Pinnacle Bancshares, Inc.OTC: PCLB

Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2025

Jul 24, 2025 at 12:00 PM UTC · Issued by Pinnacle Bancshares, Inc. via Business Wire

Watch Pinnacle Bancshares explain itPinnacle Bancshares Inc (PCLB) Q2 2026 Earnings Call · Replay · Jul 23

Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2025 Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2025

JASPER, Ala.--(BUSINESS WIRE)-- Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced the Company’s second quarter results of operations.

For the three months ended June 30, 2025, Pinnacle’s basic/diluted earnings per share was $1.10 as compared to $1.11 per share for the three months ended June 30, 2024. Net income for the three months ended June 30, 2025 was $984,000 as compared to $1,007,000 for the three months ended June 30, 2024.
For the six months ended June 30, 2025, Pinnacle’s basic/diluted earnings per share was $2.22 as compared to $2.17 per share for the six months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $2,002,000 as compared to $1,970,000 for the six months ended June 30, 2024.
For the three and six months ended June 30, 2025, return on average assets was 1.11%, and 1.13%, respectively, compared to 1.18% and 1.15%, respectively, in the comparable 2024 period.

The Company’s net interest margin was 3.13% and 3.16% for the three and six months ended June 30, 2025, respectively, as compared to 3.22% and 3.15% for the three and six months ended June 30, 2024.

At June 30, 2025, the Company’s allowance for loan losses as a percent of total loans was 1.77%, compared to 1.78% at December 31, 2024. There were no nonperforming assets as of June 30, 2025 as well as December 31, 2024.

Pinnacle Bank was classified as “well capitalized” at June 30, 2025. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of June 30, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 19.97%. As of June 30, 2025, its total capital ratio was 21.03%, and its Tier 1 leverage ratio was 11.13%.

Dividends of $.27 and $.54 per share were paid to shareholders during the three and six months ended for both June 30, 2025 and 2024.

Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at June 30, 2025, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 98.76% 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 at June 30, 2025 increased approximately $9.9 million, or 3%, as compared to December 31, 2024.

Effects of Inflation

Inflation caused a substantial rise in interest rates during 2023 and 2022 which had a negative effect in the securities market. As a result of rising interest rates, the Company recorded an accumulated other comprehensive loss on securities available for sale of approximately $26.6 million as of June 30, 2025 as compared to $28.7 million as of December 31, 2024. Although these unrealized losses recorded as of June 30, 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. These losses do not impact the Bank’s 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. Pinnacle undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Pinnacle’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. Unaudited Financial Highlights (In Thousands, except share and per share data)

	Three Months Ended June 30,
		2025			2024
Net income	$	984,000		$	1,007,000
Basic and diluted earnings per share	$	1.10		$	1.11

Performance ratios (annualized):
Return on average assets		1.11	%		1.18	%
Return on average equity (excluding OCI)		9.11	%		9.96	%
Interest rate spread		2.56	%		2.69	%
Net interest margin		3.13	%		3.22	%
Operating cost to assets		2.37	%		2.42	%

Weighted average basic and diluted shares outstanding		898,512			909,347
Dividends per share	$	0.27		$	0.27
Provision for loan losses	$	-		$	-

	Six Months Ended June 30,
		2025			2024
Net income	$	2,002,000		$	1,970,000
Basic and diluted earnings per share	$	2.22		$	2.17

Performance ratios (annualized):
Return on average assets		1.13	%		1.15	%
Return on average equity (excluding OCI)		9.33	%		9.84	%
Interest rate spread		2.61	%		2.62	%
Net interest margin		3.16	%		3.15	%
Operating cost to assets		2.32	%		2.38	%

Weighted average basic and diluted shares outstanding		900,452			909,441
Dividends per share	$	0.54		$	0.54
Provision for loan losses	$	-		$	-

