Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2024
-
For the three months ended
March 31, 2024 , Pinnacle’s basic/diluted earnings per share was$1.06 as compared to$1.30 per share for the three months endedMarch 31, 2023 and$1.08 per share for the three months endedDecember 31, 2023 . Net income for the three months endedMarch 31, 2024 was$964,000 as compared to$1,180,000 for the three months endedMarch 31, 2023 and$981,000 for the three months endedDecember 31, 2023 . -
For the three months ended
March 31, 2024 , return on average assets was 1.14%, compared to 1.43% for the three months endedMarch 31, 2023 and 1.18% for the three months endedDecember 31, 2023 .
The Company’s net interest margin was 3.11% for the three months
At
Pinnacle Bank was classified as “well capitalized” at
Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at
The Company’s total deposits at
Dividends of
Effects of Inflation
Inflation caused a substantial rise in interest rates during 2023 and 2022 which has had a negative effect in the securities market. As a result of rising interest rates, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately
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. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding.
|
|||||||
AND SUBSIDIARY |
|||||||
UNAUDITED FINANCIAL HIGHLIGHTS |
|||||||
|
Three Months Ended |
||||||
|
2024 |
|
|
2023 |
|
||
Net Income |
$ |
964,000 |
|
|
$ |
1,180,000 |
|
Weighted average basic shares outstanding |
|
909,534 |
|
|
|
909,534 |
|
Weighted average diluted shares outstanding |
|
909,534 |
|
|
|
909,534 |
|
Dividend per share |
$ |
.27 |
|
|
$ |
.27 |
|
Provision for loan losses |
$ |
- |
|
|
$ |
- |
|
Basic and diluted earnings per share |
$ |
1.06 |
|
|
$ |
1.30 |
|
Performance Ratios: (annualized) |
|
|
|
|
|
||
Return on average assets |
|
1.14 |
% |
|
|
1.43 |
% |
Return on average equity |
|
9.85 |
% |
|
|
13.17 |
% |
Interest rate spread |
|
2.58 |
% |
|
|
3.40 |
% |
Net interest margin |
|
3.11 |
% |
|
|
3.56 |
% |
Operating cost to assets |
|
2.36 |
% |
|
|
2.40 |
% |
|
|
|
|
|
|
||
|
|
|
|
(Audited) |
|||
|
|
|
|
||||
Total assets |
$ |
339,346,000 |
|
|
$ |
342,578,000 |
|
Loans receivable, net |
$ |
119,774,000 |
|
|
$ |
122,973,000 |
|
Deposits |
$ |
309,164,000 |
|
|
$ |
311,339,000 |
|
Brokered CD’s included in deposits |
$ |
11,907,000 |
|
|
$ |
11,907,000 |
|
Total stockholders’ equity |
$ |
12,126,000 |
|
|
$ |
12,787,000 |
|
Weighted average book value per share (excluding OCI) |
$ |
43.81 |
|
|
$ |
43.02 |
|
Total average stockholders' equity to asset ratio (excluding OCI) |
|
11.54 |
% |
|
|
11.25 |
% |
Asset Quality Ratios: |
|
|
|
|
|
||
Nonperforming loans as a percent of total loans |
|
.00 |
% |
|
|
.00 |
% |
Nonperforming assets as a percent of total loans |
|
.00 |
% |
|
|
.00 |
% |
Allowance for loan losses as a percent of total loans |
|
2.02 |
% |
|
|
1.96 |
% |
|
||||||
AND SUBSIDIARY |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION |
||||||
|
(Unaudited) |
|
(Audited) |
|||
|
|
|
|
|||
|
2024 |
|
2023 |
|||
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,978,413 |
|
$ |
2,190,793 |
|
Interest bearing deposits in banks |
|
22,825,755 |
|
|
19,518,942 |
|
Securities available for sale |
|
162,136,170 |
|
|
165,520,025 |
|
Restricted equity securities |
|
843,100 |
|
|
836,200 |
|
|
|
|
|
|
|
|
Loans |
|
122,199,276 |
|
|
125,433,112 |
|
Less allowance for loan losses |
|
2,425,315 |
|
|
2,459,372 |
|
Loans, net |
|
119,773,961 |
|
|
122,973,740 |
|
|
|
|
|
|
|
|
Premises and equipment, net |
|
8,486,996 |
|
|
8,421,289 |
