Pinnacle Bank Announces Q2 2021 Results

Rhea-AI Summary

Pinnacle Bank (OTCQB: PBNK) reported an unaudited net income of $2.4 million for Q2 2021, significantly up from $1.1 million in Q2 2020. Total assets increased by 11% to $696 million, while total deposits grew 13% to $622.9 million. Gross loans decreased by 3% to $467.3 million, impacted by lower Paycheck Protection Program (PPP) loans of $71.8 million. Pinnacle Bank maintains a strong capital ratio of 14.94% and has received high ratings for financial performance.

Positive

• Net income increased by 105% to $2.4 million.
• Total assets rose 11% to $696 million.
• Total deposits grew by 13% to $622.9 million.
• Non-interest income surged 240% to $2.47 million.
• The bank maintains a strong capital ratio of 14.94%.

Negative

• Gross loans decreased by 3% to $467.3 million.
• PPP loans fell significantly from $125.6 million to $71.8 million.

GILROY, Calif., July 30, 2021 /PRNewswire/ -- Pinnacle Bank (OTCQB: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the three months ended June 30, 2021 of $2,399,000 compared to $1,077,000 in the same period in 2020. The public health and economic uncertainties that emerged in March 2020 were the basis for a provision for loan losses of $420,000 in the second quarter of 2020 compared to no provision in the second quarter of 2021. 

As of June 30, 2021, total assets were $696.0 million, an 11% increase from the $624.7 million at June 30, 2020.

Gross loans were $467.3 million at June 30, 2021, a decrease of $16.6 million (-3%) from the June 30, 2020 balance of $484.0 million. Gross Paycheck Protection Program (PPP) loans at June 30, 2021 were $71.8 million compared to $125.6mm a year earlier. Excluding the PPP loans, gross loans increased $37.1 million or 10%. The allowance for loan losses at June 30, 2021 was $6.164 million or 1.34% of loans (1.58% of net loans excluding the PPP loans) compared to $5.149 million or 1.14% of loans at June 30, 2020 (1.53% excluding PPP loans). 

Total deposits at June 30, 2021, increased to $622.9 million from $550.2 million at June 30, 2020, a 13% increase.

Gains on the sale of government guaranteed loans were $2.0mm in the second quarter of 2021 compared to $362,000 in the same period in 2020. The increase reflects borrower demand for financing using the enhancements to the SBA 7a program available through September 2021 and the prices paid by buyers of the guarantees.

"As our markets see economic improvements with the changes in the pandemic restrictions, our communities continue to see opportunities for growth. Our strong second quarter earnings and double-digit growth in loans and deposits reflects the success our approach to combine relationship banking with participation in government guaranteed lending," 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. Our continued success and momentum is due to the ongoing efforts and contributions of our outstanding team of professional bankers, committed directors and advisors and our many loyal clients."

As of June 30, 2021, there was one loan for $691,000 with a COVID loan modification, compared to 3 loans totaling $5.9 million at March 31, 2021. All of these loans were on performing status. COVID loan modifications are generally for interest only periods.

The Bank's capital position remains above regulatory guidelines for well capitalized banks. At June 30, 2021, the Bank had a total capital ratio of 14.94%. Book value per share at June 30, 2021 was $11.60. 

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+ rating with a ranking of 80 out of 5,035 U. S. banks analyzed. The Findley Reports named Pinnacle Bank a 2020 Super Premier performing bank.

For more information please go to www.pinnacle.bank click on Investor Relations and June 2021 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 June 2021 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.

Media Contact:
Pinnacle Bank
Jeffrey D. Payne, President & CEO
408-762-7146

 

Summary Balance Sheet				Year over year change
(Unaudited, dollars in thousands)	6/30/2021	3/31/2021	6/30/2020	$	%
Total assets	$     695,979	$     683,991	$     624,661	$       71,318	11%
Gross loans	$     467,330	$     511,173	$     483,963	$     (16,633)	-3%
Allowance for loan losses	$      (6,164)	$      (6,118)	$      (5,419)	$          (745)	14%
Non-interest bearing deposits	$     309,482	$     294,905	$     261,949	$       47,533	18%
Interest-bearing deposits	$     313,415	$     314,464	$     288,264	$       25,151	9%
Total deposits	$     622,897	$     609,369	$     550,213	$       72,684	13%
Shareholders' equity	$       61,976	$       59,439	$       55,229	$         6,747	12%

 

Summary Income Statement
(Unaudited, dollars in thousands	Quarter ended	Quarter ended	Change	Quarter ended	Change
except per share data)	6/30/2021	3/31/2021	%	6/30/2020	%
Interest income	$          6,248	$          5,870	6%	$          5,251	19%
Interest expense	248	321	-23%	524	-53%
Net interest income	6,000	5,549	8%	4,727	27%
Provision for loan losses	0	0	0%	420	-100%
Non-interest income	2,469	727	240%	823	200%
Non-interest expense	5,055	4,597	10%	3,579	41%
Income tax expense	1,015	510	99%	474	114%
Net income (loss)	$          2,399	$          1,169	105%	$          1,077	123%
Basic Earnings per share	$            0.45	$            0.22	105%	$0.21	114%
Diluted Earnings per share	$            0.43	$            0.22	95%	$0.20	115%
Book value per share	$          11.60	$          11.12	4%	$          10.53	10%
Shares outstanding at period end	5,344,660	5,343,535	0%	5,242,743	2%
Return on average assets	1.40%	0.72%		0.77%
Return on average equity	15.71%	7.90%		7.87%

 

				Minimum
				required to be
Capital Ratios	6/30/2021	3/31/2021	6/30/2020	well-capitalized
Tier 1 leverage ratio	9.03%	9.20%	9.91%	5.00%
Common Equity Tier 1 capital ratio	13.69%	13.58%	13.55%	6.50%
Tier 1 capital ratio	13.69%	13.58%	13.55%	8.00%
Total capital ratio	14.94%	14.83%	14.80%	10.00%

 

 

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SOURCE Pinnacle Bank

FAQ

What were Pinnacle Bank's Q2 2021 net income results?

Pinnacle Bank reported a net income of $2.4 million for Q2 2021.

How much did total deposits increase for Pinnacle Bank in Q2 2021?

Total deposits increased by 13% to $622.9 million in Q2 2021.

What was the change in gross loans for Pinnacle Bank in Q2 2021?

Gross loans decreased by 3% to $467.3 million in Q2 2021.

What capital ratio does Pinnacle Bank maintain as of June 30, 2021?

Pinnacle Bank has a capital ratio of 14.94% as of June 30, 2021.

How much did Pinnacle Bank's non-interest income increase in Q2 2021?

Non-interest income increased by 240% to $2.47 million in Q2 2021.