-----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, I1UN3k/q+I4Id1qXJwWntkvzLcTUvAA+hlBolsNEdNdx8lqJVxS2X7Oe97IRNQ6o QlIMVSXpP7SOIpq4wwc2tg== 0000950124-04-002571.txt : 20040526 0000950124-04-002571.hdr.sgml : 20040526 20040526101921 ACCESSION NUMBER: 0000950124-04-002571 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040525 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040526 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: 04831255 BUSINESS ADDRESS: STREET 1: 606 S MAIN ST CITY: PRINCETON STATE: IL ZIP: 61356 BUSINESS PHONE: 8158754444 8-K 1 k85814e8vk.txt CURRENT REPORT, DATED MAY 25, 2004 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) May 26, 2004 (May 25, 2004) -------------------------------- 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 5. OTHER EVENTS On May 25, 2004, the Registrant mailed a letter to its stockholders concerning the results of the annual meeting of stockholders and the results of the 1st quarter of 2004. The letter to stockholders dated May 25, 2004 is attached hereto as Exhibit 99 and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits: Exhibit 99 May 25, 2004 Letter to Stockholders 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: May 26, 2004 3 EXHIBIT INDEX NUMBER DESCRIPTION - ------ ----------- 99 May 25, 2004 Letter to Stockholders 4 EX-99.1 2 k85814exv99w1.txt LETTER TO STOCKHOLDERS EXHIBIT 99.1 May 25, 2004 Dear Shareholder: We are excited to share with you the results of the 2003 Annual Meeting and the first quarter of 2004. At this year's annual meeting, presentations were made by Todd Fanning, Vice President & CFO; Bob Schneider, Senior Vice President & Trust Officer; Steve Bouslog, Senior Vice President & Corporate Sales Manager; Craig Wesner, Chairman of the Board; and Tony J. Sorcic, President & CEO. Craig Wesner, Chairman of the Board, welcomed the shareholders to the annual meeting. Chairman Wesner noted the Board of Directors, Management and Staff develop a Strategic Plan each year, which determines the course of the Company over the next 3 years. The Plan addresses key financial ratios, earnings, and future growth plans. The Management of the Company has achieved consistent improvement in these key areas. The following Directors were elected to serve until the 2007 Annual Meeting: Daryl Becker, Sharon L. Covert, Mark Janko, James B. Miller, and Stephen W. Samet. The Board of Directors and Management greatly appreciate your continued confidence in the operation of the Company. Todd Fanning, Vice President & CFO, reviewed the 2003 Annual Report. As previously reported, the Company ended 2003 with net income of $6,603,000, a return on equity of 13.01%, and diluted earnings per share totaling $2.05. The Company's efforts to expand non-interest revenue sources contributed to these outstanding results. Fees from mortgage loans, commercial loans, deposits, trust and farm management services, and security gains positively impacted non-interest income. Tony Sorcic, President & CEO, noted two objectives in the 2003 Strategic Plan were to expand into new markets and accelerate the fee revenue from non-traditional lines of business (trust, brokerage, and insurance). One of the tactics to accomplish these objectives was the establishment of a Task Force to study the combination of trust and brokerage services. The Task Force was given the mission to accelerate growth and expand fee income through non-traditional lines of business and recommend the future direction and organizational structure of trust and brokerage services. From this process, Citizens Financial Advisors was developed. Bob Schneider and Steve Bouslog provided the shareholders with an update on Citizens Financial Advisors. In 2004, trust and brokerage services will be combined. This will allow the Bank to better serve its customers through a multi-disciplined approach. It is anticipated the combination of the two departments will take place in September of 2004. May 25, 2004 Page 2 During 2003, the Company announced the death of a long-time, dedicated Director, Don S. Browning. Mr. Browning was appointed to the Board in 1983 and served on both the Company's and the Subsidiary Bank's Boards of Directors. His valuable input and friendship will be greatly missed by the Board of