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 March 31, 2000
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 May 5, 2000, the registrant had outstanding 3,485,209 shares of its $5
par value common stock.
Page 1 of 15 pages
<PAGE>
Part I: FINANCIAL INFORMATION
The unaudited 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 6. Exhibits and Reports on Form 8-K
(a) Exhibits :
27 - Financial Data Schedule for the period ended March 31, 2000
(b) A Form 8-K was filed by the Corporation on February 23,
2000 announcing the Corporation's receipt of the settlement
from the litigation with Cincinnati Insurance Company.
(b) A Form 8-K was filed by the Corporation on March 3, 2000
with respect to the implementation of a stock repurchase
program whereby the Corporation may purchase up to 5% of
its outstanding shares of common stock.
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: May 12, 2000 By /s/ Tony J. Sorcic
---------------------
Tony J. Sorcic
President & Chief Executive Officer
Date: May 12, 2000 By /s/ Todd D. Fanning
----------------------
Todd D. Fanning
Chief Financial Officer
2
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 1
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
MARCH 31, December 31,
2000 1999
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 12,113 $ 19,325
Federal funds sold 6,050 7,900
Loans held for sale, at lower of cost or market 4,952 8,646
Investment securities:
Available-for-sale, at fair value 98,862 100,043
Held-to-maturity (fair value of $13,675 and $13,612 at
March 31, 2000 and December 31, 1999, respectively) 14,009 13,923
------------ ------------
Total investment securities 112,871 113,966
------------ ------------
Loans:
Gross loans 315,771 308,356
Less: Unearned interest (6) (9)
Allowance for loan losses (2,416) (1,950)
------------ ------------
Net loans 313,349 306,397
------------ ------------
Premises and equipment, net of accumulated depreciation 12,078 12,127
Interest receivable 5,099 5,799
Goodwill and intangible assets, net of accumulated amortization 4,470 4,600
Other assets 4,247 4,060
------------ ------------
TOTAL ASSETS $ 475,229 $ 482,820
============ ============
LIABILITIES
Deposits:
Demand $ 45,784 $ 45,514
Interest-bearing demand 89,917 93,521
Savings 54,260 52,277
Time 207,271 213,496
------------ ------------
Total deposits 397,232 404,808
Borrowings:
Customer repurchase agreements 12,278 15,663
Advances from Federal Home Loan Bank 13,120 13,320
Interest-bearing demand notes issued to the U.S. Treasury 1,199 2,366
Notes payable 2,100 2,150
------------ ------------
Total borrowings 28,697 33,499
Other liabilities 5,889 3,567
------------ ------------
TOTAL LIABILITIES 431,818 441,874
------------ ------------
STOCKHOLDERS' EQUITY
Common stock: $5 par value, 7,000,000 shares
authorized; 4,139,841 issued and outstanding 20,699 20,699
Surplus 6,338 6,335
Retained earnings 26,241 22,118
Accumulated other comprehensive loss, net of tax (707) (1,031)
Less: Cost of 654,632 treasury shares at March 31, 2000
and 472,112 treasury shares at December 31, 1999 (9,160) (7,175)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 43,411 40,946
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 475,229 $ 482,820
============ ============
</TABLE>
SEE ACCOMPANYING NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 2
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31
2000 1999
----------- ----------
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 6,815 $ 6,011
Interest and dividends on investment securities 1,609 1,852
Interest on short-term funds 35 119
----------- ----------
Total interest income 8,459 7,982
INTEREST EXPENSE:
Interest on deposits 3,573 3,600
Interest on borrowings 414 295
----------- ----------
Total interest expense 3,987 3,895
----------- ----------
NET INTEREST INCOME 4,472 4,087
Provision for loan losses 515 10
----------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,957 4,077
NON-INTEREST INCOME:
Trust & farm management fees 303 345
Service charges on deposit accounts 423 364
Other service charges 201 156
Loss on sale of loans (259) 0
Gain (loss) on sales of securities available-for-sale (86) 11
Loan servicing fees and other charges 21 83
Settlement of trust litigation 6,235 0
Other operating income 168 69
----------- ----------
Total non-interest income 7,006 1,028
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,033 1,888
Occupancy 249 263
Equipment expense 323 291
FDIC/OCC assessments 47 48
Goodwill and intangible assets amortization 108 117
Data processing 143 131
Other operating expense 1,004 841
----------- ----------
Total non-interest expense 3,907 3,579
----------- ----------
INCOME BEFORE INCOME TAXES 7,056 1,526
Income tax expense 2,604 391
----------- ----------
NET INCOME $ 4,452 $ 1,135
