Gilroy, CA–(business wire)–OTCQB: PBNK – Gilroy, Calif.-based Pinnacle Bank today posted record unaudited net income of $8,453,000 for the year ended December 31, 2022, marking a 2021 net income gain of $8,453,000. announced a 9% increase from $7,750,000. Unaudited net income for the fourth quarter of 2022 was $3,107,000, compared with $2,494,000 in the third quarter of 2022 and $2,011,000 in the fourth quarter of 2021.
As of December 31, 2022, total assets were $755.7 million, up 2% from $737.8 million as of December 31, 2021.
Total loans at December 31, 2022 were $510.1 million, an increase of $75.6 million, or 17%, from the December 31, 2021 balance of $434.5 million. Gross Paycheck Protection Program (PPP) loans on December 31, 2022 were $363,000, compared with $21 million a year earlier. Excluding PPP loans, total loans increased $96.2 million or 23%. The loan loss reserve at December 31, 2022 was $5,085,000, or net, compared with $6,194,000, or 1.45% of net lending at December 31, 2021 (1.52% excluding PPP loans). It was 1.01% of loans.
Total deposits on December 31, 2022 increased 1% to $669.4 million from $659.7 million on December 31, 2021.
Changes in market conditions for government-guaranteed loans, such as SBA 7a loans, have reduced the level of non-interest income in 2022. Profit on sale of $7,085,000 and $5,404,000. The decline in loan sales gains reflected lower levels of government-guaranteed loan originations as demand was impacted by the return of legacy SBA 7a program fees and higher prime rates. 2021 gains on loan sales are an increase in loan origination volume and an increase in prices paid by investors for government-guaranteed loans, based on a temporary reduction in fees for the SBA 7a loan program that ended September 30, 2021. reflect the rise.
Jeffrey Payne, President and CEO, said: “We are honored to contribute to the success of our community by providing premier business banking from Salinas Valley to Silicon Valley. We are grateful for the continued efforts of an outstanding team of many loyal customers who have contributed to our continued success and continued momentum.”
Our capital position exceeds regulatory guidelines for well-capitalized banks. As at 31 December 2022, the Bank’s total capital ratio was 13.37%. His book value per share on December 31, 2022 was $13.36.
Pinnacle Bank has been awarded a five-star ‘excellent’ rating by Bauer Financial for its strong financial performance, the highest rating by an independent bank rating agency. DepositAccounts.com gave Pinnacle Bank an A rating. Findley Reports has named Pinnacle Bank its 2021 Super Premier Performance Bank.
For more information, www.pinnacle.bank Click Investor Relations and December 2022 Call Report.
About Pinnacle Bank
Pinnacle Bank is a full service business bank dedicated to providing high quality deposit and credit services in Santa Clara, San Benito and Monterey Counties. The bank focuses on commercial banking services for businesses and non-profits, offering a range of products and services that combine the highest personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy, Salinas and Campbell. For more information, visit www.pinnacle.bank and click on Investor Relations and December 2022 Call Report.
