JASPER, Ala.--(BUSINESS WIRE)--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, 2018, Pinnacle reported net income of $643,000 compared to $560,000 for the three months ended June 30, 2017. Pre-tax income for the three months ended June 30, 2018 increased 8.3% from the three months ended June 30, 2017.
- For the six months ended June 30, 2018, Pinnacle reported net income of $1,256,000 compared to $1,099,000 for the six months ended June 30, 2017. Pre-tax income for the three months ended June 30, 2018 increased 8.8% from the three months ended June 30, 2017.
- Net interest income after the provision for loan losses for the three and six months ended June 30, 2018, was $1,918,000 and $3,785,000, respectively, compared with $1,799,000 and $3,577,000 respectively, in the same periods last year.
- Basic and diluted earnings per share for the three and six months ended June 30, 2018 were $0.62 and $1.20 per share, respectively, compared to $0.54 and $1.05 per share, respectively, for the same periods last year. The basic and diluted earnings per share for the three and six months ended June 30, 2017 would have been $.00 and $.00, respectively, if the net-tax effect of the gain on sales were excluded from earnings.
- For the three and six months ended June 30, 2018, return on average assets was 1.15%, and 1.12%, respectively, compared to .99% and .98%, respectively, in the comparable 2017 period. The Bank’s effective income tax rate decline from approximately 23% to 16% as a result of the tax law change.
Pinnacle’s net interest margin was 3.74% and 3.67% for the three and six months ended June 30, 2018, respectively, compared to 3.45% and 3.46% for the three and six months ended June 30, 2017, respectively.
At June 30, 2018, Pinnacle’s allowance for loan losses as a percent of total loans was 1.55%, compared to 1.68% at December 31, 2017. At June 30, 2018, the allowance for loan losses as a percent of nonperforming loans was 406.30%, compared to 670.42% at December 31, 2017. Nonperforming assets were $397,000 at June 30, 2018, compared to $281,000 at December 31, 2017. The ratio of nonperforming assets to total loans was .38% at June 30, 2018, compared to .29% at December 31, 2017. In addition, all capital ratios are significantly higher than the requirements for a well-capitalized institution.
Dividends of $.11 and $.22 per share were paid to shareholders during the three and six months ended for both June 30, 2018, and 2017.
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. 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, | ||||||||
| 2018 | 2017 | |||||||
| Net income | $ | 643,000 | $ | 560,000 | ||||
| Basic and diluted earnings per share | $ | 0.62 | $ | 0.54 | ||||
| Performance ratios (annualized): | ||||||||
| Return on average assets | 1.15 | % | .99 | % | ||||
| Return on average equity | 9.45 | % | 9.09 | % | ||||
| Interest rate spread | 3.61 | % | 3.35 | % | ||||
| Net interest margin | 3.74 | % | 3.45 | % | ||||
| Operating cost to assets | 2.84 | % | 2.63 | % | ||||
| Weighted average basic and diluted shares outstanding | 1,043,505 | 1,043,505 | ||||||
| Dividends per share | $ | 0.11 | $ | 0.11 | ||||
| Provision for loan losses | $ | - | $ | - | ||||
| Six Months Ended June 30, | ||||||||
| 2018 | 2017 | |||||||
| Net income | $ | 1,256,000 | $ | 1,099,000 | ||||
| Basic and diluted earnings per share | $ | 1.20 | $ | 1.05 | ||||
| Performance ratios (annualized): | ||||||||
| Return on average assets | 1.12 | % | .98 | % | ||||
