Pinnacle Bank Announces 2015 Results

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Feb 01, 2016, 12:43 ET

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GILROY, Calif., Feb. 1, 2016 /PRNewswire/ -- Pinnacle Bank (OTCQX: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the year ended December 31, 2015 of $1,029,000, an increase of 6.6% over 2014 net income of $965,000.

As of December 31, 2015, total assets were $252.9 million, a 10% increase from the $230.4 million at December 3, 2014.

Loans were $191.1 million at December 31, 2015, an increase of $29.3 million (18%) from the December 31, 2014 balance of $161.9 million. The allowance for loan losses at December 31, 2015 was $3.3 million or 1.71% of loans compared to $3.5 million or 2.20% of loans at December 31, 2014.

Non-interest bearing deposits at December 31, 2015, increased 26% to $102.6 million from $81.4 million at December 31, 2014. Total deposits at December 31, 2015, were $225.9 million compared to $205.3 million at December 31, 2014, a 10% increase.

Nonperforming assets were $1.8 million (0.72% of assets) at December 31, 2015 compared to $2.3 million (0.99% of assets) a year earlier.

During the fourth quarter, the Bank reduced the allowance for loan losses by $400,000 in recognition of improved credit quality.

"2015 was a pivotal year for Pinnacle Bank. Credit quality improved and we continued to post solid double-digit balance sheet growth, with core non-interest bearing assets increasing 26%. To enhance our revenue producing activities, during 2015 the Bank invested in personnel in the areas of SBA and business development," stated Susan K. Black, President and CEO. "We remain focused on the fundamentals of community banking and especially appreciate the many business owners and nonprofit executives who choose Pinnacle Bank as their banking partner. As we celebrate the Bank's 10^th year in operation, our directors, advisors and bankers are as committed as they were on the day the Bank opened to our vision, focused business strategy, and the long-term success of the Bank."

The Bank's capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2015, the Bank had a total capital ratio of 11.79%. Book value per share at December 31, 2015 was $7.43. Net interest margin in 2015 was 3.79%.

Pinnacle Bank is rated by Bauer Financial as Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and December 2015 call report.

About Pinnacle Bank
Pinnacle Bank is a full-service business bank dedicated to providing quality depository and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for businesses and nonprofit organizations, offering a variety of products and services that combine the best of personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy and Salinas. For more information please go to www.pinnaclebankonline.com click on Investor Relations and December 2015 call report.

Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Media Contact:
Pinnacle Bank
Susan K. Black, President & CEO
408-762-7140

Summary Balance Sheet				Year over year change
(Unaudited, dollars in thousands)	12/31/2015	9/30/2015	12/31/2014	$	%
Total assets	$ 252,948	$ 242,999	$ 230,423	$ 22,524	10%
Gross loans	$ 191,135	$ 179,752	$ 161,863	$ 29,272	18%
Allowance for loan losses	$ (3,277)	$ (3,643)	$ (3,535)	$ 258	-7%
Non-interest bearing deposits	$ 102,616	$ 92,940	$ 81,395	$ 21,221	26%
Interest-bearing deposits	$ 123,296	$ 123,477	$ 123,951	$ (655)	-1%
Total deposits	$ 225,912	$ 216,417	$ 205,346	$ 20,566	10%
Shareholders' equity	$ 25,420	$ 24,892	$ 24,130	$ 1,291	5%

Summary Income Statement
(Unaudited, dollars in thousands	Year ended	Year ended	Change	Change
except per share data)	12/31/2015	12/31/2014	$	%
Interest income	$ 8,721	$ 8,300	$ 421	5.1%
Interest expense	306	318	(12)	-3.8%
Net interest income	8,415	7,982	433	5.4%
Provision for loan losses	(400)	0	(400)	n/m%
Non-interest income	1,370	1,232	138	11.2%
Non-interest expense	8,434	7,616	818	10.7%
Income tax expense	722	633	89	14.1%
Net income (loss)	$ 1,029	$ 965	$ 64	6.6%

Basic earnings per share	$0.31	$0.29	$0.02	6.9%
Diluted earnings per share	$0.29	$0.27	$0.02	7.4%
Book value per share	$7.43	$7.24	$0.19	2.7%
Shares outstanding at period end	3,423,156	3,332,266	90,890	2.7%

				Minimum
				required to be
Capital Ratios	12/31/2015	9/30/2015	12/31/2014	well-capitalized
Tier 1 leverage ratio	8.95%	9.16%	8.69%	5.00%
Common Equity Tier 1 capital ratio	10.52%	10.72%	n/a	6.50%
Tier 1 capital ratio	10.52%	10.72%	10.37%	8.00%
Total capital ratio	11.79%	11.99%	11.63%	10.00%

Nonperforming assets	12/31/2015	9/30/2015	12/31/2014
Nonperforming assets	$ 1,830	$ 2,242	$ 2,287
Nonperforming assets to total assets	0.72%	0.92%	0.99%
Allowance for loan losses to nonperforming loans	683%	409%	377%