FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
Commission File No. 0-20050
Princeton National Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware 36-32110283
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
606 S. Main Street, Princeton, IL 61356
(Address of principal executive offices and Zip Code)
(815) 875-4444
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
As of July 23, 1998, the registrant had outstanding 3,971,741 shares of its
$5 par value common stock.
Page 1 of 14 pages
<PAGE>
Part I: FINANCIAL INFORMATION
The consolidated financial statements of Princeton National Bancorp, Inc.
and Subsidiary and management's discussion and analysis of financial condition
and results of operations are presented in the schedules as follows:
Schedule 1: Consolidated Balance Sheets
Schedule 2: Consolidated Statements of Income and Comprehensive Income
Schedule 3: Consolidated Statements of Stockholders' Equity
Schedule 4: Consolidated Statements of Cash Flows
Schedule 5: Note to Consolidated Financial Statements
Schedule 6: Management's Discussion and Analysis of
Financial Condition and Results of Operations
Part II: OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Shareholders of Princeton National Bancorp, Inc. was
held on April 14, 1998, for the purpose of electing three directors each to
serve for a term of three years and approving a stock option plan. Proxies for
the meeting were solicited by Management pursuant to Regulation 14A under the
Securities Exchange Act of 1934, and there was no solicitation in opposition to
Management's solicitation.
All three of Management's nominees for director listed in the proxy
statement were elected. The results of the vote were as follows:
<TABLE>
<CAPTION>
Shares
Voted Shares
For Withheld Abstain
------- ---------- -------
<S> <C> <C> <C>
Harold C. Hutchison, Jr. 2,319,491 16,820 8,800
Thomas R. Lasier 2,336,311 0 8,800
Stephen W. Samet 2,294,618 41,693 8,800
</TABLE>
The results of the vote for the stock option plan were as follows (the plan
was approved):
<TABLE>
<CAPTION>
For Against Abstain
-------- ------- -------
<S> <C> <C> <C>
Stock Option Plan 1,832,659 310,655 65,043
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 - Financial Data Schedule for the period ended June 30, 1998.
(b) No reports on Form 8-K were filed during the quarter ended June 30,
1998.
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 thereunto duly authorized.
PRINCETON NATIONAL BANCORP, INC.
Date: July 31, 1998 By /s/ Tony J. Sorcic
------------------------------------
Tony J. Sorcic
President & Chief Executive Officer
Date: July 31, 1998 By /s/ Todd D. Fanning
------------------------------------
Todd D. Fanning
Chief Financial Officer
2
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 1
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
--------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $ 12,377 $ 21,268
Short-term funds 14,895 11,900
Loans held for sale 1,643 1,576
Investment securities:
Available-for-sale, at fair value 113,635 107,042
Held-to-maturity (fair value of
$13,166 and $12,661 at June 30, 1998
and December 31, 1997, respectively) 13,016 12,498
-------- --------
Total investment securities 126,651 119,540
-------- --------
Loans:
Gross loans 276,541 274,725
Less: Unearned interest (73) (120)
Allowance for possible loan losses (1,894) (1,830)
-------- --------
Net loans 274,574 272,775
-------- --------
Premises and equipment 8,928 8,752
Interest receivable 5,124 5,808
Goodwill and intangible assets, net of
accumulated amortization 5,124 5,272
Other assets 3,212 2,769
-------- --------
TOTAL ASSETS $452,528 $449,660
-------- --------
-------- --------
LIABILITIES
Deposits:
Demand $ 36,797 $ 42,333
Interest-bearing demand 86,498 87,364
Savings 54,090 52,193
Time 197,326 204,050
-------- --------
Total deposits 374,711 385,940
Short-term borrowings 30,102 13,237
Long-term borrowings 0 3,750
Other liabilities 4,271 4,065
-------- --------
TOTAL LIABILITIES 409,084 406,992
-------- --------
STOCKHOLDERS' EQUITY
Common stock: $5 par value, 7,000,000
