$PCLB Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2022Press Release | 04/27/2022
Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s results of operations for the first quarter ended March 31, 2022:
For the three months ended March 31, 2022, Pinnacle reported net income of $1,111,000, compared to $907,000 for the three months ended March 31, 2021.
Net interest income after the provision for loan losses for the three months ended March 31, 2022, was $2,735,000, compared with $2,379,000 in the same period last year.
Included in net interest income for the three months ended March 31, 2022 are Paycheck Protection Program (“PPP”) amortized loan fees of approximately $120,000 as compared to $141,000 for the three months ended March 31, 2021.
For the three months ended March 31, 2022, basic and diluted earnings per share were each $1.14. For the same period in 2021 basic and diluted earnings per share were each $0.93.
For the three months ended March 31, 2022, return on average assets was 1.29%, compared to 1.26% in the comparable 2021 period.
The Company’s net interest margin was 4.06% for the three months March 31, 2022, compared to 3.61% for the three months ended March 31, 2021.
At March 31, 2022, Pinnacle’s allowance for loan losses as a percent of total loans was 2.05%, compared to 2.02% at December 31, 2021. Excluding PPP loans of $2.2 million dollars and $4.3 million dollars, the allowance for loan losses as a percent of total loans as of March 31, 2022 and December 31, 2021, was both 2.09%. Nonperforming assets were $11,000 at March 31, 2022, compared to $30,000 at December 31, 2021. The ratio of nonperforming assets to total loans was .01% at March 31, 2022, and .01% at December 31, 2021.
Pinnacle was classified as “well capitalized” at March 31, 2022. All capital ratios are significantly higher than the requirements for a well-capitalized institution.
Dividends of $.25 per share were paid to shareholders during the first quarter of 2022 and $.22 per share during the first quarter 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-month period ended March 31, 2022 and March 31, 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.
AND SUBSIDIARY
UNAUDITED FINANCIAL HIGHLIGHTS
Three Months Ended March 31,
2022
2021
Net Income
$
1,110,760
$
907,000
Weighted average basic shares outstanding
970,791
973,505
Weighted average diluted shares outstanding
970,791
973,505
Dividend per share
$
.25
$
.22
Provision for loan losses
$
-
$
-
Basic and diluted earnings per share
$
1.14
$
0.93
Performance Ratios: (annualized)
Return on average assets
1.29
%
1.26
%
Return on average equity
12.96
%
11.90
%
Interest rate spread
4.01
%
3.51
%
Net interest margin
4.06
%
3.61
%
Operating cost to assets
2.06
%
2.33
%
(Audited)
March 31, 2022
December 31, 2021
Total assets
$
349,351,000
$
339,710,000
Loans receivable, net
$
120,432,000
$
122,659,000
Deposits
$
320,414,000
$
298,693,000
Brokered CD’s included in deposits
$
19,944,000
$
24,937,000
Total stockholders’ equity
$
23,851,000
$
35,659,000
Weighted average book value per share (excluding OCI)
$
36.04
$
35.15
Total average stockholders' equity to asset ratio
9.92
%
10.19
%
Asset Quality Ratios:
Nonperforming loans as a percent of total loans
.01
%
.01
%
Nonperforming assets as a percent of total loans
.01
%
.01
%
Allowance for loan losses as a percent of total loans
2.05
%
2.02
%
Allowance for loan losses as a percent of nonperforming loans
22936.36
%
8460.00
%
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(Unaudited)
(Audited)
March 31,
December 31,
2022
2021
Assets
Cash and cash equivalents
$
2,069,123
$
1,730,327
Interest bearing deposits in banks
17,111,285
11,146,497
Securities available for sale
185,344,095
183,516,514
Restricted equity securities
773,600
741,600
Loans
122,954,984
125,196,462
Less allowance for loan losses
2,522,536
2,537,948
Loans, net
120,432,448
122,658,514
Premises and equipment, net
6,929,559
7,015,537
Operating right-of-use lease assets
469,697
493,627
Goodwill
306,488
306,488
Bank owned life insurance
9,918,414
9,822,441
Accrued interest receivable
1,458,577
1,917,598
Other assets
4,537,826
361,228
Total assets
$
349,351,112
$
339,710,371
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing
$
91,773,265
$
88,430,320
Interest-bearing
228,640,848
210,262,213
Total deposits
320,414,113
298,692,533
Subordinated debentures
3,093,000
3,093,000
Accrued interest payable
92,745
77,843
