Pinnacle Bank (PBNK) AI Stock Analysis

Pinnacle Bank

(Other OTC:PBNK)

Select Model

Rating:69Neutral

Price Target:$20.00▲(6.67% Upside)

Action:reiterated

Date:08/06/26

The score is primarily supported by a stable financial profile (very low debt and solid cash-flow quality) and a mildly positive technical setup. It is held back by the clear recent deterioration in profitability/ROE and a relatively high P/E multiple without a provided dividend yield to improve the valuation case.

Positive Factors

Conservative balance sheet / very low debtNear-zero reported debt gives the bank durable financial flexibility: it reduces refinancing risk, supports higher regulatory resiliency, and allows management to fund lending or strategic initiatives from internal capital without relying on costly external borrowing over the next several quarters.

Negative Factors

Marked margin deteriorationA sharp decline in net margin cuts the bank's core earnings power and constrains reinvestment or returns to shareholders. If structural (funding mix, higher credit costs, or fee compression), this weakness can persist and meaningfully reduce long-term ROE and internal capital generation.

Pinnacle Bank (PBNK) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $111.95M
Dividend Yield: ―
Average Volume (3M): 3,313
Price to Earnings (P/E): 26.9
Beta (1Y): 0.14
Revenue Growth: -2.90%
EPS Growth: -61.74%
Country: US
Employees: 95
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Pinnacle Bank Business Overview & Revenue Model

Company Description

Pinnacle Bank operates as a commercial financial institution, providing a diverse array of deposit and credit services across Santa Clara, San Benito, and Monterey counties. Its deposit offerings include various checking, savings, money market, and s...

How the Company Makes Money

Pinnacle Bank primarily makes money through traditional banking revenue streams. The largest driver is typically net interest income: the bank earns interest and fees on loans (for example, commercial, real estate, and consumer loans) and on securiti...

Pinnacle Bank Financial Statement Overview

Summary

Strong multi-year revenue growth, a conservative balance sheet with debt reduced to effectively zero, and solid cash-flow quality (free cash flow closely tracking net income). Offsetting these positives, profitability has weakened recently: net margins and return on equity compressed meaningfully in 2024–2025, reducing confidence in near-term earnings power.

Income Statement

68Positive

Balance Sheet

78Positive

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.40M	50.63M	53.91M	50.82M	34.77M	31.21M
Gross Profit	4.71M	30.75M	36.39M	40.94M	33.90M	30.16M
EBITDA	376.00K	8.98M	14.61M	18.77M	14.80M	13.14M
Net Income	287.00K	5.45M	8.85M	11.77M	8.45M	7.75M
Balance Sheet
Total Assets	891.25M	890.35M	847.88M	817.42M	757.89M	738.47M
Cash, Cash Equivalents and Short-Term Investments	10.73M	208.26M	134.75M	143.26M	127.78M	271.45M
Total Debt	1.76M	0	2.13M	2.49M	2.82M	3.14M
Total Liabilities	784.92M	784.03M	748.91M	729.49M	684.20M	672.06M
Stockholders Equity	106.33M	106.33M	98.97M	87.93M	73.69M	66.41M
Cash Flow
Free Cash Flow	0	12.62M	14.78M	12.08M	8.40M	8.30M
Operating Cash Flow	0	12.74M	14.87M	12.15M	8.61M	8.82M
Investing Cash Flow	0	37.46M	-8.89M	-47.66M	-195.18M	27.17M
Financing Cash Flow	0	33.78M	18.42M	47.07M	10.83M	110.57M

Pinnacle Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

PBNK against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGYR	78Outperform	$143.96M	11.04	10.23%	1.70%	8.91%	30.08%
PBNK	69Neutral	$111.99M	26.85	3.13%	―	-2.90%	-61.74%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	65Neutral	$115.56M	13.27	7.76%	1.82%	0.49%	26.64%
UNB	63Neutral	$112.91M	8.68	15.07%	6.31%	3.17%	5.55%
PROV	60Neutral	$113.27M	17.81	5.18%	3.08%	0.19%	13.84%
RVSB	49Neutral	$119.92M	-41.56	-2.02%	1.33%	-10.03%	-162.70%

* Financial Sector Average

Performance Comparison

PBNK and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PBNK	Pinnacle Bank	18.75	-1.05	-5.30%
MGYR	Magyar Bancorp	22.30	5.42	32.14%
PROV	Provident Financial Holdings	18.17	3.16	21.02%
RVSB	Riverview	6.01	0.89	17.29%
UNB	Union Bankshares, Inc.	22.83	1.35	6.28%
SFBC	Sound Financial Bancorp, Inc.	45.00	1.61	3.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

Pinnacle Bank AI Stock Analysis