PCLB Pinnacle Bancshares Inc (PK)

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, 2015:

• For the three months ended March 31, 2015, Pinnacle reported net income of $537,000, compared to $464,000 for the three months ended March 31, 2014.
• Net interest income after the provision for loan losses for the three months ended March 31, 2015, was $1,799,000, compared with $1,701,000 in the same period last year.
• For the three months ended March 31, 2015, basic and diluted earnings were each $0.46 per share. For the same period in 2014 basic and diluted earnings were each $0.39 per share.
• For the three months ended March 31, 2015, return on average assets was 0.96%, compared to 0.84% in the comparable 2014 period.

In the first quarter of 2015, Pinnacle’s net interest margin increased primarily due to larger amount of securities available for sale as well as increased loan volumes. In addition, the Company received approximately $12,000 in late fees and penalties from a nonaccrual loan that was paid off during the first quarter. The Company’s net interest margin was 3.48% for the three months March 31, 2015, compared to 3.40% for the three months ended March 31, 2014.

At March 31, 2015, Pinnacle’s allowance for loan losses as a percent of total loans was 1.81%, compared to 1.87% at December 31, 2014. At March 31, 2015, the allowance for loan losses as a percent of nonperforming loans was 254.91%, compared to 202.05% at December 31, 2014.

Dividends of $.11 per share was paid to shareholders during the first quarter of 2015 as well as the first quarter of 2014.

Despite the Company’s good financial performance during the last several years, Mr. Nolen cautioned investors that any negative changes to economic conditions could have an adverse effect on Pinnacle’s borrowers and their customers, which could adversely affect Pinnacle’s financial condition and results of operations.

Deterioration in local economic conditions in Pinnacle’s markets could drive losses beyond those which are provided for in the allowance for loan losses and result in a number of adverse consequences, including increases in loan delinquencies; increases in nonperforming assets; decreases in demand for Pinnacle’s products and services, which could affect Pinnacle’s liquidity position; and decreases in the value of the collateral securing Pinnacle’s loans, which could reduce customers’ borrowing power.

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           Three Months Ended March 31, 2015 2014 Net Income $ 537,000 $ 464,000 Weighted average basic shares outstanding 1,180,128 1,205,128 Weighted average diluted shares outstanding 1,180,128 1,205,128 Dividend per share $ .11 $ .11 Provision for loan losses $ - $ 35,000 Basic and diluted earnings per share $ 0.46 $ 0.39 Performance Ratios: (annualized) Return on average assets 0.96 % 0.84 % Return on average equity (excluding OCI) 9.03 % 8.11 % Interest rate spread 3.39 % 3.31 % Net interest margin 3.48 % 3.40 % Operating cost to assets 2.67 % 2.76 %   (Audited) March 31, 2015 December 31, 2014 Total assets $ 232,040,000 $ 219,031,000 Loans receivable, net $ 86,017,000 $ 82,684,000 Deposits $ 193,582,000 $ 190,197,000 Other borrowings $ 9,000,000 $ - Total stockholders' equity $ 25,439,000 $ 24,747,000 Weighted average book value per share (including OCI) $ 21.54 $ 20.61 Total stockholders' equity to asset ratio (excluding OCI) 10.47 % 10.39 % Asset Quality Ratios: Nonperforming loans as a percent of total loans .64 % .93 % Nonperforming assets as a percent of total Loans .73 % 1.10 % Allowance for loan losses as a percent of total loans 1.81 % 1.87 %

Allowance for loan losses as a percent of nonperforming loans

282.68 % 202.05 %            

PINNACLE BANCSHARES, INC.AND SUBSIDIARY

 

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

       

(Unaudited)

   

March 31,

December

2015 2014

Assets

Cash and cash equivalents $ 1,388,612 $ 1,430,862 Interest bearing deposits in banks 3,200,631 1,462,440 Securities available for sale 124,918,980 117,159,151 Restricted equity securities 1,127,100 822,200   Loans

87,600,577

84,259,997

Less allowance for loan losses   1,583,337     1,575,914   Loans, net   86,017,240    

82,684,083

    Other real estate owned 76,905 96,905 Premises and equipment, net 5,418,392 5,487,393 Goodwill 306,488 306,488 Bank owned life insurance 8,249,565 8,158,702

Accrued interest receivable

1,059,036 1,075,469 Other assets   277,059     346,874   Total assets $ 232,040,008   $ 219,030,567    

Liabilities and Stockholders’ Equity

Deposits: Noninterest-bearing $ 49,561,827 $ 43,668,702 Interest-bearing   144,019,685     146,528,707   Total deposits 193,581,512 190,197,409   Other borrowings 9,000,000 - Subordinated debentures 3,093,000 3,093,000 Accrued interest payable 95,706 93,062 Other liabilities   831,065     900,409   Total liabilities   206,601,283     194,283,880     Stockholders’ equity

Common stock, $.01 par value, 2,400,000 shares authorized; 1,872,313 shares issued; 1,180,828 shares outstanding

18,723 18,723 Additional paid-in capital 8,923,223 8,923,223 Treasury stock, at cost (692,185 shares) (8,380,575 ) (8,380,575 ) Retained earnings 23,345,578 22,938,150 Accumulated other comprehensive income, net of tax   1,531,776     1,247,166   Total stockholders’ equity   25,438,725     24,746,687     Total liabilities and stockholders’ equity $ 232,040,008   $ 219,030,567              

PINNACLE BANCSHARES, INC.AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended March 31, 2015 and 2014

        2015     2014 Interest income Loans, including fees $ 1,123,656 $ 1,124,393 Taxable securities 476,530 484,180 Nontaxable securities 334,996 272,878 Other interest   4,853   4,648 Total interest income   1,940,035   1,886,099   Interest expense Deposits 111,682 123,143 Borrowings and repurchase agreements 3,878 2,105 Subordinated debentures   25,500   24,949 Total interest expense   141,060   150,197   Net interest income 1,798,975 1,735,902 Provision for loan losses   -   35,000 Net interest income after provision for loan losses   1,798,975   1,700,902   Other income Fees and service charges on deposit accounts 234,953 254,837 Servicing fee income, net 5,533 7,766 Bank owned life insurance 90,863 87,272 Net gain on sales of other real estate owned - 17,361 Net gain on sales of premises and equipment 12,700 - Mortgage fee income   2,911   21,048 Total other income   346,960   388,284   Other expenses Salaries and employee benefits 788,818 747,646 Occupancy expenses 249,118 258,451 Marketing and professional expenses 74,560 102,447 Net loss on sales of other real estate owned 4,290 - Other operating expenses   400,487   435,321 Total other expenses   1,517,273   1,543,865   Income before income taxes 628,662 545,321   Income tax expense   91,420   81,567   Net income $ 537,242 $ 463,754   Basic and diluted earnings per share $ 0.46 $ 0.39   Cash dividends per share $ 0.11 $ 0.11 Weighted-average basic and diluted shares outstanding   1,180,128   1,205,128            

PINNACLE BANCSHARES, INC.AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITYThree Months Ended March 31, 2015 and 2014

           

 

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 $ (7,974,814 ) $ 21,438,680 $ (517,010 )

$

21,888,802

Net income - - - - 463,754 -

463,754

Cash dividends declared, $0.11 per share

(132,564 )

(132,564

)

Other comprehensive income -   -   -   -     -     743,958  

$

743,958

  Balance, March 31, 2014

1,872,313

18,723 $ 8,923,223 $ (7,974,814 ) $ 21,769,870 $ 226,948

$

22,963,950

 

Balance, December 31, 2014

1,872,313

$ 18,723 $ 8,923,223 $ (8,380,575 ) $ 22,938,150 $ 1,247,166

$

24,746,687

Net income - - - - 537,242 -

537,242

Cash dividends declared, $0.11 per share

- - - - (129,814 ) -

(129,814

)

Other comprehensive income -   -   -   -     -     284,610    

284,610

  Balance, March 31, 2015 1,872,313 $ 18,723 $ 8,923,223 $ (8,380,575 ) $ 23,345,578   $ 1,531,776  

$

25,438,725

             

PINNACLE BANCSHARES, INC.AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSThree Months Ended March 31, 2015 and 2014

        2015     2014 OPERATING ACTIVITIES Net income $ 537,242 $ 463,754 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 97,988 106,483 Provision for loan losses - 35,000 Net amortization of securities 138,774 115,268 Bank owned life insurance (90,863 ) (87,272 ) Gain on sale of loans held for sale - (21,048 ) (Gain) loss on sale and write down of real estate owned 4,290 (17,361 ) Gain on sale of premises and equipment (12,700 ) - Net proceeds from sales of loans held for sale - 21,048 Decrease in accrued interest receivable 16,433 12,127 Increase in accrued interest payable 2,644 11,873 Net other operating activities   (173,965 )   (323,828 ) Net cash provided by operating activities   519,843     316,044   INVESTING ACTIVITIES Net (increase) decrease in loans (3,333,157 ) 1,875,774 Net (increase) decrease in interest-bearing deposits in banks (1,738,191 ) 230,044 Purchase of securities available for sale (10,470,898 ) (11,334,799 ) Proceeds from maturing or callable securities available for sale 3,031,341 5,086,229 Net (purchase) redemption of restricted equity securities (304,900 ) 87,700 Purchase of premises and equipment (28,987 ) (50,550 ) Proceeds from sale of premises and equipment 12,700 - Proceeds from sales of other real estate owned   15,710     12,577   Net cash used in investing activities   (12,816,382 )   (4,093,205 )   FINANCING ACTIVITIES Net increase in deposits 3,384,103 8,091,534 Net increase (decrease) in other borrowings 9,000,000 (2,984,000 ) Decrease in repurchase agreements - (1,319,746 ) Payments of cash dividends   (129,814 )   (132,564 ) Net cash provided by financing activities   12,254,289     3,655,224     Net decrease in cash and cash equivalents (42,250 ) (121,757 )   Cash and cash equivalents at beginning of year   1,430,862     1,641,460     Cash and cash equivalents at end of year $ 1,388,612   $ 1,519,703     SUPPLEMENTAL DISCLOSURE Cash paid during the year for: Interest $ 138,416 $ 138,324 Taxes $ 218,624 $ 78,540 OTHER NONCASH TRANSACTIONS Internally financed sales of other real estate owned $ 0 $ 52,223      

Pinnacle Bancshares, Inc.Joe B. Adams, IIIChief Financial Officer(205) 221-8866