Risk factor
Critical default risk
Profitability factor
Very low or no dividends
About
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 sweep accounts, alongside individual retirement accounts (IRAs) and certificates of deposit, including access to the Certificate of Deposit Account Registry Service (CDARS). For credit needs, individual clients can secure home equity lines of credit and financing for single-family home construction. Businesses and non-profit organizations are offered general loans and lines of credit, letters of credit, commercial real estate loans, government-assisted financing, and credit cards. Beyond core banking, Pinnacle Bank provides essential services like ATM and debit cards, complete with associated protection, and safe deposit boxes. Its robust cash management suite features digital banking options such as online and mobile access, online bill payment, and mobile check deposit. It also provides advanced tools like Automated Clearing House (ACH) origination and fraud filters, remote deposit capture, a night depository, and Positive Pay. Further services encompass merchant card processing, wire transfers, and foreign currency exchange. Additionally, the bank offers asset-based lending solutions, such as accounts receivable financing, factoring, and purchase order financing, to help businesses manage their working capital. Serving a diverse clientele, including individuals, businesses, and nonprofit organizations, Pinnacle Bank has a local presence in cities such as Morgan Hill, Gilroy, Salinas, and Campbell. Founded in 2005, Pinnacle Bank maintains its headquarters in Gilroy, California.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITD.