-----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, JthMKvZixnQBJ6sx+tvXiEbQFV5xR72ZjQZcLTHMdvPRExCMrheS2drFWulVTLQL DvNyaSOfYHA6lU22hAuP7A== 0000950124-05-000377.txt : 20050126 0000950124-05-000377.hdr.sgml : 20050126 20050126095919 ACCESSION NUMBER: 0000950124-05-000377 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050124 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050126 DATE AS OF CHANGE: 20050126 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: 05548588 BUSINESS ADDRESS: STREET 1: 606 S MAIN ST CITY: PRINCETON STATE: IL ZIP: 61356 BUSINESS PHONE: 8158754444 8-K 1 k91391e8vk.txt CURRENT REPORT, DATED JANUARY 24, 2005 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) January 26, 2005 (January 24, 2005) ------------------------------------------------------------------- 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 -----------------------------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 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 January 24, 2005, Princeton National Bancorp, Inc. issued a news release to report its financial results for the quarter and year ended December 31, 2004. The release is furnished as Exhibit 99.1 hereto. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits: Exhibit 99.1 January 24, 2005 Press Release 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: January 26, 2005 3 EXHIBIT INDEX
NUMBER DESCRIPTION - ------ ----------- 99.1 January 24, 2005 Press Release
4 EX-99.1 2 k91391exv99w1.txt PRESS RELEASE, DATED JANUARY 24, 2005 [PRINCETON NATIONAL BANCORP, INC. LOGO] EXHIBIT 99.1 PRINCETON NATIONAL BANCORP, INC. HAS RECORD YEAR PRINCETON, Illinois - January 24, 2005 - Princeton National Bancorp, Inc. (NASDAQ: PNBC) Tony Sorcic, President & CEO, announced today, "Princeton National Bancorp, Inc. had an outstanding year in 2004. The Company generated record results in net income, diluted earnings per share, total assets, and return on equity. Net income totaled $6,872,000, diluted earnings per share were $2.21, total assets reached $655.7 million, and the return on average equity was 13.46%. In comparison to December 31, 2003, net income increased 4.1%, diluted earnings per share increased 7.8%, total assets increased 7.5% and return on average equity increased 3.5%." Sorcic continued, "The Company completed the Stock Repurchase Plan which was announced in January of 2004. The Company repurchased 100,000 shares during 2004, at an average price of $28.84 per share. Since 1997, the Company has repurchased 1,134,271 shares of common stock through stock repurchase programs." Sorcic concluded, "Total loans increased 7.1% in 2004 to $410.0 million. This increase in loans positively impacted the net interest margin for the year. The net interest margin for the year of 3.92% is 6.2% above the 2003 level of 3.69%. We believe the growth in the loan portfolio will continue in the first quarter of 2005 and will further enhance the net interest margin." In 2004, the Company generated loan growth while improving upon the low level of non-performing loans. The balance of non-performing loans at December 31, 2004 decreased to $328,000 from $969,000 at December 31, 2003. The ratio of non-performing loans to total loans decreased to .08% at December 31, 2004 from ..25% at December 31, 2003. As a result, no provision for loan loss was recorded in the fourth quarter of 2004, compared to $95,000 in the prior year quarter. The Company ended 2004 with total deposits of $573.6 million, an increase of 6.6% from year-end 2003. The Company attracted new core deposits totaling $35.7 million during the year. This increase in deposits occurred primarily in time deposit and money market accounts. Net income for the fourth quarter of 2004 totaled $1,689,000, diluted earnings per share totaled $.55, and the return on average equity was 12.99%. This compares favorably to the fourth quarter 2003 net income of $1,638,000, diluted earnings per share of $.51, and the annualized return on average equity of 12.86%. Total non-interest income of $1,906,000 is down slightly from $1,923,000 in the fourth quarter of 2003. For the eighteenth consecutive quarter, the Company's annualized non-interest income equaled or exceeded 1% of average assets. Today, the Board of Directors approved an additional 100,000 share, or approximately 3.3%, Stock Repurchase Program. Under the plan, the Company will repurchase up to 100,000 shares of its outstanding common stock in the open market or in private transactions over the next 5 twelve months. Purchases will be dependent upon market conditions and the availability of shares. The stock price reached a record high of $29.75 during 2004 and closed the year at $28.80. The 2004 year-end stock price represents an increase from the 2003 year-end closing price of $28.55. The Company has community-banking locations throughout northern Illinois, five of which are in high-growth markets and two additional locations (Aurora 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. 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
