Exhibit 99.1

Princeton National Bancorp, Inc. Increases Earnings Per Share 13.0%

PRINCETON, ILLINOIS – October 23, 2007 – Princeton National Bancorp, Inc. (NASDAQ: PNBC) reported third quarter fully diluted earnings per share increased 13.0% to $.52 from $.46 in the second quarter of 2007 and 10.6% from the third quarter of 2006. Third quarter net income increased 12.1% to $1,740,354 from $1,552,810 in the second quarter and 8.3% from $1,607,414 in the third quarter of 2006.

“The results for the third quarter were very encouraging,” said Tony J. Sorcic, President and Chief Executive Officer. “The net interest margin increased 8 basis points from the second quarter, non-interest income increased 7.8%, and the return on average equity increased 11.4%. Based on the September 30^th level of interest-earning assets, the improvement in the net interest margin equates to an increase in net (annualized pre-tax) interest income of $747,000. Management believes the net interest margin will continue to improve during the remainder of the year; however, if there is another prime rate decrease in the fourth quarter, the net interest margin will again be under pressure.”

Non-interest income for the quarter was $2,935,000. As stated above, this represents a 7.8% increase from the second quarter and a 14.5% increase from the third quarter of 2006. The Company’s non-interest income has equaled or exceeded 1% of average assets for 29 consecutive quarters. Non-interest income growth continues to be an integral component of the Company’s success.

As a percentage of average assets, non-interest expense was 2.85% for the third quarter, a decrease from 2.88% for the second quarter. The non-interest expense as a percentage of average assets for the nine months ending September 30, 2007 was 2.87%. Operating expenses are well-controlled and emphasis will continue to be placed on improving efficiencies. The last time the Company was at this level for an entire year was 1993.

Significant improvement has been seen in the return on average equity in 2007. The first quarter return on average equity was 8.80%, and increased to 9.56% in the second quarter and 10.65% in the third quarter. Continued improvement in the return on average equity is anticipated in the fourth quarter.

When comparing the first nine months of 2007 to the same period in 2006, non-interest income of $8,302,000 increased 7.6% and net interest income of $19,829,000 increased 2.4%, while net income decreased 2.4% to $4,723,000 and fully diluted earnings per share decreased 1.4% to $1.41.

Assets at September 30, 2007 were $1.060 billion, representing growth of $28.1 million, or 2.7%, since December 31, 2006. During the first nine months of 2007, total loans increased

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$60.8 million, ending the quarter at $690,228,000. The loan-to-asset ratio increased to 65.1% at September 30, 2007 from 61.0% at December 31, 2006, and was as high as 67.3% during the quarter. The decision of the Subsidiary Bank to fund loans with maturities from the investment portfolio, rather than exclusively through deposit growth, has had a positive impact on the net interest margin. The investment portfolio has decreased $45.3 million since year-end 2006. The Subsidiary Bank currently has $71.3 million in its commercial banking pipeline, which, if funded, should help fuel continued improvement in the net interest margin. The non-performing loans represent 0.93% of the total loan portfolio at September 30, 2007. The Subsidiary Bank has no sub-prime loans in the loan portfolio.

The Company ended the third quarter of 2007 with total deposits and repurchase agreements of $935.6 million, a $22.4 million increase from $913.2 million at December 31, 2006. As stated in previous reports, the increase occurred primarily in checking, time deposit, repurchase agreements and money market accounts.

The banking environment has shown significant improvement, although the net interest margin continues to be below historical levels. Our priorities in the fourth quarter will be: continuing the growth trend in the loan portfolio; increasing non-interest income; attracting core deposits (especially non-interest bearing deposits); and improving earnings per share. Management is focused on building franchise value through the execution of the Company’s strategy. The staff of the Subsidiary Bank is committed to being the best community bank in each of the markets served. Additional financial information is available at www.pnbc-inc.com.

The Company has not purchased any shares under the 50,000 share Stock Repurchase Plan which was announced on April 24, 2007. The Company currently has 3,316,224 outstanding shares of common stock. Since 1997, the Company has repurchased a total of 1,334,271 shares through stock repurchase programs.

The Company offers shareholders the opportunity to participate in the Princeton National Bancorp, Inc. Dividend Reinvestment and Stock Purchase Plan. The Company also offers electronic direct deposit of dividends. To obtain information about the stock purchase plan or electronic direct deposit, please contact us at 815-875-4445, extension 650.

Princeton National Bancorp, Inc. is the parent holding company of Citizens First National Bank, a $1.060 billion community bank with strategic locations in 8 counties in northern Illinois. The Company is well-positioned in the high growth counties of Will, Kendall, Kane, Grundy, DeKalb and LaSalle plus Bureau and Marshall. Communities include: Aurora, DePue, Genoa, Hampshire, Henry, Huntley, Millbrook, Minooka, Newark, Oglesby, Peru, Plainfield, 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

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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

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CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)

