Princeton Bancorp, Inc. (the "Company") (NASDAQ - BPRN), the bank holding company for The Bank of Princeton (the "Bank"), today reported its unaudited financial condition and results of operations for the quarter and six months ended June 30, 2026.

President/CEO Edward Dietzler spoke to the quarter results, "We are pleased with our strong second quarter performance, which reflects the continued execution of our strategic priorities and the resilience of our franchise. Net income totaled $7.1 million, or diluted earnings per share of $1.04, supported by a 6% increase in net interest income and continued expansion of our net interest margin compared to the first quarter of 2026."

The Company reported net income of $7.1 million, or $1.04 per diluted common share, for the second quarter of 2026, compared to $6.2 million, or $0.91 per diluted common share, for the first quarter of 2026, and net income of $688 thousand, or $0.10 per diluted common share, for the second quarter of 2025. The increase in net income for the second quarter of 2026 when compared to the first quarter of 2026 was primarily due to an increase in net interest income of $1.2 million, and an increase in the reversal of credit losses of $197 thousand, partially offset by an increase in non-interest expense of $231 thousand, and an increase in income tax expense of $281 thousand. The increase in net income for the second quarter of 2026 when compared to the second quarter of 2025 was primarily due to a decrease in the provision for credit losses of $7.3 million, an increase in net interest income of $1.2 million, and an increase in non-interest income of $185 thousand, partially offset by increases of $2.2 million in income tax expenses and $137 thousand in non-interest expense.

Review of Statements of Financial Condition

Total assets were $2.25 billion at June 30, 2026, a decrease of $34.1 million, or 1.49% when compared to $2.28 billion at December 31, 2025. The primary reasons for the decrease in total assets were related to decreases in cash and cash equivalents of $69.5 million and net loans of $44.6 million, partially offset by an increase in investment securities of $78.9 million. The decrease in the Company’s net loans consisted of decreases of $69.7 million in commercial real estate loans and $15.3 million in construction loans, partially offset by increases of $25.4 million in home equity and consumer loans, and $15.1 million in residential mortgages.

Total deposits on June 30, 2026, decreased $40.5 million, or 2.05%, when compared to December 31, 2025. The decrease in the Company’s deposits consisted primarily of decreases in certificates of deposit of $97.0 million, interest-bearing checking deposits of $20.9 million, and savings deposits of $3.0 million, partially offset by increases in money market deposits of $57.1 million, and non-interest checking deposits of $23.2 million. The decrease in the certificates was strategically planned, including a reduction in brokered deposits of $11 million, implemented by a pricing structure designed to reduce the Bank’s cost of funds. On balance sheet liquidity remains strong at June 30, 2026.

Total stockholders’ equity at June 30, 2026, increased $9.2 million, or 3.40% when compared to December 31, 2025. The increase was primarily due to an increase in retained earnings of $8.7 million (which consisted of $13.3 million in net income, partially offset by $4.6 million of cash dividends recorded during the period), and an increase in paid-in capital from the exercise of stock options of $939 thousand. The ratio of equity to total assets at June 30, 2026, and at December 31, 2025, was 12.4% and 11.9%, respectively.

Asset Quality

At June 30, 2026, non-performing assets totaled $16.3 million, a decrease of $195 thousand when compared to the amount at December 31, 2025.

Review of Quarterly and Six-Month Financial Results

Net interest income was $20.0 million for the second quarter of 2026, an increase of $1.2 million over the first quarter of 2026, and an increase of $1.2 million compared to $18.8 million for the second quarter of 2025. Net interest margin for the second quarter of 2026 was 3.86%, an increase of 23 basis points when compared to the first quarter of 2026, and an increase of 32 basis points when compared to the second quarter of 2025. The increase in net interest income when compared with the first quarter of 2026 was primarily related to a decrease in interest expense of $597 thousand, or 4.9%, and an increase in interest income of $585 thousand, or 1.9%. The increase in net interest income when compared with the second quarter of 2025 was primarily due to a $2.3 million decrease in interest expense, partially offset by a decrease in interest income of $1.1 million. When comparing the second quarter of 2026 and the second quarter of 2025 periods, the decrease in interest expense and the increase in net interest margin were primarily associated with a decrease in total interest-bearing deposits of $68.8 million, as well as a decrease in the Company’s cost of funds of 40 basis points. The decrease in interest income for the second quarter of 2026 when compared to the second quarter of 2025 was due to a $46.6 million decrease in average interest-earning assets (caused mostly by a $50.4 million reduction in the average balance of loans, and a $39.7 million reduction in the average balance of total securities, partially offset by an increase of $43.5 million in the average balance of other interest-earning assets), and a 7-basis point decrease in the yield on interest-earning assets.

