Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced the Company’s second quarter results of operations.
- For the three months ended June 30, 2025, Pinnacle’s basic/diluted earnings per share was $1.10 as compared to $1.11 per share for the three months ended June 30, 2024. Net income for the three months ended June 30, 2025 was $984,000 as compared to $1,007,000 for the three months ended June 30, 2024.
- For the six months ended June 30, 2025, Pinnacle’s basic/diluted earnings per share was $2.22 as compared to $2.17 per share for the six months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $2,002,000 as compared to $1,970,000 for the six months ended June 30, 2024.
- For the three and six months ended June 30, 2025, return on average assets was 1.11%, and 1.13%, respectively, compared to 1.18% and 1.15%, respectively, in the comparable 2024 period.
The Company’s net interest margin was 3.13% and 3.16% for the three and six months ended June 30, 2025, respectively, as compared to 3.22% and 3.15% for the three and six months ended June 30, 2024.
At June 30, 2025, the Company’s allowance for loan losses as a percent of total loans was 1.77%, compared to 1.78% at December 31, 2024. There were no nonperforming assets as of June 30, 2025 as well as December 31, 2024.
Pinnacle Bank was classified as “well capitalized” at June 30, 2025. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of June 30, 2025, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 19.97%. As of June 30, 2025, its total capital ratio was 21.03%, and its Tier 1 leverage ratio was 11.13%.
Dividends of $.27 and $.54 per share were paid to shareholders during the three and six months ended for both June 30, 2025 and 2024.
Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at June 30, 2025, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 98.76% 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 June 30, 2025 increased approximately $9.9 million, or 3%, as compared to December 31, 2024.
Effects of Inflation
Inflation caused a substantial rise in interest rates during 2023 and 2022 which had a negative effect in the securities market. As a result of rising interest rates, the Company recorded an accumulated other comprehensive loss on securities available for sale of approximately $26.6 million as of June 30, 2025 as compared to $28.7 million as of December 31, 2024. Although these unrealized losses recorded as of June 30, 2025 and 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. These losses do not impact the Bank’s regulatory capital ratios.
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 June 30, |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
Net income |
|
$ |
984,000 |
|
|
$ |
1,007,000 |
|
Basic and diluted earnings per share |
|
$ |
1.10 |
|
|
$ |
1.11 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.11 |
% |
|
|
1.18 |
% |
Return on average equity (excluding OCI) |
|
|
9.11 |
% |
|
|
9.96 |
% |
Interest rate spread |
|
|
2.56 |
% |
|
|
2.69 |
% |
Net interest margin |
|
|
3.13 |
% |
|
|
3.22 |
% |
Operating cost to assets |
|
|
2.37 |
% |
|
|
2.42 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
898,512 |
|
|
|
909,347 |
|
Dividends per share |
|
$ |
0.27 |
|
|
$ |
0.27 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
||||||
|
|
Six Months Ended June 30, |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
Net income |
|
