Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2015

JASPER, Ala.--()--Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle’s second quarter results of operations.

  • For the three months ended June 30, 2015, Pinnacle reported net income of $617,000 compared to $550,000 for the three months ended June 30, 2014.
  • For the six months ended June 30, 2015, Pinnacle reported net income of $1,154,000 compared to $1,014,000 for the six months ended June 30, 2014.
  • Net interest income after the provision for loan losses for the three and six months ended June 30, 2015, was $1,811,000 and $3,610,000, respectively, compared with $1,721,000 and $3,422,000 respectively, in the same periods last year.
  • Basic and diluted earnings per share for the three and six months ended June 30, 2015 were $0.52 and $0.98 per share, respectively, compared to $0.46 and $0.84 per share, respectively, for the same periods last year.
  • For the three and six months ended June 30, 2015, return on average assets was 1.07%, and 1.01%, respectively, compared to 0.99% and 0.91%, respectively, in the comparable 2014 period.

Included in net income for the three and six months ended June 30, 2015 and June 30, 2014 are gains on sale of securities available for sale of approximately $108,000 and $69,000, respectively.

Pinnacle’s net interest margin was 3.40% and 3.41% for the three and six months ended June 30, 2015, respectively, compared to 3.32% and 3.34% for the three and six months ended June 30, 2014, respectively.

At June 30, 2015, Pinnacle’s allowance for loan losses as a percent of total loans was 1.68%, compared to 1.87% at December 31, 2014. Nonperforming loans as a percentage of total loans was .34% as of June 30, 2015 as compared to .93% as of December 31, 2014. At June 30, 2015, the allowance for loan losses as a percent of nonperforming loans was 498.31%, compared to 202.05% at December 31, 2014.

Dividends of $.11 and $.22 per share were paid to shareholders during the three and six months ended for both June 30, 2015, and 2014.

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.

 
 
 
 
 

PINNACLE BANCSHARES, INC.
Unaudited Financial Highlights
(In Thousands, except share and per share data)

 
      Three Months Ended June 30,
2015     2014
Net income $ 617,000 $ 550,000
Basic and diluted earnings per share $ 0.52 $ 0.46
 
Performance ratios (annualized):
Return on average assets 1.07 % 0.99 %
Return on average equity 10.50 % 9.21 %
Interest rate spread 3.39 % 3.31 %
Net interest margin 3.40 % 3.32 %
Operating cost to assets 2.60 % 2.62 %
 
Weighted average basic and diluted shares outstanding 1,180,128 1,205,128
Dividends per share $ 0.11 $ 0.11
Provision for loan losses $ - $ -
 
 
Six Months Ended June 30,
2015 2014
Net income $ 1,154,000 $ 1,014,000
Basic and diluted earnings per share $ 0.98 $ 0.84
 
Performance ratios (annualized):
Return on average assets 1.01 % 0.91 %
Return on average equity 10.49 % 8.67 %
Interest rate spread 3.40 % 3.33 %
Net interest margin 3.41 % 3.34 %
Operating cost to assets 2.64 % 2.70 %
 
Weighted average basic and diluted shares outstanding 1,180,128 1,205,128
Dividends per share $ 0.22 $ 0.22
Provision for loan losses $ - $ 35,000
 
 

(Audited)

June 30, 2015 December 31, 2014
Total assets $ 230,451,000 $ 219,031,000
Loans receivable, net $ 87,590,000 $ 82,684,000
Deposits $ 192,390,000 $ 190,197,000
Other borrowings $ 10,000,000 $ -
Total stockholders’ equity $ 24,732,000 $ 24,747,000
Weighted average book value per share $ 20.96 $ 20.61
Stockholders’ equity to assets ratio 10.73 % 11.30 %
 
Asset quality ratios:
Nonperforming loans as a percent of total loans .34 % .93 %
Nonperforming assets as a percent of total loans .54 % 1.10 %
Allowance for loan losses as a percent of total loans 1.68 % 1.87 %
Allowance for loan losses as a percent of nonperforming loans 498.31 % 202.05 %
 