	September 30,
	2007			December 31,
	(unaudited)			2006
ASSETS
Cash and due from banks	$	23,398		$	33,882
Interest-bearing deposits with financial institutions		8,423			103
Federal funds sold		17,700			5,200
Total cash and cash equivalents		49,521			39,185
Loans held for sale, at lower of cost or market		939			4,512
Investment securities available-for-sale, at fair value		206,682			252,467
Investment securities held-to-maturity, at amortized cost		15,973			15,449
Total investment securities		222,655			267,916
Loans, net of unearned interest		690,228			629,472
Allowance for loan losses		(3,221	)		(3,053	)
Net loans		687,007			626,419
Premises and equipment, net		32,638			28,670
Bank-owned life insurance		22,324			21,470
Interest receivable		10,575			11,139
Goodwill, net of accumulated amortization		24,521			23,029
Intangible assets, net of accumulated amortization		5,317			5,921
Other real estate owned		701			0
Other assets		3,895			3,698
TOTAL ASSETS	$	1,060,093		$	1,031,959
LIABILITIES
Demand deposits	$	91,186		$	107,834
Interest-bearing demand deposits		258,911			231,953
Savings deposits		115,410			116,246
Time deposits		436,111			425,866
Total deposits		901,618			881,899
Customer repurchase agreements		33,978			31,344
Advances from the Federal Home Loan Bank		6,980			6,970
Interest-bearing demand notes issued to the U.S. Treasury		2,387			2,333
Federal funds purchased		0			0
Trust Preferred securities		25,000			25,000
Note payable		13,050			8,500
Total borrowings		81,395			74,147
Other liabilities		10,532			10,558
Total liabilities		993,545			966,604
STOCKHOLDERS’ EQUITY
Common stock		22,391			22,391
Surplus		18,246			18,158
Retained earnings		50,126			48,109
Accumulated other comprehensive loss, net of tax		(750	)		(960	)
Less: Treasury stock		(23,465	)		(22,343	)
Total stockholders’ equity		66,548			65,355
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,060,093		$	1,031,959
CAPITAL STATISTICS (UNAUDITED)
YTD average equity to average assets		6.35	%		6.70	%
Tier 1 leverage capital ratio		6.23	%		6.33	%
Tier 1 risk-based capital ratio		8.19	%		8.75	%
Total risk-based capital ratio		8.61	%		9.18	%
Book value per share	$	20.07		$	19.50
Closing market price per share	$	26.18		$	32.55
End of period shares outstanding		3,316,224			3,351,410
End of period treasury shares outstanding		1,162,071			1,126,885

CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share data)

	THREE MONTHS			THREE MONTHS			NINE MONTHS			NINE MONTHS
	ENDED			ENDED			ENDED			ENDED
	September 30, 2007			September 30, 2006			September 30, 2007			September 30, 2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
INTEREST INCOME
Interest and fees on loans	$	12,980		$	10,714		$	36,880		$	30,559
Interest and dividends on investment securities		2,619			2,767			8,472			7,905
Interest on federal funds sold		24			206			246			357
Interest on interest-bearing time deposits in other banks		9			59			85			77
Total Interest Income		15,632			13,746			45,683			38,898
INTEREST EXPENSE
Interest on deposits		7,677			6,397			22,777			16,736
Interest on borrowings		1,105			961			3,077			2,791
Total Interest Expense		8,782			7,358			25,854			19,527
Net interest income		6,850			6,388			19,829			19,371
Provision for loan losses		250			80			550			175
Net interest income after provision		6,600			6,308			19,279			19,196
NON-INTEREST INCOME
Trust & farm management fees		353			300			1,124			1,158
Service charges on deposit accounts		1,174			1,065			3,259			3,166
Other service charges		535			501			1,492			1,336
Gain on sales of securities available-for-sale		149			98			358			158
Gain on sale of loans		0			0			0			90
Brokerage fee income		224			201			641			563
Mortgage banking income		257			149			666			536
Bank-owned life insurance		203			205			608			581
Other operating income		40			45			154			125
Total Non-Interest Income		2,935			2,564			8,302			7,713
NON-INTEREST EXPENSE
Salaries and employee benefits		4,257			3,936			12,574			11,944
Occupancy		569			523			1,770			1,458
Equipment expense		756			717			2,371			2,138
Federal insurance assessments		84			78			254			236
Intangible assets amortization		177			163			528			488
Data processing		268			194			797			781
Advertising		188			220			539			634
Other operating expense		1,088			1,135			3,219			3,525
Total Non-Interest Expense		7,387			6,966			22,052			21,204
Income before income taxes		2,148			1,906			5,529			5,705
Income tax expense		408			299			806			867
Net income	$	1,740		$	1,607		$	4,723		$	4,838
Net income per share:
BASIC	$	0.53		$	0.48		$	1.42		$	1.43
DILUTED	$	0.52		$	0.47		$	1.41		$	1.43
Basic weighted average shares outstanding		3,314,913			3,372,188			3,331,852			3,372,780
Diluted weighted average shares outstanding		3,322,292			3,393,341			3,342,689			3,394,517
PERFORMANCE RATIOS (annualized)
Return on average assets		0.67	%		0.66	%		0.61	%		0.69	%
Return on average equity		10.65	%		9.90	%		9.67	%		10.12	%
Net interest margin (tax-equivalent)		3.23	%		3.23	%		3.17	%		3.39	%
Efficiency ratio (tax-equivalent)		71.45	%		72.86	%		73.80	%		73.27	%
ASSET QUALITY
Net loan charge-offs	$	139		$	(4	)	$	382		$	201
Total non-performing loans	$	6,408		$	4,125		$	6,408		$	4,125
Non-performing loans as a % of total loans		0.93	%		0.70	%		0.93	%		0.70	%