-----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, Lfge8Y7NbWHGysXHm1cilPlIivPMV8/3hgP/DEcyFdCqDhtgFJwmim4wLolnDFaE HeyN5l5JpfytPvUEBGiXOw== 0000950124-04-003430.txt : 20040728 0000950124-04-003430.hdr.sgml : 20040728 20040728090415 ACCESSION NUMBER: 0000950124-04-003430 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040726 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040728 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: 04934577 BUSINESS ADDRESS: STREET 1: 606 S MAIN ST CITY: PRINCETON STATE: IL ZIP: 61356 BUSINESS PHONE: 8158754444 8-K 1 k87048e8vk.txt CURRENT REPORT, DATED JULY 28, 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) July 28, 2004 (July 26, 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 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits: Exhibit 99.1 July 26, 2004 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 July 26, 2004, Princeton National Bancorp, Inc. issued a news release to report its financial results for the quarter ended June 30, 2004. 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: July 27, 2004 3 EXHIBIT INDEX NUMBER DESCRIPTION - ------ ----------- 99.1 July 26, 2004 Press Release 4 EX-99.1 2 k87048exv99w1.txt PRESS RELEASE DATED JULY 28, 2004 EXHIBIT 99.1 [PRINCETON NATIONAL BANCORP, INC. LOGO] PRINCETON NATIONAL BANCORP, INC. ACHIEVES RECORD BREAKING EARNINGS FOR THE FIRST SIX MONTHS OF 2004 PRINCETON, Illinois - July 26, 2004 - Princeton National Bancorp, Inc. (NASDAQ: PNBC) President Tony J. Sorcic announced today, "Princeton National Bancorp, Inc. completed an excellent first six months in 2004 and achieved record breaking earnings (excluding the first six months of 2000 when the settlement from Cincinnati Insurance Company was received). Diluted earnings per share of $1.12 represent a 10.9% increase over the $1.01 attained during the first six months of 2003. Net income of $3,550,000 for the first half of 2004 increased 9.0% as compared to $3,256,000 in the same time period in 2003, while the return on average equity increased to 14.07% from 12.84%." Sorcic continued, "The Company completed the purchase of the land in Aurora, Illinois during the second quarter. Construction of the facility should begin later this year, with the facility opening in 2005. Princeton National Bancorp, Inc. is very excited about becoming a member of the Aurora/Oswego area and providing community banking services to its residents and businesses." Sorcic concluded, "In the second quarter, the subsidiary bank sold its $2 million credit card portfolio, resulting in an after tax gain of approximately $285,000. Total non-interest income for the first six months of 2004 was $4,509,000, below the 2003 level of $4,923,000. However, during the six-month period in 2003, $935,000 in gains were realized from the sales of securities; this did not recur in 2004." Total assets at June 30 reached $614,277,000, a 1.4% increase over the June 30, 2003 total of $605,614,000. Loans (net of unearned interest) as of June 30, 2004 were $388,836,000, a 6.1% increase compared to $366,374,000 at June 30, 2003. The ratio of non-performing loans to total loans decreased significantly to .18% at June 30, 2004 compared to .81% at June 30, 2003. The Company's 2004 net loan charge-offs as of June 30 totaled $104,000. The ratio of net loan charge-offs to total loans through June 30, 2004 was .03% compared to .13% through June 30, 2003. Total deposits ended the second quarter at $536,341,000, an increase of $5.2 million compared to June 30, 2003. The prepayments on mortgage-backed securities during the first six months of 2004 returned to the levels experienced prior to the mortgage refinancing period. As a result, the net interest margin increased to 3.94%. This compares favorably to 3.51% for the same six-month period in 2003. Diluted earnings per share and net income for the second quarter reached record levels (excluding the first quarter of 2000 when the settlement from Cincinnati Insurance Company was received). In comparison to the first quarter of 2004, diluted earnings per share increased 17.3% to $.61, net income increased 16.3% to $1,909,000 and the return on average equity increased 19.5% to 15.48%. The sale of the credit card portfolio, along with increases in brokerage fees, trust & farm management fees, and deposit fees resulted in total non-interest income of $2,470,000, a 21.1% increase from the first quarter of 2004. During the second quarter, the Company repurchased 35,000 shares of stock at an average price of $28.86. In 2004, the Company has repurchased 72,000 shares at an average price of $28.69 and will continue to purchase shares to complete the 100,000 share Stock Repurchase Program announced in January 2004. Purchases will be dependent upon market conditions and the availability of shares. Since 1997, the Company has repurchased 1,106,271 shares of common stock (or 27.10% of the shares of common stock outstanding in 1997) through stock repurchase programs. The Company has community-banking locations throughout northern Illinois, five of which are in high-growth markets and two additional locations (Aurora/Oswego and Elburn), which will also be built 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. Detailed financial information is attached as part of this press release. 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 NATIONAL BANCORP, INC. LOGO] CONSOLIDATED BALANCE SHEETS (unaudited) (dollars in thousands, except share data)
