Pinnacle Bank Announces Q1 2015 Results

GILROY, Calif., May 1, 2015 /PRNewswire/ -- Pinnacle Bank (OTCQX: PBNK), headquartered in Gilroy, California, announced today unaudited income for the three months ended March 31, 2015 of $149,000 compared to $160,000 in the same period of 2014.

As of March 31, 2015, total assets were $242.2 million, an 18% increase from the $206.0 million at March 31, 2014.

Loans were $164.7 million at March 31, 2015, an increase of $15.9 million (11%) from the March 31, 2014 balance of $148.8 million. The allowance for loan losses at March 31, 2015 was $3.58 million or 2.17% of loans compared to $3.43 million or 2.31% of loans at March 31, 2014. Nonperforming assets were reduced to $2.27 million (0.94% of assets) at March 31, 2015 from $2.74 million (1.33% of assets) a year earlier.

Non-interest bearing deposits at March 31, 2015, increased 29% to $85.9 million from $66.7 million at March 31, 2014. Total deposits at March 31, 2015, were $216.8 million compared to $182.1 million at March 31, 2014, a 19% increase.

"We are pleased to report steady growth in the first quarter, with new highs in assets, loans and deposits. We are well positioned to capitalize on the opportunities for organic growth in our markets with high quality loan demand and core deposits," stated Susan K. Black, President and CEO. "Our focus on relationships helped us achieve 29% year-over-year growth in non-interest bearing deposits and demonstrates the quality core business relationships we continue to attract. Our franchise is solid and we remain very optimistic about future opportunities."

The bank's capital position remains above regulatory guidelines for well capitalized banks. At March 31, 2015, the Bank had a total risk based capital ratio of 12.50%. Book value per share at March 31, 2015 was $7.28. Net interest margin in the first quarter of 2015 was 3.62%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and March 2015 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 businesses and nonprofit organizations, 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 March 2015 call report.

Forward-Looking Statements
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.

Media Contact:
Pinnacle Bank
Susan K. Black, President & CEO
408-762-7140

Summary Balance Sheet				Year over year change
(Unaudited, dollars in thousands)	3/31/2015	12/31/2014	3/31/2014	$	%
Total assets	$ 242,186	$ 230,423	$ 205,988	$ 36,198	18%
Gross loans	$ 164,677	$ 161,863	$ 148,811	$ 15,866	11%
Allowance for loan losses	$ (3,577)	$ (3,535)	$ (3,433)	$ (144)	4%
Non-interest bearing deposits	$ 85,864	$ 81,395	$ 66,746	$ 19,118	29%
Interest-bearing deposits	$ 130,940	$ 123,951	$ 115,326	$ 15,614	14%
Total deposits	$ 216,804	$ 205,346	$ 182,072	$ 34,732	19%
Shareholders' equity	$ 24,327	$ 24,130	$ 23,174	$ 1,153	5%

Summary Income Statement
(Unaudited, dollars in thousands	Quarter ended	Quarter ended	Change	Quarter ended	Change
except per share data)	3/31/2015	12/31/2014	%	3/31/2014	%
Interest income	$ 2,013	$ 2,085	-3%	$ 2,160	-7%
Interest expense	82	87	-6%	75	9%
Net interest income	1,931	1,998	-3%	2,085	-7%
Provision for loan losses	0	0	0%	0	0%
Non-interest income	339	251	35%	219	55%
Non-interest expense	2,028	1,901	7%	2,028	0%
Income tax expense	93	126	-26%	116	-20%
Net income (loss)	$ 149	$ 223	-33%	$ 160	-7%

Earnings (loss) per share	$ 0.04	$ 0.06	-32%	$ 0.05	-20%
Book value per share	$ 7.28	$ 7.24	1%	$ 7.04	3%

				Minimum
				required to be
Capital Ratios	3/31/2015	12/31/2014	3/31/2014	well-capitalized
Tier 1 leverage ratio	9.13%	8.69%	9.40%	5.00%
Tier 1 risk-based capital ratio	11.24%	10.37%	10.06%	6.00%
Total risk-based capital ratio	12.50%	11.63%	11.32%	10.00%

Nonperforming assets	3/31/2015	12/31/2014	3/31/2014
Nonperforming assets	$ 2,268	$ 2,287	$ 2,738
Nonperforming assets to total assets	0.94%	0.99%	1.33%
Allowance for loan losses to nonperforming loans	390%	377%	247%