Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2023
Pinnacle Bancshares, Inc. (PCLB) announced their financial results for the fourth quarter and year ended December 31, 2023. The basic/diluted earnings per share for the three months ended December 31, 2023, was $1.08, compared to $1.12 per share for the same period in 2022. Net income for the three months ended December 31, 2023, was $981,000, compared to $1,016,000 for the same period in 2022. For the year ended December 31, 2023, the basic/diluted earnings per share was $4.93, compared to $4.79 per share for the year ended December 31, 2022. Pinnacle reported net income of $4,480,000 for the year ended December 31, 2023, compared to $4,504,000 for the year ended December 31, 2022. The return on average assets for the three and nine months ended December 31, 2023, was 1.18% and 1.34%, respectively, compared to 1.29% and 1.35% for the same periods in 2022. The company’s net interest margin decreased for both the three months and year ended December 31, 2023, compared to the same periods in 2022. The company anticipates that interest expense relating to its funding will continue to increase during 2024 due to various factors such as increased deposit exception pricing and deposit migration to higher yielding deposit products.
Positive
Positive financial results for the fourth quarter and year ended December 31, 2023
Stable return on average assets for the three and nine months ended December 31, 2023
Anticipation of increased interest expense in 2024 due to various factors
Negative
Decrease in basic/diluted earnings per share and net income for the three months ended December 31, 2023, compared to the same period in 2022
Decrease in the company’s net interest margin for the three months and year ended December 31, 2023, compared to the same periods in 2022
01/30/2024 - 04:30 PM
JASPER, Ala. --(BUSINESS WIRE)--
Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s results of operations for the fourth quarter and year ended December 31, 2023:
For the three months ended December 31, 2023, Pinnacle’s basic/diluted earnings per share was $1.08 $1.12 $981,000 $1,016,000
For the year ended December 31, 2023, Pinnacle’s basic/diluted earnings per share was $4.93 $4.79 $4,480,000 $4,504,000
For the three and nine months ended December 31, 2023, return on average assets was 1.18% , and 1.34% , respectively, compared to 1.29% and 1.35% , respectively, in the comparable 2022 period.
Company’s net interest margin was 3.18% and 3.32% , respectively for the three months and year ended December 31, 2023, respectively, compared to 3.48% and 3.35% for both the three months and year ended December 31, 2022, respectively. The Company anticipates that interest expense relating to its funding will continue to increase during 2024 as a result of several factors such as increased deposit exception pricing and increased deposit migration to higher yielding deposit products.
Mr. Nolen commented, “In response to concerns about liquidity and capital strength related to bank failures that occurred earlier in the year, we remain confident in our risk status. Our primary focus is, and will continue to be, the Bank’s safety and soundness, and the protection of our depositors.”
At December 31, 2023, Pinnacle’s allowance for loan losses as a percent of total loans was 1.96% , compared to 2.16% at December 31, 2022. Net charge-offs were $102,000
Pinnacle was classified as “well capitalized” at the end of 2023. All capital ratios are higher than the requirements for a well-capitalized institution. As of December 31, 2023, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 18.12% . As of December 31, 2023, its total capital ratio was 19.29% , and its Tier 1 leverage ratio was 11.56% .
Dividends of $.27 and $1.08 $.25 and $1.00
Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at December 31, 2023, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 101.50% as compared to our established minimal limit of 25% . In addition, the Bank provides access to additional FDIC insurance coverage for accounts that would otherwise exceed deposit insurance coverage.
The Company’s total deposits at December 31, 2023 decreased $10.9 million 3.4% , as compared to December 31, 2022. As mentioned previously, pricing of deposits is anticipated to remain competitive during 2024 and thus deposits could continue to decrease as they did during 2023.
Effects of Inflation
Inflation has caused a substantial rise in interest rates during 2023 and 2022 which has had a negative effect in the securities market. As a result of rising interest rates, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $26.3 million $29.9 million
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 December 31,
2023
2022
Net income
$
981,000
$
1,016,000
Basic and diluted earnings per share
$
1.08
$
1.12
Performance ratios (annualized):
Return on average assets
1.18
%
1.29
%
Return on average equity
10.07
%
11.45
%
Interest rate spread
2.70
%
3.35
%
Net interest margin
3.18
%
3.48
%
Operating cost to assets
2.40
%
2.57
%
Weighted average basic and diluted shares outstanding
909,534
909,534
Dividends per share
$
0.27
$
0.25
Provision for loan losses
$
-
$
125,000
Years Ended December 31,
2023
2022
Net income
$
4,480,000
$
4,504,000
Basic and diluted earnings per share
$
4.93
$
4.79
Performance ratios (annualized):
Return on average assets
1.34
%
1.35
%
Return on average equity
11.89
%
12.88
%
Interest rate spread
2.98
%
3.25
%
Net interest margin
3.32
%
3.35
%
Operating cost to assets
2.31
%
2.22
%
Weighted average basic and diluted shares outstanding
909,534
939,575
Dividends per share
$
1.08
$
1.00
Provision for loan losses
$
-
$
125,000
(Audited)
December 31, 2023
December 31, 2022
Total assets
$
342,708,000
$
332,718,000
Loans receivable, net
$
122,974,000
$
115,956,000
Deposits
$
311,341,000
$
322,261,000
Brokered CD’s included in deposits
$
11,903,000
$
11,756,000
Total stockholders’ equity
$
12,787,000
$
5,738,000
Book value per share (excluding OCI)
$
43.02
$
39.17
Average Stockholders’ equity to assets ratio (excluding OCI)
11.25
%
10.47
%
Asset quality ratios:
Nonperforming loans as a percent of total loans
.00
%
.00
%
Nonperforming assets as a percent of total loans
.00
%
.00
%
Allowance for loan losses as a percent of total loans
1.96
%
2.16
%
FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Audited)
December 31,
December 31,
2023
2022
Assets
Cash and cash equivalents
$
2,190,793
$
1,742,938
Interest bearing deposits in banks
19,518,942
12,185,982
Securities available for sale
165,520,025
170,580,649
Restricted equity securities
836,200
773,600
Loans
125,433,112
118,516,666
Less Allowance for loan losses
2,459,372
2,561,079
Loans, net
122,973,740
115,955,587
Premises and equipment, net
8,421,290
6,926,631
Right-of-use lease assets – operating
302,171
398,364
Goodwill
306,488
306,488
Bank owned life insurance
10,601,839
10,206,335
Accrued interest receivable
2,107,188
2,070,895
Deferred tax assets, net
9,081,069
10,594,339
Other assets
847,912
976,361
Total assets
$
342,707,657
$
332,718,169
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing
$
89,520,410
$
94,784,231
Interest-bearing
221,820,527
227,476,410
Total deposits
311,340,937
322,260,641
Subordinated debentures
3,093,000
3,093,000
Other borrowings
12,500,000
-
Accrued interest payable
1,392,272
111,652
Operating lease liabilities
302,171
398,364
Other liabilities
1,292,736
1,116,596
Total liabilities
329,921,116
326,980,253
Stockholders’ equity
Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 909,534 shares outstanding, respectively
18,723
18,723
Additional paid‑in capital
8,923,223
8,923,223
Treasury stock (962,779)
(15,588,799
)
(15,588,799
)
Retained earnings
45,772,256
42,274,372
Accumulated other comprehensive loss, net of tax
(26,338,862
)
(29,889,603
)
Total stockholders’ equity
12,786,541
5,737,916
Total liabilities and stockholders’ equity
