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BPRN Nasdaq· Princeton Bancorp Inc
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BPRN Nasdaq· Princeton Bancorp Inc
Earnings report Q3 2023

Princeton Bancorp Reports Strong Revenue Growth in Q3 2023

Segments of revenue

In the third quarter of 2023, Princeton Bancorp reported a total interest and dividend income of $27.0 million, compared to $19.1 million in the same period last year. This represents a significant increase of $7.9 million or 41.4%. The primary driver of this growth was the increase in interest income on loans, which rose by $5.2 million. This increase can be attributed to both a higher average loan balance of $78.2 million and an improved yield of 112 basis points. Additionally, other interest and dividend income increased by $2.6 million, mainly due to a rise in average balances.

Strengths

Princeton Bancorp demonstrated strong revenue growth in the third quarter of 2023. The increase in interest income on loans can be attributed to both higher loan balances and improved yields. This indicates that the company's loan portfolio is expanding and generating higher returns. The rise in other interest and dividend income also suggests that the company's investment activities are performing well. Furthermore, management highlighted a decrease in income tax expense and a reduction in the provision for credit losses, contributing to the overall increase in net income.

Challenges

Despite the strong revenue growth, Princeton Bancorp experienced a decrease in net interest income of $1.0 million in the third quarter of 2023 compared to the same period last year. This decline may be a result of increased interest expense, particularly on deposits, which rose to $10.3 million from $1.4 million in the previous year. The company may need to address this challenge to maintain profitability.

Noteworthy

Princeton Bancorp reported a net income of $7.6 million, or $1.19 per diluted common share, for the third quarter of 2023, compared to $7.0 million, or $1.09 per diluted common share, in the same period last year. The increase in net income was primarily driven by higher non-interest income, a decrease in income tax expense, and a reduction in the provision for credit losses. However, the decrease in net interest income partially offset this growth.

Summary

Princeton Bancorp delivered strong revenue growth in the third quarter of 2023, driven by an increase in interest income on loans and other interest and dividend income. The company's loan portfolio expansion and improved investment activities contributed to this positive performance. However, the decline in net interest income and the rise in interest expense on deposits present challenges that need to be addressed. Overall, Princeton Bancorp's financial performance in the latest quarter reflects its ability to generate revenue growth, but also highlights areas for improvement.

Source documents

Form 10-Q  filed on Nov 13, 2023
6 pages scanned

Reference data

Company financials Q3 revenue 19.2M
Analyst estimates Q3 EPS beat by 9.00%
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