Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s third quarter results of operations.
- For the three months ended September 30, 2022, Pinnacle reported net income of $1,168,000 compared to $1,829,000 for the three months ended September 30, 2021.
- For the nine months ended September 30, 2022, Pinnacle reported net income of $3,488,000 compared to $3,720,000 for the nine months ended September 30, 2021.
- Included in net interest income for each of the three months ended September 30, 2022 and 2021 are Paycheck Protection Program (“PPP”) amortized loan fees of approximately $36,000 and $240,000, respectively. Included in net interest income for each of the nine months ended September 30, 2022 and 2021 are PPP amortized loan fees of approximately $226,000 and $431,000, respectively.
- Bank-owned life insurance income, which is included in non-interest income, was approximately $96,000 and $288,000 for the three months and nine months ended September 30, 2022 as compared to $820,000 and $1,015,000 for the three months and nine months ended September 30, 2021.
- Gain on sale of available for sales of securities in the amount of approximately $227,000 was recorded during both the three and nine months ended September 30, 2021. There were no gains on sale of available for sales of securities recorded during the three months and nine months ended September 30, 2022.
- Basic and diluted earnings per share for the three and nine months ended September 30, 2022 were $1.28 and $3.67 per share, respectively, compared to $1.88 and $3.82 per share, respectively, for the same periods last year.
- For the three and nine months ended September 30, 2022, return on average assets was 1.42%, and 1.37%, respectively, compared to 2.19% and 1.59%, respectively, in the comparable 2021 period.
Pinnacle’s net interest margin was 3.37% and 3.31% for the three and nine months ended September 30, 2022, respectively, compared to 3.52% and 3.49% for the three and nine months ended September 30, 2021, respectively.
At September 30, 2022, Pinnacle’s allowance for loan losses as a percent of total loans was 2.12%, compared to 2.02% at December 31, 2021. Nonperforming assets were $46,000 at September 30, 2022, compared to $30,000 at December 31, 2021. The ratio of nonperforming assets to total loans was .04% and .01% at September 30, 2022 and December 31, 2021, respectively. All capital ratios are higher than the requirements for a well-capitalized institution.
Dividends of $.25 and $.75 per share were paid to shareholders during the three and nine months ended for September 30, 2022 as compared to $.22 and $.66 per share paid during the three and nine months ended for September 30, 2021.
Effects of Inflation
Inflation has caused a substantial rise in interest rates during 2022 which has had a negative effect in the securities market. As a result of rising interest rates, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $30.4 million as compared to recording other comprehensive income in the amount of $1.5 million as of December 31, 2022. Thus, this has caused the decrease in total equity during 2022 even though net earnings has been strong. Although these unrealized losses recorded as of September 30, 2022 were significant, management does not anticipate these losses to be other than temporary as these unrealized losses do not currently appear related to any credit deterioration within the portfolio but from higher interest rates.
Forward-Looking Statements
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Pinnacle undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Pinnacle’s expectations. Certain tabular presentations may not reconcile because of rounding.
Pinnacle Bancshares, Inc.’s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama.
