GILROY, Calif., July 30, 2021 /PRNewswire/ -- Pinnacle Bank (OTCQB: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the three months ended June 30, 2021 of $2,399,000 compared to $1,077,000 in the same period in 2020. The public health and economic uncertainties that emerged in March 2020 were the basis for a provision for loan losses of $420,000 in the second quarter of 2020 compared to no provision in the second quarter of 2021.
As of June 30, 2021, total assets were $696.0 million, an 11% increase from the $624.7 million at June 30, 2020.
Gross loans were $467.3 million at June 30, 2021, a decrease of $16.6 million (-3%) from the June 30, 2020 balance of $484.0 million. Gross Paycheck Protection Program (PPP) loans at June 30, 2021 were $71.8 million compared to $125.6mm a year earlier. Excluding the PPP loans, gross loans increased $37.1 million or 10%. The allowance for loan losses at June 30, 2021 was $6.164 million or 1.34% of loans (1.58% of net loans excluding the PPP loans) compared to $5.149 million or 1.14% of loans at June 30, 2020 (1.53% excluding PPP loans).
Total deposits at June 30, 2021, increased to $622.9 million from $550.2 million at June 30, 2020, a 13% increase.
Gains on the sale of government guaranteed loans were $2.0mm in the second quarter of 2021 compared to $362,000 in the same period in 2020. The increase reflects borrower demand for financing using the enhancements to the SBA 7a program available through September 2021 and the prices paid by buyers of the guarantees.
"As our markets see economic improvements with the changes in the pandemic restrictions, our communities continue to see opportunities for growth. Our strong second quarter earnings and double-digit growth in loans and deposits reflects the success our approach to combine relationship banking with participation in government guaranteed lending," stated Jeffrey Payne, President and CEO. "We are honored to contribute to the success of our communities by providing premier business banking from Salinas Valley to Silicon Valley. Our continued success and momentum is due to the ongoing efforts and contributions of our outstanding team of professional bankers, committed directors and advisors and our many loyal clients."
As of June 30, 2021, there was one loan for $691,000 with a COVID loan modification, compared to 3 loans totaling $5.9 million at March 31, 2021. All of these loans were on performing status. COVID loan modifications are generally for interest only periods.
The Bank's capital position remains above regulatory guidelines for well capitalized banks. At June 30, 2021, the Bank had a total capital ratio of 14.94%. Book value per share at June 30, 2021 was $11.60.
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. DepositAccounts.com awarded Pinnacle Bank an A+ rating with a ranking of 80 out of 5,035 U. S. banks analyzed. The Findley Reports named Pinnacle Bank a 2020 Super Premier performing bank.
For more information please go to www.pinnacle.bank click on Investor Relations and June 2021 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, Salinas and Campbell. For more information please go to www.pinnacle.bank click on Investor Relations and June 2021 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 Jeffrey D. Payne, President & CEO 408-762-7146