Pinnacle Bancshares Announces Results for Fourth Quarter and Year Ended December 31, 2016

JASPER, Ala.--()--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, 2016:

  • For the three months ended December 31, 2016, Pinnacle reported net income of $512,000, compared to $489,000 for the three months ended December 31, 2015.
  • Net interest income before the provision for loan losses for the three months ended December 31, 2016 was $1,791,000, compared with $1,827,000 in the same period last year.
  • For the year ended December 31, 2016, net income was $2,284,000, compared with net income of $2,221,000 in the prior year.
  • Net interest income before the provision for loan losses for the year ended December 31, 2016, was $7,060,000, compared with $7,251,000 in the prior year.
  • For the three months ended December 31, 2016, basic and diluted earnings were each $0.45 per share. For the same period in 2015, basic and diluted earnings were each $0.42 per share.
  • Basic and diluted earnings were each $1.99 per share for the year ended December 31, 2016. For 2015, basic and diluted earnings were each $1.88 per share.

The Company’s net interest margin was 3.54% and 3.46% for the three months and year ended December 31, 2016, respectively, compared to 3.51% and 3.45% for the three months and year ended December 31, 2015, respectively.

At December 31, 2016, Pinnacle’s allowance for loan losses as a percent of total loans was 1.77%, compared to 1.81% at December 31, 2015.

At December 31, 2016, the allowance for loan losses as a percent of nonperforming loans was 471.72%, compared to 761.06% at December 31, 2015. Net recoveries were $35,000 in 2016, compared to net charge-offs of $48,000 in the prior year. Nonperforming assets were $344,000 at December 31, 2016, compared to $276,000 at December 31, 2015. The ratio of nonperforming assets to total loans was .38% at December 31, 2016, compared to .32% at December 31, 2015.

Pinnacle was classified as “well capitalized” at the end of 2016. At December 31, 2016, total risk-based capital was 19.91% for the subsidiary bank. Tier 1 risk-based capital and Tier 1 leverage capital ratios for the subsidiary bank were 17.70% and 11.22%, respectively. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.11 and $.44 per share were paid to shareholders during the three months and year ended for December 31, 2016, and 2015.

Despite the Company’s good financial performance during the last several years, Mr. Nolen cautioned investors that any negative changes to economic conditions could have an adverse effect on Pinnacle’s borrowers and their customers, which could adversely affect Pinnacle’s financial condition and results of operations.

Deterioration in local economic conditions in Pinnacle’s markets could drive losses beyond those which are provided for in the allowance for loan losses and result in a number of adverse consequences, including increases in loan delinquencies; increases in nonperforming assets; decreases in demand for Pinnacle’s products and services, which could affect Pinnacle’s liquidity position; and decreases in the value of the collateral securing Pinnacle’s loans, which could reduce customers’ borrowing power.

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 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,
2016     2015
Net Income $ 512,000 $ 489,000
Weighted average basic shares outstanding 1,128,583 1,175,925
Weighted average diluted shares outstanding 1,128,583 1,175,925
Dividend per share $ 0.11 $ 0.11
Provision for loan losses $ - $ 55,000
Basic earnings per share $ 0.45 $ .0.42
Diluted earnings per share $ 0.45 $ 0.42
Performance Ratios: (annualized)
Return on average assets 0.93 % 0.86 %
Return on average equity 8.04 % 7.81 %
Interest rate spread 3.41 % 3.40 %
Net interest margin 3.54 % 3.51 %
Operating cost to assets 2.91 % 2.80 %

 

 
For the Year Ended At December 31,
2016 2015
Net Income $ 2,284,000 $ 2,221,000
Weighted average basic shares outstanding 1,148,326 1,179,080
Weighted average diluted shares outstanding 1,148,326 1,179,080
Dividend per share $ 0.44 $ 0.44
Provision for loan losses $ - $ 55,000
Basic earnings per share $ 1.99 $ 1.88
Diluted earnings per share $ 1.99 $ 1.88
Performance Ratios:
Return on average assets 1.02 % 0.97 %
Return on average equity 8.95 % 9.08 %
Interest rate spread 3.34 % 3.35 %
Net interest margin 3.46 % 3.45 %
Operating cost to assets 2.72 % 2.67 %
 
 
At December 31,
2016 2015
Total assets $ 216,561,000 $ 219,509,000
Loans receivable, net $ 89,651,000 $ 85,960,000
Deposits $ 189,525,000 $ 184,917,000
Total stockholders' equity $ 23,758,000 $ 25,838,000
Weighted average book value per share $ 20.69 $ 21.91
Stockholders' average equity to asset ratio 11.44 % 10.70 %
Asset Quality Ratios:
Nonperforming loans as a percent of total loans .38 % .24 %
Nonperforming assets as a percent of total Loans .38 % .32 %
Allowance for loan losses as a percent of total loans 1.77 % 1.81 %

Allowance for loan losses as a percent of nonperforming loans

471.72 % 761.06 %
 
 
 
 

Contacts

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

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