Pinnacle Bank Announces Record Earnings for 2021

Published: Jan. 27, 2022 at 9:51 PM EST

GILROY, Calif., Jan. 27, 2022 /PRNewswire/ -- OTCQB: PBNK - Pinnacle Bank, headquartered in Gilroy, California, announced today record unaudited net income for the year ended December 31, 2021 of $7,750,000, an increase of 97% over the 2020 net income of $3,941,000. Unaudited net income for the fourth quarter of 2021 was $2,011,000 compared to $2,170,000 in the third quarter of 2021 and $1,411,000 in the fourth quarter of 2020.

Pinnacle Bank logo (PRNewsFoto/Pinnacle Bank)
Pinnacle Bank logo (PRNewsFoto/Pinnacle Bank)(PRNewswire)

As of December 31, 2021, total assets were $737.8 million, a 20% increase from the $616.8 million at December 31, 2020.

Gross loans were $434.5 million at December 31, 2021, a decrease of $52.5 million (-11%) from the December 31, 2020 balance of $487.0 million.  Gross Paycheck Protection Program (PPP) loans at December 31, 2021 were $21.0 million compared to $110.2 million a year earlier. Excluding PPP loans, gross loans increased $36.7 million or 10%. The allowance for loan losses at December 31, 2021 was $6.194 million or 1.45% of loans (1.52% of net loans excluding the PPP loans) compared to $6.101 million or 1.27% of loans at December 31, 2020 (1.65% excluding PPP loans).

Total deposits at December 31, 2021, increased to $659.7 million from $544.2 million at December 31, 2020, a 21% increase.

Noninterest income included gains on the sale of loans, primarily SBA 7a loans, of $5.4 million in 2021 compared to $1.97 million in 2020.  This reflects continued success in executing on the Bank's core strategy as a well-established PLP lender to utilize the SBA 7a program to fulfill our clients' borrowing needs and provide an additional source of noninterest income.

"We reached record earnings, deposits and total assets in 2021.  The growth in core loans and deposits reflects the success of our approach to relationship banking and participation in government guaranteed lending," stated Jeffrey Payne, President and CEO. "We are honored to contribute to the success of our communities by providing premier business banking from Salinas Valley to Silicon Valley.  We appreciate the ongoing efforts of our outstanding team of professional bankers, committed directors and advisors and our many loyal clients that contribute to our ongoing success and continued momentum."

The Bank's capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2021, the Bank had a total capital ratio of 14.65%.  Book value per share at December 31, 2021 was $12.41.

Pinnacle Bank is rated by Bauer Financial as Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm.  DepositAccounts.com awarded Pinnacle Bank an A+ rating with a ranking of 80 out of 5,035 U.S. banks analyzed.  The 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 December 2021 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 click on Investor Relations and December 2021 call report.

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 necessarily 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.

Media Contact:
Pinnacle Bank
Jeffrey D. Payne, President & CEO
408-762-7146

Summary Balance Sheet



Year over year change

(Unaudited, dollars in thousands)

12/31/2021

9/30/2021

12/31/2020

$

%

Total assets

$      737,833

$     721,956

$     616,847

$     120,986

20%

Gross loans

$      434,498

$     444,868

$     487,035

$      (52,537)

-11%

Allowance for loan losses

$         (6,194)

$        (6,178)

$       (6,101)

$             (93)

2%

Non-interest bearing deposits

$      332,445

$     301,305

$     244,749

$       87,696

36%

Interest-bearing deposits

$      327,230

$     345,755

$     299,424

$       27,806

9%

Total deposits

$      659,675

$     647,060

$     544,173

$     115,502

21%

Shareholders' equity

$        66,407

$       64,284

$       58,225

$         8,182

14%







Summary Income Statement




(Unaudited, dollars in thousands

Year ended

Year ended

Change

Change

except per share data)

12/31/2021

12/31/2020

$

%

Interest income

$        24,125

$        22,181

$      1,944

8.8%

Interest expense

1,046

1,893

(847)

-44.7%

Net interest income

23,079

20,288

2,791

13.8%

Provision for loan losses

-

2,070

(2,070)

-100.0%

Non-interest income

7,085

3,727

3,358

90.1%

Non-interest expense

19,240

16,201

3,039

18.8%

Income tax expense

3,174

1,803

1,371

76.0%

Net income (loss)

$          7,750

$          3,941

$      3,809

96.7%






Basic Earnings (loss) per share

$1.45

$0.75

$0.70

93.1%

Diluted Earnings (loss) per share

$1.42

$0.74

$0.68

91.7%

Book value per share

$          12.41

$          11.01

$1.40

12.7%

Shares outstanding at period end

5,352,349

5,288,310

64,039

1.2%





Minimum





required to be

Capital Ratios

12/31/2021

9/30/2021

12/31/2020

well-capitalized

Tier 1 leverage ratio

9.09%

9.04%

9.13%

5.00%

Common Equity Tier 1 capital ratio

13.40%

13.50%

13.69%

6.50%

Tier 1 capital ratio

13.40%

13.50%

13.69%

8.00%

Total capital ratio

14.65%

14.75%

14.95%

10.00%

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SOURCE Pinnacle Bank

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