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

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

$

-

$

-