The Company recorded a reversal of credit losses of $353 thousand during the second quarter of 2026, which consisted of a $314 thousand decrease recorded to the allowance of credit losses on loans, and a $39 thousand decrease to the provision for credit losses related to unfunded commitments, which are recorded in other liabilities on the Company’s statements of financial condition. The current quarter's reversal of credit losses recorded on the Company’s statements of income was $197 thousand greater than when compared to the reversal of credit losses for the first quarter of 2026, and was $7.3 million lower when compared to the provision for credit losses for the second quarter of 2025. The coverage ratio of the allowance for credit losses to period end loans was 1.13% at June 30, 2026, and 1.12% at December 31, 2025.

Total non-interest income of $2.4 million for the second quarter of 2026 decreased $15 thousand or 0.6% when compared to the first quarter of 2026 and increased $185 thousand or 8.2% when compared to the second quarter of 2025. The decrease in the second quarter of 2026 when compared to the first quarter of 2026 was due to a decrease in other non-interest income of $421 thousand, which is related to a gain recorded on an equity investment in the amount of $232 thousand in the first quarter of 2026, partially offset by an increase of $380 thousand in loan fees. The increase over the prior year’s second quarter was primarily due to an increase in loan fees of $205 thousand, and in fees and service charges of $46 thousand, partially offset by a decrease in other non-interest income of $88 thousand.

Total non-interest expense of $13.6 million for the second quarter of 2026 increased $231 thousand, or 1.7%, when compared to the first quarter of 2026. This increase over the prior quarter was primarily due to increases in professional fees of $214 thousand, in salaries and employee benefits expense of $128 thousand, and in other non-interest expense of $119 thousand, partially offset by decreases in occupancy and equipment of $140 thousand, and in data processing and communications expenses of $46 thousand. Total non-interest expense for the second quarter of 2026 increased $137 thousand or 1.0% when compared to the second quarter of 2025. This increase was primarily related to increases in professional fees of $253 thousand, occupancy and equipment expense of $105 thousand, and salaries and employee benefits expense of $60 thousand, partially offset by decreases in federal deposit insurance expense of $115 thousand, office expense of $102 thousand, and other non-interest expense of $53 thousand.

For the quarter ended June 30, 2026, the Company recorded an income tax expense of $2.1 million, resulting in an effective tax rate of 22.9%, compared to an income tax expense of $1.8 million resulting in an effective tax rate of 22.6% for the quarter ended March 31, 2026 and compared to an income tax benefit of ($92) thousand resulting in an effective tax rate of (15.4)% for the quarter ended June 30, 2025.

For the six-month period ended June 30, 2026, the Company recorded net income of $13.3 million, or $1.95 per diluted common share, compared to $6.1 million, or $0.88 per diluted common share, for the same period in 2025. The increase in net income was primarily due to a decrease of $7.7 million in the provision for credit losses, an increase in net interest income of $1.3 million, an increase in non-interest income of $446 thousand, and a decrease in non-interest expense of $240 thousand, partially offset by an increase in income tax expense of $2.5 million, when compared to the prior year period.

About Princeton Bancorp, Inc. and The Bank of Princeton

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 29 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cranbury, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation.

Forward-Looking Statements

The Company may from time to time make written or oral "forward-looking statements," including statements contained in the Company’s filings with the Securities and Exchange Commission, in its reports to shareholders and in other communications by the Company (including this press release), which are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the potential impact of the global impact of foreign military conflicts in Iran, the Middle East and elsewhere, any future Federal budget stalemates in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Bank’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Bank’s products and services; credit risk associated with the Bank’s lending activities; risks relating to the real estate market and the Bank’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; the timing and nature of the regulatory response to any applications filed by the Company and the Bank; developments in technology, such as artificial intelligence, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our customers' expectations for convenience and security; other acquisitions; changes in consumer spending and saving habits; those risks under the heading "Risk Factors" set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025; and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as required by applicable law or regulation.

