Pinnacle Bancshares Announces Results for Third Quarter Ended September 30, 2021

About this update from Pinnacle Bancshares, Inc.

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s third quarter results of operations. For the three months ended September 30, 2021, Pinnacle reported net income of $1,829,000 compared to $712,000 for the three months ended September 30, 2020. For the nine months ended September 30, 2021, Pinnacle reported net income of $3,720,000 compared to $2,285,000 for the nine months ended September 30, 2020. Included in net interest income for each of the three months ended September 30, 2021 and 2020 are Paycheck Protection Program (“PPP”) amortized loan fees of approximately $240,000 and $97,000, respectively. Included in net interest income for each of the nine months ended September 30, 2021 and 2020 are PPP amortized loan fees of approximately $431,000 and $97,000, respectively. Bank-owned life insurance income, which is included in non-interest income, was approximately $820,000 and $1,015,000 for the three months and nine months ended September 30, 2021 as compared to $94,000 and $283,000 for the three months and nine months ended September 30, 2020. Gain on sale of available for sales of securities in the amount of approximately $227,000 was recorded during both the three and nine months ended September 30, 2021 as compared to $153,000 recorded during the nine months ended September 30, 2020. There were no gains on sale of available for sales of securities recorded during the three months ended September 30, 2020. The Bank used part of the PPP loan fee income to make contributions to charities in its local communities. This represented an increase of approximately $123,000 and $143,000 in non-interest expense for the three months and nine months ended September 30, 2021 and 2020, respectively. The charitable organizations used these contributions in part to assist our community in dealing with the continued adverse effects of COVID-19. Basic and diluted earnings per share for the three and nine months ended September 30, 2021 were $1.88 and $3.82 per share, respectively, compared to $0.72 and $2.29 per share, respectively, for the same periods last year. For the three and nine months ended September 30, 2021, return on average assets was 2.19%, and 1.59%, respectively, compared to 1.04% and 1.17%, respectively, in the comparable 2020 period. Pinnacle’s net interest margin was 3.52% and 3.49% for the three and nine months ended September 30, 2021, respectively, compared to 3.59% and 3.56% for the three and nine months ended September 30, 2020, respectively. At September 30, 2021, Pinnacle’s allowance for loan losses as a percent of total loans was 1.85%, compared to 2.13% at December 31, 2020. The allowance for loan losses as a percent of total loans, excluding PPP loans of approximately $7.6 million dollars, was 1.97% as of September 30, 2021. Nonperforming assets were $12,000 at September 30, 2021, compared to $130,000 at December 31, 2020. The ratio of nonperforming assets to total loans was .01% and .12% at September 30, 2021 and December 31, 2020, respectively. All capital ratios are higher than the requirements for a well-capitalized institution. Dividends of $.22 and $.66 per share were paid to shareholders during the three and nine months ended for September 30, 2021 as compared to $.19 and $.57 per share paid during the three and nine months ended for September 30, 2020. 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. 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. Unaudited Financial Highlights (In Thousands, except share and per share data)           Three Months Ended September 30,     2021   2020 Net income   $ 1,829,000     $ 712,000   Basic and diluted earnings per share   $ 1.88     $ 0.72             Performance ratios (annualized):         Return on average assets     2.19 %     1.04 % Return on average equity     22.21 %     9.58 % Interest rate spread     3.42 %     3.43 % Net interest margin     3.52 %     3.59 % Operating cost to assets     2.42 %     2.59 %           Weighted average basic and diluted shares outstanding     971,234       983,119   Dividends per share   $ 0.22     $ 0.19   Provision for loan losses   $ -     $ -             Nine Months Ended September 30,     2021   2020 Net income   $ 3,720,000     $ 2,285,000   Basic and diluted earnings per share   $ 3.82     $ 2.29             Performance ratios (annualized):         Return on average assets     1.59 %     1.17 % Return on average equity     15.58 %     10.30 % Interest rate spread     3.40 %     3.36 % Net interest margin     3.49 %     3.56 % Operating cost to assets     2.30 %     2.54 %           Weighted average basic and diluted shares