EXHIBIT 99.1
Contact: Robert B. Nolen, Jr.
President and Chief
Executive Officer
(205) 221-4111
PINNACLE BANCSHARES ANNOUNCES RESULTS FOR FIRST QUARTER
Jasper, Alabama (May 13, 2005) - Robert B. Nolen, Jr., President and
Chief Executive Officer of Pinnacle Bancshares, Inc. (AMEX:PLE), today announced
Pinnacle's first quarter results of operations. For the three months ended March
31, 2005, net income was $326,000, compared with net income of $419,000 for the
three months ended March 31, 2004. Net interest income after the provision for
loan losses for the three months ended March 31, 2005, was $1,532,000, compared
with $1,614,000 in the same period last year.
Basic and diluted earnings per share for the three months ended March
31, 2005 were each $0.21 per share, compared to $0.27 and $0.26 per share,
respectively, for the same period last year.
Mr. Nolen attributed the decrease in net income primarily to a decrease
in Pinnacle's net interest margin due to increases in market interest rates. The
Company's net interest margin was 3.40% for the three months ended March 31,
2005, compared to 3.70% for the three months ended March 31, 2004. Mr. Nolen
commented that if interest rates continue to increase, he expects that the
margin will continue to decline. In such event, the Company will consider
several strategies to increase the net interest margin.
Mr. Nolen observed that, in comparison to the first quarter of 2004,
fees and service charges on deposit accounts decreased approximately $41,000 and
fees and charges on loans decreased approximately $22,000, as delinquencies were
reduced to historically low levels. These decreases were offset by an
approximate $75,000 decrease in losses on the sale of available-for-sale
securities. In addition, non-interest expense increased approximately $84,000,
in part due to higher regulatory compliance costs.
Mr. Nolen also noted that the provision for loan losses in the first
quarter of 2005 was $156,000, compared to $147,000 in the first quarter of 2004.
As a percent of total loans, the allowance for total loans receivable was 1.23%
at March 31, 2005, compared to 1.16% at December 31, 2004.
Pinnacle Bancshares, Inc.'s wholly owned subsidiary Pinnacle Bank has
six offices located in central and northwest Alabama.
PINNACLE BANCSHARES, INC.
Unaudited Financial Highlights
(In Thousands, except share and per share data)
Three Months Ended March 31,
-----------------------------------
2005 2004
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Net income $ 326,000 $ 419,000
Basic earnings per share $ 0.21 $ 0.27
Diluted earnings per share $ 0.21 $ 0.26
Performance ratios (annualized):
Return on average assets 0.61% 0.80%
Return on average equity 9.06% 9.58%
Interest rate spread 3.40% 3.70%
Net interest margin 3.40% 3.70%
Operating cost to assets 2.83% 2.73%
Weighted average basic shares
outstanding 1,552,078 1,565,929
Weighted average diluted shares
outstanding 1,586,786 1,612,176
Dividends per share $ 0.11 $ 0.10
Provision for loan losses $ 156,000 $ 147,000
March 31, 2005 December 31, 2004
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Total assets $ 213,763,000 $ 207,832,000
Loans receivable, net $ 99,639,000 $ 99,600,000
Deposits $ 187,293,000 $ 179,966,000
Total stockholders' equity $ 18,618,000 $ 19,914,000
Book value per share $ 12.00 $ 12.79
Stockholders' equity to assets ratio 8.71% 9.58%
Asset quality ratios:
Nonperforming loans as a percent of
total loans 0.88% 0.72%
Nonperforming assets as a percent of
total assets 0.67% 0.64%
Allowance for loan losses as a percent
of total loans 1.23% 1.16%
Allowance for loan losses as a percent
of nonperforming loans 140.61% 160.74%
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