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, 2021:
- For the three months ended March 31, 2021, Pinnacle reported net income of $907,000, compared to $841,000 for the three months ended March 31, 2020. Included in net income for the first quarter 2020 was approximately $120,000 gain on sale of securities, net of tax. These were no such gains recorded during the first quarter 2021.
- Net interest income after the provision for loan losses for the three months ended March 31, 2021, was $2,379,000, compared with $2,022,000 in the same period last year.
- Included in net interest income for the three months ended March 31, 2021 are Paycheck Protection Program (“PPP”) amortized loan fees of approximately $141,000. There were no PPP amortized loans fees recorded for the three months ended March 31, 2020.
- For the three months ended March 31, 2021, basic and diluted earnings per share were each $0.93. For the same period in 2020 basic and diluted earnings per share were each $0.82.
- For the three months ended March 31, 2021, return on average assets was 1.26%, compared to 1.39% in the comparable 2020 period.
The Company’s net interest margin was 3.61% for the three months March 31, 2021, compared to 3.68% for the three months ended March 31, 2020.
At March 31, 2021, Pinnacle’s allowance for loan losses as a percent of total loans was 1.92%, compared to 2.13% at December 31, 2020. Excluding PPP loans of $10.7 million dollars and $6.4 million dollars, the allowance for loan losses as a percent of total loans as of March 31, 2021 and December 31, 2020, was 2.10% and 2.26%, respectively. At March 31, 2021, the allowance for loan losses as a percent of nonperforming loans was 1979.83%, compared to 1833.08% at December 31, 2020. Nonperforming assets were $119,000 at March 31, 2021, compared to $130,000 at December 31, 2020. The ratio of nonperforming assets to total loans was .10% at March 31, 2021, and .12% at December 31, 2020.
Pinnacle was classified as “well capitalized” at March 31, 2021. All capital ratios are significantly higher than the requirements for a well-capitalized institution.
Dividends of $.22 per share were paid to shareholders during the first quarter of 2021 and $.19 per share during the first quarter 2020.
As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which are likely to negatively impact the Company. The extent of COVID-19’s impact on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, the virus’ impact on the Company’s customers, employees and vendors, and vaccination supply and delivery. At this point, the extent to which COVID-19 may impact the Company’s financial condition or results of operations remains uncertain.
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, |
|||||||
|
2021 |
|
2020 |
|||||
Net Income |
$ |
907,000 |
|
$ |
841,000 |
|
||
Weighted average basic shares outstanding |
|
973,505 |
|
|
1,019,389 |
|
||
Weighted average diluted shares outstanding |
|
973,505 |
|
|
1,019,389 |
|
||
Dividend per share |
$ |
.22 |
|
$ |
.19 |
|
||
Provision for loan losses |
$ |
- |
|
$ |
- |
|
||
Basic and diluted earnings per share |
$ |
0.93 |
|
$ |
0.82 |
|
||
Performance Ratios: (annualized) |
|
|
||||||
Return on average assets |
|
1.26 |
% |
|
1.39 |
% |
||
Return on average equity |
|
11.90 |
% |
|
11.44 |
% |
||