PINNACLE BANCSHARES, INC. Unaudited Financial Highlights (In Thousands, except share and per share data) |
||||||||
|
|
|
||||||
|
|
Three Months Ended September 30, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net income |
|
$ |
1,168,000 |
|
|
$ |
1,829,000 |
|
Basic and diluted earnings per share |
|
$ |
1.28 |
|
|
$ |
1.88 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.42 |
% |
|
|
2.19 |
% |
Return on average equity |
|
|
14.18 |
% |
|
|
22.21 |
% |
Interest rate spread |
|
|
3.26 |
% |
|
|
3.42 |
% |
Net interest margin |
|
|
3.37 |
% |
|
|
3.52 |
% |
Operating cost to assets |
|
|
2.23 |
% |
|
|
2.42 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
909,534 |
|
|
|
971,234 |
|
Dividends per share |
|
$ |
0.25 |
|
|
$ |
0.22 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net income |
|
$ |
3,488,000 |
|
|
$ |
3,720,000 |
|
Basic and diluted earnings per share |
|
$ |
3.67 |
|
|
$ |
3.82 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.37 |
% |
|
|
1.59 |
% |
Return on average equity |
|
|
13.36 |
% |
|
|
15.58 |
% |
Interest rate spread |
|
|
3.22 |
% |
|
|
3.40 |
% |
Net interest margin |
|
|
3.31 |
% |
|
|
3.49 |
% |
Operating cost to assets |
|
|
2.11 |
% |
|
|
2.30 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
949,699 |
|
|
|
972,740 |
|
Dividends per share |
|
$ |
0.75 |
|
|
$ |
0.66 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
(Audited) |
||||
|
|
September 30, 2022 |
|
December 31, 2021 |
||||
Total assets |
|
$ |
326,478,000 |
|
|
$ |
339,710,000 |
|
Loans receivable, net |
|
$ |
114,443,000 |
|
|
$ |
122,659,000 |
|
Deposits |
|
$ |
317,216,000 |
|
|
$ |
298,693,000 |
|
Brokered CD’s included in deposits |
|
$ |
11,752,000 |
|
|
$ |
24,937,000 |
|
Total stockholders’ equity |
|
$ |
4,375,000 |
|
|
$ |
35,659,000 |
|
Book value per share (excluding OCI) |
|
$ |
38.30 |
|
|
$ |
35.15 |
|
Average Stockholders’ equity to assets ratio (excluding OCI) |
|
|
10.22 |
% |
|
|
10.19 |
% |
|
|
|
|
|
||||
Asset quality ratios: |
|
|
|
|
||||
Nonperforming loans as a percent of total loans |
|
|
.04 |
% |
|
|
.01 |
% |
Nonperforming assets as a percent of total loans |
|
|
.04 |
% |
|
|
.01 |
% |
Allowance for loan losses as a percent of total loans |
|
|
2.12 |
% |
|
|
2.02 |
% |
Allowance for loan losses as a percent of nonperforming loans |
|
|
5,631.82 |
% |
|
|
8,460.00 |
% |
FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
||||||||
|
(Unaudited) |
|
(Audited) |
|||||
|
September 30, |
|
December 31, |
|||||
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|||||
Assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
1,909,869 |
|
|
|
1,730,327 |
|
|
Interest bearing deposits in banks |
|
7,040,876 |
|
|
|
11,146,497 |
|
|
Securities available for sale |
|
170,890,286 |
|
|
|
183,516,514 |
|
|
Restricted equity securities |
|
773,600 |
|
|
|
741,600 |
|
|
|
|
|
|
|||||
Loans |
|
116,921,751 |
|
|
|
125,196,462 |
|
|
Less Allowance for loan losses |
|
2,478,124 |
|
|
|
2,537,948 |
|
|
Loans, net |
|
114,443,627 |
|
|
|
122,658,514 |
|
|
|
|
|
|
|||||
Premises and equipment, net |
|
7,044,058 |
|
|
|
7,015,537 |
|
|
Right-of-use lease assets – operating |
|
