-----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, Nhy/yflR06SdWp6zTtOovUZ/pERhxug9623zIYTrgagNQzWuQ3jDW27dHTkLZ6TQ QhM16nKDHKR9g7Vv360P2w== 0000950124-06-004019.txt : 20060728 0000950124-06-004019.hdr.sgml : 20060728 20060728140543 ACCESSION NUMBER: 0000950124-06-004019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060724 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060728 DATE AS OF CHANGE: 20060728 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: 06987312 BUSINESS ADDRESS: STREET 1: 606 S MAIN ST CITY: PRINCETON STATE: IL ZIP: 61356 BUSINESS PHONE: 8158754444 8-K 1 k07072e8vk.txt CURRENT REPORT DATED JULY 24, 2006 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, 2006 (July 24, 2006) 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 July 24, 2006, Princeton National Bancorp, Inc. issued a news release to report its financial results for the quarter and six month period ended June 30, 2006. The release is furnished as Exhibit 99.1 hereto. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits: Exhibit 99.1 July 24, 2006 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: July 28, 2006 3 EXHIBIT INDEX
NUMBER DESCRIPTION - ------ ----------- 99.1 July 24, 2006 Press Release
4 EX-99.1 2 k07072exv99w1.txt PRESS RELEASE, DATED JULY 24, 2006 EXHIBIT 99.1 (PRINCETON NATIONAL BANCORP, INC. LOGO) PRINCETON NATIONAL BANCORP, INC. OPENS NEW LOCATION AND INCREASES ASSETS AND NON-INTEREST INCOME PRINCETON, Illinois - July 24, 2006 - Princeton National Bancorp, Inc. (NASDAQ: PNBC) Tony J. Sorcic, President & CEO, announced today, "Total assets at June 30, 2006 were $942,527,000, a $14.1 million, or 1.5%, increase compared to March 31, 2006. In comparing total loans for the second quarter to the first quarter, a 2.0% increase was achieved bringing total loans to $578,336,000. In March of 2006, the Subsidiary Bank sold $16.5 million of mortgage loans (primarily adjustable rate) into the secondary market. During the second quarter, the Company was able to replace these loans with higher yielding loans, which will have a positive impact on the net interest margin. The Company's loan portfolio continues to be comprised of high-quality loans; net loan charge-offs (.07% annualized) during the first six months of 2006 were minimal." Sorcic continued, "During the second quarter of 2006, the Princeton National Bancorp, Inc. stock price reached a record high of $35.44 and closed the quarter at $32.65. This represents a 4.0% increase over the June 30, 2005 closing price of $31.38 and a 12.6% increase over the June 30, 2004 closing price of $29.00." Sorcic concluded, "The Aurora office opened on schedule on May 1, 2006. Although the hiring of the Aurora staff during the first quarter of 2006 created additional compensation expense, the long-term benefits of having the staff fully-trained when the facility opened outweighed the short-term negative impact of the additional salary expense. The Aurora area offers many new opportunities for the Company and we are excited about the prospects which are already in the pipeline." Total deposits ended the quarter at $830.4 million (including repurchase agreements), a $214.6 million increase from June 30, 2005 and a $2.4 million increase from December 31, 2005. In comparing total deposits to June 30, 2005, the Company attracted new core deposits totaling $21,774,000 and added $192,792,000 from the acquisition of Somonauk. Net income for the first six months of 2006 totaled $3,231,000, diluted earnings per share were $.95 and the return on average equity was 10.24%. Net income for the first six months of 2005 was $3,401,000, diluted earnings per share totaled $1.11 and the return on average equity was 13.13%. The subsidiary bank has met expectations by generating non-interest income and controlling expenses; however, the compressed net interest margin, due to a flat yield curve, continues to negatively impact net income. The net interest margin for the first six months of 2006 declined to 3.47% versus 3.90% for the same period in 2005. Due to the inverted yield curve, the Company's earning asset yield has not kept pace with its cost of funds. There is $43.9 million in the Company's commercial loan pipeline which, if the loans are added to the Company's loan portfolio, should