Pinnacle Bankshares Corporation Announces Record High Quarterly Earnings
ALTAVISTA, Va., April 28, 2026 (GLOBE NEWSWIRE) -- Net income for Pinnacle Bankshares Corporation (OTCQX:PPBN), the one-bank holding company (“Pinnacle” or the “Company”) for First National Bank (the “Bank”), was $3,061,000, or $1.39 per basic and diluted share, for the quarter ended March 31, 2026 compared to net income of $2,261,000, or $1.02 per basic and diluted share, for the same period of 2025. Quarterly consolidated results are unaudited.
First Quarter 2026 Highlights
Income Statement (Comparisons are to the first quarter of 2025)
- Net Income was $3,061,000 producing a Return on Assets of 1.14%.
- Net Interest Income increased 9% due primarily to higher average loan volume and increased yields on earning assets. Net Interest Margin increased 20 basis points to 4.12%.
- Provision for Credit Losses was only $78,000 as Asset Quality remains strong with low Nonperforming Loans and no Other Real Estate Owned (OREO).
- Noninterest Income increased almost 10% driven by higher service charges on deposit accounts, bank-owned life insurance income, commissions on investment and insurance products sales, and loan fee income.
-
Noninterest Expense increased less than 1% as a result of slightly higher salaries and benefits and other operating expenses.
Balance Sheet (Comparisons are to December 31, 2025)
- Total Assets increased $25.1 million, or 2%, to $1.09 billion, which was driven by increased Deposits.
- Loans increased $1.5 million, or less than 1%, to $741.8 million.
- Securities increased $20.9 million, or 14%, to $173.4 million.
- Deposits increased $27.1 million, or 3%, to $998.4 million.
-
Our Liquidity Ratio was strong at 32.5% (13.6% excluding Available for Sale Securities).
Capital Ratios & Stock Price (Comparisons are to December 31, 2025)
- Capital levels were slightly lower as the Bank’s Leverage Ratio decreased to 8.63% and the Total Risk-Based Capital Ratio decreased to 13.06% due to Pinnacle’s repurchase of 70,710 outstanding shares.
- Our Stock Price ended the quarter at $46.67 per share, based on the last trade, which is an increase of $1.17, or 2.6%.
Net Income and Profitability
Net income generated during the first quarter of 2026 represents an $800,000, or 35%, increase as compared to the same time period of the prior year, which was driven by higher net interest income and noninterest income partially offset by higher noninterest expense and higher provision for credit losses.
Profitability as measured by the Company’s return on average assets (“ROA”) was 1.14% for the first quarter of 2026, which is a 26 basis points increase from the 0.88% produced in the first quarter of 2025. Return on average equity (“ROE”) increased in the first quarter of 2026 to 13.80%, compared to 11.31% for the same time period of the prior year.
“We are very pleased that Pinnacle has followed 2025’s outstanding performance with a great start to the new year,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. He further commented, “Our Company remains in a sound financial position with ample liquidity and strong asset quality, which we believe are key factors for continued success.”
Net Interest Income and Net Interest Margin
The Company generated $10,357,000 in net interest income for the first quarter of 2026, which represents an $877,000, or 9%, increase as compared to the first quarter of 2025 with net interest margin increasing 20 basis points to 4.12%. Interest income increased $687,000, or approximately 5.6%, to $13,062,000 due to an increase in average loan volume as well as increased yield on earning assets, which improved 8 basis points to 5.19%. Interest expense decreased $191,000, or 6.6%, to $2,705,000 as the cost to fund earning assets decreased by 12 basis points to 1.07%.
Reserves for Credit Losses and Asset Quality
The provision for credit losses was $78,000 for the first quarter of 2026, which is a $41,000 increase compared to the same period of the prior year. Despite the increase, provision expense remains minimal as a result of continued strong asset quality.
The allowance for credit losses was $5,239,000 as of March 31, 2026, representing 0.71% of total loans outstanding. In comparison, the allowance was $5,235,000 as of December 31, 2025, which was also 0.71% of total loans outstanding. The non-performing loans to total loans ratio was 0.20% as of March 31, 2026, and year-end 2025. Allowance coverage of non-performing loans was 354% as of the end of the first quarter of 2026 compared to 349% at year-end 2025. Management views the allowance balance as being sufficient to offset potential future losses associated with problem loans.
Noninterest Income and Expense
Noninterest income for the first quarter of 2026 was $1,912,000, representing a $167,000, or 9.6%, increase compared to first quarter of 2025. The improvement was mainly due to a $77,000 increase in service charges on deposit accounts, a $38,000 increase in bank-owned life insurance, and a $35,000 increase in commissions from sales of investment and insurance products.
Noninterest expense for the first quarter of 2026 was $8,433,000 representing a $73,000, or less than 1%, increase compared to the first quarter of 2025. Slightly higher operating costs associated with growth of the Company included a $107,000, or 2%, increase in salaries and benefits and smaller increases in advertising, consulting, and franchise tax expenses.
