PRINCETON, IL
Tony J. Sorcic, President & CEO, stated, "The Company is
very pleased to announce the outstanding results generated in the
fourth quarter of 2007. Net income was $2,048,000, fully diluted
earnings per share totaled $.62, and the return on average equity
was 12.18%. This is an improvement of 17.7%, 19.2% and 14.4%,
respectively, from the third quarter of 2007."
Sorcic continued, "Net income for 2007 was $6,770,000, a 4.4%
increase from 2006 net income of $6,488,000. Significant progress
was made during 2007, as net income of $1,429,000 in the first
quarter increased 8.7% to $1,553,000 in the second quarter, 12.1%
to $1,740,000 in the third quarter, and 17.7% to $2,048,000 in the
fourth quarter. In comparing the fourth quarter of 2007 to the
first quarter, there was a 43.3% increase in net income. The Bank's
plan to increase the net interest margin was executed, with the
outcome being a steady improvement throughout 2007. Net interest
income for 2007 was $27,054,000 compared to $25,896,000 in
2006."
Sorcic continued, "There was also consistent improvement in the
diluted earnings per share during the year. Diluted earnings per
share for 2007 totaled $2.03, an improvement of 6.3% from $1.91 in
2006. The return on average equity for 2007 increased to 10.32%
from 10.07% in 2006."
Princeton National Bancorp, Inc. also reached a record level of
total assets at $1.081 billion as of December 31, 2007. This
represents growth of 4.7% when compared to total assets at December
31, 2006 of $1.032 billion. The Company's loan portfolio grew $93.2
million over the last twelve months. Growth was experienced in
existing offices, as well as from the acquisition of the Plainfield
office of HomeStar Bank, Manteno, Illinois which was completed in
February 2007. The Company's loan portfolio continues to be
high-quality and had minimal loan charge-offs during the year.
Non-performing loans represent 1.03% of the total loan portfolio at
December 31, 2007. The funding of loans was achieved primarily
through maturing securities in the investment portfolio and
secondarily through deposit growth. This resulted in the loan to
asset ratio improving to 66.9% at December 31, 2007 from 61.0% one
year earlier.
Non-interest income increased $1,053,000 in 2007 to $11,298,000
compared to $10,245,000 in 2006. Growth was generated in service
charges on deposits ($196,000), brokerage fee income ($184,000),
mortgage banking income ($148,000), other service charges
(184,000), and income from bank owned life insurance ($46,000). The
Company's non-interest income exceeded 1% of average assets for the
year 2007. Non-interest expense, although slightly higher than
2006, represents 2.85% of total assets compared to 2.95% in 2006
and was below budgeted expectations.
The Company ended 2007 with total deposits and repurchase
agreements of $925.6 million, an increase from $913.2 million at
year-end 2006.
During 2007, the Company purchased 50,000 shares under the Stock
Repurchase Plans at an average price of $29.19 per share. Since
1997, the Company has repurchased 1,344,271 shares of common stock
through stock repurchase programs.
The stock price closed the year at $24.25, a decrease from the
December 31, 2006 stock price of $32.55. The decrease in the PNBC
stock price is reflective of the banking industry as a whole. The
Subsidiary Bank does not have sub-prime loans in its loan portfolio
or as underlying collateral within the investment portfolio.
For additional financial information, please refer to the
attached December 31, 2007 financial statements for Princeton
National Bancorp, Inc. You may also visit our website at
www.pnbc-inc.com to obtain financial information, as well as press
releases, stock prices and information on the Company.
The Company has set its annual meeting date for April 29, 2008
at 10:00 A.M. at The Galleria Convention Center in Princeton,
Illinois. The record date for the Annual Meeting will be February
29, 2008.
The Company offers shareholders the opportunity to participate
in the Princeton National Bancorp, Inc. Dividend Reinvestment and
Stock Purchase Plan. The Company also offers electronic direct
deposit of dividends. To obtain information about the stock
purchase plan or electronic direct deposit, please contact us at
815-875-4445, extension 650.
Princeton National Bancorp, Inc. is the parent holding company
of Citizens First National Bank, a $1.081 billion community bank
with strategic locations in 8 counties in northern Illinois. The
Company is well-positioned in the high-growth counties of Will,
Kendall, Kane, Grundy, DeKalb and LaSalle plus Bureau and Marshall.
Communities include: Aurora, DePue, Genoa, Hampshire, Henry,
Huntley, Millbrook, Minooka, Newark, Oglesby, Peru, Plainfield,
Plano, Princeton, Sandwich, Somonauk and Spring Valley. The
Subsidiary Bank, Citizens First National Bank, provides financial
services to meet the needs of individuals, businesses and public
entities.
This press release contains certain forward-looking statements,
including certain plans, expectations, goals, and projections,
which are subject to numerous assumptions, risks, and
uncertainties. These forward-looking statements are identified by
the use of words such as 1) believes, 2) anticipates, 3) estimates,
4) expects, 5) projects or similar words. Actual results could
differ materially from those contained or implied by such
statements for a variety of factors including: changes in economic
conditions; movements in interest rates; competitive pressures on
product pricing and services; success and timing of business
strategies; the nature, extent, and timing of governmental actions
and reforms; and extended disruption of vital infrastructure. The
figures included in this press release are unaudited and may vary
from the audited results.
Princeton National Bancorp, Inc.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
December 31,
2007 December 31,
REVISED (unaudited) 2006
----------- -----------
ASSETS
Cash and due from banks $ 25,801 $ 33,882
Interest-bearing deposits with financial
institutions 1,803 103
Federal funds sold 0 5,200
----------- -----------
Total cash and cash equivalents 27,604 39,185
Loans held for sale, at lower of cost or market 928 4,512
Investment securities available-for-sale, at fair
value 218,095 252,467
Investment securities held-to-maturity, at
amortized cost 14,578 15,449
----------- -----------
Total investment securities 232,673 267,916
Loans, net of unearned interest 722,647 629,472
Allowance for loan losses (3,248) (3,053)
----------- -----------
Net loans 719,399 626,419
Premises and equipment, net 30,801 28,670
Land held for sale, at lower of cost or market 1,344 0
Bank-owned life insurance 22,461 21,470
Interest receivable 10,876 11,139
Goodwill, net of accumulated amortization 24,521 23,029
Intangible assets, net of accumulated
amortization 5,090 5,921
Other real estate owned 833 0
Other assets 4,172 3,698
----------- -----------
TOTAL ASSETS $ 1,080,702 $ 1,031,959
=========== ===========
LIABILITIES
Demand deposits $ 102,452 $ 107,834
Interest-bearing demand deposits 241,749 231,953
Savings deposits 58,401 66,060
Time deposits 488,805 476,052
----------- -----------
Total deposits 891,407 881,899
Customer repurchase agreements 34,217 31,344
Advances from the Federal Home Loan Bank 6,984 6,970
Interest-bearing demand notes issued to the U.S.
