-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CwAQsRAJj6ZuYMKe0j0uxUWY4r3TXSZ+kJ1/3POrvMdYAKNGil/v1adNmm5Nzje0 Q2SuBD1cdJhD7KiRzH8E6g== 0000950124-03-003352.txt : 20031028 0000950124-03-003352.hdr.sgml : 20031028 20031028151749 ACCESSION NUMBER: 0000950124-03-003352 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031027 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRINCETON NATIONAL BANCORP INC CENTRAL INDEX KEY: 0000707855 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 363210283 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20050 FILM NUMBER: 03960843 BUSINESS ADDRESS: STREET 1: 606 S MAIN ST CITY: PRINCETON STATE: IL ZIP: 61356 BUSINESS PHONE: 8158754444 8-K 1 k80400e8vk.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 28, 2003 ------------------------ (October 27, 2003) ------------------------ Princeton National Bancorp, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-20050 36-3210283 - ------------------------------------ --------------------------------------- (Commission File Number) (IRS Employer Identification No.) 606 South Main Street Princeton, Illinois 61356 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (815) 875-4444 ------------------------------ Exhibit Index is located on page 4. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits: Exhibit 99.1 October 27, 2003 Press Release ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. The following information, including the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. On October 27, 2003, Princeton National Bancorp, Inc. issued a news release to report its financial results for the quarter ended September 30, 2003. The release is furnished as Exhibit 99.1 hereto. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PRINCETON NATIONAL BANCORP, INC. (Registrant) By: /s/ Tony J. Sorcic -------------------------------------- Tony J. Sorcic, President and Chief Executive Officer Dated: October 27, 2003 3 EXHIBIT INDEX NUMBER DESCRIPTION 99.1 October 27, 2003 Press Release 4 EX-99.1 3 k80400exv99w1.txt PRESS RELEASE [PRINCETON NATIONAL BANCORP, INC. LOGO] PRINCETON NATIONAL BANCORP, INC. ANNOUNCES 15.2% INCREASE IN EARNINGS PRINCETON, Illinois -- October 27, 2003 -- Princeton National Bancorp, Inc. (NASDAQ: PNBC) President Tony J. Sorcic announced today, "Princeton National Bancorp, Inc. reported a 15.2% increase in third quarter earnings as compared to the second quarter of 2003, a 15.2% increase in diluted earnings per share, and a 16.7% increase in the return on average equity. In comparison to the third quarter of 2002, net income increased 11.9%, diluted earnings per share increased 15.2%, and the return on average equity increased 14.2%." President Sorcic continued, "The Company has signed a sales contract for the purchase of property in Aurora, Illinois. The construction of the new bank facility will begin in the spring of 2004. Once this facility is completed, a facility will be built on the Elburn, Illinois property which was purchased in July of 2003." President Sorcic concluded, "After a compression in the net interest margin in the second quarter of 2003, the Company experienced an expansion in the net interest margin during the third quarter. During the third quarter, the Company generated growth in net income, earnings per share, net interest income, and loans, while also improving the return on equity and the efficiency ratio. The Company is positioned well to take advantage of future opportunities. The fee income trend continues to be strong, non-performing loans are at a low level, and the margin has recovered. The Company is focused on achieving long-term results by expanding its market areas and increasing revenue." Net income for the quarter was $1,709,000, diluted earnings per share totaled $.53, and the return on average equity was 13.50% for 2003 compared to $1,528,000, $.46, and 11.82% respectively in the third quarter of 2002. The Company's efficiency ratio improved 3.6% from the second quarter of 2003 to 62.53%; this is up 5.7% from the third quarter of 2002. The loan portfolio continues