$ |
2,002,000 |
|
|
$ |
1,970,000 |
|
Basic and diluted earnings per share |
|
$ |
2.22 |
|
|
$ |
2.17 |
|
|
|
|
|
|
||||
Performance ratios (annualized): |
|
|
|
|
||||
Return on average assets |
|
|
1.13 |
% |
|
|
1.15 |
% |
Return on average equity (excluding OCI) |
|
|
9.33 |
% |
|
|
9.84 |
% |
Interest rate spread |
|
|
2.61 |
% |
|
|
2.62 |
% |
Net interest margin |
|
|
3.16 |
% |
|
|
3.15 |
% |
Operating cost to assets |
|
|
2.32 |
% |
|
|
2.38 |
% |
|
|
|
|
|
||||
Weighted average basic and diluted shares outstanding |
|
|
900,452 |
|
|
|
909,441 |
|
Dividends per share |
|
$ |
0.54 |
|
|
$ |
0.54 |
|
Provision for loan losses |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
||||
|
|
|
|
(Audited) |
||||
|
|
June 30, 2025 |
|
December 31, 2024 |
||||
Total assets |
|
$ |
354,101,000 |
|
|
$ |
346,514,000 |
|
Loans receivable, net |
|
$ |
126,154,000 |
|
|
$ |
129,437,000 |
|
Deposits |
|
$ |
328,055,000 |
|
|
$ |
318,169,000 |
|
Brokered CD’s included in deposits |
|
$ |
14,959,000 |
|
|
$ |
14,917,000 |
|
Total stockholders’ equity |
|
$ |
17,050,000 |
|
|
$ |
13,861,000 |
|
Book value per share |
|
$ |
18.98 |
|
|
$ |
15.30 |
|
Book value per share (excluding OCI) |
|
$ |
48.30 |
|
|
$ |
46.48 |
|
Total average stockholders’ equity to assets ratio (excluding OCI) |
|
|
12.07 |
% |
|
|
11.80 |
% |
|
|
|
|
|
||||
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 |
|
|
1.77 |
% |
|
|
1.78 |
% |
FINANCIAL INFORMATION
PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
|||||||
|
(Unaudited) |
|
(Audited) |
||||
|
June 30, |
|
December 31, |
||||
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
3,095,144 |
|
|
|
2,406,608 |
|
Interest bearing deposits in banks |
|
22,764,592 |
|
|
|
17,830,073 |
|
Securities available for sale |
|
169,525,566 |
|
|
|
163,442,222 |
|
Restricted equity securities |
|
957,000 |
|
|
|
954,300 |
|
|
|
|
|
||||
Loans |
|
128,423,547 |
|
|
|
131,789,490 |
|
Less Allowance for loan losses |
|
2,269,516 |
|
|
|
2,352,415 |
|
Loans, net |
|
126,154,031 |
|
|
|
129,437,075 |
|
|
|
|
|
||||
Premises and equipment, net |
|
8,005,365 |
|
|
|
8,198,615 |
|
Right-of-use lease assets – operating |
|
239,047 |
|
|
|
260,248 |
|
Goodwill |
|
306,488 |
|
|
|
306,488 |
|
Bank owned life insurance |
|
11,257,214 |
|
|
|
11,024,493 |
|
Accrued interest receivable |
|
2,033,480 |
|
|
|
2,107,432 |
|
Deferred tax assets, net |
|
9,060,048 |
|
|
|
9,608,246 |
|
Other assets |
|
703,336 |
|
|
|
938,828 |
|
Total assets |
$ |
354,101,311 |
|
|
$ |
346,514,628 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Deposits |
|
|
|
||||
Noninterest-bearing |
$ |
92,059,679 |
|
|
$ |
90,389,786 |
|
Interest-bearing |
|
235,994,943 |
|
|
227,779,259 |
|
|
Total deposits |
|
328,054,622 |
|
|
|
318,169,045 |
|
|
|
|
|
||||
Subordinated debentures |
|
3,093,000 |
|
|
|
3,093,000 |
|
Other borrowings |
|
4,000,000 |
|
|
|
9,000,000 |
|
Accrued interest payable |
|
676,183 |
|
|
|
874,774 |
|
Operating lease liabilities |
|
239,047 |
|
|
|
260,248 |
|
Other liabilities |
|
988,920 |
|
|
|
1,256,189 |
|
Total liabilities |
|
337,051,772 |
|
|
|
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, respectively) |
|
(15,929,095 |
) |
|
|
(15,698,015 |
) |
Retained earnings |
|
50,373,757 |
|
|
|
48,857,057 |
|
Accumulated other comprehensive loss, net of tax |
|
(26,337,069 |
) |
|
|
(28,239,616 |
) |
|
|
|
|
||||
Total stockholders’ equity |
