Pinnacle Bankshares Corporation · OTC:PPBN
Pinnacle Bankshares — Shareholder Meeting (May 2022)
90 slides from Pinnacle Bankshares's shareholder meeting presentation, May 2022
Slide 1: 2022 Annual Shareholders' Meeting
2022 ANNU
Slide 2: Forward-looking statements
‘Statements madein this resentation may contain “forwardooking stotements" within the meaningof federal securities laws thot lvoe significantrsks and uncertainties. Any statements that ore not istorcal fats ae fowortooking and are based on ‘current assumptions and analysis by the Company. These forw
Slide 3: First National Bank is Positioned for the Future
CLICK HERE TO VIEW VIDEO First National Bank is Positioned for the Future • We are a Community Bank stretching from Danville to Charlottesville • Our history proves our resilience, commitment to our clients and dedication to our mission… • To provide an “Extraordinary Customer Experience” • We have
Slide 4: Our Vision
for First National Bank is to be recognized as the “Premier Community Bank” in Virginia Our Vision: Our Vision remains to be recognized as the Premier Community Bank in Virginia. 4
Slide 5: Our Business Model
Our Business Model continues to be focused on: • Maintaining our Strong Base of Core Deposits • Managing a Sound & Diversified Loan Portfolio • Cultivating Top of Peer Non-Interest Revenue Streams & • Utilizing of State of the Art Digital Platforms 5
Slide 6: Our People
Our People are: • Top Financial Professionals empowered to serve • Who have a Strong Desire to Continually Improve • That are Committed to established Service Standards & • Providing an Extraordinary Customer Experience 6
Slide 7: Our Objectives
Our Objectives are: • Managed Growth • Improved Efficiency & Productivity • Above Peer Returns & • Preservation of our “Community Bank Approach” to Business 7
Slide 8: 2021 Major Achievements
2021 MAJOR Achievements 2021 Major Achievements
Slide 9: 2021 Major Achievements
2021 Major Achievements: • Net Income Improvement of 43% • Surpassed $1 Billion in Total Assets • Completed Full Integration of Virginia Bank into First National Bank • Opened New Graves Mill Road Branch • Prepared to Convert Charlottesville LPO to a Branch 9
Slide 10: Map of our Franchise Footprint
Map of our Franchise Footprint • We are fully integrated with 18 Branches stretching from Danville to Charlottesville • I will admit that the merger process and integration were challenging at times • However, we have come a long ways over the past 18 months & • Are now experiencing positi
Slide 11: Graves Mill Road Branch opened March 18, 2021
Graves Mill Road Branch opened March 18, 2021 11
Slide 12: Graves Mill Road Team
Graves Mill Road Team **Dominic’s Picture** From Left: Tara Morgan, Branch Manager; Dominic Pennix, Retail Business Development Specialist; Jessica Mays, Head Teller; Amy Jenkins, Teller 12
Slide 13: Charlottesville Branch Opened January 18, 2022
Charlottesville Branch Opened January 18, 2022 From Left: Darryl Gibson, Branch Manager; Jessica Campbell, Retail Business Development Specialist/Head Teller; Michael Lyster, Prior Charlottesville Market Leader and new Chief Credit Officer 13
Slide 14: 2021 Financial Performance
2021 Financial Performance 14
Slide 15: 2021 Net Income
