Exhibit 99.1

Princeton National Bancorp, Inc.
4^th Quarter Earnings Improve 17.7%

PRINCETON, Illinois – January 28, 2008 – Princeton National Bancorp, Inc. (NASDAQ: PNBC)

Tony J. Sorcic, President & CEO, stated, “The Company is very pleased to announce the outstanding results generated in the fourth quarter of 2007. Net income was $2,048,000, fully diluted earnings per share totaled $.62, and the return on average equity was 12.18%. This is an improvement of 17.7%, 19.2% and 14.4%, respectively, from the third quarter of 2007.”

Sorcic continued, “Net income for 2007 was $6,770,000, a 4.4% increase from 2006 net income of $6,488,000. Significant progress was made during 2007, as net income of $1,429,000 in the first quarter increased 8.7% to $1,553,000 in the second quarter, 12.1% to $1,740,000 in the third quarter, and 17.7% to $2,048,000 in the fourth quarter. In comparing the fourth quarter of 2007 to the first quarter, there was a 43.3% increase in net income. The Bank’s plan to increase the net interest margin was executed, with the outcome being a steady improvement throughout 2007. Net interest income for 2007 was $27,054,000 compared to $25,896,000 in 2006.

Sorcic continued, “There was also consistent improvement in the diluted earnings per share during the year. Diluted earnings per share for 2007 totaled $2.03, an improvement of 6.3% from $1.91 in 2006. The return on average equity for 2007 increased to 10.32% from 10.07% in 2006.”

Princeton National Bancorp, Inc. also reached a record level of total assets at $1.081 billion as of December 31, 2007. This represents growth of 4.7% when compared to total assets at December 31, 2006 of $1.032 billion. The Company’s loan portfolio grew $93.2 million over the last twelve months. Growth was experienced in existing offices, as well as from the acquisition of the Plainfield office of HomeStar Bank, Manteno, Illinois which was completed in February 2007. The Company’s loan portfolio continues to be high-quality and had minimal loan charge-offs during the year. Non-performing loans represent 1.03% of the total loan portfolio at December 31, 2007. The funding of loans was achieved primarily through maturing securities in the investment portfolio and secondarily through deposit growth. This resulted in the loan to asset ratio improving to 66.9% at December 31, 2007 from 61.0% one year earlier.

Non-interest income increased $1,053,000 in 2007 to $11,298,000 compared to $10,245,000 in 2006. Growth was generated in service charges on deposits ($196,000), brokerage fee income ($184,000), mortgage banking income ($148,000), other service charges (184,000), and income from bank owned life insurance ($46,000). The Company’s non-interest income exceeded 1% of average assets for the year 2007. Non-interest expense, although slightly higher than 2006, represents 2.85% of total assets compared to 2.95% in 2006 and was below budgeted expectations.

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The Company ended 2007 with total deposits and repurchase agreements of $925.6 million, an increase from $913.2 million at year-end 2006.

During 2007, the Company purchased 50,000 shares under the Stock Repurchase Plans at an average price of $29.19 per share. Since 1997, the Company has repurchased 1,344,271 shares of common stock through stock repurchase programs.

The stock price closed the year at $24.25, a decrease from the December 31, 2006 stock price of $32.55. The decrease in the PNBC stock price is reflective of the banking industry as a whole. The Subsidiary Bank does not have sub-prime loans in its loan portfolio or as underlying collateral within the investment portfolio.

For additional financial information, please refer to the attached December 31, 2007 financial statements 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.

The Company has set its annual meeting date for April 29, 2008 at 10:00 A.M. at The Galleria Convention Center in Princeton, Illinois. The record date for the Annual Meeting will be February 29, 2008.

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 $1.081 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 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)

