Stocks & Financial News
Breaking financial news 24/7 courtesy of TradingCharts.com Inc. / TFC Commodity Charts
Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2024
For the three months ended March 31, 2024, Pinnacle's basic/diluted earnings per share was $1.06 as compared to $1.30 per share for the three months ended March 31, 2023 and $1.08 per share for the three months ended December 31, 2023. Net income for the three months ended March 31, 2024 was $964,000 as compared to $1,180,000 for the three months ended March 31, 2023 and $981,000 for the three months ended December 31, 2023. For the three months ended March 31, 2024, return on average assets was 1.14%, compared to 1.43% for the three months ended March 31, 2023 and 1.18% for the three months ended December 31, 2023.
The Company's net interest margin was 3.11% for the three months March 31, 2024, compared to 3.56% for the three months ended March 31, 2023. The Company anticipates that interest expense relating to its funding will continue to increase during 2024 as a result of several factors such as increased deposit exception pricing and increased deposit migration to higher yielding deposit products.
Mr. Nolen commented, "In response to concerns about liquidity and capital strength related to recent bank failures, we remain confident in our risk status. Our primary focus is, and will continue to be, the Bank's safety and soundness, and the protection of our depositors."
At March 31, 2024, the Company's allowance for loan losses as a percent of total loans was 2.02%, compared to 1.96% at December 31, 2023. There were no nonperforming assets at March 31, 2024 as well as at December 31, 2023.
Pinnacle Bank was classified as "well capitalized" at March 31, 2024. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of March 31, 2024, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 18.68% and its total capital ratio and Tier 1 leverage was 19.84% and 11.34%, respectively.
Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at March 31, 2024, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 109.25% as compared to our established minimal limit of 25%. In addition, the Bank provides access to additional FDIC insurance coverage for accounts that would otherwise exceed deposit insurance coverage.
The Company's total deposits at March 31, 2024 decreased $2.1 million, or less than 1%, as compared to December 31, 2023. As mentioned previously, pricing of deposits is anticipated to become more competitive and thus deposits could continue to decrease as they did during the first quarter 2024.
Dividends of $.27 per share were paid to shareholders during the first quarter of 2024 as well as the first quarter 2023.
Effects of Inflation
Inflation caused a substantial rise in interest rates during 2023 and 2022 which has had a negative effect in the securities market. As a result of rising interest rates, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $28.1 million as of March 31, 2024 as compared to $26.7 million as of December 31, 2023. Although these unrealized losses recorded as of March 31, 2024 and December 31, 2023 were significant, management does not anticipate these losses to be other than temporary as these unrealized losses do not currently appear related to any credit deterioration within the portfolio but from higher interest rates. In addition, these losses do not impact our regulatory capital ratios.
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. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company'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,
--------------------------------------------------------------------------------------------------------------------------
2024 2023
------------------------------- -------------------- ------------------------------- --------------------
Net Income $ 964,000 $ 1,180,000
909,534 909,534
Weighted average basic shares outstanding
909,534 909,534
Weighted average diluted shares outstanding
$ .27 $ .27
Dividend per share
$ - $ -
Provision for loan losses
$ 1.06 $ 1.30
Basic and diluted earnings per share
Performance Ratios: (annualized)
1.14 % 1.43 %
Return on average assets
9.85 % 13.17 %
Return on average equity
2.58 % 3.40 %
Interest rate spread
3.11 % 3.56 %
Net interest margin
2.36 % 2.40 %
Operating cost to assets
(Audited)
March 31, 2024 December 31, 2023
--------------------------------------------------- ---------------------------------------------------
$ 339,346,000 $ 342,578,000
Total assets
$ 119,774,000 $ 122,973,000
Loans receivable, net
$ 309,164,000 $ 311,339,000
Deposits
$ 11,907,000 $ 11,907,000
Brokered CD's included in deposits
$ 12,126,000 $ 12,787,000
Total stockholders' equity
$ 43.81 $ 43.02
Weighted average book value per share (excluding OCI)
11.54 % 11.25 %
Total average stockholders' equity to asset ratio (excluding OCI)
Asset Quality Ratios:
.00 % .00 %
Nonperforming loans as a percent of total loans
.00 % .00 %
Nonperforming assets as a percent of total loans
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(Unaudited) (Audited)
March 31, December 31,
2024 2023
---------------------------------------- ------------------------------------------------------------
Assets
---------------------------------------------------------------
Cash and cash equivalents $ 1,978,413 $ 2,190,793
Interest bearing deposits in banks 22,825,755 19,518,942
Securities available for sale 162,136,170 165,520,025
Restricted equity securities 843,100 836,200
Loans 122,199,276 125,433,112
Less allowance for loan losses 2,425,315 2,459,372
-------------------- -------------------- -------------------- --------------------
119,773,961 122,973,740
Loans, net
-------------------- -------------------- -------------------- --------------------
Premises and equipment, net 8,486,996 8,421,289
Operating right-of-use lease assets 291,700 302,171
Goodwill 306,488 306,488
Bank owned life insurance 10,705,511 10,601,839
Accrued interest receivable 1,532,754 2,107,189
Deferred tax assets, net 9,584,001 8,951,799
Other assets 881,605 847,912
-------------------- -------------------- -------------------- --------------------
$ 339,346,454 $ 342,578,387
Total assets
==================== ==================== ==================== ====================
Liabilities and Stockholders' Equity
---------------------------------------------------------------
Deposits:
Noninterest-bearing $ 90,107,848 $ 89,518,619
Interest-bearing 219,056,319 221,820,527
-------------------- -------------------- -------------------- --------------------
309,164,167 311,339,146
Total deposits
Subordinated debentures 3,093,000 3,093,000
Other borrowings 12,500,000 12,500,000
Accrued interest payable 864,537 1,392,273
Operating lease liabilities 291,700 302,171
Other liabilities 1,307,084 1,165,256
-------------------- -------------------- -------------------- --------------------
327,220,488 329,791,846
Total liabilities
-------------------- -------------------- -------------------- --------------------
Stockholders' equity
Common stock, $.01 par value, 2,400,000 shares authorized;
18,723 18,723
1,872,313 shares issued; 909,534 shares outstanding
Additional paid-in capital 8,923,223 8,923,223
Treasury stock, at cost (962,779 shares) (15,588,799) (15,588,799)
Retained earnings 46,490,252 45,772,256
Accumulated other comprehensive loss, net of tax (27,717,433) (26,338,862)
-------------------- -------------------- -------------------- --------------------
12,125,966 12,786,541
Total stockholders' equity
-------------------- -------------------- -------------------- --------------------
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 2024 and 2023
2024 2023
---------------------------------------- ----------------------------------------
Interest income
$ 2,026,371 $ 1,730,118
Loans, including fees
1,296,269 1,368,748
Taxable securities
40,019 43,741
Nontaxable securities
308,824 143,856
Other interest
-------------------- -------------------- -------------------- --------------------
3,671,483 3,286,463
Total interest income
-------------------- -------------------- -------------------- --------------------
Interest expense
760,947 227,051
Deposits
39,050 39,050
Subordinated debentures
178,803 2,209
Other borrowings
-------------------- -------------------- -------------------- --------------------
978,800 268,310
Total interest expense
-------------------- -------------------- -------------------- --------------------
2,962,683 3,018,153
Net interest income
Provision for loan losses - -
-------------------- -------------------- -------------------- --------------------
2,962,683 3,018,153
Net interest income after provision for loan losses
-------------------- -------------------- -------------------- --------------------
Other income
424,843 362,295
Fees and service charges on deposit accounts
743 771
Servicing fee income, net
103,672 98,806
Bank owned life insurance
2,131 5,703
Mortgage fee income
-------------------- -------------------- -------------------- --------------------
531,389 467,575
Total other income
-------------------- -------------------- -------------------- --------------------
Other expenses
1,137,415 1,135,798
Salaries and employee benefits
312,671 240,161
Occupancy expenses
74,863 68,819
Marketing and professional expenses
479,823 542,672
Other operating expenses
-------------------- -------------------- -------------------- --------------------
2,004,772 1,987,450
Total other expenses
-------------------- -------------------- -------------------- --------------------
1,219,300 1,498,278
Income before income taxes
Income tax expense 255,730 318,105
-------------------- -------------------- -------------------- --------------------
$ 963,570 $ 1,180,173
Net income
==================== ==================== ==================== ====================
Basic and diluted earnings per share $ 1.06 $ 1.30
==================== ==================== ==================== ====================
Cash dividends per share $ 0.27 $ 0.27
==================== ==================== ==================== ====================
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Three Months Ended March 31, 2024 and 2023
Accumulated Accumulated
Additional Additional Other Other Total Total
Common Stock Paid-in Paid-in Treasury Treasury Retained Retained Comprehensive Comprehensive Stockholders' Stockholders'
Shares Par Value Par Value Capital Capital Stock Stock Earnings Earnings Loss Loss Equity Equity
-------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Balance, December 31, 2012 1,872,313 $ $ 18,723 $ $ 8,923,223 $ $ (15,588,799) $ $ 42,274,372 $ $ (29,889,603) $ $ 5,737,916
- - - - 1,180,173 - 1,180,173
Net income
Cash dividends declared,
- - - - (245,574) - (245,574)
$0.27 per share
- - - - - 2,594,039 2,594,039
Other comprehensive income
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------- -------------------- --------------------
1,872,313 $ $ 18,723 $ $ 8,923,223 $ $ (15,588,799) $ $ 43,208,971 $ $ (27,295,564) $ $ 9,266,554
Balance, March 31, 2023
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------- -------------------- --------------------
Balance, December 31, 2023 1,872,313 $ $ 18,723 $ $ 8,923,223 $ $ (15,588,799) $ $ 45,772,256 $ $ (26,338,862) $ $ 12,786,541
- - - - 963,570 - 963,570
Net income
Cash dividends declared,
- - - - (245,574) - (245,574)
$0.27 per share
- - - - - (1,378,571) (1,378,571)
Other comprehensive loss
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------- -------------------- --------------------
PINNACLE BANCSHARES, INC.
AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2024 and 2023
2024 2023
---------------------------------------- ----------------------------------------
OPERATING ACTIVITIES
$ 963,570 $ 1,180,173
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
128,826 99,981
Depreciation
50,376 41,914
Net amortization of securities
(103,672) (98,806)
Bank owned life insurance
574,435 533,436
Decrease in accrued interest receivable
(527,736) 49,634
Increase (decrease) in accrued interest payable
31,716 86,332
Net other operating activities
-------------------- -------------------- -------------------- --------------------
1,117,515 1,892,664
Net cash provided by operating activities
-------------------- -------------------- -------------------- --------------------
INVESTING ACTIVITIES
3,199,779 (1,290,780)
Net (increase) decrease in loans
(3,306,813) (31,166)
Net increase in interest-bearing deposits in banks
1,399,125 2,473,516
Proceeds from maturing or callable securities available for sale
(6,900) 3,800
Net (purchase) redemption of restricted equity securities
(194,533) (518,500)
Purchase of premises and equipment
-------------------- -------------------- -------------------- --------------------
1,090,658 636,870
Net cash provided by investing activities
-------------------- -------------------- -------------------- --------------------
FINANCING ACTIVITIES
(2,174,979) (5,640,004)
Net decrease in deposits
- 3,600,000
Net increase in other borrowings
(245,574) (245,574)
Payment of cash dividends
-------------------- -------------------- -------------------- --------------------
(2,420,553) (2,285,578)
Net cash used in financing activities
-------------------- -------------------- -------------------- --------------------
Net increase (decrease) in cash and cash equivalents (212,380) 243,956
Cash and cash equivalents at beginning of year 2,190,793 1,742,938
-------------------- -------------------- -------------------- --------------------
Cash and cash equivalents at end of year $ 1,978,413 $ 1,986,894
==================== ==================== ==================== ====================
SUPPLEMENTAL DISCLOSURE
Cash paid during the year for:
$ 1,506,536 $ 218,676
Interest
$ - $ -
Taxes
OTHER NONCASH TRANSACTIONS
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423128258/en/
SOURCE: Pinnacle Bancshares, Inc.
<img alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&sty=20240423128258r1&sid=cmtx6&distro=nx&lang=en" style="width:0;height:0" />
Joe B. Adams, III Chief Financial Officer (205) 221-8866
COMTEX_451278112/1006/2024-04-23T08:00:01