Pinnacle Bank, headquartered in Gilroy, announced its sixth consecutive profitable quarter. For the three months ending Dec. 31, 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 Dec.31, total assets were $154.9 million, a 6 percent increase from the $146.1 million the previous year.
Loans were $131.8 million at Dec. 31, 2011, an increase of $11.1 million (9 percent) from the Dec. 31, 2010, balance of $120.7 million. The allowance for loan losses at December 31, 2011, was $2.8 million or 2.1 percent 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 percent increase. December 31, 2011, non-interest bearing deposits increased 19 percent over Dec. 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. On Dec. 31, 2011, the Bank had a total risk based capital ratio of 12.43 percent.
For more information please go to www.pinnaclebankonline.com click on Investor Relations and December 2011 call report.
