Pinnacle Bank Announces Eighth Consecutive Profitable Quarter

Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its eighth consecutive profitable quarter. For the three months ended June 30, 2012, the Bank reported net income of $267,000 compared to $148,000 in the comparable quarter of 2011.

As of June 30, 2012, total assets were $160.0 million, a 9% increase from the $147.2 million at June 30, 2011.

Loans were $124.5 million at June 30, 2012, an increase of $9.6 million (8%) from the June 30, 2011, balance of $114.9 million. The allowance for loan losses at June 30, 2012, was $2.8 million or 2.2% of loans. Nonaccrual loans at June 30, 2012, were $1.5 million, a reduction of $0.3 million from $1.8 million at December 31, 2011.

Deposits at June 30, 2012, were $141.8 million compared to $130.3 million at June 30, 2011, a 9% increase. June 30, 2012, non-interest bearing deposits increased 21% over June 30, 2011, from $31.7 million to $38.5 million.

“We are very pleased to report our eighth consecutive quarter of increased profitability,” said Susan K. Black, President and CEO. “Our team of professional bankers continues to add core relationships with businesses and professionals in Santa Clara, Monterey and San Benito Counties. We are focused on building a solid franchise through careful, controlled growth and remain optimistic about future opportunities.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At June 30, 2012, the Bank had a total risk based capital ratio of 12.78%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and June 2012 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 small to medium-sized businesses, 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 June 2012 call report.

12 Month

%

Summary Balance Sheet

6/30/2012

12/31/2011

6/30/2011

Change

        
      
      
        
          (Unaudited, dollars in thousands)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          160,024
        
        
        
        
          $
        
        
          154,911
        
        
        
        
          $
        
        
          147,155
        
        
        
        
          9%
        
      
      
        
          Gross loans
        
        
        
        
          $
        
        
          124,480
        
        
        
        
          $
        
        
          131,800
        
        
        
        
          $
        
        
          114,904
        
        
        
        
          8%
        
      
      
        
          Allowance for loan losses
        
        
        
        
          $
        
        
          (2,765)
        
        
        
        
          $
        
        
          (2,771)
        
        
        
        
          $
        
        
          (2,652)
        
        
        
        
          4%
        
      
      
        
          Deposits
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Non-interest bearing
        
        
        
        
          $
        
        
          38,457
        
        
        
        
          $
        
        
          35,675
        
        
        
        
          $
        
        
          31,726
        
        
        
        
          21%
        
      
      
        
          Interest-bearing
        
        
        
        
          $
        
        
          103,379
        
        
        
        
          $
        
        
          102,042
        
        
        
        
          $
        
        
          98,599
        
        
        
        
          5%
        
      
      
        
          Total deposits
        
        
        
        
          $
        
        
          141,836
        
        
        
        
          $
        
        
          137,717
        
        
        
        
          $
        
        
          130,324
        
        
        
        
          9%
        
      
      
        
          Shareholders' equity
        
        
        
        
          $
        
        
          16,989
        
        
        
        
          $
        
        
          16,381
        
        
        
        
          $
        
        
          15,992
        
        
        
        
          6%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
          

Summary Income Statement

 

Quarter

Quarter

Quarter

(Unaudited, dollars in thousands

ended

ended

ended

except per share data)

        
        
        
        
        
        
          6/30/2012
        
        
        
        
        
        
        
        
          3/31/2012
        
        
        
        
        
        
        
        
          6/30/2011
        
        
        
      
      
        
          Interest income
        
        
        
        
          $
        
        
          1,834
        
        
        
        
        
        
          $
        
        
          1,916
        
        
        
        
        
        
          $
        
        
          1,750
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
          129
        
        
        
        
        
        
        
        
          150
        
        
        
        
        
        
        
        
          192
        
        
        
      
      
        
          Net interest income
        
        
        
        
        
        
          1,705
        
        
        
        
        
        
        
        
          1,766
        
        
        
        
        
        
        
        
          1,558
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          0
        
        
        
        
        
        
        
        
          0
        
        
        
        
        
        
        
        
          65
        
        
        
      
      
        
          Non-interest income
        
        
        
        
        
        
          134
        
        
        
        
        
        
        
        
          210
        
        
        
        
        
        
        
        
          165
        
        
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          1,572
        
        
        
        
        
        
        
        
          1,679
        
        
        
        
        
        
        
        
          1,510
        
        
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          267
        
        
        
        
        
        
          $
        
        
          297
        
        
        
        
        
        
          $
        
        
          148
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share
        
        
        
        
          $
        
        
          0.08
        
        
        
        
        
        
          $
        
        
          0.09
        
        
        
        
        
        
          $
        
        
          0.04
        
        
        
      
      
        
          Net interest margin
        
        
        
        
        
        
          4.69
        
        
          %
        
        
        
        
        
        
          4.72
        
        
          %
        
        
        
        
        
        
          4.51
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
          Minimum
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          

required to be

Capital Ratios

        
        
        
        
          6/30/2012
        
        
           
        
        
          3/31/2012
        
        
           
        
        
          12/31/2011
        
        
           
        
        
          well-capitalized
        
      
      
        
          Tier 1 leverage ratio
        
        
        
        
          10.64
        
        
          %
        
        
        
        
          10.40
        
        
          %
        
        
        
        
          10.11
        
        
          %
        
        
        
        
          5.00
        
        
          %
        
      
      
        
          Tier 1 risk-based capital ratio
        
        
        
        
          11.52
        
        
          %
        
        
        
        
          11.53
        
        
          %
        
        
        
        
          11.18
        
        
          %
        
        
        
        
          6.00
        
        
          %
        
      
      
        
          Total risk-based capital ratio
        
        
        
        
          12.78
        
        
          %
        
        
        
        
          12.79
        
        
          %
        
        
        
        
          12.43
        
        
          %
        
        
        
        
          10.00
        
        
          %