422,266 |
|
|
|
493,627 |
|
|
Goodwill |
|
306,488 |
|
|
|
306,488 |
|
|
Bank owned life insurance |
|
10,110,360 |
|
|
|
9,822,441 |
|
|
Accrued interest receivable |
|
1,523,989 |
|
|
|
1,917,598 |
|
|
Other assets |
|
12,012,997 |
|
|
|
361,228 |
|
|
Total assets |
$ |
326,478,416 |
|
|
|
339,710,371 |
|
|
|
|
|
|
|||||
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Deposits |
|
|
|
|||||
Noninterest-bearing |
$ |
92,922,609 |
|
|
|
88,430,320 |
|
|
Interest-bearing |
|
224,292,897 |
|
|
210,262,213 |
|
||
Total deposits |
|
317,215,506 |
|
|
|
298,692,533 |
|
|
|
|
|
|
|||||
Subordinated debentures |
|
3,093,000 |
|
|
|
3,093,000 |
|
|
Accrued interest payable |
|
127,749 |
|
|
|
77,843 |
|
|
Operating lease liabilities |
|
422,266 |
|
|
|
493,627 |
|
|
Other liabilities |
|
1,244,783 |
|
|
|
1,694,225 |
|
|
Total liabilities |
|
322,103,304 |
|
|
|
304,051,228 |
|
|
|
|
|
|
|||||
Stockholders’ equity |
|
|
|
|||||
Common stock, par value $.01 per share; 2,400,000 |
||||||||
authorized; 1,872,313 issued; 909,534 and 970,791 shares |
||||||||
outstanding, respectively |
|
18,723 |
|
|
|
18,723 |
|
|
Additional paid‑in capital |
|
8,923,223 |
|
|
|
8,923,223 |
|
|
Treasury stock (962,779 and 901,522 shares, respectively) |
|
(15,588,799 |
) |
|
|
(13,533,621 |
) |
|
Retained earnings |
|
41,485,970 |
|
|
|
38,710,339 |
|
|
Accumulated other comprehensive income (loss), net of tax |
|
(30,464,005 |
) |
|
|
1,540,479 |
|
|
|
|
|
|
|||||
Total stockholders’ equity |
|
4,375,112 |
|
|
|
35,659,143 |
|
|
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ |
326,478,416 |
$ |
339,710,371 |
||||
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Interest income |
|
|
|
|
|
|
|
||||
Loans, including fees |
$ |
1,600,000 |
|
$ |
1,718,950 |
|
$ |
4,845,439 |
|
$ |
4,783,409 |
Securities available for sale |
|
1,405,805 |
|
|
1,113,658 |
|
|
3,987,827 |
|
|
3,145,204 |
Other interest |
|
52,659 |
|
|
15,752 |
|
|
98,418 |
|
|
26,804 |
Total interest income |
|
3,058,464 |
|
|
2,848,360 |
|
|
8,931,684 |
|
|
7,955,417 |
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
|
|
|
|
||||
Deposits |
|
155,403 |
|
|
94,842 |
|
|
386,708 |
|
|
283,524 |
Borrowings |
|
810 |
|
|
- |
|
|
810 |
|
|
795 |
Subordinated debentures |
|
38,600 |
|
|
37,550 |
|
|
113,910 |
|
|
113,600 |
Total interest expense |
|
194,813 |
|
|
132,392 |
|
|
501,428 |
|
|
397,919 |
|
|
|
|
|
|
|
|
||||
Net interest income |
|
2,863,651 |
|
|
2,715,968 |
|
|
8,430,256 |
|
|
7,557,498 |
Provision for loan losses |
|
- |
|
|
- |
|
|
- |
|
|
- |
Net interest income after provision |
|||||||||||
for loan losses |
|
2,863,651 |
|
|
2,715,968 |
|
|
8,430,256 |
|
|
7,557,498 |
|
|
|
|
|
|
|
|
||||
Other income |
|
|
|
|
|
|
|
||||
Fees and service charges on deposit accounts |
|
379,232 |
|
|
393,121 |
|
|
1,119,851 |
|
|
1,093,172 |
Service fee income, net |
|
837 |
|
|
992 |
|
|
2,534 |
|
|
3,051 |
Bank owned life insurance |
|
95,973 |
|
|
819,545 |
|
|
287,919 |
|
|
1,015,480 |
Mortgage fee income |
|
509 |
|
|
12,164 |
|
|
27,757 |
|
|
29,638 |
Net gain on securities available for sale |
|
- |
|
|
227,238 |
|
|
- |
|
|
227,238 |
Total other income |
|
476,551 |