outstanding     972,740       997,340   Dividends per share   $ 0.66     $ 0.57   Provision for loan losses   $ -     $ -           (Audited)     September 30, 2021   December 31, 2020 Total assets   $ 337,849,000     $ 275,742,000   Loans receivable, net   $ 124,127,000     $ 109,429,000   Deposits   $ 295,710,000     $ 235,109,000   Brokered CD’s included in deposits   $ 21,951,000     $ 14,980,000   Total stockholders’ equity   $ 35,806,000     $ 34,332,000   Book value per share   $ 36.88     $ 34.63   Average Stockholders’ equity to assets ratio (excluding OCI)     10.19 %     11.15 %           Asset quality ratios:         Nonperforming loans as a percent of total loans     .01 %     .12 % Nonperforming assets as a percent of total loans     .01 %     .12 % Allowance for loan losses as a percent of total loans     1.85 %     2.13 % Allowance for loan losses as a percent of nonperforming loans     19483.33 %     1,833.08 %             FINANCIAL INFORMATION   PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION     (Unaudited)   (Audited)   September 30,   December 31,   2021   2020         Assets       Cash and cash equivalents $ 2,103,745       2,080,667   Interest bearing deposits in banks   5,643,770       4,106,661   Securities available for sale   185,828,408       139,688,995   Restricted equity securities   716,000       785,500           Loans   126,465,696       111,811,886   Less Allowance for loan losses   2,338,233       2,382,799   Loans, net   124,127,463       109,429,087           Premises and equipment, net   7,064,494       6,555,446   Right-of-use lease assets – operating   517,297       587,970   Goodwill   306,488       306,488   Bank owned life insurance   9,731,814       10,296,876   Accrued interest receivable   1,400,944       1,491,026   Other assets   408,236       413,613   Total assets $ 337,848,659       275,742,329           Liabilities and Stockholders’ Equity       Deposits       Noninterest-bearing $ 88,074,409       72,897,929   Interest-bearing   207,635,647       162,210,802   Total deposits   295,710,056       235,108,731           Subordinated debentures   3,093,000       3,093,000   Accrued interest payable   90,219       145,826   Operating lease liabilities   517,297       587,970   Other liabilities   2,632,426       2,474,936   Total liabilities   302,042,998       241,410,463           Stockholders’ equity       Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 970,791 and 973,505 shares outstanding, respectively   18,723       18,723   Additional paid‑in capital   8,923,223       8,923,223   Treasury stock (901,522 and 898,808 shares, respectively)   (13,533,621 )     (13,441,345 ) Retained earnings   37,952,233       34,874,072   Accumulated other comprehensive income, net of tax   2,445,103     3,957,193         Total stockholders’ equity   35,805,661     34,331,866   Total liabilities and stockholders’ equity $ 337,848,659 $ 275,742,329     PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME               Three Months Ended   Nine Months Ended     September 30,   September 30,     2021   2020   2021   2020 Interest income               Loans, including fees $ 1,718,950   $ 1,558,204   $ 4,783,409   $ 4,433,232 Securities available for sale   1,113,658     858,000     3,145,204     2,591,275 Other interest   15,752     13,242     26,804     38,919 Total interest income   2,848,360     2,429,446     7,955,417     7,063,426                 Interest expense               Deposits   94,842     152,062     283,524     587,091 Borrowings   -     -     795     3,330 Subordinated debentures   37,550     35,000     113,600     113,310 Total interest expense   132,392     187,062     397,919     703,731                 Net interest income   2,715,968     2,242,384     7,557,498     6,359,695 Provision for loan losses   -     -     -     - Net interest income after provision for loan losses   2,715,968     2,242,384     7,557,498     6,359,695                 Other income               Fees and service charges on deposit accounts   393,121     318,078     1,093,172     986,071 Service fee income, net   992     1,255     3,051     4,048 Bank owned life insurance   819,545     94,186     1,015,480     282,558 Mortgage fee income   12,164     4,877     29,638     30,451 Net gain on securities available for sale   227,238     -     227,238     152,658 Total other income   1,453,060     418,396     2,368,579     1,455,786                 Other expense:               Salaries and employee benefits   1,072,154     970,728     2,996,969     2,845,648 Occupancy expense   229,893     215,986     664,200     633,969 Marketing and professional expense   65,957     67,725     198,121     195,786 Other operating expenses   651,548     