Pinnacle Bankshares Corporation (OTCBB:PPBN), the one-bank holding company (the “Company”) for First National Bank (the “Bank”), reported net income today of $222,000 or $0.15 per basic and diluted share for the quarter ended December 31, 2011, and $1,063,000 or $0.71 per basic and diluted share for the year ended December 31, 2011. These results compare to net income of $63,000 or $0.04 per basic and diluted share and net income of $687,000 or $0.46 per basic and diluted share, respectively, for the same periods of 2010. Quarterly and 2011 annual consolidated results are unaudited.
Profitability as measured by the Company’s return on average assets (“ROA”) was 0.31% for 2011, compared to 0.21% for 2010, while return on average equity (“ROE”) for 2011 was 3.95%, compared to 2.62% for the prior year.
“We are pleased to report another year of improved earnings in 2011 as net income rose 55% compared to 2010 despite the continued challenging economic environment. The combination of improved margins, better asset quality and stability in noninterest income more than offset increases in the loan loss provision and noninterest expense,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank.
Net interest income was $12,091,000 for the year ended December 31, 2011 compared to $10,776,000 for the year ended December 31, 2010. For the three months ended December 31, 2011, net interest income was $3,081,000 compared to $2,955,000 for the same period in 2010. The Company’s net interest margin increased to 3.72% for the year ended December 31, 2011, from 3.37% for the year ended December 31, 2010. On a quarterly basis, net interest margin increased to 3.77% for the quarter ended December 31, 2011, from 3.68% for the quarter ended December 31, 2010, but decreased from 3.80% for the quarter ended September 30, 2011. Improvements in net interest income and net interest margin were driven by lower cost of funds as a result of decreased deposit rates and an increase in checking and savings accounts.