Pinnacle Bank Announces 2017 Results

Pinnacle Bank Announces 2017 Results

PR Newswire (paid press release):

GILROY, Calif., Jan. 25, 2018 /PRNewswire/ — Pinnacle Bank (OTCQB: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the year ended December 31, 2017 of $2,957,000, an increase of 20% over the same period in 2016 net income of $2,461,000, despite a $518,000 revaluation of deferred tax assets in the fourth quarter due to the recently passed tax reform legislation.

As of December 31, 2017, total assets were $342.5 million, a 16% increase from the $295.6 million at December 31, 2016.

Loans were $273.1 million at December 31, 2017, an increase of $31.7 million (13%) from the December 31, 2016 balance of $241.4 million.  The allowance for loan losses at December 31, 2017 was $3.8 million or 1.40% of loans compared to $3.2 million or 1.32% of loans at December 31, 2016. 

Non-interest bearing deposits at December 31, 2017, increased 30% to $159.8 million from $122.7 million at December 31, 2016. Total deposits at December 31, 2017, were $304.6 million compared to $263.4 million at December 31, 2016, a 16% increase.

Credit quality remained strong with nonperforming assets totaling $284,000 (0.08% of assets) at December 31, 2017 compared to $83,000 (0.03% of assets) a year earlier. 

“The vibrant economy in our markets was the foundation for Pinnacle Bank’s outstanding year in 2017. Our loans and deposits grew 13% and 16%, respectively over 2016 reflecting the success of our relationship banking approach in attracting and retaining clients. These client relationships helped drive our net interest income to a new high.  Our experienced relationship managers and specialized lenders capitalized on the economy to originate a record amount of SBA 7(a) loans in 2017 that made us a top SBA lender in California and fueled the large increase in gains on the sale of SBA 7(a) loan guarantees. Our credit quality remained solid as loans grew and competition increased during the year,” stated Jeffrey Payne, President and CEO. “We appreciate the continued efforts and contributions of our outstanding bankers, our committed directors and advisors and our many loyal clients.”

The Bank’s capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2017, the Bank had a total capital ratio of 11.99%.  Book value per share at December 31, 2017 was $8.65.  Net interest margin in the fourth quarter of 2017 was 4.59%.

Pinnacle Bank is rated by Bauer Financial as Five-Star “Superior” for strong financial performance, the top rating given by the independent bank rating firm.  The Findley Reports named Pinnacle Bank a 2017 Super Premier performing bank based upon 2016 performance.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and December 2017 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 businesses and nonprofit organizations, 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 December 2017 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.

Media Contact:
Pinnacle Bank
Jeffrey D. Payne, President & CEO
408-762-7146

Summary Balance Sheet

Year over year change

(Unaudited, dollars in thousands)

12/31/2017

9/30/2017

12/31/2016

$

%

Total assets

$    342,471

$    345,217

$    295,558

$      46,913

16%

Gross loans

$    273,114

$    271,048

$    241,443

$      31,671

13%

Allowance for loan losses

$      (3,815)

$      (3,647)

$      (3,186)

$         (629)

20%

Non-interest bearing deposits

$    159,796

$    155,532

$    122,718

$      37,078

30%

Interest-bearing deposits

$    144,853

$    151,599

$    140,637

$        4,216

3%

Total deposits

$    304,649

$    307,131

$    263,355

$      41,294

16%

Shareholders’ equity

$      34,235

$      33,673

$      28,222

$        6,013

21%

Summary Income Statement

(Unaudited, dollars in thousands

Year ended

Year ended

Change

Change

except per share data)

12/31/2017

12/31/2016

$

%

Interest income

$           13,988

$           10,699

$      3,289

30.7%

Interest expense

296

280

16

5.7%

Net interest income

13,692

10,419

3,273

31.4%

Provision for loan losses

537

(500)

1,037

-207.4%

Non-interest income

3,868

3,374

494

14.6%

Non-interest expense

11,111

10,125

986

9.7%

Income tax expense

2,955

1,707

1,248

73.1%

Net income (loss)

$             2,957

$             2,461

$         496

20.2%

Basic Earnings (loss) per share

$0.75

$0.71

$0.04

5.7%

Diluted Earnings (loss) per share

$0.73

$0.68

$0.05

7.4%

Book value per share

$8.65

$8.02

$0.63

7.9%

Shares outstanding at period end

3,959,883

3,518,863

441,020

12.5%

Minimum

required to be

Capital Ratios

12/31/2017

9/30/2017

12/31/2016

well-capitalized

Tier 1 leverage ratio

9.50%

10.28%

9.03%

5.00%

Common Equity Tier 1 capital ratio

10.79%

10.62%

9.63%

6.50%

Tier 1 capital ratio

10.79%

10.62%

9.63%

8.00%

Total capital ratio

11.99%

11.78%

10.79%

10.00%

Nonperforming assets

12/31/2017

9/30/2017

12/31/2016

Nonperforming assets

$              284

$              156

$                83

Nonperforming assets to total assets

0.08%

0.05%

0.03%

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SOURCE Pinnacle Bank

Related Links

http://www.pinnaclebankonline.com

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