U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1998
Commission File Number: 000-23909
PINNACLE BANKSHARES CORPORATION
(Exact name of small business issuer as specified in its charter)
VIRGINIA 54-1832714
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
P.O. Box 29
Altavista, Virginia 24517
(Address of principal executive offices)
(804) 369-3000
(Issuer's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
----- -----
At October 13, 1998, 719,025 shares of Pinnacle Bankshares Corporation's common
stock, $3 par value, were outstanding.
Transitional small business disclosure format: Yes No x .
---- -----
2
<PAGE>
PINNACLE BANKSHARES CORPORATION
FORM 10-QSB
September 30, 1998
INDEX
Part I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets as of September 30,
1998 and December 31, 1997 3
Consolidated Statements of Income for the three
month periods ended September 30, 1998 and 1997 4
Consolidated Statements of Income for the nine
month periods ended September 30, 1998 and 1997 5
Consolidated Statements of Cash Flows for
the nine month periods ended September 30,
1998 and 1997 6
Notes to Consolidated Financial Statements 7-9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 10
Part II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 4. Submission of Matters to a Vote of
Security Holders 15
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES
3
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
PINNACLE BANKSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands of dollars)
<TABLE>
<CAPTION>
Assets September 30, 1998 December 31, 1997
<S> <C> <C>
Cash and cash equivalents: (note 2)
Cash and due from banks $2,352 $3,304
Federal funds sold 5,633 3,387
----- -----
Total cash and cash equivalents 7,985 6,691
Securities (note 3):
Available-for-sale, at fair value 20,601 22,039
Held-to-maturity, at amortized cost 13,883 10,701
Federal Reserve Bank stock, at cost 75 75
Federal Home Loan Bank Stock, at cost 409 409
Loans, net (note 4) 86,411 86,816
Bank premises and equipment, net 4,043 3,158
Other real estate owned 62 151
Accrued income receivable 1,007 1,045
Other assets 636 565
-------- --------
Total assets $135,112 $131,650
======== ========
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand 9,640 9,524
Savings and NOW accounts 36,894 37,104
Time 71,322 68,905
------- -------
Total deposits 117,856 115,533
Note payable to Federal Home Loan Bank 925 1,000
Accrued interest payable 697 534
Other liabilities 736 541
------- -------
Total liabilities 120,214 117,608
------- -------
Stockholders' equity:
Common stock, $3 par value. Authorized 3,000,000 shares,
issued and outstanding 719,025 shares in 1997 and 1996 2,157 2,157
Capital surplus 338 338
Retained earnings 12,152 11,409
Accumulated other comprehensive income 251 138
------- ------
Total stockholders' equity 14,898 14,042
Total liabilities and stockholders' equity $135,112 $131,650
======== ========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
PINNACLE BANKSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands of dollars, except for per share amounts)
<TABLE>
<CAPTION>
For Three Months For Three Months
Ended Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Interest Income:
Interest and fees on loans $2,002 $2,002
Interest on securities:
U.S. Treasury 59 65
U.S. Government agencies 246 282
Corporate 58 43
States and political
subdivisions (tax exempt) 148 126
Other 26 18
Interest on federal funds sold 89 53
------ ------
Total interest income 2,628 2,589
------ ------
Interest expense:
Interest on deposits:
Savings and NOW accounts 284 286
Time - other 861 807
Time - $100,000 and over 170 167
Other interest expense 15 ---
----- -----
Total interest expense 1,330 1,260
----- -----
Net interest income 1,298 1,329
Provision for loan losses 75 75
----- -----
Net interest income after provision for loan losses 1,223 1,254
Noninterest income:
Service charges on deposit accounts 71 63
Net gain on calls and sales of securities 2 ---
Other operating income 53 32
----- ----
Total noninterest income 126 95
----- ----
Noninterest expense:
Salaries and employee benefits 468 414
Occupancy expense 45 26
Furniture and equipment 86 80
Other operating expenses 266 192
---- ----
Total noninterest expense 865 712
---- ----
Income before income tax expense 484 637
Income tax expense 137 179
----- -----
Net income $347 $458
===== =====
Net income per share (note 5) $0.48 $0.64
= ===== =====
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
PINNACLE BANKSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands of dollars, except for per share amounts)
<TABLE>
<CAPTION>
