JASPER, Ala.--(BUSINESS WIRE)--Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s third quarter results of operations.
- For the three months ended September 30, 2021, Pinnacle reported net income of $1,829,000 compared to $712,000 for the three months ended September 30, 2020.
- For the nine months ended September 30, 2021, Pinnacle reported net income of $3,720,000 compared to $2,285,000 for the nine months ended September 30, 2020.
- Included in net interest income for each of the three months ended September 30, 2021 and 2020 are Paycheck Protection Program (“PPP”) amortized loan fees of approximately $240,000 and $97,000, respectively. Included in net interest income for each of the nine months ended September 30, 2021 and 2020 are PPP amortized loan fees of approximately $431,000 and $97,000, respectively.
- Bank-owned life insurance income, which is included in non-interest income, was approximately $820,000 and $1,015,000 for the three months and nine months ended September 30, 2021 as compared to $94,000 and $283,000 for the three months and nine months ended September 30, 2020.
- Gain on sale of available for sales of securities in the amount of approximately $227,000 was recorded during both the three and nine months ended September 30, 2021 as compared to $153,000 recorded during the nine months ended September 30, 2020. There were no gains on sale of available for sales of securities recorded during the three months ended September 30, 2020.
- The Bank used part of the PPP loan fee income to make contributions to charities in its local communities. This represented an increase of approximately $123,000 and $143,000 in non-interest expense for the three months and nine months ended September 30, 2021 and 2020, respectively. The charitable organizations used these contributions in part to assist our community in dealing with the continued adverse effects of COVID-19.
- Basic and diluted earnings per share for the three and nine months ended September 30, 2021 were $1.88 and $3.82 per share, respectively, compared to $0.72 and $2.29 per share, respectively, for the same periods last year.
- For the three and nine months ended September 30, 2021, return on average assets was 2.19%, and 1.59%, respectively, compared to 1.04% and 1.17%, respectively, in the comparable 2020 period.
Pinnacle’s net interest margin was 3.52% and 3.49% for the three and nine months ended September 30, 2021, respectively, compared to 3.59% and 3.56% for the three and nine months ended September 30, 2020, respectively.
At September 30, 2021, Pinnacle’s allowance for loan losses as a percent of total loans was 1.85%, compared to 2.13% at December 31, 2020. The allowance for loan losses as a percent of total loans, excluding PPP loans of approximately $7.6 million dollars, was 1.97% as of September 30, 2021. Nonperforming assets were $12,000 at September 30, 2021, compared to $130,000 at December 31, 2020. The ratio of nonperforming assets to total loans was .01% and .12% at September 30, 2021 and December 31, 2020, respectively. All capital ratios are higher than the requirements for a well-capitalized institution.
Dividends of $.22 and $.66 per share were paid to shareholders during the three and nine months ended for September 30, 2021 as compared to $.19 and $.57 per share paid during the three and nine months ended for September 30, 2020.
As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which are likely to negatively impact the Company. The extent of COVID-19’s impact on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, the virus’ impact on the Company’s customers, employees and vendors, and vaccination supply and delivery. At this point, the extent to which COVID-19 may impact the Company’s financial condition or results of operations remains uncertain.
