Pinnacle Bancshares Announces Results for Third Quarter Ended September 30, 2025

About this update from Pinnacle Bancshares, Inc.

Pinnacle Bancshares Announces Results for Third Quarter Ended September 30, 2025 Pinnacle Bancshares Announces Results for Third Quarter Ended September 30, 2025 JASPER, Ala.--(BUSINESS WIRE)-- Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s third quarter results of operations. For the three months ended September 30, 2025, Pinnacle’s basic/diluted earnings per share was $1.19 as compared to $1.16 for the three months ended September 30, 2024. Net income for the three months ended September 30, 2025 was $1,069,000 as compared to $1,057,000 for the three months ended September 30, 2024. For the nine months ended September 30, 2025, Pinnacle’s basic/diluted earnings per share was $3.41 as compared to $3.33 for the nine months ended September 30, 2024. Net income for the nine months ended September 30, 2025 was $3,071,000 as compared to $3,027,000 for the nine months ended September 30, 2024. For the three and nine months ended September 30, 2025, return on average assets was 1.18%, and 1.15%, respectively, compared to 1.20% and 1.17%, respectively, in the comparable 2024 period. Pinnacle’s net interest margin was 3.20% and 3.17% for the three and nine months ended September 30, 2025, respectively, compared to 3.24% and 3.18% for the three and nine months ended September 30, 2024, respectively. At September 30, 2025, Pinnacle’s allowance for loan losses as a percent of total loans was 1.77%, compared to 1.78% at December 31, 2024. There were $112,000 and $0 in nonperforming assets at September 30, 2025 and December 31, 2024, respectively. Pinnacle Bank was classified as “well capitalized” at September 30, 2025. All capital ratios are higher than the requirements for a well-capitalized institution. As of September 30, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 20.32%. As of September 30, 2025, its total capital ratio was 21.39%, and its Tier 1 leverage ratio was 11.21%. Dividends of $.27 and $.81 per share were paid to shareholders during the three and nine months ended for both September 30, 2025 and September 30, 2024. Management believes that the Company has adequate liquidity through its low loan to deposit ratio at September 30, 2025, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 101.20% 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 September 30, 2025 increased $7.7 million, or 2.4%, as compared to December 31, 2024. 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 rising interest rates, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $23.8 million as of September 30, 2025 as compared to recording other comprehensive loss in the amount of $28.7 million as of December 31, 2024. Although these unrealized losses recorded as of September 30, 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. 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 September 30,     2025   2024 Net income   $ 1,069,000     $ 1,057,000   Basic and diluted earnings per share   $ 1.19     $ 1.16             Performance ratios (annualized):         Return on average assets     1.18 %     1.20 % Return on average equity (excluding OCI)     9.71 %     10.32 % Interest rate spread     2.63 %     2.68 % Net interest margin     3.20 %     3.24 % Operating cost to assets     2.32 %     2.34 %           Weighted average basic and diluted shares outstanding     898,336       908,508   Dividends per share   $ 0.27     $ 0.27   Provision for loan losses   $ -     $ -             Nine Months Ended September 30,     2025   2024 Net income   $ 3,071,000     $ 3,027,000   Basic and diluted earnings per share   $ 3.41     $ 3.33             Performance ratios (annualized):         Return on average assets     1.15 %     1.17 % Return on average equity (excluding OCI)     9.46 %     10.00 % Interest rate spread     2.61 %     2.64 % Net interest margin     3.17 %     3.18 % Operating cost to assets     2.34 %     2.37 %           Weighted average basic and diluted shares outstanding     899,739       909,127   Dividends per share   $ 0.81     $ 0.81   Provision for loan losses   $ -     $ -           (Audited)     September 30, 2025   December 31, 2024 Total assets   $ 355,899,000     $ 346,514,000   Loans receivable, net   $ 126,009,000     $ 129,437,000   Deposits   $ 325,846,000     $ 318,169,000   Brokered CD’s included in deposits   $ 14,981,000     $ 14,917,000   Total stockholders’ equity   $ 20,764,000     $ 13,861,000   Book value per share   $ 23.11     $ 15.30   Book value per share (excluding OCI)   $ 49.22     $ 46.48   Average Stockholders’ equity to assets ratio (excluding OCI)     12.11 %     11.80 %           Asset quality ratios:         Nonperforming loans as a percent of total loans     .03 %     .00 % Nonperforming assets as a percent of total loans     .03 %     .