For Nine Months For Nine Months
Ended Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Interest Income:
Interest and fees on loans $5,981 $5,804
Interest on securities:
U.S. Treasury 174 194
U.S. Government agencies 744 864
Corporate 156 129
States and political subdivisions (tax exempt) 416 392
Other 69 50
Interest on federal funds sold 287 99
----- -----
Total interest income 7,827 7,532
----- -----
Interest expense:
Interest on deposits:
Savings and NOW accounts 848 841
Time - other 2,507 2,361
Time - $100,000 and over 506 427
Other interest expense 45 5
----- -----
Total interest expense 3,906 3,634
----- -----
Net interest income 3,921 3,898
Provision for loan losses 225 285
----- -----
Net interest income after provision for loan losses 3,696 3,613
Noninterest income:
Service charges on deposit accounts 200 187
Net gain on calls and sales of securities 6 4
Other operating income 157 117
----- -----
Total noninterest income 363 308
----- -----
Noninterest expense:
Salaries and employee benefits 1,394 1,229
Occupancy expense 124 74
Furniture and equipment 235 238
Other operating expenses 733 591
----- -----
Total noninterest expense 2,486 2,132
----- -----
Income before income tax expense 1,573 1,789
Income tax expense 457 497
------ ------
Net income $1,116 $1,292
====== ======
Net income per share (note 5) $1.55 $1.80
- ====== ======
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
PINNACLE BANKSHARES CORPORATION
CONSOLIDATED STATEMENTS ON CASH FLOWS
(Unaudited)
(Amounts in thousands of dollars)
<TABLE>
<CAPTION>
For Nine Months For Nine Months
Ended Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Cash flows from operating activities:
Net income $1,116 $1,292
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation of bank premises and equipment 161 158
Amortization of core deposit premium 10 12
Amortization of organization costs 5 3
Amortization of net unearned fees (98) (74)
Net amortization (accretion) of premiums and
discounts on securities 20 5
Provision for loan losses 225 285
Provision for deferred income taxes (83) 15
Net (gain) loss on sale of premises and equipment (6)
Net (gain) loss on calls and sales of securities (6) (4)
Net (increase) decrease in:
Accrued income receivable 38 91
Other assets 9 (22)
Net increase (decrease) in:
Accrued interest payable 163 117
Other liabilities 195 150
----- -----
Net cash provided by operating activities 1,749 2,028
===== =====
Cash flows from investing activities:
Purchases of held-to-maturity securities (4,257) ---
Purchases of available-for-sale securities (8,322) (217)
Proceeds from maturities and calls of held-to-maturity securities 1,071 604
Proceeds from sale, maturities and calls of available-for-sale
securities 9,921 1,849
Purchase of Federal Home Loan Bank stock --- (6)
Net (increase) decrease in loans 43 (6,921)
Recoveries on loans charged off 103 131
Purchases of bank premises and equipment (1,050) (1,386)
Proceeds from sale of bank premises and equipment 10 ---
Decrease in other real estate owned 151 6
----- ------
Net cash used in investing activities (2,330) (5,940)
====== ======
Cash flows from financing activites:
Net increase (decrease) in demand, savings and NOW deposits (94) 612
Net increase in time deposits 2,417 2,195
Dividends paid (373) (359)
Repayment of note payable to Federal Home Loan Bank (75) ---
----- -----
Net cash provided by financing activities 1,875 2,448
===== =====
Net increase (decrease) in cash and cash equivalents 1,294 (1,464)
Cash and cash equivalents, beginning of year 6,691 5,744
------ ------
Cash and cash equivalents, end of period $7,985 $4,280
====== ======
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
PINNACLE BANKSHARES CORPORATION
Notes to Consolidated Financial Statements
September 30, 1998
(Unaudited)
(In thousands, except for share data)
(1) General
The consolidated financial statements include the accounts of Pinnacle
Bankshares Corporation (the "Company") and its wholly-owned subsidiary, The
First National Bank of Altavista (the "Bank"). All material intercompany
accounts and transactions have been eliminated. The consolidated financial
statements conform to generally accepted accounting principles and to general
banking industry practices. In the opinion of the Company's management, the
accompanying unaudited consolidated financial statements contain all adjustments
of a normal recurring nature, necessary to present fairly the financial position
as of September 30, 1998, the results of operations for the three-month and
nine-month periods ended September 30, 1998 and 1997, and cash flows for the
nine-month periods ended September 30, 1998 and 1997.
These consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in Pinnacle
Bankshares Corporation's Annual Report for the year ended December 31, 1997.
The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year ending December 31,
1998.
(2) Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents include
cash on hand, amounts due from banks, interest-bearing deposits, and federal
funds sold.
(3) Securities
The amortized costs, gross unrealized gains, gross unrealized losses, and
fair values for securities at September 30, 1998, are shown in the table below.
As of September 30, 1998, securities with amortized costs of $3,149 and fair
values of $3,230 were pledged as collateral for public deposits.
7
<PAGE>
(3) (Continued)
Gross Gross
Amortized Unrealized Unrealized Fair
Available-for-Sale: Costs Gains Losses Values
------------------- ----- ----- ------ ------
U.S. Treasury securities
and obligations of U.S.
Government corporations
and agencies $ 10,447 160 - 10,607
Obligations of states and
political subdivisions 4,259 152 - 4,411
Mortgage-backed securities-
Government 4,899 70 ( 4) 4,965
Other securities 107 - - 107
Corporate securities 506 5 - 511
-------------------------------------------------------------------
Totals $ 20,218 387 ( 4) 20,601
-------------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Fair
Held-to-Maturity: Costs Gains Losses Values
----------------- ----- ----- ------ ------
U.S. Treasury securities
and obligations of U.S.
Government corporations
and agencies $ 2,909 20 - 2,929
Obligations of states and
political subdivisions 10,966 397 ( 4) 11,359
Mortgage-backed securities-
Private 8 - - 8
-------------------------------------------------------------------
Totals $ 13,883 417 ( 4) 14,296
-------------------------------------------------------------------
(4) Allowance for Loan Losses
Changes in the allowance for loan losses are as follows:
1998 1997
---- ----
Balance at January 1, $747 $674
Provision for loan losses 225 285
Loans charged off (233) (318)
Recoveries 103 131
---- ----
Balance at September 30, $842 $772
==== ====
(5) Net Income Per Share
Net income per share is based upon the weighted average number of common
stock shares outstanding during the period. Shares outstanding for all periods
presented were 719,025.
8
<PAGE>
(6) Comprehensive Income
In June 1997, the Financial Accounting Standards Board(FASB) issued
Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive
Income." Statement 130 establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses)
in a full set of general purpose financial statements. Statement 130 was issued
to address concerns over the practice of reporting elements of comprehensive
income directly in equity.
This statement requires all items that are required to be recognized under
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed in equal prominence with the other
financial statements. It does not require a specific format for that financial
statement but requires that an enterprise display an amount representing total
comprehensive income for the period in that financial statement. Enterprises are
required to classify items of "other comprehensive income" by their nature in
the financial statement and display the accumulated balance of other
comprehensive income separately from retained earnings and additional paid-in
capital in the equity section of the balance sheet. It does not require per
share amounts of comprehensive income to be disclosed.
Statement 130 is effective for fiscal years beginning after December 15,
1997. Comparative financial statements provided for earlier periods are required
to be reclassified to reflect the provisions of this statement. Publicly traded
enterprises that issue condensed financial statements for interim periods are
required to report a total for comprehensive income in those financial
statements.
Adoption of Statement 130 on January 1, 1998 did not have any effect on
the consolidated financial position, results of operation or liquidity of the
Company. However, Statement 130 does have an effect on financial statement
displays presented by the Company, since the Company has net unrealized
gains(losses) on available-for-sale securities, an item of other comprehensive
income. For the nine months ended September 30, 1998 and 1997, total
comprehensive income was $1,229 and $1,392, respectively. For the three months
ended September 30, 1998 and 1997, total comprehensive income was $460 and $526,
respectively.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS(Amounts in 000's)
The following discussion supplements and provides information about the
major components of the results of operations and financial condition, liquidity
and capital resources of Pinnacle Bankshares Corporation (the "Company"). The
discussion below reflects the Consolidated Financial Statements of the Company
and its subsidiary. This discussion and analysis should be read in conjunction
with the Consolidated Financial Statements, and supplemental financial data.
OVERVIEW
Total assets at September 30, 1998 were $135,112, up 2.63% from $131,650
at December 31, 1997. The principal components of the Company's assets at the
end of the period were $34,484 in securities and $86,411 in net loans. During
the nine month period, gross loans decreased .46% or $406. The Company's lending
activities are a principal source of income. The Company's premises and
equipment grew 28.02%, which was related to completion of an addition to the
main office facility and purchasing and preparing land for a new branch
location.
Total liabilities at September 30, 1998 were $120,214, up from $117,608 at
December 31, 1997, with the increase reflective of a rise in deposits of $2,323
or 2.01%. Non-interest bearing demand deposits increased $116 or 1.22% and
represented 8.18% of total deposits. The Company's deposits are provided by
individuals and businesses located within the communities served.
Total stockholders' equity at September 30, 1998 was $14,898. At December
31, 1997, total stockholders' equity was $14,042.
The Company had net income of $1,116 for the nine months ended September
30, 1998, compared with net income of $1,292 for the comparable period in 1997,
a decrease of 13.62%. The Company had net income of $347 for the three months
ended September 30, 1998, compared with net income of $458 for the comparable
period in 1997, a decrease of 24.24%. The results of operations for the nine
month periods ended September 30, 1998 and 1997 are not necessarily indicative
of the results to be expected for the full year.
Profitability as measured by the Company's return on average assets (ROA)
was 1.11% for the nine months ended September 30, 1998, down from 1.36% for the
same period of 1997. Another key indicator of performance, the return on average
equity (ROE) for the nine months ended September 30, 1998 was 10.28%, compared
to 13.33% for the nine months ended September 30, 1997.
10
<PAGE>
NET INTEREST INCOME
Net interest income represents the principal source of earnings for the
Company. Net interest income equals the amount by which interest income exceeds
interest expense. Changes in the volume and mix of earning assets and
interest-bearing liabilities, as well as their respective rates and yields, have
a significant impact on the level of net interest income.
The net interest margin decreased from 4.54% for the nine months ended
September 30, 1997, to 4.32% for the nine months ended September 30, 1998. Net
interest income was $3,921 for the nine months ended September 30, 1998 and is
attributable to interest income from loans and securities exceeding the cost
associated with interest paid on deposits. Net interest income increased $23 or
.59% for the nine month period ended September 30, 1998 over the same period of
1997.
Net interest income for the three months ended September 30, 1998 was
$1,298, down $31, or 2.33% from $1,329 for the same three months of 1997.
NON-INTEREST INCOME
The Company's principal sources of non-interest income are service charges
and fees on deposits accounts, particularly transaction accounts, and fees from
loans. Non-interest income increased $55 or 17.86% for the nine month period
ended September 30, 1998 over the same period of 1998. Non-interest income
increased $31, or 32.63% when comparing the three months ended September 30,
1998 to the same period of 1997. The majority of this increase is attributed to
income generated from fees on various loan and deposit products.
NON-INTEREST EXPENSE
Non-interest expense increased $354 or 16.60%, for the nine month period
ended September 30, 1998 over the same period of 1997. An increase of $153 or
21.49% is reflected when comparing the three month period ended September 30,
1998 to the same period of 1997. The increase in non-interest expense when
comparing the periods is attributed to overall growth of the Company. Specific
examples of growth contributing to the increase in non-interest expense include
additions to the Company's Mortgage Lending Division staff (and programs) and
expansion of the Company's main office facility which was completed and occupied
in the first quarter of 1998.
