JASPER, Ala.--(BUSINESS WIRE)--Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle’s results of operations for the fourth quarter and year ended December 31, 2017:
- For the three months ended December 31, 2017, Pinnacle reported net income of $597,000, compared to $512,000 for the three months ended December 31, 2016.
- Net interest income before the provision for loan losses for the three months ended December 31, 2017 was $1,819,000, compared with $1,791,000 in the same period last year.
- For the year ended December 31, 2017, net income was $2,296,000, compared with net income of $2,284,000 in the prior year.
- Net interest income before the provision for loan losses for the year ended December 31, 2017, was $7,258,000, compared with $7,060,000 in the prior year.
- For the three months ended December 31, 2017, basic and diluted earnings were each $0.57 per share. For the same period in 2016, basic and diluted earnings were each $0.45 per share.
- Basic and diluted earnings were each $2.20 per share for the year ended December 31, 2017. For 2016, basic and diluted earnings were each $1.99 per share.
The Company’s net interest margin was 3.63% and 3.55% for the three months and year ended December 31, 2017, respectively, compared to 3.54% and 3.46% for the three months and year ended December 31, 2016, respectively.
At December 31, 2017, Pinnacle’s allowance for loan losses as a percent of total loans was 1.68%, compared to 1.77% at December 31, 2016.
At December 31, 2017, the allowance for loan losses as a percent of nonperforming loans was 670.42%, compared to 471.72% at December 31, 2016. Net charge-offs were $10,000 in 2017, compared to net recoveries of $35,000 in the prior year. Nonperforming assets were $281,000 at December 31, 2017, compared to $344,000 at December 31, 2016. The ratio of nonperforming assets to total loans was .29% at December 31, 2017, compared to .38% at December 31, 2016.
Total deposits, excluding brokered certificate of deposits, increased 7.3% during 2017 as compared to 2.3% during 2016. Deposit transaction accounts (all deposits types except for certificate of deposits), increased 12.49% during 2017 as compared to 9.49% during 2016.
Pinnacle was classified as “well capitalized” at the end of 2017. At December 31, 2017, total risk-based capital was 19.39% for the subsidiary bank. Tier 1 risk-based capital and Tier 1 leverage capital ratios for the subsidiary bank were 18.28% and 12.04%, respectively. All capital ratios are significantly higher than the requirements for a well-capitalized institution.
Dividends of $.11 and $.44 per share were paid to shareholders during the three months and year ended for December 31, 2017, and 2016.
Despite the Company’s good financial performance during the last several years, Mr. Nolen cautioned investors that any negative changes to economic conditions could have an adverse effect on Pinnacle’s borrowers and their customers, which could adversely affect Pinnacle’s financial condition and results of operations.
Mr. Nolen stated: “Pinnacle continues to maintain strong regulatory capital. We are pleased with our net income and credit quality improvements which reflect the continued efforts of our Board and associates. We remain focused on our current strategies which are intended to provide superior services to customers in our market and enhance shareholder value. We also note that the current financial results during 2017 were minimally affected by the new tax law and that lower tax rates in future years should benefit the Company’s financial performance.”
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.
Pinnacle Bancshares, Inc.’s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama.
|PINNACLE BANCSHARES, INC|
|Unaudited Financial Highlights|
|Three Months Ended December 31,|
|Weighted average basic shares outstanding||1,043,505||1,128,583|
|Weighted average diluted shares outstanding||1,043,505||1,128,583|
|Dividend per share||$||0.11||$||0.11|
|Provision for loan losses||$||-||$||-|
|Basic earnings per share||$||0.57||$||.0.45|
|Diluted earnings per share||$||0.57||$||0.45|
|Performance Ratios: (annualized)|
|Return on average assets||1.09||%||0.93||%|
|Return on average equity||11.66||%||8.04||%|
|Interest rate spread||3.51||%||3.41||%|
|Net interest margin||3.63||%||3.54||%|
|Operating cost to assets||2.76||%||2.91||%|
|For the Year Ended At December 31,|
|Weighted average basic shares outstanding||1,043,505||1,148,326|
|Weighted average diluted shares outstanding||1,043,505||1,148,326|
|Dividend per share||$||0.44||$||0.44|
|Provision for loan losses||$||-||$||-|
|Basic earnings per share||$||2.20||$||1.99|
|Diluted earnings per share||$||2.20||$||1.99|
|Return on average assets||1.03||%||1.02||%|
|Return on average equity||11.16||%||8.95||%|
|Interest rate spread||3.43||%||3.34||%|
|Net interest margin||3.55||%||3.46||%|
|Operating cost to assets||2.69||%||2.72||%|
|At December 31,|
|Loans receivable, net||$||94,204,000||$||89,651,000|
|Brokered CD’s included in Deposits||$||-||$||
|Total stockholders' equity||$||26,013,000||$||23,758,000|
|Weighted average book value per share||$||24.93||$||20.69|
|Stockholders' average equity to asset ratio||11.16||%||11.44||%|
|Asset Quality Ratios:|
|Nonperforming loans as a percent of total loans||.29||%||.38||%|
|Nonperforming assets as a percent of total Loans||.29||%||.38||%|
|Allowance for loan losses as a percent of total loans||1.68||%||1.77||%|
Allowance for loan losses as a percent of nonperforming loans