Pinnacle Bankshares Corporation · OTC:PPBN
Pinnacle Bankshares — Shareholder Meeting (May 2025)
78 slides from Pinnacle Bankshares's shareholder meeting presentation, May 13, 2025
Slide 1: 2025 Annual Meeting of Shareholders
2025 ANNUAL MEETING OF SHAREHOLDERS PINNACLE BANKSHARES CORPORATION TUESDAY, MAY 13, 2025 | 11:00 AM 1
Slide 2: Forward-Looking Statements
This presentation and/or statements made during this meeting may contain “forward- FORWARD- looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Any statements that are not historical facts are forward-looking and are based on current as
Slide 3: 2024 Overview
Overview 2024 Let’s Take a Look at the 2024 Overview 3
Slide 4: 2024 Overview – Interest Rates
2024 OVERVIEW ■ Fed raised Interest Rates 11 Times during 2022 – 2023 INTEREST RATES ■ Paused in early 2024 ■ Decreased Rates 3 times beginning in September 2024 ■ Total Decrease of 1% Fed Funds Target 4.25% to 4.5% Prime 7.5% ■ Treasury Yields 5 Year +46 BPS 10 Year +64 BPS 2024 Overview –I
Slide 5: 2024 Overview – Economy
2024 OVERVIEW ■ Real GDP 2.8% (Preliminary) ECONOMY ■ Inflation – CPI 2.9% 3.2% (Core) ■ Unemployment 4.1% (December 2024) 2024 Overview – Economy Real GDP – Adjusted for Inflation 2.8% (Preliminary) Inflation – CPI 2.9% 3.2% (Core) – Exclude Food & Energy Unemployment 4.1% (De
Slide 6: 2024 Overview – Equity Markets
2024 OVERVIEW ■ Banner Year in 2024 Dow up 13% EQUITY MARKETS NASDAQ up 29% S&P 500 up 23% ■ Generally responded favorably to U.S. Presidential Election Results ■ Geopolitical Events still presented Uncertainties ■ Concerns regarding Impact of New Administration’s proposed Policies on Inflatio
Slide 7: 2024 Overview – Banking Industry
2024 OVERVIEW ■ Liquidity Pressures Subsided BANKING INDUSTRY ■ Credit Quality still Good Concern about Impact of Interest Rate Repricing on Borrowers ■ Adjusted to Higher Cost of Funds, Many Banks > 2% - Creating Margin Pressures ■ Unrealized Losses in Securities Portfolios still negatively impac
Slide 8: 2024 Overview – Pinnacle & FNB
2024 OVERVIEW ■ Expanded Net Interest Margin PINNACLE & FNB ■ Increased Loan Volume ■ Grew Deposits & Deposit Accounts ■ Remained Core Funded with Ample Liquidity ■ Strengthened Leverage Ratio ■ Entered a New Market Which resulted in… 2024 Overview – Pinnacle & FNB Expanded Net Interest Margin I
Slide 9: 2024 Overview – Pinnacle & FNB
2024 OVERVIEW ■ Net Income consistent with 2023 (excluding BOLI Proceeds) PINNACLE & FNB ■ Significantly Improved Stock Price ■ Increased Cash Dividends And, once again… 2024 Overview – Pinnacle & FNB Net Income consistent with 2023 (excluding BOLI Proceeds) Significantly Improved Stock Price
Slide 10: 2024 Overview – Peer Ranking #3
2024 OVERVIEW ■ The #3 Overall Peer Bank Performance Ranking! PINNACLE & FNB (Per the Performance Trust Rank-the-Banks Virginia Report as of 12-31-2024) 2024 Overview – Pinnacle & FNB The #3 Overall Peer Bank Performance Ranking (per the Performance Trust Rank-the-Banks Virginia Report as of 12-31
Slide 11: Our Vision
Our Vision To be recognized as the Premier Community Banking Organization 11
Slide 12: Business Model
