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

About this update from Pinnacle Bancshares, Inc.

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 $ -     $ -     https://cts.businesswire.com/ct/CT?id=bwnews&sty=20250724170317r1&sid=acqr8&distro=nx&lang=en View source version on businesswire.com: https://www.businesswire.com/news/home/20250724170317/en/ Joe B. Adams, III Chief Financial Officer (205) 221-8866 Source: Pinnacle Bancshares, Inc. © Copyright Business Wire 2025

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