from the fourth quarter of 2022. The increase was due primarily to increases in salaries and employee benefits and occupancy and equipment expenses of $830 thousand and $436 thousand,
respectively, over the prior-year period which were associated with the Noah acquisition in 2023. For the year ended December 31, 2023, non-interest expense was $48.7 million, compared to
$38.5 million for the same period in 2022. The increase was primarily due to merger-related expenses of $5.6 million during 2023 as well as increases in salaries and employee benefits of $2.9 million, occupancy and equipment of
$1.2 million and data processing and communications of $538 thousand over the same period in 2022.
For the three-month period ended
December 31, 2023, the Company recorded an income tax expense of $1.0 million, resulting in an effective tax rate of 15.9%, compared to an income tax expense of $1.5 million resulting in an effective tax rate of 16.6% for the
three-month period ended September 30, 2023 and compared to an income tax expense of $2.2 million resulting in an effective tax rate of 23.5% for the three-month period ended December 31, 2022. For the year ending December 31,
2023, income tax expense was $4.6 million resulting in an effective tax rate of 15.1% compared to income tax expense of $7.6 million and an effective tax rate of 22.2% for the year ended December 30, 2022. This decrease was due to the
$9.7 million non-taxable bargain purchase gain from the Noah Bank acquisition, partially offset by $325 thousand of merger-related expenses that were not
tax-deductible.
About Princeton Bancorp, Inc. and The Bank of Princeton
Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial
bank with 22 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Palisades
Park, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal
Deposit Insurance Corporation (“FDIC”). On January 18, 2024, the Company announced that it has entered into a definitive agreement and plan of merger with Cornerstone Financial Corporation (“Cornerstone”), the
parent company of Cornerstone Bank, headquartered in Mount Laurel, New Jersey, pursuant to which the Company will acquire Cornerstone in a transaction that is expected to close in the second or third quarter of 2024 (the “Transaction”).
Forward-Looking Statements
The Company may
from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission, in its reports to stockholders and in other communications by
the Company (including this press release), which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of
1934, as amended.
These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives,
expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those
anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in
financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in
4