Pinnacle Bancshares Announces Results for Third Quarter
More News related to PCLB
- CORRECTING and REPLACING Pinnacle Bancshares Announces Results for Third Quarter
- Pinnacle Bancshares Announces Results for Third Quarter
- Pinnacle Bancshares (PCLB) Announces 68K Share Buyback
More News related to Press Releases
- Kimbo Slice's First Official Fight In The UFC To Take Place On Spike TV December 5
- American Physicians Capital, Inc. to Present at the Piper Jaffray 21st Annual Health Care Conference on December 2, 2009
- Bank of America Program Helps 100,000 Subprime, Option-ARM Borrowers Avoid Foreclosure in First 10 Months of Outreach
- Lifetime's 'The Pregnancy Pact,' Starring Thora Birch, Nancy Travis and Camryn Manheim, to Premiere January 23
- Greyhound Package Express Provides Savings and Flexible Holiday Shipping
JASPER, Ala.--(BUSINESS WIRE)-- Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle's third quarter results of operations.
Mr. Nolen stated: "We are pleased with the results for the third quarter which showed an increase in net income of 35%. For the three months ended September 30, 2009, net income was $453,000, compared with net income of $335,000 for the three months ended September 30, 2009. Net interest income before the provision for loan losses increased 9% or $159,000 which was the principal reason for the increase in net income."
For the nine months ended September 30, 2009, net loss was $(114,000), compared with net income of $916,000 for the nine months ended September 30, 2008. Net interest income before the provision for loan losses for the nine months ended September 30, 2009 was $5,619,000, compared with $5,129,000 in the same period last year.
The net interest margin was 3.93% and 3.80% for the three and nine months ended September 30, 2009, respectively, compared to 3.43% and 3.31% for the three and six months ended September 30, 2008, respectively.
Mr. Nolen also stated: "While we are pleased with our results for the third quarter and are optimistic about the prospect for improvements in the future, we continue to have significant concerns for weakening commercial real estate markets and the overall economy. The provision for loan losses increased from $226,000 and $727,000 in the three and nine months ended September 30, 2008, respectively, to $281,000 and $2,552,000 in the three and nine months ended September 30, 2009, respectively. The increase in the provision is primarily related to three credits totaling approximately $6,000,000, which relate to participations in commercial real estate loans. Although each of these loans is currently performing, our management determined that weaknesses in these credits, due principally to significant declines in real estate values, supported a decision to establish these additional reserves."
At September 30, 2009, the Company's allowance for loan losses as a percent of total loans was 2.84%, compared to 1.21% at September 30, 2008 and 1.19% at December 31, 2008. At September 30, 2009, the Company's allowance for loan losses as a percent of nonperforming loans was 624.24%, compared to 909.04% at September 30, 2008 and 971.18% at December 31, 2008. Based on current real estate valuations, Pinnacle believes its allowance for loan losses is adequate. If economic conditions do not improve, additional charge-offs and further significant increases in the allowance may be necessary.
Net charge-offs were $491,000 and $779,000 for the three and nine months ended September 30, 2009, respectively, compared to $143,000 and $825,000 in the three and nine months ended September 30, 2008, respectively. Non-performing loans were .45% of loans at September 30, 2009, compared to .13% at September 30, 2008 and .12% at December 31, 2008. Non-performing assets were 0.59% of total assets at September 30, 2009, compared to 1.66% as of September 30, 2008 and 1.20% as of December 31, 2008.
At September 30, 2009, total stockholders' equity and book value per share were $20,851,000 and $16.42 per share, respectively, compared to $20,572,000 and $15.35 per share, respectively, at December 31, 2008. Total assets at September 30, 2009, were $217,053,000, compared to total assets at December 31, 2008, of $225,783,000. Pinnacle's strong equity to assets ratio was 9.61% at September 30, 2009.
Mr. Nolen reminded investors that, although Pinnacle remains well capitalized and has been able to avoid liquidity issues, Pinnacle is operating in a challenging and uncertain economic environment. Financial institutions have been, and continue to be, affected by significant declines in economic conditions and constrained financial markets. Pinnacle retains direct exposure to the residential and commercial real estate markets.