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)     September 30,   December 31,     2025   2024           Assets         Cash and cash equivalents   $ 2,987,577       2,406,608   Interest bearing deposits in banks     16,963,824       17,830,073   Securities available for sale     177,986,311       163,442,222   Restricted equity securities     957,100       954,300             Loans     128,286,191       131,789,490   Less Allowance for loan losses     2,277,062       2,352,415   Loans, net     126,009,129       129,437,075             Premises and equipment, net     7,910,968       8,198,615   Right-of-use lease assets – operating     228,541       260,248   Goodwill     306,488       306,488   Bank owned life insurance     11,378,714       11,024,493   Accrued interest receivable     1,623,603       2,107,432   Deferred tax assets, net     8,039,628       9,608,246   Other assets     1,506,749       938,828   Total assets   $ 355,898,632     $ 346,514,628             Liabilities and Stockholders’ Equity         Deposits         Noninterest-bearing   $ 92,282,191     $ 90,389,786   Interest-bearing     233,564,188     227,779,259   Total deposits     325,846,379       318,169,045             Subordinated debentures     3,093,000       3,093,000   Other borrowings     4,000,000       9,000,000   Accrued interest payable     657,764       874,774   Operating lease liabilities     228,541       260,248   Other liabilities     1,308,885       1,256,189   Total liabilities     335,134,569       332,653,256             Stockholders’ equity         Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 898,336 and 905,756 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 at cost, respectively     (15,929,095 )     (15,698,015 ) Retained earnings     51,200,140       48,857,057   Accumulated other comprehensive loss, net     (23,448,928 )     (28,239,616 )           Total stockholders’ equity     20,764,063       13,861,372             Total liabilities and stockholders’ equity   $ 355,898,632     $  346,514,628  PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME       Three Months Ended   Nine Months Ended       September 30,   September 30,       2025   2024   2025   2024   Interest income                   Loans, including fees   $ 2,248,276   $ 2,198,772   $ 6,744,633   $ 6,361,388   Securities available for sale     1,457,691     1,327,160     4,255,734     3,990,155   Other interest     320,497     395,345     813,226     1,044,262   Total interest income     4,026,464     3,921,277     11,813,593     11,395,805                       Interest expense                   Deposits     1,025,478     811,310     2,931,302     2,329,581   Borrowings     50,641     201,884     162,755     570,949   Subordinated debentures     28,000     39,050     104,450     117,150   Total interest expense     1,104,119     1,052,244     3,198,507     3,017,680                       Net interest income     2,922,345     2,869,033     8,615,086     8,378,125   Provision for loan losses     -     -     -     -   Net interest income after provision for loan losses     2,922,345     2,869,033     8,615,086     8,378,125                       Other income                   Fees and service charges on deposit accounts     409,618     429,651     1,201,307     1,278,274   Service fee income, net     -     -     -     743   Bank owned life insurance     121,500     106,500     354,221     316,672   Mortgage fee income     1,147     1,514     6,477     6,167   Total other income     532,265     537,665     1,562,005     1,601,856                       Other expense:                   Salaries and employee benefits     1,215,331     1,172,413     3,624,843     3,468,123   Occupancy expense     307,641     303,811     928,704     936,914   Marketing and professional expense     79,040     76,575     202,883     223,863   Other operating expenses     497,121     508,549     1,527,705     1,508,230   Total