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Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2024

1. Pinnacle's Q4 2024 EPS rose to $1.15 from $1.08 in 2023. 2. Net income for 2024 was $4,066,000, down from $4,480,000 in 2023. 3. Return on average assets was stable at 1.20%, down from 1.34% in 2023. 4. The net interest margin declined slightly to 3.17% from 3.32% year-over-year. 5. Accumulated other comprehensive loss on securities was $28.7 million in 2024.

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Why Neutral?

While earnings decreased slightly, EPS improved indicating stable performance. Historical drops in EPS like this previously had minimal market impact.

How important is it?

The article presents key earnings data vital for evaluating PCLB’s current performance. Performance metrics like EPS and comprehensive losses directly influence investor perception.

Why Short Term?

Market reaction may be immediate to earnings; however, long-term stability is in place. Similar earnings reports in the past showed short-lived effects.

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PCLB
JASPER, Ala.--(BUSINESS WIRE)--Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTCBB: PCLB), today announced Pinnacle’s results of operations for the fourth quarter and year ended December 31, 2024: For the three months ended December 31, 2024, Pinnacle’s basic/diluted earnings per share was $1.15 as compared to $1.08 per share for the three months ended December 31, 2023. Net income for the three months ended December 31, 2024 was $1,038,000 as compared to $981,000 for the three months ended December 31, 2023. For the year ended December 31, 2024, Pinnacle’s basic/diluted earnings per share was $4.48 as compared to $4.93 per share for the year ended December 31, 2023. Pinnacle reported net income of $4,066,000 for the year ended December 31, 2024 as compared to $4,480,000, for the year ended December 31, 2023. For the three and nine months ended December 31, 2024, return on average assets was 1.20%, and 1.18%, respectively, compared to 1.18% and 1.34%, respectively, in the comparable 2023 period. Company’s net interest margin was 3.17% and 3.18%, respectively for the three months and year ended December 31, 2024, respectively, compared to 3.18% and 3.32% for both the three months and year ended December 31, 2023, respectively. At December 31, 2024, Pinnacle’s allowance for loan losses as a percent of total loans was 1.78%, compared to 1.96% at December 31, 2023. Net charge-offs were $107,000 during 2024 and $102,000 for 2023. There were no nonperforming assets at both December 31, 2024 and 2023. Pinnacle was classified as “well capitalized” at the end of 2024. All capital ratios are higher than the requirements for a well-capitalized institution. As of December 31, 2024, the Bank’s common equity Tier 1 capital and Tier 1 risk-based capital ratios were each 18.97%. As of December 31, 2024, its total capital ratio was 20.05%, and its Tier 1 leverage ratio was 11.09%. Dividends of $.27 and $1.08 per share were paid to shareholders during the three months and year ended for both December 31, 2024 and 2023. Management believes that the Company has sufficient liquidity through its low loan to deposit ratio at December 31, 2024, as well as available funding from outside sources. Our net funding availability, as a percentage of our franchise funding, is 102.67% 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, 2024 increased $6.8 million, or 2.2%, as compared to December 31, 2023. 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 since 2022, the Company has recorded an accumulated other comprehensive loss on securities available for sale of approximately $28.7 million and $26.7 million as of December 31, 2024 and 2023, respectively. Although these unrealized losses recorded as of 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. 