Pinnacle Bank Announces Earnings for Third Quarter of 2026

Higher quarterly net interest income coincided with a larger loan-loss provision, while nonaccrual loans declined year over year.

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10/29/2026 - 07:11 PM EDT

GILROY, Calif.--(BUSINESS WIRE)-- Pinnacle Bank (OTCQB: PBNK), headquartered in Gilroy, California, announced today unaudited net income for the third quarter ended September 30, 2026 of $235,000 compared to net income of $1,076,000 in the third quarter of 2025.

As of September 30, 2026, total assets were $993.60 million, a 10% increase from $905.7 million as of September 30, 2025.

Total loans were $577.7 million as of September 30, 2026, compared to $565.3 million as of September 30, 2025. The allowance for loan losses was $7.667 million, or 1.33% of net loans, as of September 30, 2026, compared to $8.922 million, or 1.58% of net loans, as of September 30, 2025. The third quarter of 2026 provision was primarily due to a $2.8 million charge off to resolve one loan in our asset-based lending portfolio. Nonaccrual loans were $7.3 million as of September 30, 2026, a decrease of $6.4 million compared to $13.7 million as of September 30, 2025.

Total deposits were $864.9 million as of September 30, 2026, a 10% increase from $785.0 million as of September 30, 2025.

“With our strong liquidity and capital, Pinnacle Bank is ready to support the credit needs of our communities through our relationship-based approach,” stated Jeffrey Payne, President and Chief Executive Officer. “We remain committed to supporting the entrepreneurs and business owners across the Salinas Valley and Silicon Valley with responsive banking solutions that help them manage cash flow, invest, and grow. We remain grateful for the strength of our client relationships and the efforts of our professional bankers, directors, advisors, and loyal clients.”

The Bank’s capital position remains above regulatory guidelines for well-capitalized banks. At September 30, 2026, total capital ratio was 17.89%. Book value per share as of September 30, 2026 was $18.26.

For more information, please go to www.pinnacle.bank, click on Investor Relations, and review the September 2026 call report.

About Pinnacle Bank

Pinnacle Bank is a full-service business bank dedicated to providing quality depository and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for businesses and nonprofit organizations, offering a variety of products and services that combine the best of personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy, Salinas and Campbell. For more information please go to www.pinnacle.bank and click on Investor Relations.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such 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 Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only 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										Year over year change
(Unaudited, dollars in thousands)	9/30/2026			6/30/2026			9/30/2025			$		%
Total assets	$	993,610		$	936,970		$	905,733		$	87,877	10	%
Total loans	$	577,725		$	576,411		$	565,325		$	12,400	2	%
Allowance for loan losses	$	(7,667	)	$	(7,293	)	$	(8,922	)	$	1,255	-14	%
Non-interest bearing deposits	$	259,272		$	247,335		$	255,482		$	3,790	1	%
Interest-bearing deposits	$	605,654		$	562,983		$	529,495		$	76,159	14	%
Total deposits	$	864,926		$	810,318		$	784,977		$	79,949	10	%
Shareholders' equity	$	109,119		$	109,506		$	105,543		$	3,576	3	%

Summary Income Statement
(Unaudited, dollars in thousands	Quarter ended		Quarter ended		Change		Quarter ended		Change
except per share data)	9/30/2026		6/30/2026		%		9/30/2025		%
Interest income	$	13,103	$	11,786	11	%	$	12,355	6	%
Interest expense		3,775		3,641	4	%		3,472	9	%
Net interest income		9,328		8,145	15	%		8,883	5	%
Provision for loan losses		3,210		0	-	%		2,000	61	%
Non-interest income		474		46	930	%		540	-12	%
Non-interest expense		6,284		6,095	3	%		5,925	6	%
Income tax expense		73		614	-88	%		422	-83	%
Net income (loss)	$	235	$	1,482	-84	%	$	1,076	-78	%

Basic Earnings per share	$	0.04	$	0.25	-84	%	$	0.18	-78	%
Diluted Earnings per share	$	0.04	$	0.25	-84	%	$	0.18	-78	%
Book value per share	$	18.26	$	18.34	-	%	$	17.81	3	%
Shares outstanding at period end		5,974,471		5,970,871	-	%		5,926,791	1	%

Summary Income Statement
(Unaudited, dollars in thousands	Year-to-Date		Year-to-Date		Change
except per share data)	9/30/2026		9/30/2025		%
Interest income	$	36,719	$	36,681	-	%
Interest expense		10,920		10,184	7	%
Net interest income		25,799		26,497	-3	%
Provision for loan losses		3,359		2,000	68	%
Non-interest income		1,019		1,546	-34	%
Non-interest expense		19,286		18,992	2	%
Income tax expense		1,138		1,888	-40	%
Net income	$	3,035	$	5,163	-41	%

Basic Earnings per share	$	0.51	$	0.87	-41	%
Diluted Earnings per share	$	0.50	$	0.86	-42	%

Nonperforming assets
unaudited (dollars in thousands)	9/30/2026		6/30/2026		9/30/2025
Nonperforming assets	$	10,749	$	17,296	$	16,845

							Minimum
Capital Ratios							required to be
unaudited (dollars in thousands)	9/30/2026		6/30/2026		9/30/2025		well-capitalized
Tier 1 leverage ratio	11.32	%	11.88	%	11.87	%	5.00	%
Common Equity Tier 1 capital ratio	16.73	%	16.45	%	16.51	%	6.50	%
Tier 1 capital ratio	16.73	%	16.45	%	16.51	%	8.00	%
Total capital ratio	17.89	%	17.54	%	17.76	%	10.00	%