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	$	-		$	-