Pinnacle Bank (OTCMKTS:PBNK) & Pacific Alliance Bank (OTCMKTS:PFBN) Critical Analysis

Risk and Volatility

Pinnacle Bank has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Pacific Alliance Bank has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

8.4% of Pinnacle Bank shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pinnacle Bank and Pacific Alliance Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bank	14.83%	7.72%	0.88%
Pacific Alliance Bank	N/A	N/A	N/A

Earnings & Valuation

This table compares Pinnacle Bank and Pacific Alliance Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bank	$53.91 million	2.24	$8.85 million	$1.78	11.43
Pacific Alliance Bank	$23.57 million	1.22	$1.43 million	N/A	N/A

Pinnacle Bank has higher revenue and earnings than Pacific Alliance Bank.

Summary

Pinnacle Bank beats Pacific Alliance Bank on 8 of the 8 factors compared between the two stocks.

About Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.

About Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.