Princeton National Bancorp, Inc. (NASDAQ: PNBC) reported 2008
year-to-date fully diluted earnings per share increased 34.8% to
$1.90 from $1.41 in the same period in 2007. Net income for the
first nine months of 2008 increased 33.4% to $6,298,000 from
$4,723,000 in 2007.
"Princeton National Bancorp, Inc. has consistently generated
positive results during the first nine months of 2008," said Tony
J. Sorcic, President and Chief Executive Officer. "The net interest
margin increased 9.2% to 3.46% compared to 3.17% for the nine
months ending September 30, 2007. As a result, year-to-date net
interest income of $23,443,000 represents an increase of 18.2%.
Based on the September 30th level of interest-earning assets
compared to December 31, 2007, the improvement in the net interest
margin and growth in interest earning assets equates to an increase
in net (annualized pre-tax) interest income of $3,900,000.
Management is very pleased with the improvement which has been
generated."
Mr. Sorcic continued, "Non-interest income of $8,755,000 for the
first nine months of 2008 represents a 5.5% increase from the first
nine months of 2007. One area that has contributed to the
consistent results in non-interest income is mortgage banking
income. During a time when many financial institutions are
experiencing significant declines in their mortgage banking income,
the Company experienced a 32.0% increase in 2008 and has exceeded
its year-end volume goal. Our fixed rate mortgage loans have always
been and will continue to be written to conforming standards of the
secondary market."
Mr. Sorcic concluded, "Citizens First National Bank, the
subsidiary bank, has been successfully serving its communities
since 1865 in good times and challenging times. Princeton National
Bancorp, Inc. and Citizens First National Bank are very strong,
stable organizations with long and prosperous track records."
As a percentage of average assets, non-interest expense for the
nine months ending September 30, 2008 was 2.77%, the lowest it has
been since the late 1980s. Operating expenses are closely monitored
and well controlled as emphasis is continually placed on improving
efficiencies.
Significant improvement has been seen in the return on average
equity in 2008. The return on average equity for the first nine
months is 12.17%, compared to 9.67% for the same nine month period
in 2007. Consistent results have been achieved in 2008 as the
return on average equity was 12.22% in the first quarter, 11.71% in
the second quarter and 12.54% in the third quarter.
Net income for the third quarter of 2008 increased 8.3% from the
second quarter of 2008 to $2,187,000 and 25.7% from the third
quarter of 2007. Fully diluted earnings per share for the third
quarter of 2008 were $.66, compared to $.61 in the second quarter
of 2008 and $.52 in the third quarter of 2007.
Non-interest income for the quarter was $2,851,000. This
represents a 3.6% increase from the second quarter and a 2.9%
decrease from the third quarter of 2007. The Company's non-interest
income has equaled or exceeded 1% of average assets for 33
consecutive quarters. Non-interest income growth continues to be an
integral component of the Company's success.
The net interest margin for the third quarter was 3.50%, an
improvement of 8.4% from the third quarter of 2007, and 10.4% from
the recent low of 3.17% in the first quarter of 2007. Net-interest
income for the quarter was $8,172,000, a significant improvement
from $7,817,000 in the second quarter of 2008 and $6,850,000 in the
same quarter in 2007.
Operating expenses as a percentage of average assets for the
third quarter of 2008 were 2.72%, comparing favorably to 2.77% in
the second quarter of 2008 and 2.85% in the third quarter of
2007.
Assets at September 30, 2008 were $1.124 billion, representing
growth of $42.9 million, or 4.0%, since December 31, 2007. During
the first nine months of 2008, total loans increased $39.5 million,
ending the quarter at $762.1 million. The loan-to-asset ratio
increased to 67.83% at September 30, 2008 from 66.87% at December
31, 2007. The investment portfolio has increased $13.1 million
since year-end 2007. Non-performing loans total $16.4 million and
represent 2.2% of the total loan portfolio at September 30, 2008.
However, net loan charge-offs equaled $103,000 or on an annualized
level of just 0.06% of the loan portfolio. The Subsidiary Bank has
no sub-prime loans in the loan portfolio or as underlying
collateral in the investment portfolio and the Subsidiary Bank has
maintained its high quality underwriting standards.
