Princeton Bancorp Third-Quarter Profit Falls as Credit Provision Rises to $7.6 Million

The Tip Desk · October 28, 2026 · 4 min read

Third-quarter 2026 net interest income was $20.0 million. Two commercial real estate charge-offs and a retail-consolidation asset write-down reduced net income to $1.0 million, or $0.15 a share, while net loans rose $80.0 million from the prior quarter.

Princeton Bancorp, Inc. (BPRN), the holding company for The Bank of Princeton, reported net interest income of $20.0 million for the third quarter of 2026. Two commercial real estate charge-offs and an asset write-down tied to a future retail consolidation reduced reported net income to $1.0 million, or $0.15 a share, down from $7.1 million, or $1.04 a share, in the second quarter.

The New Jersey community bank recorded a $7.6 million provision for credit losses, an $8.0 million swing from a $353 thousand reversal in the prior quarter, after charging off two previously identified commercial real estate loans. President and CEO Edward Dietzler said those actions, together with an asset write-down tied to a future retail consolidation, reduced reported net income; excluding those non-recurring items, he said the bank’s core operations generated approximately $7.0 million plus in net income.

Net interest income was $20.0 million, down $31 thousand from the second quarter. Interest expense rose $362 thousand, or 3.1%, and interest income rose $331 thousand, or 1.0%. Net interest margin compressed 11 basis points to 3.75%, reversing the second-quarter expansion.

The loan book turned. Net loans increased $80.0 million, or 18.1% on an annualized linked-quarter basis, after a $44.6 million decline from December 31, 2025, to June 30, 2026. Commercial real estate loans fell $67.7 million. Home equity and consumer loans rose $37.5 million, residential mortgages $31.2 million, commercial and industrial loans $21.8 million, and construction loans $12.8 million. Total deposits grew $68.0 million, a 14.0% annualized linked-quarter increase, after a $40.5 million decline from December 31, 2025, to June 30, 2026. Total assets were $2.31 billion at September 30, 2026.

Non-performing assets fell $8.3 million to $8.2 million after the commercial real estate write-downs, from $16.5 million at March 31. The allowance for credit losses on loans was $19.4 million, or 1.05% of period-end loans, versus 1.12% at year-end 2025.

Non-interest income was $2.5 million. Loan fees, including prepayment penalties, fell $400 thousand to $508 thousand; other non-interest income rose $402 thousand. Non-interest expense was $13.5 million, down $105 thousand from the second quarter. Occupancy and equipment expense rose $957 thousand, of which $900 thousand related to the retail-consolidation write-down. Salaries and employee benefits fell $494 thousand.

The board increased the quarterly dividend $0.05, or 14.2%, which the company said signaled confidence in sustained earnings performance. Stockholders’ equity was $270.4 million, with the equity-to-assets ratio at 11.7%. Accumulated other comprehensive loss widened $8.6 million from year-end 2025 on unrealized declines in available-for-sale securities.

For the nine months ended September 30, 2026, net income was $14.3 million, or $2.10 a share, compared with $12.5 million, or $1.82 a share, a year earlier. The company attributed the year-over-year increase to higher net interest income, higher non-interest income and lower non-interest expense, partly offset by a larger credit provision and higher tax expense.

Year over year, net interest income rose $390 thousand. Average interest-earning assets increased $54.1 million, with average securities up $36.1 million and other interest-earning assets up $39.5 million, while average loans fell $21.5 million. Interest expense declined $1.1 million even as average interest-bearing deposits rose $21.7 million; the company said the lower expense and the 2-basis-point year-over-year margin decline were associated with that deposit increase and a 28-basis-point drop in the cost of funds.

The bank operates 29 branches in New Jersey, five in the Philadelphia area and two in the New York City metropolitan area. Dietzler’s comment on core earnings framed the quarter as a cleanup of identified problem credits rather than a change in the franchise’s run-rate, while the dividend increase and third-quarter loan and deposit growth marked the balance-sheet turn.