=========== ==========
NET INCOME PER SHARE:
Basic 1.23 0.30
Diluted 1.22 0.30
Basic weighted average shares outstanding 3,618,140 3,819,030
Diluted weighted average shares outstanding 3,652,590 3,831,980
Dividends per share 0.09 0.08
</TABLE>
SEE ACCOMPANYING NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
4
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY Schedule 2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31
2000 1999
------------ ------------
<S> <C> <C>
Net Income $ 4,452 $ 1,135
Other comprehensive income (loss), net of tax
Unrealized holding gain (loss) arising during the period 291 (294)
Less: Reclassification adjustment for realized gains (losses)
included in net income 33 (7)
------------ ------------
Other comprehensive income (loss) 324 (301)
------------ ------------
Comprehensive income $ 4,776 $ 834
============ ============
</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 Three Months
Ended March 31
2000 1999
------------ ------------
(IN THOUSANDS)
<S> <C> <C>
Balance, January 1 $ 40,946 $ 42,606
Net income 4,452 1,135
Cash dividends (330) (306)
Other comprehensive income (loss), net of tax 324 (301)
Purchases of treasury stock (1,990) (486)
Sales of treasury stock 9 11
------------ ------------
Balance, March 31 $ 43,411 $ 42,659
============ ============
</TABLE>
SEE ACCOMPANYING NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
6
<PAGE>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31
(IN THOUSANDS) 2000 1999
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 4,452 $ 1,135
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 393 284
Provision for loan losses 515 10
Amortization of goodwill and other intangible assets 108 117
Amortization of premiums on investment
securities, net of accretion 36 129
Loss (gain) on sales of securities, net 86 (11)
Loans originated for sale (1,353) (5,719)
Proceeds from sales of loans originated for sale 5,047 5,824
Decrease in interest payable (97) (102)
Decrease in interest receivable 700 1,220
Increase in other assets (257) (43)
Increase in other liabilities 2,176 412
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 11,806 3,256
------------ ------------
INVESTING ACTIVITIES:
Proceeds from sales of investment securities available-for-sale 1,007 985
Proceeds from maturities of investment securities available-for-sale 12,115 10,016
Purchase of investment securities available-for-sale (11,498) (16,153)
Proceeds from maturities of investment securities held-to-maturity 867 7,760
Purchase of investment securities held-to-maturity (951) (8,545)
Proceeds from sales of other real estate owned 92 0
Net increase in loans (7,467) (7,000)
Purchases of premises and equipment (344) (681)
------------ ------------
NET CASH USED FOR INVESTING ACTIVITIES (6,179) (13,618)
------------ ------------
FINANCING ACTIVITIES:
Net decrease in deposits (7,576) (21,101)
Net decrease in borrowings (4,802) (81)
Dividends paid (330) (306)
Purchase of treasury stock (1,990) (486)
Sales of treasury stock 9 11
------------ ------------
NET CASH USED FOR FINANCING ACTIVITIES (14,689) (21,963)
------------ ------------
DECREASE IN CASH AND CASH EQUIVALENTS (9,062) (32,325)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 27,225 54,133
------------ ------------
CASH AND CASH EQUIVALENTS AT MARCH 31 $ 18,163 $ 21,808
============ ============
- ------------------------------------------------------------------------------------------------------------------
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 4,084 $ 3,793
Income taxes $ 500 $ 175
Supplemental disclosures of non-cash flow activities:
Loans transferred to other real estate owned $ 29 $ 74
</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 consolidated financial
statements and notes included in the Registrant's 1999 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
MARCH 31, 2000
(UNAUDITED)
The following discussion provides information about Princeton National
Bancorp, Inc.'s ("PNB" or the "Corporation") financial condition and results of
operations for the quarter ended March 31, 2000. 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, including, but not limited
to those statements that include the words "believes", "expects", "anticipates",
"estimates", or similar expressions. PNB cautions that such forward-looking
statements involve risks and uncertainties that may cause actual results to
differ materially from those expressed or implied. Such risks and uncertainties
include potential change in interest rates, competitive factors in the financial
services industry, general economic conditions, the effect of new legislation,
and other risks detailed in documents filed by the Corporation with the
Securities and Exchange Commission from time to time.
