Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Dividend

Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2020


Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle's results of operations for the first quarter ended March 31, 2020:

The Company's net interest margin was 3.68% for the three months March 31, 2020, compared to 3.81% for the three months ended March 31, 2019.

At March 31, 2020, Pinnacle's allowance for loan losses as a percent of total loans was 2.12%, compared to 2.07% at December 31, 2019. At March 31, 2020, the allowance for loan losses as a percent of nonperforming loans was 1408.92%, compared to 1362.66% at December 31, 2019. Nonperforming assets were $157,000 at March 31, 2020, compared to $158,000 at December 31, 2019. The ratio of nonperforming assets to total loans was .15% at both March 31, 2020, and December 31, 2019.

Pinnacle was classified as "well capitalized" at March 31, 2020. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.19 per share were paid to shareholders during the first quarter of both 2020 and 2019.

The outbreak of the recent coronavirus ("COVID-19") , or an outbreak of another highly infectious or contagious disease, could adversely affect our business activities, financial condition and results of operations.

Our business is dependent upon the willingness and ability of our customers to conduct banking and other financial transactions. The spread of a highly infectious or contagious disease, such as COVID-19, could cause severe disruptions in the U.S. economy, which could in turn disrupt the business, activities, and operations of our customers, as well as our business and operations. Moreover, since the beginning of January 2020, the coronavirus outbreak has caused significant disruption in the financial markets both globally and in the United States. The spread of COVID-19, or an outbreak of another highly infectious or contagious disease, may result in a significant decrease in business and/or cause our customers to be unable to meet existing payment or other obligations to us, particularly in the event of a spread of COVID-19 or an outbreak of an infectious disease in our market area. Although we maintain contingency plans for pandemic outbreaks, a spread of COVID-19, or an outbreak of another contagious disease, could also negatively impact the availability of key personnel necessary to conduct our business activities. Such a spread or outbreak could also negatively impact the business and operations of third-party service providers who perform critical services for us. If COVID-19, or another highly infectious or contagious disease, spreads or the response to contain COVID-19 is unsuccessful, we could experience a material adverse effect to our business, financial condition, and results of operations.

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,

 

 

2020

 

 

 

2019

 

Net Income

$

841,000

 

 

$

665,000

 

Weighted average basic shares outstanding

 

1,019,389

 

 

 

1,039,479

 

Weighted average diluted shares outstanding

 

1,019,389

 

 

 

1,039,479

 

Dividend per share

$

.19

 

 

$

.19

 

Provision for loan losses

$

-

 

 

$

-

 

Basic and diluted earnings per share

$

0.82

 

 

$

0.64

 

Performance Ratios: (annualized)

 

 

 

Return on average assets

 

1.39

%

 

 

1.20

%

Return on average equity

 

11.44

%

 

 

9.48

%

Interest rate spread

 

3.45

%

 

 

3.59

%

Net interest margin

 

3.68

%

 

 

3.81

%

Operating cost to assets

 

2.64

%

 

 

2.81

%

 

 

 

 

 

 

 

(Audited)

 

March 31, 2020

 

December 31, 2019

Total assets

$

244,600,000

 

 

$

230,435,000

 

Loans receivable, net

$

102,092,000

 

 

$

101,500,000

 

Deposits

$

211,452,000

 

 

$

194,361,000

 

Brokered CD's included in deposits

$

17,985,000

 

 

$

17,915,000

 

Total stockholders' equity

$

28,111,000

 

 

$

30,788,000

 

Book value per share

$

28.31

 

 

$

29.81

 

Total average stockholders' equity to asset ratio

 

12.17

%

 

 

12.98

%

Asset Quality Ratios:

 

 

 

Nonperforming loans as a percent of total loans

 

.15

%

 

 

.15

%

Nonperforming assets as a percent of total loans

 

.15

%

 

 

.15

%

Allowance for loan losses as a percent of total loans

 

2.12

%

 

 

2.07

%

Allowance for loan losses as a percent of nonperforming loans

 

1408.92

%

 

 

1362.66

%

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

 

(Unaudited)

 

(Audited)

 

March 31,

 

December 31,

 

 

2020

 

 

 

2019

 

Assets

 

 

 

Cash and cash equivalents

$

2,289,416

 

 

$

1,814,912

 

Interest bearing deposits in banks

 

6,545,067

 

 

 

5,453,299

 

Securities available for sale

 

113,531,773

 

 

 

101,499,758

 

Restricted equity securities

 

732,300

 

 

 

766,300

 

 

 

 

 

Loans

 

104,303,582

 

 