BUSINESS MODEL ■ Self-Funded with a Strong, Diversified Base of Core Deposits ■ Sound & Diversified Loan Portfolio ■ Top of Peer in Non-Interest Income ■ Modern Digital Platforms ■ Regional Footprint across Diversified Markets Our Business Model Includes: Self-Funded with a Strong, Diversified Bas
Slide 13: Employment of Top Financial Professionals because…
Employment of Top Financial Professionals because… 13
Slide 14: Our Employees are our Most Valuable Asset
OUR EMPLOYEES are our Most Valuable Asset! 14
Slide 15: Our Mission
Our Mission To Provide an Extraordinary Customer Experience 15
Slide 16: Objectives
OBJECTIVES ■ Managed Growth ■ Improved Efficiency & Productivity ■ Above Peer Returns ■ Preservation of our “Community Bank Approach” Our Objectives continue to be: Managed Growth Improved Efficiency & Productivity Above Peer Returns Preservation of our “Community Bank Approach” 16
Slide 17: Vision, Business Model, Mission & Objectives Position Us for Success
Our Vision, Business Model, Mission, & Objectives have us well position for Continued Success! 17
Slide 18: Review of 2024 Financial Performance
Review of 2024 Financial Performance And now, let’s review our 2024 Financial Performance 18
Slide 19: 2024 Financial Performance Highlights
2024 FINANCIAL ■ Net Income $9.2mm Overall Decrease of ($584m), or (6%) PERFORMANCE compared to 2023 Net of BOLI Proceeds, Net Income for 2024 & 2023 was $8.4mm Return on Assets .92% HIGHLIGHTS ■ ■ Return on Equity 12.49% 2024 Financial Performance – Highlights Net Income $9.2mm Overall Decr
Slide 20: Net Income Trend
NET INCOME TREND (IN THOUSANDS) $10,000 $9,762 $9,178 $8,000 $8,242 $6,000 $4,000 $4,375 $3,062 $2,000 2020 2021 2022 2023 2024 2024 Financial Performance – Highlights – Net Income Trend (Last 5 Years) • 2020 $3.1mm • 2021 $4.4mm • 2022 $8.2mm • 2023 $9.8mm • 2024 $9.2mm 20
Slide 21: Return on Assets Trend
RETURN ON ASSETS TREND 1.00% 1.00% 0.92% 0.80% 0.82% 0.60% 0.52% 0.47% 0.40% 2020 2021 2022 2023 2024 2024 Financial Performance – Highlights – Return on Assets Trend (Last 5 Years) • 2020 .52% • 2021 .47% • 2022 .82% • 2023 1.00% • 2024 .92% 21
Slide 22: 2024 Financial Performance Drivers
2024 FINANCIAL ■ Higher Net Interest Income PERFORMANCE ■ Higher Non-Interest Income, excluding BOLI Proceeds OFFSETTING DRIVERS ■ Higher Provision for Credit Losses ■ Higher Non-Interest Expense Drivers of Our 2024 Performance • Higher Net Interest Income • Higher Non-Interest Income, excluding BOL
Slide 23: 2024 Net Interest Income
2024 FINANCIAL ■ $35.4mm PERFORMANCE ■ Increase of $2.3mm, or 7% ■ Higher Yields on Earning Assets NET INTEREST OFFSETTING INCOME ■ Higher Cost of Funds 2024 Financial Performance – Net Interest Income • $35.4mm • Increase of $2.3mm, or 7% • Higher Yields on Earning Assets Offsetting • Higher Cost o
Slide 24: Net Interest Income Trend
NET INTEREST INCOME TREND (IN THOUSANDS) $40,000 $35,000 $35,448 $33,172 $30,000 $30,440 $25,000 $25,089 $20,000 $18,269 $15,000 2020 2021 2022 2023 2024 Net Interest Income Trend (Last 5 Years) • Higher Yields on Earning Assets drove the increase in 2024 24
Slide 25: Yield on Earning Assets Trend
YIELD ON EARNING ASSETS TREND 5.25% 4.98% 4.75% 4.44% 4.25% 3.75% 3.80% 3.25% 3.32% 3.06% 2.75% 2020 2021 2022 2023 2024 Yield on Earning Assets Trend (Last 5 Years) • Up 54 basis points to 4.98% in 2024 due to increased Interest Rates & Loan Volume 25