other expenses     2,099,133     2,061,348     6,284,135     6,137,130                       Income before income taxes     1,355,477     1,345,350     3,892,956     3,842,851                       Income tax expense     286,544     288,258     821,682     815,383                       Net income   $ 1,068,933 $ 1,057,092 $ 3,071,274 $ 3,027,468                       Cash dividend per share   $ 0.27   $ 0.27   $ 0.81   $ 0.81                       Basic and diluted earnings per share   $ 1.19   $ 1.16   $ 3.41   $ 3.33                       Weighted –average basic and diluted shares outstanding     898,336     908,508     899,739     909,127   PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Nine Months Ended September 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   -     -     -         3,027,468       -       3,027,468   Cash dividends declared ($.81 per share)   -     -     -     -       (736,452 )     -       (736,452 ) Purchase of treasury stock   -     -     -     (41,400 )     -       -       (41,400 ) Other comprehensive income   -     -     -     -       -       4,914,826       4,914,826   Balance September 30, 2024   1,872,313   $ 18,723   $ 8,923,223   $ (15,630,199 )   $ 48,063,272     $ (21,424,036 )   $ 19,950,983                         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   -     -     -         3,071,274       -       3,071,274   Cash dividends declared ($.81 per share)   -     -     -     -       (728,191 )     -       (728,191 ) Purchase of treasury stock   -     -     -     (231,080 )     -       -       (231,080 ) Other comprehensive income   -     -     -     -       -       4,790,688       4,790,688   Balance September 30, 2025   1,872,313   $ 18,723   $ 8,923,223   $ (15,929,095 )   $ 51,200,140     $ (23,448,928 )   $ 20,764,063   PINNACLE BANCSHARES, INC,   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS       For the Nine Months Ended     September 30,     2025   2024 OPERATING ACTIVITIES:         Net income   $ 3,071,274     $ 3,027,468   Adjustments to reconcile net income to net cash provided by operating activities:         Depreciation     356,135       393,633   Net investment amortization expense     111,466       147,629   Net increase in bank owned life insurance     (354,221 )     (316,672 ) Decrease in accrued interest receivable     483,829       499,051   Decrease in accrued interest payable     (217,010 )     (622,782 ) Net other operating activities     (168,543 )     80,801   Net cash provided by operating activities     3,282,930       3,209,128             INVESTING ACTIVITIES:         Net (increase) decrease in loans     3,427,946       (5,888,335 ) Net increase in interest bearing deposits in other banks     866,249       5,355,989   Purchase of securities available for sale     (17,193,506 )     (6,323,402 ) Proceeds from maturing, calls, and payments received on securities available for sale     9,152,014       5,066,020   Net purchase of restricted equity securities     (2,800 )     (118,100 ) Purchase of income tax credit at discount     (601,439 )     -   Purchase of premises and equipment     (68,488 )     (291,866 ) Net cash used in investing activities     (4,420,024 )     (2,199,694 )           FINANCING ACTIVITIES:         Net increase in deposits     7,677,334       3,363,108   Proceeds from other borrowings     -       16,500,000   Repayments of other borrowings     (5,000,000 )     (20,000,000 ) Purchase of treasury stock     (231,080 )     (41,400 ) Payments of cash dividends     (728,191 )     (736,452 ) Net cash used in financing activities     (1,718,063 )     (914,744 )           Net increase in cash and cash equivalents     580,969       94,690             Cash and cash equivalents at beginning of period     2,406,608       2,190,793             Cash and cash equivalents at end of period   $ 2,987,577     $ 2,285,483             SUPPLEMENTAL DISCLOSURES:         Cash paid during the period for:         Interest   $ 3,415,517     $ 3,640,462   Taxes   $ 851,759     $ 700,747             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=20251027496204r1&sid=acqr8&distro=nx&lang=en View source version on businesswire.com: https://www.businesswire.com/news/home/20251027496204/en/ Joe B. Adams, III Chief Financial Officer (205) 221-8866 Source: Pinnacle Bancshares, Inc. © Copyright Business Wire 2025

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