Pinnacle Bank Announces Seventh Consecutive Profitable Quarter

Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its seventh consecutive profitable quarter. For the three months ended March 31, 2012, the Bank reported net income of $297,000 compared to $118,000 in the comparable quarter of 2011.

As of March 31, 2012, total assets were $163.1 million, an 8% increase from the $151.3 million at March 31, 2011.

Loans were $126.3 million at March 31, 2012, an increase of $13.5 million (12%) from the March 31, 2011, balance of $112.8 million. The allowance for loan losses at March 31, 2012, was $2.8 million or 2.2% of loans. Nonaccrual loans at March 31, 2012, were $1.5 million, a reduction of $0.3 million from $1.8 million at December 31, 2011.

Deposits at March 31, 2012, were $145.3 million compared to $134.8 million at March 31, 2011, an 8% increase. March 31, 2012, non-interest bearing deposits increased 7% over March 31, 2011, from $32.6 million to $36.2 million.

“Our seven straight quarters of profitability reflect the progress we have made in building a strong balance sheet,” said Susan K. Black, President and CEO. Ms. Black further stated, “While the economy continues to work through a number of uncertainties, our team of professional bankers continues to add core relationships with businesses and professionals in Santa Clara, Monterey and San Benito counties. We continue to build our 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 March 31, 2012, the Bank had a total risk based capital ratio of 12.79%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 2012 call report.

Summary Balance Sheet

3/31/2012

12/31/2011

3/31/2011

12 Month% Change

        
      
      
        
          (Unaudited, dollars in thousands)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
        
        
          $
        
        
          163,135
        
        
        
        
        
        
        
        
          $
        
        
          154,911
        
        
        
        
        
        
        
        
          $
        
        
          151,297
        
        
        
        
        
        
        
        
          8
        
        
          %
        
      
      
        
          Gross loans
        
        
        
        
        
        
          $
        
        
          126,276
        
        
        
        
        
        
        
        
          $
        
        
          131,800
        
        
        
        
        
        
        
        
          $
        
        
          112,776
        
        
        
        
        
        
        
        
          12
        
        
          %
        
      
      
        
          Allowance for loan losses
        
        
        
        
        
        
          $
        
        
          (2,782
        
        
          )
        
        
        
        
        
        
          $
        
        
          (2,771
        
        
          )
        
        
        
        
        
        
          $
        
        
          (2,580
        
        
          )
        
        
        
        
        
        
          8
        
        
          %
        
      
      
        
          Deposits
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Non-interest bearing
        
        
        
        
        
        
          $
        
        
          36,172
        
        
        
        
        
        
        
        
          $
        
        
          35,675
        
        
        
        
        
        
        
        
          $
        
        
          32,626
        
        
        
        
        
        
        
        
          11
        
        
          %
        
      
      
        
          Interest-bearing
        
        
        
        
        
        
          $
        
        
          109,107
        
        
        
        
        
        
        
        
          $
        
        
          102,042
        
        
        
        
        
        
        
        
          $
        
        
          102,183
        
        
        
        
        
        
        
        
          7
        
        
          %
        
      
      
        
          Total deposits
        
        
        
        
        
        
          $
        
        
          145,279
        
        
        
        
        
        
        
        
          $
        
        
          137,717
        
        
        
        
        
        
        
        
          $
        
        
          134,809
        
        
        
        
        
        
        
        
          8
        
        
          %
        
      
      
        
          Shareholders' equity
        
        
        
        
        
        
          $
        
        
          16,700
        
        
        
        
        
        
        
        
          $
        
        
          16,381
        
        
        
        
        
        
        
        
          $
        
        
          15,733
        
        
        
        
        
        
        
        
          6
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
          

Summary Income Statement

        
      
      
        
          (Unaudited, dollars in thousands
        
        
           
        
        
           
        
        
          

Quarterended

Quarterended

Quarterended

        
      
      
        
          except per share data)
        
        
        
        
        
        
          

3/31/2012

12/31/2011

3/31/2011

        
      
      
        
          Interest income
        
        
        
        
        
        
          $
        
        
          1,916
        
        
        
        
        
        
        
        
          $
        
        
          1,917
        
        
        
        
        
        
        
        
          $
        
        
          1,774
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
           
        
        
          151
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          162
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          226
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
        
        
        
        
          1,766
        
        
        
        
        
        
        
        
        
        
          1,756
        
        
        
        
        
        
        
        
        
        
          1,548
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
        
        
          0
        
        
        
        
        
        
        
        
        
        
          0
        
        
        
        
        
        
        
        
        
        
          22
        
        
        
      
      
        
          Non-interest income
        
        
        
        
        
        
        
        
          210
        
        
        
        
        
        
        
        
        
        
          126
        
        
        
        
        
        
        
        
        
        
          180
        
        
        
      
      
        
          OREO writedown
        
        
        
        
        
        
        
        
          0
        
        
        
        
        
        
        
        
        
        
          300
        
        
        
        
        
        
        
        
        
        
          0
        
        
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
           
        
        
          1,679
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          1,485
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          1,588
        
        
           
        
      
      
        
          Net income (loss)
        
        
        
        
        
        
          $
        
        
          297
        
        
           
        
        
           
        
        
           
        
        
          $
        
        
          97
        
        
           
        
        
           
        
        
           
        
        
          $
        
        
          118
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings (loss) per share
        
        
        
        
        
        
          $
        
        
          0.09
        
        
        
        
        
        
        
        
          $
        
        
          0.03
        
        
        
        
        
        
        
        
          $
        
        
          0.04
        
        
        
      
      
        
          Net interest margin
        
        
        
        
        
        
        
        
          4.72
        
        
          %
        
        
        
        
        
        
        
        
          4.59
        
        
          %
        
        
        
        
        
        
        
        
          4.52
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
          Minimum
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          required to be
        
      
      
        
          

Capital Ratios

        
        
        
        
        
        
          3/31/2012
        
        
           
        
        
           
        
        
          12/31/2011
        
        
           
        
        
           
        
        
          

well-capitalized

        
      
      
        
          Tier 1 leverage ratio
        
        
        
        
        
        
          10.40%
        
        
        
        
        
        
          10.11%
        
        
        
        
        
        
          5.00%
        
      
      
        
          Tier 1 risk-based capital ratio
        
        
        
        
        
        
          11.53%
        
        
        
        
        
        
          11.18%
        
        
        
        
        
        
          6.00%
        
      
      
        
          Total risk-based capital ratio
        
        
        
        
        
        
          12.79%
        
        
        
        
        
        
          12.43%
        
        
        
        
        
        
          10.00%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

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. For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 2012 call report.