to experience strong growth. Net loans as of September 30, 2003 totaled $376,889,000. Currently, the Company has approximately $21,000,000 in its commercial loan pipeline. The Company has experienced a 60.1% decrease in non-performing loans over the past twelve months; the balance at September 30, 2003 was $2,839,000 as compared to $7,114,000 at September 30, 2002. The ratio of non-performing loans to total assets as of September 30, 2003 was .75%. Total assets at September 30, 2003 have increased 3.8% to $599,164,000 over the past year and total deposits ended the third quarter at $524,384,000, an increase of 5.0% during the same period. The stock price of $25.60 as of September 30, 2003 represents a 28.6% increase from September 30, 2002. The Company has completed 50% of the Stock Repurchase Program announced on May 1, 2003, under which 30,000 shares were repurchased at an average price of $25.55. Since 1997, the Company has repurchased a total of 1,004,271 shares through stock repurchase programs. Net income of $4,966,000 for the first nine months of 2003 represents a 7.3% increase from the same period in 2002, while diluted earnings per share totaled $1.54 (an increase of 10.8%), and return on average equity was 13.06% (an increase of 4.1%). Total other income of $7,434,000 represents a 33.8% increase over the same 9-month period in 2002. For the thirteenth consecutive quarter, annualized non-interest income equaled or exceeded 1% of average assets. The Company has community-banking locations throughout northern Illinois, five of which are in high growth markets. These communities include: Huntley, Hampshire, Minooka, Sandwich, Genoa, Peru, Princeton, Henry, Oglesby, Spring Valley, and DePue. 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. Inquiries should be directed to: Lou Ann Birkey, Vice President -- Investor Relations, Princeton National Bancorp, Inc. (815) 875-4444, E-Mail address: pnbc@citizens1st.com [PRINCETON LOGO] CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands, except share data)
Sept. 30, December 31, Sept. 30, 2003 2002 2002 ------------------ ----------------- ------------------ ASSETS Cash and due from banks $14,390 $13,939 $15,939 Interest-bearing deposits with financial institutions 566 1,706 902 Federal funds sold 5,600 3,225 2,150 ------------------ ----------------- ------------------ Total cash and cash equivalents 20,556 18,870 18,991 Loans held for sale, at lower of cost or market 3,497 6,761 3,917 Investment securities available-for-sale 145,548 157,881 151,558 Investment securities held-to-maturity 17,456 11,437 14,700 ------------------ ----------------- ------------------ Total investment securities 163,004 169,318 166,258 Loans, net of unearned interest 375,770 357,359 349,494 Allowance for loan losses (2,378) (2,660) (2,747) ------------------ ----------------- ------------------ Net loans 373,392 354,699 346,747 Premises and equipment, net 14,118 13,388 13,447 Bank-owned life insurance 14,266 13,566 13,465 Goodwill, net of accumulated amortization 1,355 1,355 1,355 Intangible assets, net of accumulated amortization 1,576 1,732 1,784 Interest receivable 4,908 5,180 5,713 Other real estate owned 42 75 3,413 Other assets 2,450 2,431 2,152 ------------------ ----------------- ------------------ TOTAL ASSETS $599,164 $587,375 $577,242 ================== ================= ================== LIABILITIES Demand deposits $55,485 $58,655 $49,735 Interest-bearing demand deposits 175,713 155,549 134,361 Savings deposits 56,531 51,750 51,634 Time deposits 236,655 245,313 263,797 ------------------ ----------------- ------------------ Total deposits 524,384 511,267 499,527 Customer repurchase agreements 11,487 10,044 10,017 Advances from the Federal Home Loan Bank 5,300 5,750 5,900 Interest-bearing demand notes issued to the U.S. Treasury 762 2,397 2,393 Note payable 1,151 1,300 1,450 ------------------ ----------------- ------------------ Total borrowings 18,700 19,491 19,760 Other liabilities 4,522 5,543 5,924 ------------------ ----------------- ------------------ Total liabilities 