PBNK Pinnacle Bank (QB)

PBNK - Pinnacle Bank, headquartered in Gilroy, California, announced today unaudited net income for the three months ended September 30, 2014 of $346,000 compared to $5,975,000 in the same period of 2013. During the third quarter of 2013, the valuation allowance was reversed on $5.833 million of deferred tax assets. Income before taxes for the three months ended September 30, 2014 was $576,000 a 307% increase from the $142,000 for the same period of 2013.

As of September 30, 2014, total assets were $222.0 million, an 18% increase from the $188.6 million at September 30, 2013.

Loans were $159.2 million at September 30, 2014, an increase of $17.9 million (13%) from the September 30, 2013 balance of $141.3 million. The allowance for loan losses at September 30, 2014 was $3.5 million or 2.20% of loans compared to $3.4 million or 2.42% of loans at September 30, 2013. Nonperforming assets were $2.8 million (1.25% of assets) at September 30, 2014 compared to $2.9 million (1.54% of assets) a year earlier.

Non-interest bearing deposits at September 30, 2014, increased 44% to $79.1 million from $54.9 million at September 30, 2013. Total deposits at September 30, 2014, were $196.8 million compared to $164.8 million at September 30, 2013, a 19% increase.

“We are very pleased to report strong core growth and quality earnings,” stated Susan K. Black, President and CEO. “We continue to focus on the fundamentals of community banking and are growing through building our reputation as the bank of choice for clients, employees and investors. New core relationships generated 44% year-over-year growth in non-interest bearing deposits as total deposits grew 19%. Loans have grown 13% and total assets have increased 18% over the same period. Businesses and professionals in Santa Clara, Monterey and San Benito counties are selecting the Pinnacle brand of community banking because of our team of expert bankers and exceptional service,” she added. “The economic vitality of our region is once again among the nation’s leaders. We remain optimistic about the potential for further organic growth as we continue to build franchise value in our local markets.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At September 30, 2014, the Bank had a total risk based capital ratio of 11.17%. Book value per share at September 30, 2014 was $7.19.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and September 2014 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 September 2014 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.

        Summary Balance Sheet Year over year change (Unaudited, dollars in thousands) 9/30/2014   6/30/2014   9/30/2013   $   % Total assets $ 222,014 $ 212,121 $ 188,594 $ 33,420   18% Gross loans $ 159,182 $ 153,279 $ 141,253 $ 17,929 13% Allowance for loan losses $ (3,508 ) $ (3,465 ) $ (3,419 ) $ (89 ) 3% Non-interest bearing deposits $ 79,087 $ 72,532 $ 54,884 $ 24,203 44% Interest-bearing deposits $ 117,698 $ 114,742 $ 109,935 $ 7,763 7% Total deposits $ 196,785 $ 187,275 $ 164,819 $ 31,966 19% Shareholders' equity $ 23,862 $ 23,451 $ 22,774 $ 1,088 5%     Summary Income Statement (Unaudited, dollars in thousands   Quarter ended   Quarter ended   Change   Quarter ended   Change except per share data) 9/30/2014   6/30/2014   %   9/30/2013     % Interest income $ 2,058 $ 1,997 3 % $ 2,147 -4 % Interest expense   78     78 0 %   77   1 % Net interest income 1,980 1,919 3 % 2,070 -4 % Provision for loan losses 0 0 0 % 0 0 % Non-interest income 423 339 25 % 183 131 % Non-interest expense 1,827 1,860 -2 % 2,112 -13 % Income tax expense   230     161 43 %   (5,833 ) -104 % Net income (loss) $ 346   $ 236 46 % $ 5,975   -94 %   Earnings (loss) per share $ .10 $ 0.07 36 % $ 1.81 -95 % Book value per share $ 7.19 $ 7.12 $ 6.92          

 

Capital Ratios 9/30/2014   6/30/2014   9/30/2013  

Minimumrequired to bewell-capitalized

Tier 1 leverage ratio 8.84 % 9.28 % 10.00 % 5.00 % Tier 1 risk-based capital ratio 9.92 % 10.15 % 10.45 % 6.00 % Total risk-based capital ratio 11.17 % 11.41 % 11.71 % 10.00 %       Nonperforming assets 9/30/2014   6/30/2014   9/30/2013 Nonperforming assets $ 2,786 $ 2,738 $ 2,908 Nonperforming assets to total assets 1.25 % 1.29 % 1.54 % Allowance for loan losses to nonperforming loans 244 % 250 % 219 %

Pinnacle BankSusan K. Black, 408-762-7140President & CEO