Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2025

About this update from Pinnacle Bancshares, Inc.

Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2025 Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2025 JASPER, Ala.--(BUSINESS WIRE)-- Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCID: PCLB), today announced Pinnacle’s results of operations for the fourth quarter and year ended December 31, 2025: For the three months ended December 31, 2025, Pinnacle’s basic/diluted earnings per share was $1.24 as compared to $1.15 per share for the three months ended December 31, 2024. Net income for the three months ended December 31, 2025 was $1,118,000 as compared to $1,038,000 for the three months ended December 31, 2024. For the year ended December 31, 2025, Pinnacle’s basic/diluted earnings per share was $4.66 as compared to $4.48 per share for the year ended December 31, 2024. Pinnacle reported net income of $4,189,000 for the year ended December 31, 2025 as compared to $4,066,000, for the year ended December 31, 2024. For the three and nine months ended December 31, 2025, return on average assets was 1.24%, and 1.17%, respectively, compared to 1.20% and 1.18%, respectively, in the comparable 2024 period. Company’s net interest margin was 3.27% and 3.20%, respectively for the three months and year ended December 31, 2025, respectively, compared to 3.17% and 3.18% for both the three months and year ended December 31, 2024, respectively. At December 31, 2025, Pinnacle’s allowance for loan losses as a percent of total loans was 1.52%, compared to 1.78% at December 31, 2024. Net charge-offs were $339,000 during 2025 and $107,000 for 2024. There was $22,000 in non-nonperforming assets at December 31, 2025 and none at 2024. Pinnacle was classified as “well capitalized” at the end of 2025. All capital ratios are higher than the requirements for a well-capitalized institution. As of December 31, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 19.95%. As of December 31, 2025, its total capital ratio was 20.86%, and its Tier 1 leverage ratio was 11.57%. Dividends of $.27 and $1.08 per share were paid to shareholders during the three months and year ended for both December 31, 2025 and 2024. Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at December 31, 2025, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 104.20% 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 December 31, 2025 increased $13.3 million, or 4.2%, as compared to December 31, 2024. 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, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $22.7 million and $28.7 million as of December 31, 2025 and 2024, respectively. Although these unrealized losses recorded as of 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. 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,         2025       2024     Net income   $ 1,118,000     $ 1,038,000     Basic and diluted earnings per share   $ 1.24     $ 1.15                 Performance ratios (annualized):           Return on average assets     1.24 %     1.20 %   Return on average equity (excluding OCI)     9.97 %     9.90 %   Interest rate spread     2.70 %     2.64 %   Net interest margin     3.27 %     3.17 %   Operating cost to assets     2.38 %     2.28 %               Weighted average basic and diluted shares outstanding     898,336       906,730     Dividends per share   $ 0.27     $ 0.27     Provision for loan losses   $ -     $ -                 Years Ended December 31,         2025       2024     Net income   $ 4,189,000     $ 4,066,000     Basic and diluted earnings per share   $ 4.66     $ 4.48                 Performance ratios (annualized):           Return on average assets     1.17 %     1.18 %   Return on average equity (excluding OCI)     9.59 %     9.96 %   Interest rate spread     2.64 %     2.64 %   Net interest margin     3.20 %     3.18 %   Operating cost to assets     2.35 %     2.34 %               Weighted average basic and diluted shares outstanding     899,385       908,525     Dividends per share   $ 1.08     $ 1.08     Provision for loan losses   $ -     $ -             (Audited)       December 31, 2025   December 31, 2024   Total assets   $ 363,672,000     $ 346,514,000     Loans receivable, net   $ 130,849,000     $ 129,437,000     Deposits   $ 331,496,000     $ 318,169,000     Brokered CD’s included in deposits   $ 20,983,000     $ 14,917,000     Total stockholders’ equity   $ 22,646,000     $ 13,861,000     Book value per share   $ 25.21     $ 15.30     Book value per share (excluding OCI)   $ 50.19     $ 46.48     Average Stockholders’ equity to assets ratio (excluding OCI)     12.20 %     11.80 %               Asset quality ratios:           Nonperforming loans as a percent of total loans     .02 %     .00 %   Nonperforming assets as a percent of total loans     .02 %     .00 %   Allowance for loan losses as a percent of total loans     1.52 %     1.78 %                 FINANCIAL INFORMATION   PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION     (Unaudited)   (Audited)   December 31,   December 31,     2025       2024           Assets       Cash and cash equivalents $ 2,763,958       2,406,608   Interest bearing deposits in banks   21,122,645       17,830,073   Securities available for sale   176,921,364       163,442,222   Restricted equity securities   957,100       954,300           Loans   132,861,644       131,789,490   Less Allowance for loan losses   2,013,072       2,352,415   Loans, net   130,848,572       129,437,075           Premises and equipment, net   7,801,667       8,198,615   Right-of-use lease assets – operating   217,576       260,248   Goodwill   306,488       306,488   Bank owned life insurance   11,498,037       11,024,493   Accrued interest receivable   2,072,700       2,107,432   Deferred tax assets, net   7,664,319       9,608,246   Other assets   1,497,820       938,828   Total assets $ 363,672,246     $ 346,514,628           Liabilities and Stockholders’ Equity       Deposits       Noninterest-bearing $ 91,473,838     $ 90,389,786   Interest-bearing   240,021,925     227,779,259   