Princeton National Bancorp, Inc. (NASDAQ: PNBC), parent company of
Citizens First National Bank ("Subsidiary Bank"), announced second
quarter 2010 net income available to common stockholders of $99,000
or $0.03 per diluted common share ("EPS"), compared to $1.6 million
or $0.48 EPS in the second quarter of 2009.
"Princeton National Bancorp, Inc.'s net interest margin rose to
3.96% in the second quarter of 2010 compared to 3.43% in the second
quarter of 2009. The increase in the net interest margin continues
to be driven by a reduction in the cost of funds, of 90 basis
points year over year (a reduction of $4.6 million in interest
expense)," said President & CEO Thomas D. Ogaard. "During the
quarter, the Subsidiary Bank continued to work with borrowers to
resolve problem loan situations. The net loan losses for the
quarter totaled .70 percent (as a percent of loans, annualized). We
continue to build our loan loss allowance, bringing our level of
reserve to 2.15% of total loans (an increase from .80% one year
ago). Stockholders' equity grew to $77.6 million at June 30, 2010
resulting in a risk based regulatory capital ratio of 12.34%,"
Ogaard added.
The provision for loan losses was $2.7 million for the second
quarter of 2010, compared to $1.5 million in the second quarter of
2009. However, this represents a decrease from $3.9 million
recorded in the first quarter of 2010. Non-performing loans at June
30, 2010 totaled $66.1 million, compared to $58.6 million at
December 31, 2009.
Non-interest income for the second quarter 2010 was $2.0 million
compared to $3.7 million in the second quarter of 2009. This
decrease was largely due to an impairment of mortgage servicing
rights of $588,000 and a decrease of $494,000 in gains recorded
from the sale of available-for-sale securities.
Non-interest expense for the second quarter of 2010 totaled $8.8
million, up slightly from $8.7 million during the same quarter in
2009.
Stockholders' equity as of June 30, 2010 increased to $77.6
million, from $74.7 million at December 31, 2009. In March of 2010,
Princeton National Bancorp, Inc. announced it was suspending
dividends to increase capital at a faster pace than if a portion of
earnings were used to pay dividends to shareholders. At June 30,
2010, Princeton National Bancorp, Inc.'s total risk-based
regulatory capital ratio was 12.34% and Citizens First National
Bank's ratio was 12.33%; both entities ratios exceed the
"well-capitalized" level of ten percent under regulatory
requirements.
The price of PNBC stock closed at $6.15 on June 30, 2010,
compared to $10.81 on December 31, 2009.
Princeton National Bancorp, Inc., through its wholly owned
subsidiary Citizens First National Bank, operates community banking
offices with strategic locations in 8 counties in northern
Illinois. At June 30, 2010, the Company's total assets and total
loans outstanding were $1.13 billion and $741.9 million,
respectively.
The Company offers stockholders the opportunity to participate
in the Princeton National Bancorp, Inc. Dividend Reinvestment and
Stock Purchase Plan, which allows for optional cash contributions
to purchase stock. 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
815-872-6131.
Princeton National Bancorp, Inc. Web Address:
www.pnbc-inc.com
FORWARD-LOOKING INFORMATION:
This press release may contain certain forward-looking
statements, including certain plans, revenues, earnings,
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 "believe,"
"anticipate," "estimate," "expect," "intend," "plan," "project" or
words of similar meaning, or future or conditional verbs such as
"will," "would," "should," "could," or "may."
Forward-looking statements by their very nature are subject to
risks and uncertainties. A number of factors, many of which are
beyond the Company's control, could cause actual conditions, events
or results to differ significantly from those described in the
forward-looking statements. The Company's most recent reports filed
with the Securities and Exchange Commission describe some of these
factors, including certain credit, market, operational, liquidity
and interest rate risks associated with the Company's business and
operations. Other factors described in these reports include
changes in business and economic conditions, competition, fiscal
and monetary policies, disintermediation, legislation including the
Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999,
and mergers and acquisitions.
Forward-looking statements speak only as of the date they are
made. The Company does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the
date forward-looking statements are made.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data) June 30, December 31,
2010 2009
(unaudited)
----------- -----------
ASSETS
Cash and due from banks $ 13,165 $ 15,546
Interest-bearing deposits with financial
institutions 47,280 55,527
----------- -----------
Total cash and cash equivalents 60,445 71,073
Loans held for sale, at lower of cost or market 1,408 3,296
Investment securities available-for-sale, at fair
value 231,295 288,474
Investment securities held-to-maturity, at
amortized cost 14,936 12,793
----------- -----------
Total investment securities 246,231 301,267
Loans, net of unearned interest 741,924 798,074
Allowance for loan losses (15,975) (12,075)
----------- -----------
Net loans 725,949 785,999
Premises and equipment, net 27,496 28,269
Land held for sale, at lower of cost or market 2,354 2,354
Federal Reserve and Federal Home Loan Bank stock 4,498 4,230
Bank-owned life insurance 22,962 22,540
Interest receivable 6,953 9,267
Intangible assets, net of accumulated
amortization 2,938 3,347
Other real estate owned 19,701 17,658
Other assets 9,892 11,430
----------- -----------
TOTAL ASSETS $ 1,130,827 $ 1,260,730
=========== ===========
LIABILITIES
Demand deposits $ 122,810 $ 136,026
Interest-bearing demand deposits 371,188 374,624
Savings deposits 74,658 68,292
Time deposits 399,198 496,597
----------- -----------
Total deposits 967,854 1,075,539
Customer repurchase agreements 33,135 47,327
Advances from the Federal Home Loan Bank 22,500 31,500
Interest-bearing demand notes issued to the U.S.