have a positive impact on the net interest margin. Also, action plans have been implemented for the remainder of 2006 to generate additional non-interest income, increase interest income and reduce interest expense. The Company generated non-interest income of $5,148,000 during the first six months of 2006, an increase of 31.6% from $3,912,000 for the same period in 2005. Contributing to the improvement were increases in 5 service charges on deposits; gains on the sales of securities available for sale; brokerage fee income; mortgage banking income; the sale of mortgage loans (primarily adjustable rate), which realized a gain of $55,000 after tax; the sale of the Farmers State Bank credit card portfolio, which realized a gain of $41,000 after tax; and the sale of the Farm Management Department, which realized a gain of $64,000 after tax. Net income for the second quarter of 2006 was $1,581,000, diluted earnings per share totaled $.46 and the Return on Average Equity was 9.94%. Net income for the first quarter of 2006 was $1,650,000, diluted earnings per share totaled $.49 and the Return on Average Equity was 10.54%. Net income for the second quarter of 2005 was $1,693,000, diluted earnings per share totaled $.55 and the Return on Average Equity was 13.02%. Non-interest income for the second quarter was $2,640,000, an increase of 5.6% from $2,499,000 in the first quarter of 2006 and a 29.6% increase from $2,037,000 in the second quarter of 2005. For the twenty-fourth consecutive quarter, the Company's annualized non-interest income equaled or exceeded 1% of average assets. For additional financial information, please refer to the attached June 30, 2006 financials for Princeton National Bancorp, Inc. You may also visit our website at www.pnbc-inc.com to obtain financial information, as well as press releases, stock prices and information on the Company. In April 2006, the Company announced a 100,000 share stock repurchase program. The Company purchased 25,000 shares during the second quarter at an average price of $34.51. Since 1997, the Company has repurchased 1,259,271 shares of common stock through stock repurchase programs. The Annual Meeting of the Company was held on April 25, 2006. The following directors were elected to serve until the 2009 Annual Meeting: Gary Bruce, John Ernat, Thomas Longman and Tony J. Sorcic. The Company offers shareholders the opportunity to participate in the Princeton National Bancorp, Inc. Dividend Reinvestment and Stock Purchase Plan. To obtain information about the plan, please contact us at 815-875-4445, extension 650. Princeton National Bancorp, Inc. is a $942.5 million community bank with strategic locations in 7 counties in northern Illinois. The Company is well-positioned in the high growth counties of Kendall, Kane, Grundy, DeKalb, and LaSalle plus Bureau and Marshall. Communities include: Aurora, DePue, Genoa, Hampshire, Henry, Huntley, Millbrook, Minooka, Newark, Oglesby, Peru, Plano, Princeton, Sandwich, Somonauk and Spring Valley. 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
June 30, December 31, (dollars in thousands, except share data) 2006 2005 ----------- ------------ (unaudited) ASSETS Cash and due from banks $ 18,143 $ 23,635 Interest-bearing deposits with financial institutions 88 110 Federal funds sold 7,400 0 ---------- ---------- Total cash and cash equivalents 25,631 23,745 Loans held for sale, at lower of cost or market 3,613 2,587 Investment securities available-for-sale, at fair value 230,897 235,371 Investment securities held-to-maturity, at amortized cost 16,636 16,115 ---------- ---------- Total investment securities 247,533 251,486 Loans, net of unearned interest 578,336 581,724 Allowance for loan losses (3,080) (3,109) ---------- ---------- Net loans 575,256 578,615 Premises and equipment, net 27,626 26,412 Bank-owned life insurance 21,427 20,434 Interest receivable 8,031 8,714 Goodwill, net of accumulated amortization 22,678 22,665 Intangible assets, net of accumulated amortization 6,382 6,843 Other real estate owned 447 468 Other assets 3,903 3,294 ---------- ---------- TOTAL ASSETS $ 942,527 $ 945,263 ========== ========== LIABILITIES Demand deposits $ 98,696 $ 103,622 Interest-bearing demand deposits 211,666 222,675 Savings deposits 118,231 