Pinnacle Bancshares Announces Results for Year Ended and Fourth Quarter December 31, 2025
MWN-AI** Summary
Pinnacle Bancshares, Inc. (OTCID: PCLB) reported increased financial performance for the year and fourth quarter ending December 31, 2025. For Q4 2025, the bank posted a net income of $1,118,000, marking a rise from $1,038,000 in Q4 2024, resulting in basic and diluted earnings per share (EPS) of $1.24, up from $1.15. For the full year 2025, net income reached $4,189,000, compared to $4,066,000 in 2024, with EPS also improving from $4.48 to $4.66.
The bank's net interest margin was reported at 3.27% for Q4 2025 and 3.20% for the entire year, both slightly up from the previous year. Despite challenges from rising inflation and increased interest rates, which had negatively impacted the securities market, Pinnacle's total assets increased to $363.7 million, up from $346.5 million a year prior.
Pinnacle maintained a strong position with a well-capitalized status; as of December 31, 2025, its common equity Tier 1 and Tier 1 risk-based capital ratios were both 19.95%, exceeding regulatory requirements. The bank's allowance for loan losses decreased to 1.52% of total loans, down from 1.78% year-over-year, indicating improved asset quality with minimal nonperforming assets.
Pinnacle also reported a solid liquidity position with a low loan-to-deposit ratio, indicating they are well-prepared for unexpected market shifts. In addition, the bank issued dividends of $0.27 per share for the fourth quarter and $1.08 for the year, consistent with prior distributions. Overall, Pinnacle Bancshares demonstrated resilience amidst economic pressures, capitalizing on strategic management and operational efficiency for continued growth.
MWN-AI** Analysis
Pinnacle Bancshares, Inc. (OTCID: PCLB) recently announced its financial results for the year ended December 31, 2025, showcasing a strong performance despite challenges posed by rising interest rates and inflation. The bank reported an increase in both quarterly and annual earnings per share (EPS), with the latest quarterly EPS at $1.24 and annual EPS reaching $4.66, compared to $1.15 and $4.48 the previous year, respectively. This positive trend underscores the resilience of Pinnacle’s business model.
The bank’s net income for Q4 2025 was $1,118,000, reflecting a year-over-year increase. Furthermore, a notable return on average assets of 1.24% and a robust net interest margin of 3.27% suggest effective asset utilization and yield generation amidst a challenging interest rate environment.
Management has indicated a prudent approach to maintaining liquidity with a low loan-to-deposit ratio and sufficient capital reserves, evidenced by capital ratios well above the “well capitalized” benchmark. The allowance for loan losses has decreased to 1.52%, implying improved asset quality and lower perceived risk in the loan portfolio.
Despite an accumulated other comprehensive loss on securities of approximately $22.7 million due to increased interest rates, management anticipates these losses to be temporary, positioning the bank favorably for future recovery as interest rates stabilize.
Investors should closely monitor Pinnacle’s ongoing strategies for growth, particularly in managing interest rate exposure and loan quality. The steady dividend payments, consistent with prior years, further reinforce the company's commitment to returning value to shareholders.
In conclusion, Pinnacle Bancshares presents a cautiously optimistic investment opportunity, offering a blend of stability and reasonable growth prospects. Continued monitoring of market conditions and the bank's operational strategy will be essential for investors considering entering or maintaining a position in PCLB.
**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. (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; 1,872,313 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 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/
Joe B. Adams, III
Chief Financial Officer
(205) 221-8866
FAQ**
How does Pinnacle Bancshares Inc. PCLB plan to address the impact of rising interest rates on its portfolio, given it has recorded significant unrealized losses on securities available for sale?
What strategies is Pinnacle Bancshares Inc. PCLB implementing to maintain its status as a "well capitalized" institution in light of increasing operating costs observed in the latest financial results?
With Pinnacle Bancshares Inc. PCLB showing increased net income and dividends, what plans does management have to further enhance shareholder value while navigating the current economic uncertainties?
How does Pinnacle Bancshares Inc. PCLB intend to manage its loan loss provisions, especially considering the fluctuations in the allowance for loan losses reported in its recent financial statements?
**MWN-AI FAQ is based on asking OpenAI questions about Pinnacle Bancshares Inc. (OTC: PCLB).
NASDAQ: PCLB
PCLB Trading
0.0% G/L:
$40 Last:
401 Volume:
$40 Open:
