PRINCETON, IL
President Tony J. Sorcic stated, "Princeton National Bancorp,
Inc. is proud to report net income rose 46.3% to $2.090 million in
the first quarter of 2008, compared to $1.429 million in the first
quarter 2007. Fully diluted earnings per share of $.63 represent an
increase of 50.0% from $.42 in the first quarter of 2007. The
return on average equity for the first quarter of 2008 improved
38.9% to 12.22% from 8.80% for the same period in 2007."
Mr. Sorcic concluded, "The Company also experienced a
significant increase in net interest income. While many financial
institutions were faced with a shrinking net interest margin due to
the prime rate decreases, Princeton National Bancorp, Inc.'s net
interest margin (tax equivalent) grew to 3.39% in the first quarter
of 2008 from 3.11% in the first quarter of 2007. Based on the
current level of assets, this equates to an increase in net
(annualized pre-tax) interest income of $2.7 million. The net
interest income for the quarter was $7.454 million, compared to
$6.392 million in the first quarter of 2007."
There was also an increase in non-interest income for the first
quarter of 2008, $3.153 million versus $2.645 million for the
quarter ending March 31, 2007. When comparing the two quarters, the
majority of the increase was in the following categories: trust and
farm management fees, service charges on deposit accounts, gains on
sales of securities available for sale and mortgage banking income.
The Company's non-interest income has equaled or exceeded 1% of
average assets for 31 consecutive quarters. Although non-interest
expense increased to $7,560,000 in the first quarter of 2008, from
$7,272,000 in the first quarter of 2007, as a percentage of average
assets non-interest expense decreased from 2.87% to 2.83% over the
same timeframe. This is the lowest level since 1991.
Princeton National Bancorp, Inc. experienced a $7.1 million
increase in total loans as of March 31, 2008 in comparison to
December 31, 2007 and a $73.0 million increase compared to March
31, 2007. The loan to asset ratio improved to 67.1% at March 31,
2008 compared to 63.6% one year earlier. The improved asset mix of
the balance sheet added to the outstanding earnings results. The
non-performing loans represent 1.93% of the total loan portfolio as
of March 31, 2008.
The Company ended the first quarter of 2008 with total core
deposits and repurchase agreements of $953.6 million, a $28.0
million increase from year-end 2007 and a $40.0 million increase
from March 31, 2007.
At the April 2008 Board of Directors' meeting, the Directors
voted to extend the expiration date of the current 50,000 Share
Stock Repurchase Plan for an additional six months. There are
currently 30,000 shares remaining under this plan. Under the plan,
the Company will repurchase shares of its outstanding common stock
in the open market or in private transactions over the next six
months. Purchases will be dependent upon market conditions and the
availability of shares. The Company currently has 3,299,490
outstanding shares of common stock. Since 1997, the Company has
repurchased a total of 1,354,271 shares through stock repurchase
programs.
The Board of Directors of Princeton National Bancorp, Inc.
declared a dividend of $.28 payable May 27, 2008 to those
shareholders of record as of May 9, 2008. This represents an
increase of 3.7% from the May 2007 dividend and is the 93rd
consecutive dividend.
The stock price closed at $29.73 on March 31, 2008, compared to
$24.25 on December 31, 2007 and $30.00 on March 31, 2007. The
decrease in stock price from March 2007 is reflective of the
banking industry as a whole. Financial stocks have been negatively
impacted by the poor earnings reports of many institutions, due to
a compressed net interest margin, loan charge-offs and the
sub-prime loan issue. As stated in previous communications, the
Company has no sub-prime loans in its loan portfolio or as
underlying collateral in its investment portfolio.
