Market Overview

Pinnacle Bank Announces Third Quarter Earnings

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GILROY, Calif.--(BUSINESS WIRE)--

Pinnacle Bank – PBNK, headquartered in Gilroy, California, announced today a profitable third quarter. For the three months ended September 30, 2012, the Bank reported net income of $104,000 compared to $188,000 in the comparable quarter of 2011. Year-to-date net income through September 30, 2012 was $668,000 compared to $454,000 in the same period last year.

As of September 30, 2012, total assets were $162.9 million, a 2% increase from the $159.3 million at September 30, 2011.

Loans were $132.7 million at September 30, 2012, an increase of $6.2 million (5%) from the September 30, 2011, balance of $126.5 million. The allowance for loan losses at September 30, 2012, was $3.0 million or 2.2% of loans. Nonaccrual loans at September 30, 2012, were $2.8 million, an increase of $1.0 million from $1.8 million at December 31, 2011.

Non-interest bearing deposits at September 30, 2012, increased 7% to $36.6 million from $34.1 million at September 30, 2011. Total deposits at September 30, 2012, were $140.4 million compared to $142.0 million at September 30, 2011, a 1% decrease.

“We are pleased to report the results of executing our strategy of increasing franchise value by careful controlled growth. We continue to restructure our balance sheet and replace real estate loans made early in the Bank's history with core business banking relationships,” stated Susan K. Black, President and CEO. “Despite margin compression and competitive pressures, we are building a solid franchise and remain optimistic about future opportunities.”

The bank's capital position remains above regulatory guidelines for well capitalized banks. At September 30, 2012, the Bank had a total risk based capital ratio of 12.41%.

For more information please go to www.pinnaclebankonline.com click on Investor Relations and September 2012 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 small to medium-sized businesses, 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 September 2012 call report.

Summary Balance Sheet     9/30/2012       12/31/2011       9/30/2011    

12 Month
%
Change

(Unaudited, dollars in thousands)
Total assets $ 162,886 $ 154,911 $ 159,290 2 %
Gross loans $ 132,712 $ 131,800 $ 126,547 5 %
Allowance for loan losses $ (2,954 ) $ (2,771 ) $ (2,764 ) 7 %
Deposits
Non-interest bearing $ 36,561 $ 35,675 $ 34,145 7 %
Interest-bearing $ 103,853 $ 102,042 $ 107,874 -4 %
Total deposits $ 140,414 $ 137,717 $ 142,019 -1 %
Shareholders' equity $ 17,116 $ 16,382 $ 16,267 5 %
     
Summary Income Statement
(Unaudited, dollars in thousands

Quarter
ended

Quarter
ended

Quarter
ended

except per share data)   9/30/2012       6/30/2012       9/30/2011  
Interest income $ 1,778 $ 1,834 $ 1,826
Interest expense   112       128       173  
Net interest income 1,666 1,705 1,653
Provision for loan losses 188 0 146
Non-interest income 120 134 126
Non-interest expense   1,494       1,572       1,445  
Net income (loss) $ 104     $ 267     $ 188  
 
Earnings (loss) per share $ 0.03 $ 0.08 $ 0.06
Net interest margin 4.49 % 4.69 % 4.54 %
       

 

Minimum
required to be
Capital Ratios 9/30/2012   6/30/2012   9/30/2011  

well-
capitalized

Tier 1 leverage ratio 10.53 % 10.64 % 10.54 % 5.00 %
Tier 1 risk-based capital ratio 11.15 % 11.52 % 12.63 % 6.00 %
Total risk-based capital ratio 12.41 % 12.78 % 11.38 % 10.00 %

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

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