RESULTS OF OPERATIONS
During the first quarter, PNB's subsidiary bank received $6,234,888,
representing the settlement proceeds from the lawsuit against Cincinnati
Insurance Company stemming from the 1995 Trust Department issue. Net income for
the first quarter of 2000 was $4,452,000, or basic and diluted earnings per
share of $1.23 and $1.22, respectively, compared to net income of $1,135,000 in
the first quarter of 1999, or basic and diluted earnings per share of $0.30.
Annualized return on average assets and return on average equity were 3.75% and
42.96%, respectively, for the first quarter of 2000, compared with 0.99% and
10.84% for the first quarter of 1999.
As interest rates continued to rise in the first quarter of 2000, PNB's
subsidiary bank restructured a portion of the investment portfolio by selling
securities with lower interest rates and replacing them with higher-yielding
securities. The losses from these sales totaled $86,061, but the Corporation
believes the restructuring will have a positive future impact on net interest
income. Additionally, the subsidiary bank sold loans in the held-for-sale
portfolio that had interest rates below current market value. The loss from this
sale was $258,892, but with commercial loan demand being very strong, the
Corporation believes these funds can be loaned to customers at higher interest
rates again having a positive future impact on net interest income.
9
<PAGE>
Net interest income before provision for loan losses was $4,472,000 for
the first quarter of 2000, compared to $4,087,000 for the first quarter of 1999
(an increase of $385,000 or 9.4%). This increase is primarily a result of an
increase in average interest- earning assets to $437.9 million (including a
$43.8 million increase in loans) for the three months ended March 31, 2000 from
$428.4 million for the same time period in 1999. Because of the change in the
mix of assets, from investments to loans, the net yield on interest-earning
assets (on a fully taxable equivalent basis) increased from 4.10% for the first
quarter of 1999 to 4.34% for the first quarter of 2000.
PNB recorded a loan loss provision of $515,000 in the first quarter of
2000 compared to $10,000 in the first quarter of 1999, and $266,000 in the
fourth quarter of 1999. There continues to be uncertainty regarding government
assistance for the agricultural customers as well as the direction of, and
continued, depressed commodity prices. The subsidiary bank also has seen an
increase in carryover debt with regard to its agricultural customers. These
factors, coupled with the continued loan growth, have led to the subsidiary bank
increasing the provision for loan losses.
Non-interest income totaled $7,006,000 for the first quarter of 2000,
as compared to $1,028,000 during the first quarter of 1999. After offsetting the
loss on sale of loans of $259,000 in 2000, and the loss on sales of securities
of $86,000, and excluding the settlement from trust litigation, non-interest
income increased by $88,000, or 8.6%. The largest increases were in service
charges on deposit accounts, which have increased as the number of deposit
accounts has grown (increase of $59,000 or 16.2%), and in other service charges
(increase of $45,000 or 28.9%) most notably due to an increase in fee income
from PrimeVest operations.
Non-interest expenses for the first quarter of 2000 were $3,907,000, an
increase of $328,000 (or 9.2%) from $3,579,000 in the first quarter of 1999, but
below budgeted levels. The most notable increases were in salaries/employee
benefits (increase of $145,000 or 7.7%) and other operating expenses (increase
of $163,000 or 19.4%). One of the contributing factors to the salaries increase
is the addition of another PrimeVest investment executive and the overall
increase in PrimeVest operations. Several smaller items comprise other operating
expense and have individually experienced small general increases.
EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income by the
weighted average number of shares outstanding which were 3,618,140 and 3,819,030
for the three months ended March 31, 2000 and 1999, respectively. Diluted
earnings per share is computed by dividing net income by the weighted average
number of basic shares plus potential common stock. This total was 3,652,590 for
the quarter ended March 31, 2000 and 3,831,980 for the quarter ended March 31,
1999.
