PBNK Pinnacle Bank (QB)

Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its unaudited results for the three months ended March 31, 2010.

As of March 31, 2010, total assets increased to $147.1 million, a 2% increase over the $144.6 million at December 31, 2009. The March 31, 2010, total assets represent a 10% increase over the $134.1 million in total assets at March 31, 2009.

Loans were $119.0 million at March 31, 2010, an increase of $2.0 million from the December 31, 2009, balance of $117.0 million, a 2% increase in the first quarter of 2010. The March 31, 2010 loans decreased $2.2 million or 1.8% compared to $121.2 million one year earlier.

Deposits at March 31, 2010 grew to $130.5 million, a 3% increase over $127.4 million at December 31, 2009. March 31, 2010 deposits were $18.9 million more than the $111.7 million at March 31, 2009, a 17% increase.

“Our growth comes from our focus on building strong relationships with small to medium-sized businesses in our communities. In these challenging economic times, clients value relationships with community bankers and continue to choose our brand of banking over other offerings in the market,” said Susan K. Black, President & CEO. Ms. Black further stated, “We continue to support our communities by actively lending to local businesses, individuals and nonprofit organizations.”

Ms. Black added, “We have made substantial progress since the onset of the disruptions in the financial markets in 2008. Our performance is a result of our strategic emphasis on improving net interest margin and asset quality within the framework of safe, controlled growth and a strong balance sheet. The ongoing support of our organizers, shareholders and clients is a key factor in our success.”

During the first quarter of 2010, the Bank had $724 thousand in loan chargeoffs compared to $600 thousand in the fourth quarter of 2009. The allowance for loan losses at March 31, 2010, was $2.8 million or 2.3% of loans.

Pinnacle Bank raised $1.9 million in capital during the fourth quarter of 2009 through a private placement. The bank’s capital position remains substantially above regulatory guidelines for well capitalized banks. At March 31, 2010, the Bank had a total risk based capital ratio of 13.14%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 2010 call report.

Summary Balance Sheet           (Unaudited, dollars in thousands)   3/31/2010       12/31/2009    

%Change

      3/31/2009    

%Change

  Total assets $ 147,088 $ 144,587 2 % $ 134,110 10 % Gross loans 119,028 116,962 2 % 121,225 -2 % Allowance for loan losses (2,751 ) (2,896 ) -5 % (1,550 ) 78 % Deposits Non-interest bearing 19,866 19,952 0 % 13,571 46 % Interest-bearing   110,679       107,460   3 %   98,098   13 % Total deposits 130,545 127,412 2 % 111,668 17 % Shareholders' equity 16,025 16,655 -4 % 18,878 -15 % Summary Income Statement       (Unaudited, dollars in thousands except per share data)   3/31/2010       12/31/2009       12/31/2009   Interest income $ 1,780 $ 1,802 $ 7,178 Interest expense   377       444       2,208   Net interest income 1,403 1,358 4,970 Provision for loan losses 567 389 4,621 Non-interest income 50 19 137 Non-interest expense   1,580       1,483       5,908   Net loss   ($694 )     ($495 )     ($5,422 )   Loss per share ($0.21 ) ($0.18 ) ($1.97 ) Net interest margin 4.12 % 3.95 % 3.88 %

 

  Minimum required to be   3/31/2010       12/31/2009     well-capitalized Tier 1 leverage ratio 11.06 % 11.70 % 5.00 % Tier 1 risk-based capital ratio 11.88 % 12.10 % 6.00 % Total risk-based capital ratio 13.14 % 13.40 % 10.00 %

 

  (dollars in thousands)   3/31/2010       12/31/2009       9/30/2009   Nonperforming assets $ 4,308 $ 5,931 $ 6,990 Nonperforming assets to total assets 2.93 % 4.10 % 4.98 % Allowance for loan losses to total loans 2.31 % 2.48 % 2.39 %

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 small to medium-sized businesses, offering a variety of products and services that combine the best of personal touch with convenient technology-based client service. Pinnacle Bank has locations in Morgan Hill, Gilroy and Salinas.