•From an Income Statement perspective, 2021: • Generated Net Income of $4,375,000 • Increase of $1.3mm or 43% compared 2020 • ROA = 0.47% (Challenged by Merger Expenses & significant Asset Growth) 15
Slide 16: Net Income Trend for last 5 years
$5,000 $4,500 $4,396 $4,375 $4,160 $4,000 $3,500 $3,027 $3,062 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2017 2018 2019 2020 2021 Chart – Net Income Trend for last 5 years. 2017 - $3,027m 2018 - $4,160m 2019 - $4,396m 2020 - $3,062m 2021 - $4,375m • 2021 just under 2019’s Performance. Net Interest
Slide 17: Drivers of our 2021 Performance
▪ ▪ ▪ Drivers of our 2021 Performance: Higher Net Interest Income as a result of: • Increased Earning Assets & Customer Base due to the merger • Interest earned on Paycheck Protection Program loan balances & deferred fees Which Offset • Higher Non-Interest Expense • Mainly associated with the Me
Slide 18: Net Interest Income
Net Interest Income 18
Slide 19: 2021 Net Interest Income
2021 Net Interest Income • $25.1mm • $6.8mm or 37% increase • Increased Earning Assets due to Virginia Bank Partnership • PPP loans generated $1.4mm in Interest Income (Balance of $1.5mm at Year-End) 19
Slide 20: Net Interest Income
$26,000 $25,090 $25,000 $24,000 $23,000 $22,000 $21,000 $20,000 $19,000 $18,269 $18,000 $17,676 $17,000 $16,382 $16,000 $14,850 $15,000 $14,000 $13,000 $12,000 2017 2018 2019 2020 2021 Net Interest Income • Chart of our Net Interest Income from 2017 to 2021 indicating steady improvement over time •
Slide 21: Cost of Funds Improvement
0.70% 0.60% 0.58% 0.50% 0.44% 0.46% 0.40% 0.40% 0.30% 0.20% 0.20% 0.10% 0.00% 2017 2018 2019 2020 2021 Cost of Funds Improvement • Our Net Interest Income has benefited from our ability to maintain a low Cost of Funds • In 2021, our Cost of Funds decreased (26 bps) to .20% due to low interest rates
Slide 22: Earning Assets' Yield
4.58% 4.60% 4.40% 4.27% 4.20% 4.03% 4.00% 3.80% 3.80% 3.60% 3.40% 3.20% 3.06% 3.00% 2.80% 2.60% 2017 2018 2019 2020 2021 Earning Assets’ Yield • Down (74) basis points to 3.06% in 2021 due to: ▪ Volume of Cash & Cash Equivalents on the Balance Sheet (Fed Funds Sold) ▪ Loan yields increased only 1 ba
Slide 23: Net Interest Margin
4.00% 3.95% 3.83% 3.80% 3.63% 3.65% 3.50% 3.34% 3.35% 3.20% 3.05% 2.90% 2.86% 2.75% 2017 2018 2019 2020 2021 Net Interest Margin • Interest Income less Interest Expense / Average Earning Assets • Down (48) basis points to 2.86% in 2021 • Down (114) basis points since 2019 • Net Interest Margin has b
Slide 24: Provision for Loan Losses / Asset Quality
Provision for Loan Losses / Asset Quality 24
Slide 25: 2021 Provision for Loan Losses
2021 Provision for Loan Losses • $233m • Decrease of ($19m) or (7%) • Due to decreased Loan Portfolio & • Strong Asset Quality maintained, despite the pandemic 25
Slide 26: Provision for Loan Losses, Asset Quality & Allowance
$607 $600 $500 $400 $300 $260 $252 $233 $200 $163 $100 $0 2017 2018 2019 2020 2021 Provision for Loan Losses, Asset Quality & our Allowance for Loan Losses • Chart of our Provision for Loan Losses from 2017 to 2021 26
Slide 27: Net Charge-Offs
$500 $400 $300 $237 $190 $200 $172 $140 $100 $24 $0 2017 2018 2019 2020 2021 Net Charge-Offs • Net Charge-Offs decreased ($213m) or 90% in 2021 to $24m as compared to 2020 • Net Charge-Offs to Average Loans = Less than .01% 27
Slide 28: Non-Performing Loans to Total Loans