| Return on average equity | 9.44 | % | 9.00 | % | ||||
| Interest rate spread | 3.55 | % | 3.35 | % | ||||
| Net interest margin | 3.67 | % | 3.46 | % | ||||
| Operating cost to assets | 2.80 | % | 2.66 | % | ||||
| Weighted average basic and diluted shares outstanding | 1,043,505 | 1,043,505 | ||||||
| Dividends per share | $ | 0.22 | $ | 0.22 | ||||
| Provision for loan losses | $ | - | $ | - | ||||
| (Audited) | ||||||||
| June 30, 2018 | December 31, 2017 | |||||||
| Total assets | $ | 221,472,000 | $ | 217,836,000 | ||||
| Loans receivable, net | $ | 102,224,000 | $ | 94,204,000 | ||||
| Deposits | $ | 191,560,000 | $ | 186,327,000 | ||||
| Brokered CD’s included in deposits | $ | - | $ | - | ||||
| Other borrowings | $ | - | $ | 1,500,000 | ||||
| Total stockholders’ equity | $ | 25,939,000 | $ | 26,013,000 | ||||
| Book value per share | $ | 24.86 | $ | 24.93 | ||||
| Stockholders’ equity to assets ratio | 11.01 | % | 11.16 | % | ||||
| Asset quality ratios: | ||||||||
| Nonperforming loans as a percent of total loans | .38 | % | .29 | % | ||||
| Nonperforming assets as a percent of total loans | .38 | % | .29 | % | ||||
| Allowance for loan losses as a percent of total loans | 1.55 | % | 1.68 | % | ||||
| Allowance for loan losses as a percent of nonperforming loans | 406.30 | % | 670.42 | % | ||||
| FINANCIAL INFORMATION | ||||||||
| PINNACLE BANCSHARES, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| (Unaudited) | (Audited) | |||||||
| June 30, | December 31, | |||||||
| 2018 | 2018 | |||||||
|
Assets |
||||||||
| Cash and cash equivalents | $ | 1,790,307 | $ | 1,871,452 | ||||
| Interest bearing deposits in banks | 2,859,897 | 2,266,004 | ||||||
| Securities available for sale | 95,433,552 | 100,881,539 | ||||||
| Restricted equity securities | 763,500 | 805,500 | ||||||
| Loans | 103,837,762 | 95,812,552 | ||||||
| Less Allowance for loan losses | 1,613,305 | 1,608,804 | ||||||
| Loans, net | 102,224,457 | 94,203,748 | ||||||
| Premises and equipment, net | 6,351,161 | 6,236,854 | ||||||
| Goodwill | 306,488 | 306,488 | ||||||
| Bank owned life insurance | 9,387,351 | 9,220,161 | ||||||
| Accrued interest receivable | 1,190,238 | 1,228,374 | ||||||
| Other assets | 1,164,898 | 816,288 | ||||||
| Total assets | $ | 221,471,849 | $ | 217,836,408 | ||||
|
Liabilities and Stockholders’ Equity |
||||||||
| Deposits | ||||||||
| Noninterest-bearing | $ | 58,467,735 | $ | 55,154,929 | ||||
| Interest-bearing | 133,091,870 | 131,172,551 | ||||||
| Total deposits | 191,559,605 | 186,327,480 | ||||||
| Other borrowings | - | 1,500,000 | ||||||
| Federal funds purchased | - | 100,000 | ||||||
| Subordinated debentures | 3,093,000 | 3,093,000 | ||||||
| Accrued interest payable | 118,512 | 79,893 | ||||||
| Other liabilities | 761,477 | 722,887 | ||||||
| Total liabilities | 195,532,594 | 191,823,260 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 1,043,505 shares outstanding, respectively | 18,723 | 18,723 | ||||||
| Additional paid-in capital | 8,923,223 | 8,923,223 | ||||||
| Treasury stock (828,028 shares) | (11,464,104 | ) | (11,464,104 | ) | ||||
| Retained earnings | 29,233,449 | 28,206,925 | ||||||
|
Accumulated other comprehensive income (loss), net of tax |
(772,036 | ) | 328,381 | |||||
| Total stockholders’ equity | 25,939,255 | 26,013,148 | ||||||
| Total liabilities and stockholders’ equity | $ | 221,471,849 | $ | 218,836,408 | ||||
| PINNACLE BANCSHARES, INC. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||
