Pinnacle Bank Announces Earnings for 2025
MWN-AI** Summary
Pinnacle Bank (OTCQB: PBNK), based in Gilroy, California, has reported its earnings for the fiscal year ending December 31, 2025, indicating a significant decline in net income to $5.45 million, down from $8.85 million in 2024. In the fourth quarter alone, net income was $287,000 compared to $3.42 million in the same quarter the previous year, primarily due to a proactive provision for loan losses of $4.23 million focused on concerns within its asset-based lending and hospitality sectors.
Despite the decrease in earnings, Pinnacle Bank’s total assets grew by 5%, reaching $890.4 million compared to $846.8 million in 2024. Total deposits also saw a 5% rise to $765.8 million, demonstrating the bank's focus on cultivating quality customer relationships. Gross loans, however, fell by 3% to $583.4 million.
The bank's provision for loan losses increased significantly, reflecting heightened caution in lending practices as it recorded $13.15 million, equivalent to 2.27% of net loans. This is substantially higher than the 1.23% recorded for 2024. Pinnacle Bank maintained a solid capital position, with a total capital ratio of 17.24%, well above regulatory minimums.
Jeffrey Payne, President and CEO, highlighted the ongoing emphasis on serving their communities and committed banking efforts, which remain integral for the bank's sustained growth. The bank continues to receive accolades for its financial performance, rated as a Five-Star “Superior” institution by Bauer Financial. As Pinnacle Bank continues to navigate economic headwinds, its strategic focus on relationship-building and prudent financial management will be crucial for its future success.
MWN-AI** Analysis
Pinnacle Bank (OTCQB: PBNK) recently announced its unaudited earnings for the year ending December 31, 2025, revealing a significant decline in net income compared to 2024, highlighting potential challenges ahead for the bank. The net income dropped to $5.45 million from $8.85 million the previous year, with a particular downturn visible in the fourth quarter, where income fell to $287,000 from $3.42 million in Q4 2024. This decline raises concerns for investors as it reflects not just a single-quarter issue but a broader struggle for profitability amidst rising credit provisions.
With a notable provision of $4.223 million aimed at addressing credit issues within its lending portfolios, particularly in asset-based lending and hospitality, it signals potential vulnerabilities in these sectors. Additionally, while total assets increased by 5% to $890.4 million, gross loans saw a 3% decrease, further emphasizing the existing pressures on loan growth and the overall economic environment.
Despite these headwinds, it is essential to note Pinnacle Bank remains highly capitalized above regulatory standards, with a total capital ratio of 17.24%. This strength could provide stability against short-term fluctuations and present a solid foundation for future growth.
Investors should approach Pinnacle Bank with caution, closely monitoring its credit quality and loan portfolio performance. While the bank's capital position and community-focused growth strategy remain compelling, the alarming decrease in net income and rising provision for loan losses suggest it may be prudent to adopt a defensive posture. Potential investors should watch for improvements in credit performance and operational efficiency before making significant investments in Pinnacle Bank.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
OTCQB: PBNK – Pinnacle Bank, headquartered in Gilroy, California, announced today unaudited net income for the year ended December 31, 2025 of $5,450,000 compared to net income to $8,846,000 in 2024. Unaudited net income for the fourth quarter of 2025 was $287,000 compared to $3,421,000 in the fourth quarter of 2024. In the fourth quarter of 2025, we proactively recorded a provision of $4.223 million to address credit issues in our asset-based lending and hospitality portfolios.
As of December 31, 2025, total assets were $890.4 million, a 5% increase from $846.8 million as of December 31, 2024.
Gross loans were $583.4 million as of December 31, 2025, a decrease of $17.2 million (-3%) from the December 31, 2024 balance of $600.6 million and an increase of $15.1 million (3%) from the September 30, 2025 balance of $568.4 million. The allowance for loan losses as of December 31, 2025 was $13.152 million or 2.27% of net loans compared to $7.352 million or 1.23% of net loans as of December 31, 2024.
Total deposits as of December 31, 2025, increased 5% to $765.8 million from $732.2 million as of December 31, 2024.
“Our team continues to focus on adding quality relationships which led to an increase in our deposits in 2025,” stated Jeffrey Payne, President and CEO. “The success of our communities from Salinas Valley to Silicon Valley remains a driving force for us to provide premier business banking through organic growth. We appreciate the ongoing efforts of our outstanding team of professional bankers, committed directors and advisors and our many loyal clients that contribute to our ongoing success and continued momentum.”
The Bank’s capital position remains above regulatory guidelines for well capitalized banks. At December 31, 2025, the Bank had a total capital ratio of 17.24%. Book value per share as of December 31, 2025 was $17.93.
Pinnacle Bank is rated by Bauer Financial as Five-Star “Superior” for strong financial performance, the top rating given by the independent bank rating firm. The Findley Reports named Pinnacle Bank a 2025 Premier performing bank.
