Pinnacle Bancshares Announces Results for Third Quarter Ended September 30, 2025
MWN-AI** Summary
Pinnacle Bancshares, Inc. (OTCBB: PCLB) reported its third-quarter financial results for the period ended September 30, 2025, showcasing steady performance amid challenging economic conditions. The company recorded net income of $1,069,000, slightly up from $1,057,000 in the same period last year. Basic and diluted earnings per share rose to $1.19 from $1.16 year-over-year. For the nine months ended September 30, 2025, net income was $3,071,000, reflecting growth from $3,027,000 in 2024 and translating to earnings per share of $3.41, compared to $3.33 last year.
Return on average assets for the quarter was 1.18%, a slight decrease from 1.20% in the prior year, while the net interest margin decreased to 3.20%, down from 3.24% in 2024. Despite these declines, Pinnacle remains well-capitalized with a Tier 1 capital ratio of 20.32% and total capital ratio of 21.39%. The bank’s loan loss allowance was stable at 1.77%.
Pinnacle Bank reported a $7.7 million increase in total deposits, or 2.4%, compared to the end of 2024. However, the bank has acknowledged challenges presented by inflation and rising interest rates, which have adversely impacted the securities market, leading to an accumulated other comprehensive loss of approximately $23.8 million as of September 30, 2025.
Management expressed confidence in the company’s liquidity and capital stability, bolstered by a favorable loan-to-deposit ratio and access to additional funding sources. Importantly, the company declared dividends of $0.27 per share for the quarter and $0.81 per share for the nine-month period, reflecting consistency in shareholder returns. Overall, the results indicate Pinnacle’s resilience and strategic positioning in a fluctuating economic landscape.
MWN-AI** Analysis
Pinnacle Bancshares, Inc. (OTCBB: PCLB) reported its third quarter results for 2025, showcasing modest growth in earnings alongside a mixed picture of asset quality and financial metrics. With a net income of $1.069 million and earnings per share (EPS) of $1.19, both figures reflect slight improvements from the previous year, highlighting a stable performance trajectory in a challenging economic landscape.
However, it's crucial to note that while the year-over-year EPS growth appears positive, key performance indicators such as return on average assets (1.18%) and return on average equity (9.71%) saw slight declines relative to 2024 figures. The declining net interest margin (3.20% vs. 3.24% in Q3 2024) may signal pressures from rising interest rates, underscoring the need for strategic pricing of loans and deposits to maintain profitability.
Additionally, the bank's growing allowance for loan losses—a mere 1.77% of total loans—requires vigilance. The nonperforming assets have also increased to $112,000, which, while minimal, warrants monitoring to prevent potential asset quality deterioration.
Strategically, Pinnacle Bank's well-capitalized status and impressive capital ratios provide a buffer against economic fluctuations. The increase in deposits by $7.7 million (2.4% growth) hints at sustained franchise strength, which fuels liquidity and supports continued lending capabilities.
Investors should weigh these results against ongoing inflationary pressures, particularly as the bank reported an accumulated comprehensive loss on securities due to rising interest rates. Despite this, management believes losses are temporary, stemming from interest rate exposures rather than credit issues.
In conclusion, while Pinnacle Bancshares exhibits stable earnings growth, ongoing management of interest margins and asset quality will be critical going forward. Prospective investors might consider cautiously accumulating shares, particularly in light of a reliable dividend payout, while closely monitoring economic conditions that could influence performance.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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 | $ | - | $ | - |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251027496204/en/
Joe B. Adams, III
Chief Financial Officer
(205) 221-8866
FAQ**
How does Pinnacle Bancshares Inc. PCLB plan to address the accumulated other comprehensive loss on securities in light of rising interest rates and its projected impact on future financial performance?
Considering that Pinnacle Bancshares Inc. PCLB's net interest margin decreased slightly in the latest quarter, what strategies are being implemented to enhance profitability in the current interest rate environment?
With total deposits increasing by $7.7 million at Pinnacle Bancshares Inc. PCLB, what specific initiatives are being taken to boost customer retention and attract new clients in a competitive banking landscape?
As Pinnacle Bancshares Inc. PCLB is classified as "well capitalized," how does the management intend to leverage this position to capitalize on potential growth opportunities while maintaining sound financial practices?
**MWN-AI FAQ is based on asking OpenAI questions about Pinnacle Bancshares Inc. (OTC: PCLB).
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