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Princeton Bancorp, Inc. (BPRN)·Q3 2025 Earnings Summary

Executive Summary

  • EPS of $0.95 and “total revenue” of ~$21.53M; both stronger sequentially on net interest margin expansion to 3.77% and a reversal of credit losses; EPS and revenue beat S&P Global consensus by ~$0.05 and ~$1.87M respectively. Bold beat catalysts were lower cost of funds (-12 bps QoQ) and deposit mix changes, partially offset by lower non-interest income from equity investment losses . Results vs S&P: EPS $0.95 vs $0.90*, revenue ~$22.20M vs ~$20.33M* — both beats.*
  • Net interest income rose to $19.62M (+4% QoQ, +15% YoY) as interest expense declined $820K QoQ; provision swung to a $672K reversal from a $6.96M provision in Q2, reflecting improved credit trends post the Q2 charge-off .
  • Credit metrics improved: nonperforming assets fell to $16.7M from $26.5M at Q2 and year-end; ACL coverage to loans at 1.14% remained stable QoQ; net charge-offs were modestly negative (recoveries) in Q3 .
  • Dividend raised 16.7% QoQ to $0.35/share, signaling confidence and providing a near-term stock support catalyst .
  • Management tone: “strong quarterly results” driven by NIM improvement from “higher asset yields and a reduction in funding costs,” and expectation for stronger 2H earnings reiterated from Q2 commentary .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded 23 bps QoQ to 3.77% on lower cost of funds (-12 bps) and reduced interest-bearing deposits, boosting net interest income to $19.62M (+$0.81M QoQ) . CEO: “strong quarterly results…driven by a 23-basis-point increase in the net interest margin…higher asset yields and a reduction in funding costs” .
  • Provision swung to a $672K reversal versus a $6.96M provision in Q2, reflecting improved credit performance post the Q2 charge-off; net charge-offs were negative ($86K recoveries) in Q3 .
  • Capital return strengthened: quarterly dividend increased to $0.35/share (+16.7% QoQ), evidencing confidence in performance and shareholder returns .

What Went Wrong

  • Non-interest income fell $343K QoQ (-15%) and $148K YoY (-7%), driven by a $471K net loss on an equity investment; loan fees partly offset declines .
  • Non-interest expense rose $408K QoQ (+3%) due to higher professional fees (+$346K) and data processing/communications (+$165K) .
  • Loan balances declined $25.1M YTD, driven by construction (-$54.2M), CRE (-$32.0M), and C&I (-$11.5M), partly offset by residential mortgages (+$67.9M); total deposits fell $104.0M YTD, led by time deposits and money market outflows .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Total Revenue ($USD Millions)$19.17 $21.06 $21.53
Diluted EPS ($USD)$(0.68) $0.10 $0.95
Net Interest Margin (%)3.41% 3.54% 3.77%
Net Interest Income ($USD Millions)$17.11 $18.81 $19.62
Provision for (Reversal of) Credit Losses ($USD Millions)$4.60 $6.96 $(0.67)
Adjusted Efficiency Ratio (%)63.65% 63.10% 63.68%

Results vs S&P Global consensus (Q3 2025):

MetricConsensusActualSurprise
Diluted EPS ($USD)$0.90*$0.95*+$0.05 (≈+6%)*
Revenue ($USD)$20.33M*$22.20M*+$1.87M (≈+9%)*

Values retrieved from S&P Global.*

Segment/Balance Mix

Loans ($USD Thousands)Dec 31, 2024Jun 30, 2025Sep 30, 2025
Commercial Real Estate$1,385,085 $1,378,327 $1,353,039
Commercial & Industrial$92,857 $78,409 $81,370
Construction$257,169 $255,335 $203,004
Residential Mortgages$68,030 $108,558 $135,930
Home Equity/Consumer$18,133 $21,416 $22,799
Total Loans$1,821,274 $1,842,045 $1,796,142
Deposits ($USD Thousands)Dec 31, 2024Jun 30, 2025Sep 30, 2025
Demand, NIB$300,972 $299,902 $294,333
Demand, IB$300,559 $282,656 $294,236
Savings$170,880 $169,663 $167,968
Money Market$490,543 $463,206 $465,194
Time Deposits$769,671 $716,945 $706,854
Total Deposits$2,032,625 $1,932,372 $1,928,585

