Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2024

About this update from Pinnacle Bancshares, Inc.

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s results of operations for the fourth quarter and year ended December 31, 2024: For the three months ended December 31, 2024, Pinnacle’s basic/diluted earnings per share was $1.15 as compared to $1.08 per share for the three months ended December 31, 2023. Net income for the three months ended December 31, 2024 was $1,038,000 as compared to $981,000 for the three months ended December 31, 2023. For the year ended December 31, 2024, Pinnacle’s basic/diluted earnings per share was $4.48 as compared to $4.93 per share for the year ended December 31, 2023. Pinnacle reported net income of $4,066,000 for the year ended December 31, 2024 as compared to $4,480,000, for the year ended December 31, 2023. For the three and nine months ended December 31, 2024, return on average assets was 1.20%, and 1.18%, respectively, compared to 1.18% and 1.34%, respectively, in the comparable 2023 period. Company’s net interest margin was 3.17% and 3.18%, respectively for the three months and year ended December 31, 2024, respectively, compared to 3.18% and 3.32% for both the three months and year ended December 31, 2023, respectively. At December 31, 2024, Pinnacle’s allowance for loan losses as a percent of total loans was 1.78%, compared to 1.96% at December 31, 2023. Net charge-offs were $107,000 during 2024 and $102,000 for 2023. There were no nonperforming assets at both December 31, 2024 and 2023. Pinnacle was classified as “well capitalized” at the end of 2024. All capital ratios are higher than the requirements for a well-capitalized institution. As of December 31, 2024, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 18.97%. As of December 31, 2024, its total capital ratio was 20.05%, and its Tier 1 leverage ratio was 11.09%. Dividends of $.27 and $1.08 per share were paid to shareholders during the three months and year ended for both December 31, 2024 and 2023. Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at December 31, 2024, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 102.67% 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 December 31, 2024 increased $6.8 million, or 2.2%, as compared to December 31, 2023. Effects of Inflation Inflation has 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 increase in interest rates since 2022, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $28.7 million and $26.7 million as of December 31, 2024 and 2023, respectively. Although these unrealized losses recorded as of 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. 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 December 31,     2024   2023 Net income   $ 1,038,000     $ 981,000   Basic and diluted earnings per share   $ 1.15     $ 1.08             Performance ratios (annualized):         Return on average assets     1.20 %     1.18 % Return on average equity (excluding OCI)     9.90 %     10.07 % Interest rate spread     2.64 %     2.70 % Net interest margin     3.17 %     3.18 % Operating cost to assets     2.28 %     2.40 %           Weighted average basic and diluted shares outstanding     906,730       909,534   Dividends per share   $ 0.27     $ 0.27   Provision for loan losses   $ -     $ -             Years Ended December 31,     2024   2023 Net income   $ 4,066,000     $ 4,480,000   Basic and diluted earnings per share   $ 4.48     $ 4.93             Performance ratios (annualized):         Return on average assets     1.18 %     1.34 % Return on average equity (excluding OCI)     9.96 %     11.89 % Interest rate spread     2.64 %     2.98 % Net interest margin     3.18 %     3.32 % Operating cost to assets     2.34 %     2.31 %           Weighted average basic and diluted shares outstanding     908,525       909,534   Dividends per share   $ 1.08     $ 1.08   Provision for loan losses   $ -     $ -             (Audited)     December 31, 2024   December 31, 2023 Total assets   $ 346,666,000     $ 342,578,000   Loans receivable, net   $ 129,437,000     $ 122,973,000   Deposits   $ 318,170,000     $ 311,339,000   Brokered CD’s included in deposits   $ 14,917,000     $ 11,907,000   Total stockholders’ equity   $ 13,861,000     $ 12,787,000   Book value