Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s second quarter results of operations.
- For the three months ended June 30, 2022, Pinnacle reported net income of $1,210,000 compared to $984,000 for the three months ended June 30, 2021.
- For the six months ended June 30, 2022, Pinnacle reported net income of $2,320,000 compared to $1,891,000 for the six months ended June 30, 2021. PPP loan fees recognized during the six months ended June 30, 2022 and 2021 were $190,000 and $191,000, respectively.
- Net interest income for the three and six months ended June 30, 2022, was $2,832,000 and $5,567,000, respectively, compared with $2,463,000 and $4,842,000 respectively, in the same periods last year.
- Basic and diluted earnings per share for the three and six months ended June 30, 2022 were $1.25 and $2.39 per share, respectively, compared to $1.01 and $1.94 per share, respectively, for the same periods last year.
- For the three and six months ended June 30, 2022, return on average assets was 1.39%, and 1.33%, respectively, compared to 1.26% and 1.25%, respectively, in the comparable 2021 period.
Pinnacle’s net interest margin was 3.28% for both the three and six months ended June 30, 2022, respectively, compared to 3.41% and 3.48% for the three and six months ended June 30, 2021, respectively.
At June 30, 2022, Pinnacle’s allowance for loan losses as a percent of total loans was 2.08%, compared to 2.02% at December 31, 2021. Excluding PPP loans of $376,000 and $4.3 million dollars, the allowance for loan losses as a percent of total loans as of June 30, 2022 and December 31, 2021, was 2.08% and 2.09%, respectively. Nonperforming assets were $60,000 at June 30, 2022, compared to $30,000 at December 31, 2021. The ratio of nonperforming assets to total loans was .05% and .01% at June 30, 2022 and December 31, 2021, respectively. All capital ratios are higher than the requirements for a well-capitalized institution.
Dividends of $.25 and $.50 were paid to shareholders during the three and six months ended for June 30, 2022, respectively as compared to $.22 and $.44 per share dividends that were paid to shareholders during the three and six months ended June 30, 2021.
Impact of COVID-19 on Our Business
As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which are likely to negatively impact the Company. The extent of COVID-19’s impact on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, the virus’ impact on the Company’s customers, employees and vendors, and vaccination supply and delivery. At this point, the extent to which COVID-19 may impact the Company’s financial condition or results of operations remains uncertain.
Effects of Inflation
We do not believe that inflation has had a material effect on our results of operations for the three- and six-months period ended June 30, 2022 and June 30, 2021; however, our business could be affected by inflation in the future which we plan to mitigate through a combination of pricing actions and operating efficiencies, although these actions could have an adverse impact on demand.
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 June 30, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net income |
|
$ |
1,210,000 |
|
|
$ |
984,000 |
|
Basic and diluted earnings per share |
|
$ |
1.25 |
|
|
$ |
1.01 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.39 |
% |
|
|
1.26 |
% |
Return on average equity (excluding OCI) |
|
|
13.82 |
% |
|
|
12.44 |
% |
