diff --git a/inc/HTTPAuthSession.php b/inc/HTTPAuthSession.php
index e31b2a9d..c2768b55 100644
--- a/inc/HTTPAuthSession.php
+++ b/inc/HTTPAuthSession.php
@@ -368,11 +368,14 @@ class HTTPAuthSession {
       *   - Configuration data will be in $c->authenticate_hook['config'], which might be an array, or whatever is needed.
       */
       $principal = call_user_func( $c->authenticate_hook['call'], $username, $password );
+      if ( $principal !== false && !($principal instanceof Principal) ) {
+        $principal = new Principal('username', $username);
+      }
+
       if ( $principal === false ) {
         $this->SetCache($username, $password, 'fail');
-      } else if (!($principal instanceof Principal) ) {
+      } else {
         $this->SetCache($username, $password, 'pass');
-        $principal = new Principal('username', $username);
       }
 
       return $principal;