|
Operating right-of-use lease assets |
|
291,700 |
|
|
302,171 |
|
|
|
306,488 |
|
|
306,488 |
|
Bank owned life insurance |
|
10,705,511 |
|
|
10,601,839 |
|
Accrued interest receivable |
|
1,532,754 |
|
|
2,107,189 |
|
Deferred tax assets, net |
|
9,584,001 |
|
|
8,951,799 |
|
Other assets |
|
881,605 |
|
|
847,912 |
|
|
|
|
|
|
|
|
Total assets |
$ |
339,346,454 |
|
$ |
342,578,387 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
$ |
90,107,848 |
|
$ |
89,518,619 |
|
Interest-bearing |
|
219,056,319 |
|
|
221,820,527 |
|
Total deposits |
|
309,164,167 |
|
|
311,339,146 |
|
|
|
|
|
|
|
|
Subordinated debentures |
|
3,093,000 |
|
|
3,093,000 |
|
Other borrowings |
|
12,500,000 |
|
|
12,500,000 |
|
Accrued interest payable |
|
864,537 |
|
|
1,392,273 |
|
Operating lease liabilities |
|
291,700 |
|
|
302,171 |
|
Other liabilities |
|
1,307,084 |
|
|
1,165,256 |
|
Total liabilities |
|
327,220,488 |
|
|
329,791,846 |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Common stock, |
|
|
|
|
|
|
1,872,313 shares issued; 909,534 shares outstanding |
|
18,723 |
|
|
18,723 |
|
Additional paid-in capital |
|
8,923,223 |
|
|
8,923,223 |
|
|
|
(15,588,799) |
|
|
(15,588,799) |
|
Retained earnings |
|
46,490,252 |
|
|
45,772,256 |
|
Accumulated other comprehensive loss, net of tax |
|
(27,717,433) |
|
|
(26,338,862) |
|
Total stockholders’ equity |
|
12,125,966 |
|
|
12,786,541 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
339,346,454 |
|
$ |
342,578,387 |
|
|
|||||
AND SUBSIDIARY |
|||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||
Three Months Ended |
|||||
|
2024 |
|
2023 |
||
Interest income |
|
|
|
|
|
Loans, including fees |
$ |
2,026,371 |
|
$ |
1,730,118 |
Taxable securities |
|
1,296,269 |
|
|
1,368,748 |
Nontaxable securities |
|
40,019 |
|
|
43,741 |
Other interest |
|
308,824 |
|
|
143,856 |
Total interest income |
|
3,671,483 |
|
|
3,286,463 |
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
Deposits |
|
760,947 |
|
|
227,051 |
Subordinated debentures |
|
39,050 |
|
|
39,050 |
Other borrowings |
|
178,803 |
|
|
2,209 |
Total interest expense |
|
978,800 |
|
|
268,310 |
|
|
|
|
|
|
Net interest income |
|
2,962,683 |
|
|
3,018,153 |
Provision for loan losses |
|
- |
|
|
- |
Net interest income after provision for loan losses |
|
2,962,683 |
|
|
3,018,153 |
|
|
|
|
|
|
Other income |
|
|
|
|
|
Fees and service charges on deposit accounts |
|
424,843 |
|
|
362,295 |
Servicing fee income, net |
|
743 |
|
|
771 |
Bank owned life insurance |
|
103,672 |
|
|
98,806 |
Mortgage fee income |
|
2,131 |
|
|
5,703 |
Total other income |
|
531,389 |
|
|
467,575 |
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
Salaries and employee benefits |
|
1,137,415 |
|
|
1,135,798 |
Occupancy expenses |
|
312,671 |
|
|
240,161 |
Marketing and professional expenses |
|
74,863 |
|
|
68,819 |
Other operating expenses |
|
479,823 |
|
|
542,672 |
Total other expenses |
|
2,004,772 |
|
|
1,987,450 |
|
|
|
|
|
|
Income before income taxes |
|
1,219,300 |
|
|
1,498,278 |
|
|
|
|
|
|
Income tax expense |
|
255,730 |
|
|
318,105 |
|
|
|
|
|
|
Net income |
$ |
963,570 |
|
$ |
1,180,173 |
|
|
|
|
|
|
Basic and diluted earnings per share |
$ |
1.06 |
|
$ |
1.30 |
|
|
|
|
|
|
Cash dividends per share |
$ |
0.27 |
|
$ |
0.27 |
Weighted-average basic and diluted shares outstanding |
|
909,534 |
|
|
909,534 |
|
|||||||||||||||||||
AND SUBSIDIARY |
|||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |
|||||||||||||||||||
Three Months Ended |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
||||||||
|
|
|
|
Additional |
|
|
