EXHIBIT 99.1
Contact: Robert B. Nolen, Jr.
President and Chief
Executive Officer
(205) 221-4111
PINNACLE BANCSHARES ANNOUNCES RESULTS FOR
FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2004
Jasper, Alabama (March 21, 2005) - Robert B. Nolen, Jr., President and
Chief Executive Officer of Pinnacle Bancshares, Inc. (AMEX:PLE), today announced
Pinnacle's results of operations for the fourth quarter and year ended December
31, 2004.
For the year ended December 31, 2004, net income was $1,732,000,
compared with net income of $2,426,000 in the prior year. Net interest income
after the provision for loan losses for the year ended December 31, 2004, was
$6,532,000, compared with $6,418,000 in the prior year.
Mr. Nolen noted that non-interest income decreased from $2,845,000 for
the year ended December 31, 2003, to $1,763,000 for the year ended December 31,
2004. This decrease was primarily attributable to decreases in net gains on
sales of loans held for sale and available-for-sale securities of $360,000 and
$774,000, respectively. Mr. Nolen remarked that during the year ended December
31, 2004 the Company restructured its securities portfolio in response to
interest rates and incurred losses of $374,000 in connection with these
transactions.
For the three months ended December 31, 2004, net income was $451,000,
compared with net income of $556,000 for the three months ended December 31,
2003. Net interest income after the provision for loan losses for the three
months ended December 31, 2004, was $1,597,000 compared with $1,769,000 in the
same period last year.
Basic and diluted earnings were $1.11 per share and $1.09 per share,
respectively, for the year ended December 31, 2004. In 2003, basic and diluted
earnings were $1.53 per share and $1.50 per share, respectively. For the three
months ended December 31, 2004, basic and diluted earnings were $0.29 and $0.28
per share, respectively. For the same period last year, basic and diluted
earnings were $0.36 and $0.35 per share, respectively.
Mr. Nolen stated that the Company's net interest margin was 3.61% and
3.67% for the fourth quarter and year ended December 31, 2004, respectively,
compared to 3.83% and 3.71% for the fourth quarter and year ended December 31,
2003, respectively.
Mr. Nolen noted that the provision for loan losses in fiscal 2004 was
$588,000, compared to $963,000 in fiscal 2003. During the fourth quarter of
fiscal 2004, the provision for loan losses was $147,000, compared to $81,000 in
the same period last year. As a percent of total loans, the allowance for loan
losses was 1.16% at December 31, 2004 compared to 1.37% at December 31, 2003.
Mr. Nolen commented that the Company's equity position remained strong
at December 31, 2004: total stockholders' equity was $19,914,000, an increase of
2.5% from December 31, 2003; book value was $12.79 per share, a 4.4% increase;
and total stockholders equity to assets increased from 9.32% to 9.58%.
Pinnacle Bancshares, Inc.'s wholly owned subsidiary Pinnacle Bank has
six offices located in central and northwest Alabama.
PINNACLE BANCSHARES, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
Three Months Ended December 31,
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2004 2003
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Net income $ 451,000 $ 556,000
Basic earnings per share $ 0.29 $ 0.36
Diluted earnings per share $ 0.28 $ 0.35
Performance ratios (annualized):
Return on average assets 0.75% 1.06%
Return on average equity 9.02% 11.57%
Interest rate spread 3.54% 3.79%
Net interest margin 3.61% 3.83%
Operating cost to assets 2.90% 2.69%
Weighted average basic shares
outstanding 1,549,637 1,562,561
Weighted average diluted shares
outstanding 1,585,937 1,611,027
Dividends per share $ 0.11 $ 0.10
Provision for loan losses $ 147,000 $ 81,000
Year Ended December 31,
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2004 2003
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Net income $ 1,732,000 $ 2,426,000
Basic earnings per share $ 1.11 $ 1.53
Diluted earnings per share $ 1.09 $ 1.50
Performance ratios:
Return on average assets 0.82% 1.13%
Return on average equity 8.80% 12.45%
Interest rate spread 3.62% 3.65%
Net interest margin 3.67% 3.71%
Operating cost to assets 2.75% 2.58%
Weighted average basic shares
outstanding 1,557,454 1,586,044
Weighted average diluted shares
outstanding 1,596,253 1,620,082
Dividends per share $ 0.43 $ 0.40
Provision for loan losses $ 588,000 $ 963,000
2
December 31,
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2004 2003
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Total assets $ 207,832,000 $ 208,574,000
Loans receivable, net $ 99,600,000 $ 105,477,000
Deposits $ 179,966,000 $ 179,939,000
Total stockholders' equity $ 19,914,000 $ 19,431,000
Book value per share $ 12.79 $ 12.25
Stockholders' equity to assets ratio 9.58% 9.32%
Asset quality ratios:
Nonperforming loans as a percent of
total loans 0.72% 0.69%
Nonperforming assets as a percent of
total assets 0.64% 0.84%
Allowance for loan losses as a
percent of total loans 1.16% 1.37%
Allowance for loan losses as a
percent of nonperforming loans 160.74% 201.51%
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