|
|
1,453,060 |
|
|
1,438,061 |
|
|
2,368,579 |
|
|
|
|
|
|
|
|
||||
Other expense: |
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
1,017,682 |
|
|
1,072,154 |
|
|
3,069,520 |
|
|
2,996,969 |
Occupancy expense |
|
226,707 |
|
|
229,893 |
|
|
660,263 |
|
|
664,200 |
Marketing and professional expense |
|
72,903 |
|
|
65,957 |
|
|
201,568 |
|
|
198,121 |
Other operating expenses |
|
518,116 |
|
|
651,548 |
|
|
1,447,580 |
|
|
1,530,160 |
Total other expenses |
|
1,835,408 |
|
|
2,019,552 |
|
|
5,378,931 |
|
|
5,389,450 |
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
1,504,794 |
|
|
2,149,476 |
|
|
4,489,386 |
|
|
4,536,627 |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
336,763 |
|
|
320,111 |
|
|
1,000,976 |
|
|
816,550 |
|
|
|
|
|
|
|
|
||||
Net income |
$ |
1,168,031 |
|
$ |
1,829,365 |
|
$ |
3,488,410 |
|
$ |
3,720,077 |
|
|
|
|
|
|
|
|
||||
Cash dividend per share |
$ |
0.25 |
|
$ |
0.22 |
|
$ |
0.75 |
|
$ |
0.66 |
|
|
|
|
|
|
|
|
||||
Basic and diluted earnings per share |
$ |
1.28 |
|
$ |
1.88 |
|
$ |
3.67 |
|
$ |
3.82 |
|
|
|
|
|
|
|
|
||||
Weighted –average basic and diluted |
|||||||||||
shares outstanding |
|
909,534 |
|
|
971,234 |
|
|
949,699 |
|
|
997,740 |
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Nine Months Ended September 30, 2022 and 2021 |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|||||||||||
|
|
|
|
Additional |
|
|
|
|
|
Other |
|
Total |
|||||||||||
|
Common Stock |
|
Paid-in |
|
Treasury |
|
Retained |
|
Comprehensive |
|
Stockholders’ |
||||||||||||
|
Shares |
|
Amount |
|
Capital |
|
Stock |
|
Earnings |
|
Income |
|
Equity |
||||||||||
Balance December 31, 2010 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,345 |
) |
|
$ |
34,874,072 |
|
|
$ |
3,957,193 |
|
|
$ |
34,331,866 |
|
Net income |
- |
|
|
- |
|
|
- |
|
|
|
|
3,720,077 |
|
|
|
- |
|
|
|
3,720,077 |
|
||
Cash dividends declared |
|||||||||||||||||||||||
($.66 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(641,916 |
) |
|
|
- |
|
|
|
(641,916 |
) |
Purchase of treasury stock |
- |
|
|
- |
|
|
- |
|
|
(92,276 |
) |
|
|
- |
|
|
|
- |
|
|
|
(92,276 |
) |
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(1,512,090 |
) |
|
|
(1,512,090 |
) |
Balance September 30, 2021 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,533,621 |
) |
|
$ |
37,952,233 |
|
|
$ |
2,445,103 |
|
|
$ |
35,805,661 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|||||||||||
|
|
|
|
Additional |
|
|
|
|
|
Other |
|
Total |
|||||||||||
|
Common Stock |
|
Paid-in |
|
Treasury |
|
Retained |
|
Comprehensive |
|
Stockholders’ |
||||||||||||
|
Shares |
|
Amount |
|
Capital |
|
Stock |
|
Earnings |
|
Income (Loss) |
|
Equity |
||||||||||
Balance December 31, 2021 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,533,621 |
) |
|
$ |
38,710,339 |
|
|
$ |
1,540,479 |
|
|
$ |
35,659,143 |
|
Net income |
- |
|
|
- |
|
|
- |
|
|
|
|
3,488,410 |
|
|
|
- |
|
|
|
3,488,410 |
|
||
Cash dividends declared |
|||||||||||||||||||||||
($.75 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(712,779 |
) |
|
|
- |
|
|
|
(712,779 |
) |
Purchase of treasury stock |
- |
|
|
- |
|
|
- |
|
|