Treasury 1,838 2,333
Federal funds purchased 26,500 0
Trust Preferred securities 25,000 25,000
Note payable 14,550 8,500
----------- -----------
Total borrowings 109,089 74,147
Other liabilities 11,864 10,558
----------- -----------
Total liabilities 1,012,360 966,604
----------- -----------
STOCKHOLDERS' EQUITY
Common stock 22,391 22,391
Surplus 18,275 18,158
Retained earnings 51,279 48,109
Accumulated other comprehensive income (loss),
net of tax 79 (960)
Less: Treasury stock (23,682) (22,343)
----------- -----------
Total stockholders' equity 68,342 65,355
----------- -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,080,702 $ 1,031,959
=========== ===========
CAPITAL STATISTICS (UNAUDITED)
YTD average equity to average assets 6.33% 6.70%
Tier 1 leverage capital ratio 6.16% 6.33%
Tier 1 risk-based capital ratio 8.00% 8.75%
Total risk-based capital ratio 8.41% 9.18%
Book value per share $ 20.66 $ 19.50
Closing market price per share $ 24.25 $ 32.55
End of period shares outstanding 3,308,447 3,351,410
End of period treasury shares outstanding 1,169,848 1,126,885
Princeton National Bancorp, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands,
except share data)
THREE THREE FOR THE FOR THE
MONTHS MONTHS YEAR YEAR
REVISED ENDED ENDED ENDED ENDED
December December December December
31, 2007 31, 2006 31, 2007 31, 2006
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- --------- -----------
INTEREST INCOME
Interest and fees on
loans $ 13,102 $ 11,365 $ 49,982 $ 41,923
Interest and dividends on
investment securities 2,652 3,085 11,124 10,990
Interest on federal funds
sold 86 142 332 499
Interest on
interest-bearing time
deposits in other banks 37 37 121 114
----------- ----------- --------- -----------
Total Interest
Income 15,877 14,629 61,559 53,526
----------- ----------- --------- -----------
INTEREST EXPENSE
Interest on deposits 7,547 7,107 30,324 23,843
Interest on borrowings 1,105 997 4,181 3,787
----------- ----------- --------- -----------
Total Interest
Expense 8,652 8,104 34,505 27,630
----------- ----------- --------- -----------
Net interest income 7,225 6,525 27,054 25,896
Provision for loan losses 90 110 640 285
----------- ----------- --------- -----------
Net interest income after
provision 7,135 6,415 26,414 25,611
----------- ----------- --------- -----------
NON-INTEREST INCOME
Trust & farm management
fees 382 309 1,507 1,467
Service charges on
deposit accounts 1,173 1,069 4,431 4,235
Other service charges 473 445 1,966 1,782
Gain on sales of
securities
available-for-sale 183 92 541 250
Gain on sale of loans 0 0 0 90
Brokerage fee income 279 174 920 736
Mortgage banking income 237 220 903 755
Bank-owned life insurance 208 188 816 770
Other operating income 61 35 214 160
----------- ----------- --------- -----------
Total Non-Interest
Income 2,996 2,532 11,298 10,245
----------- ----------- --------- -----------
NON-INTEREST EXPENSE
Salaries and employee
benefits 4,300 3,940 16,874 15,884
Occupancy 623 527 2,393 1,985
Equipment expense 788 795 3,158 2,933
Federal insurance
assessments 83 78 338 313
Intangible assets
amortization 176 163 704 651
Data processing 304 251 1,101 1,032
Advertising 183 207 722 841
Other operating expense 1,055 1,171 4,275 4,696
----------- ----------- --------- -----------
Total Non-Interest
Expense 7,512 7,132 29,565 28,335
----------- ----------- --------- -----------
Income before income
taxes 2,619 1,815 8,147 7,521
Income tax expense 571 165 1,377 1,033
----------- ----------- --------- -----------
Net income $ 2,048 $ 1,650 $ 6,770 $ 6,488
=========== =========== ========= ===========
Net income per share:
BASIC $ 0.62 $ 0.49 $ 2.04 $ 1.93
DILUTED $ 0.62 $ 0.49 $ 2.03 $ 1.91
Basic weighted average
shares outstanding 3,310,487 3,360,033 3,326,467 3,369,567
Diluted weighted average
shares outstanding 3,316,573 3,379,394 3,334,507 3,389,765
PERFORMANCE RATIOS
(annualized)
Return on average assets 0.77% 0.65% 0.65% 0.68%
Return on average equity 12.18% 9.92% 10.32% 10.07%
Net interest margin
(tax-equivalent) 3.29% 3.16% 3.20% 3.33%
Efficiency ratio
(tax-equivalent) 69.69% 73.64% 72.72% 73.36%
ASSET QUALITY
Net loan charge-offs $ 64 $ 221 $ 445 $ 422
Total non-performing
loans $ 7,434 $ 3,926 $ 7,434 $ 3,926
Non-performing loans as a
% of total loans 1.03% 0.62% 1.03% 0.62%
Inquiries should be directed to: Lou Ann Birkey Vice President -
Investor Relations Princeton National Bancorp, Inc. (815) 875-4444
E-Mail address: Email Contact
Princeton National Bancorp (CE) (USOTC:PNBC)
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