Princeton Bancorp, Inc. (NASDAQ: BPRN)

Princeton Bancorp, Inc. is a Pennsylvania corporation formed in 2022 to serve as the holding company for The Bank of Princeton. The Bank provides full service banking including personal and business lending and deposit services. It operates through 33 branches located within an approximate 50 mile radius of Princeton New Jersey covering parts of Burlington Camden Gloucester Hunterdon Mercer Middlesex Ocean and Somerset Counties in New Jersey and portions of Philadelphia Montgomery and Bucks Counties in Pennsylvania. The Bank also has two retail branches and conducts loan origination in select areas of the New York City metropolitan area. After acquiring Noah Bank in May 2023 and Cornerstone Bank in August 2024 the combined institution serves a broader market across southern New Jersey Philadelphia and New York regions. As of December 31 2025 the company employed 240 full time equivalent employees. The Bank's product suite includes checking accounts savings accounts money market accounts certificates of deposit and various loan categories designed to meet the financing needs of individuals and businesses.

The company generates revenue primarily from interest income on its loan portfolio and investment securities. Interest earnings come from commercial real estate loans commercial and industrial loans construction loans residential first lien mortgage loans and home equity and consumer loans. Additionally the firm earns fee income from deposit related services such as ATM usage money orders wire transfers and other transaction fees. The Bank also generates income from the sale or servicing of loans and from gains on investment securities. Overall net interest income forms the core of its revenue stream while non interest income provides a supplemental contribution. The bank's interest rate environment and the volume of loans outstanding directly influence the level of interest income recorded each period.

The company operates through the following segments: commercial real estate commercial and industrial construction residential first lien and home equity consumer. These segments are used for internal performance tracking and capital allocation decisions.

• The commercial real estate segment provides loans secured by office buildings retail centers multifamily properties and other commercial real estate assets. As of December 31 2025 this segment accounted for approximately 1.34 billion dollars or 73.9 percent of the total loan portfolio with an average loan size of about 1.8 million dollars. Terms generally extend up to seven years with loan to value ratios not exceeding 75 percent and many loans feature balloon payments and amortization periods up to twenty five years.

• The commercial and industrial segment offers working capital and term loans to small and mid sized businesses in the company's market area. At December 31 2025 this segment totaled 76.6 million dollars or 4.2 percent of the loan portfolio. Loans may have fixed or adjustable rates and typically have maturities of three years or less though some extend to fifteen years. Underwriting emphasizes the borrower's cash flow and often requires personal guarantees and additional collateral such as real estate.

• The construction segment finances land acquisition development and building projects for residential and commercial purposes. As of December 31 2025 construction loans amounted to 209.5 million dollars or 11.5 percent of the total loan portfolio with an average loan size of approximately 9.9 million dollars. These loans often have floating rates tied to an index plus a margin and may include interest reserves to cover payments during the construction phase.

• The residential first lien segment focuses on prime mortgage loans for one to four family homes. At December 31 2025 residential first lien mortgage loans totaled 163.8 million dollars representing 9.0 percent of the loan portfolio. The bank originates and retains non conforming loans while referring conforming loans to third parties for a fee.

• The home equity and consumer segment provides home equity lines of credit and other consumer loans. At December 31 2025 this segment totaled 25.4 million dollars or 1.4 percent of the loan portfolio. These products are typically generated through direct marketing at branch locations referrals from real estate brokers and targeted direct mail or email campaigns.

The bank operates in a highly competitive environment facing rivalry from other banks savings institutions mortgage companies and fintech firms. Many competitors possess greater financial resources broader branch networks and stronger brand recognition. Princeton Bancorp differentiates itself by emphasizing relationship based banking delivering personalized service and maintaining a strong local presence in its core market. The company also invests in technology partnerships to improve its digital offerings while keeping costs disciplined. Its recent acquisitions of Noah Bank and Cornerstone Bank have expanded its footprint and added scale without sacrificing the community focus that underpins its competitive edge. The bank maintains solid capital ratios that exceed regulatory minimums supporting its ability to withstand economic downturns.

The company serves a diverse customer base that includes individual consumers seeking personal loans mortgages and deposit products as well as small and mid sized businesses requiring working capital term loans and commercial real estate financing. Real estate developers and investors also represent a significant portion of the borrower base particularly for construction and multifamily projects. Deposit customers range from retail households to municipal entities and non profit organizations that utilize the bank's checking savings and time deposit accounts. The bank also receives referrals from local professionals such as attorneys and accountants who trust its expertise in handling fiduciary and escrow arrangements.