Executive Summary

Q3 2024 headline GAAP loss driven by Cornerstone Bank closing costs and CECL on acquired loans: Net loss of $3.6M and diluted EPS of -$0.55; core EPS (excluding $3.2M CECL on non-PCD loans and $6.7M merger costs) was $0.63, underscoring underlying earnings resilience .
Net interest income increased q/q to $17.1M (+7.1%) on higher average earning assets; NIM compressed modestly to 3.41% (-3 bps q/q) as interest-bearing deposits and cost of funds rose .
Balance sheet scaled: total assets $2.35B (+22.9% YTD), deposits $2.05B (+25.1% YTD), with asset quality steady—nonperforming assets $2.3M and ACL coverage 1.27% of loans .
Dividend maintained: $0.30 per share declared Oct 22 (paid Nov 28), reinforcing capital return despite one-time acquisition charges; management reiterated Cornerstone is immediately accretive with a 2.5‑year tangible book earn-back .
No Wall Street consensus estimates available via S&P Global for Q3 2024; we cannot assess beats/misses versus Street expectations (S&P Global data unavailable).

What Went Well and What Went Wrong

Scale and core momentum: Assets +$438.2M YTD to $2.35B; deposits +$410.3M YTD to $2.05B, with $127.5M organic deposit growth excluding Cornerstone .
Underlying profitability: Net interest income grew to $17.1M (+$1.1M q/q) with stable asset yields; core EPS excluding merger/CECL items was $0.63 .
Management conviction on strategy: “We are thrilled with the Cornerstone acquisition… immediately accretive to earnings… becoming the community bank of choice up and down the I95 corridor,” said President/CEO Edward Dietzler .

One-time headwinds: $6.7M merger-related expenses and $3.2M CECL on acquired non-PCD loans drove the GAAP loss and EPS decline q/q and y/y .
Margin pressure: NIM fell to 3.41% (-3 bps q/q, -35 bps y/y) as interest-bearing deposits increased and cost of funds rose; NII growth was offset by higher deposit costs .
Provision uplift: Provision for credit losses surged to $4.6M versus a $0.1M reversal in Q2 and -$0.2M in Q3 2023, reflecting acquisition accounting and updated portfolio assumptions .

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Total interest and dividends ($USD Thousands)	$27,000	$28,066	$29,410	$31,810
Net interest income ($USD Thousands)	$16,684	$15,448	$15,968	$17,109
Provision for credit losses ($USD Thousands)	$(182)	$186	$(118)	$4,601
Total non-interest income ($USD Thousands)	$2,403	$1,985	$2,087	$2,056
Total non-interest expense ($USD Thousands)	$10,159	$11,836	$12,009	$19,036
Net income ($USD Thousands)	$7,598	$4,345	$5,126	$(3,607)
Diluted EPS ($USD)	$1.19	$0.68	$0.80	$(0.55)
Net interest margin (%)	3.76%	3.42%	3.44%	3.41%
Adjusted efficiency ratio (%)	59.89%	67.21%	65.90%	63.65%

Segment detail and balance sheet components:

Loans breakdown (book values): | Category ($USD Thousands) | Dec 31, 2023 | Sep 30, 2024 | |---------------------------|---------------|--------------| | Commercial real estate | $1,142,864 | $1,391,245 | | Commercial & industrial | $50,961 | $93,782 | | Construction | $310,187 | $258,332 | | Residential first-lien | $38,040 | $70,389 | | Home equity/consumer | $8,081 | $19,406 | | Loans, net | $1,529,843 | $1,808,207 |
Deposits breakdown: | Category ($USD Thousands) | Dec 31, 2023 | Sep 30, 2024 | |---------------------------|---------------|--------------| | Non-interest demand | $249,282 | $302,846 | | Interest-bearing demand | $247,939 | $284,504 | | Savings | $146,484 | $178,299 | | Money market | $354,005 | $493,353 | | Time deposits | $638,031 | $786,999 | | Total deposits | $1,635,741 | $2,046,001 |

KPIs and credit quality:

KPI	Q3 2023	Q2 2024	Q3 2024
Return on average assets (ROAA)	1.60%	1.03%	-0.67%
Return on average equity (ROAE)	13.20%	8.54%	-5.64%
Nonperforming loans ($USD Thousands)	$6,755	$3,198	$2,330
ACL as % of period-end loans	1.20%	1.17%	1.27%
Net charge-offs ($USD Thousands)	$(23)	$(15)	$108

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2024	Not specified	$0.30 declared Oct 22, 2024	Maintained
Cornerstone accretion	Multi‑year	Not previously provided	“Immediately accretive to earnings”	New
TBV earn-back	Multi‑year	Not previously provided	2.5 years earn-back of tangible book dilution	New

No formal quantitative guidance provided for revenue, margins, OpEx, tax rate, or segment targets in Q3 2024 materials .

No Q3 2024 earnings call transcript was found in the document catalog; themes are drawn from company releases.

Topic	Previous Mentions (Q1 2024, Q2 2024)	Current Period (Q3 2024)	Trend
M&A and footprint expansion	Announced Cornerstone; approvals received; integration planning	Cornerstone closed Aug 23; immediately accretive; 2.5‑yr TBV earn-back	Advancing (execution)
Net interest margin	NIM 3.42% in Q1; modestly up to 3.44% in Q2	NIM 3.41%, slight compression	Slightly pressured
Deposits/liquidity	Q1/Q2 growth across MM and CDs	YTD deposits +25.1%; $127.5M organic increase	Improving scale
Asset quality	NPA down to $2.1M in Q1; $3.2M in Q2	NPA $2.3M; ACL 1.27%	Stable/solid
Operating expenses	Normalized in Q2; prior-year Noah acquisition impacted comps	Merger-related expenses $6.7M (Cornerstone) elevated OpEx	Transitory spike

“We are thrilled with the Cornerstone acquisition… immediately accretive to earnings with an expected 2.5 year earn back of tangible book value dilution… Core loans and deposits are both up while asset quality and our capital position remain strong” — President/CEO Edward Dietzler .
“Core earnings of the Bank remain consistently strong. Please refer to the reconciliation… that compares Non-GAAP net income to GAAP net income.” .

No Q3 2024 earnings call transcript available; no Q&A themes or clarifications could be reviewed from a call recording or transcript in the document set.

Wall Street consensus EPS and revenue estimates for Q3 2024 via S&P Global were unavailable at time of analysis; therefore, we cannot assess beats/misses against Street expectations (S&P Global data unavailable).

Acquisition-driven quarter: The GAAP loss reflects $6.7M merger costs and $3.2M CECL on Cornerstone loans; core EPS of $0.63 indicates underlying earnings power remained intact .
Scale benefits are material: Average earning assets grew and NII rose q/q; the expanded franchise positions BPRN for earnings accretion as funding mix normalizes post-close .
Margin watch: NIM dipped to 3.41% on higher deposit costs; monitor funding costs and the mix of interest-bearing deposits into Q4 and beyond .
Credit quality solid: NPA of $2.3M and ACL coverage of 1.27% provide cushion; net charge-offs remained modest .
Capital return steady amid integration: $0.30 dividend maintained, signaling confidence in capital trajectory while absorbing one-time acquisition accounting .
Near-term trading implications: Expect volatility tied to reported GAAP optics vs core metrics; catalysts include cost synergies, margin stabilization, and proof-points on Cornerstone accretion .
Medium-term thesis: With enlarged footprint and deposit base, BPRN’s core earnings, asset quality, and accretion from Cornerstone support a constructive outlook once one-offs roll off .

Additional detail references: