PBNK Pinnacle Bank (QB)

Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its third consecutive profitable quarter. For the three months ended March 31, 2011, the Bank reported net income of $118,000 compared to a loss of $694,000 in the comparable quarter of 2010.

As of March 31, 2011, total assets were $151.3 million, a 4% increase from the $146.1 million at December 31, 2010.

Loans were $112.8 million at March 31, 2011, a decrease of $7.6 million from the December 31, 2010, balance of $120.4 million, a 6% decrease. The allowance for loan losses at March 31, 2011, was $2.6 million or 2.3% of loans. Nonaccrual loans at March 31, 2011 were $1.2 million, a reduction of $5.1 million from $6.3 million at December 31, 2010.

Deposits at March 31, 2011, were $134.8 million compared to $128.5 million at year end, a 5% increase. March 2011 non-interest bearing deposits increased 9% over December 31, 2010 from $29.9 million to $32.6 million.

“We have achieved profitability in three 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,” said Susan K. Black, President and CEO. Ms. Black further stated, “Our quality client relationships allow us to maintain net interest margin and asset quality with safe, controlled growth and a strong balance sheet.”

Ms. Black added, “We are pleased to have significantly improved metrics from the previous year, despite the slow recovery of the economy. We have built a solid foundation and are actively focusing on expanding our franchise by lending to local businesses, individuals and nonprofit organizations.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At March 31, 2011, the Bank had a total risk based capital ratio of 13.20%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 2011 call report.

Summary Balance Sheet     Change (Unaudited, dollars in thousands)     3/31/2011         12/31/2010         $       %   Total assets 151,297     $ 146,098 $ 5,198     4 % Gross loans 112,776 120,352 ($7,576 ) -6 % Allowance for loan losses (2,580 ) (2,605 ) $ 25 -1 % Deposits

 

Non-interest bearing 32,626 29,900 $ 2,726 9 % Interest-bearing 102,184         98,561   $ 3,623 4 % Total deposits 134,810 128,461 $ 6,349 5 % Shareholders' equity 15,733 15,604 $ 129 1 %   Summary Income Statement

(Unaudited, dollars in thousands except per share data)

    Quarter ended     Quarter ended     Change

 

  3/31/2011         12/31/2010         $       %   Interest income $ 1,774 $ 1,789 ($15 )     -1 % Interest expense   226         279         (53 ) -19 % Net interest income 1,548 1,510 38 3 % Provision for loan losses 22 168 -146 -87 % Non-interest income 180 175 5 3 % Non-interest expense   1,588         1,425         163   11 % Net income (loss) $ 118       $ 92       $ 26   28 %   Earnings (loss) per share $ 0.04 $ 0.03 Net interest margin 4.46 % 4.17 %               Minimum required to be Capital Ratios 3/31/2011     12/31/2010     well-capitalized Tier 1 leverage ratio 10.47% 10.26% 5.00% Tier 1 risk-based capital ratio 11.94% 11.48% 6.00% Total risk-based capital ratio 13.20% 12.71% 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.