Pinnacle Bank reports higher second-quarter net income as deposits and loans rise from a year earlier

Pinnacle Bank reported unaudited net income of $1.482 million for the second quarter ended June 30, 2026, up from $1.319 million in the prior quarter but down from $2.173 million a year earlier. Basic and diluted earnings per share were $0.25, compared with $0.22 in the first quarter and $0.37 and $0.36, respectively, a year earlier. The Gilroy, California-based bank said total assets were $937.0 million at June 30, 2026, compared with $878.1 million a year earlier, while total loans rose to $576.4 million from $565.5 million and total deposits increased to $810.3 million from $759.3 million. Deposit growth was driven by a rise in interest-bearing deposits to $563.0 million from $497.2 million, partly offset by a decline in non-interest-bearing deposits to $247.3 million from $262.1 million. The allowance for loan losses stood at $7.293 million, or 1.27% of net loans, versus $6.905 million, or 1.22%, a year earlier. Nonperforming assets were $17.296 million at June 30, 2026, down from $21.911 million at March 31, 2026, but above $11.508 million a year earlier. Net interest income was $8.145 million in the quarter, down from $8.326 million in the prior quarter and $8.894 million a year earlier, as interest expense rose and interest income was slightly lower. Non-interest income fell to $46,000 from $499,000 in the first quarter and $600,000 a year earlier, while non-interest expense declined to $6.095 million from $6.906 million in the prior quarter and $6.484 million a year earlier. Pinnacle Bank said its capital position remained above regulatory guidelines for well-capitalized banks. At June 30, 2026, its total capital ratio was 17.54%, Common Equity Tier 1 capital ratio was 16.45%, Tier 1 capital ratio was 16.45%, and Tier 1 leverage ratio was 11.88%. Book value per share was $18.34, up from $18.08 at March 31, 2026 and $17.57 a year earlier.