JASPER, Ala.--(BUSINESS WIRE)--Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle’s third quarter results of operations.
- For the three months ended September 30, 2016, Pinnacle reported net income of $578,000 compared to $578,000 for the three months ended September 30, 2015.
- For the nine months ended September 30, 2016, Pinnacle reported net income of $1,772,000 compared to $1,732,000 for the nine months ended September 30, 2015.
- Basic and diluted earnings per share for the three and nine months ended September 30, 2016 were $0.50 and $1.53 per share, respectively, compared to $0.49 and $1.47 per share, respectively, for the same periods last year.
- For the three and nine months ended September 30, 2016, return on average assets was 1.02%, and 1.06%, respectively, compared to 1.01% and 1.01%, respectively, in the comparable 2015 period.
Included in net income for the nine months ended September 30, 2016 and 2015 are gains on sale of securities available for sale of approximately $192,000 and $108,000, respectively. There were no gains on sale of securities available for sale for the three months ended September 30, 2016 and 2015.
Pinnacle’s net interest margin was 3.46% and 3.43% for the three and nine months ended September 30, 2016, respectively, compared to 3.40% and 3.41% for the three and nine months ended September 30, 2015, respectively.
At September 30, 2016, Pinnacle’s allowance for loan losses as a percent of total loans was 1.77%, compared to 1.81% at December 31, 2015. At September 30, 2016, the allowance for loan losses as a percent of nonperforming loans was 997.53%, compared to 761.06% at December 31, 2015. Nonperforming assets were $163,000 at September 30, 2016, compared to $276,000 at December 31, 2015. The ratio of nonperforming assets to total loans was .18% at September 30, 2016, compared to .32% at December 31, 2015.
Pinnacle was classified as “well capitalized” at September 30, 2016. Total risk-based capital was 19.94% for the subsidiary bank. Tier 1 risk-based capital and Tier 1 leverage capital ratios for the subsidiary bank were 18.79% and 11.68%, respectively. All capital ratios are significantly higher than the requirements for a well-capitalized institution.
Dividends of $.11 and $.33 per share were paid to shareholders during the three and nine months ended for both September 30, 2016, and 2015.
Despite the Company’s good financial performance during the last several years, Mr. Nolen cautioned investors that any negative changes to economic conditions could have an adverse effect on Pinnacle’s borrowers and their customers, which could adversely affect Pinnacle’s financial condition and results of operations.
Mr. Nolen stated: “Pinnacle continues to maintain strong regulatory capital. We are pleased with our net income and credit quality improvements which reflect the continued efforts of our Board and associates. We remain focused on our current strategies which are intended to provide superior services to customers in our market and enhance shareholder value.”
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.
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PINNACLE BANCSHARES, INC. Unaudited Financial Highlights (In Thousands, except share and per share data) |
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| Three Months Ended September 30, | ||||||||
| 2016 | 2015 | |||||||
| Net income | $ | 578,000 | $ | 578,000 | ||||
| Basic and diluted earnings per share | $ | 0.50 | $ | 0.49 | ||||
| Performance ratios (annualized): | ||||||||
| Return on average assets | 1.02% | 1.01% | ||||||
| Return on average equity | 8.94% | 9.35% | ||||||
| Interest rate spread | 3.32% | 3.29% | ||||||
| Net interest margin | 3.46% | 3.40% | ||||||
| Operating cost to assets | 2.61% | 2.60% | ||||||
| Weighted average basic and diluted shares outstanding | 1,149,278 | 1,180,128 | ||||||
| Dividends per share | $ | 0.11 | $ | 0.11 | ||||
| Provision for loan losses | $ | - | $ | - | ||||
| Nine Months Ended September 30, | ||||||||