The Company believes declines in economic conditions and financial stresses on borrowers as a result of the uncertain economic environment, including job losses, could have an adverse affect on Pinnacle's borrowers or their customers, which could adversely affect Pinnacle's financial condition and results of operations. In addition, deterioration in local economic conditions in Pinnacle's markets could drive losses beyond those which are provided for in the allowance for loan losses and result in a number of adverse consequences, including increases in loan delinquencies; increases in nonperforming assets; decreases in demand for Pinnacle's products and services, which could affect Pinnacle's liquidity position; and decreases in the value of the collateral securing Pinnacle's loans, which could reduce customers' borrowing power.
Mr. Nolen also observed that on September 29, 2009, the FDIC Board of Directors adopted a notice of proposed rulemaking and request for comment which would require insured depository institutions to repay their quarterly risk-based assessments for the fourth quarter of 2009 and full years 2010 through 2012 on December 29, 2009. This action was taken in connection with the adoption of an Amended Restoration Plan to meet immediate liquidity needs and return the Deposit Insurance Fund to its federally mandated level, without imposing additional special assessments. Further, the prepayment of assessments does not prevent the FDIC from changing assessment rates or revising the risk-based assessment system in future periods.
Pinnacle is generally unable to control the amount of premiums that it is required to pay for FDIC insurance. If there are additional bank or financial institution failures, Pinnacle may be required to pay even higher FDIC premiums than the recently increased levels. Additionally, the FDIC may make material changes to the calculation of the prepaid assessment from the current proposal. Any future changes in the calculation or assessment of FDIC insurance premiums may have a material adverse effect on Pinnacle's results of operations, financial condition and ability to continue to pay dividends on its common shares.
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 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 September 30,
2009 2008
Net income $ 453,000 $ 335,000
Basic earnings per share $ 0.36 $ 0.26
Diluted earnings per share $ 0.36 $ 0.26
Performance ratios (annualized):
Return on average assets 0.85 % 0.59 %
Return on average equity 8.82 % 6.97 %
Interest rate spread 3.92 % 3.46 %
Net interest margin 3.93 % 3.43 %
Operating cost to assets 2.93 % 2.77 %
Weighted average basic shares
Outstanding 1,270,128 1,312,019
Weighted average diluted shares
Outstanding 1,270,128 1,310,396
Dividends per share $ 0.11 $ 0.11
Provision for loan losses $ 281,500 $ 226,000
Nine Months ended September 30,
2009 2008
Net income (loss) $ (114,000 ) $ 916,000
Basic earnings per share $ (0.09 ) $ 0.67
Diluted earnings per share $ (0.09 ) $ 0.67
Performance ratios (annualized):
Return on average assets (0.07 %) 0.53 %
Return on average equity (0.73 %) 6.10 %
Interest rate spread 3.78 % 3.32 %
Net interest margin 3.80 % 3.31 %
Operating cost to assets 2.95 % 2.65 %
Weighted average basic shares
Outstanding 1,270,128 1,363,421
Weighted average diluted shares
Outstanding 1,270,128 1,363,080
Dividends per share $ 0.33 $ 0.33
Provision for loan losses $ 2,552,400 $ 727,000
September 30, 2009 December 31, 2008
Total assets $ 217,053,000 $ 225,783,000
Loans receivable, net $ 122,507,000 $ 137,001,000
Deposits $ 189,605,000 $ 197,479,000
Total stockholders' equity $ 20,851,000 $ 20,572,000
Book value per share $ 16.42 $ 15.35
Stockholders' equity to assets ratio 9.61 % 9.11 %
Asset quality ratios:
Nonperforming loans as a percent of total 0.45 % 0.12 %
loans
Nonperforming assets as a percent of 0.59 % 1.20 %
total assets
Allowance for loan losses as a percent of 2.84 % 1.19 %
total loans
