Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2026

About this update from Pinnacle Bancshares, Inc.

Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2026 Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2026 JASPER, Ala.--(BUSINESS WIRE)-- Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCID: PCLB), today announced the Company’s results of operations for the first quarter ended March 31, 2026: For the three months ended March 31, 2026, Pinnacle’s basic/diluted earnings per share was $1.20 as compared to $1.13 per share for the three months ended March 31, 2025. Net income for the three months ended March 31, 2026 was $1,080,000 as compared to $1,018,000 for the three months ended March 31, 2025. For the three months ended March 31, 2026, return on average assets was 1.17%, compared to 1.16% for the three months ended March 31, 2025. The Company’s net interest margin was 3.26% for the three months March 31, 2026, compared to 3.33% for the three months ended March 31, 2025. At March 31, 2026, the Company’s allowance for loan losses as a percent of total loans was 1.46%, compared to 1.52% at December 31, 2025. There were $59,000 and $22,000 nonperforming assets at March 31, 2026 and December 31, 2025, respectively. Pinnacle Bank was classified as “well capitalized” at March 31, 2026. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of March 31, 2026, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 19.46% and its total capital ratio and Tier 1 leverage was 20.32% and 11.37%, respectively. Dividends of $.27 per share were paid to shareholders during the first quarter of 2026 as well as the first quarter 2025. Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at March 31, 2026, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 99.40% 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, 2026 increased $22.6 million (6.83%) as compared to December 31, 2025. Excluding the growth in brokered deposits, the deposits grew $9 million (4.12%) during the first quarter of 2026. 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 the increase in interest rates, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $23.9 million as of March 31, 2026 as compared to $22.7 million as of December 31, 2025. Although these unrealized losses recorded as of March 31, 2026 and December 31, 2025 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,   2026   2025 Net Income $ 1,080,000     $ 1,018,000   Weighted average basic shares outstanding   898,336       902,414   Weighted average diluted shares outstanding   898,336       902,414   Dividend per share $ .27     $ .27   Provision for loan losses $ 15,000     $ -   Basic and diluted earnings per share $ 1.20     $ 1.13   Performance Ratios: (annualized)       Return on average assets   1.17 %     1.16 % Return on average equity   9.59 %     9.70 % Interest rate spread   2.68 %     2.83 % Net interest margin   3.26 %     3.33 % Operating cost to assets   2.37 %     2.21 %               (Audited)   March 31, 2026   December 31, 2025 Total assets $ 386,958,000     $ 346,232,000   Loans receivable, net $ 133,966,000     $ 130,849,000   Deposits $ 354,137,000     $ 331,496,000   Brokered CD’s included in deposits $ 29,980,000     $ 20,983,000   Total stockholders’ equity $ 22,346,000     $ 22,646,000   Book value per share $ 24.87     $ 25.21   Book value per share (excluding OCI) $ 51.12     $ 50.19   Total average stockholders' equity to asset ratio (excluding OCI)   12.20 %     12.20 % Asset Quality Ratios:       Nonperforming loans as a percent of total loans   .04 %     .02 % Nonperforming assets as a percent of total loans   .04 %     .02 % Allowance for loan losses as a percent of total loans   1.46 %     1.52 % PINNACLE BANCSHARES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CONDITION     (Unaudited)   (Audited)   March 31,   December 31,   2026   2025 Assets       Cash and cash equivalents $ 3,191,343     $ 2,763,958   Interest bearing deposits in banks   26,814,684       21,122,646   Securities available for sale   188,000,131       176,921,364   Restricted equity securities   969,600       957,100           Loans   135,957,247       132,861,644   Less allowance for loan losses   1,991,051       2,013,072   Loans, net   133,966,166       130,848,572           Premises and equipment, net   8,022,786       7,801,667   Operating right-of-use lease assets   968,918       981,519   Goodwill   306,488       306,488   Bank owned life insurance   11,626,723       11,498,037   Accrued interest receivable   1,663,041       2,072,700   Deferred tax assets, net   8,064,797       7,548,292   Other assets   3,363,296       1,409,158   Total assets $ 386,958,003     $ 364,231,501           Liabilities and Stockholders’ Equity       Deposits:       Noninterest-bearing $ 98,756,484     $ 92,867,774   Interest-bearing   255,380,135       238,627,990   Total deposits   354,136,619       331,495,764           Subordinated debentures   3,093,000       3,093,000   Other borrowings   4,000,000       4,000,000   Accrued interest payable   788,698       781,290   Operating lease liabilities   968,918       981,519   Other liabilities   1,625,017       1,233,844   Total liabilities   364,612,252       341,585,417           Stockholders’ equity       Common stock, $.01 par value, 2,400,000 shares authorized;       1,872,313 shares issued; 898,336 shares outstanding   18,723       18,723   Additional paid-in capital   8,923,223       8,923,223   Treasury stock, at cost (973,977 shares at cost, respectively)   (15,929,095 )     (15,929,095 ) Retained earnings   52,913,196       52,075,496   Accumulated other comprehensive loss, net of tax   (23,580,296 )     (22,442,263 ) Total stockholders’ equity   22,345,751       22,646,084           Total liabilities and stockholders’ equity $ 386,958,003     $ 364,231,501   PINNACLE BANCSHARES, INC. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended March 31, 2026 and 2025         2026   2025 Interest income           Loans, including fees $ 2,312,441     $ 2,290,246   Taxable securities   1,527,018       1,334,545   Nontaxable securities   29,690       34,935   Other interest   233,735       234,740   Total interest income   4,102,884       3,894,466               Interest expense           Deposits   1,028,483       923,669   Subordinated debentures   38,000       39,050   Other borrowings   49,222       62,345   Total interest expense   1,115,705       1,025,064               Net interest income   2,987,179       2,869,402   Provision for loan losses   15,000       -   Net interest income after provision for loan losses   2,972,179       2,869,402             Other income           Fees and service charges on deposit accounts   411,024       388,643   Bank owned life insurance   128,686       117,221   Total other income   539,710       505,864               Other expenses           Salaries and employee benefits   1,301,457       1,208,948   Occupancy expenses   324,249       314,092   Marketing and professional expenses   77,525       55,498   Other operating expenses   482,791       504,932   Total other expenses   2,186,022       2,083,470               Income before income taxes   1,325,867       1,291,796               Income tax expense   245,616       273,809               Net income $ 1,080,251     $ 1,017,987               Basic and diluted earnings per share $ 1.20     $ 1.13               Cash dividends per share $ 0.27     $ 0.27   Weighted-average basic and diluted shares outstanding   898,336       902,414   PINNACLE BANCSHARES, INC. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Three Months Ended March 31, 2026 and 2025                         Accumulated               Additional           Other   Total   Common Stock   Paid-in   Treasury   Retained   Comprehensive   Stockholders’   Shares   Par Value   Capital   Stock   Earnings   Loss   Equity                             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                               Balance, December 31, 2025 1,872,313     $ 18,723     $ 8,923,223     $ (15,929,095 )   $ 52,075,496     $ (22,442,263 )   $ 22,646,084   Net income -       -       -       -       1,080,251       -       1,080,251   Cash dividends declared,                           $0.27 per share -       -       -       -       (242,551 )     -       (242,551 ) Other comprehensive loss -       -       -       -       -       (1,138,033 )     (1,138,033 ) Balance, March 31, 2026 1,872,313     $ 18,723     $ 8,923,223     $ (15,929,095 )   $ 52,913,196     $ (23,580,296 )   $ 22,345,751   PINNACLE BANCSHARES, INC. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2026 and 2025         2026   2025 OPERATING ACTIVITIES           Net income $ 1,080,251     $ 1,017,987   Adjustments to reconcile net income to net cash           provided by operating activities:           Provision for loan losses   15,000       -   Depreciation   121,799       123,701   Net amortization of securities   630       38,140   Bank owned life insurance   (128,686 )     (117,221 ) Decrease in accrued interest receivable   409,659       492,638   Increase (decrease) in accrued interest payable   7,408       (317,965 ) Net other operating activities   (1,759 )     (50,614 ) Net cash provided by operating activities   1,504,302       1,186,666   INVESTING ACTIVITIES           Net increase in loans   (3,132,624 )     (5,995,927 ) Net increase in interest-bearing deposits in banks   (5,692,038 )     (4,228,685 ) Purchase of securities available for sale   (17,132,669 )     (3,000,000 ) Proceeds from maturing or callable securities available for sale   4,512,971       1,815,315   Net purchase of restricted equity securities   (12,500 )     (2,700 ) Purchase of premises and equipment   (342,918 )     (9,183 ) Purchase of federal investment tax credit   (1,675,443 )     -   Net cash used in investing activities   (23,475,221 )     (11,421,180 )             FINANCING ACTIVITIES           Net increase in deposits   22,640,855       15,758,632   Repayment of other borrowings   -       (5,000,000) -   Purchase of treasury stock   -     - (168,454 ) Payment of cash dividends   (242,551 )     (243,090 ) Net cash provided by financing activities   22,398,304       10,347,088               Net increase in cash and cash equivalents   427,385       112,574               Cash and cash equivalents at beginning of year   2,763,958       2,406,608               Cash and cash equivalents at end of year $ 3,191,343     $ 2,519,182               SUPPLEMENTAL DISCLOSURE           Cash paid during the year for:           Interest $ 1,108,297     $ 1,343,029   Taxes $ -     $ -   OTHER NONCASH TRANSACTIONS           Real estate acquired through foreclosure $ -     $ -     https://cts.businesswire.com/ct/CT?id=bwnews&sty=20260429736309r1&sid=acqr8&distro=nx&lang=en View source version on businesswire.com: https://www.businesswire.com/news/home/20260429736309/en/ Joe B. Adams, III Chief Financial Officer (205) 221-8866 Source: Pinnacle Bancshares, Inc. © Copyright Business Wire 2026

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