Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCID: PCLB), today announced the Company’s second quarter results of operations.
- For the three months ended June 30, 2026, Pinnacle’s basic/diluted earnings per share was $1.14 as compared to $1.11 per share for the three months ended June 30, 2025. Net income for the three months ended June 30, 2026 was $1,027,000 as compared to $984,000 for the three months ended June 30, 2025.
- For the six months ended June 30, 2026, Pinnacle’s basic/diluted earnings per share was $2.35 as compared to $2.22 per share for the six months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $2,107,000 as compared to $2,002,000 for the six months ended June 30, 2025.
- Included in net income for both the three and six months ended June 30, 2026 was a loss of $268,000 in the sale of available for sale securities. The proceeds from the sale of these available for sale securities were used to purchase higher yielding securities with a shorter average duration.
- For the three and six months ended June 30, 2026, return on average assets was 1.06%, and 1.12%, respectively, compared to 1.11% and 1.13%, respectively, in the comparable 2025 period.
The Company’s net interest margin was 3.20% and 3.21% for the three and six months ended June 30, 2026, respectively, as compared to 3.13% and 3.16% for the three and six months ended June 30, 2025.
At June 30, 2026, the Company’s allowance for loan losses as a percent of total loans was 1.48%, compared to 1.52% at December 31, 2025. There were $21,000 and $22,000 in nonperforming assets as of June 30, 2026 and December 31, 2025, respectively.
Pinnacle Bank was classified as “well capitalized” at June 30, 2026. All capital ratios are significantly higher than the requirements for a well-capitalized institution. As of June 30, 2026, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 20.01%. As of June 30, 2026, its total capital ratio was 20.89%, and its Tier 1 leverage ratio was 11.30%.
Dividends of $.27 and $.54 per share were paid to shareholders during the three and six months ended for both June 30, 2026 and 2025.
Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at June 30, 2026, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 99.69% 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, excluding brokered deposits, at June 30, 2026 increased approximately $17.1 million, or 5%, as compared to December 31, 2025.
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 $23 million as of June 30, 2026 as compared to $22.8 million as of December 31, 2025. Although these unrealized losses recorded as of June 30, 2026 and 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. 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, |
2026 2025 | Net income $ 1,027,000 $ 984,000 | Basic and diluted earnings per share $ 1.14 $ 1.11 | Performance ratios (annualized): | Return on average assets 1.06 % 1.11 % | Return on average equity (excluding OCI) 8.62 % 9.11 % | Interest rate spread 2.60 % 2.56 % | Net interest margin 3.20 % 3.13 % | Operating cost to assets 2.21 % 2.37 % | Weighted average basic and diluted shares outstanding 898,336 898,512 | Dividends per share $ 0.27 $ 0.27 | Provision for loan losses $ - $ - |
Six Months Ended June 30, |
2026 2025 | Net income $ 2,107,000 $ 2,002,000 | Basic and diluted earnings per share $ 2.35 $ 2.22 | Performance ratios (annualized): | Return on average assets 1.12 % 1.13 % | Return on average equity (excluding OCI) 9.13 % 9.33 % | Interest rate spread 2.62 % 2.61 % | Net interest margin 3.21 % 3.16 % | Operating cost to assets 2.27 % 2.32 % | Weighted average basic and diluted shares outstanding 898,336 900,452 | Dividends per share $ 0.54 $ 0.54 | Provision for loan losses $ - $ - |
(Audited) |