 

104,101,700

 

Less allowance for loan losses

 

2,211,766

 

 

 

2,153,304

 

Loans, net

 

102,091,816

 

 

 

101,948,396

 

 

 

 

 

Premises and equipment, net

 

6,505,831

 

 

 

6,420,166

 

Operating right-of-use lease assets

 

657,934

 

 

 

681,306

 

Goodwill

 

306,488

 

 

 

306,488

 

Bank owned life insurance

 

10,014,319

 

 

 

9,920,133

 

Accrued interest receivable

 

1,083,080

 

 

 

1,280,926

 

Other assets

 

842,398

 

 

 

343,488

 

 

 

 

 

Total assets

$

244,600,422

 

 

$

230,435,172

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

57,389,076

 

 

$

55,071,909

 

Interest-bearing

 

154,062,531

 

 

 

139,289,249

 

Total deposits

 

211,451,607

 

 

 

194,361,158

 

 

 

 

 

Subordinated debentures

 

3,093,000

 

 

 

3,093,000

 

Accrued interest payable

 

249,930

 

 

 

244,875

 

Operating lease liabilities

 

657,934

 

 

 

681,306

 

Other liabilities

 

1,036,701

 

 

 

1,267,281

 

Total liabilities

 

216,489,172

 

 

 

199,647,620

 

 

 

 

 

Stockholders' equity

 

 

 

Common stock, $.01 par value, 2,400,000 shares authorized;

 

 

 

1,872,313 shares issued; 992,905 and 1,032,905 shares outstanding, respectively

 

18,723

 

 

 

18,723

 

Additional paid-in capital

 

8,923,223

 

 

 

8,923,223

 

Treasury stock, at cost (879,408 and 839,408 shares, respectively)

 

(12,904,300

)

 

 

(11,730,888

)

Retained earnings

 

33,092,173

 

 

 

32,445,916

 

Accumulated other comprehensive income (loss), net of tax

 

(1,018,569

)

 

 

1,130,578

 

Total stockholders' equity

 

28,111,250

 

 

 

30,787,552

 

 

 

 

 

Total liabilities and stockholders' equity

$

244,600,422

 

 

$

230,435,172

 

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31, 2020 and 2019

 

2020

 

2019

Interest income

 

 

 

 

 

Loans, including fees

$

1,431,258

 

$

1,429,293

Taxable securities

 

749,227

 

 

562,848

Nontaxable securities

 

106,123

 

 

159,498

Other interest

 

19,132

 

 

41,655

Total interest income

 

2,305,740

 

 

2,193,294

 

 

 

 

 

 

Interest expense

 

 

 

 

 

Deposits

 

240,037

 

 

188,069

Borrowings and repurchase agreements

 

3,330

 

 

17,312

Subordinated debentures

 

40,100

 

 

44,000

Total interest expense

 

283,467

 

 

249,381

 

 

 

 

 

 

Net interest income

 

2,022,273

 

 

1,943,913

Provision for loan losses

 

-

 

 

-

Net interest income after provision for loan losses

 

2,022,273

 

 

1,943,913

 

 

 

 

 

 

Other income

 

 

 

 

 

Fees and service charges on deposit accounts

 

365,647

 

 

327,284

Servicing fee income, net

 

1,423

 

 

1,714

Bank owned life insurance

 

94,186

 

 

90,006

Mortgage fee income

 

12,006

 

 

7,569

Net gain on sale of other real estate owed

 

-

 

 

967

Net gain on sale of securities available for sale

 

152,658

 

 

-

Total other income

 

625,920

 

 

427,540

 

 

 

 

 

 

Other expenses

 

 

 

 

 

Salaries and employee benefits

 

940,542

 

 

914,824

Occupancy expenses

 

201,705

 

 

197,299

Marketing and professional expenses

 

59,246

 

 

63,977

Other operating expenses

 

389,240

 

 

384,403

Total other expenses

 

1,590,733

 

 

1,560,503

 

 

 

 

 

 

Income before income taxes

 

1,057,460

 

 

810,950

 

 

 

 

 

 

Income tax expense

 

216,849

 

 

145,961

 

 

 

 

 

 

Net income

$

840,611

 

$

664,989

 

 

 

 

 

 

Basic and diluted earnings per share

$

0.82

 

$

0.64

 

 

 

 

 

 

Cash dividends per share

$

0.19

 

$

0.19

Weighted-average basic and diluted shares outstanding

 

1,019,389

1,039,479

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Three Months Ended March 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

Other

 

Total

Common Stock

 

Paid-in

 

Treasury

 

