Pinnacle Bank Announces Q1 2014 Results

PBNK - Pinnacle Bank, headquartered in Gilroy, California, announced today unaudited net income for the three months ended March 31, 2014 of $160,000 compared to $109,000 in the same period of 2013.

As of March 31, 2014, total assets were $206.0 million, an 18% increase from the $175.2 million at March 31, 2013.

Loans were $148.8 million at March 31, 2014, an increase of $11.9 million (9%) from the March 31, 2013 balance of $136.9 million. The allowance for loan losses at March 31, 2014 was $3.4 million or 2.31% of loans compared to $2.7 million or 2.0% of loans at March 31, 2013. Nonperforming assets were reduced to $2.7 million (1.33% of assets) at March 31, 2014 from $3.2 million (1.85% of assets) a year earlier.

Non-interest bearing deposits at March 31, 2014, increased 44% to $66.7 million from $46.3 million at March 31, 2013. Total deposits at March 31, 2014, were $182.1 million compared to $157.3 million at March 31, 2013, a 16% increase.

“Our first quarter 2014 performance continues to build upon the achievements of 2013 and reflects additional growth in our loan and deposit portfolios in our local markets. The gradual and uneven improvement in local market conditions can be seen in recovering real estate values and other economic measures. 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. “The 44% year-over-year growth in non-interest bearing deposits highlights the solid local core business banking relationships we have added in the last year,” added Ms. Black. “Our commitment to Monterey County, as evidenced by our new director Paul Bruno and the new Salinas location which opened in the second quarter of 2013, has never been stronger. We are building a solid franchise and remain optimistic about future opportunities.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At March 31, 2014, the Bank had a total risk based capital ratio of 11.32%. Book value per share at March 31, 2014 was $7.04. Net interest margin in the first quarter of 2014 was 4.77%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 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 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 March 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)
        
        
        
        
          3/31/2014
        
        
           
        
        
          12/31/2013
        
        
           
        
        
          3/31/2013
        
        
           
        
        
          $
        
        
           
        
        
          %
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          205,988
        
        
        
        
        
        
          $
        
        
          189,728
        
        
        
        
        
        
          $
        
        
          175,150
        
        
        
        
        
        
          $
        
        
          30,838
        
        
        
        
           
        
        
          18
        
        
          %
        
      
      
        
          Gross loans
        
        
        
        
          $
        
        
          148,811
        
        
        
        
        
        
          $
        
        
          147,199
        
        
        
        
        
        
          $
        
        
          136,879
        
        
        
        
        
        
          $
        
        
          11,932
        
        
        
        
        
        
          9
        
        
          %
        
      
      
        
          Allowance for loan losses
        
        
        
        
          $
        
        
          (3,433
        
        
          )
        
        
        
        
          $
        
        
          (3,460
        
        
          )
        
        
        
        
          $
        
        
          (2,677
        
        
          )
        
        
        
        
          $
        
        
          (756
        
        
          )
        
        
        
        
          28
        
        
          %
        
      
      
        
          Non-interest bearing deposits
        
        
        
        
          $
        
        
          66,746
        
        
        
        
        
        
          $
        
        
          59,436
        
        
        
        
        
        
          $
        
        
          46,258
        
        
        
        
        
        
          $
        
        
          20,488
        
        
        
        
        
        
          44
        
        
          %
        
      
      
        
          Interest-bearing deposits
        
        
        
        
          $
        
        
          115,326
        
        
        
        
        
        
          $
        
        
          106,687
        
        
        
        
        
        
          $
        
        
          111,062
        
        
        
        
        
        
          $
        
        
          4,264
        
        
        
        
        
        
          4
        
        
          %
        
      
      
        
          Total deposits
        
        
        
        
          $
        
        
          182,072
        
        
        
        
        
        
          $
        
        
          166,123
        
        
        
        
        
        
          $
        
        
          157,320
        
        
        
        
        
        
          $
        
        
          24,752
        
        
        
        
        
        
          16
        
        
          %
        
      
      
        
          Shareholders' equity
        
        
        
        
          $
        
        
          23,174
        
        
        
        
        
        
          $
        
        
          22,963
        
        
        
        
        
        
          $
        
        
          16,743
        
        
        
        
        
        
          $
        
        
          6,431
        
        
        
        
        
        
          38
        
        
          %
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
        
      
      
        
          

Summary Income Statement

(Unaudited, dollars in thousands

        
        
        
        
          Quarter ended
        
        
        
        
          Quarter ended
        
        
        
        
          Change
        
        
        
        
          Quarter ended
        
        
        
        
          Change
        
      
      
