Pinnacle Bank Announces Earnings for Second Quarter of 2026

GILROY, Calif.--(BUSINESS WIRE)--Pinnacle Bank (OTCQB: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the second quarter ended June 30, 2026 of $1,482,000 compared to net income of $1,319,000 in the prior quarter.

As of June 30, 2026, total assets were $937.0 million, a 6% increase from $878.1 million as of June 30, 2025.

Total loans were $576.4 million as of June 30, 2026, compared to $565.5 million as of June 30, 2025. The allowance for loan losses was $7.293 million, or 1.27% of net loans, as of June 30, 2026, compared to $6.905 million, or 1.22% of net loans, as of June 30, 2025.

Total deposits were $810.3 million as of June 30, 2026, a 7% increase from $759.3 million as of June 30, 2025.

“Pinnacle Bank’s 7% deposit growth reflects the continued trust local businesses and nonprofits place in our relationship-based approach,” stated Jeffrey Payne, President and Chief Executive Officer. “Across the Salinas Valley and Silicon Valley, we remain committed to supporting entrepreneurs and business owners with responsive banking solutions that help them manage cash flow, invest, and grow. Looking ahead, we are encouraged by the strength of our client relationships and the continued momentum of our professional bankers, directors, advisors, and loyal clients.”

The Bank’s capital position remains above regulatory guidelines for well-capitalized banks. At June 30, 2026, total capital ratio was 17.54%. Book value per share as of June 30, 2026 was $18.34.

For more information, please go to www.pinnacle.bank, click on Investor Relations, and review the June 2026 call report.

About Pinnacle Bank

Pinnacle Bank is a full-service business bank dedicated to providing quality depository and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for businesses and nonprofit organizations, offering a variety of products and services that combine the best of personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy, Salinas and Campbell. For more information please go to www.pinnacle.bank and click on Investor Relations.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Summary Balance Sheet							Year over year change
(Unaudited, dollars in thousands)	6/30/2026		3/31/2026		6/30/2025		$		%
Total assets	$	936,970	$	945,774	$	878,109	$	58,861	7%
Total loans	$	576,411	$	566,888	$	565,492	$	10,919	2%
Allowance for loan losses	$	(7,293)	$	(12,971)	$	(6,905)	$	(388)	6%
Non-interest bearing deposits	$	247,335	$	251,656	$	262,071	$	(14,736)	-6%
Interest-bearing deposits	$	562,983	$	571,850	$	497,242	$	65,741	13%
Total deposits	$	810,318	$	823,506	$	759,313	$	51,005	7%
Shareholders' equity	$	109,506	$	107,908	$	104,111	$	5,395	5%

Summary Income Statement
(Unaudited, dollars in thousands	Quarter ended		Quarter ended		Change	Quarter ended		Change
except per share data)	6/30/2026		3/31/2026		%	6/30/2025		%
Interest income	$	11,786	$	11,830	-%	$	12,278	-4%
Interest expense		3,641		3,504	4%		3,384	8%
Net interest income		8,145		8,326	-2%		8,894	-8%
Provision for loan losses		-		149	-100%		-	-%
Non-interest income		46		499	-91%		600	-92%
Non-interest expense		6,095		6,906	-12%		6,484	-6%
Income tax expense		614		451	36%		837	-27%
Net income (loss)	$	1,482	$	1,319	12%	$	2,173	-32%
Basic Earnings per share	$	0.25	$	0.22	14%	$	0.37	-32%
Diluted Earnings per share	$	0.25	$	0.22	14%	$	0.36	-31%
Book value per share	$	18.34	$	18.08	1%	$	17.57	4%
Shares outstanding at period end		5,970,871		5,968,646	-%		5,926,716	1%

Nonperforming assets
unaudited (dollars in thousands)	6/30/2026		3/31/2026		6/30/2025
Nonperforming assets	$	17,296	$	21,911	$	11,508

				Minimum
				required to be
Capital Ratios	6/30/2026	3/31/2026	6/30/2025	well-capitalized
Tier 1 leverage ratio	11.88%	11.87%	12.04%	5.00%
Common Equity Tier 1 capital ratio	16.45%	16.46%	16.44%	6.50%
Tier 1 capital ratio	16.45%	16.46%	16.44%	8.00%
Total capital ratio	17.54%	17.71%	17.52%	10.00%