Princeton National Bancorp, Inc. Surpasses First Quarter 2007 Earnings

President Tony J. Sorcic stated, "Princeton National Bancorp, Inc. is proud to report net income rose 46.3% to $2.090 million in the first quarter of 2008, compared to $1.429 million in the first quarter 2007. Fully diluted earnings per share of $.63 represent an increase of 50.0% from $.42 in the first quarter of 2007. The return on average equity for the first quarter of 2008 improved 38.9% to 12.22% from 8.80% for the same period in 2007."

Mr. Sorcic concluded, "The Company also experienced a significant increase in net interest income. While many financial institutions were faced with a shrinking net interest margin due to the prime rate decreases, Princeton National Bancorp, Inc.'s net interest margin (tax equivalent) grew to 3.39% in the first quarter of 2008 from 3.11% in the first quarter of 2007. Based on the current level of assets, this equates to an increase in net (annualized pre-tax) interest income of $2.7 million. The net interest income for the quarter was $7.454 million, compared to $6.392 million in the first quarter of 2007."

There was also an increase in non-interest income for the first quarter of 2008, $3.153 million versus $2.645 million for the quarter ending March 31, 2007. When comparing the two quarters, the majority of the increase was in the following categories: trust and farm management fees, service charges on deposit accounts, gains on sales of securities available for sale and mortgage banking income. The Company's non-interest income has equaled or exceeded 1% of average assets for 31 consecutive quarters. Although non-interest expense increased to $7,560,000 in the first quarter of 2008, from $7,272,000 in the first quarter of 2007, as a percentage of average assets non-interest expense decreased from 2.87% to 2.83% over the same timeframe. This is the lowest level since 1991.

Princeton National Bancorp, Inc. experienced a $7.1 million increase in total loans as of March 31, 2008 in comparison to December 31, 2007 and a $73.0 million increase compared to March 31, 2007. The loan to asset ratio improved to 67.1% at March 31, 2008 compared to 63.6% one year earlier. The improved asset mix of the balance sheet added to the outstanding earnings results. The non-performing loans represent 1.93% of the total loan portfolio as of March 31, 2008.

Princeton National Bancorp, Inc. Surpasses First Quarter 2007 Earnings