Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2019

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, 2019, Pinnacle reported net income of $745,000 compared to $643,000 for the three months ended June 30, 2018. $39,000 of net gains related to sale of securities available for sale are included in the three months ended June 30, 2019.
  • For the six months ended June 30, 2019, Pinnacle reported net income of $1,410,000 compared to $1,256,000 for the six months ended June 30, 2018. $39,000 of net gains related to sale of securities available for sale are included in the six months ended June 30, 2019.
  • Net interest income after the provision for loan losses for the three and six months ended June 30, 2019, was $2,021,000 and $3,965,000, respectively, compared with $1,918,000 and $3,785,000 respectively, in the same periods last year.
  • Basic and diluted earnings per share for the three and six months ended June 30, 2019 were $0.72 and $1.36 per share, respectively, compared to $0.62 and $1.20 per share, respectively, for the same periods last year.
  • For the three and six months ended June 30, 2019, return on average assets was 1.30%, and 1.24%, respectively, compared to 1.15% and 1.12%, respectively, in the comparable 2018 period.

Pinnacle’s net interest margin was 3.87% and 3.81% for the three and six months ended June 30, 2019, respectively, compared to 3.74% and 3.67% for the three and six months ended June 30, 2018, respectively.

At June 30, 2019, Pinnacle’s allowance for loan losses as a percent of total loans was 1.50%, compared to 1.53% at December 31, 2018. At June 30, 2019, the allowance for loan losses as a percent of nonperforming loans was 648.39%, compared to 596.28% at December 31, 2018. Nonperforming assets were $248,000 at June 30, 2019, compared to $269,000 at December 31, 2018. The ratio of nonperforming assets to total loans was .23% at June 30, 2019, compared to .26% at December 31, 2018. In addition, all capital ratios are higher than the requirements for a well-capitalized institution.

Dividends of $.19 and $.38 per share were paid to shareholders during the three and six months ended for both Junes 30, 2019, as compared to $.11 and $.22 per share during the three and six months ended June 30, 2018.

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,

 

2019

2018

Net income

$

745,000

$

643,000

Basic and diluted earnings per share

$

0.72

$

0.62

 

 

 

Performance ratios (annualized):

 

 

Return on average assets

 

1.30%

 

1.15%

Return on average equity

 

10.47%

 

9.45%

Interest rate spread

 

3.65%

 

3.61%

Net interest margin

 

3.87%

 

3.74%

Operating cost to assets

 

2.81%

 

2.84%

 

 

 

Weighted average basic and diluted shares outstanding

 

1,035,378

 

1,043,505

Dividends per share

$

0.19

$

0.11

Provision for loan losses

$

-

$

-

 

 

 

Six Months Ended June 30,

 

2019

2018

Net income

$

1,410,000

$

1,256,000

Basic and diluted earnings per share

$

1.36

$

1.20

 

 

 

Performance ratios (annualized):

 

 

Return on average assets

 

1.24%

 

1.12%

Return on average equity

 

9.97%

 

9.44%

Interest rate spread

 

3.59%

 

3.55%

Net interest margin

 

3.81%

 

3.67%

Operating cost to assets

 

2.79%

 

2.80%

 

 

 

Weighted average basic and diluted shares outstanding

 

1,037,417

 

1,043,505

Dividends per share

$

0.38

$

0.22

Provision for loan losses

$

-

$

-

 

 

 

 

 

(Audited)

 

June 30, 2019

December 31, 2018

Total assets

$

230,252,000

$

221,755,000

Loans receivable, net

$

105,663,000

$

103,282,000

Deposits

$

195,472,000

$

185,329,000

Brokered CD’s included in deposits

$

2,032,000

$

2,999,000

Other borrowings

$

-

$

4,500,000

Total stockholders’ equity

$

29,640,000

$

27,207,000

Book value per share

$

28.70

$

26.07

Stockholders’ equity to assets ratio

 

12.46%

 

12.17%

 

 

 

Asset quality ratios:

 

 

Nonperforming loans as a percent of total loans

 

.23%

 

.26%

Nonperforming assets as a percent of total loans

 

.23%

 

.26%

Allowance for loan losses as a percent of total loans

 

1.50%

 

1.53%

Allowance for loan losses as a percent of nonperforming loans

 

648.39%

 

596.28%

 
 
 

FINANCIAL INFORMATION

 

PINNACLE BANCSHARES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

 

(Unaudited)

 

 

(Audited)

 

June 30,

 

 

December 31,

 

 

2019

 

 

 

 

2018

 

 

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

1,523,907

 

 

$

1,611,283

 

Interest bearing deposits in banks

 

12,153,368

 

 

 

1,704,572

 

Securities available for sale

 

91,455,632

 

 

 

95,246,509

 

Restricted equity securities

 

723,800

 

 

 

912,300

 

 

 

 

 

Loans

 

107,270,420

 