June 30, 2026 December 31, 2025 | Total assets $ 385,422,000 $ 364,232,000 | Loans receivable, net $ 134,055,000 $ 130,849,000 | Deposits $ 351,602,000 $ 331,496,000 | Brokered CD’s included in deposits $ 23,985,000 $ 20,983,000 | Total stockholders’ equity $ 24,004,000 $ 22,646,000 | Book value per share $ 26.72 $ 25.21 | Book value per share (excluding OCI) $ 52.00 $ 50.19 | Total average stockholders’ equity to assets ratio (excluding OCI) 12.22 % 12.20 % | Asset quality ratios: | Nonperforming loans as a percent of total loans .02 % .02 % | Nonperforming assets as a percent of total loans .02 % .02 % | Allowance for loan losses as a percent of total loans 1.48 % 1.52 % |
FINANCIAL INFORMATION | PINNACLE BANCSHARES, INC. | CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
(Unaudited) (Audited) |
June 30, December 31, |
2026 2025 | Assets | Cash and cash equivalents $ 3,116,663 2,763,958 | Interest bearing deposits in banks 29,291,541 21,122,646 | Securities available for sale 185,573,447 176,921,364 | Restricted equity securities 969,600 957,100 | Loans 136,067,029 132,861,644 | Less Allowance for loan losses 2,012,179 2,013,072 | Loans, net 134,054,850 130,848,572 | Premises and equipment, net 8,314,167 7,801,667 | Right-of-use lease assets – operating 956,473 981,519 | Goodwill 306,488 306,488 | Bank owned life insurance 11,754,018 11,498,037 | Accrued interest receivable 2,072,132 2,072,700 | Deferred tax assets, net 7,762,855 7,548,292 | Other assets 1,249,709 1,409,158 | Total assets $ 385,421,943 $ 364,231,501 | Liabilities and Stockholders’ Equity | Deposits | Noninterest-bearing $ 99,153,642 $ 92,867,774 | Interest-bearing 252,448,426 238,627,990 | Total deposits 351,602,068 331,495,764 | Subordinated debentures 3,093,000 3,093,000 | Other borrowings 4,000,000 4,000,000 | Accrued interest payable 723,505 781,290 | Operating lease liabilities 956,473 981,519 | Other liabilities 1,043,031 1,233,844 | Total liabilities 361,418,077 341,585,417 | Stockholders’ equity | Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 898,336 shares outstanding 18,723 18,723 | Additional paid‑in capital 8,923,223 8,923,223 | Treasury stock (973,977 shares) (15,929,095 ) (15,929,095 ) | Retained earnings 53,697,297 52,075,496 | Accumulated other comprehensive loss, net of tax (22,706,282 ) (22,442,263 ) | Total stockholders’ equity 24,003,866 22,646,084 | Total liabilities and stockholders’ equity $ 385,421,943 $ 346,231,501 |
PINNACLE BANCSHARES, INC. | UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
Three Months Ended Six Months Ended |
June 30, June 30, |
2026 2025 2026 2025 | Interest income | Loans, including fees $ 2,377,009 $ 2,206,111 $ 4,689,450 $ 4,496,357 | Securities available for sale 1,642,304 1,428,563 3,199,012 2,798,043 | Other interest 216,943 257,989 450,678 492,729 | Total interest income 4,236,256 3,892,663 8,339,140 7,787,129 | Interest expense | Deposits 1,130,042 982,155 2,158,525 1,905,824 | Borrowings and repurchase agreements 45,556 49,769 94,778 112,114 | Subordinated debentures 38,000 37,400 76,000 76,450 | Total interest expense 1,213,598 1,069,324 2,329,302 2,094,388 | Net interest income 3,022,658 2,823,339 6,009,837 5,692,741 | Provision for loan losses 15,000 - 30,000 - | Net interest income after provision for loan losses 3,007,658 2,823,339 5,979,837 5,692,741 | Other income | Fees and service charges on deposit accounts 426,320 403,046 826,771 791,689 | Bank owned life insurance 127,294 115,500 255,980 232,721 | Loss on sale of securities available for sale (267,613 ) - (267,613 ) - | Mortgage fee income 8,804 5,330 19,377 5,330 | Total other income 294,805 523,876 834,515 1,029,740 | Other expense: | Salaries and employee benefits 1,169,021 1,200,564 2,470,478 2,409,512 | Occupancy expense 