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Contact: Robert B. Nolen, Jr.
President and Chief
Executive Officer
(205) 221-4111
PINNACLE BANCSHARES ANNOUNCES RESULTS FOR FIRST QUARTER
Jasper, Alabama (May 12, 2008) – Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB:PCLB), today announced Pinnacle’s first quarter results of operations.
For the three months ended March 31, 2008, net income was $282,000, compared with net income of $247,000 for the three months ended March 31, 2007. Net interest income for the three months ended March 31, 2008, was $1,646,000, compared with $1,576,000 in the same period last year.
Basic and diluted earnings per share for the three months ended March 31, 2008 were each $0.20 per share, compared to $0.17 each for the same period last year.
Mr. Nolen noted that net interest margin increased to 3.13% in the first quarter of 2008 from 3.00% in the fourth quarter of 2007 and 2.92% in the first quarter of 2007.
Mr. Nolen noted the provision for loan losses increased from $75,000 in the three months ended March 31, 2007 to $208,500 in the three months ended March 31, 2008. The substantial deterioration in the housing market adversely affected the Bank’s residential construction loan portfolio and the non-owner occupied residential loan portfolio with increases in both non-performing loans and foreclosed real estate. Non-performing loans increased to .47% of loans at March 31, 2008 compared to .34% at December 31, 2007 and .41% at March 31, 2007. Non-performing assets increased to 1.29% of assets at March 31, 2008, compared to 1.25% as of December 31, 2007 and 0.30% at March 31, 2007.
At March 31, 2008, the Company’s allowance for loan loses as a percent of total loans was 1.27%, compared to 1.22% at December 31, 2007. At March 31, 2008, the Company’s allowance for loan losses as a percent of nonperforming loans was 268.38%, compared to 359.38% at December 31, 2007. Based on current real estate valuations, the Company believes its allowance for loan losses is adequate. If residential real estate values continue to decline, additional increases in the allowance may be necessary.
At March 31, 2008, total stockholders’ equity and book value per share were $20,737,000 and $14.40 per share, respectively, compared to $20,934,000 and $14.30 per share, respectively, at December 31, 2007. Total assets at March 31, 2008, were $228,083,000, compared to total assets at December 31, 2007, of $235,945,000. Pinnacle’s strong equity to assets ratio was 9.09% at March 31, 2008.
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.
Pinnacle Bancshares, Inc.’s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama.
PINNACLE BANCSHARES, INC.
Unaudited Financial Highlights
(In Thousands, except share and per share data)
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Three Months Ended March 31,
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2008
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2007
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Net income
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$ 282,000
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$ 247,000
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Basic earnings per share
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$ 0.20
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$ 0.17
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Diluted earnings per share
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$ 0.20
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$ 0.17
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Performance ratios (annualized):
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Return on average assets
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0.48%
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0.42%
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Return on average equity
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5.33%
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5.07%
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Interest rate spread
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3.12%
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2.70%
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Net interest margin
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3.13%
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2.92%
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Operating cost to assets
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2.61%
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2.61%
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Weighted average basic shares
Outstanding
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1,440,135
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1,467,538
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Weighted average diluted shares
Outstanding
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1,441,478
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1,470,623
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Dividends per share
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$ 0.11
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$ 0.11
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Provision for loan losses
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$ 208,500
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$ 75,000
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March 31, 2008
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December 31, 2007
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Total assets
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$ 228,083,000
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$ 235,945,000
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Loans receivable, net
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$ 137,500,000
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$ 130,580,000
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Deposits
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$ 200,629,000
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$ 201,801,000
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Total stockholders’ equity
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$ 20,737,000
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$ 20,934,000
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Book value per share
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$ 14.40
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$ 14.30
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Stockholders’ equity to assets ratio
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9.09%
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8.87%
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Asset quality ratios:
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Nonperforming loans as a percent of
total loans
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0.47%
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0.34%
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Nonperforming assets as a percent of
total assets
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1.29%
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1.25%
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Allowance for loan losses as a percent
of total loans
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1.27%
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1.22%
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Allowance for loan losses as a percent
of nonperforming loans
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268.38%
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359.38%
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FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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March 31,
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December 31,
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ASSETS:
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Cash and cash equivalents
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$ 4,783,834
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Interest-bearing deposits in other banks
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5,285,911
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1,421,488
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Securities available-for-sale
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60,704,457
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79,529,600
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FHLB stock
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469,200
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725,900
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First National Bankers Bancshares stock
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525,000
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525,000
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Loans held for sale
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322,808
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252,466
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Loans receivable, net of allowances for loan losses
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of $1,774,404 and $1,610,078 respectively
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137,499,841
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130,579,585
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Real estate owned, net
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2,290,956
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2,507,116
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Premises and equipment, net
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