Interest rate spread |
|
3.51 |
% |
|
3.45 |
% |
||
Net interest margin |
|
3.61 |
% |
|
3.68 |
% |
||
Operating cost to assets |
|
2.33 |
% |
|
2.64 |
% |
||
|
|
|
||||||
|
|
|
(Audited) |
|||||
|
March 31, 2021 |
|
December 31, 2021 |
|||||
Total assets |
$ |
306,731,000 |
|
$ |
275,742,000 |
|
||
Loans receivable, net |
$ |
120,325,000 |
|
$ |
109,429,000 |
|
||
Deposits |
$ |
269,186,000 |
|
$ |
235,109,000 |
|
||
Brokered CD’s included in deposits |
$ |
14,980,000 |
|
$ |
14,980,000 |
|
||
Total stockholders’ equity |
$ |
32,100,000 |
|
$ |
34,332,000 |
|
||
Weighted average book value per share |
$ |
32.97 |
|
$ |
34.63 |
|
||
Total average stockholders' equity to asset ratio |
|
10.60 |
% |
|
11.15 |
% |
||
Asset Quality Ratios: |
|
|
||||||
Nonperforming loans as a percent of total loans |
|
.10 |
% |
|
.12 |
% |
||
Nonperforming assets as a percent of total loans |
|
.10 |
% |
|
.12 |
% |
||
Allowance for loan losses as a percent of total loans |
|
1.92 |
% |
|
2.13 |
% |
||
Allowance for loan losses as a percent of nonperforming loans |
|
1979.83 |
% |
|
1833.08 |
% |
||
PINNACLE BANCSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION |
||||||||
|
|
|
|
|
||||
|
|
(Unaudited) |
|
(Audited) |
||||
|
|
March 31, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
||||
Assets |
|
|
||||||
Cash and cash equivalents |
$ |
2,041,243 |
|
$ |
2,080,667 |
|
||
Interest bearing deposits in banks |
|
15,009,497 |
|
|
4,106,661 |
|
||
Securities available for sale |
|
148,848,166 |
|
|
139,688,995 |
|
||
Restricted equity securities |
|
716,000 |
|
|
785,500 |
|
||
|
|
|
||||||
Loans |
|
122,681,575 |
|
|
111,811,886 |
|
||
Less allowance for loan losses |
|
2,356,076 |
|
|
2,382,799 |
|
||
Loans, net |
|
120,325,499 |
|
|
109,429,087 |
|
||
|
|
|
||||||
Premises and equipment, net |
|
6,921,375 |
|
|
6,555,446 |
|
||
Operating right-of-use lease assets |
|
564,271 |
|
|
587,970 |
|
||
Goodwill |
|
306,488 |
|
|
306,488 |
|
||
Bank owned life insurance |
|
10,394,843 |
|
|
10,296,876 |
|
||
Accrued interest receivable |
|
1,183,362 |
|
|
1,491,026 |
|
||
Other assets |
|
419,832 |
|
|
413,613 |
|
||
Total assets |
$ |
306,730,576 |
|
$ |
275,742,329 |
|
||
|
|
|
||||||
Liabilities and Stockholders’ Equity |
|
|
||||||
Deposits: |
|
|
||||||
Noninterest-bearing |
$ |
83,755,806 |
|
$ |
72,897,929 |
|
||
Interest-bearing |
|
185,430,659 |
|
|
162,210,802 |
|
||
Total deposits |
|
269,186,465 |
|
|
235,108,731 |
|
||
|
|
|
||||||
Subordinated debentures |
|
3,093,000 |
|
|
3,093,000 |
|
||
Accrued interest payable |
|
123,194 |
|
|
145,826 |
|
||
Operating lease liabilities |
|
564,271 |
|
|
587,970 |
|
||
Other liabilities |
|
1,663,469 |
|
|
2,474,936 |
|
||
Total liabilities |
|
274,630,399 |
|
|
241,410,463 |
|
||
|
|
|
||||||
Stockholders’ equity |
|
|
||||||
Common stock, $.01 par value, 2,400,000 shares authorized; 1,872,313 shares issued; 973,505 shares outstanding |
|
18,723 |
|
|
18,723 |
|
||
Additional paid-in capital |
|
8,923,223 |
|
|
8,923,223 |
|
||
Treasury stock, at cost (898,808 shares) |
|
(13,441,345 |
) |
|
(13,441,345 |
) |
||
Retained earnings |
|
35,566,853 |
|
|
34,874,072 |
|
||
Accumulated other comprehensive income, net of tax |
|
1,032,723 |
|
|
3,957,193 |
|
||
Total stockholders’ equity |
|
32,100,177 |
|
|
34,331,866 |
|
||
|
|
|