2.00% 1.50% 1.00% 0.50% 0.20% 0.24% 0.29% 0.26% 0.17% 0.00% 2017 2018 2019 2020 2021 Chart of Non-Performing Loans to Total Loans Ratio over the past 5 Years • Non-Performing Loans are Loans placed in Non-Accrual or greater than 90 Days Past Due • Have been very low since 2017 and compare favorably
Slide 29: Allowance for Loan Losses
1.50% 1.00% 0.90% 0.88% 0.83% 0.62% 0.66% 0.50% 0.00% 2017 2018 2019 2020 2021 Allowance for Loan Losses • Allowance for Loan Losses rose to 0.66% in 2021 from 0.62% in 2020 • Decline from 2019 to 2020 due to acquired loans from Virginia Bank & PPP • Slight increase in 2021 due to Loan Portfolio Dec
Slide 30: Allowance for Loan Losses
1.50% 1.14% 0.99% 1.00% 0.90% 0.88% 0.83% 0.50% 0.00% 2017 2018 2019 2020 2021 Allowance for Loan Losses • Allowance + Credit Mark on Acquired Loans decreased to 0.99% in 2021 from 1.14% in 2020 • Decrease due to Strong Asset Quality 30
Slide 31: Allowance Coverage of Non-Performing Loans
450.00% 409.90% 400.00% 366.87% 366.66% 350.00% 306.03% 300.00% 255.41% 250.00% 200.00% 150.00% 100.00% 50.00% 0.00% 2017 2018 2019 2020 2021 Allowance Coverage of Non-Performing Loans • Our Allowance balance was $3,663m as of 12-31-2021 • Providing over 2.5 to 1 coverage of Non-Performing Loans, •
Slide 32: Non-Interest Income
Non-Interest Income 32
Slide 33: 2021 Non-Interest Income
2021 Non-Interest Income • $7.2mm • ($1.5mm) or (17%) decrease • Decrease due to $2.7mm bargain purchase gain recorded during 4th quarter of 2020 • Excluding this gain, non-interest income increased $1.2mm year-over-year • The Company continues to benefit from strong and diversified Non-Inte
Slide 34: Non-Interest Income
$9,000 $8,672 $8,000 $7,187 $7,000 $6,000 $5,000 $4,623 $4,202 $4,000 $3,855 $3,000 2017 2018 2019 2020 2021 Non-Interest Income • Chart of Non-Interest Income from 2017 to 2021 • 2020 - $6mm without gain 34
Slide 35: Non-Interest Income Composition
Interchange Fees $1,961,000 Mortgage Loan Fees $1,266,000 Loan Service Charges & Late Fees $877,000 NSF & Overdraft Fees $763,000 Investments & Insurance $582,000 Merchant Card Fees $294,000 BOLI $237,000 PPP Loan Fee Income $109,000 Non-Interest Income Composition • What made up the $7.2mm in 2021?
Slide 36: Non-Interest Income / Average Assets – 5 Year Trend
1.50% 1.48% 1.40% 1.30% 1.20% 1.10% 1.00% 0.96% 0.91% 0.90% 0.87% 0.80% 0.78% 0.70% 2017 2018 2019 2020 2021 Non-Interest Income / Average Assets – 5 Year Trend • Our Target is > 1% 36
Slide 37: Non-Interest Expense
Non-Interest Expense 37
Slide 38: 2021 Non-Interest Expense
▪ ▪ ▪ 2021 Non-Interest Expense • $26.8mm • $4.3mm or 19% increase • Increase due to: • Growth of Company and increased Employee Compensation & Benefits due to our expanded branch network and staff • Severance payments due to prior Virginia Bank employees who chose not to stay with First Natio
Slide 39: Non-Interest Expense – 5 Year Trend
$26,826 $26,500 $23,000 $22,513 $19,500 $16,772 $16,000 $14,929 $14,128 $12,500 2017 2018 2019 2020 2021 Non-Interest Expense – 5 Year Trend • Non-Interest Expense has increased $12.7mm since 2017 or approximately 90% • Since 2019, the size of the Company has doubled 39
Slide 40: Non-Interest Expense / Average Assets – 5 yr Trend