284,763 306,971 609,012 621,063 | Marketing and professional expense 112,423 68,345 189,948 123,843 | Other operating expenses 538,777 525,652 1,021,568 1,030,584 | Total other expenses 2,104,984 2,101,532 4,291,006 4,185,002 | Income before income taxes 1,197,479 1,245,683 2,523,346 2,537,479 | Income tax expense 170,828 261,329 416,444 535,138 | Net income $ 1,026,651 $ 984,354 $ 2,106,902 $ 2,002,341 | Cash dividend per share $ 0.27 $ 0.27 $ 0.54 $ 0.54 | Basic and diluted earnings per share $ 1.14 $ 1.10 $ 2.35 $ 2.22 | Weighted –average basic and diluted shares outstanding 898,336 898,512 898,336 900,452 |
PINNACLE BANCSHARES, INC. | UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | Six Months Ended June 30, 2026 and 2025 |
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 |
|
Accumulated |
Additional Other Total |
Common Stock Paid-in Treasury Retained Comprehensive Stockholders’ |
Shares Amount Capital Stock Earnings Loss Equity | Balance December 31, 2025 1,872,313 $ 18,723 $ 8,923,223 $ (15,929,095 ) $ 52,075,496 $ (22,442,263 ) $ 22,646,084 | Net income - - - - 2,106,902 - 2,106,902 | Cash dividends declared ($.54 per share) - - - - (485,101 ) - (485,101 ) | Other comprehensive loss - - - - - (264,019 ) (264,019 ) | Balance June 30, 2026 1,872,313 $ 18,723 $ 8,923,223 $ (15,929,095 ) $ 53,697,297 $ (22,706,282 ) $ 24,003,866 |
PINNACLE BANCSHARES, INC. | UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
For the Six Months Ended |
June 30, |
2026 2025 | OPERATING ACTIVITIES: | Net income $ 2,106,902 $ 2,002,341 | Adjustments to reconcile net income to net cash provided by operating activities: | Depreciation 242,023 242,651 | Provision for loan losses 30,000 - | Loss on sale of securities available for sale 267,613 - | Net investment (accretion) amortization expense (23,374 ) 77,948 | Amortization of discount of solar income tax credit (82,831 ) - | Bank owned life insurance (255,980 ) (232,721 ) | Decrease in accrued interest receivable 568 73,952 | Decrease in accrued interest payable (57,785 ) (198,591 ) | Net other operating activities (275,536 ) (270,406 ) | Net cash provided by operating activities 1,951,600 1,695,174 | INVESTING ACTIVITIES: | Net (increase) decrease in loans (3,236,278 ) 3,283,044 | Net increase in interest-bearing deposits in other banks (8,168,895 ) (4,934,519 ) | Purchase of securities available for sale (25,020,356 ) (8,074,614 ) | Proceeds from sale of securities available for sale 7,982,921 - | Proceeds from maturing, sale and payments received on securities available for sale 7,762,127 4,602,696 | Net purchase of restricted equity securities (12,500 ) (2,700 ) | Purchase of premises and equipment (754,523 ) (49,401 ) | Proceeds from income tax refund associated with federal solar tax credit 1,902,849 - | Purchase of federal solar tax credit (1,675,443 ) - | Net cash used in investing activities (21,220,098 ) (5,175,494 ) | FINANCING ACTIVITIES: | Net increase in deposits 20,106,304 9,885,577 | Proceeds from other borrowings 2,000,000 - | Repayments of other borrowings (2,000,000 ) (5,000,000 ) | Purchase of treasury stock - (231,080 ) | Payments of cash dividends (485,101 ) (485,641 ) | Net cash provided by financing activities 19,621,203 4,168,856 | Net increase in cash and cash equivalents 352,705 685,536 | Cash and cash equivalents at beginning of period 2,763,958 2,406,608 | Cash and cash equivalents at end of period $ 3,116,663 $ 3,095,144 | SUPPLEMENTAL DISCLOSURES: | Cash paid during the period for: | Interest $ 2,387,087 $ 2,292,979 | Taxes $ 545,985 $ 537,759 | OTHER NONCASH TRANSACTIONS | Real estate acquired through foreclosure $ - $ - | Internally financed sales of other real estate owned $ - $ - |
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