Total assets as of December 31, 2020 were $860,832,000, up $360,302,000, or 72%, from $500,530,000 as of December 31, 2019. The principal components of the Company’s assets as of December 31, 2020 were $564,316,000 in total loans, $46,741,000 in securities and $211,064,000 in cash and cash equivalents. During 2020, cash and cash equivalents increased $178,161,000, or 542%, from $32,903,000 as of December 31, 2019 due mainly to an influx of deposits discussed below, the liquidation of Virginia Bank’s securities portfolio, which is in the process of being reinvested, and additional liquidity resulting from the merger with Virginia Bank. Total loans increased $170,796,000, or 43%, from $393,520,000 as of December 31, 2019, primarily due to the addition of approximately $154,000,000 in loans acquired through the merger with Virginia Bank, which included $13,503,000 in PPP loans. Additionally, the Company originated $28,208,000 in PPP loans in 2020. Outstanding balances on PPP loans originated by the Company and Virginia Bank as of December 31, 2020 were $26,456,000. Securities increased $1,783,000, or 4%, from $44,958,000 as of December 31, 2019.
Total liabilities as of December 31, 2020 were $800,156,000, up $345,071,000, or 76%, from $455,085,000 as of December 31, 2019. The increase in liabilities was driven by overall deposit growth of $331,053,000 consisting of a $166,308,000, or 68%, increase in savings and NOW accounts, a $139,607,000, or 126%, increase in demand deposits and a $25,138,000, or 26%, increase in time deposits since the prior year-end. Approximately $212,000,000 of the deposit growth in 2020 resulted from new accounts acquired through the merger. Additional deposit growth in 2020 was the result of federal government stimulus in response to the pandemic, an overall “flight to safety” by depositors and relationships that moved to the Bank as a result of branch closures in the Bank’s markets served by larger national financial institutions.
Total stockholders’ equity as of December 31, 2020 was $60,676,000 and consisted primarily of $44,827,000 in retained earnings. In comparison, as of December 31, 2019, total stockholders’ equity was $45,445,000. We believe both the Company and Bank remain “well capitalized” per all regulatory definitions.
As previously announced in a press release issued on November 2, 2020, the merger between the Pinnacle and Virginia Bank was closed on October 30, 2020. Conversion of Virginia Bank’s operational systems to First National’s operational system is scheduled to be completed by February 15, 2021.
In closing, Mr. Hall commented, “It is remarkable what Pinnacle accomplished during 2020 when you consider the challenges created by COVID-19 and its impacts on the economy and our mode of operation. Our success and current position are directly attributed to the commitment and dedication of our outstanding employees.”
Pinnacle Bankshares Corporation is a locally managed community banking organization based in Central Virginia. The one-bank holding company of First National Bank serves an area consisting primarily of all or portions of the Counties of Campbell, Pittsylvania, Bedford, Amherst, and the Cities of Lynchburg, Danville and Charlottesville. The Company has a total of seventeen branches with two located in the Town of Altavista in Campbell County, where the Bank was founded. Other branch locations include three additional branches in Campbell County, one branch in the Town of Amherst in Amherst County, three branches in the City of Lynchburg and one branch in Bedford County. Seven additional branches were acquired through the merger with Virginia Bank, including four in the City of Danville and three in Pittsylvania County. The Company also operates a loan production office located in Charlottesville. The Company plans to open its eighteenth branch at the Graves Mill Plaza in Forest in the first quarter of 2021. First National Bank is in its 113th year of operation.
This press release may contain “forward-looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Any statements contained herein that are not historical facts are forward-looking and are based on current assumptions and analysis by the Company. These forward-looking statements, including statements made in Mr. Hall’s quotes may include, but are not limited to, statements regarding the credit quality of our asset portfolio in future periods, the expected losses of nonperforming loans in future periods, returns and capital accretion during future periods, our cost of funds, the maintenance of our net interest margin, future operating results and business performance, our growth initiatives, results of the Company’s merger with Virginia Bank, and the potential effects of the COVID-19 Pandemic and related impacts on the Company’s financial condition and results of operations. 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