|
17,049,539 |
|
|
|
13,861,372 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
354,101,311 |
|
|
$ |
346,514,628 |
|
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
June 30, |
|
June 30, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Interest income |
|
|
|
|
|
|
|
||||
Loans, including fees |
$ |
2,206,111 |
|
$ |
2,136,245 |
|
$ |
4,496,357 |
|
$ |
4,162,616 |
Securities available for sale |
|
1,428,563 |
|
|
1,326,707 |
|
|
2,798,043 |
|
|
2,662,995 |
Other interest |
|
257,989 |
|
|
340,093 |
|
|
492,729 |
|
|
648,917 |
Total interest income |
|
3,892,663 |
|
|
3,803,045 |
|
|
7,787,129 |
|
|
7,474,528 |
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
|
|
|
|
||||
Deposits |
|
982,155 |
|
|
757,324 |
|
|
1,905,824 |
|
|
1,518,271 |
Borrowings and repurchase agreements |
|
49,769 |
|
|
190,262 |
|
|
112,114 |
|
|
369,065 |
Subordinated debentures |
|
37,400 |
|
|
39,050 |
|
|
76,450 |
|
|
78,100 |
Total interest expense |
|
1,069,324 |
|
|
986,636 |
|
|
2,094,388 |
|
|
1,965,436 |
|
|
|
|
|
|
|
|
||||
Net interest income |
|
2,823,339 |
|
|
2,816,409 |
|
|
5,692,741 |
|
|
5,509,092 |
Provision for loan losses |
|
- |
|
|
- |
|
|
- |
|
|
- |
Net interest income after provision for loan losses |
|
2,823,339 |
|
|
2,816,409 |
|
|
5,692,741 |
|
|
5,509,092 |
|
|
|
|
|
|
|
|
||||
Other income |
|
|
|
|
|
|
|
||||
Fees and service charges on deposit accounts |
|
403,046 |
|
|
423,780 |
|
|
791,689 |
|
|
848,623 |
Service fee income, net |
|
- |
|
|
- |
|
|
- |
|
|
743 |
Bank owned life insurance |
|
115,500 |
|
|
106,500 |
|
|
232,721 |
|
|
210,172 |
Mortgage fee income |
|
5,330 |
|
|
2,522 |
|
|
5,330 |
|
|
4,653 |
Total other income |
|
523,876 |
|
|
532,802 |
|
|
1,029,740 |
|
|
1,064,191 |
|
|
|
|
|
|
|
|
||||
Other expense: |
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
1,200,564 |
|
|
1,158,295 |
|
|
2,409,512 |
|
|
2,295,710 |
Occupancy expense |
|
306,971 |
|
|
320,432 |
|
|
621,063 |
|
|
633,103 |
Marketing and professional expense |
|
68,345 |
|
|
72,425 |
|
|
123,843 |
|
|
147,288 |
Other operating expenses |
|
525,652 |
|
|
519,858 |
|
|
1,030,584 |
|
|
999,681 |
Total other expenses |
|
2,101,532 |
|
|
2,071,010 |
|
|
4,185,002 |
|
|
4,075,782 |
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
1,245,683 |
|
|
1,278,201 |
|
|
2,537,479 |
|
|
2,497,501 |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
261,329 |
|
|
271,395 |
|
|
535,138 |
|
|
527,125 |
|
|
|
|
|
|
|
|
||||
Net income |
$ |
984,354 |
|
$ |
1,006,806 |
|
$ |
2,002,341 |
|
$ |
1,970,376 |
|
|
|
|
|
|
|
|
||||
Cash dividend per share |
$ |
0.27 |
|
$ |
0.27 |
|
$ |
0.54 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
||||
Basic and diluted earnings per share |
$ |
1.10 |
|
$ |
1.11 |
|
$ |
2.22 |
|
$ |
2.17 |
|
|
|
|
|
|
|
|
||||
Weighted –average basic and diluted shares outstanding |
|
898,512 |
|
|
909,347 |
|
|
900,452 |
|
|
909,441 |
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Six Months Ended June 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 |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
1,970,376 |
|
|
|
- |
|
|
|
1,970,376 |
|
Cash dividends declared ($.54 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(491,148 |
) |
|
|
- |
|
|
|
(491,148 |
) |
Purchase of treasury stock |
|
|
|
|
|
|
|
(31,000 |
) |
|
|
- |
|
|
|
- |
|
|
|
(31,000 |
) |
||