Slide 26: Cost to Fund Earning Assets Trend
COST TO FUND EARNINGS ASSETS TREND 1.40% 1.20% 1.28% 1.00% 0.92% 0.80% 0.60% 0.40% 0.46% 0.20% 0.20% 0.14% 0.00% 2020 2021 2022 2023 2024 Cost to Fund Earning Assets Trend (Last 5 Years) • In 2024, our Cost of Funds increased 36 basis points to 1.28% due to increased Interest Rates 26
Slide 27: Net Interest Margin Trend
NET INTEREST MARGIN TREND 4.00% 3.70% 3.50% 3.52% 3.34% 3.18% 3.00% 2.86% 2.50% 2020 2021 2022 2023 2024 Net Interest Margin Trend (Last 5 Years) • With the increase in Asset Yields exceeding the increase in Funding Costs, our Margin expanded 18 basis points to 3.70% in 2024 27
Slide 28: 2024 Non-Interest Income
2024 FINANCIAL ■ $7.9mm Overall Decrease of ($85m) PERFORMANCE ■ Increase of $499m, or 7.5% Excluding BOLI Proceeds ■ Primarily due to Higher NON-INTEREST Mortgage Loan Fees INCOME Merchant Card Fees Other Recoveries ■ BOLI Proceeds For 2023 $1.4mm For 2024 $779m Year-End Portfolio V
Slide 29: Non-Interest Income Trend
NON-INTEREST INCOME TREND (IN THOUSANDS) $9,000 $8,500 $8,672 $8,000 $7,964 $7,879 $7,500 $7,187 $7,000 $7,024 $6,500 2020 2021 2022 2023 2024 Non-Interest Income Trend (Last 5 Years) • 2020: $6mm without Merger Bargain Purchase Gain • 2023: $6.6mm Net of BOLI Proceeds • 2024: $7.1mm Net of BOLI Pro
Slide 30: Non-Interest Income Primary Contributors
NON-INTEREST INCOME PRIMARY CONTRIBUTORS Interchange Fees $2.3mm BOLI $1.2mm NSF & Overdraft Fees $992m Investments & Insurance $794m Loan Fee Income & Late Fees $623m Deposit & Other Service Charges $556m Merchant Card Fees $498m Non-Interest Income Primary Contributors What were the Primary Contri
Slide 31: Non-Interest Income to Average Assets Trend
NON-INTEREST INCOME TO AVERAGE ASSETS TREND 1.50% 1.48% 1.25% 1.00% 0.75% 0.78% 0.78% 0.75% 0.73% 0.50% 2020 2021 2022 2023 2024 Non-Interest Income to Average Assets Trend (Last 4 Years) • 2020 impacted by the Merger Bargain Purchase Gain • Target: > .75% • For 2024, 14% of Total Revenue 31
Slide 32: Provision for Credit Losses & Credit Quality
2024 FINANCIAL ■ $752m PERFORMANCE ■ Increase of $682m due to Increased Loan Volume ■ Criticized & Classified Loans Increased $6mm to $9mm PROVISION FOR Downgrade of 2 Commercial Relationships CREDIT LOSSES & No Losses Anticipated CREDIT QUALITY ■ Low Past Dues, Net Charge-Offs, & Non- Performin
Slide 33: Provision for Credit Losses Trend
PROVISION FOR CREDIT LOSSES TREND (IN THOUSANDS) $800 $752 $600 $400 $200 $252 $233 $190 $70 $0 2020 2021 2022 2023 2024 Provision for Credit Losses Trend (Last 5 Years) 33
Slide 34: Net Charge-Offs Trend
NET CHARGE-OFFS TREND (IN THOUSANDS) $300 $237 $200 $163 $100 $24 $34 $0 -$51 -$100 2020 2021 2022 2023 2024 Net Charge-Offs Trend (Last 5 Years) Net Charge-Offs were $163m in 2024 as compared to $34m 2023 .02% as a Percentage of Average Loans 34
Slide 35: Non-Performing Loans to Total Loans Ratio Trend
NON-PERFORMING LOANS TO TOTAL LOANS RATIO TREND 0.30% 0.28% 0.26% 0.24% 0.22% 0.20% 0.17% 0.10% 2020 2021 2022 2023 2024 Non-Performing Loans to Total Loans Ratio Trend (Last 5 Years) Non-Performing Loans have been very low since 2020 and compare favorably to peers Decreased slightly to .22% as