| 2016 | 2015 | |||||||
| Net income | $ | 1,772,000 | $ | 1,732,000 | ||||
| Basic and diluted earnings per share | $ | 1.53 | $ | 1.47 | ||||
| Performance ratios (annualized): | ||||||||
| Return on average assets | 1.06% | 1.01% | ||||||
| Return on average equity | 9.25% | 9.51% | ||||||
| Interest rate spread | 3.31% | 3.31% | ||||||
| Net interest margin | 3.43% | 3.41% | ||||||
| Operating cost to assets | 2.66% | 2.62% | ||||||
| Weighted average basic and diluted shares outstanding | 1,156,974 | 1,180,128 | ||||||
| Dividends per share | $ | 0.33 | $ | 0.33 | ||||
| Provision for loan losses | $ | - | $ | - | ||||
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(Audited) |
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| September 30, 2016 | December 31, 2015 | |||||||
| Total assets | $ | 225,669,000 | $ | 219,509,000 | ||||
| Loans receivable, net | $ | 91,212,000 | $ | 85,960,000 | ||||
| Deposits | $ | 193,203,000 | $ | 184,917,000 | ||||
| Other borrowings | $ | - | $ | 5,000,000 | ||||
| Total stockholders’ equity | $ | 27,926,000 | $ | 25,838,000 | ||||
| Weighted average book value per share | $ | 24.14 | $ | 21.91 | ||||
| Stockholders’ equity to assets ratio | 11.42% | 10.70% | ||||||
| Asset quality ratios: | ||||||||
| Nonperforming loans as a percent of total loans | .18% | .24% | ||||||
| Nonperforming assets as a percent of total loans | .18% | 32% | ||||||
| Allowance for loan losses as a percent of total loans | 1.77% | 1.81% | ||||||
| Allowance for loan losses as a percent of nonperforming loans | 997.53% | 761.06% | ||||||
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FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
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| (Unaudited) | ||||||||||
| September 30, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
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Assets |
||||||||||
| Cash and cash equivalents | $ | 1,662,480 | $ | 1,718,147 | ||||||
| Interest bearing deposits in banks | 9,005,466 | 3,138,418 | ||||||||
| Securities available for sale | 107,396,936 | 112,108,512 | ||||||||
| Restricted equity securities | 722,600 | 934,600 | ||||||||
| Loans | 92,827,661 | 87,543,012 | ||||||||
| Less Allowance for loan losses | 1,615,628 | 1,582,707 | ||||||||
| Loans, net | 91,212,033 | 85,960,305 | ||||||||
| Other real estate owned | 1 | 68,185 | ||||||||
| Premises and equipment, net | 5,207,086 | 5,326,322 | ||||||||
| Goodwill | 306,488 | 306,488 | ||||||||
| Bank owned life insurance | 8,796,101 | 8,522,155 | ||||||||
| Accrued interest receivable | 1,072,517 | 1,155,531 | ||||||||
| Other assets | 287,506 | 270,623 | ||||||||
| Total assets | $ | 225,669,214 | $ | 219,509,286 | ||||||
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Liabilities and Stockholders’ Equity |
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| Deposits | ||||||||||
| Noninterest-bearing | $ | 58,855,020 | $ | 48,001,274 | ||||||
| Interest-bearing | 134,348,225 | 136,915,937 | ||||||||
| Total deposits | 193,203,245 | 184,917,211 | ||||||||
| Other borrowings | - | 5,000,000 | ||||||||
| Subordinated debentures | 3,093,000 | 3,093,000 | ||||||||
| Accrued interest payable | 74,509 | 93,830 | ||||||||
| Other liabilities | 1,372,229 | 567,308 | ||||||||
| Total liabilities | 197,742,983 | 193,671,349 | ||||||||
| Stockholders’ equity | ||||||||||
| Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 1,149,278 and 1,172,628 outstanding, respectively | 18,723 | 18,723 | ||||||||
| Additional paid-in capital | 8,923,223 | 8,923,223 | ||||||||
| Treasury stock (723,035 and 699,685 shares, respectively) | (9,004,876 | ) | (8,532,831 | ) | ||||||
| Retained earnings | 26,031,876 | 24,640,492 | ||||||||
| Accumulated other comprehensive income, net of tax | 1,957,285 | 788,330 | ||||||||
| Total stockholders’ equity | 27,926,231 | 25,837,937 | ||||||||
| Total liabilities and stockholders’ equity | $ | 225,669,214 | $ | 219,509,286 | ||||||