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 September 30, |
||||||
|
|
2021 |
|
2020 |
||||
Net income |
|
$ |
1,829,000 |
|
|
$ |
712,000 |
|
Basic and diluted earnings per share |
|
$ |
1.88 |
|
|
$ |
0.72 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
2.19 |
% |
|
|
1.04 |
% |
Return on average equity |
|
|
22.21 |
% |
|
|
9.58 |
% |
Interest rate spread |
|
|
3.42 |
% |
|
|
3.43 |
% |
Net interest margin |
|
|
3.52 |
% |
|
|
3.59 |
% |
Operating cost to assets |
|
|
2.42 |
% |
|
|
2.59 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
971,234 |
|
|
|
983,119 |
|
Dividends per share |
|
$ |
0.22 |
|
|
$ |
0.19 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
2021 |
|
2020 |
||||
Net income |
|
$ |
3,720,000 |
|
|
$ |
2,285,000 |
|
Basic and diluted earnings per share |
|
$ |
3.82 |
|
|
$ |
2.29 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.59 |
% |
|
|
1.17 |
% |
Return on average equity |
|
|
15.58 |
% |
|
|
10.30 |
% |
Interest rate spread |
|
|
3.40 |
% |
|
|
3.36 |
% |
Net interest margin |
|
|
3.49 |
% |
|
|
3.56 |
% |
Operating cost to assets |
|
|
2.30 |
% |
|
|
2.54 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
972,740 |
|
|
|
997,340 |
|
Dividends per share |
|
$ |
0.66 |
|
|
$ |
0.57 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
(Audited) |
||||
|
|
September 30, 2021 |
|
December 31, 2020 |
||||
Total assets |
|
$ |
337,849,000 |
|
|
$ |
275,742,000 |
|
Loans receivable, net |
|
$ |
124,127,000 |
|
|
$ |
109,429,000 |
|
Deposits |
|
$ |
295,710,000 |
|
|
$ |
235,109,000 |
|
Brokered CD’s included in deposits |
|
$ |
21,951,000 |
|
|
$ |
14,980,000 |
|
Total stockholders’ equity |
|
$ |
35,806,000 |
|
|
$ |
34,332,000 |
|
Book value per share |
|
$ |
36.88 |
|
|
$ |
34.63 |
|
Average Stockholders’ equity to assets ratio (excluding OCI) |
|
|
10.19 |
% |
|
|
11.15 |
% |
|
|
|
|
|
||||
Asset quality ratios: |
|
|
|
|
||||
Nonperforming loans as a percent of total loans |
|
|
.01 |
% |
|
|
.12 |
% |
Nonperforming assets as a percent of total loans |
|
|
.01 |
% |
|
|
.12 |
% |
Allowance for loan losses as a percent of total loans |
|
|
1.85 |
% |
|
|
2.13 |
% |
Allowance for loan losses as a percent of nonperforming loans |
|
|
19483.33 |
% |
|
|
1,833.08 |
% |
|
|
|
|
|
||||
FINANCIAL INFORMATION |
||||||||
|
||||||||
PINNACLE BANCSHARES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
||||||||
|
(Unaudited) |
|
(Audited) |
|||||
|
September 30, |
|
December 31, |
|||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|||||
Assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
2,103,745 |
|
|
|
2,080,667 |
|
|
Interest bearing deposits in banks |
|
5,643,770 |
|
|
|
4,106,661 |
|
|
Securities available for sale |
|
185,828,408 |
|
|
|
139,688,995 |
|
|
Restricted equity securities |
|
716,000 |
|
|
|
785,500 |
|
|
|
|
|
|
|||||
Loans |
|
126,465,696 |
|
|
|
111,811,886 |
|
|
Less Allowance for loan losses |
|
2,338,233 |
|
|
|
2,382,799 |
|
|
Loans, net |
|
124,127,463 |
|
|
|
109,429,087 |
|
|
|
|
|
|
|||||
Premises and equipment, net |
|
7,064,494 |
|
|
|
6,555,446 |
|
|
Right-of-use lease assets – operating |
|
