PBNK.OB - Pinnacle Bank, headquartered in Gilroy, California, announced today net income for 2012 was $190,000 compared to $551,000 in 2011. The 2012 provision for loan losses was $1,438,000, an increase of $1,205,000 from $233,000 in 2011. Pre-provision, pre-tax earnings of $1,655,000 for 2012 compared to $784,000 in 2011.
As of December 31, 2012, total assets were $170.2 million, a 10% increase from the $154.9 million at December 31, 2011.
Loans were $138.0 million at December 31, 2012, a 5% increase or $6.2 million from the December 31, 2011, balance of $131.8 million. The allowance for loan losses at December 31, 2012, was $3.6 million or 2.6% of loans compared to $2.8 million or 2.1% at December 31, 2011.
Non-interest bearing deposits at December 31, 2012, increased 37% to $49.0 million from $35.7 million at December 31, 2011. Total deposits at December 31, 2012, were $152.5 million compared to $137.7 million at December 31, 2011, an 11% increase.
“We had a very strong year in 2012 with double digit asset growth and revenue at an all time high. We are also proactively and aggressively addressing a small number of loans made early in the Bank’s history which were adversely impacted by the recession. Reducing the carrying values of these loans led to the increase in the provision for loan losses,” stated Susan K. Black, President and CEO. “Despite the impact on earnings, we believe these writedowns strengthen our balance sheet and provide a solid footing for 2013. In addition, substantial recoveries are possible.”
“We are pleased by growth in loans and deposits during 2012 as we execute our strategy of increasing franchise value by careful controlled growth. We are particularly pleased with the growth in core business banking relationships as reflected by the 37% growth in non-interest bearing deposits,” added Ms. Black. “Despite margin compression and competitive pressures, we are building a solid franchise and remain optimistic about future opportunities.”