Pinnacle Bancshares Announces Results for Fourth Quarter and Year Ended December 31, 2018

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacles results of operations for the fourth quarter and year ended December 31, 2018:

  • For the three months ended December 31, 2018, Pinnacle reported net income of $689,000, compared to $597,000 for the three months ended December 31, 2017. Pre-tax income for the three months ended December 31, 2018 increased 24.20% from the three months ended December 31, 2017.
  • Net interest income before the provision for loan losses for the three months ended December 31, 2018 was $1,965,000, compared with $1,819,000 in the same period last year.
  • For the year ended December 31, 2018, net income was $2,596,000, compared with net income of $2,296,000 in the prior year. Pre-tax income for the year ended December 31, 2018 increased 10.06% from the year ended December 31, 2017
  • Net interest income before the provision for loan losses for the year ended December 31, 2018, was $7,716,000, compared with $7,258,000 in the prior year.
  • For the three months ended December 31, 2018, basic and diluted earnings were each $0.66 per share. For the same period in 2017, basic and diluted earnings were each $0.57 per share.
  • Basic and diluted earnings were each $2.49 per share for the year ended December 31, 2018. For 2017, basic and diluted earnings were each $2.20 per share.

The Companys net interest margin was 3.85% and 3.77% for the three months and year ended December 31, 2018, respectively, compared to 3.63% and 3.55% for the three months and year ended December 31, 2017, respectively.

At December 31, 2018, Pinnacles allowance for loan losses as a percent of total loans was 1.53%, compared to 1.68% at December 31, 2017.

At December 31, 2018, the allowance for loan losses as a percent of nonperforming loans was 596.28%, compared to 670.42% at December 31, 2017. Net charge-offs were $4,800 in 2018, compared to net charge-offs of $10,000 in the prior year. Nonperforming assets were $269,000 at December 31, 2018, compared to $281,000 at December 31, 2017. The ratio of nonperforming assets to total loans was .26% at December 31, 2018, compared to .29% at December 31, 2017.

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Pinnacle was classified as well capitalized at the end of 2018. At December 31, 2018, total risk-based capital was 19.95% for the subsidiary bank. Tier 1 risk-based capital and Tier 1 leverage capital ratios for the subsidiary bank were 18.88% and 12.85%, respectively. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.11 and $.44 per share were paid to shareholders during the three months and year ended for both December 31, 2018, and 2017.

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 Pinnacles 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

       
Unaudited Financial Highlights
 
Three Months Ended December 31,
  2018     2017  
Net Income $ 689,000 $ 597,000
Weighted average basic shares outstanding 1,043,505 1,043,505
Weighted average diluted shares outstanding 1,043,505 1,043,505
Dividend per share $ 0.11 $ 0.11
Provision for loan losses $ $
Basic earnings per share $ 0.66 $ .0.57
Diluted earnings per share $ 0.66 $ 0.57
Performance Ratios: (annualized)
Return on average assets 1.25 % 1.09 %
Return on average equity 9.97 % 9.33 %
Interest rate spread 3.67 % 3.51 %
Net interest margin 3.85 % 3.63 %
Operating cost to assets 2.85 % 2.76 %

 

For the Year Ended At December 31,
  2018     2017  
Net Income $ 2,596,000 $ 2,296,000
Weighted average basic shares outstanding 1,043,505 1,043,505
Weighted average diluted shares outstanding 1,043,505 1,043,505
Dividend per share $ 0.44 $ 0.44
Provision for loan losses $ $
Basic earnings per share $ 2.49 $ 2.20
Diluted earnings per share $ 2.49 $ 2.20
Performance Ratios:
Return on average assets 1.17 % 1.03 %
Return on average equity 9.61 % 9.23 %
Interest rate spread 3.62 % 3.43 %
Net interest margin 3.77 % 3.55 %
Operating cost to assets 2.85 % 2.69 %
 
At December 31,
  2018     2017  
Total assets $ 220,981,000 $ 217,836,000
Loans receivable, net $ 103,282,000 $ 94,204,000
Deposits $ 185,327,000 $ 186,327,000
Brokered CDs included in Deposits $ 2,999,000 $

Other borrowings $ 4,500,000 $ 1,600,000
Total stockholders’ equity $ 27,207,000 $ 26,013,000
Weighted average book value per share $ 26.07 $ 24.93
Stockholders’ average equity to asset ratio 12.17 % 11.16 %
Asset Quality Ratios:
Nonperforming loans as a percent of total loans .26 % .29 %
Nonperforming assets as a percent of total Loans .26 % .29 %
Allowance for loan losses as a percent of total loans 1.53 % 1.68 %
Allowance for loan losses as a percent of nonperforming loans 596.28 % 670.42 %

Joe B. Adams, III
Chief Financial Officer
(205) 221-8866