KPIs

KPIQ3 2024Q2 2025Q3 2025
Return on Avg Assets (ROAA)(0.82%) 0.12% 1.15%
Return on Avg Equity (ROAE)(6.96%) 1.04% 9.75%
ACL / Period-End Loans (%)1.27% (Dec-24) 1.14% 1.14%
Nonperforming Assets ($USD)$27,136 (Dec-24) $16,530 $16,710
Net Charge-offs ($USD)$108 (Dec-24) $9,859 $(86)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per share (Quarterly)Q3 2025$0.30 (declared 7/23/25) $0.35 (declared 10/29/25) Raised
Formal revenue/EPS/margin guidance2H 2025“Expect stronger earnings in the second half of 2025” (qualitative) No formal numerical guidance provided Maintained qualitative only

Earnings Call Themes & Trends

Note: No earnings call transcript found for Q3 2025 (we searched the document catalog and found no transcript) [List: earnings-call-transcript returned none].

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Net interest margin & cost of fundsNIM rose to 3.51% in Q1; cost of funds down 13 bps QoQ NIM rose to 3.77%; cost of funds down another 12 bps QoQ Improving
Credit costsQ2 provision $6.96M driven by $9.9M charge-off; coverage 1.14% $672K reversal; net recoveries; NPA down materially vs YE Improving
Deposit mix/pricingStrategic reduction in brokered CDs; pricing to lower cost of funds Total interest-bearing deposits down $61.8M QoQ; CDs down $62.8M YTD Favorable mix/cost
Macro/tariffs/regulatoryHeadwinds cited: inflation, tariffs, recession concerns, geopolitical risks Similar macro caution reiterated; budget stalemate noted Unchanged caution
Capital returnQ2 buybacks (173K shares @ $31.14) Dividend increased 16.7% to $0.35/share More shareholder-friendly

Management Commentary

  • CEO Edward Dietzler: “The Bank achieved strong quarterly results, with a net income of $6.5 million and an EPS of $0.95…driven by a 23-basis-point increase in the net interest margin to 3.77%, …higher asset yields and a reduction in funding costs” .
  • Q2 tone (context): “We expect stronger earnings in the second half of 2025” despite the large previously disclosed credit loss .
  • Dividend posture: “This dividend increase is indicative of…confidence in the performance of the Company and…commitment to providing a strong return to shareholders” .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in the document catalog; therefore, no Q&A to report [List: earnings-call-transcript returned none].

Estimates Context

  • Q3 2025 EPS and revenue beat S&P Global consensus; EPS $0.95 vs $0.90*, revenue ~$22.20M vs ~$20.33M*, driven by NIM expansion and lower funding costs, with provision reversal amplifying EPS leverage. Values retrieved from S&P Global.*
  • With stronger-than-expected NIM and lower cost of funds, estimates may need upward revisions for run-rate NII and EPS; watch for non-interest income volatility (equity investment losses) that could temper upside .

Key Takeaways for Investors

  • Margin-led upside: NIM expansion to 3.77% and cost-of-funds decline drove a clean beat; absent elevated provisions, the earnings power is higher than modeled into Q2 — supportive for near-term multiple expansion .
  • Credit normalization: The swing from a heavy Q2 provision to a Q3 reversal, plus lower NPAs, reduces tail risk perception; monitor construction/CRE loan runoff vs residential growth .
  • Deposit discipline: Continued reduction in CDs and interest-bearing balances indicates proactive funding management; reinforces margin trajectory if competitive pricing does not re-tighten .
  • Capital return enhanced: The 16.7% dividend raise ($0.35/share) adds yield support and signals confidence; potential for buyback activity resumption contingent on capital ratios and credit trends .
  • Non-interest income noise: Equity investment losses weighed on fee line; consider this a volatile item near term relative to core NII improvements .
  • Macro watch: Management continues to flag tariffs, inflation, budget stalemate, and geopolitical risks; sensitivity remains to local real estate markets and liquidity dynamics .
  • Tactical implication: Near-term long bias favored on NIM/credit normalization and dividend raise; reassess after next quarter’s credit and fee trends to confirm durability of earnings trajectory.

Bold items denote significant beats/misses.