||||||
Total liabilities and stockholders’ equity |
$ |
306,730,576 |
|
$ |
275,742,329 |
|
||
PINNACLE BANCSHARES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended March 31, 2021 and 2020 |
||||||
|
|
|
|
|
||
|
|
2021 |
|
2020 |
||
Interest income |
|
|
||||
Loans, including fees |
$ |
1,538,243 |
$ |
1,431,258 |
||
Taxable securities |
|
912,113 |
|
749,227 |
||
Nontaxable securities |
|
58,493 |
|
106,123 |
||
Other interest |
|
5,632 |
|
19,132 |
||
Total interest income |
|
2,514,481 |
|
2,305,740 |
||
|
|
|
||||
Interest expense |
|
|
||||
Deposits |
|
97,172 |
|
240,037 |
||
Borrowings and repurchase agreements |
|
- |
|
3,330 |
||
Subordinated debentures |
|
38,500 |
|
40,100 |
||
Total interest expense |
|
135,672 |
|
283,467 |
||
|
|
|
||||
Net interest income |
|
2,378,809 |
|
2,022,273 |
||
Provision for loan losses |
|
- |
|
- |
||
Net interest income after provision for loan losses |
|
2,378,809 |
|
2,022,273 |
||
|
|
|
||||
Other income |
|
|
||||
Fees and service charges on deposit accounts |
|
346,188 |
|
365,647 |
||
Servicing fee income, net |
|
1,059 |
|
1,423 |
||
Bank owned life insurance |
|
97,967 |
|
94,186 |
||
Mortgage fee income |
|
2,487 |
|
12,006 |
||
Net gain on sale of securities available for sale |
|
- |
|
152,658 |
||
Total other income |
|
447,701 |
|
625,920 |
||
|
|
|
||||
Other expenses |
|
|
||||
Salaries and employee benefits |
|
958,973 |
|
940,542 |
||
Occupancy expenses |
|
222,144 |
|
201,705 |
||
Marketing and professional expenses |
|
64,637 |
|
59,246 |
||
Other operating expenses |
|
432,901 |
|
389,240 |
||
Total other expenses |
|
1,678,655 |
|
1,590,733 |
||
|
|
|
||||
Income before income taxes |
|
1,147,855 |
|
1,057,460 |
||
|
|
|
||||
Income tax expense |
|
240,903 |
|
216,849 |
||
|
|
|
||||
Net income |
$ |
906,952 |
$ |
840,611 |
||
|
|
|
||||
Basic and diluted earnings per share |
$ |
0.93 |
$ |
0.82 |
||
|
|
|
||||
Cash dividends per share |
$ |
0.22 |
$ |
0.19 |
||
Weighted-average basic and diluted shares outstanding |
|
973,505 |
|
1,019,389 |
||
PINNACLE BANCSHARES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Three Months Ended March 31, 2021 and 2020 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
||||||||||
|
|
|
|
|
|
Additional |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
Common Stock |
|
Paid-in |
|
Treasury |
|
Retained |
|
Comprehensive |
|
Stockholders’ |
||||||||||||
|
|
Shares |
|
Par Value |
|
Capital |
|
Stock |
|
Earnings |
|
Income (Loss) |
|
Equity |
||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, December 31, 2012 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(11,730,888 |
) |
|
$ |
32,445,916 |
|
|
$ |
1,130,578 |
|
|
$ |
30,787,552 |
|
|
Net income |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
840,611 |
|
|
|
- |
|
|
|
840,611 |
|
|
Cash dividends declared, $0.19 per share |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(194,354 |
) |
|
|
- |
|
|
|
(194,354 |
) |
|
Purchase of treasury stock |
- |
|
|
- |
|
|
- |
|
|
(1,173,412 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,173,412 |
) |
|
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(2,149,147 |
) |
|
|
(2,149,147 |
) |
|
Balance, March 31, 2020 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(12,904,300 |
) |
|
$ |
33,092,173 |
|
|
$ |
(1,018,569 |
) |
|
$ |
28,111,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2020 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,345 |
) |
|
$ |
34,874,072 |
|
|
$ |
3,957,193 |
|
|
$ |
34,331,866 |
|
|
Net income |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
906,952 |
|
|
|
- |
|
|
|
906,952 |
|
|
Cash dividends declared, $0.22 per share |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(214,171 |
) |
|
|
- |
|
|
|
(214,171 |
) |
|
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(2,924,470 |
) |
|
|
(2,924,470 |
) |
|
Balance, March 31, 2021 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,345 |
) |
|
$ |
35,566,853 |
|
|
$ |
1,032,723 |
|
|
$ |
32,100,177 |
|
|
PINNACLE BANCSHARES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2021 and 2020 |
||||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
OPERATING ACTIVITIES |
|
|
||||||
Net income |
$ |
906,952 |
|
|
$ |
840,611 |
|
|
Adjustments to reconcile net income to net cash |
|
|
|
|||||
provided by operating activities: |
|
|
|
|||||
Depreciation |
|
103,599 |
|
|
|
95,319 |
|
|
Net amortization of securities |
|
81,760 |
|
|
|
67,250 |
|
|
Gain on sale of securities available for sale |
|
- |
|
|
|
(152,658 |
) |
|
Bank owned life insurance |
|
(97,967 |
) |
|
|
(94,186 |
) |
|
Decrease in accrued interest receivable |
|
307,664 |
|
|
|
197,846 |
|
|
Increase (decrease) in accrued interest payable |
|
(22,632 |
) |
|
|
5,055 |
|
|
Net other operating activities |
|
539,307 |
|
|
|
(444,397 |
) |
|
Net cash provided by operating activities |
|
1,818,683 |
|
|
|
514,840 |
|
|
INVESTING ACTIVITIES |
|
|
|
|||||
Net increase in loans |
|
(10,896,412 |
) |
|
|
(143,420 |
) |
|
Net increase in interest-bearing deposits in banks |
|
(10,902,836 |
) |
|
|
(1,091,768 |
) |
|
Purchase of securities available for sale |
|
(19,626,046 |
) |
|
|
(21,737,575 |
) |
|
Proceeds from sales of securities available for sale |
|
- |
|
|
|
2,732,970 |
|
|
Proceeds from maturing or callable securities available for sale |
|
6,103,652 |
|
|
|
4,623,758 |
|
|
Net redemption of restricted equity securities |
|
69,500 |
|
|
|
34,000 |
|
|
Purchase of premises and equipment |
|
(469,528 |
) |
|
|
(180,984 |
) |
|
Net cash used in investing activities |
|
(35,721,670 |
) |
|
|
(15,763,019 |
) |
|
|
|
|
|
|||||
FINANCING ACTIVITIES |
|
|
|
|||||
Net increase in deposits |
|
34,077,734 |
|
|
|
17,090,449 |
|
|
Purchase of treasury stock |
|
- |
|
|
|
(1,173,412 |
) |
|
Payments of cash dividends |
|
(214,171 |
) |
|
|
(194,354 |
) |
|
Net cash provided by financing activities |
|
33,863,563 |
|
|
|
15,722,683 |
|
|
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
|
(39,424 |
) |
|
|
474,504 |
|
|
|
|
|
|
|||||
Cash and cash equivalents at beginning of year |
|
2,080,667 |
|
|
|
1,814,912 |
|
|
|
|
|
|
|||||
Cash and cash equivalents at end of year |
$ |
2,041,243 |
|
|
$ |
2,289,416 |
|
|
|
|
|
|
|||||
SUPPLEMENTAL DISCLOSURE |
|
|
|
|||||
Cash paid during the year for: |
|
|
|
|||||
Interest |
$ |
158,304 |
|
|
$ |
278,412 |
|
|
Taxes |
$ |
- |
|
|
$ |
402,131 |
|
|
OTHER NONCASH TRANSACTIONS |
|
|
|
|||||
Real estate acquired through foreclosure |
$ |
- |
|
|
$ |
- |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210415006022/en/
Contacts
Joe B. Adams, III
Chief Financial Officer
(205) 221-8866