The Company ended the third quarter of 2008 with total deposits
and repurchase agreements of $971.9 million, a $46.2 million
increase from $925.6 million at December 31, 2007. The increase
occurred primarily in checking, money market accounts and time
deposits.
The Board of Directors of Princeton National Bancorp, Inc.
approved a 50,000 share, or approximately 1.50%, stock repurchase
program on October 27, 2008. Under the plan, the Company will
repurchase up to 50,000 shares of its outstanding shares of common
stock in the open market or in private transactions over the next
twelve months. Purchases will be dependent upon market conditions
and the availability of shares. The Company currently has 3,296,669
outstanding shares of common stock. Since 1997, the Company has
repurchased a total of 1,364,271 shares through stock repurchase
programs.
Financial stocks, in general, continue to be negatively impacted
by the poor earnings reports, due to compressed net interest
margins, loan charge-offs, and sub-prime loan issues. Princeton
National Bancorp, Inc.'s stock price closed at $25.01 on September
30, 2008, compared to $24.25 on December 31, 2007 and $26.18 on
September 30, 2007. The Company's Directors and Management are very
pleased with the stable stock performance during this challenging
environment.
Global and national economic issues have negatively impacted the
banking industry; however, parts of the economy, such as
agriculture in north central Illinois, are very strong. Princeton
National Bancorp, Inc. has no sub-prime loans in its loan portfolio
or as underlying collateral in the investment portfolio and does
not own Fannie Mae or Freddie Mac preferred stock. Management is
focused on building franchise value through the execution of the
Company's strategy. The staff of the Subsidiary Bank is committed
to being the best community bank in each of the markets served.
Additional financial information is available at
www.pnbc-inc.com.
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 $1.124 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) September 30,
2008 December 31,
(unaudited) 2007
-------------- -----------
ASSETS
Cash and due from banks $ 17,289 $ 25,801
Interest-bearing deposits with financial
institutions 100 1,803
Federal funds sold 800 0
-------------- -----------
Total cash and cash equivalents 18,189 27,604
Loans held for sale, at lower of cost or
market 2,654 928
Investment securities available-for-sale, at
fair value 230,495 218,095
Investment securities held-to-maturity, at
amortized cost 15,296 14,578
-------------- -----------
Total investment securities 245,791 232,673
Loans, net of unearned interest 762,109 722,647
Allowance for loan losses (3,842) (3,248)
-------------- -----------
Net loans 758,267 719,399
Premises and equipment, net 30,290 30,801
Land held for sale, at lower of cost or market 1,344 1,344
Bank-owned life insurance 21,478 22,461
Interest receivable 10,253 10,876
Goodwill, net of accumulated amortization 24,521 24,521
Intangible assets, net of accumulated
amortization 4,428 5,090
Other real estate owned 1,330 833
Other assets 5,027 4,172
-------------- -----------
TOTAL ASSETS $ 1,123,572 $ 1,080,702
============== ===========
LIABILITIES
Demand deposits $ 97,430 $ 102,452
Interest-bearing demand deposits 260,056 241,749
Savings deposits 59,871 58,401
Time deposits 520,089 488,805
-------------- -----------
Total deposits 937,446 891,407
Customer repurchase agreements 34,420 34,217
Advances from the Federal Home Loan Bank 30,490 6,984
Interest-bearing demand notes issued to the
U.S. Treasury 1,805 1,838
Federal funds purchased 0 26,500
Trust Preferred securities 25,000 25,000
Note payable 16,050 14,550
-------------- -----------
Total borrowings 107,765 109,089
Other liabilities 9,080 11,599
-------------- -----------
Total liabilities 1,054,291 1,012,095
-------------- -----------
STOCKHOLDERS' EQUITY
Common stock 22,391 22,391
Surplus 18,391 18,275
Retained earnings 54,225 51,279