(2,055,178 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,055,178 |
) |
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(32,004,484 |
) |
|
|
(32,004,484 |
) |
Balance September 30, 2022 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(15,588,799 |
) |
|
$ |
41,485,970 |
|
|
$ |
(30,464,005 |
) |
|
$ |
4,375,112 |
|
PINNACLE BANCSHARES, INC,
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
|
||||||||
|
For the Nine Months Ended |
||||||||
|
September 30, |
||||||||
|
|
2022 |
|
|
|
2021 |
|
||
OPERATING ACTIVITIES: |
|
|
|
||||||
Net income |
$ |
3,488,410 |
|
|
$ |
3,720,077 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||||
Depreciation |
|
322,633 |
|
|
|
332,075 |
|
||
Net investment amortization expense |
|
163,944 |
|
|
|
239,487 |
|
||
Net (increase) decrease in bank owned life insurance |
|
(287,919 |
) |
|
|
565,062 |
|
||
Gain on sale of securities available for sale |
|
- |
|
|
|
(227,238 |
) |
||
Decrease in accrued interest receivable |
|
393,609 |
|
|
|
90,082 |
|
||
Increase (decrease) in accrued interest payable |
|
49,906 |
|
|
|
(55,607 |
) |
||
Net other operating activities |
|
(197,719 |
) |
|
|
915,738 |
|
||
Net cash provided by operating activities |
|
3,932,864 |
|
|
|
5,579,676 |
|
||
|
|
|
|
||||||
INVESTING ACTIVITIES: |
|
|
|
||||||
Net (increase) decrease in loans |
|
8,214,887 |
|
|
|
(14,698,376 |
) |
||
Net (increase) decrease in interest bearing deposits in other banks |
|
4,105,621 |
|
|
|
(1,537,109 |
) |
||
Purchase of securities available for sale |
|
(40,160,098 |
) |
|
|
(68,497,440 |
) |
||
Proceeds from sale of securities available for sale |
|
- |
|
|
|
7,752,740 |
|
||
Proceeds from maturing, calls, and payments received on securities available for sale |
|
8,714,406 |
|
|
|
12,328,077 |
|
||
Net (purchase) redemption of restricted equity securities |
|
(32,000 |
) |
|
|
69,500 |
|
||
Purchase of premises and equipment |
|
(351,154 |
) |
|
|
(841,123 |
) |
||
Net cash used in investing activities |
|
(19,508,338 |
) |
|
|
(65,423,731 |
) |
||
|
|
|
|
||||||
FINANCING ACTIVITIES: |
|
|
|
||||||
Net increase in deposits |
|
18,522,973 |
|
|
|
60,601,325 |
|
||
Purchase of treasury stock |
|
(2,055,178 |
) |
|
|
(92,276 |
) |
||
Payments of cash dividends |
|
(712,779 |
) |
|
|
(641,916 |
) |
||
Net cash provided by financing activities |
|
15,755,016 |
|
|
|
59,867,133 |
|
||
|
|
|
|
||||||
Net increase in cash and cash equivalents |
|
179,542 |
|
|
|
23,078 |
|
||
|
|
|
|
||||||
Cash and cash equivalents at beginning of period |
|
1,730,327 |
|
|
|
2,080,667 |
|
||
|
|
|
|
||||||
Cash and cash equivalents at end of period |
$ |
1,909,869 |
|
|
$ |
2,103,745 |
|
||
|
|
|
|
||||||
SUPPLEMENTAL DISCLOSURES: |
|
|
|
||||||
Cash paid during the period for: |
|
|
|
||||||
Interest |
$ |
451,522 |
|
|
$ |
453,526 |
|
||
Taxes |
$ |
1,008,568 |
|
|
$ |
713,000 |
|
||
|
|
|
|
||||||
OTHER NONCASH TRANSACTIONS |
|
|
|
||||||
Real estate acquired through foreclosure |
$ |
- |
|
|
$ |
- |
|
||
Internally financed sales of other real estate owned |
$ |
- |
|
|
$ |
- |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026006054/en/
Contacts
Joe B. Adams, III
Chief Financial Officer
(205) 221-8866
