PNBC increases earnings per share
PRINCETON — Princeton National Bancorp Inc. reported 2008 year-to-date fully diluted earnings per share increased 34.8 percent to $1.90 from $1.41 in the same period in 2007. Net income for the first nine months of 2008 increased 33.4 percent to $6,298,000 from $4,723,000 in 2007.
“Princeton National Bancorp Inc. has consistently generated positive results during the first nine months of 2008,” said Tony J. Sorcic, president and chief executive officer. “The net interest margin increased 9.2 percent to 3.46 percent compared to 3.17 percent for the nine months ending Sept. 30, 2007. As a result, year-to-date net interest income of $23,443,000 represents an increase of 18.2 percent. Based on the Sept. 30 level of interest-earning assets compared to Dec. 31, 2007, the improvement in the net interest margin and growth in interest earning assets equates to an increase in net (annualized pre-tax) interest income of $3,900,000. Management is very pleased with the improvement which has been generated.”
Sorcic continued, “Non-interest income of $8,755,000 for the first nine months of 2008 represents a 5.5 percent increase from the first nine months of 2007. One area that has contributed to the consistent results in non-interest income is mortgage banking income. During a time when many financial institutions are experiencing significant declines in their mortgage banking income, the company experienced a 32 percent increase in 2008 and has exceeded its year-end volume goal. Our fixed rate mortgage loans have always been and will continue to be written to conforming standards of the secondary market.”
As a percentage of average assets, non-interest expense for the nine months ending Sept. 30, was 2.77 percent, the lowest it has been since the late 1980s.
Significant improvement has been seen in the return on average equity in 2008. The return on average equity for the first nine months is 12.17 percent, compared to 9.67 percent for the same nine month period in 2007. Consistent results have been achieved in 2008 as the return on average equity was 12.22 percent in the first quarter, 11.71 percent in the second quarter and 12.54 percent in the third quarter.
Net income for the third quarter of 2008 increased 8.3 percent from the second quarter of 2008 to $2,187,000 and 25.7 percent from the third quarter of 2007. Fully diluted earnings per share for the third quarter of 2008 were $.66, compared to $.61 in the second quarter of 2008 and $.52 in the third quarter of 2007.
Assets at Sept. 30 were $1.124 billion, representing growth of $42.9 million, or 4.0 percent, since Dec. 31, 2007. During the first nine months of 2008, total loans increased $39.5 million, ending the quarter at $762.1 million. The loan-to-asset ratio increased to 67.83 percent at Sept. 30, from 66.87 percent at Dec. 31, 2007. The investment portfolio has increased $13.1 million since year-end 2007. Non-performing loans total $16.4 million and represent 2.2 percent of the total loan portfolio at Sept. 30. However, net loan charge-offs equaled $103,000 or on an annualized level of just 0.06 percent of the loan portfolio. The subsidiary bank has no sub-prime loans in the loan portfolio or as underlying collateral in the investment portfolio and the subsidiary bank has maintained its high quality underwriting standards.
The board of directors of Princeton National Bancorp Inc. approved a 50,000 share, or about 1.50 percent, stock repurchase program on Oct. 27. Under the plan, the company will repurchase up to 50,000 shares of its outstanding shares of common stock in the open market or in private transactions over the next 12 months. Purchases will be dependent upon market conditions and the availability of shares. The company currently has 3,296,669 outstanding shares of common stock. Since 1997, the company has repurchased a total of 1,364,271 shares through stock repurchase programs.
Financial stocks, in general, continue to be negatively impacted by the poor earnings reports, due to compressed net interest margins, loan charge-offs, and sub-prime loan issues. Princeton National Bancorp Inc.’s stock price closed at $25.01 on Sept. 30, compared to $24.25 on Dec. 31, 2007, and $26.18 on Sept. 30, 2007.
Princeton National Bancorp Inc. is the parent holding company of Citizens First National Bank, a $1.124 billion community bank with locations in Will, Kendall, Kane, Grundy, DeKalb, LaSalle, Bureau and Marshall counties. Communities include Aurora, DePue, Genoa, Hampshire, Henry, Huntley, Millbrook, Minooka, Newark, Oglesby, Peru, Plainfield, Plano, Princeton, Sandwich, Somonauk and Spring Valley.