Other comprehensive loss |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(161,244 |
) |
|
|
(161,244 |
) |
Balance June 30, 2024 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(15,619,799 |
) |
|
$ |
47,251,484 |
|
|
$ |
(26,500,106 |
) |
|
$ |
14,073,525 |
|
|
|
|
|
|
|
|
|
|
|
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 |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
2,002,341 |
|
|
|
- |
|
|
|
2,002,341 |
|
Cash dividends declared ($.54 per share) |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(485,641 |
) |
|
|
- |
|
|
|
(485,641 |
) |
Purchase of treasury stock |
- |
|
|
- |
|
|
- |
|
|
(231,080 |
) |
|
|
- |
|
|
|
- |
|
|
|
(231,080 |
) |
Other comprehensive income |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
1,902,547 |
|
|
|
1,902,547 |
|
Balance June 30, 2025 |
1,872,313 |
|
$ |
18,723 |
|
$ |
8,923,223 |
|
$ |
(15,929,095 |
) |
|
$ |
50,373,757 |
|
|
$ |
(26,337,069 |
) |
|
$ |
17,049,539 |
|
PINNACLE BANCSHARES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
For the Six Months Ended |
||||||
|
June 30, |
||||||
|
|
2025 |
|
|
|
2024 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net income |
$ |
2,002,341 |
|
|
$ |
1,970,376 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
242,651 |
|
|
|
261,892 |
|
Net investment amortization expense |
|
77,948 |
|
|
|
101,905 |
|
Bank owned life insurance |
|
(232,721 |
) |
|
|
(210,172 |
) |
Decrease in accrued interest receivable |
|
73,952 |
|
|
|
81,052 |
|
Decrease in accrued interest payable |
|
(198,591 |
) |
|
|
(528,390 |
) |
Net other operating activities |
|
(270,406 |
) |
|
|
58,211 |
|
Net cash provided by operating activities |
|
1,695,174 |
|
|
|
1,734,874 |
|
|
|
|
|
||||
INVESTING ACTIVITIES: |
|
|
|
||||
Net decrease in loans |
|
3,283,044 |
|
|
|
260,825 |
|
Net increase in interest-bearing deposits in other banks |
|
(4,934,519 |
) |
|
|
(7,391,029 |
) |
Purchase of securities available for sale |
|
(8,074,614 |
) |
|
|
- |
|
Proceeds from maturing, sale and payments received on securities available for sale |
|
4,602,696 |
|
|
|
2,971,115 |
|
Net purchase of restricted equity securities |
|
(2,700 |
) |
|
|
(118,100 |
) |
Purchase of premises and equipment |
|
(49,401 |
) |
|
|
(291,866 |
) |
Net cash used in investing activities |
|
(5,175,494 |
) |
|
|
(4,569,055 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES: |
|
|
|
||||
Net increase (decrease) in deposits |
|
9,885,577 |
|
|
|
(1,029,910 |
) |
Proceeds from other borrowings |
|
- |
|
|
|
16,500,000 |
|
Repayments of other borrowings |
|
(5,000,000 |
) |
|
|
(12,500,000 |
) |
Purchase of treasury stock |
|
(231,080 |
) |
|
|
(31,000 |
) |
Payments of cash dividends |
|
(485,641 |
) |
|
|
(491,148 |
) |
Net cash provided by financing activities |
|
4,168,856 |
|
|
|
2,477,942 |
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
685,536 |
|
|
|
(386,239 |
) |
|
|
|
|
||||
Cash and cash equivalents at beginning of period |
|
2,406,608 |
|
|
|
2,190,793 |
|
|
|
|
|
||||
Cash and cash equivalents at end of period |
$ |
3,095,144 |
|
|
$ |
1,804,554 |
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES: |
|
|
|
||||
Cash paid during the period for: |
|
|
|
||||
Interest |
$ |
2,292,979 |
|
|
$ |
2,493,826 |
|
Taxes |
$ |
537,759 |
|
|
$ |
387,747 |
|
|
|
|
|
||||
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/20250724170317/en/
Contacts
Joe B. Adams, III
Chief Financial Officer
(205) 221-8866