Princeton Bancorp, Inc. Consolidated Statements of Financial Condition (Unaudited) (Dollars in thousands, except per share data)
										June 30, 2026 vs						June 30, 2026 vs
	June 30,			December 31,			June 30,			December 31, 2025						June 30, 2025
	2026			2025			2025			$ Change			% Change			$ Change			% Change
ASSETS
Cash and cash equivalents	$	66,190		$	135,686		$	21,094		$	(69,496	)		(51.22	)%	$	45,096			213.79	%
Securities available-for-sale- taxable		222,906			142,817			185,177			80,089			56.08	%		37,729			20.37	%
Securities available-for-sale- tax-exempt		38,585			39,752			39,586			(1,167	)		(2.94	)%		(1,001	)		(2.53	)%
Securities held-to-maturity		149			153			157			(4	)		(2.61	)%		(8	)		(5.10	)%
Loans receivable, net of deferred loan fees		1,771,500			1,816,416			1,839,228			(44,916	)		(2.47	)%		(67,728	)		(3.68	)%
Allowance for credit losses on loans		(19,963	)		(20,325	)		(21,014	)		362			(1.78	)%		1,051			(5.00	)%
Goodwill		14,381			14,381			14,381			—			—			—			—
Core deposit intangible		2,394			2,776			3,185			(382	)		(13.76	)%		(791	)		(24.84	)%
Other assets		154,870			153,491			159,874			1,379			0.90	%		(5,004	)		(3.13	)%
TOTAL ASSETS	$	2,251,012		$	2,285,147		$	2,241,668		$	(34,135	)		(1.49	)%	$	9,344			0.42	%
LIABILITIES
Non-interest checking	$	309,244		$	286,013		$	299,902		$	23,231			8.12	%	$	9,342			3.12	%
Interest checking		312,640			333,533			282,656			(20,893	)		(6.26	)%		29,984			10.61	%
Savings		164,744			167,735			169,663			(2,991	)		(1.78	)%		(4,919	)		(2.90	)%
Money market		521,309			464,205			463,206			57,104			12.30	%		58,103			12.54	%
Time deposits over $250,000		236,109			256,929			220,474			(20,820	)		(8.10	)%		15,635			7.09	%
Other time deposits		391,646			467,778			496,471			(76,132	)		(16.28	)%		(104,825	)		(21.11	)%
Total deposits		1,935,692			1,976,193			1,932,372			(40,501	)		(2.05	)%		3,320			0.17	%
Borrowings		—			—			10,000			—		N/A				(10,000	)		(100.00	)%
Other liabilities		35,397			38,242			37,350			(2,845	)		(7.44	)%		(1,953	)		(5.23	)%
TOTAL LIABILITIES		1,971,089			2,014,435			1,979,722			(43,346	)		(2.15	)%		(8,633	)		(0.44	)%
STOCKHOLDERS’ EQUITY
Paid-in capital		123,893			122,954			121,684			939			0.76	%		2,209			1.82	%
Treasury stock		(9,034	)		(8,707	)		(6,413	)		(327	)		3.76	%		(2,621	)		40.87	%
Retained earnings		170,424			161,730			153,718			8,694			5.38	%		16,706			10.87	%
Accumulated other comprehensive income (loss)		(5,360	)		(5,265	)		(7,043	)		(95	)		1.80	%		1,683			(23.90	)%
TOTAL STOCKHOLDERS’ EQUITY		279,923			270,712			261,946			9,211			3.40	%		17,977			6.86	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,251,012		$	2,285,147		$	2,241,668			(34,135	)		(1.49	)%		9,344			0.42	%
Book value per common share	$	41.09		$	40.01		$	38.49		$	1.08			2.70	%	$	2.60			6.76	%
Tangible book value per common share ¹	$	38.62		$	37.48		$	35.91		$	1.14			3.04	%	$	2.71			7.55	%

1	Tangible book value per common share is a non-GAAP measure.
	For more information, see "Supplemental Information - Non-GAAP Financial Measures (Unaudited)" below.

