PBNK Pinnacle Bank (QB)

PBNK - Pinnacle Bank, headquartered in Gilroy, California, announced today unaudited income before income taxes was $1,598,000 in 2014, up 112% from 2013’s $753,000. Net income for 2014 of $965,000 compared to $6,450,000 in 2013. The 2013 net income included an income tax credit of $5,697,000 related to the reversal of the valuation allowance for deferred tax assets.

As of December 31, 2014, total assets were $230.4 million, a 21% increase from the $189.7 million at December 31, 2013.

Loans were $161.9 million at December 31, 2014, an increase of $14.7 million (10%) from the December 31, 2013 balance of $147.2 million. The allowance for loan losses at December 31, 2014 was $3.5 million or 2.18% of loans compared to $3.5 million or 2.35% of loans at December 31, 2013. Nonperforming assets were reduced to $2.3 million (0.99% of assets) at December 31, 2014 from $2.8 million (1.48% of assets) a year earlier.

Non-interest bearing deposits at December 31, 2014, increased 37% to $81.4 million from $59.4 million at December 31, 2013. Total deposits at December 31, 2014, were $205.3 million compared to $166.1 million at December 31, 2013, a 24% increase.

“We are pleased to report a strong year of growth and profitability. New highs in revenue, assets, loans and deposits demonstrate the success achieved by our team of directors, advisors, management and employees. We believe our markets continue to bear opportunities for organic growth with high quality loan demand and core deposits,” stated Susan K. Black, President and CEO. “Our focus on relationships helped us attain 37% year-over-year growth in non-interest bearing deposits and emphasizes the quality core business relationships we have added in the last year,” added Ms. Black. “While the environment for community banks remains challenging, our franchise is solid and we remain optimistic about future opportunities.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2014, the Bank had a total risk based capital ratio of 11.63%. Book value per share at December 31, 2013 was $7.24. Net interest margin in the fourth quarter of 2014 was 3.76%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and December 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 December 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) 12/31/2014   9/30/2014   12/31/2013   $   % Total assets $ 230,423 $ 222,014 $ 189,728 $ 40,696   21 % Gross loans $ 161,863 $ 159,182 $ 147,199 $ 14,664 10 % Allowance for loan losses $ (3,535 ) $ (3,508 ) $ (3,460 ) $ (75 ) 2 % Non-interest bearing deposits $ 81,395 $ 79,087 $ 59,436 $ 21,959 37 % Interest-bearing deposits $ 123,951 $ 117,698 $ 106,687 $ 17,264 16 % Total deposits $ 205,346 $ 196,785 $ 166,123 $ 39,223 24 % Shareholders' equity $ 24,130 $ 23,862 $ 22,963 $ 1,167 5 %   Summary Income Statement         (Unaudited, dollars in thousands Year ended Year ended Year over year change except per share data) 12/31/2014   12/31/2013   $   % Interest income $ 8,300 $ 7,676 $ 624 8% Interest expense   318     333       (15 ) -5% Net interest income 7,982 7,344 638 9% Provision for loan losses 0 173 (173 ) -100% Non-interest income 1,232 854 378 44% Non-interest expense 7,616 7,271 345 5% Income tax expense   633     (5,697 )     6,330   -111% Net income (loss) $ 965   $ 6,450     $ (5,485 ) -85%   Earnings (loss) per share $ 0.27 $ 1.96 $ (1.69 ) -86% Book value per share $ 7.24 $ 7.02           Minimum required to be Capital Ratios 12/31/2014   9/30/2014   12/31/2013   well-capitalized Tier 1 leverage ratio 8.69 % 8.84 % 9.54 % 5.00 % Tier 1 risk-based capital ratio 10.37 % 9.92 % 10.21 % 6.00 % Total risk-based capital ratio 11.63 % 11.17 % 11.47 % 10.00 %   Nonperforming assets   12/31/2014   9/30/2014   12/31/2013 Nonperforming assets $ 2,287   $ 2,786   $ 2,802 Nonperforming assets to total assets 0.99 % 1.25 % 1.54 % Allowance for loan losses to nonperforming loans 377 % 244 % 238 %  

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