6 [PRINCETON NATIONAL BANCORP, INC. LOGO] CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data) December 31, 2004 December 31, (unaudited) 2003 ------------ ------------ ASSETS Cash and due from banks $ 14,025 $ 13,428 Interest-bearing deposits with financial institutions 65 511 Federal funds sold 0 2,475 ------------ ------------ Total cash and cash equivalents 14,090 16,414 Loans held for sale, at lower of cost or market 1,301 2,323 Investment securities available-for-sale, at fair value 175,129 154,065 Investment securities held-to-maturity, at amortized cost 13,680 15,827 ------------ ------------ Total investment securities 188,809 169,892 Loans, net of unearned interest 410,044 383,053 Allowance for loan losses (2,524) (2,250) ------------ ------------ Net loans 407,520 380,803 Premises and equipment, net 17,924 14,664 Bank-owned life insurance 15,870 15,036 Interest receivable 5,000 4,634 Goodwill, net of accumulated amortization 1,355 1,355 Intangible assets, net of accumulated amortization 1,317 1,525 Other real estate owned 0 798 Other assets 2,552 2,293 ------------ ------------ TOTAL ASSETS $ 655,738 $ 609,737 ============ ============ - --------------------------------------------------------------------------------------------- LIABILITIES Demand deposits $ 75,015 $ 65,418 Interest-bearing demand deposits 191,271 179,805 Savings deposits 58,675 57,151 Time deposits 248,600 235,453 ------------ ------------ Total deposits 573,561 537,827 Customer repurchase agreements 16,870 9,664 Advances from the Federal Home Loan Bank 5,000 5,150 Interest-bearing demand notes issued to the U.S. Treasury 1,765 297 Federal funds purchased 1,000 0 Note payable 900 1,050 ------------ ------------ Total borrowings 25,535 16,161 Other liabilities 4,273 4,874 ------------ ------------ Total liabilities 603,369 558,862 ------------ ------------ STOCKHOLDERS' EQUITY Common stock 20,699 20,699 Surplus 7,810 7,020 Retained earnings 42,156 38,726 Accumulated other comprehensive income, net of tax 951 1,275 Less: Treasury stock (19,247) (16,845) ------------ ------------ Total stockholders' equity 52,369 50,875 ------------ ------------ TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 655,738 $ 609,737 ============ ============ CAPITAL STATISTICS (UNAUDITED) YTD average equity to average assets 8.24% 8.49% Tier 1 leverage capital ratio 7.62% 7.70% Tier 1 risk-based capital ratio 10.94% 10.72% Total risk-based capital ratio 11.49% 11.22% Book value per share $ 17.13 $ 16.29 Closing market price per share $ 28.80 $ 28.55 End of period shares outstanding 3,058,000 3,124,003 End of period treasury shares outstanding 1,081,841 1,015,838
[PRINCETON NATIONAL BANCORP, INC. LOGO] CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except share data) THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS ENDED ENDED ENDED ENDED Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2004 Dec. 31, 2003 ------------- ------------- ------------- ------------- INTEREST INCOME Interest and fees on loans $ 6,104 $ 5,906 $ 23,518 $ 23,763 Interest and dividends on investment securities 1,598 1,563 6,147 5,504 Interest on federal funds sold 22 11 30 72 Interest on interest-bearing time deposits in other banks 18 9 24 55 ------------- ------------- ------------- ------------- Total Interest Income 7,742 7,489 29,719 29,394 ------------- ------------- ------------- ------------- INTEREST EXPENSE Interest on deposits 2,318 2,273 8,596 10,094 Interest on borrowings 153 101 474 417 ------------- ------------- ------------- ------------- Total Interest Expense 2,471 2,374 9,070 10,511 ------------- ------------- ------------- ------------- NET INTEREST INCOME 5,271 5,115 20,649 18,883 Provision for loan losses 0 95 375 460 ------------- ------------- ------------- ------------- NET INTEREST INCOME AFTER PROVISION 5,271 5,020 20,274 18,423 ------------- ------------- ------------- ------------- NON-INTEREST INCOME Trust & farm management fees 406 325 1,451 1,280 Service charges on deposit accounts 772 776 3,149 3,018 Other service charges 288 254 1,165 1,056 Gain on sales of securities available-for-sale 34 67 216 1,002 Gain on sale of loans 0 0 465 0 Brokerage fee income 94 140 607 550 Mortgage banking income 155 166 561 1,287 Bank-owned life insurance 135 145 555 584 Other operating income 22 50 146 147 ------------- ------------- ------------- ------------- Total Non-Interest Income 1,906 1,923 8,315 8,924 ------------- ------------- ------------- ------------- NON-INTEREST EXPENSE Salaries and employee benefits 2,901 2,756 11,129 10,324 Occupancy 350 295 1,368 1,237 Equipment expense 465 427 1,653 1,624 Federal insurance assessments 55 52 229 212 Intangible assets amortization 52 52 208 208 Data processing 191 175 747 706 Advertising 220 145 743 449 Other operating expense 759 826 3,426 3,463 ------------- ------------- ------------- ------------- Total Non-Interest Expense 4,993 4,728 19,503 18,223 ------------- ------------- ------------- ------------- INCOME BEFORE INCOME TAXES 2,184 2,215 9,086 9,124 Income tax expense 495 577 2,214 2,521 ------------- ------------- ------------- ------------- NET INCOME $ 1,689 $ 1,638 $ 6,872 $ 6,603 ============= ============= ============= ============= NET INCOME PER SHARE: BASIC $ 0.55 $ 0.52 $ 2.22 $ 2.08 DILUTED $ 0.55 $ 0.51 $ 2.21 $ 2.05 Basic weighted average shares outstanding 3,060,661 3,143,961 3,088,881 3,181,424 Diluted weighted average shares outstanding 3,088,172 3,191,466 3,116,078 3,220,227 PERFORMANCE RATIOS (ANNUALIZED) Return on average assets 1.05% 1.07% 1.11% 1.10% Return on average equity 12.99% 12.86% 13.46% 13.01% Net interest margin (tax-equivalent) 3.86% 3.90% 3.92% 3.69% Efficiency ratio (tax-equivalent) 65.90% 63.98% 63.96% 62.50% ASSET QUALITY Net loan charge-offs (recoveries) 19 223 101 870 Total non-performing loans 328 969 328 969 Non-performing loans as a % of total loans 0.08% 0.25% 0.08% 0.25%
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