Coordinator funds

Pinnacle Bank announces its 2020 results

GILROY, Calif., Jan.28, 2021 / PRNewswire / – Pinnacle Bank (OTCQX: PBNK), which is headquartered in Gilroy, Calif., today reported unaudited net income for the year ended December 31, 2020 of $ 3,941,000, down 30% from net income 2019 of $ 5,564,000. Unaudited net income for the fourth quarter of 2020 was $ 1,411,000, compared to $ 1,348,000 in the third quarter of 2020 and $ 1,404,000 in the fourth quarter of 2019. Public health and economic uncertainties that existed during a much of 2020 was the basis of an allowance for loan losses. of $ 2,070,000 for 2020 compared to $ 280,000 for 2019.

As of December 31, 2020, total assets were $ 616.8 million, an increase of 47% from $ 419.4 million as of December 31, 2019.

Gross loans amounted to $ 487.0 million as at December 31, 2020, an increase of $ 151.1 million (45%) from the balance of $ 335.9 million as at December 31, 2019. Loans gross Paycheck Protection Program (PPP) as of December 31, 2020 was $ 110.2 million. Excluding PPP loans, gross loans increased $ 40.9 million or 12%. The allowance for loan losses as at December 31, 2020 was $ 6.1 million or 1.27% of net loans (1.65% of net loans excluding PPP loans) compared to $ 3.9 million or 1. 19% of net loans as of December 31, 2019.

Total deposits as of December 31, 2020 increased to $ 544.2 million from $ 356.5 million as of December 31, 2019, an increase of 53%.

“Pinnacle Bank ended 2020 with a strong fourth quarter and strong growth for the year. The year was marked by supporting our clients with more than 400 PPP loans and by the growth of loans and deposits. Growth opportunities continue in our communities, as evidenced by our loan growth of 12% excluding PPP loans. We remain optimistic about the economic vitality and resilience of our region, while remaining mindful of those negatively affected. Clients continue to turn to Pinnacle Bank for our relationship approach delivered by experienced bankers, as evidenced by our strong organic growth in loans and deposits. In addition, our Silicon Valley office opened in the fourth quarter, ”said Jeffrey Payne, President and CEO. “We are honored to contribute to the success of our communities by providing banking services to leading businesses from the Salinas Valley to Silicon Valley. I sincerely appreciate the efforts and continued contributions of our exceptional team of professional bankers, our committed directors and advisers and our many loyal customers. “

Public health orders aimed at limiting the pandemic have resulted in significant changes in economic conditions that may affect the ability of our borrowers to repay their loans. The allowance for loan losses in 2020 incorporates estimates of changes in macroeconomic conditions and portfolio concentrations. A $ 1.7 million loan that was more than 30 days past due as of December 31, 2020 has reverted to non-past due status. With the exception of this loan, some traditional measures of credit risk such as delinquencies and non-performing assets did not show weakened performance. However, relief measures such as PPP loans and SBA payments on 7a loans may be insufficient to support borrowers as the pandemic continues to hamper economic activity. As a relationship-driven bank, we continue to work with our borrowers to help them respond to changing conditions. As of December 31, 2020, COVID loan modifications, typically for interest-only periods, were in place for 10 loans totaling $ 11.5 million, up from 14 loans totaling $ 24.5 million as of September 30, 2020. All these loans were healthy. Non-performing assets totaled $ 45,000 (0.01% of assets) as at December 31, 2020 compared to $ 65,000 as at December 31, 2019.

The Bank’s capital position remains above regulatory guidelines for well-capitalized banks. As of December 31, 2020, the Bank had a total capital ratio of 14.95%. The book value per share as at December 31, 2020 was $ 11.01. The net interest margin for the fourth quarter and for fiscal 2020 was 3.64% and 3.81%, respectively, compared to 5.42% and 5.45% for the same periods in 2019.

Pinnacle Bank is ranked by Bauer Financial as five stars “superior” for its strong financial performance, the highest rating given by the independent banking rating company. DepositAccounts.com gave Pinnacle Bank an A + rating with a ranking of 80 out of 5,035 US banks analyzed. Findley Reports named Pinnacle Bank a 2020 Super Premier Performing Bank.

For more information please go to www.pinnacle.bank click on Investor Relations and Appeal Report for December 2020.

About Pinnacle Bank

Pinnacle Bank is a full-service merchant bank dedicated to providing quality deposit and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for businesses and non-profit organizations, offering a variety of products and services that combine the best of the personal touch with convenient, technology-based delivery. Pinnacle Bank has branches in Campbell, Morgan Hill, Gilroy and Salinas. For more information, visit www.pinnacle.bank, click on Investor Relations and December 2020 Appeal Report.

Forward-looking statements

This press release may contain forward-looking statements, such as, among other things, statements about plans, expectations and objectives for growth and improvement. Forward-looking statements are subject to risks and uncertainties. These risks and uncertainties may include, but are not limited to, fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the control of the Bank. These risks and uncertainties could cause results for subsequent interim periods or the entire year to differ materially from those shown. Readers should not place undue reliance on forward-looking statements, which represent the views of management only as of the date hereof. Pinnacle Bank does not undertake to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Media contact:Pinacle BankJeffrey D. Payne, President and CEO408-762-7146

Summary report

Change from year to year

(Unaudited, in thousands of dollars)

12/31/2020

09/30/2020

12/31/2019

$

%

Total assets

$ 616,847

$ 624,877

$ 419,412

$ 197,435

47%

Gross loans

$ 487,035

$ 502,122

$ 335,915

$ 151,120

45%

Allowance for loan losses

$ (6,101)

($ 5,885)

$ (3 935)

$ (2,166)

55%

Non-interest bearing deposits

$ 244,749

$ 244,858

$ 160,160

$ 84,589

53%

Interest-bearing deposits

$ 299,424

$ 303,961

$ 196,360

$ 103,064

52%

Total deposits

$ 544,173

$ 548,819

$ 356,520

$ 187,653

53%

Equity

$ 58,225

$ 56,681

$ 53,718

$ 4,507

8%

Summary income statement

(Unaudited, in thousands of dollars

Year ended

Year ended

Change

Change

except per share data)

12/31/2020

12/31/2019

$

%

Interest income

$ 22,181

$ 21,453

$ 728

4.2%

Interest charges

1,893

1705

188

34.1%

Net interest income

20 288

19 748

540

3.2%

Allowance for loan losses

2,070

280

1790

2386.7%

Income other than interest

3,727

3 164

563

17.2%

Non-interest charges

16 201

14,503

1,698

13.7%

Income tax expense

1,803

2,565

(762)

-36.3%

Net income (loss)

$ 3,941

$ 5,564

$ (1623)

-30.3%

Basic earnings (loss) per share

$ 0.75

$ 1.09

($ 0.34)

-28.4%

Diluted earnings (loss) per share

$ 0.74

$ 1.06

($ 0.32)

-27.6%

Book value per share

$ 11.01

$ 10.81

$ 0.20

1.9%

Shares outstanding at the end of the period

5 288 310

5,242,743

45,567

0.9%

Minimum

required to be

Capital ratios

12/31/2020

09/30/2020

12/31/2019

well capitalized

Tier 1 leverage ratio

9.13%

8.99%

12.91%

5.00%

Common Equity Tier 1 capital ratio

13.69%

13.50%

14.14%

6.50%

Tier 1 capital ratio

13.69%

13.50%

14.14%

8.00%

Total capital ratio

14.95%

14.76%

15.19%

10.00%

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