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PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Interest income | ||||||||||||||||
| Loans, including fees | $ | 1,125,322 | $ | 1,114,741 | $ | 3,292,608 | $ | 3,364,977 | ||||||||
| Securities available for sale | 767,604 | 824,569 | 2,336,514 | 2,454,607 | ||||||||||||
| Other interest | 25,102 | 16,742 | 54,727 | 30,145 | ||||||||||||
| Total interest income | 1,918,028 | 1,956,052 | 5,683,849 | 5,849,729 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 103,580 | 112,822 | 324,013 | 336,444 | ||||||||||||
| Borrowings and repurchase agreements | - | 6,057 | 7,103 | 14,986 | ||||||||||||
| Subordinated debentures | 28,700 | 23,000 | 84,000 | 73,750 | ||||||||||||
| Total interest expense | 132,280 | 141,879 | 415,116 | 425,180 | ||||||||||||
| Net interest income | 1,785,748 | 1,814,173 | 5,268,733 | 5,424,549 | ||||||||||||
| Provision for loan losses | - | - | - | - | ||||||||||||
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Net interest income after provision
for loan losses |
1,785,748 | 1,814,173 | 5,268,733 | 5,424,549 | ||||||||||||
| Other income | ||||||||||||||||
| Fees and service charges on deposit accounts | 310,814 | 278,443 | 904,044 | 750,694 | ||||||||||||
| Service fee income, net | 4,149 | 5,070 | 12,697 | 15,781 | ||||||||||||
| Bank owned life insurance | 91,315 | 90,863 | 273,945 | 272,589 | ||||||||||||
| Mortgage fee income | 12,964 | 9,624 | 36,732 | 22,006 | ||||||||||||
| Net gain on securities available for sale | - | - | 191,546 | 108,102 | ||||||||||||
| Total other income | 419,242 | 384,000 | 1,418,964 | 1,169,172 | ||||||||||||
| Other expense: | ||||||||||||||||
| Salaries and employee benefits | 798,233 | 751,770 | 2,373,577 | 2,309,522 | ||||||||||||
| Occupancy expense | 242,706 | 238,302 | 704,030 | 728,480 | ||||||||||||
| Marketing and professional expense | 64,135 | 80,182 | 226,247 | 233,263 | ||||||||||||
| Net loss on sale of real estate owned | - | 12,626 | 4,167 | 17,098 | ||||||||||||
| Other operating expenses | 368,573 | 410,107 | 1,148,966 | 1,212,616 | ||||||||||||
| Total other expenses | 1,473,647 | 1,492,987 | 4,456,987 | 4,500,979 | ||||||||||||
| Income before income taxes | 731,343 | 705,186 | 2,230,710 | 2,092,742 | ||||||||||||
| Income tax expense | 153,341 | 127,238 | 458,403 | 361,025 | ||||||||||||
| Net income | $ | 578,002 | $ | 577,948 | $ | 1,772,307 | $ | 1,731,717 | ||||||||
| Cash dividend per share | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.11 | ||||||||
| Basic and diluted earnings per share | $ | 0.50 | $ | 0.49 | $ | 1.53 | $ | 1.47 | ||||||||
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Weighted –average basic and diluted
shares outstanding |
1,149,278 | 1,180,128 | 1,156,974 | 1,180,128 | ||||||||||||
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PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Nine Months Ended September 30, 2016 and 2015 |
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| Accumulated | |||||||||||||||||||||||||||||||
| Additional | Other | Total | |||||||||||||||||||||||||||||
| Common Stock | Paid-in | Treasury | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||||||||
| Shares | Amount | Capital | Stock | Earnings | Income | Equity | |||||||||||||||||||||||||
| Balance December 31, 2014 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (8,380,575 | ) | $ | 22,938,150 | $ | 1,247,166 | $ | 24,746,687 | |||||||||||||||||
| Net income | - | - | - | 1,731,717 | - | 1,731,717 | |||||||||||||||||||||||||
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Cash dividends declared
($.33 per share) |
- | - | - | - | (389,442 | ) | - | (389,442 | ) | ||||||||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | (378,178 | ) | (378,178 | ) | ||||||||||||||||||||||
| Balance September 30, 2015 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (8,380,575 | ) | $ | 24,280,245 | $ | 869,009 | $ | 25,710,805 | |||||||||||||||||
| Accumulated | |||||||||||||||||||||||||||||||
| Additional | Other | Total | |||||||||||||||||||||||||||||