 

 

104,885,961

 

Less Allowance for loan losses

 

1,607,706

 

 

 

1,604,052

 

Loans, net

 

105,662,714

 

 

 

103,281,909

 

 

 

 

 

Premises and equipment, net

 

6,530,520

 

 

 

6,375,898

 

Right-of-use lease assets – operating

 

727,589

 

 

 

773,944

 

Goodwill

 

306,488

 

 

 

306,488

 

Bank owned life insurance

 

9,740,112

 

 

 

9,560,097

 

Accrued interest receivable

 

1,176,905

 

 

 

1,285,517

 

Other assets

 

251,042

 

 

 

696,784

 

Total assets

$

230,252,077

 

 

$

221,755,301

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Deposits

 

 

 

Noninterest-bearing

$

57,398,396

 

 

$

52,221,831

 

Interest-bearing

 

138,074,014

 

 

 

133,107,273

 

Total deposits

 

195,472,410

 

 

 

185,329,104

 

 

 

 

 

Other borrowings

 

-

 

 

 

4,500,000

 

Long term lease obligations – operating

 

727,589

 

 

 

773,944

 

Subordinated debentures

 

3,093,000

 

 

 

3,093,000

 

Accrued interest payable

 

164,006

 

 

 

146,848

 

Other liabilities

 

1,155,063

 

 

 

705,806

 

Total liabilities

 

200,612,068

 

 

 

191,548,702

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 1,032,905 shares and 1,043,505 outstanding, respectively

 

18,723

 

 

 

18,723

 

Additional paid‑in capital

 

8,923,223

 

 

 

8,923,223

 

Treasury stock (839,408 and 828,808 shares, respectively)

 

(11,730,888

)

 

 

(11,464,104

)

Retained earnings

 

31,360,319

 

 

 

30,343,475

 

Accumulated other comprehensive income (loss), net of tax

 

1,068,632

 

 

 

(614,718

)

 

 

 

 

Total stockholders’ equity

 

29,640,009

 

 

 

27,206,599

 

 

 

 

 

Total liabilities and stockholders’ equity

$

230,252,077

 

 

$

221,755,301

 

 

 

PINNACLE BANCSHARES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2019

 

2018

 

2019

 

2018

Interest income

 

 

 

 

 

 

 

Loans, including fees

$

1,502,254

 

$

1,320,707

 

$

2,931,547

 

$

2,578,700

Securities available for sale

 

711,002

 

 

716,643

 

 

1,433,348

 

 

1,443,025

Other interest

 

59,159

 

 

28,584

 

 

100,814

 

 

58,646

Total interest income

 

2,272,415

 

 

2,065,934

 

 

4,465,709

 

 

4,080,371

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

Deposits

 

207,235

 

 

97,837

 

 

395,304

 

 

188,585

Borrowings and repurchase agreements

 

-

 

 

10,523

 

 

87,690

 

 

76,300

Subordinated debentures

 

43,690

 

 

39,800

 

 

17,312

 

 

30,055

Total interest expense

 

250,925

 

 

148,160

 

 

500,306

 

 

294,940

 

 

 

 

 

 

 

 

Net interest income

 

2,021,490

 

 

1,917,774

 

 

3,965,403

 

 

3,785,431

Provision for loan losses

 

-

 

 

-

 

 

-

 

 

-

Net interest income after provision

for loan losses

 

2,021,490

 

 

1,917,774

 

 

3,965,403

 

 

3,785,431

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

Fees and service charges on deposit accounts

 

369,779

 

 

339,069

 

 

697,063

 

 

667,112

Service fee income, net

 

1,719

 

 

2,086

 

 

3,433

 

 

4,289

Bank owned life insurance

 

90,009

 

 

83,595

 

 

180,015

 

 

167,190

Mortgage fee income

 

10,803

 

 

10,305

 

 

18,372

 

 

15,304

Net gain on sale of real estate owned

 

-

 

 

597

 

 

967

 

 

597

Net gain on securities available for sale

 

39,207

 

 

-

 

 

39,207

 

 

1,689

Total other income

 

511,517

 

 

435,652

 

 

939,057

 

 

856,181

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

Salaries and employee benefits

 

910,664

 

 

917,737

 

 

1,825,488

 

 

1,806,875

Occupancy expense

 

198,680

 

 

218,110

 

 

395,979

 

 

441,966

Marketing and professional expense

 

66,708

 

 

44,753

 

 

130,685

 

 

85,784

Other operating expenses

 

434,468

 

 

402,537

 

 

818,871

 

 

802,931

Total other expenses

 

1,610,520

 

 

1,583,137

 

 

3,171,023

 

 

3,137,556

 

 

 

 

 

 

 

 

Income before income taxes

 

922,487

 

 

770,289

 

 

1,733,437

 

 

1,504,056

 

 

 

 

 

 

 

 

