JASPER, Ala., January 28, 2025--(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