For more information, please go to www.pinnacle.bank , click on Investor Relations and December 2025 call report.
About Pinnacle Bank
Pinnacle Bank is a full-service business bank dedicated to providing quality depository and credit services in Santa Clara, San Benito and Monterey counties. The bank focuses on commercial banking services for businesses and nonprofit organizations, offering a variety of products and services that combine the best of personal touch with convenient technology-based delivery. Pinnacle Bank has locations in Morgan Hill, Gilroy, Salinas and Campbell. For more information please go to www.pinnacle.bank and click on Investor Relations.
Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Pinnacle Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Summary Balance Sheet | Year over year change | ||||||||||||
(Unaudited, dollars in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | $ | % | ||||||||
Total assets | $ | 890,355 | $ | 905,733 | $ | 846,848 | $ | 43,507 | 5% | ||||
Gross loans | $ | 583,428 | $ | 568,361 | $ | 600,637 | $ | (17,209 | ) | -3% | |||
Allowance for loan losses | $ | (13,152 | ) | $ | (8,922 | ) | $ | (7,352 | ) | $ | (5,800 | ) | 79% |
Non-interest bearing deposits | $ | 248,025 | $ | 255,482 | $ | 248,677 | $ | (652 | ) | 0% | |||
Interest-bearing deposits | $ | 517,822 | $ | 529,495 | $ | 483,555 | $ | 34,267 | 7% | ||||
Total deposits | $ | 765,846 | $ | 784,977 | $ | 732,232 | $ | 33,614 | 5% | ||||
Shareholders' equity | $ | 106,328 | $ | 105,543 | $ | 98,975 | $ | 7,353 | 7% | ||||
Summary Income Statement | ||||||||||
(Unaudited, dollars in thousands | Year ended | Year ended | Change | Change | ||||||
except per share data) | 12/31/2025 | 12/31/2024 | $ | % | ||||||
Interest income | $ | 48,764 | $ | 51,711 | $ | (2,947 | ) | -5.7% | ||
Interest expense | 13,653 | 13,727 | (74 | ) | -0.5% | |||||
Net interest income | 35,110 | 37,984 | (2,873 | ) | -7.6% | |||||
Provision for loan losses | 6,223 | 3,791 | 2,432 | 64.1% | ||||||
Non-interest income | 1,867 | 2,196 | (329 | ) | -15.0% | |||||
Non-interest expense | 23,328 | 24,088 | (760 | ) | -3.2% | |||||
Income tax expense | 1,976 | 3,455 | (1,479 | ) | -42.8% | |||||
Net income (loss) | $ | 5,450 | $ | 8,846 | $ | (3,396 | ) | -38.4% | ||
Basic Earnings (loss) per share | $ | 0.92 | $ | 1.52 | $ | (0.60 | ) | -39.7% | ||
Diluted Earnings (loss) per share | $ | 0.91 | $ | 1.49 | $ | (0.58 | ) | -38.9% | ||
Book value per share | $ | 17.93 | $ | 16.87 | $ | 1.06 | 6.3% | |||
Shares outstanding at period end | 5,928,916 | 5,865,666 | 63,250 | 1.1% | ||||||
Nonperforming assets | |||||||||
unaudited (dollars in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||
Nonperforming assets | $ | 19,967 | $ | 16,845 | $ | 11,968 | |||
Minimum | ||||||||
required to be | ||||||||
Capital Ratios | 12/31/2025 | 9/30/2025 | 12/31/2024 | well-capitalized | ||||
Tier 1 leverage ratio | 11.80 | % | 11.87 | % | 11.41 | % | 5.00 | % |
Common Equity Tier 1 capital ratio | 15.98 | % | 16.51 | % | 15.22 | % | 6.50 | % |
Tier 1 capital ratio | 15.98 | % | 16.51 | % | 15.22 | % | 8.00 | % |
Total capital ratio | 17.24 | % | 17.76 | % | 16.34 | % | 10.00 | % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260129524195/en/
Media Contact:
Pinnacle Bank
Jeffrey D. Payne, President & CEO
408-762-7146
FAQ**
What factors contributed to the significant decrease in net income for Pinnacle Bank PBNK from $8.846 million in 2024 to $5.450 million in 2025, and how does the bank plan to address these challenges moving forward?
How does the increase in the allowance for loan losses at Pinnacle Bank PBNK, which grew from $7.352 million in 20to $13.152 million in 2025, impact the bank's lending strategy and financial stability?
With total deposits increasing by 5% to $765.8 million at Pinnacle Bank PBNK, what strategies are being implemented to continue attracting quality business relationships in the competitive banking landscape?
Given that Pinnacle Bank PBNK's capital ratios remain above regulatory guidelines for well-capitalized banks, how does the bank plan to leverage this position for growth and to mitigate potential risks in the current economic environment?
**MWN-AI FAQ is based on asking OpenAI questions about Pinnacle Bank (OTC: PBNK).
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