Income tax expense

 

177,044

 

 

127,646

 

 

323,005

 

 

247,961

 

 

 

 

 

 

 

 

Net income

$

745,443

 

$

642,643

 

$

1,410,432

 

$

1,256,095

 

 

 

 

 

 

 

 

Cash dividend per share

$

0.19

 

$

0.11

 

$

0.38

 

$

0.22

 

 

 

 

 

 

 

 

Basic and diluted earnings per share

$

0.72

 

$

0.62

 

$

1.36

 

$

1.20

 

 

 

 

 

 

 

 

Weighted–average basic and diluted

shares outstanding

 

1,035,378

 

 

1,043,505

 

 

1,037,417

 

 

1,043,505

 

PINNACLE BANCSHARES, INC.

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Six Months Ended June 30, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Other

 

 

Total

 

Common Stock

 

 

Paid-in

 

 

Treasury

 

 

Retained

 

 

Comprehensive

 

 

Stockholders’

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Earnings

 

 

Income (Loss)

 

 

Equity

Balance December 31, 2018

1,872,313

$

18,723

$

8,923,223

$

(11,464,104

)

$

30,343,475

 

$

(614,718

)

$

27,206,599

 

Net income

-

 

-

 

-

 

-

 

 

1,410,432

 

 

-

 

 

1,410,432

 

Cash dividends declared

($.38 per share)

-

 

-

 

-

 

-

 

 

(393,588

)

 

-

 

 

(393,588

)

Purchase of treasury stock

-

 

-

 

-

 

(266,784

)

 

-

 

 

-

 

 

(266,784

)

Other comprehensive income

-

 

-

 

-

 

-

 

 

-

 

 

1,683,350

 

 

1,683,350

 

Balance June 30, 2019

1,872,313

$

18,723

$

8,923,223

$

(11,730,888

)

$

31,360,319

 

$

1,068,632

 

$

29,640,009

 

 

PINNACLE BANCSHARES, INC.

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

For the Six Months Ended

 

 

 

 

June 30,

 

 

 

 

 

2019

 

 

 

 

2018

 

OPERATING ACTIVITIES:

 

 

 

Net income

$

1,410,432

 

 

$

1,256,095

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

 

178,887

 

 

 

187,033

 

Net investment amortization expense

 

163,476

 

 

 

213,976

 

Bank owned life insurance

 

(180,015

)

 

 

(167,190

)

Gain on sale of securities available for sale

 

(39,207

)

 

 

(1,689

)

Gain on sale of or write-down of real estate owned

 

(967

)

 

 

(597

)

Decrease in accrued interest receivable

 

108,612

 

 

 

38,136

 

Increase in accrued interest payable

 

17,158

 

 

 

38,619

 

Net other operating activities

 

303,551

 

 

 

35,443

 

Net cash provided by operating activities

 

1,961,927

 

 

 

1,599,826

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

Net increase in loans

 

(2,389,837

)

 

 

(8,020,709

)

Net increase in interest bearing deposits in other banks

 

(10,448,796

)

 

 

(593,893

)

Purchase of securities available for sale

 

(5,661,467

)

 

 

(3,059,606

)

Proceeds from sale of securities available for sale

 

7,466,732

 

 

 

501,689

 

Proceeds from maturing, sale and payments received on securities available for sale

 

4,136,141

 

 

 

6,306,566

 

Net redemption of restricted equity securities

 

188,500

 

 

 

42,000

 

Purchase of premises and equipment

 

(333,509

)

 

 

(301,340

)

Proceeds from sales of real estate owned

 

9,999

 

 

 

41,768

 

Net cash used in investing activities

 

(7,032,237

)

 

 

(5,083,525

)

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

Net increase in deposits

 

10,143,306

 

 

 

5,232,125

 

Net decrease in other borrowings

 

(4,500,000

)

 

 

(1,500,000

)

Net decrease in federal funds purchased

 

-

 

 

 

(100,000

)

Purchase of treasury stock

 

(266,784

)

 

 

-

 

Payments of cash dividends

 

(393,588

)

 

 

(229,571

)

Net cash provided by financing activities

 

4,982,934

 

 

 

3,402,554

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(87,376

)

 

 

(81,145

)

 

 

 

 

Cash and cash equivalents at beginning of period

 

1,611,283

 

 

 

1,871,452

 

 

 

 

 

Cash and cash equivalents at end of period

$

1,523,907

 

 

$

1,790,307

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

Cash paid during the period for:

 

 

 

Interest

$

483,148

 

 

$

256,321

 

Taxes

$

73,195

 

 

$

236,436

 

 

 

 

 

OTHER NONCASH TRANSACTIONS

 

 

 

Real estate acquired through foreclosure

$

9,032

 

 

$

-

 

Internally financed sales of other real estate owned

$

-

 

 

$

-

 

 
 

 

Contacts

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

Contacts

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