| Common Stock | Paid-in | Treasury | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||||||||
| Shares | Amount | Capital | Stock | Earnings | Income | Equity | |||||||||||||||||||||||||
| Balance December 31, 2015 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (8,532,831 | ) | $ | 24,640,492 | $ | 788,330 | $ | 25,837,937 | |||||||||||||||||
| Net income | - | - | - | 1,772,307 | - | 1,772,307 | |||||||||||||||||||||||||
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Cash dividends declared
($.33 per share) |
- | - | - | - | (380,923 | ) | - | (380,923 | ) | ||||||||||||||||||||||
| Purchase of treasury stock | - | - | - | (472,045 | ) | - | - | (472,045 | ) | ||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | 1,168,955 | 1,168,955 | ||||||||||||||||||||||||
| Balance September 30, 2016 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (9,004,876 | ) | $ | 26,031,876 | $ | 1,957,285 | $ | 27,926,231 | |||||||||||||||||
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PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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| For the Nine Months Ended | ||||||||||
| September 30, | ||||||||||
| 2016 | 2015 | |||||||||
| OPERATING ACTIVITIES: | ||||||||||
| Net income | $ | 1,772,307 | $ | 1,731,717 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation | 281,764 | 286,563 | ||||||||
| Provision for loan losses | - | - | ||||||||
| Net investment amortization expense | 367,276 | 424,568 | ||||||||
| Bank owned life insurance | (273,945 | ) | (272,589 | ) | ||||||
| Gain on sale of securities available for sale | (191,546 | ) | (108,102 | ) | ||||||
| Loss on sale of or write-down of real estate owned | 4,167 | 17,098 | ||||||||
| Gain on sale of premises and equipment | - | (12,700 | ) | |||||||
| Decrease in accrued interest receivable | 83,014 | 6,179 | ||||||||
| Decrease in accrued interest payable | (19,321 | ) | (781 | ) | ||||||
| Net other operating activities | 71,580 | (30,403 | ) | |||||||
| Net cash provided by operating activities | 2,095,296 | 2,041,550 | ||||||||
| INVESTING ACTIVITIES: | ||||||||||
| Net increase in loans | (5,251,728 | ) | (4,808,303 | ) | ||||||
| Net increase in interest bearing deposits in other banks | (5,867,048 | ) | (1,021,986 | ) | ||||||
| Purchase of securities available for sale | (13,723,206 | ) | (18,850,032 | ) | ||||||
| Proceeds from sale of securities available for sale | 7,867,285 | 2,853,343 | ||||||||
| Proceeds from maturing, sale and payments received on securities available for sale | 12,277,179 | 11,781,742 | ||||||||
| Net (purchase) redemption of restricted equity securities | 212,000 | (388,700 | ) | |||||||
| Purchase of premises and equipment | (162,528 | ) | (138,645 | ) | ||||||
| Proceeds from premises and equipment | - | 12,700 | ||||||||
| Proceeds from sales of real estate owned | 64,017 | 103,175 | ||||||||
| Net cash used in investing activities | (4,584,029 | ) | (10,456,706 | ) | ||||||
| FINANCING ACTIVITIES: | ||||||||||
| Net increase in deposits | 8,286,034 | (2,609,542 | ) | |||||||
| Net increase (decrease) in other borrowings | (5,000,000 | ) | 11,500,000 | |||||||
| Purchase of treasury stock | (472,045 | ) | - | |||||||
| Payments of cash dividends | (380,923 | ) | (389,442 | ) | ||||||
| Net cash provided by financing activities | 2,433,066 | 8,501,016 | ||||||||
| Net increase (decrease) in cash and cash equivalents | (55,667 | ) | 85,860 | |||||||
| Cash and cash equivalents at beginning of period | 1,718,147 | 1,430,862 | ||||||||
| Cash and cash equivalents at end of period | $ | 1,662,480 | $ | 1,516,722 | ||||||
| SUPPLEMENTAL DISCLOSURES: | ||||||||||
| Cash paid during the period for: | ||||||||||
| Interest | $ | 435,286 | $ | 425,961 | ||||||
| Taxes | $ | 442,134 | $ | 426,869 | ||||||
| OTHER NONCASH TRANSACTIONS | ||||||||||
| Real estate acquired through foreclosure | $ | 0 | $ | 100,221 | ||||||
| Internally financed sales of other real estate owned | $ | 0 | $ | 0 | ||||||