 
 
 
 

 

FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 
      (Unaudited)    
June 30, December 31,
2015 2014
 

Assets

Cash and cash equivalents $ 1,749,417 $ 1,430,862
Interest bearing deposits in banks 2,408,513 1,462,440
Securities available for sale 121,930,041 117,159,151
Restricted equity securities 1,147,100 822,200
 
Loans 89,064,825 84,259,997
Less Allowance for loan losses   1,474,623     1,575,914  
Loans, net   87,590,202     82,684,083  
 
Other real estate owned 173,916 96,905
Premises and equipment, net 5,336,490 5,487,393
Goodwill 306,488 306,488
Bank owned life insurance 8,340,428 8,158,702
Accrued interest receivable 1,152,178 1,075,469
Other assets   316,716     346,874  
Total assets $ 230,451,489   $ 219,030,567  
 

Liabilities and Stockholders’ Equity

Deposits
Noninterest-bearing $ 49,396,754 $ 43,668,702
Interest-bearing   142,993,523     146,528,707  
Total deposits 192,390,277 190,197,409
 
Other borrowings 10,000,000 -
Subordinated debentures 3,093,000 3,093,000
Accrued interest payable 106,192 93,062
Other liabilities   130,086     900,409  
Total liabilities   205,719,555     194,283,880  
 
Stockholders’ equity
Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 1,180,128 outstanding 18,723 18,723
Additional paid-in capital 8,923,223 8,923,223
Treasury stock (692,185 shares) (8,380,575 ) (8,380,575 )
Retained earnings 23,832,291 22,938,150
Accumulated other comprehensive income, net of tax   338,272     1,247,166  
 
Total stockholders’ equity   24,731,934     24,746,687  
 
Total liabilities and stockholders’ equity $ 230,451,489   $ 219,030,567  
 
 
 
 
 
 

PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 
      Three Months Ended     Six Months Ended
June 30, June 30,
2015     2014 2015     2014
Interest income
Loans, including fees $ 1,126,580 $ 1,108,372 $ 2,250,235 $ 2,232,765
Securities available for sale 818,512 754,348 1,630,038 1,511,406
Other interest   8,550   5,917   13,404   10,565  
Total interest income   1,953,642   1,868,637   3,893,677   3,754,736  
 
Interest expense
Deposits 111,940 121,551 223,622 244,694
Borrowings and repurchase agreements 5,051 455 8,929 2,560
Subordinated debentures   25,250   25,500   50,750   50,449  
Total interest expense   142,241   147,506   283,301   297,703  
 
Net interest income 1,811,401 1,721,131 3,610,376 3,457,033
Provision for loan losses   -   -   -   35,000  

Net interest income after provision for loan losses

  1,811,401   1,721,131   3,610,376   3,422,033  
 
Other income
Fees and service charges on deposit accounts 237,298 261,090 472,251 515,927
Service fee income, net 5,178 6,636 10,711 14,402
Bank owned life insurance 90,863 87,273 181,726 174,545
Mortgage fee income 9,471 6,866 12,382 27,914
Net gain on securities available for sale   108,102   68,759   108,102   68,759  
Total other income   450,912   430,624   797,872   801,547  
 
Other expense:
Salaries and employee benefits 768,934 705,868 1,557,752 1,453,514
Occupancy expense 241,060 235,675 490,178 494,126
Marketing and professional expense 78,521 106,382 153,081 208,829
Net (gain) loss on sale of real estate owned 182 14,188 4,472 (3,173 )
Other operating expenses   414,722   414,818   815,209   850,139  
Total other expenses   1,503,419   1,476,931   3,020,692   3,003,435  
 
Income before income taxes 758,894 674,824 1,387,556 1,220,145
 
Income tax expense   142,367   124,847   233,787   206,414  
 
Net income $ 616,527 $ 549,977 $ 1,153,769 $ 1,013,731  
 
Cash dividend per share $ 0.11 $ 0.11 $ 0.22 $ 0.22  
 
Basic and diluted earnings per share $ 0.52 $ 0.46 $ 0.98 $ 0.84  
 

Weighted –average basic and diluted shares outstanding

  1,180,128   1,205,128   1,180,128   1,205,128  
 
 
 
