Pinnacle Bank Announces Sixth Consecutive Profitable Quarter

(OTCBB:PBNK.OB) - Pinnacle Bank, headquartered in Gilroy, California, announced today its sixth consecutive profitable quarter. For the three months ended December 31, 2011, the Bank reported net income of $97,000 compared to $92,000 in the comparable quarter of 2010. Net income for 2011 was $551,000 compared to a loss of $1,296,000 in 2010.

As of December 31, 2011, total assets were $154.9 million, a 6% increase from the $146.1 million at December 31, 2010.

Loans were $131.8 million at December 31, 2011, an increase of $11.1 million (9%) from the December 31, 2010, balance of $120.7 million. The allowance for loan losses at December 31, 2011, was $2.8 million or 2.1% of loans. Nonaccrual loans at December 31, 2011, were $1.8 million, a reduction of $4.5 million from $6.3 million at December 31, 2010.

Deposits at December 31, 2011, were $137.7 million compared to $128.5 million at year end 2010, a 7% increase. December 31, 2011, non-interest bearing deposits increased 19% over December 31, 2010, from $29.9 million to $35.7 million.

Pinnacle Bank had one parcel of other real estate owned throughout 2011. During the fourth quarter of 2011, the carrying value was written down $300,000 to $1.86 million. The write down is included in non-interest expense.

“We are very pleased to report six straight quarters of profitability, while continuing to build a strong balance sheet,” said Susan K. Black, President and CEO. Ms. Black further stated, “The strength of our balance sheet relates directly to core relationships we have added as more businesses and professionals in Santa Clara, Monterey and San Benito counties are choosing to work with our team of professional bankers. We continue to build our franchise through careful, controlled growth and are optimistic about future opportunities.”

The bank’s capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2011, the Bank had a total risk based capital ratio of 12.43%.