An uptick in fees and a drop in expenses lifted Pinnacle Bancshares in the first quarter.
Earnings at the $210 million-asset company in Jasper, Ala., rose 9.3% from a year earlier, to $473,000, or 39 cents per share.
Net interest income fell 8.2% from the first quarter of 2012, to $1.7 million, primarily because of lower loan volumes. The net interest margin compressed 38 basis points, to 3.64%.
Noninterest income, including service charges, rose roughly 26% year over year, to $367,000. Noninterest expense decreased 1.3% from the first quarter of 2012, to $1.5 million.
Pinnacle's loan book shrank 1.8%, to $94 million. The provision for loan losses fell 50%, to $75,000, as credit quality improved.