 
 
 

PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Six Months Ended June 30, 2015 and 2014

 
                    Accumulated    
Other
Additional Comprehensive Total
Common Stock Paid-in Treasury Retained Income Stockholders’
Shares     Amount Capital Stock (Loss) (Loss) Equity
Balance December 31, 2013 1,872,313 $ 18,723 $ 8,923,223 $ (7,974,814 ) $ 21,438,680 $ (517,010 ) $ 21,888,802
Net income - - - 1,013,731 - 1,013,731
Cash dividends declared

($.22 per share)

- - - - (265,129 ) - (265,129 )
Other comprehensive income -   -   -   -     -     1,358,433     1,358,433  
Balance June 30, 2014 1,872,313 $ 18,723 $ 8,923,223 $ (7,974,814 ) $ 22,187,282   $ 841,423   $ 23,995,837  
 
 
Accumulated
Additional Other Total
Common Stock Paid-in Treasury Retained Comprehensive Stockholders’
Shares Amount Capital Stock (Loss) 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 - - - 1,153,769 - 1,153,769
Cash dividends declared

($.22 per share)

- - - - (259,628 ) - (259,628 )
Other comprehensive loss -   -   -   -     -     (908,894 )   (908,894 )
Balance June 30, 2015 1,872,313 $ 18,723 $ 8,923,223 $ (8,380,575 ) $ 23,832,291   $ 338,272   $ 24,731,934  
 
 
 
 
 
 

PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 
      For the Six Months Ended
June 30,
2015     2014
OPERATING ACTIVITIES:
Net income $ 1,153,769 $ 1,013,731
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 193,121 208,934
Provision for loan losses - 35,000
Net investment amortization expense 280,117 227,145
Bank owned life insurance (181,726 ) (174,544 )
Gain on sale of securities available for sale (108,102 ) (68,759 )
(Gain) loss on sale of or write-down of real estate owned 4,472 (3,173 )
Gain on sale of premises and equipment (12,700 ) -
Increase in accrued interest receivable (76,609 ) (50,264 )
Increase in accrued interest payable 13,130 12,100
Net other operating activities   (183,101 )   (210,564 )
Net cash provided by operating activities   1,082,271     989,606  
 
INVESTING ACTIVITIES:
Net loan repayments 5,006,330 4,014,998
Net increase in interest bearing deposits in other banks (946,073 ) (5,037,895 )
Purchase of securities available for sale (16,810,262 ) (13,605,882 )
Proceeds from sale of securities available for sale 2,853,343 1,925,000
Proceeds from maturing, sale and payments received on securities available for sale 7,548,056 8,567,933
Net (purchase) redemption of restricted equity securities (324,900 ) 128,200
Purchase of premises and equipment (42,218 ) (158,085 )
Proceeds from premises and equipment 12,700 -
Proceeds from sales of real estate owned   18,728     44,605  
Net cash used in investing activities   (12,696,956 )   (4,121,126 )
 
FINANCING ACTIVITIES:
Net increase in deposits 2,192,868 8,794,403
Decrease in repurchase agreements - (1,722,233 )
Net increase (decrease) in other borrowings 10,000,000 (3,900,000 )
Payments of cash dividends   (259,628 )   (265,129 )
Net cash provided by financing activities   11,933,240     2,907,041  
 
Net increase (decrease) in cash and cash equivalents 318,555 (224,479 )
 
Cash and cash equivalents at beginning of period   1,430,862     1,641,460  
 
Cash and cash equivalents at end of period $ 1,749,417   $ 1,416,981  
 
SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
Interest $ 270,171 $ 285,603
Taxes $ 319,624 $ 232,540
 
OTHER NONCASH TRANSACTIONS
Real estate acquired through foreclosure $ 100,221 $ 0
Internally financed sales of other real estate owned $ 0 $ 77,880
 
 
 
 

Contacts

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

Contacts

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