Page 1

FOR IMMEDIATE RELEASE PRESS RELEASE : April 29 , 2021 PINNACLE BANK REACH HIGHER Pinnacle Bank Announces Q1 2021 Results Gilroy , CA - April 29 , 2021 - OTCQB : PBNK - Pinnacle Bank , headquartered in Gilroy , California , announced today unaudited net income for the three months ended March 31 , 2021 of $ 1,169,000 compared to $ 105,000 in the same period in 2020. The public health and economic uncertainties that emerged in March 2020 were the basis for a provision for loan losses of $ 1,000,000 in the first quarter of 2020 compared to no provision in the first quarter of 2021 . As of March 31 , 2021 , total assets were $ 684.0 million , a 58 % increase from the $ 432.7 million at March 31 , 2020 . Gross loans were $ 511.2 million at March 31 , 2021 , an increase of $ 164.5 million ( 47 % ) from the March 31 , 2020 balance of $ 346.6 million . Gross Paycheck Protection Program ( PPP ) loans at March 31 , 2021 were $ 129.6 million . Excluding the PPP loans , gross loans increased $ 35.0 million or 10 % . The allowance for loan losses at March 31 , 2021 was $ 6.118 million or 1.21 % of loans ( 1.62 % of net loans excluding the PPP loans ) compared to $ 4.988 million or 1.46 % of loans at March 31 , 2020 . Total deposits at March 31 , 2021 , increased to $ 609.4 million from $ 370.5 million at March 31 , 2020 , a 64 % increase . " During the first quarter we provided more than 200 clients with Round 2 Paycheck Protection Program loans totaling over $ 50 million . At the same time , others in our communities are seeing opportunities for growth . We will continue to support the determination , resiliency and entrepreneurial spirit of our clients and communities , " stated Jeffrey Payne , President and CEO . " We are honored to contribute to the success of our communities by providing premier business banking from Salinas Valley to Silicon Valley . I sincerely appreciate the continued efforts and contributions of our outstanding team of professional bankers , our committed directors and advisors and our many loyal clients . " As of March 31 , 2021 , COVID loan modifications , generally for interest only periods , were in place for 3 loans totaling $ 5.9 million compared to 10 loans totaling $ 11.5 million at December 31 , 2020. All of these loans were on performing status . The Bank's capital position remains above regulatory guidelines for well capitalized banks . At March 31 , 2021 , the Bank had a total capital ratio of 14.83 % . Book value per share at March 31 , 2021 was $ 11.12 . 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 . DepositAccounts.com awarded Pinnacle Bank an A + rating with a ranking of 80 out of 5,035 U.S. banks analyzed . The Findley Reports named Pinnacle Bank a 2020 Super Premier performing bank . For more information please go to www.pinnacle.bank click on Investor Relations and March 2021 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 click on Investor Relations and March 2021 call report . 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 . Media Contact : Pinnacle Bank Jeffrey D. Payne , President & CEO 408-762-7146