521,130     1,530,160     1,287,460 Total other expenses   2,019,552     1,775,569     5,389,450     4,962,863                 Income before income taxes   2,149,476     885,211     4,536,627     2,852,618                 Income tax expense   320,111     172,982     816,550     567,774                 Net income $ 1,829,365   $ 712,229   $ 3,720,077   $ 2,284,844                 Cash dividend per share $ 0.22   $ 0.19   $ 0.66   $ 0.57                 Basic and diluted earnings per share $ 1.88   $ 0.72   $ 3.82   $ 2.29                 Weighted –average basic and diluted shares outstanding   971,234     983,119     972,740     997,340     PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Nine Months Ended September 30, 2021 and 2020                                               Accumulated             Additional           Other   Total   Common Stock   Paid-in   Treasury   Retained   Comprehensive   Stockholders’   Shares   Amount   Capital   Stock   Earnings   Income   Equity 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 -     -     -         2,284,844       -       2,284,844   Cash dividends declared ($.57 per share) -     -     -     -       (567,897 )     -       (567,897 ) Purchase of treasury stock -     -     -     (1,710,456 )     -       -       (1,710,456 ) Other comprehensive income -     -     -     -       -       2,801,152       2,801,152   Balance September 30, 2020 1,872,313   $ 18,723   $ 8,923,223   $ (13,441,344 )   $ 34,162,863     $ 3,931,730     $ 33,595,195                         Accumulated             Additional           Other   Total   Common Stock   Paid-in   Treasury   Retained   Comprehensive   Stockholders’   Shares   Amount   Capital   Stock   Earnings   Income   Equity Balance December 31, 2020 1,872,313   $ 18,723   $ 8,923,223   $ (13,441,345 )   $ 34,874,072     $ 3,957,193     $ 34,331,866   Net income -     -     -         3,720,077       -       3,720,077   Cash dividends declared ($.66 per share) -     -     -     -       (641,916 )     -       (641,916 ) Purchase of treasury stock -     -     -     (92,276 )     -       -       (92,276 ) Other comprehensive loss -     -     -     -       -       (1,512,090 )     (1,512,090 ) Balance September 30, 2021 1,872,313   $ 18,723   $ 8,923,223   $ (13,533,621 )   $ 37,952,233     $ 2,445,103     $ 35,805,661     PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     For the Nine Months Ended   September 30,   2021   2020 OPERATING ACTIVITIES:       Net income $ 3,720,077   $ 2,284,844   Adjustments to reconcile net income to net cash provided by operating activities:     Depreciation   332,075     298,504   Provision for loan losses   -     -   Net investment amortization expense   239,487     205,007   Net (increase) decrease in bank owned life insurance   565,062     (282,558 ) Gain on sale of securities available for sale   (227,238 )   (152,658 ) Decrease in accrued interest receivable   90,082     84,462   Increase (decrease) in accrued interest payable   (55,607 )   663   Net other operating activities   915,738     422,074   Net cash provided by operating activities   5,579,676     2,860,338         INVESTING ACTIVITIES:     Net increase in loans   (14,698,376 )   (23,788,381 ) Net increase (decrease) in interest bearing deposits in other banks (1,537,109 ) 332,822 Purchase of securities available for sale   (68,497,440 )   (34,701,151 ) Proceeds from sale of securities available for sale   7,752,740     2,732,970   Proceeds from maturing, sale and payments received on securities available for sale   12,328,077     12,330,031   Net redemption of restricted equity securities   69,500     34,000   Purchase of premises and equipment   (841,123 )     (201,178 ) Net cash used in investing activities   (65,423,731 )     (43,260,887 )       FINANCING ACTIVITIES:     Net increase in deposits   60,601,325     43,177,108   Purchase of treasury stock   (92,276 )   (1,710,456 ) Payments of cash dividends   (641,916 )   (567,897 ) Net cash provided by financing activities   59,867,133     40,898,755         Net increase in cash and cash equivalents   23,078     498,206         Cash and cash equivalents at beginning of period   2,080,667     1,814,912         Cash and cash equivalents at end of period $ 2,103,745   $ 2,313,118         SUPPLEMENTAL DISCLOSURES:     Cash paid during the period for:     Interest $ 453,526   $ 703,068   Taxes $ 713,000   $ 821,131         OTHER NONCASH TRANSACTIONS     Real estate acquired through foreclosure $ -   $ 86,400   Internally financed sales of other real estate owned $ -   $ -     View source version on businesswire.com: https://www.businesswire.com/news/home/20211026006171/en/

View stock analysis, news, and events for Pinnacle Bancshares, Inc.