$
342,707,657
$
332,718,169
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Years Ended
December 31,
December 31,
2023
2022
2023
2022
Interest income
Loans, including fees
$
2,003,295
$
1,666,711
$
7,527,937
$
6,512,150
Securities available for sale
1,347,416
1,431,684
5,504,358
5,419,511
Other interest
266,587
72,494
840,501
170,912
Total interest income
3,617,298
3,170,889
13,872,796
12,102,573
Interest expense
Deposits
692,818
184,218
1,859,046
570,926
Borrowings
148,910
935
438,088
1,745
Subordinated debentures
39,050
38,600
156,200
152,510
Total interest expense
880,778
223,753
2,453,334
725,181
Net interest income
2,736,520
2,947,136
11,419,462
11,377,392
Provision for loan losses
-
125,000
-
125,000
Net interest income after provision
for loan losses
2,736,520
2,822,136
11,419,462
11,252,392
Other income
Fees and service charges on deposit accounts
426,111
384,999
1,681,484
1,504,850
Service fee income, net
746
758
2,910
3,292
Bank owned life insurance
101,087
95,975
395,505
383,894
Mortgage fee income
-
2,700
12,113
30,457
Total other income
527,944
484,432
2,092,012
1,922,493
Other expense:
Salaries and employee benefits
1,041,716
1,095,981
4,382,725
4,165,501
Occupancy expense
271,628
230,977
943,058
891,240
Marketing and professional expense
131,811
88,407
338,524
289,975
Other operating expenses
541,429
609,725
2,085,710
2,057,305
Total other expenses
1,986,584
2,025,090
7,750,017
7,404,021
Income before income taxes
1,277,880
1,281,478
5,761,457
5,770,864
Income tax expense
296,737
265,692
1,281,278
1,266,668
Net income
$
981,143
$
1,015,786
$
4,480,179
$
4,504,196
Cash dividend per share
$
0.27
$
0.25
$
1.08
$
1.00
Basic and diluted earnings per share
$
1.08
$
1.12
$
4.93
$
4.79
Weighted –average basic and diluted
shares outstanding
909,534
909,534
909,534
939,575
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Years Ended December 31, 2023 and 2022
Accumulated
Additional
Other
Total
Common Stock
Paid-in
Treasury
Retained
Comprehensive
Stockholders’
Shares
Amount
Capital
Stock
Earnings
Income (Loss)
Equity
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
-
-
-
4,504,196
-
4,504,196
Cash dividends declared
($1.00
-
-
-
-
(940,163
)
-
(940,163
)
Purchase of treasury stock
-
-
-
(2,055,178
)
-
-
(2,055,178
)
Other comprehensive loss
-
-
-
-
-
(31,430,082
)
(31,430,082
)
Balance December 31, 2022
1,872,313
$
18,723
$
8,923,223
$
(15,588,799
)
$
42,274,372
$
(29,889,603
)
$
5,737,916
Accumulated
Additional
Other
Total
Common Stock
Paid-in
Treasury
Retained
Comprehensive
Stockholders’
Shares
Amount
Capital
Stock
Earnings
Loss
Equity
Balance December 31, 2022
1,872,313
$
18,723
$
8,923,223
$
(15,588,799
)
$
42,274,372
$
(29,889,603
)
$
5,737,916
Net income
-
-
-
4,480,179
-
4,480,179
Cash dividends declared
($1.08
-
-
-
-
(982,295
)
-
(982,295
)
Other comprehensive income
-
-
-
-
-
3,550,741
3,550,741
Balance December 31, 2023
1,872,313
$
18,723
$
8,923,223
$
(15,588,799
)
$
45,772,256
$
(26,338,862
)
$
12,786,541
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended
December 31,
2023
2022
OPERATING ACTIVITIES:
Net income
$
4,480,179
$
4,504,196
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
418,815
424,648
Provision for loan losses
-
125,000
Net investment amortization expense
180,496
208,429
Net increase in bank owned life insurance
(395,505
)
(383,894
)
Decrease in accrued interest receivable
(36,292
)
(153,297
)
Increase in accrued interest payable
1,280,620
33,809
Net other operating activities
535,306