shares authorized; 4,139,841 issued at
June 30, 1998 and 4,139,917 issued at
December 31, 1997 20,700 20,700
Surplus 6,232 6,235
Retained earnings 18,278 16,869
Accumulated other comprehensive income,
net of tax 540 560
Less: Cost of 168,100 treasury shares at
June 30, 1998 and 123,604 treasury shares
at December 31, 1997 (2,306) (1,396)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 43,444 42,968
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $452,528 $449,960
-------- --------
-------- --------
</TABLE>
See accompanying note to consolidated financial statements
3
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 2
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(Unaudited) For the Three Months For the Six Months
(In thousands, except share data) Ended June 30 Ended June 30
1998 1997 1998 1997
------ ------ ------ ------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 6,242 $ 6,002 $ 12,366 $ 11,709
Interest and dividends on
investment securities 1,822 1,647 3,577 3,281
Interest on short-term funds 74 34 160 84
--------- --------- --------- ---------
Total interest income 8,138 7,683 16,103 15,074
Interest expense:
Interest on deposits 3,769 3,534 7,549 6,932
Interest on short-term
borrowings 270 98 443 192
Interest on long-term
borrowings 6 90 86 180
--------- --------- --------- --------
Total interest expense 4,045 3,722 8,078 7,304
--------- --------- --------- --------
Net interest income 4,093 3,961 8,025 7,770
Provision for possible loan
losses 73 207 128 312
--------- --------- --------- --------
Net interest income after
provision for possible
loan losses 4,020 3,754 7,897 7,458
Non-interest income:
Trust & farm management
fees 296 246 625 555
Service charges on deposit
accounts 372 333 697 653
Other service charges 132 108 250 210
Gain (loss) on sales of
securities 11 71 21 68
Loan servicing fees and
other charges 84 40 159 70
Other operating income 69 40 165 123
-------- --------- --------- ---------
Total non-interest
income 964 838 1,917 1,679
Non-interest expense:
Salaries and employee
benefits 1,796 1,653 3,600 3,319
Occupancy 249 238 500 487
Equipment expense 201 230 397 455
FDIC/OCC assessments 48 45 94 54
Goodwill and intangible
assets amortization 117 116 234 234
Data processing 118 165 290 332
Other operating expense 804 658 1,562 1,316
--------- --------- --------- ---------
Total non-interest
expense 3,333 3,105 6,677 6,197
--------- --------- --------- ---------
Income before income taxes 1,651 1,487 3,137 2,940
Income tax expense 433 390 814 766
--------- --------- --------- ---------
Net income $ 1,218 $ 1,097 $ 2,323 $ 2,174
--------- --------- --------- ---------
--------- --------- --------- ---------
Basic and diluted earnings
per share: 0.31 0.27 0.58 0.53
Weighted average shares
outstanding 3,993,123 4,086,914 4,003,129 4,086,440
Dividends per share 0.08 0.07 0.16 0.14
</TABLE>
See accompanying note to consolidated financial statements
4
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
(Unaudited)
(In thousands, except share data)
For the Three Months For the Six Months
Ended June 30 Ended June 30
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Income $1,218 $1,097 $2,323 $2,174
Other comprehensive
income, net of tax
Unrealized gains on
securities:
Unrealized holding
gain (loss)
arising during
the period 64 433 1 75
Less:
Reclassification
adjustment for
gains included
in net income 11 71 21 68
------ ------ ------ ------
Other comprehensive
income 53 362 (20) 7
------ ------ ------ ------
Comprehensive income $1,271 $1,459 $2,303 $2,181
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
See accompanying note to consolidated financial statements
5
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 3
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
For the Six Months
Ended June 30
1998 1997
--------- ---------
(In thousands)
<S> <C> <C>
Balance, January 1 $42,668 $40,197
Net income 2,323 2,174
Cash dividends (616) (545)
Other comprehensive income, net of tax (20) 7
Purchases of treasury stock (931) 0
Sales of treasury stock 20 32
------- -------
Balance, June 30 $43,444 $41,865