				(Audited)
	June 30, 2025			December 31, 2024
Total assets	$	354,101,000		$	346,514,000
Loans receivable, net	$	126,154,000		$	129,437,000
Deposits	$	328,055,000		$	318,169,000
Brokered CD’s included in deposits	$	14,959,000		$	14,917,000
Total stockholders’ equity	$	17,050,000		$	13,861,000
Book value per share	$	18.98		$	15.30
Book value per share (excluding OCI)	$	48.30		$	46.48
Total average stockholders’ equity to assets ratio (excluding OCI)		12.07	%		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		1.77	%		1.78	%

FINANCIAL INFORMATION PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	(Unaudited)			(Audited)
	June 30,			December 31,
		2025			2024

Assets
Cash and cash equivalents	$	3,095,144			2,406,608
Interest bearing deposits in banks		22,764,592			17,830,073
Securities available for sale		169,525,566			163,442,222
Restricted equity securities		957,000			954,300

Loans		128,423,547			131,789,490
Less Allowance for loan losses		2,269,516			2,352,415
Loans, net		126,154,031			129,437,075

Premises and equipment, net		8,005,365			8,198,615
Right-of-use lease assets – operating		239,047			260,248
Goodwill		306,488			306,488
Bank owned life insurance		11,257,214			11,024,493
Accrued interest receivable		2,033,480			2,107,432
Deferred tax assets, net		9,060,048			9,608,246
Other assets		703,336			938,828
Total assets	$	354,101,311		$	346,514,628

Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	92,059,679		$	90,389,786
Interest-bearing		235,994,943			227,779,259
Total deposits		328,054,622			318,169,045

Subordinated debentures		3,093,000			3,093,000
Other borrowings		4,000,000			9,000,000
Accrued interest payable		676,183			874,774
Operating lease liabilities		239,047			260,248
Other liabilities		988,920			1,256,189
Total liabilities		337,051,772			332,653,256

Stockholders’ equity
Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 898,336 and 905,786 shares outstanding, respectively.		18,723			18,723
Additional paid‑in capital		8,923,223			8,923,223
Treasury stock (973,977 and 966,527 shares, respectively)		(15,929,095	)		(15,698,015	)
Retained earnings		50,373,757			48,857,057
Accumulated other comprehensive loss, net of tax		(26,337,069	)		(28,239,616	)

Total stockholders’ equity		17,049,539			13,861,372

Total liabilities and stockholders’ equity	$	354,101,311		$	346,514,628

PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Interest income
Loans, including fees	$	2,206,111	$	2,136,245	$	4,496,357	$	4,162,616
Securities available for sale		1,428,563		1,326,707		2,798,043		2,662,995
Other interest		257,989		340,093		492,729		648,917
Total interest income		3,892,663		3,803,045		7,787,129		7,474,528

Interest expense
Deposits		982,155		757,324		1,905,824		1,518,271
Borrowings and repurchase agreements		49,769		190,262		112,114		369,065
Subordinated debentures		37,400		39,050		76,450		78,100
Total interest expense		1,069,324		986,636		2,094,388		1,965,436

Net interest income		2,823,339		2,816,409		5,692,741		5,509,092
Provision for loan losses		-		-		-		-
Net interest income after provision for loan losses		2,823,339		2,816,409		5,692,741		5,509,092

Other income
Fees and service charges on deposit accounts		403,046		423,780		791,689		848,623
Service fee income, net		-		-		-		743
Bank owned life insurance		115,500		106,500		232,721		210,172
Mortgage fee income		5,330		2,522		5,330		4,653
Total other income		523,876		532,802		1,029,740		1,064,191

Other expense:
Salaries and employee benefits		1,200,564		1,158,295		2,409,512		2,295,710
Occupancy expense		306,971		320,432		621,063		633,103
Marketing and professional expense		68,345		72,425		123,843		147,288
Other operating expenses		525,652		519,858		1,030,584		999,681
Total other expenses		2,101,532		2,071,010		4,185,002		4,075,782

