Princeton Bancorp reported third-quarter 2026 net income of $1.0 million, sharply lower than in the prior quarter and a year earlier, after increasing its credit-loss provision and recording a write-down tied to a planned retail consolidation. CEO Edward Dietzler said the two items reduced earnings; excluding them, the bank’s core operations generated more than $7 million in net income.
At the same time, the company reported quarter-over-quarter growth in loans, deposits and total assets, and raised its quarterly dividend.
Earnings and credit costs
- Net income was $1.0 million, or $0.15 per diluted share, compared with $7.1 million, or $1.04 per share, in the second quarter of 2026, and $6.5 million, or $0.95 per share, in the third quarter of 2025.
- The main reason for the decline was an $8.0 million increase in the provision for credit losses from the second quarter, primarily related to two commercial real estate loans that the bank charged off. The company also recorded an asset write-down related to a future retail consolidation.
- Compared with the third quarter of 2025, the provision for credit losses was $8.3 million higher. Higher net interest income and non-interest income, lower non-interest expenses and lower income taxes partly offset that increase.
- Net interest income was $20.0 million, up $390,000 from a year earlier but down $31,000 from the prior quarter. Net interest margin was 3.75%, down 11 basis points quarter over quarter and 2 basis points year over year.
Balance sheet and asset quality
- Net loans grew $80.0 million from the second quarter, an 18.1% annualized increase. Compared with year-end 2025, net loans were up $35.1 million. Growth in home equity and consumer loans, residential mortgages, commercial and industrial loans, and construction loans more than offset a $67.7 million decline in commercial real estate loans.
- Deposits increased $68.0 million from the second quarter, a 14.0% annualized rise. Since year-end, deposits were up $27.5 million, with growth in money market and non-interest checking balances offsetting a decline in certificates of deposit. The company said on-balance-sheet liquidity remained strong.
- Total assets reached $2.31 billion at September 30, up $57.3 million from the prior quarter and $23.1 million from year-end. Compared with year-end, higher securities and net loans were partly offset by a $77.9 million reduction in cash and cash equivalents.
- Non-performing assets were $8.2 million, down $8.3 million from year-end. The company attributed most of the decline to the third-quarter write-down of the two commercial real estate loans.
- Stockholders’ equity was nearly unchanged from year-end, down $274,000. An $8.6 million increase in accumulated other comprehensive loss, reflecting unrealized declines in the value of available-for-sale securities, was largely offset by retained earnings growth and capital from exercised stock options. Equity was 11.7% of assets, compared with 11.8% at year-end.
Dividend
- The board increased the quarterly dividend by $0.05, or 14.2%. The company described the increase as reflecting management and board confidence in sustained earnings performance.
What changes for investors
The quarter combined continued balance-sheet growth with a substantial earnings hit from credit costs and the retail-related write-down. The decline in non-performing assets largely reflects the commercial real estate loan write-downs, rather than a separate reported improvement in those loans. The dividend increase raises the cash return to shareholders, while the company’s reported equity-to-assets ratio was slightly lower than at year-end.