June 30, December 31, 2004 2003 ---------- ------------ ASSETS Cash and due from banks $12,322 $13,428 Interest-bearing deposits with financial institutions 50 511 Federal funds sold 0 2,475 --------- ----------- Total cash and cash equivalents 12,372 16,414 Loans held for sale, at lower of cost or market 1,793 2,323 Investment securities available-for-sale, at fair value 153,255 154,065 Investment securities held-to-maturity, at amortized cost 16,964 15,827 --------- ----------- Total investment securities 170,219 169,892 Loans, net of unearned interest 388,836 383,053 Allowance for loan losses (2,446) (2,250) --------- ----------- Net loans 386,390 380,803 Premises and equipment, net 17,936 14,664 Bank-owned life insurance 15,630 15,036 Interest receivable 4,276 4,634 Goodwill, net of accumulated amortization 1,355 1,355 Intangible assets, net of accumulated amortization 1,421 1,525 Other real estate owned 635 798 Other assets 2,250 2,293 --------- ----------- TOTAL ASSETS $614,277 $609,737 ========= =========== - ------------------------------------------------------------------------------------------------ LIABILITIES Demand deposits $62,272 $65,418 Interest-bearing demand deposits 183,697 179,805 Savings deposits 60,023 57,151 Time deposits 230,349 235,453 --------- ----------- Total deposits 536,341 537,827 Customer repurchase agreements 8,219 9,664 Advances from the Federal Home Loan Bank 5,000 5,150 Interest-bearing demand notes issued to the U.S. Treasury 1,083 297 Federal funds purchased 9,200 0 Note payable 1,000 1,050 --------- ----------- Total borrowings 24,502 16,161 Other liabilities 3,119 4,874 --------- ----------- Total liabilities 563,962 558,862 --------- ----------- STOCKHOLDERS' EQUITY Common stock 20,699 20,699 Surplus 7,617 7,020 Retained earnings 40,687 38,726 Accumulated other comprehensive income (loss), net of tax (204) 1,275 Less: Treasury stock (18,484) (16,845) --------- ----------- Total stockholders' equity 50,315 50,875 --------- ----------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $614,277 $609,737 ========= =========== CAPITAL STATISTICS YTD average equity to average assets 8.33% 8.49% Tier 1 leverage capital ratio 7.83% 7.70% Tier 1 risk-based capital ratio 10.92% 10.72% Total risk-based capital ratio 11.47% 11.22% Book value per share $16.32 $16.29 Closing market price per share $29.00 $28.55 End of period shares outstanding 3,082,066 3,124,003 End of period treasury shares outstanding 1,057,775 1,015,838
[PRINCETON NATIONAL BANCORP, INC. LOGO] CONSOLIDATED STATEMENTS OF INCOME (unaudited) (dollars in thousands, except share data)
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED ENDED June 30, 2004 June 30, 2003 June 30, 2004 June 30, 2003 --------------- ------------- -------------- ------------- INTEREST INCOME Interest and fees on loans $ 5,803 $ 5,958 $ 11,514 $ 11,942 Interest and dividends on investment securities 1,490 633 3,019 2,437 Interest on federal funds sold 4 28 6 48 Interest on interest-bearing time deposits in other banks 2 21 4 37 ---------- ---------- ---------- ---------- Total Interest Income 7,299 6,640 14,543 14,464 ---------- ---------- ---------- ---------- INTEREST EXPENSE Interest on deposits 2,025 2,671 4,164 5,441 Interest on borrowings 109 106 205 214 ---------- ---------- ---------- ---------- Total Interest Expense 2,134 2,777 4,369 5,655 ---------- ---------- ---------- ---------- NET INTEREST INCOME 5,165 3,863 10,174 8,809 Provision for loan losses 200 165 300 265 ---------- ---------- ---------- ---------- NET INTEREST INCOME AFTER PROVISION 4,965 3,698 9,874 8,544 ---------- ---------- ---------- ---------- NON-INTEREST INCOME Trust & farm management fees 356 318 702 640 Service charges on deposit accounts 789 746 1,532 1,468 Other service charges 340 275 599 538 Gain on sales of securities available-for-sale 0 935 182 935 Gain on sale of loans 465 0 465 0 Brokerage fee income 200 135 378 266 Mortgage banking income 135 299 283 692 Bank-owned life insurance 142 150 283 300 Other operating income 43 12 85 84 ---------- ---------- ---------- ---------- Total Non-Interest Income 2,470 2,870 4,509 4,923 ---------- ---------- ---------- ---------- NON-INTEREST EXPENSE Salaries and employee benefits 2,766 2,542 5,458 5,003 Occupancy 326 315 664 622 Equipment expense 380 396 790 792 Federal insurance assessments 56 54 119 109 Intangible assets amortization 52 52 104 104 Data processing 197 180 369 359 Advertising 185 128 332 218 Other operating expense 877 862 1,787 1,740 ---------- ---------- ---------- ---------- Total Non-Interest Expense 4,839 4,529 9,623 8,947 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 2,596 2,039 4,760 4,520 Income tax expense 687 555 1,210 1,264 ---------- ---------- ---------- ---------- NET INCOME $ 1,909 $ 1,484 $ 3,550 $ 3,256 ========== ========== ========== ========== NET INCOME PER SHARE: BASIC $ 0.62 $ 0.47 $ 1.14 $ 1.02 DILUTED $ 0.61 $ 0.46 $ 1.12 $ 1.01 Basic weighted average shares outstanding 3,101,621 3,189,877 3,110,513 3,205,497 Diluted weighted average shares outstanding ............. 3,154,212 3,225,468 3,162,009 3,238,085 PERFORMANCE RATIOS (ANNUALIZED) Return on average assets 1.25% 1.00% 1.17% 1.11% Return on average equity 15.48% 11.57% 14.07% 12.84% Net interest margin (tax-equivalent) 3.98% 3.10% 3.94% 3.51% Efficiency ratio (tax-equivalent) 60.41% 64.17% 62.39% 62.20% ASSET QUALITY Net loan charge-offs 33 281 104 495 Total non-performing loans 709 2,951 709 2,951 Non-performing loans as a % of total loans 0.18% 0.81% 0.18% 0.81%
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