------- -------
------- -------
</TABLE>
See accompanying note to consolidated financial statements
6
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 4
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30 Ended June 30
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
(In thousands)
Operating activities:
Net income $ 1,218 $ 1,097 $ 2,323 $ 2,174
Adjustments to
reconcile net income
to net cash provided
by operating
activities:
Depreciation 159 226 312 452
Provision for
possible loan
losses 73 207 128 312
Amortization of
goodwill and
other intangible
assets 117 116 234 234
Amortization of
premiums on
investment
securities, net of
accretion 44 18 85 58
Gain on sales of
securities, net (11) (71) (21) (68)
Loss on sales of
other real estate 0 1 0 1
Loans originated
for sale (4,438) (1,597) (9,912) (2,265)
Proceeds from sales
of loans originated
for sale 4,975 1,834 9,845 2,756
(Decrease) increase
in accrued interest
payable (76) 95 (166) 128
(Increase) decrease
in accrued interest
receivable (96) (106) 684 775
Increase in other
assets (341) (904) (574) (958)
Increase in other
liabilities 0 86 381 444
------- ------- ------- -------
Net cash
provided by
operating
activities 1,624 1,002 3,319 4,043
------- ------- ------- -------
Investing activities:
Proceeds from sales
of investment
securities available-
for-sale 2,008 3,247 5,016 3,488
Proceeds from
maturities of
investment securities
available-for-sale 9,387 10,927 18,291 23,651
Purchase of investment
securities available-
for-sale (14,516) (10,532) (29,992) (19,811)
Proceeds from
maturities of
investment securities
held-to-maturity 90 85 596 575
Purchase of investment
securities held-to-
maturity (285) (623) (1,115) (893)
Proceeds from sales of
other real estate
owned 0 126 45 181
Net increase in loans (7,530) (9,823) (1,927) (11,255)
Purchases of premises
and equipment (346) (138) (488) (276)
------- ------- ------- -------
Net cash used for
investing activities (11,192) (6,731) (9,574) (4,340)
------- ------- ------- -------
Financing activities:
Net increase (decrease)
in deposits 376 9,553 (11,229) 8,408
Net increase (decrease)
in short-term
borrowings 13,838 3,462 16,865 (2,503)
Payments for long-
term borrowings (3,600) 0 (3,750) (150)
Dividends paid (322) (273) (616) (545)
Purchase of treasury
stock (799) 0 (931) 0
Sale of treasury
stock 11 21 20 32
------- ------- ------- -------
Net cash provided by
financing activities 9,504 12,763 359 5,242
------- ------- ------- -------
(Decrease) increase in
cash and cash
equivalents (64) 7,034 (5,896) 4,945
------- ------- ------- -------
Cash and cash
equivalents at
beginning of quarter
and year 27,336 19,044 33,168 21,133
------- ------- ------- -------
Cash and cash
equivalents at
June 30 $27,272 $26,078 27,272 26,078
------- ------- ------- -------
------- ------- ------- -------
- -------------------------------------------------------------------------------
Supplemental disclosures
of cash flow information:
Cash paid during
the period for:
Interest $3,845 $3,646 $7,715 $7,176
Income taxes $678 $784 $764 $934
Supplemental disclosures
of non-cash flow
activities:
Amounts transferred
to other real estate
owned $34 $0 $34 $108
</TABLE>
See accompanying note to consolidated financial statements
7
<PAGE>
Schedule 5
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
Note to Consolidated Financial Statements
(Unaudited)
The accompanying unaudited consolidated financial statements have been prepared
in accordance with the instructions to Form 10-Q and do not include all of the
information required by generally accepted accounting principles for complete
financial statements and related footnote disclosures. In the opinion
of management, all adjustments (consisting only of normal recurring accruals)
considered for a fair presentation of the results for the interim period have
been included. For further information, refer to the financial statements and
notes included in the Registrant's 1997 Annual Report on Form 10-K. Results
of operations for interim periods are not necessarily indicative of the
results that may be expected for the year.