| Interest income | ||||||||||||
| Loans, including fees | $ | 1,320,707 | $ | 1,137,065 | $ | 2,578,700 | $ | 2,258,019 | ||||
| Securities available for sale | 716,643 | 763,816 | 1,443,025 | 1,543,018 | ||||||||
| Other interest | 28,584 | 35,688 | 58,646 | 55,043 | ||||||||
| Total interest income | 2,065,934 | 1,936,569 | 4,080,371 | 3,856,080 | ||||||||
| Interest expense | ||||||||||||
| Deposits | 97,837 | 106,168 | 188,585 | 213,777 | ||||||||
| Borrowings and repurchase agreements | 10,523 | - | 76,300 | 2,883 | ||||||||
| Subordinated debentures | 39,800 | 31,000 | 30,055 | 61,800 | ||||||||
| Total interest expense | 148,160 | 137,168 | 294,940 | 278,460 | ||||||||
| Net interest income | 1,917,774 | 1,799,401 | 3,785,431 | 3,577,620 | ||||||||
| Provision for loan losses | - | - | - | - | ||||||||
|
Net interest income after provision for loan losses |
1,917,774 | 1,799,401 | 3,785,431 | 3,577,620 | ||||||||
| Other income | ||||||||||||
| Fees and service charges on deposit accounts | 339,069 | 309,336 | 667,112 | 611,322 | ||||||||
| Service fee income, net | 2,086 | 3,135 | 4,289 | 6,460 | ||||||||
| Bank owned life insurance | 83,595 | 83,186 | 167,190 | 166,372 | ||||||||
| Mortgage fee income | 10,305 | 5,528 | 15,304 | 5,228 | ||||||||
| Net gain on sale of real estate owned | 597 | - | 597 | - | ||||||||
| Net gain on securities available for sale | - | - | 1,689 | - | ||||||||
| Total other income | 435,652 | 401,185 | 856,181 | 789,382 | ||||||||
| Other expense: | ||||||||||||
| Salaries and employee benefits | 917,737 | 817,766 | 1,806,875 | 1,659,938 | ||||||||
| Occupancy expense | 218,110 | 238,117 | 441,966 | 459,632 | ||||||||
| Marketing and professional expense | 44,753 | 49,633 | 85,784 | 93,363 | ||||||||
| Other operating expenses | 402,537 | 383,683 | 802,931 | 771,751 | ||||||||
| Total other expenses | 1,583,137 | 1,489,199 | 3,137,556 | 2,984,684 | ||||||||
| Income before income taxes | 770,289 | 711,387 | 1,504,056 | 1,382,318 | ||||||||
| Income tax expense | 127,646 | 151,163 | 247,961 | 283,684 | ||||||||
| Net income | $ | 642,643 | $ | 560,224 | $ | 1,256,095 | $ | 1,098,634 | ||||
| Cash dividend per share | $ | 0.11 | $ | 0.11 | $ | 0.22 | $ | 0.22 | ||||
| Basic and diluted earnings per share | $ | 0.62 | $ | 0.54 | $ | 1.20 | $ | 1.05 | ||||
|
Weighted –average basic and diluted shares outstanding |
1,043,505 | 1,043,505 | 1,043,505 | 1,043,505 | ||||||||
| PINNACLE BANCSHARES, INC. | ||||||||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
| Six Months Ended June 30, 2018 and 2017 | ||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||
| Additional | Other | Total | ||||||||||||||||||||||
| Common Stock | Paid-in | Treasury | Retained | Comprehensive | Stockholders’ | |||||||||||||||||||
| Shares | Amount | Capital | Stock | Earnings | Income (Loss) | Equity | ||||||||||||||||||
| Balance December 31, 2016 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (11,464,104 | ) | $ | 26,417,216 | $ | (136,701 | ) | $ | 23,758,357 | |||||||||
| Net income | - | - | - | - | 1,098,634 | - | 1,098,634 | |||||||||||||||||
|
Cash dividends declared ($.22 per share) |
- | - | - | - | (229,572 | ) | - | (229,572 | ) | |||||||||||||||
| Other comprehensive income | - | - | - | - | - | 1,110,276 | 1,110,276 | |||||||||||||||||
| Balance June 30, 2017 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (11,464,104 | ) | $ | 27,286,278 | $ | 973,575 | $ | 25,737,695 | ||||||||||