ALLOWANCE AND PROVISION FOR LOAN LOSSES
A provision for loan losses of $225 was made for the first nine months of
1998 compared with $285 in the first nine months of 1997. The provisions for
loan losses were $75 for the three month periods ended September 30, 1998 and
1997. Provisions are in recognition of management's estimate of risks inherent
with lending activities. Among other factors, management considers the Company's
11
<PAGE>
historical loss experience, the size and composition of the loan portfolio, the
value and adequacy of collateral and guarantors, non-performing credits, and
current and anticipated economic conditions. There are additional risks of
future loan losses which cannot be precisely quantified or attributed to
particular loans or classes of loans. Since those risks include general economic
trends as well as conditions affecting individual borrowers, the allowance for
loan losses is an estimate. The allowance is also subject to regulatory
examinations and determination as to adequacy, which may take into account such
factors as the methodology used to calculate the allowance. The allowance for
loan losses was $842 as of September 30, 1998, and represents approximately .96%
of gross loans outstanding. The allowance for loan losses was $747 as of
December 31, 1997, and represented .85% of gross loans outstanding. The
allowance for loan losses was $772 as of September 30, 1997, and represented
.88% of gross loans outstanding. Management believes the allowance was adequate
as of September 30, 1998. Management evaluates the reasonableness of the
allowance for loan losses on a quarterly basis and adjusts the provision as
deemed necessary.
NON-PERFORMING ASSETS
Total nonperforming assets, which consist of nonaccrual loans, were $45 at
September 30, 1998 and $38 at December 31, 1997. Management believes losses, if
any, will be minimal. Loans are generally placed in nonaccrual status when the
collection of principal and interest is 90 days or more past due, unless the
obligation is both well-secured and in the process of collection.
LIQUIDITY
Liquidity represents an institution's ability to meet present and future
financial obligations through either the sale or maturity of existing assets or
the acquisition of additional funds from alternative funding sources. Liquid
assets include cash, interest bearing deposits with banks, federal funds sold,
and investments and loans maturing within one year. The Company's ability to
obtain deposits and purchase funds at favorable rates also affects it liquidity.
As a result of the Company's management of liquid assets and the ability to
generate liquidity through alternative funding sources, management believes that
the bank maintains overall liquidity which is sufficient to satisfy its
depositors' requirements and to meet customers' credit needs. At September 30,
1998, cash, securities classified as available for sale and federal funds sold
were 22.09% of total earning assets compared to 23.06% at December 31,1997.
Additional sources of liquidity available to the Company include its capacity to
borrow additional funds through correspondent banks.
12
<PAGE>
CAPITAL
The Company's financial position at September 30, 1998 reflects liquidity
and capital levels currently adequate to fund anticipated future business
expansion. Capital ratios are well in excess of required regulatory minimums for
a well-capitalized institution. The assessment of capital adequacy depends on a
number of factors such as asset quality, liquidity, earnings performance, and
changing competitive conditions and economic forces. The adequacy of the
Company's capital is reviewed by management on an ongoing basis. Management
seeks to maintain a capital structure that will assure an adequate level of
capital to support anticipated asset growth and to absorb potential losses.
Stockholders' equity reached $14,898 at the end of the third quarter of
1998 compared to $14,042 at December 31, 1997. The leverage ratio consists of
Tier I capital divided by quarterly average assets. At September 30, 1998, the
Company's leverage ratio was 10.71% compared to 10.65% at December 31, 1997.
Each of these exceeds the required minimum leverage ratio of 3%.
OTHER
The Company continues to diligently address potential problems that the
Year 2000 may pose for our operation as well as for our borrowers. A Year 2000
committee which has representation from all areas of the Bank, including senior
management and internal audit, continues to monitor servicers and business
partners in their efforts to be Year 2000 prepared as well as complete our
internal testing and remediation projects. Inventory and Assessment of all Year
2000 related items is complete.
The Company neither develops or supports code for any information systems,
so our remediation efforts have been toward soliciting compliance from our
vendors, business partners and servicers and on-site testing. The Company has
identified all core and business critical applications and the hardware utilized
for each. Our environmental systems such as HVAC and security systems have been
included in our evaluations. Year 2000 compliance from the vendors for these
areas has been sought, and the Company notes that many of these applications are
currently compliant (subject to certain on-site testing) or the vendor has
submitted an acceptable timeline for compliance. The Company is monitoring the
compliance efforts of such vendors and notes that in all cases timelines are
being substantially adhered to.