	December 31,			December 31,
REVISED	2007			2006
	(unaudited)
ASSETS
Cash and due from banks	$	25,801		$	33,882
Interest-bearing deposits with financial institutions		1,803			103
Federal funds sold		0			5,200
Total cash and cash equivalents		27,604			39,185
Loans held for sale, at lower of cost or market		928			4,512
Investment securities available-for-sale, at fair value		218,095			252,467
Investment securities held-to-maturity, at amortized cost		14,578			15,449
Total investment securities		232,673			267,916
Loans, net of unearned interest		722,647			629,472
Allowance for loan losses		(3,248	)		(3,053	)
Net loans		719,399			626,419
Premises and equipment, net		30,801			28,670
Land held for sale, at lower of cost or market		1,344			0
Bank-owned life insurance		22,461			21,470
Interest receivable		10,876			11,139
Goodwill, net of accumulated amortization		24,521			23,029
Intangible assets, net of accumulated amortization		5,090			5,921
Other real estate owned		833			0
Other assets		4,172			3,698
TOTAL ASSETS	$	1,080,702		$	1,031,959
LIABILITIES
Demand deposits	$	102,452		$	107,834
Interest-bearing demand deposits		241,749			231,953
Savings deposits		58,401			66,060
Time deposits		488,805			476,052
Total deposits		891,407			881,899
Customer repurchase agreements		34,217			31,344
Advances from the Federal Home Loan Bank		6,984			6,970
Interest-bearing demand notes issued to the U.S. Treasury		1,838			2,333
Federal funds purchased		26,500			0
Trust Preferred securities		25,000			25,000
Note payable		14,550			8,500
Total borrowings		109,089			74,147
Other liabilities		11,864			10,558
Total liabilities		1,012,360			966,604
STOCKHOLDERS’ EQUITY
Common stock		22,391			22,391
Surplus		18,275			18,158
Retained earnings		51,279			48,109
Accumulated other comprehensive loss, net of tax		79			(960	)
Less: Treasury stock		(23,682	)		(22,343	)
Total stockholders’ equity		68,342			65,355
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,080,702		$	1,031,959
CAPITAL STATISTICS (UNAUDITED)
YTD average equity to average assets		6.33	%		6.70	%
Tier 1 leverage capital ratio		6.16	%		6.33	%
Tier 1 risk-based capital ratio		8.00	%		8.75	%
Total risk-based capital ratio		8.41	%		9.18	%
Book value per share	$	20.66		$	19.50
Closing market price per share	$	24.25		$	32.55
End of period shares outstanding		3,308,447			3,351,410
End of period treasury shares outstanding		1,169,848			1,126,885

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

	THREE MONTHS			THREE MONTHS			FOR THE YEAR			FOR THE YEAR
	ENDED			ENDED			ENDED			ENDED
	December 31, 2007			December 31, 2006			December 31, 2007			December 31, 2006
REVISED	(unaudited)			(unaudited)			(unaudited)			(unaudited)
INTEREST INCOME
Interest and fees on loans	$	13,102		$	11,365		$	49,982		$	41,923
Interest and dividends on investment securities		2,652			3,085			11,124			10,990
Interest on federal funds sold		86			142			332			499
Interest on interest-bearing time deposits in other banks		37			37			121			114
Total Interest Income		15,877			14,629			61,559			53,526
INTEREST EXPENSE
Interest on deposits		7,547			7,107			30,324			23,843
Interest on borrowings		1,105			997			4,181			3,787
Total Interest Expense		8,652			8,104			34,505			27,630
Net interest income		7,225			6,525			27,054			25,896
Provision for loan losses		90			110			640			285
Net interest income after provision		7,135			6,415			26,414			25,611
NON-INTEREST INCOME
Trust & farm management fees		382			309			1,507			1,467
Service charges on deposit accounts		1,173			1,069			4,431			4,235
Other service charges		473			445			1,966			1,782
Gain on sales of securities available-for-sale		183			92			541			250
Gain on sale of loans		0			0			0			90
Brokerage fee income		279			174			920			736
Mortgage banking income		237			220			903			755
Bank-owned life insurance		208			188			816			770
Other operating income		61			35			214			160
Total Non-Interest Income		2,996			2,532			11,298			10,245
NON-INTEREST EXPENSE
Salaries and employee benefits		4,300			3,940			16,874			15,884
Occupancy		623			527			2,393			1,985
Equipment expense		788			795			3,158			2,933
Federal insurance assessments		83			78			338			313
Intangible assets amortization		176			163			704			651
Data processing		304			251			1,101			1,032
Advertising		183			207			722			841
Other operating expense		1,055			1,171			4,275			4,696
Total Non-Interest Expense		7,512			7,132			29,565			28,335
Income before income taxes		2,619			1,815			8,147			7,521
Income tax expense		571			165			1,377			1,033
Net income	$	2,048		$	1,650		$	6,770		$	6,488
Net income per share:
BASIC	$	0.62		$	0.49		$	2.04		$	1.93
DILUTED	$	0.62		$	0.49		$	2.03		$	1.91
Basic weighted average shares outstanding		3,310,487			3,360,033			3,326,467			3,369,567
Diluted weighted average shares outstanding		3,316,573			3,379,394			3,334,507			3,389,765
PERFORMANCE RATIOS (annualized)
Return on average assets		0.77	%		0.65	%		0.65	%		0.68	%
Return on average equity		12.18	%		9.92	%		10.32	%		10.07	%
Net interest margin (tax-equivalent)		3.29	%		3.16	%		3.20	%		3.33	%
Efficiency ratio (tax-equivalent)		69.69	%		73.64	%		72.72	%		73.36	%
ASSET QUALITY
Net loan charge-offs	$	64		$	221		$	445		$	422
Total non-performing loans	$	7,434		$	3,926		$	7,434		$	3,926
Non-performing loans as a % of total loans		1.03	%		0.62	%		1.03	%		0.62	%