        
          

except per share data)

        
        
        
        
          3/31/2014
        
        
           
        
        
          12/31/2013
        
        
           
        
        
          

 

%

        
        
           
        
        
          3/31/2013
        
        
           
        
        
          

 

%

        
      
      
        
          Interest income
        
        
        
        
          $
        
        
          2,160
        
        
        
        
          $
        
        
          1,897
        
        
        
        
          14
        
        
          %
        
        
        
        
          $
        
        
          1,833
        
        
        
        
          18
        
        
          %
        
      
      
        
          Interest expense
        
        
        
        
           
        
        
          75
        
        
           
        
        
           
        
        
          78
        
        
        
        
          -4
        
        
          %
        
        
        
        
           
        
        
          93
        
        
        
        
          -20
        
        
          %
        
      
      
        
          Net interest income
        
        
        
        
        
        
          2,085
        
        
        
        
        
        
          1,818
        
        
        
        
          15
        
        
          %
        
        
        
        
        
        
          1,740
        
        
        
        
          20
        
        
          %
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          0
        
        
        
        
        
        
          0
        
        
        
        
          0
        
        
          %
        
        
        
        
        
        
          94
        
        
        
        
          -100
        
        
          %
        
      
      
        
          Non-interest income
        
        
        
        
        
        
          219
        
        
        
        
        
        
          273
        
        
        
        
          -20
        
        
          %
        
        
        
        
        
        
          172
        
        
        
        
          28
        
        
          %
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          2,029
        
        
        
        
        
        
          1,734
        
        
        
        
          17
        
        
          %
        
        
        
        
        
        
          1,709
        
        
        
        
          19
        
        
          %
        
      
      
        
          Income tax expense
        
        
        
        
           
        
        
          116
        
        
           
        
        
           
        
        
          137
        
        
        
        
          -15
        
        
          %
        
        
        
        
           
        
        
          0
        
        
        
        
          nm
        
      
      
        
          Net income (loss)
        
        
        
        
          $
        
        
          160
        
        
           
        
        
          $
        
        
          221
        
        
        
        
          -28
        
        
          %
        
        
        
        
          $
        
        
          109
        
        
        
        
          46
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings (loss) per share
        
        
        
        
          $
        
        
          0.05
        
        
        
        
          $
        
        
          0.07
        
        
        
        
          -28
        
        
          %
        
        
        
        
          $
        
        
          0.03
        
        
        
        
          46
        
        
          %
        
      
      
        
          Book value per share
        
        
        
        
          $
        
        
          7.04
        
        
        
        
          $
        
        
          7.02
        
        
        
        
        
        
        
        
        
        
          $
        
        
          5.09
        
        
        
        
        
        
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Minimum
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          required to be
        
      
      
        
          

Capital Ratios

        
        
        
        
          3/31/2014
        
        
           
        
        
          12/31/2013
        
        
           
        
        
          3/31/2013
        
        
           
        
        
          well-capitalized
        
      
      
        
          Tier 1 leverage ratio
        
        
        
        
          9.40
        
        
          %
        
        
        
        
          9.54
        
        
          %
        
        
        
        
          9.89
        
        
          %
        
        
        
        
          5.00
        
        
          %
        
      
      
        
          Tier 1 risk-based capital ratio
        
        
        
        
          10.06
        
        
          %
        
        
        
        
          10.21
        
        
          %
        
        
        
        
          10.32
        
        
          %
        
        
        
        
          6.00
        
        
          %
        
      
      
        
          Total risk-based capital ratio
        
        
        
        
          11.32
        
        
          %
        
        
        
        
          11.47
        
        
          %
        
        
        
        
          11.58
        
        
          %
        
        
        
        
          10.00
        
        
          %
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
          

Nonperforming assets

        
        
        
        
          3/31/2014
        
        
           
        
        
          12/31/2013
        
        
           
        
        
          3/31/2013
        
      
      
        
          Nonperforming assets
        
        
        
        
          $
        
        
          2,738
        
        
        
        
        
        
          $
        
        
          2,802
        
        
        
        
        
        
          $
        
        
          3,233
        
        
        
      
      
        
          Nonperforming assets to total assets
        
        
        
        
        
        
          1.33
        
        
          %
        
        
        
        
        
        
          1.48
        
        
          %
        
        
        
        
        
        
          

1.85

        
        
          %
        
      
      
        
          Allowance for loan losses to nonperforming loans
        
        
        
        
        
        
          247
        
        
          %
        
        
        
        
        
        
          238
        
        
          %
        
        
        
        
        
        
          195
        
        
          %
        
      
    
    

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