Pinnacle Bancshares Announces Results for Fourth Quarter and Year Ended December 31, 2006
March 27 2007 - 11:12AM
Business Wire
Robert B. Nolen, Jr., President and Chief Executive Officer of
Pinnacle Bancshares, Inc. (AMEX:PLE), today announced Pinnacle�s
results of operations for the fourth quarter and year ended
December 31, 2006. For the year ended December 31, 2006, net income
was $1,351,000, compared with net income of $1,517,000 in the prior
year. Net interest income after the provision for loan losses for
the year ended December 31, 2006, was $6,138,000, compared with
$6,267,000 in the prior year. For the three months ended December
31, 2006, net income was $359,000, compared with net income of
$322,000 for the three months ended December 31, 2005. Net interest
income after the provision for loan losses for the three months
ended December 31, 2006, was $1,593,000 compared with $1,570,000 in
the same period last year. Basic and diluted earnings were $0.90
per share and $0.89 per share, respectively, for the year ended
December 31, 2006. In 2005, basic and diluted earnings were $0.98
per share and $0.96 per share, respectively. For the three months
ended December 31, 2006, basic and diluted earnings were each $0.24
per share. For the same period last year, basic and diluted
earnings were each $0.21 per share. For the year ended December 31,
2006, the Company�s interest income was $13,265,000, compared to
$11,560,000 for the year ended December 31, 2005, an increase of
14.7%. However, for the year ended December 31, 2006, the Company�s
interest expense on deposits and borrowed funds was $6,469,000,
compared to $4,520,000 for the year ended December 31, 2005, an
increase of 43.1%. As a result, the Company�s net interest margin
was 3.20% for the year ended December 31, 2006, compared to 3.43%
for the year ended December 31, 2005. Mr. Nolen observed: �A
flattening, and ultimately inverting, of the yield curve compressed
our net interest margin during 2006. We anticipate that a
flat-to-inverted yield curve and a competitive deposit rate
environment will continue to exert pressure on our net interest
margin in 2007.� Mr. Nolen further noted that deposits grew 7.28%
in 2006, to $206,570,000 at December 31, 2006. The loan portfolio
continues to shift away from permanent residential mortgages which
represented approximately 26% of the loan portfolio at December 31,
2006. Also, the Company�s exposure to losses from subprime loans is
very low. In recent years, the Company has expanded its operations
in the Birmingham, Alabama metropolitan area. A new full-service
branch office in Gardendale, Alabama was opened in August 2006.
Additional annual expenses associated with the new branch and
additional commercial lending personnel were approximately $300,000
in 2006. The Company currently intends to expand further in the
Birmingham market and other markets contiguous with the Company�s
current market area as appropriate opportunities become available.
Information contained in this press release, other than historical
information, may be considered forward-looking in nature and is
subject to various risks, uncertainties and assumptions. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or expected. Among the
key factors that may have a direct bearing on Pinnacle�s operating
results, performance or financial condition are competition, the
demand for its products and services, the ability to expand, and
numerous other factors as set forth in filings with the Securities
and Exchange Commission. Pinnacle Bancshares, Inc.�s wholly owned
subsidiary Pinnacle Bank has seven offices located in central and
northwest Alabama. PINNACLE BANCSHARES, INC. Unaudited Financial
Highlights � Three Months Ended December 31, 2006� 2005� Net income
$ 359,000� $ 322,000� Basic earnings per share $ 0.24� $ 0.21�
Diluted earnings per share $ 0.24� $ 0.21� � Performance ratios
(annualized): Return on average assets 0.62% 0.59% Return on
average equity 7.50% 6.70% Interest rate spread 3.01% 3.26% Net
interest margin 3.05% 3.37% Operating cost to assets 2.58% 2.63% �
Weighted average basic shares outstanding 1,464,538� 1,543,026�
Weighted average diluted shares outstanding 1,470,285� 1,570,469�
Dividends per share $ 0.11� $ 0.11� Provision for loan losses $
22,000� $ 135,000� � � Year Ended December 31, 2006� 2005� Net
income $ 1,351,000� $ 1,517,000� Basic earnings per share $ 0.90� $
0.98� Diluted earnings per share $ 0.89� $ 0.96� � Performance
ratios: Return on average assets 0.60% 0.70% Return on average
equity 7.17% 7.77% Interest rate spread 3.10% 3.37% Net interest
margin 3.20% 3.43% Operating cost to assets 2.70% 2.71% � Weighted
average basic shares outstanding 1,493,234� 1,547,381� Weighted
average diluted shares outstanding 1,510,053� 1,576,041� Dividends
per share $ 0.44� $ 0.44� Provision for loan losses $ 405,000� $
575,000� December 31, 2006� 2005� � Total assets $ 232,234,000� $
220,249,000� Loans receivable, net $ 113,490,000� $ 106,256,000�
Deposits $ 206,570,000� $ 192,552,000� Total stockholders� equity $
19,406,000� $ 19,410,000� Book value per share $ 13.00� $ 12.54�
Stockholders� equity to assets ratio 8.36% 8.81% � Asset quality
ratios: Nonperforming loans as a percent of total loans 0.37% 0.22%
Nonperforming assets as a percent of total assets 0.27% 0.28%
Allowance for loan losses as a percent of total loans 1.20% 1.28%
Allowance for loan losses as a percent of nonperforming loans
329.05% 586.02%
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