Princeton Bancorp, Inc. Loan and Deposit Tables (Unaudited)
The components of loans receivable, net at June 30, 2026 and December 31, 2025 were as follows:
	June 30,			December 31,
	2026			2025
	(In thousands)
Commercial real estate	$	1,273,815		$	1,343,531
Commercial and industrial		76,570			76,557
Construction		194,188			209,483
Residential first-lien mortgages		178,954			163,813
Home equity / consumer		50,754			25,359
Total loans		1,774,281			1,818,743
Deferred fees and costs		(2,781	)		(2,327	)
Allowance for credit losses on loans		(19,963	)		(20,325	)
Loans, net	$	1,751,537		$	1,796,091

The components of deposits at June 30, 2026 and December 31, 2025 were as follows:
	June 30,		December 31,
	2026		2025
	(In thousands)
Non-interest checking	$	309,244	$	286,013
Interest checking		312,640		333,533
Savings		164,744		167,735
Money market		521,309		464,205
Time deposits		627,755		724,707
Total deposits	$	1,935,692	$	1,976,193

Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands except per share data)
	Three Months Ended June 30,
	2026			2025			$ Change			% Change
Interest and dividend income
Loans and fees	$	28,681		$	29,620		$	(939	)		(3.2	)%
Available-for-sale debt securities:
Taxable		1,832			2,298			(466	)		(20.3	)%
Tax-exempt		264			279			(15	)		(5.4	)%
Held-to-maturity debt securities		2			2			—			—
Other interest and dividend income		877			557			320			57.5	%
Total interest and dividends		31,656			32,756			(1,100	)		(3.4	)%
Interest expense
Deposits		11,616			13,933			(2,317	)		(16.6	)%
Borrowings		—			13			(13	)		(100.0	)%
Total interest expense		11,616			13,946			(2,330	)		(16.7	)%
Net interest income		20,040			18,810			1,230			6.5	%
Provision for (reversal of) credit losses		(353	)		6,956			(7,309	)		(105.1	)%
Net interest income after provision for (reversal of) credit losses		20,393			11,854			8,539			72.0	%
Non-interest income
Income from bank-owned life insurance		516			494			22			4.5	%
Fees and service charges		597			551			46			8.3	%
Loan fees, including prepayment penalties		908			703			205			29.2	%
Other		415			503			(88	)		(17.5	)%
Total non-interest income		2,436			2,251			185			8.2	%
Non-interest expense
Salaries and employee benefits		7,153			7,093			60			0.8	%
Occupancy and equipment		2,252			2,147			105			4.9	%
Professional fees		974			721			253			35.1	%
Data processing and communications		1,581			1,543			38			2.5	%
Federal deposit insurance		300			415			(115	)		(27.7	)%
Advertising and promotion		136			152			(16	)		(10.5	)%
Office		136			238			(102	)		(42.9	)%
Core deposit intangible		186			219			(33	)		(15.1	)%
Other		928			981			(53	)		(5.4	)%
Total non-interest expense		13,646			13,509			137			1.0	%
Income before income tax expense (benefit)		9,183			596			8,587			1440.8	%
Income tax expense (benefit)		2,102			(92	)		2,194			(2384.8	)%
Net income	$	7,081		$	688		$	6,393			929.2	%
Net income per common share - basic	$	1.04		$	0.10		$	0.94			937.5	%
Net income per common share - diluted	$	1.04		$	0.10		$	0.94			940.1	%
Weighted average shares outstanding - basic		6,812			6,867			(55	)		(0.8	)%
Weighted average shares outstanding - diluted		6,823			6,895			(72	)		(1.0	)%

