10-Q · May 8, 2026
Princeton Bancorp reported net income of $6.229 million, translating to a diluted EPS of $0.91 for Q1 2026, representing a significant year-over-year increase from $5.378 million and $0.77 in EPS. Revenue for the…
Earnings analysis · 10-Q
BPRN earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Princeton Bancorp delivered a strong year-over-year earnings recovery in Q2 2026, with diluted EPS of $1.04 versus $0.10, net interest income up 6.5% to $20.040 million, and a 32-basis-point increase in net interest…
Read full summary
Princeton Bancorp delivered a strong year-over-year earnings recovery in Q2 2026, with diluted EPS of $1.04 versus $0.10, net interest income up 6.5% to $20.040 million, and a 32-basis-point increase in net interest margin to 3.86%. Credit costs normalized, capital strengthened, and management reported substantial contingent liquidity. Offsetting concerns are a 51.2% decline in cash, a 2.05% deposit contraction, substantial uninsured deposits, high CRE concentration, and a materially negative near-term interest-rate sensitivity gap.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.04
- Segment
- Single aggregated banking operating and reporting segment; Q2 2026 net income was $7.081 million. Segment revenue was not separately disclosed.
What stood out
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Earnings rebounded sharply year over year
Net income increased to $7.081 million from $688 thousand in Q2 2025, while diluted EPS rose to $1.04 from $0.10. The improvement was primarily driven by a $353 thousand reversal of credit losses versus a $6.956 million provision in the prior-year quarter.
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Margin expansion lifted net interest income
Net interest income increased 6.5% to $20.040 million from $18.810 million, and net interest margin expanded to 3.86% from 3.54%, a 32-basis-point improvement. Interest expense declined $2.330 million to $11.616 million as the average cost of interest-bearing deposits fell 43 basis points to 2.86%.
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First-half profitability improved materially
Six-month net income was $13.310 million versus $6.066 million in the prior-year period, and diluted EPS was $1.95 versus $0.88. Six-month net interest income increased to $38.898 million from $37.567 million while the credit-loss provision changed from a $7.224 million provision to a $509 thousand reversal.
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Credit losses remained limited
Credit performance was stable to improving: nonperforming assets declined to $16.3 million from $16.6 million at December 31, 2025, while the allowance coverage ratio increased to 1.13% of period-end loans from 1.12%. Q2 charge-offs were only $4 thousand and recoveries were $248 thousand.
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Capital ratios strengthened
The Bank remained well capitalized, with total capital of $281.209 million and a 14.67% total risk-based capital ratio at June 30, 2026, versus 13.99% at December 31, 2025. The equity-to-assets ratio increased to 12.4% from 11.9%.
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Contingent liquidity remains substantial
Management reported additional liquidity capacity despite lower cash: the Company had $523.5 million of additional FHLB borrowing capacity, $10.0 million available from ACBB, and no outstanding borrowings at June 30, 2026.
What to watch
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Cash and deposits contracted
Cash and cash equivalents fell 51.2% to $66.190 million from $135.686 million at December 31, 2025. Total deposits also declined 2.05% to $1.936 billion, including approximately $666.0 million of uninsured deposits.
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High commercial real-estate concentration
Commercial real estate loans totaled $1.274 billion, or 71.8% of total loans of $1.774 billion. The New York market represented $605.188 million, or 47.5% of the CRE portfolio, leaving credit performance sensitive to CRE and regional real-estate conditions.
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Near-term negative rate sensitivity
The cumulative interest-rate sensitivity gap was negative $870.837 million through three months and negative $819.795 million through one year, equal to negative 38.69% and negative 36.42% of total assets, respectively. This structure could pressure earnings if rates move unfavorably.
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Unrealized securities losses remain elevated
The available-for-sale securities portfolio increased 43.2% to $261.491 million, while unrealized losses increased to $8.719 million from $8.065 million at December 31, 2025. Securities with unrealized losses for more than twelve months had fair value of $58.461 million and unrealized losses of $8.259 million.
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Specific credit exposures persist
The Company identified nine loans totaling $16.3 million for individual credit-loss analysis at June 30, 2026, including $15.562 million of nonaccrual commercial real-estate loans. Management also stated that future additions to the allowance may be necessary as economic conditions or other factors change.
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No formal risk-factor update
No material changes were reported to the risk factors in the 2025 Form 10-K. However, management cited potential impacts from higher tariffs, inflation, recessionary conditions and geopolitical conflicts, including possible increases in delinquencies and decreases in deposits and loan originations.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that current sources of funds provide adequate liquidity for current cash-flow needs; the Company had $523.5 million of additional FHLB borrowing capacity at June 30, 2026.
Earlier filings 4
10-K · March 13, 2026
Princeton Bancorp (The Bank of Princeton) shows stable revenue run-rate (≈$35M per quarter in 2025) with improved profitability and credit metrics in 2025. Loans receivable remained steady at $1.82 billion, with a large…
10-Q · August 8, 2025
Princeton Bancorp reported Q2 2025 total revenue of $21,061,000 (net interest income $18,810,000 + non‑interest income $2,251,000) and diluted EPS of $0.10. Profitability was materially impacted by a large provision for…
10-Q · November 14, 2024
Princeton Bancorp reported total revenue (net interest income plus non‑interest income) of $19,165,000 for Q3 2024, roughly flat with Q3 2023 ($19,087,000) but recorded a net loss of $4,456,000 (diluted EPS $(0.68))…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.