Pinnacle Bank Announces 2012 Results

Business Wirevia The Motley Fool
Updated

Pinnacle Bank Announces 2012 Results

GILROY, Calif.--(BUSINESS WIRE)-- PBNK.OB - Pinnacle Bank, headquartered in Gilroy, California, announced today net income for 2012 was $190,000 compared to $551,000 in 2011. The 2012 provision for loan losses was $1,438,000, an increase of $1,205,000 from $233,000 in 2011. Pre-provision, pre-tax earnings of $1,655,000 for 2012 compared to $784,000 in 2011.

As of December 31, 2012, total assets were $170.2 million, a 10% increase from the $154.9 million at December 31, 2011.


Loans were $138.0 million at December 31, 2012, a 5% increase or $6.2 million from the December 31, 2011, balance of $131.8 million. The allowance for loan losses at December 31, 2012, was $3.6 million or 2.6% of loans compared to $2.8 million or 2.1% at December 31, 2011.

Non-interest bearing deposits at December 31, 2012, increased 37% to $49.0 million from $35.7 million at December 31, 2011. Total deposits at December 31, 2012, were $152.5 million compared to $137.7 million at December 31, 2011, an 11% increase.

"We had a very strong year in 2012 with double digit asset growth and revenue at an all time high. We are also proactively and aggressively addressing a small number of loans made early in the Bank's history which were adversely impacted by the recession. Reducing the carrying values of these loans led to the increase in the provision for loan losses," stated Susan K. Black, President and CEO. "Despite the impact on earnings, we believe these writedowns strengthen our balance sheet and provide a solid footing for 2013. In addition, substantial recoveries are possible."

"We are pleased by growth in loans and deposits during 2012 as we execute our strategy of increasing franchise value by careful controlled growth. We are particularly pleased with the growth in core business banking relationships as reflected by the 37% growth in non-interest bearing deposits," added Ms. Black. "Despite margin compression and competitive pressures, 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 December 31, 2012, the Bank had a total risk based capital ratio of 11.74%.

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 towww.pinnaclebankonline.comclick on Investor Relations and December 2012 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

(Unaudited, dollars in thousands)

12/31/2012

12/31/2011

$ Change

% Change

Total assets

$

170,195

$

154,911

$

15,284

10

%

Gross loans

138,018

131,800

6,218

5

%

Allowance for loan losses

(3,611

)

(2,771

)

(840

)

30

%

Deposits

Non-interest bearing

48,961

35,675

13,286

37

%

Interest-bearing

103,519

102,042

1,477

1

%

Total deposits

152,480

137,717

14,763

11

%

Shareholders' equity

16,627

16,382

245

1

%

Summary Income Statement

(Unaudited, dollars in thousands

Year ended

Year ended

except per share data)

12/31/2012

12/31/2011

$ Change

% Change

Interest income

$

7,356

$

7,268

$

88

1.2

%

Interest expense

497

753

(256

)

-34.0

%

Net interest income

6,859

6,515

344

5.3

%

Provision for loan losses

1,438

233

1,205

517.2

%

Non-interest income

824

597

227

38.0

%

Non-interest expense

6,028

6,328

(300

)

-4.7

%

Income tax expense

27

0

27

Net income (loss)

$

190

$

551

$

(361

)

-65.5

%

Basic earnings per share

$

0.06

$

0.20

Diluted earnings per share

$

0.04

$

0.20

Income before provision and taxes

$

1,655

$

784

$

871

111.1

%

Net interest margin

4.54

%

4.50

%

Minimum

required to be

Capital Ratios

12/31/2012

12/31/2011

well-capitalized

Tier 1 leverage ratio

9.80%

10.11%

5.00%

Tier 1 risk-based capital ratio

10.47%

11.18%

6.00%

Total risk-based capital ratio

11.74%

12.43%

10.00%



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

KEYWORDS: United States North America California

INDUSTRY KEYWORDS:

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