3.90% 3.84% 3.70% 3.50% 3.50% 3.30% 3.19% 3.15% 3.10% 2.90% 2.90% 2.70% 2.50% 2017 2018 2019 2020 2021 Non-Interest Expense / Average Assets – 5 yr Trend • Down to 2.90% in 2021 • Target is< 3% • Merger related expenses were $445m in 2021 compared to $2.9mm in 2020 • No merger expenses anticipated i
Slide 41: Efficiency Ratio Trend
90% 85% 83.52% 83.14% 80% 75.22% 75% 72.75% 72.56% 70% 2017 2018 2019 2020 2021 Efficiency Ratio Trend Efficiency ratio up due to growth and merger 2017 – 72.75% 2018 – 72.56% 2019 – 75.22% 2020 – 83.52% 2021 – 83.14% 41
Slide 42: Assets per Full Time Equivalent Trend
$5,750 $5,637 $5,250 $4,750 $4,601 $4,250 $4,139 $4,149 $4,094 $3,750 2017 2018 2019 2020 2021 Assets per Full Time Equivalent Trend Assets per FTE also increased due to growth and merger 2017 - $4,139 2018 - $4,149 2019 - $4,094 2020 - $4,601 2021 - $5,637 42
Slide 43: Balance Sheet Highlights
% of Category 12/31/2021 12/31/2020 Change Cash & Cash $298,595 $210,814 41.64% Equivalents Total $120,709 $46,741 158.25% Investments Total Loans $552,236 $564,316 (2.14%) Total Assets $1,015,863 $860,514 18.05% Total Deposits $938,079 $781,336 20.06% Total Liabilities $953,496 $802,184 18.86% Stoc
Slide 44: Cash & Cash Equivalents
$298,595 $260,000 $210,814 $210,000 $160,000 $110,000 $60,000 $32,903 $12,575 $15,717 $10,000 2017 2018 2019 2020 2021 Cash & Cash Equivalents •Cash & Cash Equivalents have grown $286mm since 2017 to $299mm 44
Slide 45: Investments Portfolio Growth
$120,709 $120,000 $100,000 $80,000 $60,000 $49,826 $46,741 $44,217 $44,959 $40,000 2017 2018 2019 2020 2021 Investments Portfolio Growth •Investments Portfolio has grown $76mm since 2017 to $121mm 45
Slide 46: Loan Growth
$564,316 $565,000 $552,236 $490,000 $415,000 $393,321 $376,066 $358,000 $340,000 $265,000 2017 2018 2019 2020 2021 Loan Growth •Loan balances have grown $194mm since 2017 to $552mm 46
Slide 47: Total Deposits
$950,000 $938,079 $850,000 $781,336 $750,000 $650,000 $550,000 $450,283 $450,000 $425,278 $401,685 $350,000 2017 2018 2019 2020 2021 Total Deposits •Total Deposits have grown $536mm since 2017 to $938mm 47
Slide 48: 2021 Capital and Credit Quality Results
For 2021, we are pleased to report that: • Total Risk-Based Capital – increased from 12.48% to 13.20%, Target > 12% • Watch List Loans Ratio decreased from 16.79% to 13.78%, Target Less than 15% (Watch List & OREO / Tier 1 Cap & ALLL) • Non-Performing Loans to Total Loans – 0.26%, Well bel
Slide 49: Shareholder Returns Update
Shareholder Returns Update 49
Slide 50: Return on Investment
Return on Investment • Stock Price increased $1.70 or 7.4% to $24.70 as of year-end 2021 (Prior Yr-End = $23.00); • Annual Cash Dividends remained at $0.56 – Maintained $0.14 per share quarterly rate • Total Return – 11.05% / Peers – 36.05% • Price to Tangible Book = 89% ($24.70/$27.84) 50
Slide 51: Dividends Payout Ratio
31.26% 30.00% 27.74% 22.25% 20.00% 19.22% 16.44% 10.00% 0.00% 2017 2018 2019 2020 2021 Dividends • Chart of Cash Dividends Paid Out Annually as a percentage of Net Income for the past 5 Years • We are targeting an approximate 25% payout in an effort to balance this type of Return and Retained Earnin
Slide 52: Annual Cash Dividends Paid
$1,300,000 $1,214,000 $1,200,000 $1,100,000 $1,000,000 $957,000 $900,000 $845,000 $800,000 $684,000 $700,000 $612,000 $600,000 $500,000 $400,000 2017 2018 2019 2020 2021 Annual Cash Dividends Paid • Annual Cash Dividends Paid have increased steadily over the past 5 years and …... • Increased $257,00