Slide 36: Allowance for Credit Losses to Total Loans Trend
ALLOWANCE FOR CREDIT LOSSES TO TOTAL LOANS TREND 0.80% 0.70% 0.71% 0.70% 0.66% 0.60% 0.62% 0.61% 0.50% 2020 2021 2022 2023 2025 Allowance for Credit Losses (ACL) to Total Loans Trend (Last 5 Years) Allowance for Credit Losses increased slightly to 0.71% in 2024 36
Slide 37: ACL to Non-Performing Loans Trend
ACL TO NON-PERFORMING LOANS TREND 400% 350% 367% 321% 300% 290% 250% 255% 216% 200% 2020 2021 2022 2023 2024 ACL to Non-Performing Loans Trend (Last 5 Years) Our Allowance balance was $5.1mm as of 12-31-2024 Providing over 3-to-1 coverage of Non-Performing Loans… which Management views as bein
Slide 38: 2024 Non-Interest Expense
2024 FINANCIAL ■ $31.4mm PERFORMANCE ■ Increase of $2.1mm, or 7% ■ Increase due to Higher Salaries & Employee Benefits NON-INTEREST Core Operating System Expense EXPENSE Occupancy Expense Other Losses – Fraud 2024 Financial Performance – Non-Interest Expense $31.4mm Increase of $2.1mm, o
Slide 39: Non-Interest Expense Trend
NON-INTEREST EXPENSE TREND (IN THOUSANDS) $35,000 $31,417 $30,000 $29,280 $27,237 $26,826 $25,000 $22,513 $20,000 2020 2021 2022 2023 2024 Non-Interest Expense Trend (Last 5 Years) 39
Slide 40: Non-Interest Expense to Average Assets Trend
NON-INTEREST EXPENSE TO AVERAGE ASSETS TREND 3.75% 3.50% 3.54% 3.25% 3.00% 3.01% 2.88% 2.75% 2.82% 2.81% 2.50% 2020 2021 2022 2023 2024 Non-Interest Expense to Average Assets Trend (Last 5 Years) Up to 3.01% in 2024 Target: < 2.75% 40
Slide 41: Efficiency Ratio Trend
EFFICIENCY RATIO TREND 85% 83.52% 83.14% 80% 75% 72.71% 72.49% 70% 71.20% 65% 2020 2021 2022 2023 2024 Efficiency Ratio Trend (Last 5 Years) Efficiency Ratio declined due to Improved Profitability 2020 – 83.52% 2021 – 83.14% 2022 – 72.71% 2023 – 71.20% 2024 – 72.49% Target: <70% 41
Slide 42: Assets per FTE Trend
ASSETS PER FTE TREND (IN THOUSANDS) $6,000 $5,500 $5,613 $5,584 $5,243 $5,000 $5,118 $4,500 $4,344 $4,000 2020 2021 2022 2023 2024 Assets per Full Time Equivalent Trend (Last 5 Years) Increased slightly to $5.6mm per FTE in 2024 Only $4.3mm per FTE in 2020 Target: >$6mm 42
Slide 43: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Category 12/31/2024 12/31/2023 $ Change % of Change Cash & Cash Equivalents $108mm $88mm $21mm 24% Total Loans $712mm $641mm $70mm 11% Total Securities $176mm $234mm ($58mm) (25%) Total Assets $1.04B $1.02B $27mm 2.7% Total Deposits $951mm $932mm $19mm 2% Equity $78mm $68mm
Slide 44: Cash & Cash Equivalents Trend
CASH & CASH EQUIVALENTS TREND (IN THOUSANDS) $300,000 $298,585 $250,000 $200,000 $210,214 $150,000 $100,000 $108,213 $87,589 $50,000 $36,521 $0 2020 2021 2022 2023 2024 Balance Sheet Trends – Cash & Cash Equivalents (last 5 Years) Increase of $21mm, or 24%, in 2024 due to the increase in Deposits
Slide 45: Loans Trend
LOANS TREND (IN THOUSANDS) $800,000 $700,000 $711,918 $641,437 $632,896 $600,000 $564,316 $552,236 $500,000 2020 2021 2022 2023 2024 Balance Sheet Trends – Loans (last 5 Years) Increase of $71mm, or 11%, in 2024 45
Slide 46: Securities Trend
SECURITIES TREND (IN THOUSANDS) $300,000 $250,000 $251,114 $233,579 $200,000 $175,816 $150,000 $100,000 $120,709 $50,000 $46,741 $0 2020 2021 2022 2023 2024 Balance Sheet Trends – Securities (last 5 Years) Decrease of ($58mm), or (25%), in 2024 due to Maturing Issues and a decline in Market Values