10
<PAGE>
ANALYSIS OF FINANCIAL CONDITION
Total assets at March 31, 2000 decreased to $475,229,000 from
$482,820,000 at December 31, 1999 (decrease of $7.6 million or 1.6%). This
decrease is attributable mainly to seasonal deposit growth at the end of 1999
followed by a normal drop in the first three months of the year. In comparing
total deposits for the first three months of 2000 to the first three months of
1999, two categories had decreasing balances: time deposits (decrease of $6.2
million or 2.9%) and interest-bearing demand deposits (decrease of $3.6 million
or 3.9%) ; and two categories had increasing balances: savings deposits
(increase of $2.0 million or 3.8%) and demand deposits (increase of $0.3 million
or 0.6%). Borrowings, consisting of customer repurchase agreements, notes
payable, treasury, tax, and loan deposits, and Federal Home Loan Bank advances,
decreased from $33,499,000 at December 31, 1999 to $28,697,000 at March 31, 2000
(decrease of $4.8 million or 14.3%). This decrease is attributable to a decrease
in customer repurchase agreements consistent with the aforementioned decrease in
deposits. The investment balances totaled $112,871,000 at March 31, 2000,
compared to $113,966,000 at December 31, 1999 (a decrease of $1.1 million or
1.0%).
Continued strong demand has caused loans to increase during the first
three months of 2000. Loan balances, net of unearned interest, increased to
$320,717,000 at March 31, 2000, compared to $316,993,000 at December 31, 1999
(an increase of $3.7 million or 1.2%). Not including loans held for sale, there
was a net increase in loans of $7.6 million, or 2.4%. Non-performing loans
totaled $1,496,000 or 0.47% of net loans at March 31, 2000, as compared to
$1,385,000 or 0.44% of net loans at December 31, 1999.
For three months ended March 31, 2000, the subsidiary bank charged off
$128,000 of loans and had recoveries of $79,000, compared to charge-offs of
$91,000 and recoveries of $84,000 during the three months ended March 31, 1999.
The allowance for 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. At March 31, 2000, the allowance
was $2,416,000 which is 161.5% of non-performing loans, compared with $1,950,000
or 140.8% of non-performing loans at December 31, 1999.
At March 31, 2000, impaired loans totaled $806,000 (compared to
$820,000 at March 31, 1999 and $845,000 at December 31, 1999), all of which
related to impaired loans which do not have a specific allowance as the carrying
value of the loans is less than the discounted present value of expected future
cash flows or collateral value. Interest recognized on impaired loans (during
both periods that they were impaired) is not considered material. Loans 90 days
or more past due and still accruing interest at March 31, 2000 were $9,000,
compared to $111,000 at December 31, 1999.
11
<PAGE>
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
March 31, 2000, total risk-based capital was 12.51%, compared to 12.31% at
December 31, 1999. The Tier 1 capital ratio increased from 8.21% at December 31,
1999, to 8.46% at March 31, 2000. Total stockholders' equity to total assets at
March 31, 2000 increased to 9.13% from 8.48% at December 31, 1999.
The Board of Directors announced on February 29, 2000 another stock
repurchase program would be implemented whereby up to 5% of its outstanding
shares might be repurchased in the open market. The program was completed on
March 8, 2000, with the Corporation having purchased 183,386 shares at an
average cost of $10.85, which is approximately 11% below book value.
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 the repayment of loans
is also considered a liquidity source. Cash flows used by investing and
financing activities, offset by those provided by operating activities, resulted
in a net decrease in cash and cash equivalents of $9,062,000 from December 31,
1999 to March 31, 2000. This usage was due to net decreases in deposits and
borrowings, as well as a net increase in loans, offset by the trust litigation
settlement proceeds and proceeds from the sale of loans. For more detailed cash
flow information, see PNB's Consolidated Statements of Cash Flows.
CURRENT EVENTS
Work has begun on the subsidiary bank's new facility in Huntley,
Illinois. The facility is adjacent to the new Dell Webb community being
constructed in Huntley. It is anticipated the office will be completed in August
of this year.
The Corporation announced at the Annual Meeting of Shareholders on
April 11, 2000, a dividend reinvestment plan would be implemented on May 1,
2000, to provide an added convenience to our shareholders as requested.