547,606 536,301 525,211 ------------------ ----------------- ------------------ STOCKHOLDERS' EQUITY Common stock 20,699 20,699 20,699 Surplus 6,953 6,612 6,560 Retained earnings 38,452 35,255 35,214 Accumulated other comprehensive income, net of tax 1,515 2,218 2,737 Less: Treasury stock (16,061) (13,710) (13,179) ------------------ ----------------- ------------------ Total stockholders' equity 51,558 51,074 52,031 ------------------ ----------------- ------------------ TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $599,164 $587,375 $577,242 ================== ================= ================== CAPITAL STATISTICS YTD average equity to average assets 8.55% 8.75% 8.83% Tier 1 leverage capital ratio 7.88% 7.80% 8.04% Tier 1 risk-based capital ratio 11.02% 11.10% 11.49% Total risk-based capital ratio 11.57% 11.74% 12.16% Book value per share $16.37 $15.79 $15.73 Closing market price per share $25.60 $21.15 $19.90 End of period shares outstanding 3,148,945 3,233,686 3,257,082 End of period treasury shares outstanding 990,896 906,155 882,759
[PRINCETON LOGO] CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands, except share data)
THREE MONTHS THREE MONTHS NINE MONTHS NINE MONTHS ENDED ENDED ENDED ENDED Sept. 30, 2003 Sept. 30, 2002 Sept. 30, 2003 Sept. 30, 2002 -------------- -------------- -------------- -------------- INTEREST INCOME Interest and fees on loans $5,916 $6,170 $17,858 $18,715 Interest and dividends on investment securities 1,505 1,925 3,942 5,736 Interest on federal funds sold 12 37 60 107 Interest on interest-bearing time deposits in other banks 8 29 46 73 --------- --------- --------- --------- Total Interest Income 7,441 8,161 21,906 24,631 --------- --------- --------- --------- INTEREST EXPENSE Interest on deposits 2,381 3,316 7,822 9,975 Interest on borrowings 101 132 316 405 --------- --------- --------- --------- Total Interest Expense 2,482 3,448 8,138 10,380 --------- --------- --------- --------- NET INTEREST INCOME 4,959 4,713 13,768 14,251 Provision for loan losses 100 50 365 425 --------- --------- --------- --------- NET INTEREST INCOME AFTER PROVISION 4,859 4,663 13,403 13,826 --------- --------- --------- --------- NON-INTEREST INCOME Trust & farm management fees 315 312 955 895 Service charges on deposit accounts 774 706 2,242 2,031 Other service charges 264 261 802 760 Gain on sales of securities available-for-sale 0 98 935 138 Brokerage fee income 143 157 410 501 Mortgage banking income 611 167 1,554 531 Bank-owned life insurance 139 206 439 576 Other operating income 12 20 97 125 --------- --------- --------- --------- Total Non-Interest Income 2,258 1,927 7,434 5,557 --------- --------- --------- --------- NON-INTEREST EXPENSE Salaries and employee benefits 2,747 2,534 8,001 7,405 Occupancy 320 292 942 892 Equipment expense 405 393 1,198 1,120 Federal insurance assessments 50 53 159 159 Intangible assets amortization 52 52 156 156 Data processing 171 188 531 559 Advertising 87 130 304 348 Other operating expense 896 976 2,637 2,468 --------- --------- --------- --------- Total Non-Interest Expense 4,728 4,618 13,928 13,107 --------- --------- --------- --------- INCOME BEFORE INCOME TAXES 2,389 1,972 6,909 6,276 Income tax expense 680 444 1,943 1,647 --------- --------- --------- --------- NET INCOME $1,709 $1,528 $4,966 $4,629 ========= ========= ========= ========= NET INCOME PER SHARE: BASIC $0.54 $0.46 $1.55 $1.40 DILUTED $0.53 $0.46 $1.54 $1.39 Basic weighted average shares outstanding 3,171,527 3,292,127 3,194,049 3,300,654 Diluted weighted average shares outstanding 3,213,331 3,314,705 3,229,696 3,319,401 PERFORMANCE RATIOS (ANNUALIZED) Return on average assets 1.13% 1.05% 1.12% 1.11% Return on average equity 13.50% 11.82% 13.06% 12.54% Net interest margin (tax-equivalent) 3.84% 3.83% 3.62% 4.02% Efficiency ratio (tax-equivalent) 62.53% 66.29% 62.75% 63.09% ASSET QUALITY Net loan charge-offs (recoveries) 152 28 647 (22) Total non-performing loans 2,839 7,114 2,839 7,114 Non-performing loans as a % of net loans 0.75% 2.03% 0.75% 2.03%
-----END PRIVACY-ENHANCED MESSAGE-----