Income before income taxes		1,245,683		1,278,201		2,537,479		2,497,501

Income tax expense		261,329		271,395		535,138		527,125

Net income	$	984,354	$	1,006,806	$	2,002,341	$	1,970,376

Cash dividend per share	$	0.27	$	0.27	$	0.54	$	0.54

Basic and diluted earnings per share	$	1.10	$	1.11	$	2.22	$	2.17

Weighted –average basic and diluted shares outstanding		898,512		909,347		900,452		909,441

PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Six Months Ended June 30, 2025 and 2024

												Accumulated
				Additional								Other			Total
	Common Stock			Paid-in		Treasury			Retained			Comprehensive			Stockholders’
	Shares	Amount		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	-		-		-		-			1,970,376			-			1,970,376
Cash dividends declared ($.54 per share)	-		-		-		-			(491,148	)		-			(491,148	)
Purchase of treasury stock							(31,000	)		-			-			(31,000	)
Other comprehensive loss	-		-		-		-			-			(161,244	)		(161,244	)
Balance June 30, 2024	1,872,313	$	18,723	$	8,923,223	$	(15,619,799	)	$	47,251,484		$	(26,500,106	)	$	14,073,525

												Accumulated
				Additional								Other			Total
	Common Stock			Paid-in		Treasury			Retained			Comprehensive			Stockholders’
	Shares	Amount		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	-		-		-		-			2,002,341			-			2,002,341
Cash dividends declared ($.54 per share)	-		-		-		-			(485,641	)		-			(485,641	)
Purchase of treasury stock	-		-		-		(231,080	)		-			-			(231,080	)
Other comprehensive income	-		-		-		-			-			1,902,547			1,902,547
Balance June 30, 2025	1,872,313	$	18,723	$	8,923,223	$	(15,929,095	)	$	50,373,757		$	(26,337,069	)	$	17,049,539

PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Six Months Ended
	June 30,
		2025			2024
OPERATING ACTIVITIES:
Net income	$	2,002,341		$	1,970,376
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		242,651			261,892
Net investment amortization expense		77,948			101,905
Bank owned life insurance		(232,721	)		(210,172	)
Decrease in accrued interest receivable		73,952			81,052
Decrease in accrued interest payable		(198,591	)		(528,390	)
Net other operating activities		(270,406	)		58,211
Net cash provided by operating activities		1,695,174			1,734,874

INVESTING ACTIVITIES:
Net decrease in loans		3,283,044			260,825
Net increase in interest-bearing deposits in other banks		(4,934,519	)		(7,391,029	)
Purchase of securities available for sale		(8,074,614	)		-
Proceeds from maturing, sale and payments received on securities available for sale		4,602,696			2,971,115
Net purchase of restricted equity securities		(2,700	)		(118,100	)
Purchase of premises and equipment		(49,401	)		(291,866	)
Net cash used in investing activities		(5,175,494	)		(4,569,055	)

FINANCING ACTIVITIES:
Net increase (decrease) in deposits		9,885,577			(1,029,910	)
Proceeds from other borrowings		-			16,500,000
Repayments of other borrowings		(5,000,000	)		(12,500,000	)
Purchase of treasury stock		(231,080	)		(31,000	)
Payments of cash dividends		(485,641	)		(491,148	)
Net cash provided by financing activities		4,168,856			2,477,942

Net increase (decrease) in cash and cash equivalents		685,536			(386,239	)

Cash and cash equivalents at beginning of period		2,406,608			2,190,793

Cash and cash equivalents at end of period	$	3,095,144		$	1,804,554

SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
Interest	$	2,292,979		$	2,493,826
Taxes	$	537,759		$	387,747

OTHER NONCASH TRANSACTIONS
Real estate acquired through foreclosure	$	-		$	-
Internally financed sales of other real estate owned	$	-		$	-

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Joe B. Adams, III
Chief Financial Officer
(205) 221-8866

Source: Pinnacle Bancshares, Inc.

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