Slide 53: Tangible Book Value of Stock
$30.00 $28.95 $28.00 $27.84 $26.99 $26.05 $26.00 $25.02 $24.00 $22.00 $20.00 2017 2018 2019 2020 2021 Chart of Tangible Book Value of Stock at Year-End for the past 5 Years • Steady growth from 2017 to 2019 due to improved Profitability and our Dividend Strategy • 2020 decrease due to merger conside
Slide 54: Total Risk-Based Capital Ratio Trend
15.00% 13.20% 12.06% 12.36% 12.48% 12.50% 11.69% 10.00% 7.50% 5.00% 2017 2018 2019 2020 2021 Here you see our Total Risk-Based Capital (Bank Level) Ratio Trend over the same time period. 54
Slide 55: Tier 1 Leverage Ratio Trend
9.67% 9.50% 9.06% 9.15% 8.92% 8.00% 7.37% 6.50% 5.00% 2017 2018 2019 2020 2021 This Chart shows our Tier 1 Leverage Ratio (Bank Level) Ratio Trend over the same time period. • Asset Growth has driven Tier 1 Leverage Ratio down from almost 9% to 7.37% as of year-end 2021 • The decline is mitigated by
Slide 56: YTD performance through March 31, 2022
YTD performance through March 31, 2022. 56
Slide 57: YTD through March 2022
YTD through March of 2022 • Net Income of almost $1.4mm • $292,000 higher than Net Income through March of 2021 • Increase of 27% 57
Slide 58: First 3 months Net Income Trend
$1,600 $1,391 $1,400 $1,301 $1,200 $1,072 $1,099 $1,000 $800 $600 $448 $400 $200 $0 2018 2019 2020 2021 2022 Chart – First 3 months Net Income Trend for last 5 years. 2022 is the highest. 2018 - $1,072m 2019 - $1,301m 2020 - $448m 2021 - $1,099m 2022 - $1,391m 58
Slide 59: Key drivers of Net Income
Key drivers of Net Income compared to the same time period of the prior year: • Higher Net Interest Income • Higher Non-Interest Income • Lower Non-Interest Expense • ROA = 0.55% 59
Slide 60: Higher Net Interest Income
▪ ▪ Key drivers of Net Income compared to the same time period of the prior year: Higher Net Interest Income: • Up $137m or 2% to $6.1mm • Driven by lower Cost of Deposits • With Cost to Fund Earning Assets being .12% 60
Slide 61: Higher Non-Interest Income
▪ ▪ ▪ Key drivers of Net Income compared to the same time period of the prior year: Higher Non-Interest Income: • Increased $55m or 3% to $1.99mm • Increase due to higher Interchange Fees associated with Card Transactions • Partially offset by decreased Mortgage Loan Fees and Loan Fees 61
Slide 62: Lower Non-Interest Expense
▪ ▪ Key drivers of Net Income compared to the same time period of the prior year: Lower Non-Interest Expense • Decreased ($195m) or 3% to $6.3mm • Decrease driven primarily by ($294m) decrease in merger-related expenses 62
Slide 63: Balance Sheet (In Thousands)
Category 3/31/2022 12/31/2021 % of Change Cash & Cash Equivalents $189,629 $298,595 (36.49%) Total Investments $209,541 $120,709 73.59% Total Loans $570,321 $552,236 3.27% Total Assets $1,015,124 $1,015,863 (0.07%) Total Deposits $941,316 $938,079 0.34% Total Liabilities $957,618 $953,496 0.43% Stoc
Slide 64: PPBN's Stock Performance
PPBN’s Stock Performance 64
Slide 65: PPBN's Stock Price
PPBN’S STOCK - $24.70 PPBN’S STOCK - $22.86 Returns: • Current stock price $22.86, down ($1.84) or (7%) compared to Year-End price of $24.70. • Recently declared 38th consecutive Quarterly Dividend at $0.14 per share • Currently Trading at approximately 89% of Tangible Book (TBV = $25.60) 65
