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Pinnacle Bancshares Announces Results for Fourth Quarter and Year Ended December 31, 2019

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle’s results of operations for the fourth quarter and year ended December 31, 2019:

  • For the three months ended December 31, 2019, Pinnacle reported net income of $686,000, compared to $689,000 for the three months ended December 31, 2018.
  • Net interest income before the provision for loan losses for the three months ended December 31, 2019 was $2,039,000, compared with $1,965,000 in the same period last year.
  • For the year ended December 31, 2019, net income was $2,889,000, compared with net income of $2,596,000 in the prior year.
  • Net interest income before the provision for loan losses for the year ended December 31, 2019, was $8,114,000, compared with $7,716,000 in the prior year.
  • For the three months ended December 31, 2019, basic and diluted earnings were each $0.66 per share. For the same period in 2018, basic and diluted earnings were each $0.66 per share.
  • Basic and diluted earnings were each $2.79 per share for the year ended December 31, 2019. For 2018, basic and diluted earnings were each $2.49 per share.

The Company’s net interest margin was 3.87% for both the three months and year ended December 31, 2019, respectively, compared to 3.85 and 3.77%, respectively for the three months and year ended December 31, 2018, respectively.

At December 31, 2019, Pinnacle’s allowance for loan losses as a percent of total loans was 2.07%, compared to 1.53% at December 31, 2018. The increase in the allowance was mainly due to the recording of $609,000 in provision for loan losses during the fourth quarter 2019. This provision was recorded after receiving a close-out payment of $599,000 resulting from the termination of a state-operated loan guarantee program during the fourth quarter of 2019.

At December 31, 2019, the allowance for loan losses as a percent of nonperforming loans was 1362.66%, compared to 596.28% at December 31, 2018. Net charge-offs were $59,500 in 2019, compared to net charge-offs of $4,800 in the prior year. Nonperforming assets were $158,000 at December 31, 2019, compared to $269,000 at December 31, 2018. The ratio of nonperforming assets to total loans was .15% at December 31, 2019, compared to .26% at December 31, 2018.

Pinnacle was classified as "well capitalized" at the end of 2019. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.19 and $.76 per share were paid to shareholders during the three months and year ended for December 31, 2019, as compared to $.11 and $.44 per share during the three months and year ended December 31, 2018.

Forward-Looking Statements

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Pinnacle undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Pinnacle’s expectations. Certain tabular presentations may not reconcile because of rounding.

Pinnacle Bancshares, Inc.’s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama.

 
PINNACLE BANCSHARES, INC

Unaudited Financial Highlights

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

 

2019

 

 

2018

Net Income

 

 

$

686,000

 

$

689,000

Weighted average basic shares outstanding

 

 

1,032,905

 

 

1,043,505

Weighted average diluted shares outstanding

 

 

1,032,905

 

 

1,043,505

Dividend per share

 

 

$

0.19

 

$

0.11

Provision for loan losses

 

$

609,000

 

$

-

Basic earnings per share

$

0.66

$

  0.66

Diluted earnings per share

 

$

0.66

 

$

0.66

Performance Ratios: (annualized)

 

 

 

 

Return on average assets

 

 

1.18%

 

 

1.25%

Return on average equity

 

 

9.25%

 

 

9.97%

Interest rate spread

 

 

 

3.61%

 

 

3.67%

Net interest margin

 

 

 

3.87%

 

 

3.85%

Operating cost to assets

 

 

2.89%

 

 

2.85%

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended At December 31,

 

 

 

 

 

2019

 

2018

Net Income

 

 

$

2,889,000

 

$

2,596,000

Weighted average basic shares outstanding

 

 

1,035,143

 

 

1,043,505

Weighted average diluted shares outstanding

 

 

1,035,143

 

 

1,043,505

Dividend per share

 

 

$

0.76

 

$

0.44

Provision for loan losses

 

$

609,000

 

$

-

Basic earnings per share

 

$

2.79

 

$

2.49

Diluted earnings per share

 

$

2.79

 

$

2.49

Performance Ratios:

 

 

 

 

 

Return on average assets

 

 

1.30%

 

 

1.17%

Return on average equity

 

 

10.03%

 

 

9.61%

Interest rate spread

 

 

 

3.64%

 

 

3.62%

Net interest margin

 

 

 

3.87%

 

 

3.77%

Operating cost to assets

 

 

2.90%

 

 

2.85%

 

 

 

 

 

 

 

 

 

 

 

At December 31,

 

 

 

 

 

2019

 

2018

Total assets

 

 

$

230,435,000

 

$

220,981,000

Loans receivable, net

 

 

$

101,948,000

 

$

103,282,000

Deposits

 

 

 

$

194,359,000

 

$

185,327,000

Brokered CD’s included in Deposits

 

$

17,902,000

 

$

2,999,000

Other borrowings

 

$

-

 

$

4,500,000

Total stockholders' equity

 

$

30,788,000

 

$

27,207,000

Weighted average book value per share

 

$

29.74

 

$

26.07

Stockholders' average equity to asset ratio

 

 

12.98%

 

 

12.17%

Asset Quality Ratios:

 

 

 

 

 

Nonperforming loans as a percent of total loans

 

 

.15%

 

 

.26%

Nonperforming assets as a percent of total Loans

 

 

.15%

 

 

.26%

Allowance for loan losses as a percent of total loans

 

 

2.07%

 

 

1.53%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200108005900/en/

Contacts

Joe B. Adams, III
Chief Financial Officer
(205) 221-8866