First National Bank Reports 4q Profit

First National Bank Reports 4q Profit

The Altavista-based parent company of First National Bank, Pinnacle Bankshares Corporation, reported Friday a fourth-quarter profit of $734,000, or 48 cents per basic and diluted share, down 27.1 percent from $1,007,000 million, or 66 cents per basic and diluted share, during the same period last year.

Total loans increased 11.5 percent from $306,088,000 at the end of 2015 to $341,321,000 at the end of 2016. Total assets rose 18.5 percent from $371,261,000 to $440,104,000. Total deposits rose 20.6 percent from $332,403,000 to $399,743,000.

Stockholders’ equity rose 5.1 percent from $34,782,000 to $36,549,000 between the end of 2015 and the end of 2016, and book value, which is the company’s stockholders’ equity divided by its number of shares, increased 4.16 percent from $23.05 to $24.01.

The bank company’s net interest margin in the fourth quarter dropped from 3.93 percent in the fourth quarter of 2015 to 3.53 percent in the fourth quarter of 2016, although the bank noted its year-to-date net interest margin increased from 3.63 percent to 3.7 percent. Net interest margin is the difference between the interest income a bank earns and what it pays out to depositors; it is one measure of a bank’s success.

In November, Pinnacle Bankshares declared a cash dividend of 10 cents per share. It paid out Dec. 2 to shareholders of record as of Nov. 18. It was the 17th consecutive quarter the company paid a dividend. Assuming a share price of $28, the company has a dividend yield of 1.43 percent.

First National Bank, founded in 1908, operates eight branches in Lynchburg and the counties of Amherst, Bedford, Campbell and Pittsylvania, including two in the town of Altavista.

The bank is expanding into Lynchburg with a new Lynchburg headquarters on Odd Fellows Road. It has been renovating its Timberlake Road branch and relocating its Old Forest Road branch to a newly constructed building down the street.

Pinnacle Bankshares Corporation (OTCQX:PPBN) stock closed at $28.06 per share Friday, up 0.21 percent from the day before.

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