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Pinnacle Bank

Pinnacle Bank Announces Earnings for First Quarter of 2025

GILROY, Calif.--(BUSINESS WIRE)--Apr. 24, 2025-- OTCQB: PBNK - Pinnacle Bank, headquartered in Gilroy, California, announced today unaudited net income for the three months ended March 31, 2025 of $1,914,000, compared to net income of $2,453,000 for the same period in 2024.

As of March 31, 2025, total assets were $892.5 million, a 7% increase from $833.1 million on March 31, 2024.

Gross loans were $576.6 million on March 31, 2025 compared to $576.8 million on March 31, 2024. The allowance for credit losses on March 31, 2024 was $7.068 million or 1.23% of net loans compared to $6.225 million or 1.09% of net loans on March 31, 2024. Nonperforming assets net of government guarantees were $9.6 million on March 31, 2025. There were no nonperforming assets on March 31, 2024.

Total deposits on March 31, 2024 were $775.0 million, a 7% increase from $727.4 million on March 31, 2024 and a 6% increase from $732.2 million at December 31, 2024.

“Our communities are showing resilience as they adapt to the challenges brought on by inflation and economic uncertainty. The deposit growth in the first quarter is a sign of the underlying strength in our markets and the importance of our strong relationships. The effect of the Federal Reserve’s decision to reduce interest rates by a total of 1% during 2024 is reflected in our Q1 interest income which impacted our operating results,” stated Jeffrey Payne, President and CEO. “We are honored to contribute to the success of our communities by providing premier business banking from Salinas Valley to Silicon Valley. We appreciate the ongoing efforts of our outstanding team of professional bankers, committed directors and advisors and our many loyal clients that contribute to our ongoing success and continued momentum.

The Bank’s capital position remains above regulatory guidelines for well capitalized banks. On March 31, 2025, the Bank had a total capital ratio of 17.20%. Book value per share on March 31, 2025 was $17.16.

Pinnacle Bank is rated by Bauer Financial as Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm. DepositAccounts.com awarded Pinnacle Bank an A rating. The Findley Reports named Pinnacle Bank a 2023 Super Premier performing bank.

For more information, please go to www.pinnacle.bank and click on Investor Relations and March 2025 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 businesses and nonprofit organizations, 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, Salinas and Campbell. For more information, please go to www.pinnacle.bank and click on Investor Relations.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Summary Balance Sheet

 

 

 

 

 

 

 

Year over year change

(Unaudited, dollars in thousands)

 

3/31/2025

 

12/31/2024

 

3/31/2024

 

$

 

%

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

892,522

 

 

$

846,848

 

 

$

833,081

 

 

$

59,441

 

 

7

%

Gross loans

 

$

576,580

 

 

$

600,637

 

 

$

576,784

 

 

$

(204

)

 

0

%

Allowance for loan losses

 

$

(7,068

)

 

$

(7,352

)

 

$

(6,225

)

 

$

(843

)

 

14

%

Non-interest bearing deposits

 

$

252,240

 

 

$

248,677

 

 

$

248,792

 

 

$

3,448

 

 

1

%

Interest-bearing deposits

 

$

522,732

 

 

$

483,555

 

 

$

478,599

 

 

$

44,133

 

 

9

%

Total deposits

 

$

774,972

 

 

$

732,232

 

 

$

727,391

 

 

$

47,581

 

 

7

%

Shareholders' equity

 

$

101,500

 

 

$

98,975

 

 

$

91,245

 

 

$

10,255

 

 

11

%

Summary Income Statement

 

 

 

 

 

 

(Unaudited, dollars in thousands

Quarter ended

 

Quarter ended

 

 

Change

Quarter ended

 

Change

except per share data)

3/31/2025

 

12/31/2024

 

 

%

3/31/2024

 

%

Interest income

$

12,048

$

12,924

 

 

-7

%

$

12,823

-6

%

Interest expense

 

3,328

 

 

3,503

 

 

-5

%

 

3,190

 

4

%

Net interest income

 

8,720

 

 

9,421

 

 

-7

%

 

9,633

 

-9

%

Provision for loan losses

 

0

 

 

(21

)

 

-100

%

 

306

 

-100

%

Non-interest income

 

406

 

 

489

 

 

-17

%

 

529

 

-23

%

Non-interest expense

 

6,582

 

 

5,227

 

 

26

%

 

6,451

 

2

%

Income tax expense

 

630

 

 

1,283

 

 

-51

%

 

952

 

-34

%

Net income (loss)

$

1,914

 

$

3,421

 

 

-44

%

$

2,453

 

-22

%

 

 

 

 

 

 

 

Basic Earnings per share

$

0.32

 

$

0.58

 

 

-45

%

$

0.42

 

-24

%

Diluted Earnings per share

$

0.32

 

$

0.58

 

 

-45

%

$

0.42

 

-24

%

Book value per share

$

17.16

 

$

16.87

 

 

2

%

$

15.64

 

10

%

Shares outstanding at period end

 

5,915,616

 

 

5,865,666

 

 

1

%

 

5,833,976

 

1

%

 

 

 

 

Minimum

 

 

 

 

required to be

Capital Ratios

3/31/2025

12/31/2024

3/31/2024

well-capitalized

Tier 1 leverage ratio

11.94%

11.41%

11.27%

5.00%

Common Equity Tier 1 capital ratio

16.09%

15.22%

14.06%

6.50%

Tier 1 capital ratio

16.09%

15.22%

14.06%

8.00%

Total capital ratio

17.20%

16.34%

15.01%

10.00%

 

Media Contact:
Pinnacle Bank
Jeffrey D. Payne, President & CEO
408-762-7146

Source: Pinnacle Bank