analysts’ expectations for revenue or earnings per share in its results statement.
Third-quarter net income declined year over year despite improvement in some revenue and expense items, as the provision for credit losses rose $8.3 million from the same period of 2025. By contrast, net interest income increased $390,000, and noninterest income rose $551,000. Noninterest expense also fell $376,000, while income tax expense declined $1.5 million. The company said these movements partly offset the impact of higher provisions but were not enough to prevent a year-over-year decline in net income. The divergence highlights the effect of credit costs on reported results in a quarter that saw growth in both interest and noninterest income.
Credit costs also affected the comparison between the two quarters: the $8.0 million increase in provisions followed the bank’s release of $353,000 in credit loss provisions in the second quarter of 2026. The company said the third-quarter increase was mainly related to charge-offs of two commercial real estate loans previously identified as troubled. Nonperforming assets totaled $8.2 million on September 30, down $8.3 million from December 31, 2025. The company attributed the decline mainly to charge-offs on the two loans during the quarter. Nonperforming assets fell even as the bank recorded large credit provisions, with the loan charge-offs reflected in both the level of troubled assets and quarterly expense.
On the activity side, net loans increased $80.0 million during the quarter, equivalent to an annualized growth rate of 18.1% based on the change between two quarters. Deposits grew $68.0 million, or at an annualized rate of 14.0% on the same basis. Total assets also expanded by $57.3 million from the previous quarter, at an annualized rate of 10.1%. The figures show the bank’s balance sheet continued to grow during a period when credit losses pressured quarterly earnings. The company increased its quarterly cash dividend by $0.05 per share, or 14.2%, in the third quarter.
For the first nine months of 2026, Princeton Bancorp reported net income of $14.3 million, or $2.10 per diluted share, compared with $12.5 million and $1.82 per share in the corresponding period of 2025. In the third quarter, income tax expense was $268,000, at an effective tax rate of 20.8%. Tax expense was $2.1 million at a rate of 22.9% in the second quarter, and $1.8 million at a rate of 21.9% in the third quarter of last year. The company said lower quarterly taxes partly helped limit the decline in net income compared with the previous quarter. The company’s shares, listed under the ticker BPRN, closed at $44.83 on October 27, 2026.