Resources to address Year 2000 issues have been included in the budget
approved by the Board of Directors. As of September 30, actual expenditures have
approximated $5. The total remaining budget, which represents primarily testing
expenses, is not expected to exceed $35 to be come Year 2000 compliant.
13
<PAGE>
A written testing strategy has been developed and testing is underway.
On-site testing of critical applications will be completed by year-end 1998. As
of September 30, 50% of our in house applications have been tested with no
exceptions found that would interrupt our operations. Testing with third party
servicers has begun and will be completed by March, 1999. Testing includes data
exchange where appropriate. All testing is documented and reviewed for
acceptance by our internal audit. In addition, documentation of the acceptance
process will be made available for review to examiners.
The Company has completed the identification of credit risks associated
with borrowers who may not be Year 2000 prepared thru inquiry or completion of a
credit risk assessment questionnaire. A bankwide credit risk assessment has been
completed and submitted to the Board of Directors. Our lending area will
continue to monitor these identified borrowers as well as assess Year 2000 risk
of all new commercial credits. The Company expects that virtually all of our
borrowers will be low risk by first quarter 1999. Methods have been established,
however, to reduce risk for the Company if lack of compliance threatens to
impact the viability of our customers. Those methods to reduce risk would be to
require more collateral, require additional co-signors, require additional
provisions to the loan loss reserve, or to call the note.
The Company anticipates being Year 2000 ready. The Company is developing
contingency plans for all mission critical items in the event of disruption due
to unforseen circumstances or circumstances beyond our control. This plan is an
expansion of our business continuity plan developed to allow for continued
operation in an interrupted environment. Specific Year 2000 issues are being
incorporated into this plan. These plans are 75% completed and expected to be
substantially completed by year-end 1998.
EFFECTS OF INFLATION
The effect of changing prices on financial institutions is typically
different from other industries as the Company's assets and liabilities are
monetary in nature. Interest rates are significantly impacted by inflation, but
neither the timing nor the magnitude of the changes are directly related to
price level indices.
14
<PAGE>
PART II - OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the Company is a
party or of which the property of the Company is subject.
Item 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27-Financial Data Schedule
(b) Reports on Form 8-K
None.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
PINNACLE BANKSHARES CORPORATION
NOVEMBER 4, 1998 /s/ Robert H. Gilliam, Jr.
- ---------------- --------------------------
Date Robert H. Gilliam, Jr., President and
Chief Executive Officer
NOVEMBER 4, 1998 /s/ Dawn P. Crusinberry
- ---------------- -----------------------
Date Dawn P. Crusinberry, Secretary,
Treasurer and Chief Financial Officer
16
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FORM 10-QSB FOR THE QUARTER LY PERIOD ENDING SEPTEMBER 30, 1998 AND IS
QUALIFIED IN ITS ENITRETY BY REFERENCE TO SUCH 10-QSB
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,352
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 5,633
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20,601
<INVESTMENTS-CARRYING> 13,883
<INVESTMENTS-MARKET> 14,296
<LOANS> 86,411
<ALLOWANCE> 842
<TOTAL-ASSETS> 135,112
<DEPOSITS> 117,856
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,358
<LONG-TERM> 0
0
0
<COMMON> 2,157
<OTHER-SE> 12,741
<TOTAL-LIABILITIES-AND-EQUITY> 135,112
<INTEREST-LOAN> 5,981
<INTEREST-INVEST> 1,559
<INTEREST-OTHER> 287
<INTEREST-TOTAL> 7,827
<INTEREST-DEPOSIT> 3,861
<INTEREST-EXPENSE> 3,906
<INTEREST-INCOME-NET> 3,921
<LOAN-LOSSES> 225
<SECURITIES-GAINS> 6
<EXPENSE-OTHER> 2,486
<INCOME-PRETAX> 1,573
<INCOME-PRE-EXTRAORDINARY> 1,573
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1116
<EPS-PRIMARY> 1.55
<EPS-DILUTED> 1.55
<YIELD-ACTUAL> 4.32
<LOANS-NON> 45
<LOANS-PAST> 423
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 747
<CHARGE-OFFS> 233
<RECOVERIES> 103
<ALLOWANCE-CLOSE> 842
<ALLOWANCE-DOMESTIC> 842
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 587
</TABLE>