517,297 |
|
|
|
587,970 |
|
|
Goodwill |
|
306,488 |
|
|
|
306,488 |
|
|
Bank owned life insurance |
|
9,731,814 |
|
|
|
10,296,876 |
|
|
Accrued interest receivable |
|
1,400,944 |
|
|
|
1,491,026 |
|
|
Other assets |
|
408,236 |
|
|
|
413,613 |
|
|
Total assets |
$ |
337,848,659 |
|
|
|
275,742,329 |
|
|
|
|
|
|
|||||
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Deposits |
|
|
|
|||||
Noninterest-bearing |
$ |
88,074,409 |
|
|
|
72,897,929 |
|
|
Interest-bearing |
|
207,635,647 |
|
|
|
162,210,802 |
|
|
Total deposits |
|
295,710,056 |
|
|
|
235,108,731 |
|
|
|
|
|
|
|||||
Subordinated debentures |
|
3,093,000 |
|
|
|
3,093,000 |
|
|
Accrued interest payable |
|
90,219 |
|
|
|
145,826 |
|
|
Operating lease liabilities |
|
517,297 |
|
|
|
587,970 |
|
|
Other liabilities |
|
2,632,426 |
|
|
|
2,474,936 |
|
|
Total liabilities |
|
302,042,998 |
|
|
|
241,410,463 |
|
|
|
|
|
|
|||||
Stockholders’ equity |
|
|
|
|||||
Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 970,791 and 973,505 shares outstanding, respectively |
|
18,723 |
|
|
|
18,723 |
|
|
Additional paid‑in capital |
|
8,923,223 |
|
|
|
8,923,223 |
|
|
Treasury stock (901,522 and 898,808 shares, respectively) |
|
(13,533,621 |
) |
|
|
(13,441,345 |
) |
|
Retained earnings |
|
37,952,233 |
|
|
|
34,874,072 |
|
|
Accumulated other comprehensive income, net of tax |
|
2,445,103 |
|
|
3,957,193 |
|
||
|
|
|
||||||
Total stockholders’ equity |
|
35,805,661 |
|
|
34,331,866 |
|
||
Total liabilities and stockholders’ equity |
$ |
337,848,659 |
$ |
275,742,329 |
||||
PINNACLE BANCSHARES, INC. |
||||||||||||
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Interest income |
|
|
|
|
|
|
|
|||||
Loans, including fees |
$ |
1,718,950 |
|
$ |
1,558,204 |
|
$ |
4,783,409 |
|
$ |
4,433,232 |
|
Securities available for sale |
|
1,113,658 |
|
|
858,000 |
|
|
3,145,204 |
|
|
2,591,275 |
|
Other interest |
|
15,752 |
|
|
13,242 |
|
|
26,804 |
|
|
38,919 |
|
Total interest income |
|
2,848,360 |
|
|
2,429,446 |
|
|
7,955,417 |
|
|
7,063,426 |
|
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
|
|
|
|
|
|||||
Deposits |
|
94,842 |
|
|
152,062 |
|
|
283,524 |
|
|
587,091 |
|
Borrowings |
|
- |
|
|
- |
|
|
795 |
|
|
3,330 |
|
Subordinated debentures |
|
37,550 |
|
|
35,000 |
|
|
113,600 |
|
|
113,310 |
|
Total interest expense |
|
132,392 |
|
|
187,062 |
|
|
397,919 |
|
|
703,731 |
|
|
|
|
|
|
|
|
|
|||||
Net interest income |
|
2,715,968 |
|
|
2,242,384 |
|
|
7,557,498 |
|
|
6,359,695 |
|
Provision for loan losses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Net interest income after provision for loan losses |
|
2,715,968 |
|
|
2,242,384 |
|
|
7,557,498 |
|
|
6,359,695 |
|
|
|
|
|
|
|
|
|
|||||
Other income |
|
|
|
|
|
|
|
|||||
Fees and service charges on deposit accounts |
|
393,121 |
|
|
318,078 |
|
|
1,093,172 |
|
|
986,071 |
|
Service fee income, net |
|
992 |
|
|
1,255 |
|
|
3,051 |
|
|
4,048 |
|
Bank owned life insurance |
|
819,545 |
|
|
94,186 |
|
|
1,015,480 |
|
|
282,558 |
|
Mortgage fee income |
|
12,164 |
|
|
4,877 |
|
|
29,638 |
|
|
30,451 |
|
Net gain on securities available for sale |
|
227,238 |
|
|