per share   $ 15.30     $ 14.06   Book value per share (excluding OCI)   $ 46.48     $ 43.02   Average Stockholders’ equity to assets ratio (excluding OCI)     11.80 %     11.25 %           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     1.78 %     1.96 % FINANCIAL INFORMATION   PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION     (Unaudited)   (Audited)   December 31,   December 31,   2024   2023         Assets       Cash and cash equivalents $ 2,406,608     $ 2,190,793   Interest bearing deposits in banks   17,830,073       19,518,942   Securities available for sale   163,442,222       165,520,025   Restricted equity securities   954,300       836,200           Loans   131,789,490       125,433,112   Less Allowance for loan losses   2,352,415       2,459,372   Loans, net   129,437,075       122,973,740           Premises and equipment, net   8,198,615       8,421,289   Right-of-use lease assets – operating   260,248       302,171   Goodwill   306,488       306,488   Bank owned life insurance   11,024,493       10,601,839   Accrued interest receivable   2,107,431       2,107,189   Deferred tax assets, net   9,759,285       8,951,799   Other assets   938,828       847,912   Total assets $ 346,665,666     $ 342,578,387           Liabilities and Stockholders’ Equity       Deposits       Noninterest-bearing $ 89,120,999     $ 89,518,619   Interest-bearing   229,049,151     221,820,527   Total deposits   318,170,150       311,339,146           Subordinated debentures   3,093,000       3,093,000   Other borrowings   9,000,000       12.500,000   Accrued interest payable   874,774       1,392,273   Operating lease liabilities   260,248       302,171   Other liabilities   1,406,122       1,165,256   Total liabilities   332,804,294       329,791,846           Stockholders’ equity       Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 905,786 and 909,534 shares outstanding, respectively   18,723       18,723   Additional paid‑in capital   8,923,223       8,923,223   Treasury stock 966,527 and 962,779 shares at cost, respectively   (15,698,015 )     (15,588,799 ) Retained earnings   48,857,057       45,772,256   Accumulated other comprehensive loss, net of tax   (28,239,616 )     (26,338,862 )         Total stockholders’ equity   13,861,372       12,786,541           Total liabilities and stockholders’ equity $ 346,665,666 $ 342,578,387 PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME         Three Months Ended   Years Ended     December 31,   December 31,     2024   2023   2024   2023 Interest income                 Loans, including fees   $ 2,235,841   $ 2,003,295   $ 8,597,229   $ 7,527,937 Securities available for sale     1,378,965     1,347,416     5,369,120     5,504,358 Other interest     177,504     266,587     1,221,766     840,501 Total interest income     3,792,310     3,617,298     15,188,115     13,872,796                   Interest expense                 Deposits     876,187     692,818     3,205,768     1,859,046 Borrowings     110,926     148,910     681,875     438,088 Subordinated debentures     39,050     39,050     156,200     156,200 Total interest expense     1,026,163     880,778     4,043,843     2,453,334                   Net interest income     2,766,147     2,736,520     11,144,272     11,419,462 Provision for loan losses     -     -     -     - Net interest income after provision for loan losses     2,766,147     2,736,520     11,144,272     11,419,462                   Other income                 Fees and service charges on deposit accounts     434,913     426,111     1,713,187     1,681,484 Service fee income, net     -     746     743     2,910 Bank owned life insurance     105,982     101,087     422,654     395,505 Mortgage fee income     -     -     6,167     12,113 Total other income     540,895     527,944     2,142,751     2,092,012                   Other expense:                 Salaries and employee benefits     1,143,327     1,041,716     4,611,450     4,382,725 Occupancy expense     259,798     271,628     1,196,712     943,058 Marketing and professional expense     74,751     131,811     298,614     338,524 Other operating expenses     496,104     541,429     2,004,334     2,085,710 Total other expenses     1,973,980     1,986,584     8,111,110     7,750,017                   