8
<PAGE>
Schedule 6
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
June 30, 1998
(unaudited)
The following discussion provides information about Princeton National
Bancorp, Inc.'s (PNB) financial condition and results of operations for the
quarter and six months ended June 30, 1998. This discussion should be read in
conjunction with the attached consolidated financial statements and note
thereto. Certain statements in this report constitute forward-looking
statements' within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. PNB cautions that such
forward-looking statements involve risks and uncertainties that may cause actual
results to differ materially from those expressed or implied.
STOCK DIVIDEND
- --------------
On April 14, 1998, the Board of Directors of PNB declared a three-for-two
stock split in the form of a 50% stock dividend which was distributed May 15,
1998 to shareholders of record on April 24, 1998. Each shareholder of record
received one new share of common stock for each two shares owned as of the
record date. Cash was paid in lieu of fractional shares. Accordingly, all
per share data stated in this Form 10-Q has been adjusted to reflect this
dividend.
RESULTS OF OPERATIONS
- ---------------------
Net income for the second quarter of 1998 was $1,218,000, or basic and
diluted earnings per share of $0.31 as compared to net income of $1,097,000 in
the second quarter of 1997, or basic and diluted earnings per share of $0.27.
This represents an increase of $121,000 (11.0%) or $0.04 per share. For the
first six months of 1998, net income was $2,323,000, or basic and diluted
earnings per share of $0.58, compared to $2,174,000, or basic and diluted
earnings per share of $0.53 in the first six months of 1997. Annualized
return on average assets and return on average equity were 1.11% and 11.38%,
respectively, for the second quarter of 1998, compared with 1.06% and 10.77%
for the second quarter of 1997. For the six-month periods, the annualized
returns on average assets and average equity were 1.06% and 10.93%,
respectively, for 1998, compared to 1.06% and 10.79% in 1997.
Net interest income before any provision for loan losses was $4,093,000
for the second quarter of 1998, compared to $3,961,000 for the second quarter
of 1997 (an increase of $132,000 or 3.3%). Additionally, for the six-month
periods, net interest income before any provision for loan losses was
$8,025,000 for 1998, as compared to $7,770,000 for 1997, representing an
increase of $255,000 (or 3.3%). This increase is a result of an increase in
average interest-earning assets from $378.9 million at June 30, 1997, to
$407.6 million at June 30, 1998. However, as of June 30, 1998, total loans
represented 61.5% of total assets compared with 63.4% as of June 30, 1997.
Accordingly, the net yield on interest-earning assets (on a fully taxable
equivalent basis) decreased from 4.33% for the first six months of 1997 to
4.17% for the first six months of 1998.
Non-interest income increased by $126,000 (or 15.0%) during the second
quarter of 1998 as compared to the second quarter of 1997 from $838,000 to
$964,000. For the first six months of 1998, non-interest income has
increased to $1,917,000 from $1,679,000 in the first six months of 1997 (an
increase of $238,000 or 14.2%). With the exception of net gains from
securities transactions, which decreased from $68,000 for the first six
months of 1997 to $21,000 for the first six months of 1998, all categories had
increases over the same time frame. Most notably, loan servicing fees increased
$89,000, trust and farm management fees increased $70,000, service charges on
deposit accounts increased $44,000, and other service charges increased
$40,000.
Non-interest expenses for the second quarter of 1998 were $3,333,000, an
increase of $228,000 (or 7.3%) from the second quarter of 1997. 1998 year-to-
date non-interest expenses at $6,677,000 have increased $480,000 (or 7.8%)
from 1997. This is due mainly to an increase in salaries and employee
benefits of $281,000 (or 8.5%). Also worth noting is an increase in other
operating expenses from $1,316,000 for the first half of 1997, to $1,562,000
for the first half of 1998. This is a result of several small increases over
many categories of PNB's operating expenses. Offsetting these increases was
a $58,000 reduction in equipment expense, primarily reduced depreciation
expense.
EARNINGS PER SHARE
- ------------------
Basic income per share is computed by dividing net income by the weighted
average number of shares outstanding which were 3,993,123 and 4,086,914 for the
quarters ending June 30, 1998 and 1997, respectively, and 4,003,129 and
4,086,440 for the six-month periods ending June 30, 1998 and 1997,
respectively. There were no common stock equivalents during any of these
periods, therefore diluted earnings per share is the same calculation.