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, 2024 2023 Net income $ 1,038,000 $ 981,000 Basic and diluted earnings per share $ 1.15 $ 1.08 Performance ratios (annualized): Return on average assets 1.20 % 1.18 % Return on average equity (excluding OCI) 9.90 % 10.07 % Interest rate spread 2.64 % 2.70 % Net interest margin 3.17 % 3.18 % Operating cost to assets 2.28 % 2.40 % Weighted average basic and diluted shares outstanding 906,730 909,534 Dividends per share $ 0.27 $ 0.27 Provision for loan losses $ - $ - Years Ended December 31, 2024 2023 Net income $ 4,066,000 $ 4,480,000 Basic and diluted earnings per share $ 4.48 $ 4.93 Performance ratios (annualized): Return on average assets 1.18 % 1.34 % Return on average equity (excluding OCI) 9.96 % 11.89 % Interest rate spread 2.64 % 2.98 % Net interest margin 3.18 % 3.32 % Operating cost to assets 2.34 % 2.31 % Weighted average basic and diluted shares outstanding 908,525 909,534 Dividends per share $ 1.08 $ 1.08 Provision for loan losses $ - $ -   (Audited) December 31, 2024 December 31, 2023 Total assets $ 346,666,000 $ 342,578,000 Loans receivable, net $ 129,437,000 $ 122,973,000 Deposits $ 318,170,000 $ 311,339,000 Brokered CD’s included in deposits $ 14,917,000 $ 11,907,000 Total stockholders’ equity $ 13,861,000 $ 12,787,000 Book value per share $ 15.30 $ 14.06 Book value per share (excluding OCI) $ 46.48 $ 43.02 Average Stockholders’ equity to assets ratio (excluding OCI) 11.80 % 11.25 % 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 1.78 % 1.96 % FINANCIAL INFORMATION PINNACLE BANCSHARES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION   (Unaudited) (Audited) December 31, December 31, 2024 2023 Assets Cash and cash equivalents $ 2,406,608 $ 2,190,793 Interest bearing deposits in banks 17,830,073 19,518,942 Securities available for sale 163,442,222 165,520,025 Restricted equity securities 954,300 836,200 Loans 131,789,490 125,433,112 Less Allowance for loan losses 2,352,415 2,459,372 Loans, net 129,437,075 122,973,740 Premises and equipment, net 8,198,615 8,421,289 Right-of-use lease assets – operating 260,248 302,171 Goodwill 306,488 306,488 Bank owned life insurance 11,024,493 10,601,839 Accrued interest receivable 2,107,431 2,107,189 Deferred tax assets, net 9,759,285 8,951,799 Other assets 938,828 847,912 Total assets $ 346,665,666 $ 342,578,387 Liabilities and Stockholders’ Equity Deposits Noninterest-bearing $ 89,120,999 $ 89,518,619 Interest-bearing 229,049,151 221,820,527 Total deposits 318,170,150 311,339,146 Subordinated debentures 3,093,000 3,093,000 Other borrowings 9,000,000 12.500,000 Accrued interest payable 874,774 1,392,273 Operating lease liabilities 260,248 302,171 Other liabilities 1,406,122 1,165,256 Total liabilities 332,804,294 329,791,846 Stockholders’ equity Common stock, par value $.01 per share; 2,400,000 authorized; 1,872,313 issued; 905,786 and 909,534 shares outstanding, respectively 18,723 18,723 Additional paid‑in capital 8,923,223 8,923,223 Treasury stock 966,527 and 962,779 shares at cost, respectively (15,698,015 ) (15,588,799 ) Retained earnings 48,857,057 45,772,256 Accumulated other comprehensive loss, net of tax (28,239,616 ) (26,338,862 ) Total stockholders’ equity 13,861,372 12,786,541 Total liabilities and stockholders’ equity $ 346,665,666 $ 342,578,387 PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME       Three Months Ended Years Ended   December 31, December 31,   2024 2023 2024 2023 Interest income         Loans, including fees   $ 2,235,841   $ 2,003,295   $ 8,597,229   $ 7,527,937 Securities available for sale   1,378,965   1,347,416   5,369,120   5,504,358 Other interest   177,504   266,587   1,221,766   840,501 Total interest income   3,792,310   3,617,298   15,188,115   13,872,796         Interest expense         Deposits   876,187   692,818   3,205,768   1,859,046 Borrowings   110,926   148,910   681,875   438,088 Subordinated debentures   39,050   39,050   156,200   156,200 Total interest expense   1,026,163   880,778   4,043,843   2,453,334         Net interest income   2,766,147   2,736,520   