Waiting for news.

What’s the consensus? Was the stock move simply a pump and dump or something else? What did everybody do with their shares? Hold, Sell, Buy, all of the above?

25 comments on “Waiting for news.

  1. 10K filed:

    Princeton National Bancorp Inc

    released on Thursday, 4/12/12, a 48-document, 4584-page ’10-K’

    Annual Report — Form 10-K

    for the period ended Saturday, 12/31/11

    filed as of Thursday, 4/12/12

    This filing: ’10-K’ — # 0001437749-12-003837 @ 120412-204048 —


    20. Going Concern Considerations

    As a result of the effects of the economic downturn and the record losses generated by the Corporation, the capital of the Corporation and the subsidiary bank has been significantly depleted. The subsidiary bank has experienced significant increases in non-performing assets, impaired loans and loan loss provisions, resulting in the imposition of a Consent Order at the subsidiary bank and a Written Agreement at the Corporation. For further discussion of these regulatory enforcements, see Note 13 – “Regulatory Matters” in the Notes to Consolidated Financial Statements. Management is currently attempting to raise additional capital that will return the subsidiary bank to compliance with regulatory capital requirements of the Consent Order. The Corporation’s ability to raise capital is contingent on the current capital markets and the Corporation’s financial performance. Available capital markets are not currently favorable and the Corporation cannot be certain of its ability to raise capital on any terms.

    The losses reported by the Corporation during the recent three years were primarily due to large provisions for loan losses, goodwill impairment charges and the establishment of a valuation allowance against the Corporation’s net deferred tax asset. Prior to sustaining these losses in 2011, 2010 and 2009, the Corporation had a history of profitable operations. The return to profitable operations is contingent on the overall economic recovery and the stability of collateral values of the real estate that secures many of the Corporation’s loans.

    While the Corporation believes that it may be able to raise sufficient capital to meet its capital requirements and manage loan losses in the near term until such time that the overall economy improves without having to liquidate assets, the realization of assets in other-than-normal course of business in order to provide liquidity could result in additional losses to be reflected in the Corporation’s financial statements.

  2. WOW!!! If you read the 10-K and page through the comments, it seems all but certain this bank is toast. Again, blame everything on the poor economy and the “not currently favorable capital markets” as excuses. How many banks did successful capital raises the past 24 months? Too many to count including mine in PA. Of course you have to have a good story to tell. Actually, that’s right PNBC does – Sexcapades and a former CEO who was a known womanizer. If PNBC was to raise capital for a new reality show, it would have no problems securing the funds.

    Prepare the funeral arrangements boys and girls, this one is imminent. All that’s missing is the flowers, hearse, and casket. Actually multiple caskets, one for each Board Member and Senior Executive Officer of the bank.

    • How about “The Real Housewives of Citizens First National Bank/PNBC”? Let’s hear from the women what it is like to live with those bozos…

      • You’re right, Anonymous. I will keep my gloves above the belt. The humor is antithetic to my goal of punishing those responsible for the bank’s problems and the dire financial consequences dealt to me and my family as a result of trying to stand up for what is right. The only men deserving mention are those in my lawsuit as they were in leadership positions and should have been setting a proper example to everyone else in the company.

  3. Congratulations to the former Citizens employee who won as the defendant of a lawsuit brought on by Citizens First National Bank claiming violation of a non compete today in Bureau County Circuit Court. CFNB leadership are truly their own worst detractors. What a waste of shareholder money but at least Attorneys Michael Lied and Michael Gifford from Howard & Howard profited from yet another one of CFNB’s poor decisions…

      • The accusations that Citizens made surrounding the lawsuit against me were that 1) I solicited clients after I resigned, 2) that I stole a list of client names before I left. What sent them into panic mode was an “announcement” post card we sent a number of my clients. I also followed up with 1 phone call to each client after the post cards were sent. The purpose of the phone call was to ask if they received my post card and for me to announce where I went, not to solicit. This procedure of sending a post card and following up with an announcement phone call is standard industry practice when an FA leaves one firm and joins another. If done properly and by the book, the FA will always win. The reason is that FINRA says an investment client has a right to CHOOSE their Financial Advisor. Citizens thought they were above FINRA, apparently, and they didn’t think their clients could choose? Were they also perhaps a little angry with my new firm for recruiting their top producer? Also, I did not take a list, because I was advised not to do so by my firm and I even had to sign a waiver stating I did not take a list. I didn’t need a list, I had the internet to look up phone numbers and addresses. The fact management didn’t understand they were fighting a losing battle the entire time is what floors me. They should have known how this goes, but then again their most knowledgable Investment mind was no longer there to help them……..ME. Consequently, the manager who would have signed off on the lawsuit would have been Patrick Murray, who got fired several months after I left.

            • That’s another good question. I was recruited by my present firm approximately 6 months prior to leaving Citizens. They offered me the opportunity to partner with them and build my practice within their system. Not to mention, they offered me a signing bonus to make the transition. All said and done, I left Citizens because the partnership, resources, and leverage of my present institution are far superior. In our business it all comes down to client experience and I am able to deliver a better client experience with a better partner.