Slide 66: Stock Performance 5 Years
STOCK PERFORMANCE: 3-31-2017 TO 3-31-2022 PPBN: (16.49%) S&P: 30.36% Price as of 3/31/22 Source: S&P Global Stock Performance •PPBN down (16.49%) since 3/31/17 (5 Yrs) •PPBN stock as of 3/31/17 was $28.50, as of 3/31/22 was $23.80 •S&P US Bank Index up 30.36% during same time period •Merger & Earnin
Slide 67: Stock Performance 10 Years
STOCK PERFORMANCE: 3-31-2012 TO 3-31-2022 PPBN: 151.05% S&P: 140.93% Price as of 3/31/22 Source: S&P Global Stock Performance •PPBN up 151.05% since 3/31/12 (10 Yrs) •PPBN stock as of 3/31/12 was $9.48, as of 3/31/22 was $23.80 •S&P US Bank Index up 140.93% during same time period •Our stock price h
Slide 68: Stock Price as Multiple of Earnings
STOCK PRICE AS MULTIPLE OF EARNINGS: 3-31-2017 TO 3-31-2022 30 26 25 19.7 20 19 17.8 17.3 16.8 16 16.1 14.5 14.9 14.5 15 13.9 13 11.7 11.8 12.2 10.7 11.1 10.9 11 9.9 10 8.9 8.2 8.1 5 0 3/31/2017 3/31/2018 3/31/2019 3/31/2020 3/31/2021 3/31/2022 PPBN Custom Peer Group S&P Southeast Banks S&P Mid-Atla
Slide 69: Total Return 5 Years
TOTAL RETURN: 3-31-2017 TO 3-31-2022 SNL: 48.75% PPBN: (8.08%) Statistics as of 3/31/22 Source: S&P Global Total Return •PPBN down (8.08%) since 3/30/17 (5 Yrs) •S&P US Bank Index up 48.75% during same time period 69
Slide 70: Total Return 10 Years
TOTAL RETURN: 3-31-2012 TO 3-31-2022 PPBN: 200.34% S&P: 206.93% Statistics as of 3/31/22 Source: S&P Global Total Return •PPBN up 200.34% since 3/31/11 (10 Yrs) •S&P US Bank Index up 206.93% during same time period 70
Slide 71: Let's review FNB Peer Information
Let’s review FNB Peer Information 71
Slide 72: FDIC Deposit Market Share Report | Lynchburg-Danville-Pittsylvania
FDIC DEPOSIT MARKET SHARE REPORT Lynchburg-Danville-Pittsylvania Market Area Statistics as of 6/30/21 Source: FDIC.gov FDIC Deposit Market Share Report | Lynchburg-Danville-Pittsylvania Market Area •First National Bank is #4 in the area with 10.59% of the Deposit Market Share 72
Slide 73: FDIC Deposit Market Share Report | Lynchburg MSA
FDIC DEPOSIT MARKET SHARE REPORT Lynchburg MSA Statistics as of 6/30/21 Source: FDIC.gov FDIC Deposit Market Share Report | Lynchburg MSA •First National Bank is #4 in the area with 10.07% of the Deposit Market Share 73
Slide 74: FDIC Deposit Market Share Report | Danville-Pittsylvania
FDIC DEPOSIT MARKET SHARE REPORT Danville-Pittsylvania Market Area Statistics as of 6/30/21 Source: FDIC.gov FDIC Deposit Market Share Report | Danville-Pittsylvania Market Area First National Bank is #4 in the area with 10.50% of the Deposit Market Share 74
Slide 75: Overall Asset Ranking
Rank Bank Total Deposits Assets Deposits Assets Total Deposits ($000) / ($000) / ($000) / ($000) / Assets ($000) Office Office Employee Employee ($000) 12 American National Bank & Trust Co. 2,896,863 96,562 110,910 8,372 9,616 3,327,290 14 First Bank and Trust Company 2,484,625 99,385 113,788 5,888
Slide 76: Overall Ranking as of March 31, 2022
Rank Bank Net Non- Total Asset ROAE Overall Rank Interest Interest Overhead Quality Rank Margin Income Rank Rank Rank Rank 1 First Bank and Trust Company 9 20 15 17 3 12.8 American National Bank & Trust 2 46 32 6 9 5 19.6 Co. 7 Benchmark Community Bank 20 17 36 20 14 21.4 23 Bank of the James 38 10