The Balance Sheet and Liquidity
Total assets as of March 31, 2026 were $1,090,346,000, up $25,117,000, or 2%, from $1,065,228,000 as of December 31, 2025. The principal components of the Company’s assets as of March 31, 2026 were $741,858,000 in total loans, $173,397,000 in securities, and $124,033,000 in cash and cash equivalents. During the first quarter of 2026, total loans increased $1,530,000, or less than 1%, from $740,328,000 as of December 31, 2025, while securities increased $20,945,000, or approximately 14%, from $152,452,000.
The majority of the Company’s securities portfolio is relatively short-term in nature with 36% invested in U.S. Treasury Securities with an average maturity of less than one year. All of the Company’s securities were classified as available for sale as of March 31, 2026, which provides transparency regarding unrealized losses. Unrealized losses associated with the securities portfolio totaled $8,638,000 as of March 31, 2026 or 5% of book value, approximately equal to the 5% of book value as of December 31, 2025.
Cash and cash equivalents increased $1,772,000, or approximately 1%, to $124,033,000 as of March 31, 2026 from $122,261,000 as of December 31, 2025. The Company had a strong liquidity ratio of 32.5% as of quarter end. The liquidity ratio, excluding the available for sale securities portfolio, was 13.6%, providing the opportunity to sell excess funds at an attractive federal funds rate. The Company has access to multiple liquidity lines of credit through correspondent banks and the Federal Home Loan Bank. None of these contingency funding sources were utilized over the past year.
Total liabilities as of March 31, 2026 were $1,002,274,000 up $26,454,000, or 3%, from $975,820,000 as of December 31, 2025 as deposits increased $27,148,000, or 3%, to $998,457,000 during the first quarter of 2026. The number of deposit accounts grew by 1.75% during the same time period. The Bank retains and acquires customer relationships through providing personalized service and utilization of a community bank approach while capitalizing on market disruption caused by further bank consolidation and large national bank branch closures.
Total stockholders’ equity as of March 31, 2026 was $88,072,000, a decrease of $1,336,000, or 1.5%, compared to year-end 2025 and consisted primarily of $79,885,000 in retained earnings. The decrease in equity during the quarter was primarily due to a repurchase of 70,710 shares of the Company’s stock, dividends paid, and a decrease in the fair value of the securities portfolio, partially offset by net income earned. Both the Company and Bank remain “well capitalized” per all regulatory definitions.
Annual Meeting of Shareholders
As a reminder, Pinnacle Bankshares Corporation’s Annual Meeting of Shareholders will be held at 11:00 AM Eastern Time on Tuesday, May 12, 2026, at Virginia Technical Institute located at 201 Ogden Road, Altavista VA 24517. Please plan to join us as we discuss the Company’s performance and direction moving forward.
Company Information
Pinnacle is a locally managed community banking organization serving Central and Southern Virginia. The one-bank holding company of First National Bank serves market areas consisting primarily of all or portions of the Counties of Amherst, Bedford, Campbell, Halifax, and Pittsylvania, and the Cities of Charlottesville, Danville, and Lynchburg. The Company has a total of nineteen branches with one branch in Amherst County within the Town of Amherst; two branches in Bedford County; five branches in Campbell County, including two within the Town of Altavista where the Bank was founded; one branch in the City of Charlottesville; three branches in the City of Danville; one branch and a commercial loan production office in Halifax County within the Town of South Boston; three branches in the City of Lynchburg; and three branches in Pittsylvania County, including one within the Town of Chatham. In 2026, First National Bank is celebrating its 118th year of operation.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Any statements contained herein that are not historical facts are forward-looking and are based on current assumptions and analysis by the Company. These forward-looking statements, including statements made in Mr. Hall’s quotes may include, but are not limited to, statements regarding the credit quality of our asset portfolio in future periods, the expected losses of nonperforming loans in future periods, future returns and capital accretion, our cost of funds, the maintenance of our net interest margin, future operating results and business performance and our growth initiatives. Although we believe our plans and expectations reflected in these forward-looking statements are reasonable, our ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and we can give no assurance that these plans or expectations will be achieved. Factors that could cause actual results to differ materially from management's expectations include, but are not limited to: changes in consumer spending and saving habits that may occur, including increased inflation; changes in general business, economic, and market conditions; attracting, hiring, training, motivating, and retaining qualified employees; changes in fiscal and monetary policies, and laws and regulations; changes in interest rates, inflation rates, deposit flows, loan demand, and real estate values; changes in the quality or composition of the Company’s loan portfolio and the value of the collateral securing loans; changes in macroeconomic trends and uncertainty, including liquidity concerns at other financial institutions, and the potential for local and/or global economic recession; changes in demand for financial services in Pinnacle’s market areas; increased competition from both banks and non-banks in Pinnacle’s market areas; a deterioration in credit quality and/or a reduced demand for, or supply of, credit; increased information security risk, including cyber security risk, which may lead to potential business disruptions or financial losses; volatility in the securities markets generally, including in the value of securities in the Company’s securities portfolio or in the market price of Pinnacle common stock specifically; and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and you should not place undue reliance on such statements, which reflect our views as of the date of this release.
