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PINNACLE BANCSHARES INC
Symbol	PCLB
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Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2025

2026-01-22 16:15 ET - News Release

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; 1,872,313issued; 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	$	-		$	-

View source version on businesswire.com: https://www.businesswire.com/news/home/20260122368019/en/

Contacts:

Joe B. Adams, III
Chief Financial Officer
(205) 221-8866

Source: Pinnacle Bancshares, Inc.