Interest rate spread |
|
|
3.19 |
% |
|
|
3.31 |
% |
Net interest margin |
|
|
3.28 |
% |
|
|
3.41 |
% |
Operating cost to assets |
|
|
2.02 |
% |
|
|
2.17 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
969,445 |
|
|
|
973,505 |
|
Dividends per share |
|
$ |
0.25 |
|
|
$ |
0.22 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
||||||
|
|
Six Months Ended June 30, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net income |
|
$ |
2,320,000 |
|
|
$ |
1,891,000 |
|
Basic and diluted earnings per share |
|
$ |
2.39 |
|
|
$ |
1.94 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.33 |
% |
|
|
1.25 |
% |
Return on average equity (excluding OCI) |
|
|
13.30 |
% |
|
|
12.09 |
% |
Interest rate spread |
|
|
3.20 |
% |
|
|
3.38 |
% |
Net interest margin |
|
|
3.28 |
% |
|
|
3.48 |
% |
Operating cost to assets |
|
|
2.03 |
% |
|
|
2.24 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
970,114 |
|
|
|
973,505 |
|
Dividends per share |
|
$ |
0.50 |
|
|
$ |
0.44 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
||||
|
|
|
|
(Audited) |
||||
|
|
June 30, 2022 |
|
December 31, 2021 |
||||
Total assets |
|
$ |
339,113,000 |
|
|
$ |
339,710,000 |
|
Loans receivable, net (includes $376k and $4.3M PPP loans, respectively) |
|
$ |
118,893,000 |
|
|
$ |
122,659,000 |
|
Deposits |
|
$ |
323,835,000 |
|
|
$ |
298,693,000 |
|
Brokered CD’s included in deposits |
|
$ |
11,748,000 |
|
|
$ |
24,937,000 |
|
Total stockholders’ equity |
|
$ |
10,614,000 |
|
|
$ |
35,659,000 |
|
Book value per share (excluding OCI) |
|
$ |
35.28 |
|
|
$ |
35.15 |
|
Total average stockholders’ equity to assets ratio (excluding OCI) |
|
|
9.98 |
% |
|
|
10.19 |
% |
|
|
|
|
|
||||
Asset quality ratios: |
|
|
|
|
||||
Nonperforming loans as a percent of total loans |
|
|
.05 |
% |
|
|
.01 |
% |
Nonperforming assets as a percent of total loans |
|
|
.05 |
% |
|
|
.01 |
% |
Allowance for loan losses as a percent of total loans |
|
|
2.08 |
% |
|
|
2.02 |
% |
Allowance for loan losses as a percent of nonperforming loans |
|
|
4,210.00 |
% |
|
|
8,460.00 |
% |
FINANCIAL INFORMATION |
|||||||
PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
|||||||
|
(Unaudited) |
|
(Audited) |
||||
|
June 30, |
|
December 31, |
||||
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
2,025,947 |
|
|
|
1,730,327 |
|
Interest bearing deposits in banks |
|
10,943,513 |
|
|
|
11,146,497 |
|
Securities available for sale |
|
177,731,521 |
|
|
|
183,516,514 |
|
Restricted equity securities |
|
773,600 |
|
|
|
741,600 |
|
|
|
|
|
||||
Loans |
|
121,419,789 |
|
|
|
125,196,462 |
|
Less Allowance for loan losses |
|
2,526,489 |
|
|
|
2,537,948 |
|
Loans, net |
|
118,893,300 |
|
|
|
122,658,514 |
|
|
|
|
|
||||
Premises and equipment, net |
|
7,001,270 |
|
|
|
7,015,537 |
|
Right-of-use lease assets – operating |
|
445,911 |
|
|
|
493,627 |
|
Goodwill |
|
306,488 |
|
|
|
306,488 |
|
Bank owned life insurance |
|
10,014,387 |
|
|
|
9,822,441 |
|
Accrued interest receivable |
|
1,969,592 |
|
|
|
1,917,598 |
|
Other assets |
|
9,007,475 |
|
|
|
361,228 |
|
Total assets |
$ |
339,113,004 |
|
|
|
339,710,371 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Deposits |
|
|
|
||||
Noninterest-bearing |
$ |
92,010,352 |
|
|
|
88,430,320 |
|
Interest-bearing |
|
231,824,569 |
|
|
210,262,213 |
|
|
Total deposits |
|
323,834,921 |
|
|
|
298,692,533 |
|
|
|
|
|
||||
Subordinated debentures |
|
3,093,000 |
|
|
|
3,093,000 |
|
Accrued interest payable |
|
92,702 |
|
|
|
77,843 |
|
Operating lease liabilities |
|
445,911 |
|
|
|
493,627 |
|
Other liabilities |
|
1,032,550 |
|
|
|
1,694,225 |
|
Total liabilities |
|
328,499,084 |
|
|
|
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 |
|
40,545,323 |
|
|
|
38,710,339 |
|
Accumulated other comprehensive income (loss), net of tax |
|
(23,284,550 |
) |
|
|
1,540,479 |
|
|
|
|
|
||||
Total stockholders’ equity |
|
10,613,920 |
|
|
|
35,659,143 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
339,113,004 |
|
$ |
339,710,371 |
||
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
June 30, |
|
June 30, |
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Interest income |
|
|
|
|
|
|
|
||||
Loans, including fees |
$ |
1,590,490 |
|
$ |
1,526,216 |
|
$ |
3,245,439 |
|
$ |
3,064,459 |
Securities available for sale |
|
1,367,724 |
|
|
1,060,940 |
|
|
2,582,022 |
|
|
2,031,546 |
Other interest |
|
35,438 |
|
|
5,420 |
|
|
45,759 |
|
|
11,052 |
Total interest income |
|
2,993,652 |
|
|
2,592,576 |
|
|
5,873,220 |
|
|
5,107,057 |
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
|
|
|
|
||||
Deposits |
|
125,070 |
|
|
91,510 |
|
|
231,305 |
|
|
188,682 |
Borrowings and repurchase agreements |
|
- |
|
|
795 |
|
|
- |
|
|
795 |
Subordinated debentures |
|
36,710 |
|
|
37,550 |
|
|
75,310 |
|
|
76,050 |
Total interest expense |
|
161,780 |
|
|
129,855 |
|
|
306,615 |
|
|
265,527 |
|
|
|
|
|
|
|
|
||||
Net interest income |
|
2,831,872 |
|
|
2,462,721 |
|
|
5,566,605 |
|
|
4,841,530 |
Provision for loan losses |
|
- |
|
|
- |
|
|
- |
|
|
- |
Net interest income after provision for loan losses |
|
2,831,872 |
|
|
2,462,721 |
|
|
5,566,605 |
|
|
4,841,530 |
|
|
|
|
|
|
|
|
||||
Other income |
|
|
|
|
|
|
|
||||
Fees and service charges on deposit accounts |
|
382,786 |
|
|
353,863 |
|
|
740,619 |
|
|
700,051 |
Service fee income, net |
|
811 |
|
|
1,001 |
|
|
1,697 |
|
|
2,059 |
Bank owned life insurance |
|
95,973 |
|
|
97,967 |
|
|
191,946 |
|
|
195,935 |
Mortgage fee income |
|
12,887 |
|
|
14,987 |
|
|
27,248 |
|
|
17,474 |
Total other income |
|
492,457 |
|
|
467,818 |
|
|
961,510 |
|
|
915,519 |
|
|
|
|
|
|
|
|
||||
Other expense: |
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
1,026,255 |
|
|
965,842 |
|
|
2,051,838 |
|
|
1,924,815 |
Occupancy expense |
|
203,934 |
|
|
212,163 |
|
|
433,556 |
|
|
434,307 |
Marketing and professional expense |
|
63,764 |
|
|
67,527 |
|
|
128,665 |
|
|
132,164 |
Other operating expenses |
|
467,623 |
|
|
445,711 |
|
|
929,464 |
|
|
878,612 |
Total other expenses |
|
1,761,576 |
|
|
1,691,243 |
|
|
3,543,523 |
|
|
3,369,898 |
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
1,562,753 |
|
|
1,239,296 |
|
|
2,984,592 |
|
|
2,387,151 |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
353,134 |
|
|
255,536 |
|
|
664,213 |
|
|
496,439 |
|
|
|
|
|
|
|
|
||||
Net income |
$ |
1,209,619 |
|
$ |
983,760 |
|
$ |
2,320,379 |
|
$ |
1,890,712 |
|
|
|
|
|
|
|
|
||||
Cash dividend per share |
$ |
0.25 |
|
$ |
0.22 |
|
$ |
0.50 |
|
$ |
0.44 |
|
|
|
|
|
|
|
|
||||
Basic and diluted earnings per share |
$ |
1.25 |
|
$ |
1.01 |
|
$ |
2.39 |
|
$ |
1.94 |
|
|
|
|
|
|
|
|
||||
Weighted –average basic and diluted shares outstanding |
|
969,445 |
|
|
973,505 |
|
|
970,114 |
|
|
973,505 |
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Six Months Ended June 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, 2020 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,345 |
) |
|
$ |