Slide 47: Total Assets Trend
TOTAL ASSETS TREND (IN THOUSANDS) $1,100,000 $1,043,994 $1,000,000 $1,016,528 $1,015,863 $969,931 $900,000 $860,514 $800,000 $700,000 $600,000 2020 2021 2022 2023 2024 Balance Sheet Trends – Total Assets (last 5 Years) Increase of $27mm, or 2.7%, in 2024, primarily due to Growth of Deposits & Reta
Slide 48: Total Deposits Trend
TOTAL DEPOSITS TREND (IN THOUSANDS) $1,000,000 $950,919 $938,079 $932,444 $900,000 $899,238 $800,000 $781,336 $700,000 2020 2021 2022 2023 2024 Balance Sheet Trends – Total Deposits (last 5 Years) Increase of $19mm, or 2%, in 2024, due to an increase in Municipal & Commercial Customer Balances dur
Slide 49: 2024 Liquidity & Capital
2024 FINANCIAL ■ Liquidity Ratio decreased to 32.60% Excluding AFS Securities: 12% PERFORMANCE ■ Leverage Ratio at the Bank Level increased to 9.21% LIQUIDITY & ■ Total Risk-Based Capital at the Bank Level decreased slightly to 13.52% CAPITAL 2024 Financial Performance – Liquidity & Capital Liqu
Slide 50: Liquidity Ratio Trend
LIQUIDITY RATIO TREND 50% 47.46% 45% 40% 35% 37.27% 34.12% 32.68% 32.60% 30% 25% 20% 2020 2021 2022 2023 2024 Ratios & Performance Trends – Liquidity Ratio (last 5 Years) Liquidity Ratio Excluding AFS Securities was 12% as of 12-31-2024 50
Slide 51: Leverage Ratio Trend
LEVERAGE RATIO TREND 10% 9% 9.21% 8.92% 8.82% 8% 8.06% 7.37% 7% 2020 2021 2022 2023 2024 Ratios & Performance Trends – Leverage Ratio (last 5 Years) Target: >8% 51
Slide 52: Total Risk-Based Capital Trend
TOTAL RISK-BASED CAPITAL TREND 15% 14% 13.67% 13.52% 13% 13.20% 12.63% 12.48% 12% 11% 10% 2020 2021 2022 2023 2024 Ratios & Performance Trends – Total Risk-Based Capital (last 5 Years) Target: >12% 52
Slide 53: 2024 Return on Investment
2024 FINANCIAL ■ Stock Performance PERFORMANCE Year-End Share Price $31.20 ■ Up $7.19 / 30% Annual Cash Dividends Per Share $1.00 ■ Up $0.15 / 18% RETURN ON Total Return 34% INVESTMENT Tangible Book Value Per Share $34.77 ■ Up $4.39 / 14% 2024 Financial Performance – Return on Investment S
Slide 54: Stock Price Trend
STOCK PRICE TREND (THROUGH YEAR-END 2024) $35 $30 $31.20 $25 $24.70 $24.01 $23.00 $20 $19.20 $15 2020 2021 2022 2023 2024 Return on Investment – Stock Price (last 5 Years) 2024 Year-End Share Price = $31.20 Up $7.19, or 30% S&P U.S. Banks Index up 31% 54
Slide 55: Tangible Book Value Trend
TANGIBLE BOOK VALUE TREND $35 $34.77 $30 $30.38 $25 $26.05 $26.74 $25.35 $20 $15 2020 2021 2022 2023 2024 Return on Investment – Tangible Book Value (last 5 Years) 2020 $26.05 – Decrease due to Merger 2021 $26.74 2022 $25.35 – Decrease due to Unrealized Losses in the Securities Portfolio 202
Slide 56: Annual Cash Dividends Paid Trend
ANNUAL CASH DIVIDENDS PAID TREND (IN THOUSANDS) $2,300 $2,212 $2,100 $1,900 $1,865 $1,700 $1,500 $1,300 $1,328 $1,100 $1,214 $957 $900 2020 2021 2022 2023 2024 Return on Investment – Annual Cash Dividends Paid (last 5 Years) 2020 $957m 2021 $1.2mm 2022 $1.3mm 2023 $1.9mm 2024 $2.2mm Annu
Slide 57: Share Repurchase (Buyback) Program
