Pinnacle Bank Announces Sixth Consecutive Profitable Quarter

Published on Monday, 06 February 2012 21:07 Written by TradersHuddle Staff

GILROY, Calif.-( Business Wire )-

(OTCBB:PBNK.OB) - Pinnacle Bank, headquartered in Gilroy, California, announced today its sixth consecutive profitable quarter. For the three months ended December 31, 2011, the Bank reported net income of $97,000 compared to $92,000 in the comparable quarter of 2010. Net income for 2011 was $551,000 compared to a loss of $1,296,000 in 2010.

As of December 31, 2011, total assets were $154.9 million, a 6% increase from the $146.1 million at December 31, 2010.

Loans were $131.8 million at December 31, 2011, an increase of $11.1 million (9%) from the December 31, 2010, balance of $120.7 million. The allowance for loan losses at December 31, 2011, was $2.8 million or 2.1% of loans. Nonaccrual loans at December 31, 2011, were $1.8 million, a reduction of $4.5 million from $6.3 million at December 31, 2010.

Deposits at December 31, 2011, were $137.7 million compared to $128.5 million at year end 2010, a 7% increase. December 31, 2011, non-interest bearing deposits increased 19% over December 31, 2010, from $29.9 million to $35.7 million.

Pinnacle Bank had one parcel of other real estate owned throughout 2011. During the fourth quarter of 2011, the carrying value was written down $300,000 to $1.86 million. The write down is included in non-interest expense.

“We are very pleased to report six straight quarters of profitability, while continuing to build a strong balance sheet,” said Susan K. Black, President and CEO. Ms. Black further stated, “The strength of our balance sheet relates directly to core relationships we have added as more businesses and professionals in Santa Clara, Monterey and San Benito counties are choosing to work with our team of professional bankers. We continue to build our franchise through careful, controlled growth and are optimistic about future opportunities.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2011, the Bank had a total risk based capital ratio of 12.43%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and December 2011 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 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 December 2011 call report.

Summary Balance Sheet										Change
(Unaudited, dollars in thousands)		12/31/2011				12/31/2010				$				%
Total assets		$	154,911			$	146,098			$	8,813			6	%
Gross loans			131,800				120,662				11,138			9	%
Allowance for loan losses			(2,771	)			(2,916	)			145			-5	%
Deposits
Non-interest bearing			35,675				29,900				5,775			19	%
Interest-bearing			102,042				98,562				3,480			4	%
Total deposits			137,717				128,461				9,256			7	%
Shareholders' equity			16,381				15,605				777			5	%
Summary Income Statement
(Unaudited, dollars in thousands		Year ended				Year ended				Change
except per share data)		12/31/2011				12/31/2010				$				%
Interest income		$	7,268			$	7,150			$	118			2	%
Interest expense			753				1,268				(515	)		-41	%
Net interest income			6,515				5,882				633			11	%
Provision for loan losses			233				1,492				(1,259	)		-84	%
Non-interest income			597				444				153			35	%
OREO writedown			300				0				300			100	%
Non-interest expense			6,028				6,130				(102	)		-2	%
Net income (loss)		$	551			$	(1,296	)		$	1,847			143	%
Earnings (loss) per share		$	0.17				($0.39	)
Net interest margin			4.50	%			4.22	%
Summary Income Statement
(Unaudited, dollars in thousands		Quarter ended				Quarter ended				Change
except per share data)		12/31/2011				9/30/2011				$				%
Interest income		$	1,917			$	1,826			$	91			5	%
Interest expense			162				173				(11	)		-7	%
Net interest income			1,756				1,653				103			6	%
Provision for loan losses			0				146				(146	)		-100	%
Non-interest income			126				126				0			0	%
OREO writedown			300				0				300			100	%
Non-interest expense			1,485				1,445				40			3	%
Net income (loss)		$	97			$	188			$	(91	)		-48	%
Earnings (loss) per share		$	0.03			$	0.06
Net interest margin			4.59	%			4.54	%
										Minimum
										required to be
Capital Ratios		12/31/2011				12/31/2010				well-capitalized
Tier 1 leverage ratio			10.11	%			10.26	%			5.00	%
Tier 1 risk-based capital ratio			11.18	%			11.45	%			6.00	%
Total risk-based capital ratio			12.43	%			12.71	%			10.00	%

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