Operating lease liabilities
469,697
493,627
Other liabilities
1,430,708
1,694,225
Total liabilities
325,500,263
304,051,228
Stockholders’ equity
Common stock, $.01 par value, 2,400,000 shares authorized;
1,872,313 shares issued; 970,791 shares outstanding
18,723
18,723
Additional paid-in capital
8,923,223
8,923,223
Treasury stock, at cost (901,522 shares)
(13,533,621
)
(13,533,621
)
Retained earnings
39,578,402
38,710,339
Accumulated other comprehensive income (loss), net of tax
(11,135,878
)
1,540,479
Total stockholders’ equity
23,850,849
35,659,143
Total liabilities and stockholders’ equity
$
349,351,112
$
339,710,371
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 2022 and 2021
2022
2021
Interest income
Loans, including fees
$
1,654,949
$
1,538,243
Taxable securities
1,179,914
912,113
Nontaxable securities
34,384
58,493
Other interest
10,321
5,632
Total interest income
2,879,568
2,514,481
Interest expense
Deposits
106,235
97,172
Subordinated debentures
38,600
38,500
Total interest expense
144,835
135,672
Net interest income
2,734,733
2,378,809
Provision for loan losses
-
-
Net interest income after provision for loan losses
2,734,733
2,378,809
Other income
Fees and service charges on deposit accounts
357,833
346,188
Servicing fee income, net
886
1,059
Bank owned life insurance
95,973
97,967
Mortgage fee income
14,361
2,487
Total other income
469,053
447,701
Other expenses
Salaries and employee benefits
1,025,583
958,973
Occupancy expenses
229,622
222,144
Marketing and professional expenses
64,901
64,637
Other operating expenses
461,841
432,901
Total other expenses
1,781,947
1,678,655
Income before income taxes
1,421,839
1,147,855
Income tax expense
311,079
240,903
Net income
$
1,110,760
$
906,952
Basic and diluted earnings per share
$
1.14
$
0.93
Cash dividends per share
$
0.25
$
0.22
Weighted-average basic and diluted shares outstanding
970,791
973,505
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three Months Ended March 31, 2022 and 2021
Accumulated
Additional
Other
Total
Common Stock
Paid-in
Treasury
Retained
Comprehensive
Stockholders’
Shares
Par Value
Capital
Stock
Earnings
Income (Loss)
Equity
Balance, December 31, 2012
1,872,313
$
18,723
$
8,923,223
$
(13,441,345
)
$
34,874,072
$
3,957,193
$
34,331,866
Net income
-
-
-
-
906,952
-
906,952
Cash dividends declared,
$0.22 per share
-
-
-
-
(214,171
)
-
(214,171
)
Other comprehensive loss
-
-
-
-
-
(2,924,470
)
(2,924,470
)
Balance, March 31, 2021
1,872,313
$
18,723
$
8,923,223
$
(13,441,345
)
$
35,566,853
$
1,032,723
$
32,100,177
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
-
-
-
-
1,110,760
-
1,110,760
Cash dividends declared,
$0.25 per share
-
-
-
-
(242,697
)
-
(242,697
)
Other comprehensive loss
-
-
-
-
-
(12,676,357
)
(12,676,357
)
Balance, March 31, 2022
1,872,313
$
18,723
$
8,923,223
$
(13,533,621
)
$
39,578,402
$
(11,135,878
)
$
23,850,849
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2022 and 2021
2022
2021
OPERATING ACTIVITIES
Net income
$
1,110,760
$
906,952
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation
115,917
103,599
Net amortization of securities
71,700
81,760
Bank owned life insurance
(95,973
)
(97,967
)
Decrease in accrued interest receivable
459,021
307,664
Increase (decrease) in accrued interest payable
14,902
(22,632
)
Net other operating activities
265,363
539,307
Net cash provided by operating activities
1,941,690
1,818,683
INVESTING ACTIVITIES
Net (increase) decrease in loans
2,226,066
(10,896,412
)
Net increase in interest-bearing deposits in banks
(5,964,788
)
(10,902,836
)
Purchase of securities available for sale
(20,435,341
)
(19,626,046
)
Proceeds from maturing or callable securities available for sale
1,154,225
6,103,652
Net (purchase) redemption of restricted equity securities
(32,000
)
69,500
Purchase of premises and equipment
(29,939
)
(469,528
)
Net cash used in investing activities
(23,081,777
)
(35,721,670
)
FINANCING ACTIVITIES
Net increase in deposits
21,721,580
34,077,734
Payments of cash dividends
(242,697
)
(214,171
)
Net cash provided by financing activities
21,478,883
33,863,563
Net increase (decrease) in cash and cash equivalents
338,796
(39,424
)
Cash and cash equivalents at beginning of year
1,730,327
2,080,667
Cash and cash equivalents at end of year
$
2,069,123
$
2,041,243
SUPPLEMENTAL DISCLOSURE
Cash paid during the year for:
Interest
$
129,933
$
158,304
Taxes
$
-
$
-
OTHER NONCASH TRANSACTIONS
Real estate acquired through foreclosure
$
-
$
-