Princeton Bancorp, Inc. Consolidated Statements of Income (Current Quarter vs Prior Quarter) (Unaudited) (Amounts in thousands, except per share data)
	Three Months Ended
	June 30,			March 31,
	2026			2026			$ Change			% Change
Interest and dividend income
Loans and fees	$	28,681		$	28,066		$	615			2.2	%
Available-for-sale debt securities:
Taxable		1,832			1,519			313			20.6	%
Tax-exempt		264			274			(10	)		(3.6	)%
Held-to-maturity debt securities		2			2			—			0.0	%
Other interest and dividend income		877			1,210			(333	)		(27.5	)%
Total interest and dividends		31,656			31,071			585			1.9	%
Interest expense
Deposits		11,616			12,213			(597	)		(4.9	)%
Borrowings		—			—			—		N/A
Total interest expense		11,616			12,213			(597	)		(4.9	)%
Net interest income		20,040			18,858			1,182			6.3	%
Provision for (reversal of) credit losses		(353	)		(156	)		(197	)		126.3	%
Net interest income after provision for (reversal of) credit losses		20,393			19,014			1,379			7.3	%
Non-interest income
Income from bank-owned life insurance		516			507			9			1.8	%
Fees and service charges		597			580			17			2.9	%
Loan fees, including prepayment penalties		908			528			380			72.0	%
Other		415			836			(421	)		(50.4	)%
Total non-interest income		2,436			2,451			(15	)		(0.6	)%
Non-interest expense
Salaries and employee benefits		7,153			7,025			128			1.8	%
Occupancy and equipment		2,252			2,392			(140	)		(5.9	)%
Professional fees		974			760			214			28.2	%
Data processing and communications		1,581			1,627			(46	)		(2.8	)%
Federal deposit insurance		300			300			—			0.0	%
Advertising and promotion		136			175			(39	)		(22.3	)%
Office		136			131			5			3.8	%
Core deposit intangible		186			196			(10	)		(5.1	)%
Other		928			809			119			14.7	%
Total non-interest expense		13,646			13,415			231			1.7	%
Income before income tax expense		9,183			8,050			1,133			14.1	%
Income tax expense		2,102			1,821			281			15.4	%
Net income	$	7,081		$	6,229		$	852			13.7	%
Net income per common share - basic	$	1.04		$	0.92		$	0.12			13.0	%
Net income per common share - diluted	$	1.04		$	0.91		$	0.13			14.3	%
Weighted average shares outstanding - basic		6,812			6,788			24			0.4	%
Weighted average shares outstanding - diluted		6,823			6,808			15			0.2	%

Princeton Bancorp, Inc. Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data)
	Six Months Ended
	June 30,
	2026			2025		$ Change			% Change
Interest and dividend income
Loans and fees	$	56,747		$	59,244	$	(2,497	)		(4.2	)%
Available-for-sale debt securities:
Taxable		3,351			4,914		(1,563	)		(31.8	)%
Tax-exempt		538			563		(25	)		(4.4	)%
Held-to-maturity debt securities		4			4		—			—
Other interest and dividend income		2,087			1,326		761			57.4	%
Total interest and dividends		62,727			66,051		(3,324	)		(5.0	)%
Interest expense
Deposits		23,829			28,471		(4,642	)		(16.3	)%
Borrowings		—			13		(13	)		(100.0	)%
Total interest expense		23,829			28,484		(4,655	)		(16.3	)%
Net interest income		38,898			37,567		1,331			3.5	%
Provision for (reversal of) credit losses		(509	)		7,224		(7,733	)		(107.0	)%
Net interest income after provision for (reversal of) credit losses		39,407			30,343		9,064			29.9	%
Non-interest income
Income from bank-owned life insurance		1,023			965		58			6.0	%
Fees and service charges		1,177			1,062		115			10.8	%
Loan fees, including prepayment penalties		1,436			1,378		58			4.2	%
Other		1,251			1,036		215			20.8	%
Total non-interest income		4,887			4,441		446			10.0	%
Non-interest expense
Salaries and employee benefits		14,178			14,265		(87	)		(0.6	)%
Occupancy and equipment		4,644			4,432		212			4.8	%
Professional fees		1,734			1,482		252			17.0	%
Data processing and communications		3,208			3,169		39			1.2	%
Federal deposit insurance		600			948		(348	)		(36.7	)%
Advertising and promotion		311			323		(12	)		(3.7	)%
Office		267			348		(81	)		(23.3	)%
Other real estate owned		—			27		(27	)		(100.0	)%
Core deposit intangible		382			447		(65	)		(14.5	)%
Other		1,737			1,860		(123	)		(6.6	)%
Total non-interest expense		27,061			27,301		(240	)		(0.9	)%
Income before income tax expense		17,233			7,483		9,750			130.3	%
Income tax expense		3,923			1,417		2,506			176.9	%
Net income	$	13,310		$	6,066	$	7,244			119.4	%
Net income per common share - basic	$	1.96		$	0.88	$	1.08			122.7	%
Net income per common share - diluted	$	1.95		$	0.88	$	1.07			121.6	%
Weighted average shares outstanding - basic