Retained

 

Comprehensive

 

Stockholders'

Shares

 

Par Value

 

Capital

 

Stock

 

Earnings

 

Income (Loss)

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(11,464,104

)

 

$

30,343,475

 

 

$

(614,718

)

 

$

27,206,599

 

Net income

-

 

 

-

 

 

-

 

 

-

 

 

 

664,989

 

 

 

-

 

 

 

664,989

 

Cash dividends declared,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0.19 per share

-

 

 

-

 

 

-

 

 

-

 

 

 

(197,335

)

 

 

-

 

 

 

(197,335

)

Purchase of treasury stock

-

 

 

-

 

 

-

 

 

(130,278

)

 

 

-

 

 

 

-

 

 

 

(130,278

)

Other comprehensive income

-

 

 

-

 

 

-

 

-

 

 

 

-

 

 

 

1,049,839

 

 

 

1,049,839

 

Balance, March 31, 2019

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(11,594,382

)

 

$

30,811,129

 

 

$

435,121

 

 

$

28,593,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

-

 

 

-

 

 

-

 

 

-

 

 

 

840,611

 

 

 

-

 

 

 

840,611

 

Cash dividends declared,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0.19 per share

-

 

 

-

 

 

-

 

 

-

 

 

 

(194,354

)

 

 

-

 

 

 

(194,354

)

Purchase of treasury stock

-

 

 

-

 

 

-

 

( 1,173,412

)

 

 

-

 

 

 

-

 

 

 

(1,173,412

)

Other comprehensive loss

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

(2,149,147

)

 

 

(2,149,147

)

Balance, March 31, 2020

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(12,904,300

)

 

$

33,092,173

 

 

$

(1,018,569

)

 

$

28,111,250

 

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2020 and 2019

 

 

2020

 

 

 

2019

 

OPERATING ACTIVITIES

 

 

 

Net income

$

840,611

 

 

$

664,989

 

Adjustments to reconcile net income to net cash

 

 

 

provided by operating activities:

 

 

 

Depreciation

 

95,319

 

 

 

83,553

 

Net amortization of securities

 

67,250

 

 

 

88,940

 

Gain on sale of securities available for sale

 

(152,658

)

 

 

-

 

Gain on sale of other real estate owned

 

-

 

 

 

(967

)

Bank owned life insurance

 

(94,186

)

 

 

(90,006

)

Decrease in accrued interest receivable

 

197,846

 

 

 

241,476

 

Increase (decrease) in accrued interest payable

 

5,055

 

 

 

(7,660

)

Net other operating activities

 

(444,397

)

 

 

14,856

 

Net cash provided by operating activities

 

514,840

 

 

 

995,181

 

INVESTING ACTIVITIES

 

 

 

Net increase in loans

 

(143,420

)

 

 

(2,427,397

)

Net increase in interest-bearing deposits in banks

 

(1,091,768

)

 

 

(4,071,504

)

Purchase of securities available for sale

 

(21,737,575

)

 

 

-

 

Proceeds from sales of securities available for sale

 

2,732,970

 

 

 

-

 

Proceeds from maturing or callable securities available for sale

 

4,623,758

 

 

 

1,467,090

 

Net redemption of restricted equity securities

 

34,000

 

 

 

188,500

 

Proceeds from sale of other real estate owned, net of expenses

 

-

 

 

 

9,999

 

Purchase of premises and equipment

 

(180,984

)

 

 

(148,177

)

Net cash used in investing activities

 

(15,763,019

)

 

 

(4,981,489

)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Net increase in deposits

 

17,090,449

 

 

 

8,890,606

 

Net decrease in other borrowings

 

-

 

 

 

(4,500,000

)

Purchase of treasury stock

 

(1,173,412

)

 

 

(130,278

)

Payments of cash dividends

 

(194,354

)

 

 

(197,335

)

Net cash provided by financing activities

 

15,722,683

 

 

 

4,062,993

 

 

 

 

 

Net increase in cash and cash equivalents

 

474,504

 

 

 

76,685

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

1,814,912

 

 

 

1,611,283

 

 

 

 

 

Cash and cash equivalents at end of year

$

2,289,416

 

 

$

1,687,968

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE

 

 

 

Cash paid during the year for:

 

 

 

Interest

$

278,412

 

 

$

257,041

 

Taxes

$

402,131

 

 

$

-

 

OTHER NONCASH TRANSACTIONS

 

 

 

Real estate acquired through foreclosure

$

-

 

 

$

9,032

 

 


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News published on 7 april 2020 at 13:35 and distributed by: