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Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 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

 

$

-

 

 

$

-

 

 

Contacts

Joe B. Adams, III

Chief Financial Officer

(205) 221-8866

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