SHARE REPURCHASE (BUYBACK) PROGRAM ■ Have received Inquiries on Share Repurchase (Buyback) Program ■ Evaluating all Opportunities to Generate Shareholder Value ■ Primary Strategy – Sustain Capital to Support Present Growth ■ $10mm Subordinated Debt converts to Floating Interest Rate in 2025 May Re
Slide 58: 2024 Peer Rankings
2024 PEER RANKINGS PERFORMANCE TRUST CAPITAL PARTNERS 2024 Year-End Peer Rankings Performance Trust Capital Partners – Rank-The-Banks Virginia Report 58
Slide 59: Overall Performance Ranking #3 of 58 Banks
Peer Rankings – Overall Performance (4Q 2024) Net Non- Total Asset Composite Rank Bank Interest Interest ROAE Overhead Quality Score Margin Income 1 Chain Bridge Bank 25 25 4 2 1 11 2 First Bank & Trust Company 14 30 13 19 3 16 3 FIRST NATIONAL BANK 13 17 39 7 8 17 4 Bank of Southside 6 33 20 10 16
Slide 60: Component Rankings Comparison Year-Over-Year
COMPONENT RANKINGS COMPARISON (Year-Over-Year) 2023 2024 Net Interest Margin 25 13 Non-Interest Income 21 17 Total Overhead 35 39 Asset Quality 15 7 Return on Equity 6 8 Overall Rank 3 3 2024 Performance Compared to Peers: Component Rankings Comparisons (Year-Over-Year) 2023 2024 Net Interest Marg
Slide 61: Asset Size Ranking #28 of 58 Banks
Peer Rankings – Asset Size (4Q 2024) Assets ($000) Assets ($000) Total Assets Rank Bank / Office / Employee ($000) 7 Carter Bank & Trust $71,579 $6,812 $4,652,625 8 First Bank & Trust Company $141,540 $8,455 $3,821,583 16 First Bank $59,173 $6,640 $2,011,866 18 National Bank of Blacksburg $66,969 $7
Slide 62: Performance Trust (PT) Score
2024 Performance Compared to Peers: Performance Trust (PT) Score Performance Trust (PT) Score Q4 2024 = 127 / #12 out of 58 (59 showing on State graphic due to a subsequent merger after reporting period ended) Safety & Soundness Measure 62
Slide 63: Goal: Above Peer Performance With Below Peer Risk
GOAL Above Peer Performance With Below Peer Risk Above Peer Performance with Below Peer Risk 63
Slide 64: First Quarter Overview, Financial Performance, & Stock Price
First Quarter Overview, Financial Performance, & Current Pinnacle Stock Price 2025 Now let’s talk about the start to 2025 & our Focus Moving Forward 64
Slide 65: First Quarter 2025 Overview
FIRST QUARTER ■ Markets significantly “rattled” by New Administration’s Policies 2025 OVERVIEW Tariffs Geopolitical Positions ■ All Major Markets materially down from February Highs, but have Rebounded ■ Inflation & Direction of the Economy, including potential Recession, are Concerns ■ Fed held
Slide 66: First Quarter 2025 Financial Performance Highlights
FIRST QUARTER 2025 ■ Net Income $2.3mm FINANCIAL Increase of $177m, or 8.5% PERFORMANCE ■ Return on Assets .88% ■ Net Interest Margin 3.92% HIGHLIGHTS ■ Earnings Release Distributed 4-29-2025 2025 Financial Performance – Q1 – Highlights PLEASE NOTE that these results are unaudited at this time N
Slide 67: Current Pinnacle Stock Price
CURRENT ■ As of 5-9-2025 $33.50 PINNACLE Up $2.30, or 7.37%, compared to Year-End 2024 STOCK PRICE ■ Tangible Book Value As of 3-31-2025 $36.13 ■ Price to Tangible Book 93% ■ Price to LTMs EPS of $4.22 7.94x 2025 Financial Performance – 1Q – Pinnacle Stock Price As of 5-9-2025 $33.50 Up $2.3
Slide 68: South Boston Expansion
