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Press release content from Business Wire. The AP news staff was not involved in its creation.

Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2021

July 20, 2021 GMT

JASPER, Ala.--(BUSINESS WIRE)--Jul 20, 2021--

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, 2021, Pinnacle reported net income of $984,000 compared to $732,000 for the three months ended June 30, 2020. Paycheck Protection Program (“PPP”) loan fees recognized during the three months ended June 30, 2021 were $50,000.
  • For the six months ended June 30, 2021, Pinnacle reported net income of $1,891,000 compared to $1,573,000 for the six months ended June 30, 2020. There were $153,000 of net gains related to sale of securities available for sale included in the six months ended June 30, 2020. PPP loan fees recognized during the six months ended June 30, 2021 were $191,000.
  • Net interest income for the three and six months ended June 30, 2021, was $2,463,000 and $4,842,000, respectively, compared with $2,095,000 and $4,117,000 respectively, in the same periods last year.
  • Basic and diluted earnings per share for the three and six months ended June 30, 2021 were $1.01 and $1.94 per share, respectively, compared to $0.74 and $1.57 per share, respectively, for the same periods last year.
  • For the three and six months ended June 30, 2021, return on average assets was 1.26%, and 1.25%, respectively, compared to 1.11% and 1.24%, respectively, in the comparable 2020 period.

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Pinnacle’s net interest margin was 3.41% and 3.48% for the three and six months ended June 30, 2021, respectively, compared to 3.45% and 3.55% for the three and six months ended June 30, 2020, respectively.

At June 30, 2021, Pinnacle’s allowance for loan losses as a percent of total loans was 1.90%, compared to 2.13% at December 31, 2020. The allowance for loan losses as a percent of total loans, excluding PPP loans of approximately $10.5 million dollars, was 2.08% as of June 30, 2021. Nonperforming assets were $144,000 at June 30, 2021, compared to $130,000 at December 31, 2020. The ratio of nonperforming assets to total loans was .12% at both June 30, 2021 and December 31, 2020. All capital ratios are higher than the requirements for a well-capitalized institution.

Dividends of $.22 and $.44 were paid to shareholders during the three and six months ended for June 30, 2021, respectively as compared to $.19 and $.38 per share dividends that were paid to shareholders during the three and six months ended June 30, 2020.

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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.

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,

 

 

2021

 

2020

Net income

 

$

984,000

 

 

$

732,000

 

Basic and diluted earnings per share

 

$

1.01

 

 

$

0.74

 

 

 

 

 

 

Performance ratios (annualized):

 

 

 

 

Return on average assets

 

 

1.26

%

 

 

1.11

%

Return on average equity

 

 

12.44

%

 

 

9.95

%

Interest rate spread

 

 

3.31

%

 

 

3.25

%

Net interest margin

 

 

3.41

%

 

 

3.45

%

Operating cost to assets

 

 

2.17

%

 

 

2.41

%

 

 

 

 

 

Weighted average basic and diluted shares outstanding

 

 

973,505

 

 

 

989,670

 

Dividends per share

 

$

0.22

 

 

$

0.19

 

Provision for loan losses

 

$

-

 

 

$

-

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2021

 

2020

Net income

 

$

1,891,000

 

 

$

1,573,000

 

Basic and diluted earnings per share

 

$

1.94

 

 

$

1.57

 

 

 

 

 

 

Performance ratios (annualized):

 

 

 

 

Return on average assets

 

 

1.25

%

 

 

1.24

%

Return on average equity

 

 

12.09

%

 

 

10.67

%

Interest rate spread

 

 

3.38

%

 

 

3.33

%

Net interest margin

 

 

3.48

%

 

 

3.55

%

Operating cost to assets

 

 

2.24

%

 

 

2.51

%

 

 

 

 

 

Weighted average basic and diluted shares outstanding

 

 

973,505

 

 

 

1,004,529

 

Dividends per share

 

$

0.44

 

 

$

0.38

 

Provision for loan losses

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

(Audited)

 

 

June 30, 2021

 

December 31, 2020

Total assets

 

$

321,768,000

 

 

$

275,742,000

 

Loans receivable, net (includes $10.5M and $6.4M PPP loans, respectively)

 

$

120,912,000

 

 

$

109,429,000

 

Deposits

 

$

281,221,000

 

 

$

235,109,000

 

Brokered CD’s included in deposits

 

$

21,944,000

 

 

$

14,980,000

 

Total stockholders’ equity

 

$

34,345,000

 

 

$

34,332,000

 

Book value per share

 

$

35.28

 

 

$

34.63

 

Total average stockholders’ equity to assets ratio

 

 

10.37

%

 

 

11.15

%

 

 

 

 

 

Asset quality ratios:

 

 

 

 

Nonperforming loans as a percent of total loans

 

 

.12

%

 

 

.12

%

Nonperforming assets as a percent of total loans

 

 

.12

%

 

 

.12

%

Allowance for loan losses as a percent of total loans

 

 

1.90

%

 

 