For detailed financial information, please refer to the attached
March 31, 2008 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 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 $1.087 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.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data) March 31,
2008 December 31,
(unaudited) 2007
------------ ------------
ASSETS
Cash and due from banks $ 24,115 $ 25,801
Interest-bearing deposits with financial
institutions 570 1,803
Federal funds sold 745 0
------------ ------------
Total cash and cash equivalents 25,430 27,604
Loans held for sale, at lower of cost or market 3,178 928
Investment securities available-for-sale, at
fair value 220,022 218,095
Investment securities held-to-maturity, at
amortized cost 16,168 14,578
------------ ------------
Total investment securities 236,190 232,673
Loans, net of unearned interest 729,717 722,647
Allowance for loan losses (3,134) (3,248)
------------ ------------
Net loans 726,583 719,399
Premises and equipment, net 30,466 30,801
Land held for sale, at lower of cost or market 1,344 1,344
Bank-owned life insurance 21,054 22,461
Interest receivable 8,267 10,876
Goodwill, net of accumulated amortization 24,521 24,521
Intangible assets, net of accumulated
amortization 4,870 5,090
Other real estate owned 605 833
Other assets 4,448 4,172
------------ ------------
TOTAL ASSETS $ 1,086,956 $ 1,080,702
============ ============
--------------------------------------------------------------------------
LIABILITIES
Demand deposits $ 105,823 $ 102,452
Interest-bearing demand deposits 254,336 241,749
Savings deposits 62,986 58,401
Time deposits 495,993 488,805
------------ ------------
Total deposits 919,138 891,407
Customer repurchase agreements 34,482 34,217
Advances from the Federal Home Loan Bank 10,986 6,984
Interest-bearing demand notes issued to the
U.S. Treasury 551 1,838
Federal funds purchased 0 26,500
Trust Preferred securities 25,000 25,000
Note payable 14,550 14,550
------------ ------------
Total borrowings 85,569 109,089
Other liabilities 12,048 11,599
------------ ------------
Total liabilities 1,016,755 1,012,095
------------ ------------
STOCKHOLDERS' EQUITY
Common stock 22,391 22,391
Surplus 18,306 18,275
Retained earnings 51,864 51,279
Accumulated other comprehensive income (loss),
net of tax 1,574 344
Less: Treasury stock (23,934) (23,682)
------------ ------------
Total stockholders' equity 70,201 68,607
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,086,956 $ 1,080,702
============ ============
CAPITAL STATISTICS (UNAUDITED)
YTD average equity to average assets 6.39% 6.33%
Tier 1 leverage capital ratio 6.12% 6.16%
Tier 1 risk-based capital ratio 7.96% 8.00%
Total risk-based capital ratio 8.35% 8.41%
Book value per share $ 21.28 $ 20.66
Closing market price per share $ 29.73 $ 24.25
End of period shares outstanding 3,299,490 3,308,447
End of period treasury shares outstanding 1,178,805 1,169,848
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share data)
THREE MONTHS THREE MONTHS
REVISED ENDED ENDED
Mar. 31, Mar. 31,
2008 2007
(unaudited) (unaudited)
------------ ------------
INTEREST INCOME
Interest and fees on loans $ 12,350 $ 11,607
Interest and dividends on investment securities 2,679 3,013
Interest on federal funds sold 25 147
Interest on interest-bearing time deposits in
other banks 12 50
------------ ------------
Total Interest Income 15,066 14,817
------------ ------------
INTEREST EXPENSE
Interest on deposits 6,674 7,478
Interest on borrowings 938 947
------------ ------------
Total Interest Expense 7,612 8,425
------------ ------------
Net interest income 7,454 6,392
Provision for loan losses 368 185
------------ ------------
Net interest income after provision 7,086 6,207
------------ ------------
NON-INTEREST INCOME
Trust & farm management fees 476 414
Service charges on deposit accounts 1,092 990
Other service charges 457 461
Gain on sales of securities available-for-sale 276 47
Gain on sale of loans 0 0
Brokerage fee income 219 203
Mortgage banking income 348 272
Bank-owned life insurance 215 196
Other operating income 70 62
------------ ------------
Total Non-Interest Income 3,153 2,645
------------ ------------
NON-INTEREST EXPENSE
Salaries and employee benefits 4,398 4,180
Occupancy 679 602
Equipment expense 718 779
Federal insurance assessments 84 85
Intangible assets amortization 179 188
Data processing 277 272
Advertising 168 173
Other operating expense 1,057 994
------------ ------------
Total Non-Interest Expense 7,560 7,272
------------ ------------
Income before income taxes 2,679 1,579
Income tax expense 589 150
------------ ------------
Net income $ 2,090 $ 1,429
============ ============
Net income per share:
BASIC $ 0.63 $ 0.43
DILUTED $ 0.63 $ 0.42
Basic weighted average shares outstanding 3,304,063 3,347,099
Diluted weighted average shares outstanding 3,315,210 3,363,959
PERFORMANCE RATIOS (annualized)
Return on average assets 0.78% 0.57%
Return on average equity 12.22% 8.80%
Net interest margin (tax-equivalent) 3.39% 3.11%
Efficiency ratio (tax-equivalent) 67.66% 75.42%
ASSET QUALITY
Net loan charge-offs $ 481 $ 101
Total non-performing loans $ 14,110 $ 4,909
Non-performing loans as a % of total loans 1.93% 0.75%
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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