Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2018

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 first quarter ended March 31, 2018:

  • For the three months ended March 31, 2018, Pinnacle reported net income of $613,000, compared to $538,000 for the three months ended March 31, 2017. Pre-tax income for the three months ended March 31, 2018 increased 9.4% from the three months ended March 31, 2017.
  • Net interest income after the provision for loan losses for the three months ended March 31, 2018, was $1,868,000, compared with $1,778,000 in the same period last year.
  • For the three months ended March 31, 2018, basic and diluted earnings per share were each $0.59. For the same period in 2017 basic and diluted earnings per share were each $0.52.
  • For the three months ended March 31, 2018, return on average assets was 1.11%, compared to .99% in the comparable 2017 period. The Bank’s effective income tax rate decline from 23% to 16% as a result of the tax law change.

The Company’s net interest margin was 3.63% for the three months March 31, 2018, compared to 3.49% for the three months ended March 31, 2017.

At March 31, 2018, Pinnacle’s allowance for loan losses as a percent of total loans was 1.59%, compared to 1.68% at December 31, 2017. At March 31, 2018, the allowance for loan losses as a percent of nonperforming loans was 388.19%, compared to 670.42% at December 31, 2017. Nonperforming assets were $456,000 at March 31, 2018, compared to $281,000 at December 31, 2017. The ratio of nonperforming assets to total loans was .45% at March 31, 2018, compared to .29% at December 31, 2017.

Pinnacle was classified as “well capitalized” at March 31, 2018. Total risk-based capital was 19.22% for the subsidiary bank. Tier 1 risk-based capital and Tier 1 leverage capital ratios for the subsidiary bank were 18.13% and 11.94%, respectively. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.11 per share were paid to shareholders during the first quarter of 2018 as well as the first quarter of 2017.

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.

AND SUBSIDIARY

 

UNAUDITED FINANCIAL HIGHLIGHTS

 
Three Months Ended March 31,
2018     2017
Net Income $ 613,000 $ 538,000
Weighted average basic shares outstanding 1,043,505 1,043,505
Weighted average diluted shares outstanding 1,043,505 1,043,505
Dividend per share $ .11 $ .11
Provision for loan losses $ - $ -
Basic and diluted earnings per share $ 0.59 $ 0.52
Performance Ratios: (annualized)
Return on average assets 1.11% .99%
Return on average equity 9.42% 8.90%
Interest rate spread 3.53% 3.41%
Net interest margin 3.63% 3.49%
Operating cost to assets 2.80% 2.74%
 
(Audited)
March 31, 2018 December 31, 2017
Total assets $ 230,176,000 $ 217,836,000
Loans receivable, net $ 99,713,000 $ 94,204,000
Deposits $ 194,875,000 $ 186,327,000
Brokered CD’s included in deposits $ - $ -
Other borrowings $ 6,000,000 $ 2,000,000
Total stockholders’ equity $ 25,397,000 $ 26,013,000
Book value per share $ 24.34 $ 24.93
Total average stockholders' equity to asset ratio 11.58% 11.16%
Asset Quality Ratios:
Nonperforming loans as a percent of total loans .38% .29%
Nonperforming assets as a percent of total loans .45% .29%
Allowance for loan losses as a percent of total loans 1.59% 1.68%
Allowance for loan losses as a percent of nonperforming loans 388.19% 670.42%
     

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

 
(Unaudited) (Audited)
March 31, December 31,
2018 2017

Assets

Cash and cash equivalents $ 1,762,042 $ 1,871,452
Interest bearing deposits in banks 13,047,349 2,266,004
Securities available for sale 96,491,039 100,881,539
Restricted equity securities 976,000 805,500
 
Loans 101,323,503 95,812,552
Less allowance for loan losses   1,610,513   1,608,804
Loans, net   99,712,990   94,203,748
 
Premises and equipment, net 6,337,116 6,236,854
Goodwill 306,488 306,488
Bank owned life insurance 9,303,756 9,220,161
Accrued interest receivable 1,017,136 1,228,374
Other assets   1,222,479   816,288
Total assets $ 230,176,395 $ 217,836,408
 

Liabilities and Stockholders’ Equity

Deposits:
Noninterest-bearing $ 58,159,148 $ 55,154,929
Interest-bearing   136,716,181   131,172,551
Total deposits 194,875,329 186,327,480
 
Other borrowings 6,000,000 1,500,000
Federal funds purchased - 100,000
Subordinated debentures 3,093,000 3,093,000
Accrued interest payable 93,033 79,893
Other liabilities   717,623   722,887
Total liabilities   204,778,985   191,823,260
 
Stockholders’ equity

Common stock, $.01 par value, 2,400,000 shares authorized; 1,872,313 shares issued; 1,043,505 shares outstanding

18,723 18,723
Additional paid-in capital 8,923,223 8,923,223
Treasury stock, at cost (828,808 shares) (11,464,104) (11,464,104)
Retained earnings 28,705,591 28,206,925
Accumulated other comprehensive income (loss), net of tax   (786,023)   328,381
Total stockholders’ equity   25,397,410   26,013,148
 
