Pinnacle Bankshares Corporation Announces 4th Quarter and 2005 Earnings.ALTAVISTA, Va. -- Pinnacle pinnacle (pĭn`ĭkəl), minor architectural motif of vertical tapering shape, usually crowning a pier, buttress, or gable. Although sometimes it appears in Renaissance design, as in the Certosa di Pavia, it is almost exclusively a medieval Bankshares Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :PPBN), the one-bank holding company (the "Company") of The First National Bank of Altavista (quarterly and 2005 annual consolidated results unaudited) reported today net income after taxes of $564,000 or $0.39 per basic share for the quarter ended December 31, 2005 and $2,107,000 or $1.44 per basic share for the year ended December 31, 2005 compared to net income after taxes of $425,000 or $0.29 per basic share and $1,819,000 or $1.25 per basic share for the same periods of 2004. The 15.83% increase in net income after taxes for the year ended December 31, 2005 was driven primarily by a 7.88% increase in net interest income derived from an increase in loan volume and a slight increase in net interest margin. Profitability as measured by the Company's return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 0.94% for the year ended December 31, 2005, compared to 0.86% for 2004. Another key indicator of performance, the return on average equity (ROE) for the year ended December 31, 2005 was 9.29%, compared to 8.33% for the year ended December 31, 2004. Net interest income was $7,983,000 for the year ended December 31, 2005. Net interest income was $2,117,000 for the three months ended December 31, 2005. The net interest margin increased to 3.83% for the year ended December 31, 2005 from 3.80% for the year ended December 31, 2004. The slight increase in net interest margin is due primarily to the upward repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of the adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. credits in the bank's loan portfolio. Noninterest income increased $141,000 or 6.25% for the year ended December 31, 2005 compared to 2004. Noninterest income increased $27,000 or 5.11% when comparing the three months ended December 31, 2005 to the same period of 2004. The increases from 2004 levels were primarily due to an 88.64% increase in commissions and fees as a result of an increase in commissions from investment product sales in 2005. Noninterest expense increased $265,000 or 3.84%, for the year ended December 31, 2005 compared to 2004. Noninterest expense increased $50,000 or 2.77% for the three months ended December 31, 2005 compared to the same period of 2004. The increase in noninterest expense in 2005 is attributed to the effect of overall growth of the Company on personnel expenses and fixed asset costs associated with bank premises additions. Total assets at December 31, 2005 were $233,490,000, up 6.22% from $219,813,000 at December 31, 2004. The principal components of the Company's assets at the end of the year were $13,814,000 in cash and cash equivalents, $29,261,000 in securities and $181,268,000 in net loans. During the year ended December 31, 2005, gross loans increased 13.99% or $22,427,000. Total liabilities at December 31, 2005 were $210,278,000, up 6.41% from $197,606,000 at December 31, 2004, with the increase reflecting an increase in total deposits of $12,607,000 or 6.41%. Noninterest-bearing demand deposits increased $2,150,000 or 10.88% and represented 10.47% of total deposits at December 31, 2005, compared to 10.05% at December 31, 2004. Savings and NOW accounts increased $4,852,000 or 8.11% and represented 30.90% of total deposits at December 31, 2005, compared to 30.42% at December 31, 2004. Time deposits increased $5,605,000 or 4.79% at December 31, 2005 and represented 58.63% of total deposits at December 31, 2005, compared to 59.53% at December 31, 2004. Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at December 31, 2005 was $23,212,000 including $18,362,000 in retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and $103,000 of net accumulated other comprehensive losses, which represents net unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on available-for-sale securities. At December 31, 2004, total stockholders' equity was $22,207,000. Selected financial highlights are shown below. Pinnacle Bankshares Corporation is a locally managed community banking organization based in Central Virginia. The one-bank holding company of The First National Bank of Altavista serves an area consisting primarily of Campbell County
This press release may contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of federal securities laws that involve significant risks and uncertainties. These statements are based on certain assumptions and analyses by the company and may relate to the company's future plans and performance. Although we believe our plans and expectations reflected in these forward-looking statements are reasonable, our ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and we can give no assurance that these plans or expectations will be achieved. Factors that could cause actual results to differ materially from management's expectations include, but are not limited to, changes in: interest rates, general economic conditions, the legislative/regulatory climate, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. and the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in our market area and accounting principles, policies and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . These risks and uncertainties should be considered in evaluating forward-looking statements contained herein, and you should not place undue reliance on such statements, which reflect our position as of the date of this release.
Pinnacle Bankshares Corporation
Selected Financial Highlights
(Unaudited)
(Amounts in thousands)
3 Months 3 Months 3 Months
Ended Ended Ended
12/31/2005 12/31/2004 12/31/2003
------------- --------------- --------------
Income Statement
Highlights
Net Interest Income $ 2,117 $ 1,875 $ 1,765
Provision for Loan Losses 23 20 108
Noninterest Income 555 528 598
Noninterest Expense 1,854 1,804 1,643
Net Income 564 425 446
Income Statement Year Year Year
Highlights Ended Ended Ended
12/31/2005 12/31/2004 12/31/2003
--------------- --------------- --------------
Net Interest Income $ 7,983 $ 7,400 $ 7,083
Provision for Loan Losses 230 223 470
Noninterest Income 2,396 2,255 2,578
Noninterest Expense 7,166 6,901 6,738
Net Income 2,107 1,819 1,772
Balance Sheet Highlights
12/31/2005 12/31/2004 12/31/2003
---------- ---------- -----------
Net Loans $ 181,268 $ 158,846 $ 147,883
Total Securities 29,261 34,224 37,108
Total Assets 233,490 219,813 206,344
Total Deposits 209,246 196,639 183,865
Stockholders' Equity 23,212 22,207 21,435
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