109,491 Time deposits 373,734 362,770 ---------- ---------- Total deposits 802,327 798,558 Customer repurchase agreements 28,025 29,375 Advances from the Federal Home Loan Bank 7,358 8,346 Interest-bearing demand notes issued to the U.S. Treasury 301 2,154 Federal funds purchased 0 1,000 Trust Preferred securities 25,000 25,000 Note payable 6,600 6,700 ---------- ---------- Total borrowings 67,284 72,575 Other liabilities 9,189 10,986 ---------- ---------- Total liabilities 878,800 882,119 ---------- ---------- STOCKHOLDERS' EQUITY Common stock 22,392 22,392 Surplus 17,985 16,968 Retained earnings 46,801 45,786 Accumulated other comprehensive loss, net of tax (2,106) (482) Less: Treasury stock (21,345) (21,520) ---------- ---------- Total stockholders' equity 63,727 63,144 ---------- ---------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 942,527 $ 945,263 ========== ========== CAPITAL STATISTICS (UNAUDITED) YTD average equity to average assets 6.83% 7.21% Tier 1 leverage capital ratio 6.82% 6.46% Tier 1 risk-based capital ratio 9.46% 9.26% Total risk-based capital ratio 9.93% 9.76% Book value per share $ 18.87 $ 18.87 Closing market price per share $ 32.65 $ 33.25 End of period shares outstanding 3,376,928 3,346,443 End of period treasury shares outstanding 1,101,367 1,131,853
(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, 2006 June 30, 2005 June 30, 2006 June 30, 2005 ------------- ------------- ------------- ------------- INTEREST INCOME Interest and fees on loans $ 10,102 $ 6,772 $ 19,845 $ 13,063 Interest and dividends on investment securities 2,587 1,714 5,139 3,419 Interest on federal funds sold 137 9 151 10 Interest on interest-bearing time deposits in other banks 13 8 17 9 ---------- ---------- ---------- ---------- Total Interest Income 12,839 8,503 25,152 16,501 ---------- ---------- ---------- ---------- INTEREST EXPENSE Interest on deposits 5,485 2,791 10,339 5,232 Interest on borrowings 900 217 1,830 399 ---------- ---------- ---------- ---------- Total Interest Expense 6,385 3,008 12,169 5,631 ---------- ---------- ---------- ---------- NET INTEREST INCOME 6,454 5,495 12,983 10,870 Provision for loan losses 85 0 95 0 ---------- ---------- ---------- ---------- NET INTEREST INCOME AFTER PROVISION 6,369 5,495 12,888 10,870 ---------- ---------- ---------- ---------- NON-INTEREST INCOME Trust & farm management fees 453 431 857 828 Service charges on deposit accounts 1,104 772 2,101 1,480 Other service charges 445 334 836 596 Gain on sales of securities available-for-sale 0 8 60 28 Gain on sale of loans 0 0 90 0 Brokerage fee income 218 132 362 292 Mortgage banking income 200 198 386 329 Bank-owned life insurance 190 137 376 276 Other operating income 30 25 80 83 ---------- ---------- ---------- ---------- Total Non-Interest Income 2,640 2,037 5,148 3,912 ---------- ---------- ---------- ---------- NON-INTEREST EXPENSE Salaries and employee benefits 3,976 3,033 8,008 5,987 Occupancy 464 334 935 676 Equipment expense 716 459 1,421 924 Federal insurance assessments 79 58 158 116 Intangible assets amortization 163 52 326 104 Data processing 282 209 587 403 Advertising 218 162 413 318 Other operating expense 1,248 992 2,389 1,768 ---------- ---------- ---------- ---------- Total Non-Interest Expense 7,146 5,299 14,237 10,296 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 1,863 2,233 3,799 4,486 Income tax expense 282 540 568 1,085 ---------- ---------- ---------- ---------- NET INCOME $ 1,581 $ 1,693 $ 3,231 $ 3,401 ========== ========== ========== ========== NET INCOME PER SHARE: BASIC $ 0.47 $ 0.56 $ 0.96 $ 1.12 DILUTED $ 0.46 $ 0.55 $ 0.95 $ 1.11 Basic weighted average shares outstanding 3,383,711 3,033,563 3,373,080 3,044,233 Diluted weighted average shares outstanding 3,406,621 3,058,252 3,395,381 3,067,653 PERFORMANCE RATIOS (ANNUALIZED) Return on average assets 0.68% 1.01% 0.70% 1.04% Return on average equity 9.94% 13.02% 10.24% 13.13% Net interest margin (tax-equivalent) 3.43% 3.88% 3.47% 3.90% Efficiency ratio (tax-equivalent) 73.61% 66.65% 73.48% 65.96% ASSET QUALITY Net loan charge-offs $ 76 $ 11 $ 204 $ 22 Total non-performing loans $ 4,389 $ 2,024 $ 4,389 $ 2,024 Non-performing loans as a % of total loans 0.76% 0.47% 0.76% 0.47%
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