Fri, May 9, 5:36 PM (9 days ago)
**Princeton Bancorp, Inc. (BPRN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue for Q1 2025 was $33.3 million, up from $28.1 million in Q1 2024, driven by increased net interest income and non-interest income. - **Profit Margins:** Net income increased to $5.4 million (78 cents per share) from $4.3 million (68 cents per share) in Q1 2024. The effective tax rate was 21.9%. - **Cash Flow:** Net cash provided by operating activities was $1.3 million, down from $4.8 million in Q1 2024. The decrease was due to changes in accrued interest receivable and other assets. - **Earnings Changes:** Net interest income increased by $3.3 million, primarily due to higher loan balances and yields. Non-interest income rose by $0.2 million, while non-interest expense increased by $2.0 million, mainly due to higher salaries and employee benefits. **Quarterly Performance Discussion:** - **Loans:** Total loans increased by $37.7 million (2.1%) to $1.86 billion, with growth in residential mortgages and commercial real estate loans. - **Deposits:** Total deposits decreased by $22.0 million (1.1%) to $2.01 billion, with declines in money market and certificate of deposit accounts. - **Asset Quality:** Non-performing assets decreased to $26.5 million (1.43% of total loans) from $27.1 million (1.48%) in Q1 2024. The allowance for credit losses coverage ratio was 1.29%. - **Capital:** The company maintained strong capital ratios, with a total risk-based capital ratio of 13.68% and a common equity Tier 1 capital ratio of 12.50%. **Trends and Uncertainties:** - **Economic Outlook:** The first quarter of 2025 opened with economic optimism but ended with uncertainty due to trade policy and geopolitical tensions. - **Interest Rates:** The company expects interest rate volatility to continue, which may impact net interest margins. - **Credit Quality:** The company continues to monitor credit quality closely, given the economic uncertainties. **Future Operations Impact:** - **Growth:** The company plans to continue growing its loan portfolio, focusing on residential mortgages and commercial real estate. - **Deposits:** The company aims to stabilize and grow deposits, particularly in interest-bearing accounts. - **Risk Management:** The company will continue to manage interest rate risk and credit risk proactively. **Ticker:** BPRN **Market Risk and Controls:** - The company actively manages market risk, particularly interest rate risk, through its Asset/Liability Committee. - The company's disclosure controls and procedures were effective as of March 31, 2025.