Allowance for loan losses as a percent of 624.24 % 971.18 %
nonperforming loans
FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
September 30, December 31,
2009 2008
ASSETS:
Cash and cash equivalents $ 4,370,271 $ 3,896,727
Interest-bearing deposits in other banks 530,738 88
Securities available-for-sale 71,060,005 65,495,201
FHLB stock 817,500 424,200
First National Bankers Bancshares stock 525,000 525,000
Loans held for sale 1,356,314 801,390
Loans receivable, net of allowances for loan
losses of $3,477,496 and $1,650,705 122,506,658 137,000,890
respectively
Real estate owned, net 733,237 2,542,249
Premises and equipment, net 6,746,346 6,913,553
Goodwill 306,488 306,488
Bank owned life insurance 6,359,974 6,108,755
Accrued interest receivable 1,003,382 1,065,640
Other assets 736,896 702,391
Total assets $ 217,052,809 $ 225,782,572
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits $ 189,605,415 $ 197,478,504
Subordinated debt 3,093,000 3,093,000
Borrowed funds 1,270,000 2,025,000
Official checks outstanding 733,574 696,324
Accrued interest payable 454,663 844,912
Other liabilities 1,045,425 1,072,441
Total liabilities 196,202,077 205,210,181
STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per share;
2,400,000 authorized; 1,872,313issued at
September 30, 2009 and December 31, 2008, 18,723 18,723
respectively; 1,270,128 outstanding at
September 30, 2009 and December 31, 2008,
respectively
Additional paid in capital 8,923,223 8,923,223
Treasury shares, at cost (602,185 shares
outstanding at September 30, 2009 and December (7,320,909 ) (7,320,909 )
31, 2008, respectively)
Retained earnings 17,661,236 18,194,136
Accumulated other comprehensive loss, net of 1,568,459 757,218
tax
Total stockholders' equity 20,850,732 20,572,391
Total liabilities and stockholders' equity $ 217,052,809 $ 225,782,572
See accompanying notes to these condensed consolidated financial statements.
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
September 30, September 30,
2009 2008 2009 2008
INTEREST REVENUE:
Interest on loans $1,961,266 $2,297,016 $5,994,863 $7,148,175
Interest and dividends on 670,954 744,050 2,090,023 2,285,437
securities
Other interest 2,668 25,022 5,950 56,619
2,634,888 3,066,088 8,090,836 9,490,231
INTEREST EXPENSE:
Interest on deposits 704,104 1,203,856 2,374,388 4,055,759
Interest on subordinated 27,054 45,085 89,681 145,149
debt
Interest on borrowed funds 432 72,830 7,461 159,967
731,590 1,321,771 2,471,530 4,360,875
NET INTEREST INCOME BEFORE 1,903.298 1,744,317 5,649,306 5,129,356
PROVISION FOR LOAN LOSSES
PROVISION FOR LOAN LOSSES 281,500 226,000 2,552,400 727,300
NET INTEREST INCOME (LOSS)
AFTER PROVISION FOR LOAN 1,621,798 1,518,317 3,066,906 4,402,056
LOSSES
NONINTEREST INCOME:
Fees and service charges 340,572 233,279 874,291 706,855
on deposit accounts
Service fee income 19,968 24,277 63,656 75,540
Fees and charges on loans 54,182 47,904 143,820 162,467
Bank owned life insurance 83,740 89,591 251,220 268,773
Net gain (loss) on sale or
write-down of:
Securities available for 3,965 (576 ) 3,965 13,022
sale
Loans held for sale 53,326 94,413 234,294 183,386
Real estate owned 4,722 (1,083 ) (297,545 ) (1,126 )
560,475 487,805 1,273,701 1,408,917
NONINTEREST EXPENSE:
Compensation and benefits 785,516 825,766 2,464,327 2,454,313
Occupancy 347,853 299,839 1,033,259 885,149
Marketing and professional 85,082 97,931 287,987 299,109
Other 347,892 349,377 1,049,124 927,019
1,566,343 1,572,913 4,834,697 4,565,590
INCOME (LOSS) BEFORE 615,930 433,209 (494,090 ) 1,245,383
INCOME TAXES
INCOME TAX EXPENSE 162,757 98,000 (380,331 ) 329,717
(CREDIT)
NET INCOME (LOSS) $453,173 $335,209 $(113,759 ) $ 915,666
Basic earnings (loss) per $0.36 $0.26 $(0.09 ) $0.67
share
Diluted earnings (loss) $0.36 $0.26 $(0.09 ) $0.67
per share
Cash dividends per share $0.11 $0.11 $0.33 $0.33
Weighted average basic 1,270,128 1,312,019 1,270,128 1,363,421
shares outstanding
Weighted average diluted 1,270,128 1,310,396 1,270,128 1,363,080
shares outstanding