Income before income taxes     1,133,062     1,277,880     5,175,913     5,761,457                   Income tax expense     294,715     296,737     1,110,098     1,281,278                   Net income   $ 1,038,347   $ 981,143   $ 4,065,815   $ 4,480,179                   Cash dividend per share   $ 0.27   $ 0.27   $ 1.08   $ 1.08                   Basic and diluted earnings per share   $ 1.15   $ 1.08   $ 4.48   $ 4.93                   Weighted –average basic and diluted shares outstanding     906,730     909,534     908,525     909,534 PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Years Ended December 31, 2024 and 2023                                               Accumulated             Additional           Other   Total   Common Stock   Paid-in   Treasury   Retained   Comprehensive   Stockholders’   Shares   Amount   Capital   Stock   Earnings   Loss   Equity Balance December 31, 2022 1,872,313   $ 18,723   $ 8,923,223   $ (15,588,799 )   $ 42,274,372     $ (29,889,603 )   $ 5,737,916   Net income -     -     -         4,480,179       -       4,480,179   Cash dividends declared ($1.08 per share) -     -     -     -       (982,295 )     -       (982,295 ) Other comprehensive income -     -     -     -       -       3,550,741       3,550,741   Balance December 31, 2023 1,872,313   $ 18,723   $ 8,923,223   $ (15,588,799 )   $ 45,772,256     $ (26,338,862 )   $ 12,786,541                       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 -     -     -         4,065,815       -       4,065,815   Cash dividends declared ($1.08 per share) -     -     -     -       (981,014 )     -       (981,014 ) Purchase of treasury stock -     -     -     (109,216 )     -       -       (109,216 ) Other comprehensive loss -     -     -     -       -       (1,900,754 )     (1,900,754 ) Balance December 31, 2024 1,872,313   $ 18,723   $ 8,923,223   $ (15,698,015 )   $ 48,857,057     $ (28,239,616 )   $ 13,861,372   PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     For the Years Ended   December 31,   2024   2023 OPERATING ACTIVITIES:       Net income $ 4,065,815     $ 4,480,179   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation   522,575       418,815   Net investment amortization expense   185,926       180,496   Net increase in bank owned life insurance   (422,654 )     (395,505 ) Decrease in accrued interest receivable   (242 )     (36,292 ) Increase (decrease) in accrued interest payable   (517,499 )     1,280,620   Net other operating activities   94,019       535,306   Net cash provided by operating activities   3,927,940       6,463,619           INVESTING ACTIVITIES:       Net increase in loans   (6,463,335 )     (7,018,152 ) Net (increase) decrease in interest bearing deposits in other banks   1,688,869       (7,332,960 ) Purchase of securities available for sale   (7,414,432 )     -   Proceeds from maturing, calls, and payments received on securities available for sale   6,654,000       9,712,596   Net purchase of restricted equity securities   (118,100 )     (62,600 ) Purchase of premises and equipment   (299,901 )     (1,913,473 ) Net cash used in investing activities   (5,952,899 )     (6,614,589 )         FINANCING ACTIVITIES:       Net increase (decrease) in deposits   6,831,004       (10,918,880 ) Proceeds from other borrowings   16,500,000       16,100,000   Repayments of other borrowings   (20,000,000 )     (3,600,000 ) Purchase of treasury stock   (109,216 )     -   Payments of cash dividends   (981,014 )     (982,295 ) Net cash provided by financing activities   2,240,744       598,825           Net increase in cash and cash equivalents   215,815       447,855           Cash and cash equivalents at beginning of period   2,190,793       1,742,938           Cash and cash equivalents at end of period $ 2,406,608     $ 2,190,793           SUPPLEMENTAL DISCLOSURES:       Cash paid during the period for:       Interest $ 4,561,342     $ 1,172,714   Taxes $ 1,022,747     $ 945,928           OTHER NONCASH TRANSACTIONS       Real estate acquired through foreclosure $ -     $ -   Internally financed sales of other real estate owned $ -     $ -     View source version on businesswire.com: https://www.businesswire.com/news/home/20250128155449/en/

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