Business & Finance
Business and Finance
Business and Finance
Fri, October 29, 2010 
GILROY, Calif.--([ BUSINESS WIRE ])--Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its first profitable quarter. For the three months ended September 30, 2010, the Bank reported net income of $58,000 compared to a loss of $219,000 in the comparable quarter of 2009. Year-to-date net loss through September 30, 2010, was $1,388,000 as compared to a loss of $4,928,000 for the nine months ended September 30, 2009.
"We continue to support our communities by actively lending to local businesses, individuals and nonprofit organizations. The ongoing support of our organizers, shareholders and clients is a key factor in our success."
As of September 30, 2010, total assets increased to $152.5 million, a 5% increase over the $144.6 million at December 31, 2009. The September 30, 2010, total assets represent a 9% increase over the $140.3 million in total assets at September 30, 2009.
Loans were $118.8 million at September 30, 2010, an increase of $1.8 million from the December 31, 2009, balance of $117.0 million, a 2% increase in the first nine months of 2010. The September 30, 2010, loans decreased $2.9 million or 2.0% compared to $121.3 million one year earlier.
Deposits at September 30, 2010, grew to $134.2 million, a 5% increase over $127.4 million at December 31, 2009. September 30, 2010, deposits were $9.7 million more than the $124.5 million at September 30, 2009, an 8% increase.
aThe profitable quarter demonstrates the substantial progress we have made since the onset of the disruptions in the financial markets in 2008. Our improvements in core deposits and asset quality are the result of our strategic emphasis on relationship banking,a said Susan K. Black, President and CEO. Ms. Black further stated, aour quality client relationships allow us to maintain net interest margin and asset quality with safe, controlled growth and a strong balance sheet.a
Ms. Black added, aAchieving profitability is always a critical milestone for a start-up and we are especially pleased we were able to reach this objective through these challenging economic times. Now more than ever, clients value relationships with community bankers and are choosing our brand of banking over other offerings in the market.a Ms. Black further stated, aWe continue to support our communities by actively lending to local businesses, individuals and nonprofit organizations. The ongoing support of our organizers, shareholders and clients is a key factor in our success.a
During the third quarter of 2010, the Bank had $88,000 in net loan chargeoffs compared to $177,000 in the third quarter of 2009. The allowance for loan losses at September 30, 2010, was $3.6 million or 3.0% of loans.
The banka™s capital position remains above regulatory guidelines for well capitalized banks. At September 30, 2010, the Bank had a total risk based capital ratio of 12.78%.
For more information please go to [ www.pinnaclebankonline.com ] click on Investor Relations and September 2010 call report.
| Summary Balance Sheet | |||||||||||||||
| (Unaudited, dollars in thousands) | 9/30/2010 | 12/31/2009 | % | 9/30/2009 | % | ||||||||||
| Total assets | $152,463 | $144,587 | 5% | $140,307 | 9% | ||||||||||
| Gross loans | 118,752 | 116,962 | 2% | 121,293 | -2% | ||||||||||
| Allowance for loan losses | (3,588) | (2,896) | 24% | (2,904) | 24% | ||||||||||
| Deposits | |||||||||||||||
| Non-interest bearing | 29,388 | 19,952 | 47% | 14,109 | 108% | ||||||||||
| Interest-bearing | 104,822 | 107,460 | -2% | 110,407 | -5% | ||||||||||
| Total deposits | 134,210 | 127,412 | 5% | 124,516 | 8% | ||||||||||
| Shareholders' equity | 15,533 | 16,655 | -7% | 15,233 | 2% | ||||||||||
| Summary Income Statement | |||||||||||||||
(Unaudited, dollars in thousands | Quarter | Quarter | Quarter | Quarter | Year ended | ||||||||||
| Interest income | $1,784 | $1,797 | $1,780 | $1,802 | $7,178 | ||||||||||
| Interest expense | 298 | 314 | 377 | 444 | 2,208 | ||||||||||
| Net interest income | 1,486 | 1,483 | 1,403 | 1,358 | 4,970 | ||||||||||
| Provision for loan losses | 87 | 670 | 567 | 389 | 4,621 | ||||||||||
| Non-interest income | 175 | 49 | 50 | 19 | 137 | ||||||||||
| Non-interest expense | 1,516 | 1,613 | 1,580 | 1,483 | 5,908 | ||||||||||
| Net income (loss) | $58 | ($751) | ($694) | ($495) | ($5,422) | ||||||||||
| Earnings (loss) per share | $0.02 | ($0.23) | ($0.21) | ($0.18) | ($1.97) | ||||||||||
| Net interest margin | 4.24% | 4.76% | 4.11% | 3.95% | 3.88% | ||||||||||
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | Minimum | |||||||||||
| Tier 1 leverage ratio | 10.52% | 10.61% | 11.06% | 11.70% | 5.00% | ||||||||||
| Tier 1 risk-based capital ratio | 11.51% | 11.41% | 11.88% | 12.10% | 6.00% | ||||||||||
| Total risk-based capital ratio | 12.78% | 12.68% | 13.14% | 13.40% | 10.00% | ||||||||||
(dollars in thousands) | 9/30/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||
Nonperforming assets | $9,048 | $5,931 | $6,990 | ||||||||||||
Nonperforming assets to total assets | 5.93% | 4.10% | 4.98% | ||||||||||||
Allowance for loan losses to total loans | 3.02% | 2.48% | 2.39% | ||||||||||||
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.
