Pinnacle Bankshares Corporation (OTCQB:PPBN), the one-bank holding company (“the Company”) of First National Bank (“the Bank”), today reported its quarterly consolidated unaudited results. Net income was $107,000 or $0.07 per basic and diluted share for the quarter ended June 30, 2011, and $233,000 or $0.16 per basic and diluted share for the six months ended June 30, 2011 compared to net income of $67,000 or $0.05 per basic and diluted share and $250,000 or $0.17 per basic and diluted share, respectively, for the same periods of 2010.
Profitability as measured by the Company’s annualized return on average assets (“ROA”) was 0.14% for the six months ended June 30, 2011, compared to 0.15% for the same period in 2010. Annualized return on average equity (“ROE”) for the six months ended June 30, 2011 was 1.75%, compared to 1.92% for the same period in 2010.
Aubrey H. Hall, III, President and Chief Executive Officer of both the Company and the Bank, commented, “Net income before provision for loan losses generated during the second quarter and first half of 2011 have improved due to an increase in our net interest margin, which has been driven by lower cost of funds. Net income improvement, however, has continued to be challenged year to date due to higher provisions for loan losses. We have aggressively worked to improve problem loans and strengthen credit quality during the first half of 2011, and we are optimistic that these actions combined with a focus on controlling operating expenses will lead to higher net income in future periods.”
Net interest income was $5,904,000 for the six months ended June 30, 2011 compared to $5,165,000 for the six months ended June 30, 2010. Net interest income was $3,005,000 for the three months ended June 30, 2011 compared to $2,602,000 for the three months ended June 30, 2010.