Princeton Bancorp Reports 22% Asset Growth, Decline in Net Income for Fiscal Year 2024

Princeton Bancorp, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total assets rising to $2.34 billion, a 22.11% increase from $1.92 billion in 2023. The company’s net income for the year was $10.2 million, or $1.55 per diluted share, a decrease from $25.8 million, or $4.03 per diluted share, in the previous year. This decline was primarily attributed to a $9.7 million bargain purchase gain recognized in 2023 from the acquisition of Noah Bank, as well as increased provisions for credit losses related to the acquisition of Cornerstone Financial Corporation (CFC) in August 2024.

The company’s loan portfolio also saw substantial growth, increasing by $270.5 million, or 17.5%, to $1.82 billion. This growth was driven by the acquisition of $255.5 million in loans from CFC, alongside increases in commercial real estate loans, commercial and industrial loans, and residential first-lien mortgage loans. Notably, commercial real estate loans accounted for 76.1% of the total loan portfolio, amounting to $1.39 billion, which represented a 21.1% increase from the previous year.

Strategically, Princeton Bancorp has expanded its footprint through acquisitions, completing the purchase of Noah Bank in May 2023 and Cornerstone Financial Corporation in August 2024. These acquisitions not only increased the company’s asset base but also enhanced its market presence in New Jersey and Pennsylvania. As of December 31, 2024, the company operated 33 branches within a 50-mile radius of Princeton, NJ, and had a total employee count of 249.

In terms of operational metrics, total deposits increased by $396.9 million, or 24.26%, to $2.03 billion, largely due to the acquisition of $282.8 million in deposits from CFC. The company reported a notable increase in non-interest-bearing deposits, which rose by 20.7% to $301 million. However, non-performing assets also increased significantly, totaling $27.1 million, up from $6.7 million in 2023, primarily due to delinquencies in two commercial real estate loans.

Looking ahead, Princeton Bancorp aims to continue its growth trajectory through strategic acquisitions while maintaining a focus on enhancing customer relationships and service offerings. The company remains committed to managing its credit risk and ensuring compliance with regulatory capital requirements, having met all capital adequacy standards as of December 31, 2024. The management anticipates that ongoing economic conditions and interest rate fluctuations will play a critical role in shaping its financial performance in the coming year.