|
|
Other |
Total |
|||||||||
|
Common Stock |
Paid-in |
|
Retained |
Comprehensive |
Stockholders’ |
|||||||||||||
|
Shares |
Par Value |
Capital |
Stock |
Earnings |
Loss |
Equity |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, |
1,872,313 |
$ |
18,723 |
$ |
8,923,223 |
$ |
(15,588,799) |
$ |
42,274,372 |
$ |
(29,889,603) |
$ |
5,737,916 |
||||||
Net income |
- |
|
- |
|
- |
|
- |
|
1,180,173 |
|
- |
|
1,180,173 |
||||||
Cash dividends declared, |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
- |
|
- |
|
- |
|
- |
|
(245,574) |
|
- |
|
(245,574) |
||||||
Other comprehensive income |
- |
|
- |
|
- |
|
- |
|
- |
|
2,594,039 |
|
2,594,039 |
||||||
Balance, |
1,872,313 |
$ |
18,723 |
$ |
8,923,223 |
$ |
(15,588,799) |
$ |
43,208,971 |
$ |
(27,295,564) |
$ |
9,266,554 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, |
1,872,313 |
$ |
18,723 |
$ |
8,923,223 |
$ |
(15,588,799) |
$ |
45,772,256 |
$ |
(26,338,862) |
$ |
12,786,541 |
||||||
Net income |
- |
|
- |
|
- |
|
- |
|
963,570 |
|
- |
|
963,570 |
||||||
Cash dividends declared, |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
- |
|
- |
|
- |
|
- |
|
(245,574) |
|
- |
|
(245,574) |
||||||
Other comprehensive loss |
- |
|
- |
|
- |
|
- |
|
- |
|
(1,378,571) |
|
(1,378,571) |
||||||
Balance, |
1,872,313 |
$ |
18,723 |
$ |
8,923,223 |
$ |
(15,588,799) |
$ |
46,490,252 |
$ |
(27,717,433) |
$ |
12,125,966 |
|
|||||
AND SUBSIDIARY |
|||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
Three Months Ended |
|||||
|
2024 |
|
2023 |
||
OPERATING ACTIVITIES |
|
|
|
|
|
Net income |
$ |
963,570 |
|
$ |
1,180,173 |
Adjustments to reconcile net income to net cash |
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
Depreciation |
|
128,826 |
|
|
99,981 |
Net amortization of securities |
|
50,376 |
|
|
41,914 |
Bank owned life insurance |
|
(103,672) |
|
|
(98,806) |
Decrease in accrued interest receivable |
|
574,435 |
|
|
533,436 |
Increase (decrease) in accrued interest payable |
|
(527,736) |
|
|
49,634 |
Net other operating activities |
|
31,716 |
|
|
86,332 |
Net cash provided by operating activities |
|
1,117,515 |
|
|
1,892,664 |
INVESTING ACTIVITIES |
|
|
|
|
|
Net (increase) decrease in loans |
|
3,199,779 |
|
|
(1,290,780) |
Net increase in interest-bearing deposits in banks |
|
(3,306,813) |
|
|
(31,166) |
Proceeds from maturing or callable securities available for sale |
|
1,399,125 |
|
|
2,473,516 |
Net (purchase) redemption of restricted equity securities |
|
(6,900) |
|
|
3,800 |
Purchase of premises and equipment |
|
(194,533) |
|
|
(518,500) |
Net cash provided by investing activities |
|
1,090,658 |
|
|
636,870 |
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
Net decrease in deposits |
|
(2,174,979) |
|
|
(5,640,004) |
Net increase in other borrowings |
|
- |
|
|
3,600,000 |
Payment of cash dividends |
|
(245,574) |
|
|
(245,574) |
Net cash used in financing activities |
|
(2,420,553) |
|
|
(2,285,578) |
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
(212,380) |
|
|
243,956 |
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
2,190,793 |
|
|
1,742,938 |
|
|
|
|
|
|
Cash and cash equivalents at end of year |
$ |
1,978,413 |
|
$ |
1,986,894 |
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE |
|
|
|
|
|
Cash paid during the year for: |
|
|
|
|
|
Interest |
$ |
1,506,536 |
|
$ |
218,676 |
Taxes |
$ |
- |
|
$ |
- |
OTHER NONCASH TRANSACTIONS |
|
|
|
|
|
Real estate acquired through foreclosure |
$ |
- |
|
$ |
- |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423128258/en/
Chief Financial Officer
(205) 221-8866
Source: