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 fourth quarter and year ended December 31, 2014:

• For the three months ended December 31, 2014, Pinnacle reported net income of $520,000, compared to $484,000 for the three months ended December 31, 2013.
• Net interest income before the provision for loan losses for the three months ended December 31, 2014 was $1,618,000, compared with $1,746,000 in the same period last year.
• For the year ended December 31, 2014, net income was $2,027,000, compared with net income of $1,942,000 in the prior year.
• Net interest income before the provision for loan losses for the year ended December 31, 2014, was $6,976,000, compared with $6,944,000 in the prior year.
• For the three months ended December 31, 2014, basic and diluted earnings were each $0.44 per share. For the same period in 2014, basic and diluted earnings were each $0.40 per share.
• Basic and diluted earnings were each $1.69 per share for the year ended December 31, 2014. For 2013, basic and diluted earnings were each $1.61 per share.

Mr. Nolen commented: “Our strategy is to continue to provide high quality products and services to, and practice relationship banking with, our customers who live and conduct business in our market area. We focus on loan quality which should enhance our performance in a challenging environment. Although loan growth has continued to be limited, our core deposits and asset quality ratios have remained strong, and we have conservatively managed our investment portfolio, which we expect will provide significant flexibility if loan volumes begin to increase.”

The Company’s net interest margin was 3.19% and 3.31% for the three months and year ended December 31, 2014, respectively, compared to 3.40% and 3.48% for the three months and year ended December 31, 2013, respectively.

Other income increased approximately $22,000 to $1,554,000 during 2014 from other income of $1,532,000 in 2013. Other expenses recorded during 2014 were $5,887,000 as compared to other expenses of $5,997,000 recorded in 2014.

At December 31, 2014, Pinnacle’s allowance for loan losses as a percent of total loans was 1.87%, compared to 1.56% at December 31, 2013. The allowance for loan losses as a percent of total loans increased during 2014 mainly due to the declines in outstanding loans as well as net recoveries of approximately $84,000.

At December 31, 2014, the allowance for loan losses as a percent of nonperforming loans was 202.05%, compared to 239.47% at December 31, 2013. Net charge-offs (recoveries) were ($84,000) in 2014, compared to $730,000 in the prior year. Nonperforming assets were $927,000 at December 31, 2014, compared to $1,165,000 at December 31, 2013. The ratio of nonperforming assets to total loans was 1.10% at December 31, 2014, compared to 1.25% at December 31, 2013.

Despite the Company’s good financial performance during the last three 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 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 December 31, 2014 2013 Net Income $ 520,000 $ 484,000 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 $ 0.11 $ 0.11 Provision for loan losses $ - $ 50,000 Basic earnings per share $ 0.44 $ .0.40 Diluted earnings per share $ 0.44 $ 0.40 Performance Ratios: (annualized) Return on average assets 0.94 % 0.88 % Return on average equity 8.88 % 8.74 % Interest rate spread 3.10 % 3.31 % Net interest margin 3.19 % 3.40 % Operating cost to assets 2.58 % 2.82 %

 

  For the Year Ended At December 31, 2014 2013 Net Income $ 2,027,000 $ 1,942,000 Weighted average basic shares outstanding 1,200,662 1,205,128 Weighted average diluted shares outstanding 1,200,662 1,205,128 Dividend per share $ 0.44 $ 0.33 Provision for loan losses $ 35,000 $ 150,000 Basic earnings per share $ 1.69 $ 1.61 Diluted earnings per share $ 1.69 $ 1.61 Performance Ratios: Return on average assets 0.91 % 0.90 % Return on average equity 8.76 % 8.69 % Interest rate spread 3.21 % 3.38 % Net interest margin 3.31 % 3.48 % Operating cost to assets 2.64 % 2.78 %     At December 31, 2014 2013 Total assets $ 219,031,000 $ 220,395,000 Loans receivable, net $ 82,684,000 $ 92,074,000 Deposits $ 190,005,000 $ 189,011,000 Total stockholders' equity $ 23,500,000 $ 21,889,000 Weighted average book value per share $ 20.61 $ 18.16 Total average stockholders' equity to asset ratio 10.39 % 10.35 % Asset Quality Ratios: Nonperforming loans as a percent of total loans .93 % .65 % Nonperforming assets as a percent of total Loans 1.10 % 1.25 % Allowance for loan losses as a percent of total loans 1.87 % 1.56 %

Allowance for loan losses as a percent of nonperforming loans

202.05 % 239.47 %      

Pinnacle Bancshares, Inc.Joe B. Adams, III, 205-221-4111Chief Financial Officer and SVP