Treasury 298 1,021
Trust Preferred securities 25,000 25,000
----------- -----------
Total borrowings 80,933 104,848
Other liabilities 4,435 5,683
----------- -----------
Total liabilities 1,053,222 1,186,070
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock 24,972 24,958
Common stock 22,391 22,391
Common stock warrants 150 150
Additional paid-in capital 18,405 18,423
Retained earnings 29,888 29,851
Accumulated other comprehensive income (loss),
net of tax 5,614 2,816
Less: Treasury stock (23,815) (23,929)
----------- -----------
Total stockholders' equity 77,605 74,660
----------- -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,130,827 $ 1,260,730
=========== ===========
CAPITAL STATISTICS (UNAUDITED)
YTD average equity to average assets 6.42% 7.84%
Tier 1 leverage capital ratio 7.76% 7.48%
Tier 1 risk-based capital ratio 11.08% 10.25%
Total risk-based capital ratio 12.34% 11.50%
Common book value per share $ 15.89 $ 15.03
Closing market price per share $ 6.15 $ 10.81
End of period shares outstanding 3,313,003 3,306,369
End of period treasury shares outstanding 1,165,292 1,171,926
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share data)
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
INTEREST INCOME
Interest and fees on
loans $ 9,841 $ 11,167 $ 20,427 $ 22,543
Interest and dividends
on investment
securities 2,492 3,216 5,335 6,147
Interest on
interest-bearing time
deposits in other
banks 40 35 72 51
----------- ----------- ----------- -----------
Total Interest
Income 12,373 14,418 25,834 28,741
----------- ----------- ----------- -----------
INTEREST EXPENSE
Interest on deposits 2,657 5,103 6,030 10,250
Interest on borrowings 531 686 1,136 1,467
----------- ----------- ----------- -----------
Total Interest
Expense 3,188 5,789 7,166 11,717
----------- ----------- ----------- -----------
Net interest income 9,185 8,629 18,668 17,024
Provision for loan
losses 2,650 1,465 6,575 2,635
----------- ----------- ----------- -----------
Net interest income
after provision 6,535 7,164 12,093 14,389
----------- ----------- ----------- -----------
NON-INTEREST INCOME
Trust & farm management
fees 317 394 581 708
Service charges on
deposit accounts 958 977 1,849 1,953
Other service charges 507 486 967 900
Gain on sales of
securities
available-for-sale 80 574 722 761
Brokerage fee income 224 249 413 447
Mortgage servicing
rights impairment (589) 0 (589) (556)
Mortgage banking income 268 787 763 1,485
Bank-owned life
insurance 228 230 457 473
Other operating income 36 34 58 148
----------- ----------- ----------- -----------
Total Non-Interest
Income 2,029 3,731 5,221 6,319
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE
Salaries and employee
benefits 4,452 4,113 8,864 8,693
Occupancy 633 602 1,333 1,311
Equipment expense 747 763 1,514 1,536
Federal insurance
assessments 534 826 1,232 1,523
Intangible assets
amortization 201 208 402 416
Data processing 320 339 632 655
Advertising 206 211 382 408
ORE Expenses, net 387 419 1,122 509
Loan collection
expenses 184 97 388 202
Other operating expense 1,152 1,137 2,233 2,222
----------- ----------- ----------- -----------
Total Non-Interest
Expense 8,816 8,715 18,102 17,475
----------- ----------- ----------- -----------
Income before income
taxes (252) 2,180 (788) 3,233
Income tax expense (672) 282 (1,467) 178
----------- ----------- ----------- -----------
Net income 420 1,898 679 3,055
Preferred stock
dividends 314 317 627 554
Accretion of preferred
stock discount 7 6 14 11
----------- ----------- ----------- -----------
Net income available to
common stockholders $ 99 $ 1,575 $ 38 $ 2,490
=========== =========== =========== ===========
Net income (loss) per
share available to
common stockholders:
BASIC $ 0.03 $ 0.48 $ 0.01 $ 0.75
DILUTED $ 0.03 $ 0.48 $ 0.01 $ 0.75
Basic weighted average
shares outstanding 3,309,746 3,300,161 3,308,262 3,299,119
Diluted weighted
average shares
outstanding 3,309,746 3,300,586 3,308,262 3,299,634
PERFORMANCE RATIOS
(annualized)
Net Income (Loss)
Available to Common
Stockholders to
Average Assets 0.03% 0.51% 0.01% 0.41%
Net Income (Loss)
Available to Common
Stockholders to
Average Equity 0.52% 6.45% 0.10% 5.31%
Net interest margin
(tax-equivalent) 3.96% 3.43% 3.93% 3.48%
Efficiency ratio
(tax-equivalent) 73.85% 66.72% 71.42% 70.86%
ASSET QUALITY
Net loan charge-offs $ 1,356 $ 1,169 $ 2,723 $ 1,540
Total non-performing
loans (non-accrual,
past due over 90 days,
troubled debt
restructuring) $ 66,115 $ 22,021 $ 66,115 $ 22,021
Non-performing loans as
a % of total loans 8.91% 2.88% 8.91% 2.88%
Lou Ann Birkey Vice President - Investor Relations Princeton
National Bancorp, Inc. 815-872-6131 Email Contact
Princeton National Bancorp (CE) (USOTC:PNBC)
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