    • Thanks for the congrats! It has been like a little knat buzzing around my ear for 18 months, and feels good to have it wrapped up. Nice to win also, but as someone commented in this post, the ones who are losing are once again the shareholders. It’s too bad this company has had so many issues as of late, but most of it is self inflicted. Fortunately, I saw the writing on the wall early enough to get out. It was a nightmare working there for 5 years, and it is not surprising to me that an entire website has been constructed for the purpose of airing grievances. Fortunately for me, I was able to leave that place and get a job at a fortune 500 bank that is presently being praised by it’s shareholders and customers, rather than ridiculed. And, I would not call what Citizens had against me a “case.” They failed to make one of those…………

  4. While it is easy to understand why many people are angry at this situation, I urge you to be supportive of those individuals who remain at Citizens. We all should keep in mind that those individuals who put Citizens in this situation are no longer at the Bank. It’s ok to be angry with them, but I propose that we all rally for those hard working professionals who continue to be committed to the Bank and to their communities. We should not overlook all the good that the people of CFNB have done over many years. There are so many projects in our communities that have been supported by CFNB and so many efforts that would have failed if the resources (staff and $) from CFNB had not been offered. I am a long time resident of Princeton, a former employee of CFNB, and very aware of some of the situations in the lawsuit that are untrue. The legal system needs to deal with that. During the years I worked at CFNB, overall the management was very supportive of our communities and provided staff (male and female) many opportunities for advancement. That is evidenced by the many individuals who have been there 20+ years and have been promoted to management positions. We can continue to criticize the management and Board of this Bank and just watch it completely fail, or we can do something to help. If CFNB fails there are a couple of potential outcomes – (1) It’s gone all together and with it so are hundreds of jobs; and of course we should all consider the residual effect of that on the many communities where CFNB has offices. (2) It is purchased by a large bank that does not necessarily care about our communities like the current Citizens family does. This too will result in significant job loss. We can make a difference. I propose we all contact the OCC and FDIC and encourage them to work with CFNB to allow them adequate time to resolve the financial issues. This situation did not occur overnight and it can’t be fixed overnight. Everyone must be aware that our country is in a financial crisis. There are many banks who are suffering just like CFNB. My guess would be that when many of these loan decisions were made, they were solid decisions. There is no one that could have predicted an economic downturn that would be so substantial. It is not the bankers at CFNBs faults that property values across our nation have decreased so significantly. When the real estate market was rising so quickly we would have all criticized any financial institution that did not get involved by lending money to help people start up new businesses, grow their existing business, obtain houses, etc. and just overall did not play a leadership role in helping communities grow. We all enjoyed the fruits of their efforts as our bank grew, our communities grew, and as stockholders, our value grew. It’s time to stand up for our future and do everything we can to salvage this institution. Please consider contacting the regulatory agencies which hold CFNBs future, and the future of our communities, in their hands.
    Office of the Comptroller of the Currency, 111 West Washington Street, Suite 300, East Peoria, IL 61611
    FDIC Consumer Response Center, 1100 W Walnut St., Box #11, Kansas City, MO 64106

    • You are apparently new to this site. Welcome and thanks for your view. You might benefit by reading the background on some of the pages listed in the header. Home, About, Proxy Access, Nomination 2012, and The Deal would be good places to start. If the links don’t work, the titles are on the header at the top of every page right under the mypnbc logo.
      Then on to the menu and go down the list there. After perusing that information, if you still feel that 1) “all those individuals who put Citizens in this situation are no longer at the Bank”, 2) the premise that you are “very aware of some of the situations in the lawsuit that are untrue” makes everything else all right 3) we haven’t thought of the idea that we can “continue to criticize the management and Board of this Bank and just watch it completely fail, or we can do something to help,” 4) OCC hasn’t allowed the board and management “adequate time to resolve the financial issues”, and finally number 5) you still want to make this guess: “My guess would be that when many of these loan decisions were made, they were solid decisions.”, then I wish you the best of luck with your endeavor.

      By the way, loans that were made without adequate capital reserves are by my definition, not “solid”, so the decisions to make those loans without adequate capital reserves might not be viewed as solid, either. The fault was not the loans per se, it was that there was no plan “B” which would have provided enough capital to survive if those loans went South. Those bad decisions might be considered as gross over-reaching or worse.

      The whole point of this endeavor was to stand up for the future of this bank and we have been met at every turn by a board, replete with many of the members who delivered us to this exact point, that was only obstinate or silent.

      • Thank you, stockholder too. Your reply took the words right out of my mouth, albeit much more eloquently spoken!

      • Anonymous’ comments are indicative a why there was never any change over at CFNB. There were many employees that defended the wrong doers and denied that any wrong doing ocurred. I can assure you that there were serious Human Resource and lending issues while I was an employee. I would also like to add that as a residential originator it was not uncommon for self-employed borrowers that had commercial dealings with the bank to refuse to provide me with proper income documentation. Since residential loans were required to adhere to Fannie or Freddie guidelines I could not waive the requirements with the flourish of a pen. I was then asked to take the time out of my busy schedule to retrieve the documents from their commercial loans with CFNB. I can can tell you the tax returns were not there. The commercial files I saw had missing tax returns, some files didn’t have any or they were very outdated. Other lenders that I worked for would do valuation reviews on a consistent basis and would modify down residential and commercial line of credits to reduce risk exposure. Shouldn’t commercial lines be reviewed quarterly or semi annually or ever to reduce the risk to the bank? The naysayers on this site prefer to remain anonymous and that is their right but I think their refusal to put their name and reputation to their comments speaks volumes….

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