- |
|
|
227,238 |
|
|
152,658 |
|
Total other income |
|
1,453,060 |
|
|
418,396 |
|
|
2,368,579 |
|
|
1,455,786 |
|
|
|
|
|
|
|
|
|
|||||
Other expense: |
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
1,072,154 |
|
|
970,728 |
|
|
2,996,969 |
|
|
2,845,648 |
|
Occupancy expense |
|
229,893 |
|
|
215,986 |
|
|
664,200 |
|
|
633,969 |
|
Marketing and professional expense |
|
65,957 |
|
|
67,725 |
|
|
198,121 |
|
|
195,786 |
|
Other operating expenses |
|
651,548 |
|
|
521,130 |
|
|
1,530,160 |
|
|
1,287,460 |
|
Total other expenses |
|
2,019,552 |
|
|
1,775,569 |
|
|
5,389,450 |
|
|
4,962,863 |
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
2,149,476 |
|
|
885,211 |
|
|
4,536,627 |
|
|
2,852,618 |
|
|
|
|
|
|
|
|
|
|||||
Income tax expense |
|
320,111 |
|
|
172,982 |
|
|
816,550 |
|
|
567,774 |
|
|
|
|
|
|
|
|
|
|||||
Net income |
$ |
1,829,365 |
|
$ |
712,229 |
|
$ |
3,720,077 |
|
$ |
2,284,844 |
|
|
|
|
|
|
|
|
|
|||||
Cash dividend per share |
$ |
0.22 |
|
$ |
0.19 |
|
$ |
0.66 |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|||||
Basic and diluted earnings per share |
$ |
1.88 |
|
$ |
0.72 |
|
$ |
3.82 |
|
$ |
2.29 |
|
|
|
|
|
|
|
|
|
|||||
Weighted –average basic and diluted shares outstanding |
|
971,234 |
|
|
983,119 |
|
|
972,740 |
|
|
997,340 |
|
PINNACLE BANCSHARES, INC. |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||
Nine Months Ended September 30, 2021 and 2020 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
||||||||||||
|
|
|
|
Additional |
|
|
|
|
|
Other |
|
Total |
||||||||||||
|
Common Stock |
|
Paid-in |
|
Treasury |
|
Retained |
|
Comprehensive |
|
Stockholders’ |
|||||||||||||
|
Shares |
|
Amount |
|
Capital |
|
Stock |
|
Earnings |
|
Income |
|
Equity |
|||||||||||
Balance December 31, 2019 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(11,730,888 |
) |
|
$ |
32,445,916 |
|
|
$ |
1,130,578 |
|
|
$ |
30,787,552 |
|
|
Net income |
- |
|
|
- |
|
|
- |
|
|
|
|
2,284,844 |
|
|
|
- |
|
|
|
2,284,844 |
|
|||
Cash dividends declared ($.57 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(567,897 |
) |
|
|
- |
|
|
|
(567,897 |
) |
|
Purchase of treasury stock |
- |
|
|
- |
|
|
- |
|
|
(1,710,456 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,710,456 |
) |
|
Other comprehensive income |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
2,801,152 |
|
|
|
2,801,152 |
|
|
Balance September 30, 2020 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,344 |
) |
|
$ |
34,162,863 |
|
|
$ |
3,931,730 |
|
|
$ |
33,595,195 |
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
||||||||||||
|
|
|
|
Additional |
|
|
|
|
|
Other |
|
Total |
||||||||||||
|
Common Stock |
|
Paid-in |
|
Treasury |
|
Retained |
|
Comprehensive |
|
Stockholders’ |
|||||||||||||
|
Shares |
|
Amount |
|
Capital |
|
Stock |
|
Earnings |
|
Income |
|
Equity |
|||||||||||
Balance December 31, 2020 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,345 |
) |
|
$ |
34,874,072 |
|
|
$ |
3,957,193 |
|
|
$ |
34,331,866 |
|
|
Net income |
- |
|
|
- |
|
|
- |
|
|
|
|
3,720,077 |
|
|
|
- |
|
|
|
3,720,077 |
|
|||