SOUTH BOSTON EXPANSION South Boston Expansion Hired a prior American National Bank Team in August 2024 Opened a Loan Production Office in September 2024 Opened a Temporary Branch within the LPO on October 1, 2024 Opened the Permanent Full-Service Branch on January 2, 2025 68
Slide 69: South Boston Team
South Boston Team Our South Boston Team Ronnie Moore, Senior VP & South Boston Market Leader Susan McLamb, Senior VP & Commercial Officer Kathy Bane, Vice President & Branch Manager 69
Slide 70: LPO & Branch Locations
Full-Service Branch As of March 31, 2025: ■ Deposits $8.6mm ■ Loans $18.6mm Loan Production Office LPO & Branch Locations LPO – 97A Main Street Branch – 4027 Halifax Road As of 3-31-2025, our South Boston Market has generated: Deposits $8.6mm Loans $18.6mm 70
Slide 71: Our Leadership
OUR LEADERSHIP BOARD OF DIRECTORS SENIOR MANAGEMENT SENIOR VICE PRESIDENTS Our Leadership Our Performance, Position, & Ability to Capitalize on Future Opportunities are made possible by our Leadership & Employees 71
Slide 72: Board of Directors
Board of Directors Here is our Board of Directors (Including Years of Board Service) who were Introduced Earlier in the Meeting Average Tenure is 10+ Years Our Longest-Serving Member is Jeb Burton, who has been on the Board since 1998 Our Newest Member is Ramsey Yeatts, who was elected to the
Slide 73: Our Senior Management Members
Our Senior Management Members (Including Years of Banking Experience) Average Banking Experience is 28 Years, with Five (5) of our Senior Management Members having greater than 30 Years PLEASE STAND Todd Hall, President & Chief Executive Officer (33 Years) Bryan Lemley, Executive Vice Presiden
Slide 74: Our Senior Vice Presidents
Our Senior Vice Presidents (Including Years of Banking Experience) PLEASE STAND Jim Minear, Lynchburg Market Leader (35 Years) R.J. Weaver, Danville Market Leader (28 Years) Sam Kessler, Charlottesville Market Leader (27 Years of Management, Financial, & Banking) Ronnie Moore, South Boston M
Slide 75: Moving Forward: Concerns / Challenges
MOVING FORWARD: CONCERNS/CHALLENGES ■ Impact of Tariffs / Direction of Economy & Interest Rates ■ Deposit Volume & Corresponding Asset Growth ■ Limited Capacity for Non-Owner Occupied CRE Loans ■ Fraud ■ Operational & Compliance Risks Moving Forward – Concerns / Challenges Impact of Tariffs / Dire
Slide 76: Moving Forward: Positives
MOVING FORWARD: POSITIVES ■ 1Q 2025 Year-Over-Year Performance ■ Performance Compared to Peers ■ Liquidity / Fed Funds Sold Position ■ Interest Rate Pressures Have Eased ■ Expanding Margin ■ Strengthened Capital Ratios ■ Strong Asset Quality Moving Forward – Positives 1Q 2025 Year-Over-Year Perfor
Slide 77: Moving Forward: Key Focus Initiatives
MOVING FORWARD: KEY FOCUS INITIATIVES ■ Remain Strategically Opportunistic ■ Evaluate Sub-Debt / Share Repurchases ■ Enhance Employee Training & Succession Plans ■ Core Processor Evaluation / Identify the Right Partner ■ Operational Enhancements & Process Improvements ■ Capitalize on Our New Markets
Slide 78: Pinnacle Bankshares Corporation – In Closing
PINNACLE BANKSHARES CORPORATION 2025 ANNUAL MEETING OF SHAREHOLDERS TUESDAY, MAY 13, 2025 | 11:00 AM In Closing: I am proud of Pinnacle’s 2024 Performance & our start to 2025 We have a Sound Business Model &… Outstanding Employees We are well positioned for Continued Success… As we aim to