Princeton Bancorp in Princeton, N.J., will recognize a $9.9 million impairment charge tied to two delinquent commercial real estate loans where it is a participant.
The company disclosed in a regulatory filing that, at March 31, it $25.3 million of its nonperforming assets were tied to the CRE credits. Princeton said the lead lender for the participation is marketing the underlying collateral for potential sale.
The decision to take the impairment charge reflects recent bids received for the collateral.
The impairment charge is expected to reduce net income by about $6 million after taxes.
Despite the delinquency, Princeton said occupancy levels at both CRE properties remain strong enough to support ongoing operations and general upkeep, suggesting potential value for prospective buyers.