IMPACT OF NEW ACCOUNTING STANDARDS
In June 1998, the FASB issued Statement 133, "Accounting for Derivative
Instruments and Hedging Activities" (FAS 133). FAS 133 establishes accounting
and reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts, (collectively referred to as
derivatives) and for hedging activities.
12
<PAGE>
In June 1999, the FASB issued Statement 137, "Accounting for Derivative
Instruments and Hedging Activities-Deferral of the Effective Date of FASB
Statement 133, an Amendment of FASB Statement 133" (FAS 137). FAS 137 defers the
effective date to no later than January 1, 2001. Management, at this time, does
not anticipate the adoption of this statement will have a material effect on the
financial statements of the Corporation.
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 legal counsel, that liabilities arising from these proceedings, if any,
will not be material to PNB's financial condition.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There has been no material change in market risk since December 31,
1999, as reported in PNB'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 condition 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>
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31
2000 1999
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 16,531 $ 19,766
Federal funds sold 2,939 9,430
Loans held for sale, at lower of cost or market 7,579 5,279
Investment securities:
Available-for-sale 100,305 113,810
Held-to-maturity 13,550 21,836
------------ ------------
Total investment securities 113,855 135,646
Loans:
Gross loans 312,882 271,892
Less: Unearned interest (7) (36)
Allowance for possible loan losses (2,206) (1,809)
------------ ------------
Net loans 310,669 270,047
Premises and equipment 12,106 10,888
Interest receivable 5,126 4,860
Goodwill and intangible assets, net of accumulated amortization 4,538 4,972
Other assets 4,265 3,688
------------ ------------
TOTAL ASSETS $ 477,608 $ 464,576
============ ============
LIABILITIES
Deposits:
Demand 43,624 39,951
Interest-bearing demand 91,807 92,122
Savings 52,952 55,286
Time 211,573 205,475
------------ ------------
Total deposits 399,956 392,834
Borrowings:
Customer repurchase agreements 12,966 13,344
Advances from Federal Home Loan Bank 13,256 9,084
Federal funds purchased 366 184
Int.-bearing demand notes issued to the U.S. Treasury 1,202 704
Notes payable 2,101 1,160
------------ ------------
Total borrowings 29,891 24,476
Other liabilities 5,695 4,820
------------ ------------
TOTAL LIABILITIES 435,542 422,130
STOCKHOLDERS' EQUITY
Common stock 20,699 20,699
Surplus 6,336 6,307
Retained earnings 24,125 19,824
Accumulated other comprehensive income, net of tax (1,022) 723
Less: Treasury stock (8,072) (5,107)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 42,066 42,446
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 477,608 $ 464,576
============ ============
</TABLE>
SEE ACCOMPANYING NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
PRINCETON NATIONAL BANCORP, INC. and Subsidiary Consolidated Balance Sheets and
Statements of Income and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 12,113
<INT-BEARING-DEPOSITS> 351,448
<FED-FUNDS-SOLD> 6,050
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 98,862
<INVESTMENTS-CARRYING> 14,009
<INVESTMENTS-MARKET> 13,675
<LOANS> 320,717
<ALLOWANCE> 2,416
<TOTAL-ASSETS> 475,229
<DEPOSITS> 397,232
<SHORT-TERM> 28,697
<LIABILITIES-OTHER> 5,889
<LONG-TERM> 0
0
0
<COMMON> 20,699
<OTHER-SE> 22,712
<TOTAL-LIABILITIES-AND-EQUITY> 475,229
<INTEREST-LOAN> 6,815
<INTEREST-INVEST> 1,609
<INTEREST-OTHER> 35
<INTEREST-TOTAL> 8,459
<INTEREST-DEPOSIT> 3,573
<INTEREST-EXPENSE> 3,987
<INTEREST-INCOME-NET> 4,472
<LOAN-LOSSES> 515
<SECURITIES-GAINS> (86)
<EXPENSE-OTHER> 3,907
<INCOME-PRETAX> 7,056
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<YIELD-ACTUAL> 4.34
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<ALLOWANCE-CLOSE> 2,416
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<ALLOWANCE-FOREIGN> 0
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</TABLE>