2.13

%

Allowance for loan losses as a percent of nonperforming loans

 

 

1,625.69

%

 

 

1,833.08

%

FINANCIAL INFORMATION

PINNACLE BANCSHARES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

 

 

 

 

 

 

(Unaudited)

 

(Audited)

 

 

June 30,

 

December 31,

 

 

2021

 

2020

 

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

1,970,294

 

 

 

2,080,667

 

Interest bearing deposits in banks

 

13,669,405

 

 

 

4,106,661

 

Securities available for sale

 

163,944,535

 

 

 

139,688,995

 

Restricted equity securities

 

716,000

 

 

 

785,500

 

 

 

 

 

Loans

 

123,253,145

 

 

 

111,811,886

 

Less Allowance for loan losses

 

2,340,728

 

 

 

2,382,799

 

Loans, net

 

120,912,417

 

 

 

109,429,087

 

 

 

 

 

Premises and equipment, net

 

7,115,843

 

 

 

6,555,446

 

Right-of-use lease assets – operating

 

540,714

 

 

 

587,970

 

Goodwill

 

306,488

 

 

 

306,488

 

Bank owned life insurance

 

10,492,810

 

 

 

10,296,876

 

Accrued interest receivable

 

1,732,937

 

 

 

1,491,026

 

Other assets

 

366,151

 

 

 

413,613

 

Total assets

$

321,767,594

 

 

 

275,742,329

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Deposits

 

 

 

Noninterest-bearing

$

88,225,794

 

 

 

72,897,929

 

Interest-bearing

 

192,994,991

 

 

 

162,210,802

 

Total deposits

 

281,220,785

 

 

 

235,108,731

 

 

 

 

 

Subordinated debentures

 

3,093,000

 

 

 

3,093,000

 

Accrued interest payable

 

100,291

 

 

 

145,826

 

Operating lease liabilities

 

540,714

 

 

 

587,970

 

Other liabilities

 

2,467,389

 

 

 

2,474,936

 

Total liabilities

 

287,422,179

 

 

 

241,410,463

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 973,505 shares outstanding

 

18,723

 

 

 

18,723

 

Additional paid-in capital

 

8,923,223

 

 

 

8,923,223

 

Treasury stock (898,808 shares)

 

(13,441,345

)

 

 

(13,441,345

)

Retained earnings

 

36,336,441

 

 

 

34,874,072

 

Accumulated other comprehensive income, net of tax

 

2,508,373

 

 

 

3,957,193

 

 

 

 

 

Total stockholders’ equity

 

34,345,415

 

 

 

34,331,866

 

 

 

 

 

Total liabilities and stockholders’ equity

$

321,767,594

 

 

275,742,329 

PINNACLE BANCSHARES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2021

 

2020

 

2021

 

2020

Interest income

 

 

 

 

 

 

 

Loans, including fees

$

1,526,216

 

$

1,443,770

 

$

3,064,459

 

$

2,875,028

Securities available for sale

 

1,060,940

 

 

877,925

 

 

2,031,546

 

 

1,733,275

Other interest

 

5,420

 

 

6,545

 

 

11,052

 

 

25,677

Total interest income

 

2,592,576

 

 

2,328,240

 

 

5,107,057

 

 

4,633,980

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

Deposits

 

91,510

 

 

194,992

 

 

188,682

 

 

435,029

Borrowings and repurchase agreements

 

795

 

 

-

 

 

795

 

 

3,330

Subordinated debentures

 

37,550

 

 

38,210

 

 

76,050

 

 

78,310

Total interest expense

 

129,855

 

 

233,202

 

 

265,527

 

 

516,669

 

 

 

 

 

 

 

 

Net interest income

 

2,462,721

 

 

2,095,038

 

 

4,841,530

 

 

4,117,311

Provision for loan losses

 

-

 

 

-

 

 

-

 

 

-

Net interest income after provision for loan losses

 

2,462,721

 

 

2,095,038

 

 

4,841,530

 

 

4,117,311

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

Fees and service charges on deposit accounts

 

353,863

 

 

302,346

 

 

700,051

 

 

667,993

Service fee income, net

 

1,001

 

 

1,370

 

 

2,059

 

 

2,793

Bank owned life insurance

 

97,967

 

 

94,186

 

 

195,935

 

 

188,372

Mortgage fee income

 

14,987

 

 

13,568

 

 

17,474

 

 

25,574

Net gain on securities available for sale

 

-

 

 

-

 

 

-

 

 

152,658

Total other income

 

467,818

 

 

411,470

 

 

915,519

 

 

1,037,390

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

Salaries and employee benefits

 

965,842

 

 

934,378

 

 

1,924,815

 

 

1,874,920

Occupancy expense

 

212,163

 

 

216,278

 

 

434,307

 

 

417,983

Marketing and professional expense

 

67,527

 

 

68,815

 

 

132,164

 

 

128,061

Other operating expenses

 

445,711

 

 

377,090

 

 

878,612

 

 

766,330

Total other expenses

 

1,691,243

 

 

1,596,561

 

 

3,369,898

 

 

3,187,294

 

 

 

 

 

 

 

 

Income before income taxes

 

1,239,296

 

 

909,947

 

 

2,387,151

 

 

1,967,407

 

 

 

 

 

 

 

 

Income tax expense

 

255,536

 

 

177,943

 

 

496,439

 

 

394,792

 

 

 

 

 

 

 

 

Net income

$

983,760

 

$

732,004

 

$

1,890,712

 

$

1,572,615

 

 

 

 

 

 

 

 

Cash dividend per share

$

0.22

 

$

0.19

 

$

0.44

 

$

0.38

 

 

 

 

 

 

 

 

Basic and diluted earnings per share

$

1.01

 

$

0.74

 

$

1.94

 

$

1.57

 

 

 

 

 

 

 

 

Weighted –average basic and diluted shares outstanding

 

973,505

 

 

989,670

 

 

973,505

 

 

1,004,529

PINNACLE BANCSHARES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Six Months Ended June 30, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Other

 

Total

 

 

Common Stock

 

Paid-in

 

Treasury

 

Retained

 

Comprehensive

 

Stockholders’

 

 

Shares

 

Amount

 

Capital

 

Stock

 

Earnings

 

Income

 

Equity

Balance December 31, 2019

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(11,730,888

)

 

$

32,445,916

 

 

$

1,130,578

 

$

30,787,552

 

Net income

-

 

 

-

 

 

-

 

 

-

 

 

 

1,572,615

 

 

 

-

 

 

1,572,615

 

Cash dividends declared ($.38 per share)

-

 

 

-

 

 

-

 

 

-

 

 

 

(381,791

)

 

 

-

 

 

(381,791

)

Purchase of treasury stock

-

 

 

-

 

 

-

 

 

(1,337,258

)

 

 

-

 

 

 

-

 

 

(1,337,258

)

Other comprehensive income

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

1,686,621

 

 

1,686,621

 

Balance June 30, 2020

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(13,068,146

)

 

$

33,636,740

 

 

$

2,817,199

 

$

32,327,739

 

 

 

 

 

 

 

 

 

 

 

 

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

 

-

 

 

-

 

 

-

 

 

-

 

 

 

1,890,712

 

 

 

-

 

 

 

1,890,712

 

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

 

PINNACLE BANCSHARES, INC,

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

For the Six Months Ended

 

 

June 30,

 

 

2021

 

2020

OPERATING ACTIVITIES:

 

 

 

Net income

$

1,890,712

 

 

$

1,572,615

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

 

214,258

 

 

 

194,494

 

Net investment amortization expense

 

161,957

 

 

 

135,870

 

Bank owned life insurance

 

(195,935

)

 

 

(188,372

)

Gain on sale of securities available for sale

 

-

 

 

 

(152,657

)

Increase in accrued interest receivable

 

(241,911

)

 

 

(263,083

)

Decrease in accrued interest payable

 

(45,535

)

 

 

(19,792

)

Net other operating activities

 

727,798

 

 

 

604,568

 

Net cash provided by operating activities

 

2,511,344

 

 

 

1,883,643

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

Net increase in loans

 

(11,483,330

)

 

 

(22,815,467

)

Net increase in interest bearing deposits in other banks

 

(9,562,744

)

 

 

(4,036,821

)

Purchase of securities available for sale

 

(37,014,405

)

 

 

(21,737,575

)

Proceeds from sale of securities available for sale

 

-

 

 

 

2,732,970

 

Proceeds from maturing, sale and payments received on securities available for sale

 

10,460,206

 

 

 

6,973,469

 

Net redemption of restricted equity securities

 

69,500

 

 

 

34,000

 

Purchase of premises and equipment

 

(774,655

)

 

 

(186,138

)

Net cash used in investing activities

 

(48,305,428

)

 

 

(39,035,562

)

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

Net increase in deposits

 

46,112,054

 

 

 

39,217,770

 

Purchase of treasury stock

 

-

 

 

 

(1,337,258

)

Payments of cash dividends

 

(428,343

)

 

 

(381,791

)

Net cash provided by financing activities

 

45,683,711

 

 

 

37,498,721

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(110,373

)

 

 

346,802

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

2,080,667

 

 

 

1,814,912

 

 

 

 

 

Cash and cash equivalents at end of period

$

1,970,294

 

 

$

2,162,714

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

Cash paid during the period for:

 

 

 

Interest

$

311,062

 

 

$

536,461

 

Taxes

$

415,000

 

 

$

402,131

 

 

 

 

 

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/20210720005842/en/

CONTACT: Joe B. Adams, III

Chief Financial Officer

(205) 221-8866

KEYWORD: UNITED STATES NORTH AMERICA ALABAMA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES

SOURCE: Pinnacle Bancshares, Inc.

Copyright Business Wire 2021.

PUB: 07/20/2021 04:15 PM/DISC: 07/20/2021 04:16 PM

http://www.businesswire.com/news/home/20210720005842/en