Princeton Bancorp Inc (BPRN, Financial) released its unaudited financial results for the quarter ended September 30, 2023, on October 26, 2023. The company reported a net income of $7.6 million, or $1.19 per diluted common share, for the third quarter of 2023. This is an increase from the net income of $7.0 million, or $1.09 per diluted common share, for the third quarter of 2022.
Financial Performance
The increase in net income for the third quarter of 2023 when compared to the second quarter of 2023 was primarily due to a decrease of $7.7 million in non-interest expense, a decrease of $2.6 million in its provision for credit losses, and an increase of $1.0 million in net interest income. This was partially offset by a decrease of $9.2 million in non-interest income and an increase of $1.4 million in income tax expense.
For the nine-month period ended September 30, 2023, the Company recorded net income of $20.5 million, or $3.21 per diluted common share, compared to $19.3 million, or $2.98 per diluted common share, for the same period in 2022. The increase was primarily due to an increase of $11.5 million in non-interest income and a $1.8 million decrease in income tax expense, partially offset by an $8.9 million increase in non-interest expense, and a $2.3 million increase in its provision for credit losses.
Balance Sheet Review
Total assets were $1.91 billion at September 30, 2023, an increase of $311.3 million, or 19.4% when compared to $1.60 billion at the end of 2022. The primary reason for the increase in total assets was the acquisition of Noah Bank on May 19, 2023, which had approximately $239.4 million in assets at closing.
At September 30, 2023, non-performing assets totaled $6.8 million, an increase of $6.5 million, when compared to the amount at December 31, 2022. This increase was due to the delinquency of a $4.5 million commercial real estate loan and $2.5 million of non-performing loans acquired from Noah Bank.
Company's Outlook
President/CEO Edward Dietzler commented on the quarter, "The Bank continues to be well-positioned to promote strong growth. Our recent acquisition of Noah Bank is performing well giving us a strong platform to expand. We will continue to look at other opportunities that fit our overall strategy.”
As a result of the increase in deposits, balance sheet liquidity increased to $206.9 million in immediately available cash with zero borrowings. The Bank has a sizable loan pipeline in the communities we serve that it anticipates funding during the remainder of 2023, supported by the Bank’s strong capital position.
Explore the complete 8-K earnings release (here) from Princeton Bancorp Inc for further details.
