Business & Finance
Business and Finance
Business and Finance
Fri, January 28, 2011
Thu, January 27, 2011 
GILROY, Calif.--([ BUSINESS WIRE ])--Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its second profitable quarter. For the three months ended December 31, 2010, the Bank reported net income of $92,000 compared to a loss of $495,000 in the comparable quarter of 2009. Net loss for the year ended December 31, 2010, was $1,296,000 as compared to a loss of $5,421,000 for the year ended December 31, 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 December 31, 2010, total assets were $146.1 million, a 1% increase from the $144.6 million at December 31, 2009.
Loans were $120.7 million at December 31, 2010, an increase of $3.7 million from the December 31, 2009, balance of $117.0 million, a 3% increase. The allowance for loan losses at December 31, 2010, was $2.6 million or 2.2% of loans.
Deposits at December 31, 2010, grew to $128.5 million, a 1% increase over $127.4 million at December 31, 2009. Year end 2010 non-interest bearing deposits increased 50% year over year.
aWe have achieved profitability in consecutive quarters which demonstrates the substantial progress we have made since the onset of the disruptions in the financial markets in 2008. Continued profitability is a result of our ongoing focus on cost control and improvements in our core deposits and asset quality. The significant increase in non-interest bearing deposits is a direct 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, aWe are pleased to have achieved profitability during these challenging economic times and without government stimulus dollars. Now more than ever, clients value relationships with community bankers and are choosing the service and stability of our brand of bankinga. 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
The banka™s capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2010, the Bank had a total risk based capital ratio of 12.71%.
For more information please go to [ www.pinnaclebankonline.com ] click on Investor Relations and December 2010 call report.
Summary Balance Sheet | |||||||||||
| (Unaudited, dollars in thousands) | 12/31/2010 | 12/31/2009 | % | ||||||||
| Total assets | $ | 146,098 | $ | 144,587 | 1 | % | |||||
| Gross loans | 120,352 | 116,962 | 3 | % | |||||||
| Allowance for loan losses | (2,605 | ) | (2,896 | ) | -10 | % | |||||
| Deposits | |||||||||||
| Non-interest bearing | 29,900 | 19,952 | 50 | % | |||||||
| Interest-bearing | 98,561 | 107,460 | -8 | % | |||||||
| Total deposits | 128,461 | 127,412 | 1 | % | |||||||
| Shareholders' equity | 15,604 | 16,655 | -6 | % | |||||||
| Summary Income Statement | ||||||||
| (Unaudited, dollars in thousands | Year ended | Year ended | ||||||
| except per share data) | 12/31/2010 | 12/31/2009 | ||||||
| Interest income | $ | 7,150 | $ | 7,178 | ||||
| Interest expense | 1,268 | 2,208 | ||||||
| Net interest income | 5,882 | 4,970 | ||||||
| Provision for loan losses | 1,492 | 4,621 | ||||||
| Non-interest income | 444 | 137 | ||||||
| Non-interest expense | 6,130 | 5,908 | ||||||
| Net income (loss) | ($1,296 | ) | ($5,422 | ) | ||||
| Earnings (loss) per share | ($0.21 | ) | ($1.97 | ) | ||||
| Net interest margin | 4.22 | % | 3.94 | % | ||||
| Summary Income Statement | ||||||||||||||||||||
| (Unaudited, dollars in thousands | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
| except per share data) | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | |||||||||||||||
| Interest income | $ | 1,789 | $ | 1,784 | $ | 1,797 | $ | 1,780 | $ | 1,802 | ||||||||||
| Interest expense | 279 | 298 | 314 | 377 | 444 | |||||||||||||||
| Net interest income | 1,510 | 1,486 | 1,483 | 1,403 | 1,358 | |||||||||||||||
| Provision for loan losses | 168 | 87 | 670 | 567 | 389 | |||||||||||||||
| Non-interest income | 175 | 175 | 49 | 50 | 19 | |||||||||||||||
| Non-interest expense | 1,425 | 1,516 | 1,613 | 1,580 | 1,483 | |||||||||||||||
| Net income (loss) | $ | 92 | $ | 58 | ($751 | ) | ($694 | ) | ($495 | ) | ||||||||||
| Earnings (loss) per share | $ | 0.03 | $ | 0.02 | ($0.23 | ) | ($0.21 | ) | ($0.18 | ) | ||||||||||
| Net interest margin | 4.17 | % | 4.24 | % | 4.90 | % | 4.56 | % | 3.86 | % | ||||||||||
| Capital Ratios | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | Minimum | ||||||
| Tier 1 leverage ratio | 10.26% | 10.52% | 10.61% | 11.06% | 11.70% | 5.00% | ||||||
| Tier 1 risk-based capital ratio | 11.48% | 11.51% | 11.41% | 11.88% | 12.10% | 6.00% | ||||||
| Total risk-based capital ratio | 12.71% | 12.78% | 12.68% | 13.14% | 13.40% | 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 December 2010 call report.