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
Accumulated
Additional Other Total
Common Stock Paid-in Treasury Retained Comprehensive Stockholders'
Shares Amount Capital Stock Earnings (Loss) Income Equity
BALANCE, December 1,872,313 $ 18,723 $ 8,923,223 $ (5,317,798 ) $ 17,554,085 $ (244,551 ) $ 20,933,682
31, 2007
Comprehensive
income (loss)
Net income 0 0 0 0 915,666 0 915,666
Change in fair
value of securities 0 0 0 0 0 (106,926 ) (106,926 )
available-for-sale,
net of tax
Comprehensive 808,740
income
Cash dividends
declared ($.33 per 0 0 0 0 (445,078 ) 0 (445,078 )
share)
Repurchase 192,231
shares of common 0 0 0 (2,003,111 ) 0 0 (2,003,111 )
stock
BALANCE, September 1,872,313 $ 18,723 $ 8,923,223 $ (7,320,909 ) $ 18,024,673 $ (351,477 ) $ 19,924,233
30, 2008
BALANCE, December 1,872,313 $ 18,723 $ 8,923,223 $ (7,320,909 ) $ 18,194,136 $ 757,218 $ 20,572,391
31, 2008
Comprehensive
income (loss):
Net income 0 0 0 0 (113,759 ) 0 (113,759 )
Change in fair
value of securities 0 0 0 0 0 811,241 811,241
available-for-sale,
net of tax
Comprehensive 697,482
income
Cash dividends
declared ($.33 per 0 0 0 0 (419,141 ) 0 (419,141 )
share)
BALANCE September 1,872,313 $ 18,723 $ 8,923,223 $ (7,320,909 ) $ 17,661,236 $ 1,568,459 $ 20,850,732
30, 2009
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended
September 30,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (113,759 ) $ 915,666
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 369,597 347,579
Provision for loan losses 2,552,400 727,300
Amortization, net (12,202 ) (72,187 )
Bank owned life insurance income (251,219 ) (268,773 )
Net (gain) loss on sale or write-down of:
Securities available for sale (3,965 ) (13,023 )
Loans held for sale (234,294 ) (183,386 )
Real estate owned 297,545 1,126
Proceeds from sale of loans 19,913,391 21,115,422
Loans originated for sale (20,234,021 ) (21,358,966 )
Decrease in accrued interest receivable 62,258 424,896
Increase in other assets (33,002 ) (23,926 )
Decrease in accrued interest payable (390,249 ) (325,838 )
Decrease (increase) in other liabilities (524,535 ) 240,420
Net cash used in provided by operating 1,397,945 1,526,310
activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Net loan (originations) repayments 11,318,539 (5,845,042
Net change in interest bearing deposits in (530,650 ) (2,476,186 )
other banks
Purchase of securities available-for-sale (15,471,997 ) (34,670,067 )
Proceeds from maturing, called and payments 11,191,002 52,552,193
received on securities available-for-sale
Proceeds from sale of Federal Home Loan Bank 369,300 1,642,500
stock
Purchase of Federal Home Loan Bank stock (762,600 ) (1,745,800 )
Purchase of premises and equipment (202,390 ) (218,109 )
Proceeds from sales or capital expenditures 2,174,375 1,381,368
related to real estate owned
Net cash provided by investing activities 8,085,579 10,620,857
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in passbook, NOW and 5,682,327 (158,225 )
money market deposit accounts
Proceeds from sales of time deposits 18,709,606 14,453,994
Payments on maturing time deposits (32,265,022 ) (24,855,004 )
Decrease (increase) in borrowed funds (755,000 ) 1,150,000
(Increase (decrease) in official checks 37,250 ) (573,506 )
outstanding
Repurchase of common stock (0 ) (2,003,111 )
Payments of cash dividends (419,141 ) (445,078 )
Net cash used in financing activities (9,009,980 ) (12,430,930 )
NET INCREASE (DECREASE) IN CASH AND CASH 473,544 (283,763 )
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF 3,896,727 4,783,834
PERIOD
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,370,271 $ 4,500,071
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest on deposits, $ 2,861,779 $ 4,686,483
borrowed funds, and subordinated debentures
Cash payments for income taxes 150,000 363,000
Real estate acquired through foreclosure 662,908 2,414,760
Source: Pinnacle Bancshares, Inc.
Related Categories
Press ReleasesStocks Mentioned
-0.85Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