ANALYSIS OF FINANCIAL CONDITION
- -------------------------------
Total assets at June 30, 1998 increased to $452,528,000 from $449,660,000
at December 31, 1997 ($2.9 million or 0.6%). This increase is attributable
mainly to local governmental taxing bodies having large balances on deposit
in customer repurchase agreements with the subsidiary bank at June 30 due to
real estate tax collections during the latter part of June. This increase is
reflected in the short-term borrowings category as it increased from $13.2
million at December 31, 1997 to $30.1 million at June 30, 1998. Total
deposits and repurchase agreements as a whole have decreased from $395.7
million at December 31, 1997 to $392.7 million at June 30, 1998 (a decrease
of $3.0 million or 0.8%).
While payoffs exceeded loan demand during the first three months of 1998,
loan demand has been very strong during the second quarter of 1998.
Accordingly, loan balances, net of unearned interest, increased to
$278,111,000 at June 30, 1998, compared to $276,181,000 at December 31, 1997
(an increase of $1.9 million or 0.7%). Non-performing loans totaled $861,000
or 0.31% of net loans at June 30, 1998, as compared to $837,000 or 0.30% of
net loans at December 31, 1997. Total investment securities increased from
$119.5 million at December 31, 1997 to $126.7 million at June 30, 1998.
During the first six months of 1998, PNB charged off $467,000 of loans
and had recoveries of $404,000. This compares to charge-offs of $449,000 and
recoveries of $285,000 during the first six months of 1997. The allowance for
possible loan losses is based on factors that include the overall composition
of the loan portfolio, types of loans, past loss experience, loan
delinquencies, potential substandard and doubtful credits, and such other
factors that, in management's reasonable judgment, warrant consideration.
The adequacy of the allowance is monitored monthly. During the first six months
of 1998, PNB recorded a loan loss expense of $128,000, compared to $312,000
during the first six months of 1997. As loan volume grows during the
remainder of 1998, as anticipated, management expects to continue to increase
the balance in the allowance for possible loan losses. At June 30, 1998, the
balance in the allowance was $1,894,000 which is 0.68% of total loans,
compared with $1,830,000 or 0.66% of total loans at December 31, 1997.
At June 30, 1998, the recorded balance in loans for which impairment has
been recognized in accordance with FASB Statement No. 114 totaled $136,000,
all of which related to impaired loans which do not require a related
allowance for possible loan losses as the carrying value of the loans is less
than the discounted present value of expected future cash flows. Interest
recognized on impaired loans (during the portion of this quarter that they
were impaired) is not considered material.
CAPITAL RESOURCES
- -----------------
Federal regulations require all financial institutions to evaluate capital
adequacy by the risk-based capital method, which makes capital requirements
more sensitive to the differences in the level of risk assets. At June 30,
1998, total risk-based capital was 14.49%, compared to 13.88% at December 31,
1997. Similarly, the Tier 1 capital ratio also increased from 8.36% at
December 31, 1997, to 8.72% at June 30, 1998. Total stockholders' equity to
total assets at June 30, 1998 increased to 9.60% from 9.49% at December 31,
1997. The Corporation's plan (announced in July, 1997) to repurchase 3% of its
own stock was completed during the second quarter of 1998. PNB has now
repurchased a total of 122,656 shares of its own stock at an average cost of
$16.43.
The Board of Directors announced on July 20, 1998 that it is implementing
another stock repurchase program whereby up to 5% of its outstanding shares of
common stock may be repurchased in the open market over the next twelve
months. It is anticipated that the repurchase program will have a positive
impact on future diluted earnings per share.
LIQUIDITY
- ---------
Liquidity is measured by a financial institution's ability to raise funds
through deposits, borrowed funds, capital, or the sale of assets. Additional
sources of liquidity, including cash flow from both the repayment of loans
and the securitization of assets, are also considered in determining whether
liquidity is satisfactory. Cash flows provided by financing and operating
activities have been offset by those used for investing activities, resulting
in a net decrease in cash and cash equivalents of $5,896,000 from December
31, 1997 to June 30, 1998. This usage was due to a net decrease in deposits, a
net increase in loans, and an increase in investments (purchases greater than
sales and maturities), offset by a net increase in short-term borrowings.