Forward-Looking Statements
This release may contain forward-looking statements, including statements regarding, among other things, our plans, expectations and goals for growth and improvement. Forward-looking statements involve risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to, changes in interest rates, inflation, government regulation and general economic conditions. This includes key service areas, and more generally the California real estate market, as well as other factors beyond the bank’s control. Such risks and uncertainties could cause subsequent interim or full year results to differ materially from those indicated. Readers should not place undue reliance on forward-looking statements, which reflect only management’s views as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
|
summary balance sheet |
|
|
YoY change |
|||||||||||
|
(unaudited, $1,000) |
December 31, 2022 |
September 30, 2022 |
December 31, 2021 |
$ |
% |
|||||||||
|
Total assets |
$ |
755,653 |
|
$ |
781,242 |
|
$ |
737,833 |
|
$ |
17,820 |
|
2 |
% |
|
Total loan |
$ |
510,100 |
|
$ |
486,137 |
|
$ |
434,498 |
|
$ |
75,602 |
|
17 |
% |
|
Bad debt allowance |
$ |
(5,085 |
) |
$ |
(6,227 |
) |
$ |
(6,194 |
) |
$ |
1,109 |
|
-18 |
% |
|
interest free deposit |
$ |
330,109 |
|
$ |
341,658 |
|
$ |
332,445 |
|
$ |
(2,336 |
) |
-1 |
% |
|
Interest-bearing deposit |
$ |
339,279 |
|
$ |
358,276 |
|
$ |
327,230 |
|
$ |
12,049 |
|
Four |
% |
|
total deposit |
$ |
669,388 |
|
$ |
699,934 |
|
$ |
659,675 |
|
$ |
9,713 |
|
1 |
% |
|
Shareholders’ equity |
$ |
73,687 |
|
$ |
69,698 |
|
$ |
66,407 |
|
$ |
7,280 |
|
11 |
% |
|
summary income statement |
|
|
|
|||||||
|
(Unaudited, $1,000 |
end of the fiscal year |
end of the fiscal year |
Change |
Change |
||||||
|
(excluding per share data) |
December 31, 2022 |
December 31, 2021 |
$ |
% |
||||||
|
interest income |
$ |
31,917 |
|
$ |
24,125 |
$ |
7,791 |
|
32.3 |
% |
|
Interest expense |
|
2,017 |
|
|
1,046 |
|
971 |
|
92.8 |
% |
|
net interest income |
|
29,900 |
|
|
23,079 |
|
6,820 |
|
29.6 |
% |
|
Bad debt allowance |
|
(1,150 |
) |
|
0 |
|
(1,150 |
) |
n/m |
|
|
non-interest income |
|
2,901 |
|
|
7,085 |
|
(4,184 |
) |
-59.1 |
% |
|
non-interest expenses |
|
22,016 |
|
|
19,240 |
|
2,775 |
|
14.4 |
% |
|
income tax expense |
|
3,482 |
|
|
3,174 |
|
308 |
|
9.7 |
% |
|
Net profit (loss) |
$ |
8,453 |
|
$ |
7,750 |
$ |
703 |
|
9.1 |
% |
|
|
|
|
|
|
||||||
|
Basic earnings (loss) per share |
$ |
1.55 |
|
$ |
1.45 |
$ |
0.10 |
|
6.9 |
% |
|
Diluted earnings (loss) per share |
$ |
1.52 |
|
$ |
1.42 |
$ |
0.10 |
|
7.0 |
% |
|
Book value per share |
$ |
13.36 |
|
$ |
12.41 |
$ |
0.95 |
|
7.7 |
% |
|
Number of shares outstanding at the end of the period |
|
5,517,373 |
|
|
5,352,349 |
|
165,024 |
|
3.1 |
% |
|
|
|
|
|
minimum |
||||
|
|
|
|
|
There is a need to |
||||
|
Capital adequacy ratio |
December 31, 2022 |
September 30, 2022 |
December 31, 2021 |
well capitalized |
||||
|
Tier 1 leverage ratio |
9.89 |
% |
9.07 |
% |
9.09 |
% |
5.00 |
% |
|
Common Equity Tier 1 Ratio |
12.53 |
% |
12.22 |
% |
13.40 |
% |
6.50 |
% |
|
Tier 1 capital ratio |
12.53 |
% |
12.22 |
% |
13.40 |
% |
8.00 |
% |
|
Capital adequacy ratio |
13.37 |
% |
13.28 |
% |
14.65 |
% |
10.00 |
% |
|
bad assets |
December 31, 2022 |
September 30, 2022 |
December 31, 2021 |
||||||
|
bad assets |
$ |
1,167 |
|
$ |
1,103 |
|
$ |
83 |
|
|
Nonperforming Assets to Total Assets |
|
0.15 |
% |
|
0.14 |
% |
|
0.01 |
% |