34,874,072 |
|
|
$ |
3,957,193 |
|
|
$ |
34,331,866 |
|
Net income |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
1,572,615 |
|
|
|
- |
|
|
|
1,572,615 |
|
Cash dividends declared ($.44 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(428,343 |
) |
|
|
- |
|
|
|
(428,343 |
) |
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(1,448,820 |
) |
|
|
(1,448,820 |
) |
Balance June 30, 2021 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(13,441,345 |
) |
|
$ |
36,336,441 |
|
|
$ |
2,508,373 |
|
|
$ |
34,345,415 |
|
|
|
|
|
|
|
|
|
|
|
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 |
- |
|
- |
|
- |
|
- |
|
2,320,379 |
|
- |
|
2,320,379 |
Cash dividends declared ($.50 per share) |
- |
|
- |
|
- |
|
- |
|
(485,395) |
|
- |
|
(485,395) |
Purchase of treasury stock |
- |
|
- |
|
- |
|
(2,055,178) |
|
- |
|
- |
|
(2,055,178) |
Other comprehensive loss |
- |
|
- |
|
- |
|
- |
|
- |
|
(24,825,029) |
|
(24,825,029) |
Balance June 30, 2022 |
1,872,313 |
|
$ 18,723 |
|
$ 8,923,223 |
|
$ (15,588,799) |
|
$ 40,545,323 |
|
$ (23,284,550) |
|
$ 10,613,920 |
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
For the Six Months Ended |
||||||
|
June 30, |
||||||
|
|
2022 |
|
|
|
2021 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net income |
$ |
2,320,379 |
|
|
$ |
1,890,712 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
220,219 |
|
|
|
214,258 |
|
Net investment amortization expense |
|
121,027 |
|
|
|
161,957 |
|
Bank owned life insurance |
|
(191,946 |
) |
|
|
(195,935 |
) |
Increase in accrued interest receivable |
|
(51,994 |
) |
|
|
(241,911 |
) |
Increase (decrease) in accrued interest payable |
|
14,859 |
|
|
|
(45,535 |
) |
Net other operating activities |
|
(128,162 |
) |
|
|
727,798 |
|
Net cash provided by operating activities |
|
2,304,382 |
|
|
|
2,511,344 |
|
|
|
|
|
||||
INVESTING ACTIVITIES: |
|
|
|
||||
Net (increase) decrease in loans |
|
3,765,214 |
|
|
|
(11,483,330 |
) |
Net (increase) decrease in interest bearing deposits in other banks |
|
202,984 |
|
|
|
(9,562,744 |
) |
Purchase of securities available for sale |
|
(32,299,292 |
) |
|
|
(37,014,405 |
) |
Proceeds from maturing, sale and payments received on securities available for sale |
|
3,958,469 |
|
|
|
10,460,206 |
|
Net (purchase) redemption of restricted equity securities |
|
(32,000 |
) |
|
|
69,500 |
|
Purchase of premises and equipment |
|
(205,952 |
) |
|
|
(774,655 |
) |
Net cash used in investing activities |
|
(24,610,577 |
) |
|
|
(48,305,428 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES: |
|
|
|
||||
Net increase in deposits |
|
25,142,388 |
|
|
|
46,112,054 |
|
Purchase of treasury stock |
|
(2,055,178 |
) |
|
|
- |
|
Payments of cash dividends |
|
(485,395 |
) |
|
|
(428,343 |
) |
Net cash provided by financing activities |
|
22,601,815 |
|
|
|
45,683,711 |
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
295,620 |
|
|
|
(110,373 |
) |
|
|
|
|
||||
Cash and cash equivalents at beginning of period |
|
1,730,327 |
|
|
|
2,080,667 |
|
|
|
|
|
||||
Cash and cash equivalents at end of period |
$ |
2,025,947 |
|
|
$ |
1,970,294 |
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES: |
|
|
|
||||
Cash paid during the period for: |
|
|
|
||||
Interest |
$ |
291,756 |
|
|
$ |
311,062 |
|
Taxes |
$ |
677,568 |
|
|
$ |
415,000 |
|
|
|
|
|
||||
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/20220726006135/en/
Contacts
Joe B. Adams, III
Chief Financial Officer
(205) 221-8866