Directors, Management and the Company. At its April 26, 2004 meeting, the Board of Directors declared a quarterly dividend of $.19 per share, payable May 25, 2004, to those shareholders of record as of May 7, 2004. This is the Company's 77th consecutive dividend and the ninth increase in the last twelve quarters. The stock price reached a high of $29.10 during the first quarter and closed on March 31, 2004 at $28.65, a 30.8% increase from the March 31, 2003 closing price of $21.90. President Sorcic noted the goal of the Company's Capital Management Plan is to enhance long-term shareholder return. Under this plan, the quarterly cash dividend has been increased; a special dividend has been paid to shareholders each of the past three years; and two additional Stock Repurchase Plans were implemented. The Company's seventh Stock Repurchase Plan, which was announced in May of 2003, was completed in December of 2003. In January of 2004, the Company announced its eighth stock repurchase plan and, as of April 27, 2004, the Company had repurchased 37,000 shares under this plan at an average price of $28.52. Since 1997, the Company has repurchased a total of 1,071,271 shares through stock repurchase programs. Princeton National Bancorp, Inc. continues to balance capital needs with future growth opportunities. President Sorcic reviewed the performance of the Company's stock price. At December 31, 2003, the stock price had increased 140% in comparison to the price at December 31, 2000. This compares very favorably to the performance of the Russell 3000 Index, S&P 500 Index, Dow Jones Industrials, and the NASDAQ Composite Index, all of which declined during the same 3-year period. The Company continued to experience strong growth in its loan portfolio in 2003. Total loans increased $21.6 million, reaching a record high of $383.1 million. Loan growth was particularly strong in the areas of commercial and agriculture, which, combined, totaled $21.1 million. The Company generated this loan growth while maintaining a low level of non-performing loans; the balance of non-performing loans at December 31, 2003 was approximately $969,000 as compared to $3.8 million at December 31, 2002. The ratio of non-performing loans to total loans decreased to .25% at December 31, 2003 from 1.07% at December 31, 2002. In 2003, Princeton National Bancorp, Inc. purchased land in Elburn, Illinois and signed a purchase contract for land in Aurora, Illinois in the center of the rapidly growing Oswego-Aurora area. The Company will begin construction of the facility in Aurora, Illinois in 2004. Once this facility is completed, construction will begin on the facility in Elburn, Illinois. Princeton National Bancorp, Inc. is very excited about the opportunities which will be presented by these new locations. The Company is off to a good start in 2004. Princeton National Bancorp, Inc. achieved diluted earnings per share of $.52 for the first quarter of 2004, a 2.0% increase over the 2003 fourth quarter results of $.51. Net income for the quarter increased slightly to $1,641,000 as compared to $1,638,000 in the fourth quarter of 2003. The return on average equity was 12.95% compared to 12.86% for the fourth quarter of 2003. May 25, 2004 Page 3 The Company is fortunate to have a professional staff whose dedication and work ethic is demonstrated in the consistent results which have been produced. Princeton National Bancorp, Inc. remains focused on providing a long-term profitable return to shareholders and is excited about the opportunities of the future! Thank you for your support of Princeton National Bancorp, Inc. Sincerely, /s/ Craig O. Wesner /s/ Tony J. Sorcic - ------------------- ------------------ Craig O. Wesner Tony J. Sorcic Chairman of the Board President & CEO [PRINCETON LOGO] SHAREHOLDER INFORMATION - ----------------------- To participate in either the Dividend Reinvestment Plan or Electronic Direct Deposit, contact Lou Ann Birkey at 815-875-4444. A copy of Princeton National Bancorp, Inc.'s Annual Report on Form 10-K for 2003, as filed with the Securities & Exchange Commission, is available without charge by writing: Lou Ann Birkey, Vice President -- Investor Relations & Corporate Secretary, Princeton National Bancorp, Inc., 606 S. Main Street, Princeton, IL 61356, or . by E-mailing pnbc@citizens1st.com. Princeton National Bancorp, Inc.'s stock is traded on the NASDAQ Stock Market under the symbol "PNBC". Following is a list of the Company's market makers: RBC Dain Rauscher Contact: BRIAN FOSTER Phone: 800-683-3246 Howe Barnes Investments, Inc. Contact: NICK BACH Phone: 800-800-4693 William Blair & Company Contact: LARRY DOUGHERTY Phone: 800-621-0687 2004 FIRST QUARTER HIGHLIGHTS - Net income for the first quarter of 2004 totaled $1.641 million, diluted earnings per share totaled $.52 and the return on average equity was 12.95%. - The dividend of $.18 per share paid on February 25, 2004 represented the Company's 76th consecutive dividend. - Annualized non-interest income for the quarter was 1.35% of average assets. This is the fifteenth consecutive quarter annualized non-interest income has equaled or exceeded 1% of average assets. - The stock price reached a high of $29.10 during the first quarter and closed on March 31, 2004 at $28.65, a 30.8% increase from the March 31, 2003 closing price of $21.90. - The Company is finalizing plans for the purchase of land in Aurora, Illinois. Construction of the facility should begin in 2004, with the facility opening in 2005. The Aurora area is growing at a fast pace and Princeton National Bancorp, Inc. is very excited about becoming a member of this community and participating in the opportunities which will be presented. - During the first quarter, the Company repurchased 37,000 shares of stock at an average price of $28.52. The Company will continue to repurchase shares in the open market or in private transactions to complete the 100,000 Share Repurchase Program which was announced in January of 2004. Purchases will be dependent upon market conditions and the availability of shares. Since 1997, the Company has repurchased 1,071,271 shares of common stock through stock repurchase programs - At the April 26, 2004 Board of Directors' meeting, the dividend was increased 5.6% to $.19 per share payable May 25, 2004 to those shareholders of record as of May 7, 2004. The Board of Directors has increased the dividend nine out of the last twelve quarters. [BOOK VALUE/MARKET VALUE BAR GRAPH] STOCK VALUE PER SHARE (03/31/04) -------------------------------- 3-Month Trailing P/E Ratio 13.77x 52-Week Price Range $21.35-$29.12 Closing Price $28.65 Book Value $16.65 Price/Book Value 172.07% Dividend (annualized) $.72 Dividend Yield 2.51% Shares Outstanding 3,115,101 THIS QUARTERLY FACT SHEET MAY CONTAIN 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 "BELIEVES", "ANTICIPATES", "ESTIMATES", "EXPECTS", "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. FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
FOR THE THREE MONTHS FOR THE YEARS ENDED MARCH 31, ENDED DECEMBER 31, --------------------------- ------------------------------------ 2004 2003 2003 2002 2001 ------------- ----------- ---------- ----------- ---------- INCOME STATEMENT DATA Net Income $ 1,641 $ 1,772 $ 6,603 $ 6,134 $ 5,407 Basic Earnings Per Share ("EPS") 0.53 0.55 (4)2.08 1.87 1.62 Diluted Earnings Per Share ("EPS") 0.52 0.55 2.05 1.86 1.62 Total Interest Income 7,244 7,824 29,394 32,669 35,724 Total Interest Expense 2,235 2,878 10,511 13,559 18,266 Net Interest Income 5,009 4,946 18,883 19,110 17,458 Total Non-Interest Income 2,039 2,059 9,408 7,563 7,307 Total Non-Interest Expense 4,784 4,424 18,707 17,692 16,561 RATIOS Return on Average Equity 12.95% 14.14% 13.01% 12.37% 11.60% Return on Average Assets 1.09% 1.22% 1.10% 1.08% 1.02% Net Interest Margin 3.90% 3.97% 3.69% 3.95% 3.85% Tier 1 Capital, at period-end 7.81% 7.87% 7.83% 8.11% 8.31% Equity to Assets, at period-end 8.48% 8.59% 8.34% 8.70% 8.55% Non-performing Loans as a percentage of Total Loans .28% 1.23% .25% 1.07% 1.72% Efficiency Ratio 64.53% 60.34% 63.12% 63.25% 63.99% BALANCE SHEET DATA Total Assets $ 611,463 $ 597,600 $ 609,737 $ 587,375 $ 555,325 Total Investments 168,022 165,265 169,892 169,318 144,660 Total Loans, Net 389,550 358,946 383,053 357,359 333,399 Total Deposits 538,451 525,166 537,827 511,267 481,738 Customer Repurchase Agreements, TT&L Deposits & Other Borrowings 16,443 15,684 16,161 19,491 20,595 Stockholders' Equity 51,856 51,351 50,875 51,074 47,500
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