For more detailed cash flow information, see PNB's Consolidated Statement of
Cash Flows.
IMPACT OF NEW ACCOUNTING STANDARDS
- ----------------------------------
In June 1997, FASB Statement No. 131, "Disclosures about Segments of an
Enterprise and Related Information" (FAS 131), was issued. FAS 131
establishes standards for the way public business enterprises are to report
information about operating segments in annual financial statements and
requires those enterprises to report selected information about operating
segments in interim financial reports issued to shareholders. FAS 131 is
effective for financial periods beginning after December 15, 1997, and is
not expected to have a material impact on the PNB.
YEAR 2000 COMPLIANCE
- --------------------
The subsidiary bank has developed a comprehensive action plan to address
potential issues relating to the Year 2000. The subsidiary bank has
successfully met all critical timeframes established by federal regulatory
agencies. Management will be conducting tests both internally and through
third-party vendors to verify that all operating systems will be functional
on January 1, 2000. At this point, Management does not believe there will be
a material impact on the corporation's results of operations, liquidity, or
capital resources.
LEGAL PROCEEDINGS
- -----------------
There are various claims pending against PNB's subsidiary bank, arising in
the normal course of business. Management believes, based upon consultation
with counsel, that liabilities arising from these proceedings, if any, will
not be material to PNB's financial position.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- ----------------------------------------------------------
There has been no material change in market risk since December 31, 1997,
as reported in the Corporation's Annual Report on Form 10-K.
EFFECTS OF INFLATION
- --------------------
The consolidated financial statements and related consolidated financial
data presented herein have been prepared in accordance with generally accepted
accounting principles and practices within the banking industry which require
the measurement of financial position and operating results in terms of
historical dollars, without considering the changes in the relative
purchasing power of money over time due to inflation. Unlike most industrial
companies, virtually all the assets and liabilities of a financial
institution are monetary in nature. As a result, interest rates have a more
significant impact on a financial institution's performance than the effects
of general levels of inflation.
13
<PAGE>
[ARTICLE]9
Exhibit 27
This schedule contains summary financial information extracted from the
Princeton National Bancorp, Inc. and Subsidiary Consolidated Balance Sheets and
Statements and Subsidiary Consolidated Balance Sheets and Statements of Income
and is qualified in its entirety by reference to such financial statements.
For the six-month period ending June 30, 1998:
<TABLE>
<S> <C>
Multiplier 1,000
Period-Type 6-mos
Fiscal-Year-End Dec-31-1997
Period-End Jun-30-1998
Cash $12,377
Int-bearing-deposits $337,914
Fed Funds sold $9,500
Trading-assets $0
Investments-held-for-sale $113,635
Investments-carrying $13,016
Investments-market $13,166
Loans $278,111
Allowance $1,894
Total-assets $452,528
Deposits $374,711
Short-term $30,102
Liabilities-other $4,271
Long-term $0
Preferred-mandatory $0
Preferred $0
Common $20,700
Other-SE $22,744
Total-liabilities-and-equity $452,528
Interest-loans $12,366
Interest-invest. $3,577
Interest-other $160
Total-interest $16,103
Interest-deposit $7,549
Interest-expense $8,078
Interest-income-net $8,025
Loan-losses $128
Securities-gains $21
Other-expenses $6,677
Income-pretax $3,137
Income-pre-extraordinary $3,137
Extraordinary $0
Changes $0
Net Income $2,323
EPS-primary $0.58
EPS-diluted $0.58
Yield-Actual 4.17%
Loans-non $831
Loans-past $30
Loans-troubled $0
Loans-problem $64
Allowance-open $1,894
Charge-offs $467
Recoveries $404
Allowance-close $1,894
Allowance-domestic $1,894
Allowance-foreign $0
Allowance-unallocated $0
</TABLE>