11,144,272   11,419,462 Provision for loan losses   -   -   -   - Net interest income after provision for loan losses   2,766,147   2,736,520   11,144,272   11,419,462         Other income         Fees and service charges on deposit accounts   434,913   426,111   1,713,187   1,681,484 Service fee income, net   -   746   743   2,910 Bank owned life insurance   105,982   101,087   422,654   395,505 Mortgage fee income   -   -   6,167   12,113 Total other income   540,895   527,944   2,142,751   2,092,012         Other expense:         Salaries and employee benefits   1,143,327   1,041,716   4,611,450   4,382,725 Occupancy expense   259,798   271,628   1,196,712   943,058 Marketing and professional expense   74,751   131,811   298,614   338,524 Other operating expenses   496,104   541,429   2,004,334   2,085,710 Total other expenses   1,973,980   1,986,584   8,111,110   7,750,017         Income before income taxes   1,133,062   1,277,880   5,175,913   5,761,457         Income tax expense   294,715   296,737   1,110,098   1,281,278         Net income   $ 1,038,347   $ 981,143   $ 4,065,815   $ 4,480,179         Cash dividend per share   $ 0.27   $ 0.27   $ 1.08   $ 1.08         Basic and diluted earnings per share   $ 1.15   $ 1.08   $ 4.48   $ 4.93         Weighted –average basic and diluted shares outstanding   906,730   909,534   908,525   909,534 PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Years Ended December 31, 2024 and 2023 Accumulated Additional Other Total Common Stock Paid-in Treasury Retained Comprehensive Stockholders’ Shares Amount Capital Stock Earnings Loss Equity Balance December 31, 2022 1,872,313 $ 18,723 $ 8,923,223 $ (15,588,799 ) $ 42,274,372 $ (29,889,603 ) $ 5,737,916 Net income - - - 4,480,179 - 4,480,179 Cash dividends declared ($1.08 per share) - - - - (982,295 ) - (982,295 ) Other comprehensive income - - - - - 3,550,741 3,550,741 Balance December 31, 2023 1,872,313 $ 18,723 $ 8,923,223 $ (15,588,799 ) $ 45,772,256 $ (26,338,862 ) $ 12,786,541 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 PINNACLE BANCSHARES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   For the Years Ended December 31, 2024 2023 OPERATING ACTIVITIES: Net income $ 4,065,815 $ 4,480,179 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 522,575 418,815 Net investment amortization expense 185,926 180,496 Net increase in bank owned life insurance (422,654 ) (395,505 ) Decrease in accrued interest receivable (242 ) (36,292 ) Increase (decrease) in accrued interest payable (517,499 ) 1,280,620 Net other operating activities 94,019 535,306 Net cash provided by operating activities 3,927,940 6,463,619 INVESTING ACTIVITIES: Net increase in loans (6,463,335 ) (7,018,152 ) Net (increase) decrease in interest bearing deposits in other banks 1,688,869 (7,332,960 ) Purchase of securities available for sale (7,414,432 ) - Proceeds from maturing, calls, and payments received on securities available for sale 6,654,000 9,712,596 Net purchase of restricted equity securities (118,100 ) (62,600 ) Purchase of premises and equipment (299,901 ) (1,913,473 ) Net cash used in investing activities (5,952,899 ) (6,614,589 ) FINANCING ACTIVITIES: Net increase (decrease) in deposits 6,831,004 (10,918,880 ) Proceeds from other borrowings 16,500,000 16,100,000 Repayments of other borrowings (20,000,000 ) (3,600,000 ) Purchase of treasury stock (109,216 ) - Payments of cash dividends (981,014 ) (982,295 ) Net cash provided by financing activities 2,240,744 598,825 Net increase in cash and cash equivalents 215,815 447,855 Cash and cash equivalents at beginning of period 2,190,793 1,742,938 Cash and cash equivalents at end of period $ 2,406,608 $ 2,190,793 SUPPLEMENTAL DISCLOSURES: Cash paid during the period for: Interest $ 4,561,342 $ 1,172,714 Taxes $ 1,022,747 $ 945,928 OTHER NONCASH TRANSACTIONS Real estate acquired through foreclosure $ - $ - Internally financed sales of other real estate owned $ - $ -

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