Pinnacle Bankshares Corporation Announces Fourth Quarter Earnings.ALTAVISTA, Va. -- Pinnacle 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 2004 annual consolidated results unaudited) reported today net income after taxes of $425,000 or $0.29 per basic share for the quarter ended December 31, 2004 and $1,819,000 or $1.25 per basic share for the year ended December 31, 2004 compared to net income after taxes of $446,000 or $0.31 per basic share and $1,772,000 or $1.22 per basic share for the same periods of 2003. The 2.65% increase in net income after taxes for the year ended December 31, 2004 was driven primarily by a 4.47% increase in net interest income derived from an increase in loan volume and a lower interest cost paid on deposits. A lower provision for loan losses in 2004, reflecting fewer problem loans and low historical losses, was offset by lower fee income due to a decline in mortgage loan originations 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. . 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 0.86% for the year ended December 31, 2004, compared to 0.87% for the same period of 2003. Another key indicator of performance, the return on average equity (ROE) for the year ended December 31, 2004 was 8.33%, compared to 8.51% for the year ended December 31, 2003. Net interest income was $7,400,000 for the year ended December 31, 2004. Net interest income was $1,874,000 for the three months ended December 31, 2004. The net interest margin increased to 3.80% for the year ended December 31, 2004 from 3.77% for the year ended December 31, 2003. 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. While loan yields continued to rise, cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. increased in the fourth quarter slightly compressing com·press tr.v. com·pressed, com·press·ing, com·press·es 1. To press together: compressed her lips. 2. To make more compact by or as if by pressing. 3. the margin. The Company will monitor the net interest margin and will take steps accordingly to combat the further compression of the net interest margin in 2005. Noninterest income decreased $323,000 or 12.53% for the year ended December 31, 2004 compared to the same period of 2003. Noninterest income decreased $70,000 or 11.71% when comparing the three months ended December 31, 2004 to the same period of 2003. The decreases from 2003 levels were primarily due to a 44.17% decrease in fees on sales of mortgage loans as a result of a decline in mortgage loan production in 2004. Noninterest expense increased $163,000 or 2.42%, for the year ended December 31, 2004 compared to the same period of 2003. Noninterest expense increased $161,000 or 9.80% for the three months ended December 31, 2004 compared to the same period of 2003. The $161,000 increase for the three months ended December 31, 2004 when compared with the same period of 2003 was due mainly to $68,000 in collection expenses associated with three loans, a $51,000 increase in salary and employee benefits expense and a $48,000 increase in furniture and equipment expense. The furniture and equipment expense increase was mainly associated with depreciation expense incurred due to the opening in August 2004 of the bank's new branch located in Forest, Virginia Forest is a census-designated place (CDP) in Bedford County, Virginia, United States. The population was 8,006 at the 2000 census. Geography Forest is located at (37.370723, -79.266801)GR1. . Total assets at December 31, 2004 were $219,813,000 up 6.53% from $206,344,000 at December 31, 2003. The principal components of the Company's assets at the end of the period were $17,336,000 in cash and cash equivalents, $34,224,000 in securities and $158,846,000 in net loans. During the year ended December 31, 2004, net loans increased 7.41% or $10,963,000 from $147,883,000 at December 31, 2003. Also during the year ended December 31, 2004, securities decreased 7.77% or $2,884,000 from December 31, 2003. Total liabilities at December 31, 2004 were $197,606,000 up from $184,909,000 at December 31, 2003, primarily as a result of an increase in demand deposits from December 31, 2003 of $3,076,000 or 18.43% and an increase in time deposits from December 31, 2003 of $12,537,000 or 11.99%. 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, 2004 was $22,207,000 including $16,969,000 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 $304,000 of accumulated other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as , which represents net unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on available-for-sale securities. At December 31, 2003, total stockholders' equity was $21,435,000. 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. 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
12/31/2004 12/31/2003 12/31/2002
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Income Statement
Highlights
Net Interest Income $1,874 $1,765 $1,738
Provision for Loan Losses 20 108 114
Noninterest Income 528 598 499
Noninterest Expense 1,804 1,643 1,429
Net Income 425 446 487
Income Statement Year Year Year
Highlights Ended Ended Ended
12/31/2004 12/31/2003 12/31/2002
--------------------------------------------
Net Interest Income $7,400 $7,083 $7,096
Provision for Loan Losses 223 470 429
Noninterest Income 2,255 2,578 1,756
Noninterest Expense 6,901 6,738 5,814
Net Income 1,819 1,772 1,886
Balance Sheet
Highlights
12/31/2004 12/31/2003 12/31/2002
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Net Loans $158,846 $147,883 $129,999
Total Securities 34,224 37,108 42,731
Total Assets 219,813 206,344 199,899
Total Deposits 196,639 183,865 178,243
Stockholder's Equity 22,207 21,435 20,372
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