Pinnacle Bancshares Announces Results for Second Quarter Ended June 30, 2026

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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