Cash dividends declared ($.66 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(641,916 |
) |
|
|
- |
|
|
|
(641,916 |
) |
|
Purchase of treasury stock |
- |
|
|
- |
|
|
- |
|
|
(92,276 |
) |
|
|
- |
|
|
|
- |
|
|
|
(92,276 |
) |
|
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(1,512,090 |
) |
|
|
(1,512,090 |
) |
|
Balance September 30, 2021 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,533,621 |
) |
|
$ |
37,952,233 |
|
|
$ |
2,445,103 |
|
|
$ |
35,805,661 |
|
|
PINNACLE BANCSHARES, INC. |
||||||||
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
For the Nine Months Ended |
|||||||
|
September 30, |
|||||||
|
2021 |
|
2020 |
|||||
OPERATING ACTIVITIES: |
|
|
|
|||||
Net income |
$ |
3,720,077 |
|
$ |
2,284,844 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||||
Depreciation |
|
332,075 |
|
|
298,504 |
|
||
Provision for loan losses |
|
- |
|
|
- |
|
||
Net investment amortization expense |
|
239,487 |
|
|
205,007 |
|
||
Net (increase) decrease in bank owned life insurance |
|
565,062 |
|
|
(282,558 |
) |
||
Gain on sale of securities available for sale |
|
(227,238 |
) |
|
(152,658 |
) |
||
Decrease in accrued interest receivable |
|
90,082 |
|
|
84,462 |
|
||
Increase (decrease) in accrued interest payable |
|
(55,607 |
) |
|
663 |
|
||
Net other operating activities |
|
915,738 |
|
|
422,074 |
|
||
Net cash provided by operating activities |
|
5,579,676 |
|
|
2,860,338 |
|
||
|
|
|
||||||
INVESTING ACTIVITIES: |
|
|
||||||
Net increase in loans |
|
(14,698,376 |
) |
|
(23,788,381 |
) |
||
Net increase (decrease) in interest bearing deposits in other banks |
(1,537,109 |
) |
332,822 |
|||||
Purchase of securities available for sale |
|
(68,497,440 |
) |
|
(34,701,151 |
) |
||
Proceeds from sale of securities available for sale |
|
7,752,740 |
|
|
2,732,970 |
|
||
Proceeds from maturing, sale and payments received on securities available for sale |
|
12,328,077 |
|
|
12,330,031 |
|
||
Net redemption of restricted equity securities |
|
69,500 |
|
|
34,000 |
|
||
Purchase of premises and equipment |
|
(841,123 |
) |
|
|
(201,178 |
) |
|
Net cash used in investing activities |
|
(65,423,731 |
) |
|
|
(43,260,887 |
) |
|
|
|
|
||||||
FINANCING ACTIVITIES: |
|
|
||||||
Net increase in deposits |
|
60,601,325 |
|
|
43,177,108 |
|
||
Purchase of treasury stock |
|
(92,276 |
) |
|
(1,710,456 |
) |
||
Payments of cash dividends |
|
(641,916 |
) |
|
(567,897 |
) |
||
Net cash provided by financing activities |
|
59,867,133 |
|
|
40,898,755 |
|
||
|
|
|
||||||
Net increase in cash and cash equivalents |
|
23,078 |
|
|
498,206 |
|
||
|
|
|
||||||
Cash and cash equivalents at beginning of period |
|
2,080,667 |
|
|
1,814,912 |
|
||
|
|
|
||||||
Cash and cash equivalents at end of period |
$ |
2,103,745 |
|
$ |
2,313,118 |
|
||
|
|
|
||||||
SUPPLEMENTAL DISCLOSURES: |
|
|
||||||
Cash paid during the period for: |
|
|
||||||
Interest |
$ |
453,526 |
|
$ |
703,068 |
|
||
Taxes |
$ |
713,000 |
|
$ |
821,131 |
|
||
|
|
|
||||||
OTHER NONCASH TRANSACTIONS |
|
|
||||||
Real estate acquired through foreclosure |
$ |
- |
|
$ |
86,400 |
|
||
Internally financed sales of other real estate owned |
$ |
- |
|
$ |
- |
|
||