Pinnacle Bank Announces Earnings for First Quarter of 2024
April 25 2024 - 6:02PM
Business Wire
OTCQB: PBNK - Pinnacle Bank, headquartered in Gilroy,
California, announced today unaudited net income for the three
months ended March 31, 2024 of $2,453,000, compared to net income
of $2,723,000 for the same period in 2023. The decrease in net
income from the first quarter of 2023 reflects lower noninterest
income, higher provision for credit losses and higher noninterest
expenses exceeding higher net interest income.
As of March 31, 2024, total assets were $833.1 million, a 9%
increase from the $766.6 million at March 31, 2023.
Gross loans were $576.8 million at March 31, 2024, a new record
and an increase of $48.6 million (9%) from the March 31, 2023
balance of $528.2 million. The allowance for credit losses at March
31, 2024 was $6.225 million or 1.09% of net loans compared to
$5.732 million or 1.10% of net loans at March 31, 2023.
Total deposits at March 31, 2024 were $727.4 million, a 8%
increase from $676.3 million at March 31, 2023 and a 2% increase
from $714.7 million at December 31, 2023.
“Our markets continue to see good economic activity despite
various challenges including higher interest rates and inflation.
This quarter we saw loans grow to a new record as well as an
increase in deposits. These achievements highlight the success of
our approach to relationship banking and our high level of
personalized service,” stated Jeffrey Payne, President and CEO. “We
are honored to contribute to the success of our communities by
providing premier business banking from Salinas Valley to Silicon
Valley. We appreciate the ongoing efforts of our outstanding team
of professional bankers, committed directors and advisors and our
many loyal clients that contribute to our ongoing success and
valued relationships.”
The Bank’s capital position remains above regulatory guidelines
for well capitalized banks. At March 31, 2024, the Bank had a total
capital ratio of 15.01%. Book value per share at March 31, 2024 was
$15.64.
Pinnacle Bank is rated by Bauer Financial as Five-Star
"Superior" for strong financial performance, the top rating given
by the independent bank rating firm. DepositAccounts.com awarded
Pinnacle Bank an A health rating. The Findley Reports named
Pinnacle Bank a 2023 Super Premier performing bank.
For more information, please go to www.pinnacle.bank click on
Investor Relations and March 2024 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
click on Investor Relations and March 2024 call report.
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)
3/31/2024
12/31/2023
3/31/2023
$
%
Total assets
$
833,081
$
817,420
$
766,638
$
66,443
9
%
Gross loans
$
576,784
$
564,454
$
528,159
$
48,625
9
%
Allowance for loan losses
$
(6,225
)
$
(5,952
)
$
(5,732
)
$
(493
)
9
%
Non-interest bearing deposits
$
248,792
$
262,757
$
275,224
$
(26,432
)
-10
%
Interest-bearing deposits
$
478,599
$
451,961
$
401,071
$
77,528
19
%
Total deposits
$
727,391
$
714,718
$
676,295
$
51,096
8
%
Shareholders' equity
$
91,245
$
87,926
$
77,076
$
14,169
18
%
Summary Income Statement
(Unaudited, dollars in thousands
Quarter ended
Quarter ended
Change
Quarter ended
Change
except per share data)
3/31/2024
12/31/2023
%
3/31/2023
%
Interest income
$
12,823
$
12,478
3
%
$
10,602
21
%
Interest expense
3,190
3,018
6
%
1,604
99
%
Net interest income
9,633
9,460
2
%
8,998
7
%
Provision for loan losses
306
144
113
%
136
125
%
Non-interest income
529
1,276
-59
%
1,161
-54
%
Non-interest expense
6,451
5,999
8
%
6,277
3
%
Income tax expense
952
1,340
-29
%
1,023
-7
%
Net income (loss)
$
2,453
$
3,252
-25
%
$
2,723
-10
%
Basic Earnings per share
$
0.42
$
0.57
-26
%
$
0.49
-14
%
Diluted Earnings per share
$
0.42
$
0.56
-25
%
$
0.48
-13
%
Book value per share
$
15.64
$
15.37
2
%
$
13.67
14
%
Shares outstanding at period end
5,833,976
5,721,976
2
%
5,637,148
3
%
Minimum
required to be
Capital Ratios
3/31/2024
12/31/2023
3/31/2023
well-capitalized
Tier 1 leverage ratio
11.27
%
10.72
%
10.23
%
5.00
%
Common Equity Tier 1 capital ratio
14.06
%
13.72
%
12.97
%
6.50
%
Tier 1 capital ratio
14.06
%
13.72
%
12.97
%
8.00
%
Total capital ratio
15.01
%
14.64
%
13.91
%
10.00
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425867968/en/
Pinnacle Bank Jeffrey D. Payne, President & CEO
408-762-7146