Total deposits   331,495,763       318,169,045           Subordinated debentures   3,093,000       3,093,000   Other borrowings   4,000,000       9,000,000   Accrued interest payable   781,290       874,774   Operating lease liabilities   217,576       260,248   Other liabilities   1,438,533       1,256,189   Total liabilities   341,026,162       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 at cost, respectively   (15,929,095 )     (15,698,015 ) Retained earnings   52,075,496       48,857,057   Accumulated other comprehensive loss, net of tax   (22,442,263 )     (28,239,616 )         Total stockholders’ equity   22,646,084       13,861,372           Total liabilities and stockholders’ equity $ 363,672,246     $ 346,514,628     PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME     Three Months Ended   Years Ended   December 31,   December 31,   2025   2024   2025   2024 Interest income         Loans, including fees $ 2,302,872 $ 2,235,841 $ 9,047,505 $ 8,597,229 Securities available for sale   1,501,926   1,378,965   5,757,660   5,369,120 Other interest   212,583   177,504   1,025,809   1,221,766 Total interest income   4,017,381   3,792,310   15,830,974   15,188,115           Interest expense         Deposits   995,549   876,187   3,926,851   3,205,768 Borrowings   50,316   110,926   213,071   681,875 Subordinated debentures   35,500   39,050   139,950   156,200 Total interest expense   1,081,365   1,026,163   4,279,872   4,043,843           Net interest income   2,936,016   2,766,147   11,551,102   11,144,272 Provision for loan losses   -   -   -   - Net interest income after provision for loan losses   2,936,016   2,766,147   11,144,272   11,144,272           Other income         Fees and service charges on deposit accounts   421,350   434,913   1,622,657   1,713,187 Service fee income, net   -   -   -   743 Bank owned life insurance   119,323   105,982   473,544   422,654 Mortgage fee income   5,356   -   11,833   6,167 Total other income   546,029   540,895   2,108,034   2,142,751           Other expense:         Salaries and employee benefits   1,247,115   1,143,327   4,871,958   4,611,450 Occupancy expense   314,316   259,798   1,243,020   1,196,712 Marketing and professional expense   61,056   74,751   263,939   298,614 Other operating expenses   520,539   496,104   2,048,244   2,004,334 Total other expenses   2,143,026   1,973,980   8,427,161   8,111,110           Income before income taxes   1,339,019   1,133,062   5,231,975   5,175,913           Income tax expense   221,111   294,715   1,042,793   1,110,098           Net income $ 1,117,908 $ 1,038,437 $ 4,189,182 $ 4,065,815           Cash dividend per share $ 0.27 $ 0.27 $ 1.08 $ 1.08           Basic and diluted earnings per share $ 1.24 $ 1.15 $ 4.66 $ 4.48           Weighted –average basic and diluted shares outstanding   898,336   906,730   899,385   908,525     PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Years Ended December 31, 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 -     -     -         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                         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 -     -     -         4,189,182       -       4,189,182   Cash dividends declared ($1.08 per share) -     -     -     -       (970,743 )     -       (970,743 ) Purchase of treasury stock -     -     -     (231,080 )     -       -       (231,080 ) Other comprehensive income -     -     -     -       -       5,797,353       5,797,353   Balance December 31, 2025 1,872,313   $ 18,723   $ 8,923,223   $ (15,929,095 )   $ 52,075,496     $ (22,442,263 )   $ 22,646,084       PINNACLE BANCSHARES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     For the Years Ended   December 31,   2025   2024 OPERATING ACTIVITIES:       Net income $ 4,189,182     $ 4,065,815   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation   481,490       522,575   Net investment amortization expense   127,196       185,926   Net increase in bank owned life insurance   (473,544 )     (422,654 ) (Increase) decrease in accrued interest receivable   34,732       (242 ) Decrease in accrued interest payable   (93,484 )     (517,499 ) Net other operating activities   (2,848 )     94,019   Net cash provided by operating activities   4,262,724       3,927,940           INVESTING ACTIVITIES:       Net increase in loans   (1,411,497 )     (6,463,335 ) Net (increase) decrease in interest bearing deposits in other banks   (3,292,572 )     1,688,869   Purchase of securities available for sale   (17,193,506 )     (7,414,432 ) Proceeds from maturing, calls, and payments received on securities available for sale   11,556,087       6,654,000   Net purchase of restricted equity securities   (2,800 )     (118,100 ) Purchase of income tax credit at discount   (601,439 )     -   Purchase of premises and equipment   (84,542 )     (299,901 ) Net cash used in investing activities   (11,030,269 )     (5,952,899 )         FINANCING ACTIVITIES:       Net increase in deposits   13,326,718       6,831,004   Proceeds from other borrowings   -       16,500,000   Repayments of other borrowings   (5,000,000 )     (20,000,000 ) Purchase of treasury stock   (231,080 )     (109,216 ) Payments of cash dividends   (970,743 )     (981,014 ) Net cash provided by financing activities   7,124,895       2,240,744           Net increase in cash and cash equivalents   357,350       215,815           Cash and cash equivalents at beginning of period   2,406,608       2,190,793           Cash and cash equivalents at end of period $ 2,763,958     $ 2,406,608           SUPPLEMENTAL DISCLOSURES:       Cash paid during the period for:       Interest $ 4,373,356     $ 4,561,342   Taxes $ 923,759     $ 1,022,747           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=20260122368019r1&sid=acqr8&distro=nx&lang=en View source version on businesswire.com: https://www.businesswire.com/news/home/20260122368019/en/ Joe B. Adams, III Chief Financial Officer (205) 221-8866 Source: Pinnacle Bancshares, Inc. © Copyright Business Wire 2026

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