Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2025

About this update from Pinnacle Bancshares, Inc.

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced the Company’s results of operations for the first quarter ended March 31, 2025: For the three months ended March 31, 2025, Pinnacle’s basic/diluted earnings per share was $1.13 as compared to $1.06 per share for the three months ended March 31, 2024. Net income for the three months ended March 31, 2025 was $1,018,000 as compared to $964,000 for the three months ended March 31, 2024. For the three months ended March 31, 2025, return on average assets was 1.16%, compared to 1.14% for the three months ended March 31, 2024. The Company’s net interest margin was 3.33% for the three months March 31, 2025, compared to 3.11% for the three months ended March 31, 2024. At March 31, 2025, the Company’s allowance for loan losses as a percent of total loans was 1.65%, compared to 1.78% at December 31, 2024. There were no nonperforming assets at March 31, 2025 as well as at December 31, 2024. Pinnacle Bank was classified as “well capitalized” at March 31, 2025. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of March 31, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 18.86% and its total capital ratio and Tier 1 leverage was 19.89% and 10.96%, respectively. Dividends of $.27 per share were paid to shareholders during the first quarter of 2025 as well as the first quarter 2024. Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at March 31, 2025, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 98.63% as compared to our established minimal limit of 25%. In addition, the Bank provides access to additional FDIC insurance coverage for accounts that would otherwise exceed deposit insurance coverage. The Company’s total deposits as of March 31, 2025 increased $15.8 million (4.95%) as compared to December 31, 2024. Effects of Inflation Inflation caused a substantial rise in interest rates during 2023 and 2022 which has had a negative effect in the securities market. As a result of rising interest rates since 2022, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $26.1 million as of March 31, 2025 as compared to $28.7 million as of December 31, 2024. Although these unrealized losses recorded as of March 31, 2025 and December 31, 2024 were significant, management does not anticipate these losses to be other than temporary as these unrealized losses do not currently appear related to any credit deterioration within the portfolio but from higher interest rates. In addition, these losses do not impact our regulatory capital ratios. Forward-Looking Statements Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding. Pinnacle Bancshares, Inc.’s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama. PINNACLE BANCSHARES, INC. AND SUBSIDIARY   UNAUDITED FINANCIAL HIGHLIGHTS   Three Months Ended March 31,   2025 2024 Net Income $ 1,018,000   $ 964,000   Weighted average basic shares outstanding   902,414     909,534   Weighted average diluted shares outstanding   902,414     909,534   Dividend per share $ .27   $ .27   Provision for loan losses $ -   $ -   Basic and diluted earnings per share $ 1.13   $ 1.06   Performance Ratios: (annualized)         Return on average assets   1.16 %   1.14 % Return on average equity   9.70 %   9.85 % Interest rate spread   2.83 %   2.58 % Net interest margin   3.33 %   3.11 % Operating cost to assets   2.21 %   2.19 %                 (Audited)   March 31, 2025 December 31, 2024 Total assets $ 360,125,000   $ 346,514,000   Loans receivable, net $ 135,433,000   $ 129,437,000   Deposits $ 333,928,000   $ 318,169,000   Brokered CD’s included in deposits $ 14,938,000   $ 14,917,000   Total stockholders’ equity $ 17,024,000   $ 13,861,000   Book value per share $ 18.91   $ 15.30   Book value per share (excluding OCI) $ 47.43   $ 46.48   Total average stockholders' equity to asset ratio (excluding OCI)   11.98 %   11.80 % Asset Quality Ratios:         Nonperforming loans as a percent of total loans   .00 %   .00 % Nonperforming assets as a percent of total loans   .00 %   .00 % Allowance for loan losses as a percent of total loans   1.65 %   1.78 % PINNACLE BANCSHARES, INC. AND SUBSIDIARY   CONDENSED CONSOLIDATED STATEMENTS OF CONDITION     (Unaudited) (Audited)   March 31, December 31,   2025 2024 Assets         Cash and cash equivalents $ 2,519,182   $ 2,406,608   Interest bearing deposits in banks   22,058,758     17,830,073   Securities available for sale   168,119,506     163,442,222   Restricted equity securities   957,000     954,300             Loans   137,710,120     131,789,490   Less allowance for loan losses   2,277,118     2,352,415   Loans, net   135,433,002     129,437,075             Premises and equipment, net   8,084,097     8,198,615   Operating right-of-use lease assets   249,616     260,248   Goodwill   306,488     306,488   Bank owned life insurance   11,141,714     11,024,493   Accrued interest receivable   1,614,794     2,107,432   Deferred tax assets, net   8,841,293     9,608,246   Other assets   799,972     938,828             Total assets $ 360,125,422   $ 346,514,628             Liabilities and Stockholders’ Equity         Deposits:         Noninterest-bearing $ 95,433,784   $ 90,389,786   Interest-bearing   238,493,893     227,779,259   Total deposits   333,927,677     318,169,045             Subordinated debentures   3,093,000     3,093,000   Other borrowings   4,000,000     9,000,000   Accrued interest payable   556,809     874,774   Operating lease liabilities   249,616     260,248   Other liabilities   1,274,559     1,256,189   Total liabilities   343,101,661     332,653,256             Stockholders’ equity         Common stock, $.01 par value, 2,400,000 shares authorized;         1,872,313 shares issued; 900,336 and 905,786 shares outstanding, respectively   18,723     18,723   Additional paid-in capital   8,923,223     8,923,223   Treasury stock, at cost (971,977 and 966,527 shares at cost, respectively)   (15,866,469 )   (15,698,015 ) Retained earnings   49,631,954     48,857,057   Accumulated other comprehensive loss, net of tax   (25,683,670 )   (28,239,616 ) Total stockholders’ equity   17,023,761     13,861,372             Total liabilities and stockholders’ equity $ 360,125,422   $ 346,514,628   PINNACLE BANCSHARES, INC. AND SUBSIDIARY   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended March 31, 2025 and 2024   2025   2024 Interest income           Loans, including fees $ 2,290,246   $ 2,026,371 Taxable securities   1,334,545     1,296,269 Nontaxable securities   34,935     40,019 Other interest   234,740     308,824 Total interest income   3,894,466     3,671,483             Interest expense           Deposits   923,669     760,947 Subordinated debentures   39,050     39,050 Other borrowings   62,345     178,803 Total interest expense   1,025,064     978,800             Net interest income   2,869,402     2,962,683 Provision for loan losses   -     - Net interest income after provision for loan losses   2,869,402     2,962,683           Other income           Fees and service charges on deposit accounts   388,643     424,843 Servicing fee income, net   -     743 Bank owned life insurance   117,221     103,672 Mortgage fee income   -     2,131 Total other income   505,864     531,389             Other expenses           Salaries and employee benefits   1,208,948     1,137,415 Occupancy expenses   314,092     312,671 Marketing and professional expenses   55,498     74,863 Other operating expenses   504,932     479,823 Total other expenses   2,083,470     2,004,772             Income before income taxes   1,291,796     1,219,300             Income tax expense   273,809     255,730             Net income $ 1,017,987   $ 963,570             Basic and diluted earnings per share $ 1.13   $ 1.06             Cash dividends per share $ 0.27   $ 0.27 Weighted-average basic and diluted shares outstanding   902,414 909,534 PINNACLE BANCSHARES, INC. AND SUBSIDIARY   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Three Months Ended March 31, 2025 and 2024                       Accumulated               Additional           Other   Total   Common Stock   Paid-in   Treasury   Retained   Comprehensive   Stockholders’   Shares   Par Value   Capital   Stock   Earnings   Loss   Equity                                         Balance, December 31, 2023 1,872,313   $ 18,723   $ 8,923,223   $ (15,588,799 )   $ 45,772,256     $ (26,338,862 )   $ 12,786,541   Net income -     -     -     -       963,570       -       963,570   Cash dividends declared,                                       $0.27 per share -     -     -     -       (245,574 )     -       (245,574 ) Other comprehensive loss -     -     -     -       -       (1,378,571 )     (1,378,571 ) Balance, March 31, 2024 1,872,313   $ 18,723   $ 8,923,223   $ (15,588,799 )   $ 46,490,252     $ (27,717,433 )   $ 12,125,966                                           Balance, December 31, 2024 1,872,313   $ 18,723   $ 8,923,223   $ (15,698,015 )   $ 48,857,057     $ (28,239,616 )   $ 13,861,372   Net income -     -     -     -       1,017,987       -       1,017,987   Purchase of treasury stock -     -     -     (168,454 )     -       -       (168,454 ) Cash dividends declared,                                       $0.27 per share -     -     -     -       (243,090 )     -       (243,090 ) Other comprehensive income -     -     -     -       -       2,555,946       2,555,946   Balance, March 31, 2025 1,872,313   $ 18,723   $ 8,923,223   $ (15,866,469 )   $ 49,631,954     $ (25,683,670 )   $ 17,023,761   PINNACLE BANCSHARES, INC. AND SUBSIDIARY   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2025 and 2024   2025   2024 OPERATING ACTIVITIES           Net income $ 1,017,987     $ 963,570   Adjustments to reconcile net income to net cash           provided by operating activities:           Depreciation   123,701       128,826   Net amortization of securities   38,140       50,376   Bank owned life insurance   (117,221 )     (103,672 ) Decrease in accrued interest receivable   492,638       574,435   Decrease in accrued interest payable   (317,965 )     (527,736 ) Net other operating activities   (50,614 )     31,716   Net cash provided by operating activities   1,186,666       1,117,515   INVESTING ACTIVITIES           Net (increase) decrease in loans   (5,995,927 )     3,199,779   Net increase in interest-bearing deposits in banks   (4,228,685 )     (3,306,813 ) Purchase of securities available for sale   (3,000,000 )     -   Proceeds from maturing or callable securities available for sale   1,815,315       1,399,125   Net purchase of restricted equity securities   (2,700 )     (6,900 ) Purchase of premises and equipment   (9,183 )     (194,533 ) Net cash provided by (used in) investing activities   (11,421,180 )     1,090,658               FINANCING ACTIVITIES           Net increase (decrease) in deposits   15,758,632       (2,174,979 ) Repayment of other borrowings   (5,000,000 )      -   Purchase of treasury stock   (168,454 )   -   Payment of cash dividends   (243,090 )     (245,574 ) Net cash provided by (used in) financing activities   10,347,088       (2,420,553 )             Net increase (decrease) in cash and cash equivalents   112,574       (212,380 )             Cash and cash equivalents at beginning of year   2,406,608       2,190,793               Cash and cash equivalents at end of year $ 2,519,182     $ 1,978,413               SUPPLEMENTAL DISCLOSURE           Cash paid during the year for:           Interest $ 1,343,029     $ 1,506,536   Taxes $ -     $ -   OTHER NONCASH TRANSACTIONS           Real estate acquired through foreclosure $ - $ -      View source version on businesswire.com: https://www.businesswire.com/news/home/20250423677869/en/

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