Total liabilities and stockholders’ equity $ 230,176,395 $ 217,836,408
     

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31, 2018 and 2017

 
2018 2017
Interest income
Loans, including fees $ 1,257,993 $ 1,120,954
Taxable securities 528,877 539,925
Nontaxable securities 197,505 239,277
Other interest   30,062   19,355
Total interest income   2,014,437   1,919,511
 
Interest expense
Deposits 90,748 104,144
Borrowings and repurchase agreements 19,532 6,348
Subordinated debentures   36,500   30,800
Total interest expense   146,780   141,292
 
Net interest income 1,867,657 1,778,219
Provision for loan losses   -   -
Net interest income after provision for loan losses   1,867,657   1,778,219
 
Other income
Fees and service charges on deposit accounts 328,043 301,986
Servicing fee income, net 2,203 3,325
Bank owned life insurance 83,595 83,186
Mortgage fee income 4,999 -
Net gain on sale of securities available for sale   1,689   -
Total other income   420,529   388,497
 
Other expenses
Salaries and employee benefits 889,138 842,172
Occupancy expenses 223,856 221,515
Marketing and professional expenses 41,031 43,730
Other operating expenses   400,394   388,368
Total other expenses   1,554,419   1,495,785
 
Income before income taxes 733,767 670,931
 
Income tax expense   120,315   132,521
 
Net income $ 613,452 $ 538,410
 
Basic and diluted earnings per share $ 0.59 $ 0.52
 
Cash dividends per share $ 0.11 $ 0.11
Weighted-average basic and diluted shares outstanding   1,043,505   1,043,505
                           

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2018 and 2017

 
Accumulated
Additional Other Total
Common Stock Paid-in Treasury Retained Comprehensive Stockholders’
Shares Par Value Capital Stock Earnings Income (Loss) Equity
 

Balance, December 31, 2016

1,872,313 $ 18,723 $ 8,923,223 $ (11,464,104) $ 26,417,216 $ (136,701) $ 23,758,357
Net income - - - - 538,410 - 538,410

Cash dividends declared, $0.11 per share

- - - - (114,786) - (114,786)
Other comprehensive income -   -   -   -   -   501,646   501,646
Balance, March 31, 2017

1,872,313

$ 18,723 $ 8,923,223 $ (11,464,104) $ 26,840,840 $ 364,945 $ 24,683,627
 
Balance, December 31, 2017 1,872,313 $ 18,723 $ 8,923,223 $ (11,464,104) $ 28,206,925 $ 328,381 $ 26,013,148
Net income - - - - 613,452 - 613,452

Cash dividends declared, $0.11 per share

- - - - (114,786) - (114,786)
Other comprehensive loss -   -   -   -   -   (1,114,404)   (1,114,404)
Balance, March 31, 2018 1,872,313 $ 18,723 $ 8,923,223 $ (11,464,104) $ 28,705,591 $ (786,023) $ 25,397,410
     

 PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2018 and 2017

 
2018 2017
OPERATING ACTIVITIES

Net income

$ 613,452 $ 538,410

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 92,926 88,636
Net amortization of securities 107,815 125,311
Gain on sale of securities available for sale (1,689) -
Bank owned life insurance (83,595) (83,186)
Decrease in accrued interest receivable 211,238 166,543
Increase (decrease) in accrued interest payable 13,140 (2,400)
Net other operating activities   (20,043)   (194,997)
Net cash provided by operating activities   933,244   638,317
INVESTING ACTIVITIES
Net (increase) decrease in loans (5,509,242) 17,159
Net increase in interest-bearing deposits in banks (10,781,345) (10,125,410)
Purchase of securities available for sale (2,035,720) -
Proceeds from sales of securities available for sale 501,689 -
Proceeds from maturing or callable securities available for sale 4,312,589 1,723,403
Net purchase of restricted equity securities (170,500) (83,400)
Purchase of premises and equipment   (193,188)   (560,061)
Net cash used in investing activities   (13,875,717)   (8,128,309)
 
FINANCING ACTIVITIES
Net increase in deposits 8,547,849 5,656,948
Net increase in other borrowings 4,500,000 2,000,000
Net decrease in federal funds purchased (100,000) -
Payments of cash dividends   (114,786)   (114,786)
Net cash provided by financing activities   12,833,063   7,542,162
 
Net increase (decrease) in cash and cash equivalents (109,410) 52,170
 
Cash and cash equivalents at beginning of year   1,871,452   1,698,936
 
Cash and cash equivalents at end of year $ 1,762,042 $ 1,751,106
 
SUPPLEMENTAL DISCLOSURE
Cash paid during the year for:
Interest $ 133,640 $ 143,692
Taxes $ - $ -
OTHER NONCASH TRANSACTIONS
Internally financed sales of other real estate owned $ - $ -

Contacts

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

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