Slide 77: Our People / Leadership
oO UR PEOPLE / Leadership Our People / Leadership 77
Slide 78: Our Board of Directors
Our Board of Directors Front Row: Donald W. Merricks; James E. Burton, IV; Connie C. Burnette; A. Patricia Merryman; Aubrey H. Hall, III; Michael E. Watson Back Row: Robert L. Johnson, II; James O. Watts, IV; Carroll E. Shelton; C. Bryan Stott; L. Frank King, Jr.; Robert L. Finch, Jr.; Albert L. Pay
Slide 79: Our Senior Management Members
Our Senior Management Members **Note: Pictures Will Be In Full Color** Todd Hall, Chief Executive Officer Bryan Lemley, Chief Financial Officer Tim Burnett, Chief Lending Officer Judi Clements, Chief Human Resources Officer Vivian Brown, Chief Retail Officer Krystal Harris, Director of Human Resourc
Slide 80: Our Senior Vice Presidents
Our Senior Vice Presidents Tracie Gallahan, Mortgage Division Manager Jim Minear, Commercial Loan Officer Shawn Stone, Commercial Loan Officer Pam Adams, Loan Operations Manager RJ Weaver, Danville Market Leader 80
Slide 81: Director Retirements
Director Retirements 81
Slide 82: George W. Davis, III | Retired November 5, 2021
George W. Davis, III | Retired November 5, 2021 • We would like to thank Mr. Davis for his service to the Boards of PPBN and FNB • Mr. Davis resigned from our Boards on November 5, 2021 to focus on his business and family • He previously served as a Director of VABB and VBT for 4 years and was instr
Slide 83: Senior Management Retirements
Senior Management Retirements 83
Slide 84: Senior Management Retirements
Jerry K. Oakes | Retiring May 31, 2022 | 4 Years of Service Judith A. Clements | Retiring July 15, 2022 | 21 Years of Service Thomas R. Burnett, Jr. | Retiring August 1, 2022 | 20 Years of Service Each has made significant contributions toward the success of our Company and our current position. 84
Slide 85: Management Succession
Management Succession Krystal D. Harris | SVP, Chief Human Resources Officer | Hired: October 2021, 6 Months of Service Shawn D. Stone | SVP, Southern Market Chief Lending Officer | Hired: November 1995, 26 Years of Service James M. Minear | SVP, Northern Market Chief Lending Officer | Hired: August
Slide 86: As we move forward...
MOVING Fowand, As we move forward... 86
Slide 87: Concerns & Challenges
Concerns & Challenges • Leverage Ratio • Impact of Inflation on Economy • Global Impact of Russia’s Invasion of Ukraine • Potential Economic Downturn • Loss of PPP Income • Mortgage Volume 87
Slide 88: Positives
Positives • Higher Interest Rates • Increased Loan Demand • Expanded Securities Portfolio • Diversified Non-Interest Revenue Streams • Strong Credit Quality • And… 88
Slide 89: Our Great Employees
Positives • Our Great Employees and Most Valuable Asset! • These have been challenging, yet exciting times • We appreciate the hard work and dedication of all of our Employees, and commend their tremendous efforts through the pandemic and integration of Virginia Bank and First National. • They have
Slide 90: In Closing
In Closing: • Pinnacle & First National continue to move forward and I believe we are in a great position for the future. • We remain committed to taking care of our clients, communities, employees & shareholders • There is a lot of opportunity before us • As we aim to be the Premier Community Bank