GILROY, Calif.--(EON: Enhanced Online News)--PBNK.OB - Pinnacle Bank, headquartered in Gilroy, California, announced today net income for the third quarter of 2013 of $5,975,000 compared to $104,000 in the comparable quarter of 2012. The third quarter of 2013 included $5,833,000 related to the reversal of the valuation allowance for deferred tax assets.
“The 50% year-over-year growth in non-interest bearing deposits highlights the local core business banking relationships we have added in the last year”
As of September 30, 2013, total assets were $188.6 million, a 16% increase from the $162.9 million at September 30, 2012.
Loans were $141.3 million at September 30, 2013, an increase of $8.5 million (6%) from the September 30, 2012, balance of $132.7 million.
Non-interest bearing deposits at September 30, 2013, increased 50% to $54.9 million from $36.6 million at September 30, 2012. Total deposits at September 30, 2013, were $164.8 million compared to $140.4 million at September 30, 2012, a 17% increase.
During Q3 2013, Pinnacle Bank recovered a loan charged off in Q4 2012 resulting in $1.4 million returned to the allowance for loan losses as well as $302,000 of recovered interest income and $71,000 in expenses. Noninterest expenses in Q3 2013 included a $510,000 reduction in carrying value on the Bank’s only parcel of other real estate owned. Operating income before income taxes for the third quarter of 2013 after removing the effects of the loan recovery and other real estate owned was $279,000.
“Our third quarter results demonstrate the success achieved since the financial downturn began a few years ago by our team of directors, advisors, management and employees. Local market conditions continue to show measured and uneven economic improvement. We believe our markets continue to bear opportunities for organic growth with high quality loan demand and core deposits,” stated Susan K. Black, President and CEO. “The 50% year-over-year growth in non-interest bearing deposits highlights the local core business banking relationships we have added in the last year,” added Ms. Black. “Our new Salinas location which opened in the second quarter enhances our visibility and reinforces our commitment to Monterey County. While the environment for community banks remains challenging, we are building a solid franchise and remain optimistic about future opportunities.”
The bank’s capital position remains above regulatory guidelines for well capitalized banks. At September 30, 2013, the Bank had a total risk based capital ratio of 11.71%. Book value per share at September 30, 2013 was $6.92.
For more information please go to www.pinnaclebankonline.com click on Investor Relations and September 2013 call report.
About Pinnacle Bank
Pinnacle Bank is a full-service business bank dedicated to providing quality depository and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for small to medium-sized businesses, offering a variety of products and services that combine the best of personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy and Salinas. For more information please go to www.pinnaclebankonline.com click on Investor Relations and September 2013 call report.
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
|Summary Balance Sheet||Year over year change|
|(Unaudited, dollars in thousands)||9/30/2013||6/30/2013||9/30/2012||$||%|
|Allowance for loan losses||$||(3,419||)||$||(2,873||)||$||(2,954||)||$||(465||)||16||%|
|Summary Income Statement|
|(Unaudited, dollars in thousands||Quarter ended||Quarter ended||Quarter ended|
|except per share data)||9/30/2013||6/30/2013||9/30/2012|
|Net interest income||2,070||1,715||1,666|
|Provision for loan losses||0||79||188|
|Income tax expense||(5,833||)||0||0|
|Net income (loss)||$||5,975||$||145||$||104|
|Earnings (loss) per share||$||1.81||$||0.04||$||0.03|
|Net interest margin||4.95||%||4.36||%||4.44||%|
|Book value per share||$||6.92||$||5.09||$||5.20|
|required to be|
|Tier 1 leverage ratio||10.00||%||9.87||%||10.53||%||5.00||%|
|Tier 1 risk-based capital ratio||10.45||%||10.39||%||11.15||%||6.00||%|
|Total risk-based capital ratio||11.71||%||11.65||%||12.41||%||10.00||%|
|Nonperforming assets to total assets||1.54||%||1.98||%||2.88||%|
|Allowance for loan losses to nonperforming loans||219||%||173||%||104||%|