Financial Highlights are Presented Hereafter
| Pinnacle Bankshares Corporation | |||||||||
|
Selected Financial Highlights (3/31/2026 and 3/31/2025 results unaudited, 12/31/2025 results audited) | |||||||||
| (In thousands, except ratios, share, and per share data) | |||||||||
| 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
| Income Statement Highlights | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Interest Income | $ | 13,062 | $ | 13,129 | $ | 12,375 | |||
| Interest Expense | 2,705 | 2,778 | 2,896 | ||||||
| Net Interest Income | 10,357 | 10,351 | 9,480 | ||||||
| Provision for Credit Losses | 78 | 169 | 37 | ||||||
| Noninterest Income | 1,912 | 1,918 | 1,745 | ||||||
| Noninterest Expense | 8,433 | 8,583 | 8,361 | ||||||
| Net Income | 3,061 | 2,829 | 2,261 | ||||||
| Earnings Per Share (Basic) | 1.39 | 1.27 | 1.02 | ||||||
| Earnings Per Share (Diluted) | 1.39 | 1.27 | 1.02 | ||||||
| Balance Sheet Highlights | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Cash and Cash Equivalents | $ | 124,033 | $ | 122,261 | $ | 109,707 | |||
| Total Loans | 741,858 | 740,328 | 720,482 | ||||||
| Total Securities | 173,397 | 152,452 | 157,564 | ||||||
| Total Assets | 1,090,346 | 1,065,228 | 1,038,147 | ||||||
| Total Deposits | 998,457 | 971,311 | 940,680 | ||||||
| Total Liabilities | 1,002,274 | 975,820 | 956,624 | ||||||
| Stockholders' Equity | 88,072 | 89,408 | 81,523 | ||||||
| Shares Outstanding | 2,156,680 | 2,225,276 | 2,216,616 | ||||||
| Ratios and Stock Price | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Gross Loan-to-Deposit Ratio | 74.30 | % | 76.22 | % | 76.59 | % | |||
| Net Interest Margin (Year-to-date) | 4.12 | % | 4.09 | % | 3.92 | % | |||
| Liquidity (Liquid assets to liabilities) | 32.50 | % | 31.02 | % | 30.58 | % | |||
| Efficiency Ratio | 68.73 | % | 71.58 | % | 74.45 | % | |||
| Return on Average Assets (ROA) | 1.14 | % | 1.05 | % | 0.88 | % | |||
| Return on Average Equity (ROE) | 13.80 | % | 12.78 | % | 11.31 | % | |||
| Leverage Ratio (Bank) | 8.63 | % | 8.89 | % | 9.35 | % | |||
| Tier 1 Risk-based Capital Ratio (Bank) | 12.34 | % | 12.46 | % | 12.94 | % | |||
| Total Risk-Based Capital Ratio (Bank) | 13.06 | % | 13.18 | % | 13.65 | % | |||
| Stock Price | $ | 46.67 | $ | 45.50 | $ | 31.94 | |||
| Book Value | $ | 40.84 | $ | 40.18 | $ | 36.78 | |||
| Tangible Book Value | $ | 40.25 | $ | 39.59 | $ | 36.13 | |||
| Asset Quality Highlights | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Nonaccruing Loans | $ | 1,478 | $ | 1,497 | $ | 988 | |||
| Loans 90 Days or More Past Due & Accruing | 0 | 3 | 0 | ||||||
| Total Nonperforming Loans | 1,478 | 1,500 | 988 | ||||||
| Loan Modifications | 0 | 105 | 109 | ||||||
| Loans Individually Evaluated | 1,720 | 1,860 | 1,097 | ||||||
| Other Real Estate Owned (OREO) (Foreclosed Assets) | 0 | 0 | 0 | ||||||
| Total Nonperforming Assets | 1,478 | 1,500 | 988 | ||||||
| Nonperforming Loans to Total Loans | 0.20 | % | 0.20 | % | 0.14 | % | |||
| Nonperforming Assets to Total Assets | 0.14 | % | 0.14 | % | 0.10 | % | |||
| Allowance for Credit Losses | $ | 5,239 | $ | 5,235 | $ | 5,131 | |||
| Allowance for Credit Losses to Total Loans | 0.71 | % | 0.71 | % | 0.71 | % | |||
| Allowance for Credit Losses to Nonperforming Loans | 354 | % | 349 | % | 519 | % | |||
CONTACT: Pinnacle Bankshares Corporation, Bryan M. Lemley, 434-477-5882 or bryanlemley@1stnatbk.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
