Pinnacle Bank ( (PBNK) ) has released its Q3 earnings. Here is a breakdown of the information Pinnacle Bank presented to its investors.
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Pinnacle Bank is a full-service business bank based in Gilroy, California, providing depository and credit services primarily in Santa Clara, San Benito, and Monterey counties, with a focus on commercial banking for businesses and nonprofit organizations.
Pinnacle Bank reported a decline in net income for the third quarter of 2024, with earnings amounting to $1.909 million, down from $2.728 million in the same period last year. The bank continues to see growth in its total assets, loans, and deposits, reflecting its ongoing strategy to expand its relationship banking services.
The bank’s total assets reached $893.1 million, marking a 6% increase from the previous year. Notably, gross loans have reached a record $617.0 million, up by 15%, while total deposits have grown by 5% to $780.9 million. However, the bank faced a rise in nonaccrual loans, now at $10.9 million, which includes commercial real estate and industrial loans, indicating potential challenges in loan recoverability.
Pinnacle Bank maintains a robust capital position, with a total capital ratio of 15.52%, well above regulatory requirements. The bank also received accolades for its financial performance, including a five-star rating from Bauer Financial and an ‘A’ health rating from DepositAccounts.com.
Looking ahead, Pinnacle Bank is poised to continue its growth trajectory, leveraging its personalized service model and strong community ties, while navigating the challenges posed by the current economic environment.