Pinnacle Bank Announces Earnings for First Quarter of 2024

Rhea-AI Summary

Pinnacle Bank, headquartered in Gilroy, California, reported unaudited net income of $2,453,000 for the first quarter of 2024, compared to $2,723,000 in 2023. Total assets increased by 9% to $833.1 million, with gross loans reaching $576.8 million, a 9% increase from the previous year. Despite challenges like higher interest rates and inflation, the bank saw growth in loans and deposits, reflecting successful relationship banking strategies.

Positive

• Pinnacle Bank reported a net income of $2,453,000 for the first quarter of 2024, a decrease from $2,723,000 in the same period in 2023.
• Total assets increased by 9% to $833.1 million as of March 31, 2024, compared to $766.6 million in 2023.
• Gross loans reached a new record of $576.8 million, a 9% increase from the previous year's balance.
• The bank's total deposits grew by 8% to $727.4 million in 2024, compared to $676.3 million in 2023.
• Pinnacle Bank's capital position remains strong with a total capital ratio of 15.01% as of March 31, 2024.
• The bank received top ratings from Bauer Financial and DepositAccounts.com for strong financial performance and health ratings.

Negative

• None.

GILROY, Calif.--(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

Source: Pinnacle Bank

FAQ

What was Pinnacle Bank's net income for the first quarter of 2024?

Pinnacle Bank reported a net income of $2,453,000 for the first quarter of 2024.

How much did Pinnacle Bank's total assets increase by as of March 31, 2024?

Pinnacle Bank's total assets increased by 9% to $833.1 million as of March 31, 2024.

What was the percentage increase in gross loans for Pinnacle Bank from March 31, 2023, to March 31, 2024?

Gross loans for Pinnacle Bank increased by 9% from the previous year to reach $576.8 million.

How much did Pinnacle Bank's total deposits grow by in 2024 compared to 2023?

Pinnacle Bank's total deposits grew by 8% to $727.4 million in 2024, compared to $676.3 million in 2023.

What is Pinnacle Bank's capital ratio as of March 31, 2024?

Pinnacle Bank's total capital ratio is 15.01% as of March 31, 2024.