| Accumulated | ||||||||||||||||||||||||
| Additional | Other | Total | ||||||||||||||||||||||
| Common Stock | Paid-in | Treasury | Retained | Comprehensive | Stockholders’ | |||||||||||||||||||
| Shares | Amount | Capital | Stock | Earnings | Income (Loss) | Equity | ||||||||||||||||||
| Balance December 31, 2017 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (11,464,104 | ) | $ | 28,206,925 | $ | 328,381 | $ | 26,013,148 | ||||||||||
| Net income | - | - | - | - | 1,256,095 | - | 1,256,095 | |||||||||||||||||
|
Cash dividends declared ($.22 per share) |
- | - | - | - | (229,571 | ) | - | (229,571 | ) | |||||||||||||||
| Other comprehensive loss | - | - | - | - | - | (1,100,417 | ) | (1,100,417 | ) | |||||||||||||||
| Balance June 30, 2018 | 1,872,313 | $ | 18,723 | $ | 8,923,223 | $ | (11,464,104 | ) | $ | 29,233,449 | $ | (772,036 | ) | $ | 25,939,255 | |||||||||
|
PINNACLE BANCSHARES, INC. |
||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Six Months Ended | ||||||||
| June 30, | ||||||||
| 2018 | 2017 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 1,256,095 | $ | 1,098,634 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 187,033 | 175,341 | ||||||
| Net investment amortization expense | 213,976 | 257,001 | ||||||
| Bank owned life insurance | (167,190 | ) | (166,372 | ) | ||||
| Gain on sale of securities available for sale | (1,689 | ) | - | |||||
| Gain on sale of or write-down of real estate owned | (597 | ) | - | |||||
| Decrease in accrued interest receivable | 38,136 | 34,604 | ||||||
| Increase (decrease) in accrued interest payable | 38,619 | (602 | ) | |||||
| Net other operating activities | 35,443 | (331,980 | ) | |||||
| Net cash provided by operating activities | 1,599,826 | 1,066,626 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Net (increase) decrease in loans | (8,020,709 | ) | 196,860 | |||||
| Net increase in interest bearing deposits in other banks | (593,893 | ) | (14,653,837 | ) | ||||
| Purchase of securities available for sale | (3,059,606 | ) | (2,040,054 | ) | ||||
| Proceeds from sale of securities available for sale | 501,689 | - | ||||||
| Proceeds from maturing, sale and payments received on securities available for sale | 6,306,566 | 4,793,950 | ||||||
| Net (purchase) redemption of restricted equity securities | 42,000 | (83,400 | ) | |||||
| Purchase of premises and equipment | (301,340 | ) | (660,806 | ) | ||||
| Proceeds from sales of real estate owned | 41,768 | - | ||||||
| Net cash used in investing activities | (5,083,525 | ) | (12,447,287 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Net increase in deposits | 5,232,125 | 11,574,226 | ||||||
| Net decrease in other borrowings | (1,500,000 | ) | - | |||||
| Net decrease in federal funds purchased | (100,000 | ) | - | |||||
| Payments of cash dividends | (229,571 | ) | (229,572 | ) | ||||
| Net cash provided by financing activities | 3,402,554 | 11,344,654 | ||||||
| Net decrease in cash and cash equivalents | (81,145 | ) | (36,007 | ) | ||||
| Cash and cash equivalents at beginning of period | 1,871,452 | 1,698,936 | ||||||
| Cash and cash equivalents at end of period | $ | 1,790,307 | $ | 1,662,929 | ||||
| SUPPLEMENTAL DISCLOSURES: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 256,321 | $ | 279,062 | ||||
| Taxes | $ | 236,436 | $ | 332,569 | ||||
| OTHER NONCASH TRANSACTIONS | ||||||||
| Real estate acquired through foreclosure | $ | - | $ | - | ||||
| Internally financed sales of other real estate owned | $ | - | $ | - | ||||