Pinnacle Bank Reports First Quarter 2024 Earnings

Pinnacle Bank, headquartered in Gilroy, California, announced today unaudited net income for the three months ended March 31, 2024 of $2,453,000, compared to net income of $2,723,000 for the same period in 2023. The decrease in net income from the first quarter of 2023 reflects lower noninterest income, higher provision for credit losses and higher noninterest expenses exceeding higher net interest income.

As of March 31, 2024, total assets were $833.1 million, a 9% increase from the $766.6 million at March 31, 2023.

Gross loans were $576.8 million at March 31, 2024, a new record and an increase of $48.6 million (9%) from the March 31, 2023 balance of $528.2 million. The allowance for credit losses at March 31, 2024 was $6.225 million or 1.09% of net loans compared to $5.732 million or 1.10% of net loans at March 31, 2023.

Total deposits at March 31, 2024 were $727.4 million, a 8% increase from $676.3 million at March 31, 2023 and a 2% increase from $714.7 million at December 31, 2023.

“Our markets continue to see good economic activity despite various challenges including higher interest rates and inflation. This quarter we saw loans grow to a new record as well as an increase in deposits. These achievements highlight the success of our approach to relationship banking and our high level of personalized service,” stated Jeffrey Payne, President and CEO. “We are honored to contribute to the success of our communities by providing premier business banking from Salinas Valley to Silicon Valley. We appreciate the ongoing efforts of our outstanding team of professional bankers, committed directors and advisors and our many loyal clients that contribute to our ongoing success and valued relationships.”

The Bank’s capital position remains above regulatory guidelines for well capitalized banks. At March 31, 2024, the Bank had a total capital ratio of 15.01%. Book value per share at March 31, 2024 was $15.64.

Pinnacle Bank is rated by Bauer Financial as Five-Star “Superior” for strong financial performance, the top rating given by the independent bank rating firm. awarded Pinnacle Bank an A health rating. The Findley Reports named Pinnacle Bank a 2023 Super Premier performing bank.

For more information, please go to click on Investor Relations and March 2024 call report.

About Pinnacle Bank

Pinnacle Bank is a full-service business bank dedicated to providing quality depository and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for businesses and nonprofit organizations, offering a variety of products and services that combine the best of personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy, Salinas and Campbell. For more information, please go to click on Investor Relations and March 2024 call report.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Summary Balance Sheet  Year over year change
(Unaudited, dollars in thousands)3/31/202412/31/20233/31/2023$%
Total assets$833,081 $817,420 $766,638 $66,443 9%
Gross loans$576,784 $564,454 $528,159 $48,625 9%
Allowance for loan losses$(6,225)$(5,952)$(5,732)$(493)9%
Non-interest bearing deposits$248,792 $262,757 $275,224 $(26,432)-10%
Interest-bearing deposits$478,599 $451,961 $401,071 $77,528 19%
Total deposits$727,391 $714,718 $676,295 $51,096 8%
Shareholders’ equity$91,245 $87,926 $77,076 $14,169 18%
Summary Income Statement    
(Unaudited, dollars in thousandsQuarter endedQuarter endedChangeQuarter endedChange
except per share data)3/31/202412/31/2023%3/31/2023%
Interest income$12,823$12,4783%$10,60221%
Interest expense 3,190 3,0186% 1,60499%
Net interest income 9,633 9,4602% 8,9987%
Provision for loan losses 306 144113% 136125%
Non-interest income 529 1,276-59% 1,161-54%
Non-interest expense 6,451 5,9998% 6,2773%
Income tax expense 952 1,340-29% 1,023-7%
Net income (loss)$2,453$3,252-25%$2,723-10%
Basic Earnings per share$0.42$0.57-26%$0.49-14%
Diluted Earnings per share$0.42$0.56-25%$0.48-13%
Book value per share$15.64$15.372%$13.6714%
Shares outstanding at period end 5,833,976 5,721,9762% 5,637,1483%
    required to be 
Capital Ratios3/31/202412/31/20233/31/2023well-capitalized 
Tier 1 leverage ratio11.27%10.72%10.23%5.00% 
Common Equity Tier 1 capital ratio14.06%13.72%12.97%6.50% 
Tier 1 capital ratio14.06%13.72%12.97%8.00% 
Total capital ratio15.01%14.64%13.91%10.00% 

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