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GILROY, Calif., April 25, 2024--(BUSINESS WIRE)--OTCQB: PBNK - 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. DepositAccounts.com 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 www.pinnacle.bank 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 www.pinnacle.bank click on Investor Relations and March 2024 call report.