Accumulated other comprehensive income (loss),
net of tax (1,631) 344
Less: Treasury stock (24,095) (23,682)
-------------- -----------
Total stockholders' equity 69,281 68,607
-------------- -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,123,572 $ 1,080,702
============== ===========
CAPITAL STATISTICS (UNAUDITED)
YTD average equity to average assets 6.33% 6.33%
Tier 1 leverage capital ratio 6.14% 6.16%
Tier 1 risk-based capital ratio 7.98% 8.00%
Total risk-based capital ratio 8.44% 8.41%
Book value per share $ 21.02 $ 20.66
Closing market price per share $ 25.01 $ 24.25
End of period shares outstanding 3,296,669 3,308,447
End of period treasury shares outstanding 1,181,626 1,169,848
Princeton National Bancorp, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share data)
THREE THREE
MONTHS MONTHS NINE MONTHS NINE MONTHS
ENDED ENDED ENDED ENDED
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
INTEREST INCOME
Interest and fees on
loans $ 11,977 $ 12,980 $ 36,129 $ 36,880
Interest and dividends
on investment
securities 2,772 2,619 8,110 8,472
Interest on federal
funds sold 37 24 66 246
Interest on
interest-bearing time
deposits in other
banks 26 9 46 85
----------- ----------- ----------- -----------
Total Interest
Income 14,812 15,632 44,351 45,683
----------- ----------- ----------- -----------
INTEREST EXPENSE
Interest on deposits 5,771 7,677 18,250 22,777
Interest on borrowings 869 1,105 2,658 3,077
----------- ----------- ----------- -----------
Total Interest
Expense 6,640 8,782 20,908 25,854
----------- ----------- ----------- -----------
Net interest income 8,172 6,850 23,443 19,829
Provision for loan
losses 550 250 1,368 550
----------- ----------- ----------- -----------
Net interest income
after provision 7,622 6,600 22,075 19,279
----------- ----------- ----------- -----------
NON-INTEREST INCOME
Trust & farm management
fees 309 353 1,120 1,124
Service charges on
deposit accounts 1,174 1,174 3,376 3,259
Other service charges 563 535 1,587 1,492
Gain on sales of
securities
available-for-sale 54 149 331 358
Brokerage fee income 249 224 676 641
Mortgage banking income 243 257 879 666
Bank-owned life
insurance 227 203 648 608
Other operating income 32 40 138 154
----------- ----------- ----------- -----------
Total Non-Interest
Income 2,851 2,935 8,755 8,302
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE
Salaries and employee
benefits 4,459 4,257 13,082 12,574
Occupancy 619 569 1,908 1,770
Equipment expense 698 756 2,168 2,371
Federal insurance
assessments 99 84 267 254
Intangible assets
amortization 178 177 535 528
Data processing 272 268 852 797
Advertising 195 188 524 539
Other operating expense 1,108 1,088 3,360 3,219
----------- ----------- ----------- -----------
Total Non-Interest
Expense 7,628 7,387 22,696 22,052
----------- ----------- ----------- -----------
Income before income
taxes 2,845 2,148 8,134 5,529
Income tax expense 658 408 1,836 806
----------- ----------- ----------- -----------
Net income $ 2,187 $ 1,740 $ 6,298 $ 4,723
=========== =========== =========== ===========
Net income per share:
BASIC $ 0.66 $ 0.53 $ 1.91 $ 1.42
DILUTED $ 0.66 $ 0.52 $ 1.90 $ 1.41
Basic weighted average
shares outstanding 3,295,200 3,314,913 3,298,408 3,331,852
Diluted weighted
average shares
outstanding 3,305,195 3,322,292 3,309,560 3,342,689
PERFORMANCE RATIOS
(annualized)
Return on average
assets 0.78% 0.67% 0.77% 0.61%
Return on average
equity 12.54% 10.65% 12.17% 9.67%
Net interest margin
(tax-equivalent) 3.50% 3.23% 3.46% 3.17%
Efficiency ratio
(tax-equivalent) 66.00% 71.45% 67.11% 73.80%
ASSET QUALITY
Net loan charge-offs $ 103 $ 139 $ 774 $ 382
Total non-performing
loans $ 16,383 $ 6,408 $ 16,383 $ 6,408
Non-performing loans as
a % of total loans 2.15% 0.93% 2.15% 0.93%
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)
Historical Stock Chart
From May 2024 to Jun 2024
Princeton National Bancorp (CE) (USOTC:PNBC)
Historical Stock Chart
From Jun 2023 to Jun 2024