(97,246
)
Net cash provided by operating activities
6,463,619
4,661,645
INVESTING ACTIVITIES:
Net (increase) decrease in loans
(7,018,152
)
6,577,927
Net increase in interest bearing deposits in other banks
(7,332,960
)
(1,039,485
)
Purchase of securities available for sale
-
(41,170,098
)
Proceeds from maturing, calls, and payments received on securities available for sale
9,712,596
10,777,597
Net purchase of restricted equity securities
(62,600
)
(32,000
)
Purchase of premises and equipment
(1,913,473
)
(335,742
)
Net cash used in investing activities
(6,614,589
)
(25,221,801
)
FINANCING ACTIVITIES:
Net increase (decrease) in deposits
(10,918,880
)
23,568,108
Proceeds from other borrowings
16,100,000
-
Repayments of other borrowings
(3,600,000
)
-
Purchase of treasury stock
-
(2,055,178
)
Payments of cash dividends
(982,295
)
(940,163
)
Net cash provided by financing activities
598,825
20,572,767
Net increase in cash and cash equivalents
447,855
12,611
Cash and cash equivalents at beginning of period
1,742,938
1,730,327
Cash and cash equivalents at end of period
$
2,190,793
$
1,742,938
SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
Interest
$
1,172,714
$
687,479
Taxes
$
945,928
$
1,330,569
OTHER NONCASH TRANSACTIONS
Real estate acquired through foreclosure
$
-
$
-
Internally financed sales of other real estate owned
$
-
$
-
View source version on businesswire.com: https://www.businesswire.com/news/home/20240130550059/en/
Joe B. Adams, III
Source: Pinnacle Bancshares, Inc.
What were Pinnacle Bancshares, Inc.'s (PCLB) basic/diluted earnings per share for the three months ended December 31, 2023?
Pinnacle Bancshares, Inc.'s basic/diluted earnings per share for the three months ended December 31, 2023, was $1.08.
What was Pinnacle Bancshares, Inc.'s (PCLB) net income for the three months ended December 31, 2023?
Pinnacle Bancshares, Inc.'s net income for the three months ended December 31, 2023, was $981,000.
What was Pinnacle Bancshares, Inc.'s (PCLB) basic/diluted earnings per share for the year ended December 31, 2023?
Pinnacle Bancshares, Inc.'s basic/diluted earnings per share for the year ended December 31, 2023, was $4.93.
What was Pinnacle Bancshares, Inc.'s (PCLB) net income for the year ended December 31, 2023?
Pinnacle Bancshares, Inc.'s net income for the year ended December 31, 2023, was $4,480,000.
What was Pinnacle Bancshares, Inc.'s (PCLB) return on average assets for the three months ended December 31, 2023?
Pinnacle Bancshares, Inc.'s return on average assets for the three months ended December 31, 2023, was 1.18%.
What was Pinnacle Bancshares, Inc.'s (PCLB) return on average assets for the nine months ended December 31, 2023?
Pinnacle Bancshares, Inc.'s return on average assets for the nine months ended December 31, 2023, was 1.34%.
What was Pinnacle Bancshares, Inc.'s (PCLB) net interest margin for the three months ended December 31, 2023?
Pinnacle Bancshares, Inc.'s net interest margin for the three months ended December 31, 2023, was 3.18%.
What was Pinnacle Bancshares, Inc.'s (PCLB) net interest margin for the year ended December 31, 2023?
Pinnacle Bancshares, Inc.'s net interest margin for the year ended December 31, 2023, was 3.32%.
Why does Pinnacle Bancshares, Inc. (PCLB) anticipate an increase in interest expense in 2024?
Pinnacle Bancshares, Inc. anticipates an increase in interest expense in 2024 due to factors such as increased deposit exception pricing and deposit migration to higher yielding deposit products.
