CORRECTING and REPLACING Pinnacle Bank Announces Earnings for Third Quarter of 2023

Rhea-AI Summary

Pinnacle Bank announced unaudited net income of $2,926,000 for Q3 2023, a 17% increase from the same period last year. Total assets increased by 8% to $843.5 million, while gross loans increased by 11% to $538.4 million. Total deposits reached a record $746.6 million, a 7% increase.

Positive

• Pinnacle Bank reported a 17% increase in net income for Q3 2023 compared to the same period last year. Total assets and total deposits also saw significant increases.

Negative

• None.

GILROY, Calif.--(BUSINESS WIRE)-- Headline of release should read: Pinnacle Bank Announces Earnings for Third Quarter of 2023 (instead of Pinnacle Bank Announces Earnings for Second Quarter of 2023)

The updated release reads:

Pinnacle Bank Announces Earnings for Third Quarter of 2023

Pinnacle Bank (OTCQB: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the three months ended September 30, 2023 of $2,926,000, an increase of 17% compared to net income of $2,494,000 for the same period in 2022.

As of September 30, 2023, total assets were $843.5 million, an 8% increase from the $781.2 million at September 30, 2022.

Gross loans were $538.4 million at September 30, 2023, an increase of $52.3 million (11%) from the September 30, 2022 balance of $486.1 million. The allowance for credit losses at September 30, 2023 was $5.799 million or 1.09% of net loans compared to $6.227 million or 1.30% of net loans at September 30, 2022. There were no nonperforming assets at September 30, 2023.

Total deposits at September 30, 2023 were a record $746.6 million, an increase of $46.7 million (7%) compared to $699.9 million at September 30, 2022.

“This quarter we achieved record deposits. Additionally, our credit quality remains strong with no nonperforming assets at September 30, 2023,” stated Jeffrey Payne, President and CEO. “Our approach to relationship banking is the key to these results. 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 September 30, 2023, the Bank had a total capital ratio of 14.34%. Book value per share at September 30, 2023 was $14.68.

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 September 2023 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 September 2023 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)	9/30/2023			6/30/2023			9/30/2022			$			%
Total assets	$	843,532		$	800,042		$	781,242		$	62,290		8%
Gross loans	$	538,413		$	539,936		$	486,137		$	52,276		11%
Allowance for loan losses	$	(5,799	)	$	(5,790	)	$	(6,227	)	$	428		-7%
Non-interest bearing deposits	$	272,652		$	263,324		$	341,658		$	(69,006	)	-20%
Interest-bearing deposits	$	473,946		$	442,288		$	358,276		$	115,670		32%
Total deposits	$	746,599		$	705,612		$	699,934		$	46,665		7%
Shareholders' equity	$	82,804		$	79,820		$	69,698		$	13,106		19%

Summary Income Statement
(Unaudited, dollars in thousands	Quarter ended			Quarter ended			Change	Quarter ended			Change
except per share data)	9/30/2023			6/30/2023			%	9/30/2022			%
Interest income	$	12,366		$	11,235		10%	$	8,756		41%
Interest expense		2,760			2,161		28%		558		395%
Net interest income		9,606			9,074		6%		8,198		17%
Provision for loan losses		0			50		-100%		0		0%
Non-interest income		640			1,061		-40%		807		-21%
Non-interest expense		6,097			6,026		1%		5,471		11%
Income tax expense		1,223			1,189		3%		1,040		18%
Net income (loss)	$	2,926		$	2,870		2%	$	2,494		17%
Basic Earnings per share	$	0.52		$	0.51		2%	$	0.46		13%
Diluted Earnings per share	$	0.51		$	0.50		2%	$	0.45		13%
Book value per share	$	14.68		$	14.15		4%	$	12.76		15%
Shares outstanding at period end		5,641,771			5,639,396		0%		5,463,066		3%

				Minimum
				required to be
Capital Ratios	9/30/2023	6/30/2023	9/30/2022	well-capitalized
Tier 1 leverage ratio	10.35%	10.63%	9.07%	5.00%
Common Equity Tier 1 capital ratio	13.42%	13.12%	12.22%	6.50%
Tier 1 capital ratio	13.42%	13.12%	12.22%	8.00%
Total capital ratio	14.34%	14.05%	13.28%	10.00%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231026671952/en/

Media Contact:

Pinnacle Bank

Jeffrey D. Payne, President & CEO

408-762-7146

Source: Pinnacle Bank

FAQ

What is Pinnacle Bank's net income for Q3 2023?

Pinnacle Bank reported a net income of $2,926,000 for Q3 2023.

What is the percentage increase in net income compared to the same period last year?

Net income increased by 17% compared to the same period in 2022.

What is the total asset value for Pinnacle Bank as of September 30, 2023?

Total assets were $843.5 million as of September 30, 2023.

What is the percentage increase in total assets compared to September 30, 2022?

Total assets increased by 8% compared to September 30, 2022.

What is the gross loan balance for Pinnacle Bank as of September 30, 2023?

Gross loans were $538.4 million as of September 30, 2023.

What is the percentage increase in gross loans compared to September 30, 2022?

Gross loans increased by 11% compared to September 30, 2022.

What is the total deposit amount for Pinnacle Bank as of September 30, 2023?

Total deposits were $746.6 million as of September 30, 2023.

What is the percentage increase in total deposits compared to September 30, 2022?

Total deposits increased by 7% compared to September 30, 2022.