PBNK Pinnacle Bank (QB)

Pinnacle Bank (OTCBB:PBNK), headquartered in Gilroy, California, announced today its seventh consecutive profitable quarter. For the three months ended March 31, 2012, the Bank reported net income of $297,000 compared to $118,000 in the comparable quarter of 2011.

As of March 31, 2012, total assets were $163.1 million, an 8% increase from the $151.3 million at March 31, 2011.

Loans were $126.3 million at March 31, 2012, an increase of $13.5 million (12%) from the March 31, 2011, balance of $112.8 million. The allowance for loan losses at March 31, 2012, was $2.8 million or 2.2% of loans. Nonaccrual loans at March 31, 2012, were $1.5 million, a reduction of $0.3 million from $1.8 million at December 31, 2011.

Deposits at March 31, 2012, were $145.3 million compared to $134.8 million at March 31, 2011, an 8% increase. March 31, 2012, non-interest bearing deposits increased 7% over March 31, 2011, from $32.6 million to $36.2 million.

“Our seven straight quarters of profitability reflect the progress we have made in building a strong balance sheet,” said Susan K. Black, President and CEO. Ms. Black further stated, “While the economy continues to work through a number of uncertainties, our team of professional bankers continues to add core relationships with businesses and professionals in Santa Clara, Monterey and San Benito counties. We continue to build our franchise through careful, controlled growth and remain optimistic about future opportunities.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At March 31, 2012, the Bank had a total risk based capital ratio of 12.79%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 2012 call report.

Summary Balance Sheet    

3/31/2012

   

12/31/2011

   

3/31/2011

   

12 Month% Change

(Unaudited, dollars in thousands) Total assets $ 163,135 $ 154,911 $ 151,297 8 % Gross loans $ 126,276 $ 131,800 $ 112,776 12 % Allowance for loan losses $ (2,782 ) $ (2,771 ) $ (2,580 ) 8 % Deposits Non-interest bearing $ 36,172 $ 35,675 $ 32,626 11 % Interest-bearing $ 109,107 $ 102,042 $ 102,183 7 % Total deposits $ 145,279 $ 137,717 $ 134,809 8 % Shareholders' equity $ 16,700 $ 16,381 $ 15,733 6 %   Summary Income Statement (Unaudited, dollars in thousands    

Quarterended

   

Quarterended

   

Quarterended

except per share data)

3/31/2012

   

12/31/2011

   

3/31/2011

Interest income $ 1,916 $ 1,917 $ 1,774 Interest expense   151         162         226   Net interest income 1,766 1,756 1,548 Provision for loan losses 0 0 22 Non-interest income 210 126 180 OREO writedown 0 300 0 Non-interest expense   1,679         1,485         1,588   Net income (loss) $ 297       $ 97       $ 118     Earnings (loss) per share $ 0.09 $ 0.03 $ 0.04 Net interest margin 4.72 % 4.59 % 4.52 %               Minimum required to be Capital Ratios 3/31/2012     12/31/2011    

well-capitalized

Tier 1 leverage ratio 10.40% 10.11% 5.00% Tier 1 risk-based capital ratio 11.53% 11.18% 6.00% Total risk-based capital ratio 12.79% 12.43% 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 March 2012 call report.