Pinnacle Bankshares Corporation, the one-bank holding company for First National Bank , has reported the consolidated financial results for the second quarter and first half of 2020.
The company showed lower returns for the first half of 2020 majorly because of higher noninterest expense that were associated with the growth initiatives. The company’s growth initiatives also included its planned merger with Virginia Bank, and it saw a decline in net interest income after lower interest rates.
For the quarter ended June 30, 2020, Pinnacle Bankshares posted a net income of $667,000 or $0.43 per share as compared to prior year same period net income of $1,368,000 or $0.88 per share. During the first half of 2020, its net income remained $1,115,000 or $0.72 per share compared to $2,669,000 or $1.73 per share during first half of 2019.
Pinnacle Bankshares generated Net income of $1,554,000, or 58% decrease during the first half of 2020 as compared to the prior year same period mainly plowed by higher noninterest expense and lower net interest income. The company says the increase in the noninterest expense was mainly after the legal, accounting and investment banking fees related to the pending merger with Virginia Bank Bankshares, Inc. The reason of increase in noninterest expense also include the higher salaries and increased employee benefits for the strategic growth initiatives including a new Branch opening in Downtown Lynchburg, VA and new Office for Loan Production in Charlottesville, VA. For the first half of 2020, the company reported the adjusted net income after tax of $1,651,000 after excluding $678,000 as the merger-related expenses.
President and Chief Executive Officer of the Company and the Bank, Aubrey H. Hall said, “Overall, we are pleased with our operating performance, which net of merger expenses was in line with expectations despite the impacts of the COVID-19 pandemic. I am proud of how our employees have adapted to the current environment and have continued to provide a high level of service to our clients during these unprecedented times.”