Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2026

About this update from Pinnacle Bancshares, Inc.

JASPER, Ala., July 23, 2026 --( BUSINESS WIRE )--Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCID: PCLB), today announced the Company's second quarter results of operations. The Company's net interest margin was 3.20% and 3.21% for the three and six months ended June 30, 2026, respectively, as compared to 3.13% and 3.16% for the three and six months ended June 30, 2025. At June 30, 2026, the Company's allowance for loan losses as a percent of total loans was 1.48%, compared to 1.52% at December 31, 2025. There were $21,000 and $22,000 in nonperforming assets as of June 30, 2026 and December 31, 2025, respectively. Pinnacle Bank was classified as "well capitalized" at June 30, 2026. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of June 30, 2026, the Bank's common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 20.01%. As of June 30, 2026, its total capital ratio was 20.89%, and its Tier 1 leverage ratio was 11.30%. Dividends of $.27 and $.54 per share were paid to shareholders during the three and six months ended for both June 30, 2026 and 2025. Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at June 30, 2026, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 99.69% 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, excluding brokered deposits, at June 30, 2026 increased approximately $17.1 million, or 5%, as compared to December 31, 2025. 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 $23 million as of June 30, 2026 as compared to $22.8 million as of December 31, 2025. Although these unrealized losses recorded as of June 30, 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. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723278917/en/ Contacts Joe B. Adams, III Chief Financial Officer (205) 221-8866

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