Pinnacle Bankshares Corporation Announces 2025 4th Quarter & Record High Full-Year Earnings

Rhea-AI Summary

Pinnacle Bankshares (OTCQX:PPBN) reported record full-year 2025 net income of $10.77M (+17% YoY) and Q4 net income of $2.83M. Net interest income rose 13% to $40.12M with NIM expanding to 4.09%. Loans grew 4% to $740.33M, securities fell 13% to $152.45M, and year-end cash totaled $122.26M. The company paid off $10M of subordinated debt in Sept 2025 and finished the year with a last-trade stock price of $45.50 (record intraday high $46.49).

Positive

• Net income +$1.59M (17%) for 2025, record high earnings
• Net interest income +$4.68M (13%) and NIM to 4.09%
• Paid off $10M subordinated debt and promissory note in Sep 2025
• Stock price +45.8% year-end appreciation; intraday record $46.49

Negative

• Securities portfolio decreased 13% ($23.36M) from 2024
• Noninterest expense increased 9% for 2025 to $34.31M
• Unrealized available-for-sale securities losses of $7.54M at year-end

News Market Reaction

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On the day this news was published, PPBN declined 0.38%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

ALTAVISTA, Va., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Net income for Pinnacle Bankshares Corporation (OTCQX:PPBN), the one-bank holding company (the “Company” or “Pinnacle”) for First National Bank (the “Bank”), was $2,829,000, or $1.27 per basic and diluted share, for the fourth quarter of 2025, while net income for the year ended December 31, 2025 was a record high $10,772,000, or $4.85 per basic and diluted share. In comparison, net income was $2,800,000, or $1.27 per basic and diluted share, and $9,178,000 or $4.15 per basic and diluted share, respectively, for the same periods of 2024. Consolidated results for 2025 are unaudited.

2025 Fourth Quarter & Full-Year Highlights

Income Statement (Comparisons are to the fourth quarter 2024 and year ended December 31, 2024)

• Fourth quarter Net Income increased $29,000, or 1%, overall and $808,000, or 40%, excluding 2024 Bank Owned Life Insurance (BOLI) proceeds.*
• 2025 Net Income increased $1,594,000, or 17%, overall and $2,373,000, or 28%, excluding 2024 BOLI proceeds.*
  • Return on Average Assets was 1.05%.
  • Net Interest Income increased $4.7 million, or 13%, while Net Interest Margin expanded to 4.09%.
  • Provision for Credit Losses was only $308,000 due to lower loan growth and continued strong Asset Quality.
  • Noninterest Income improved 10%, excluding 2024 BOLI proceeds*, primarily due to increased income generated by First National Advisors and higher debit card interchange fees.
  • Noninterest Expense increased 9%, primarily due to higher salaries and benefits and occupancy expense, including software and platforms.
    

Balance Sheet (Comparisons are to December 31, 2024)

• Total Assets increased $21.2 million, or 2%, due primarily to a $20.4 million increase in Deposits.
• Outstanding subordinated debt and a promissory note totaling $10 million were paid off due to the Bank’s strengthened capital position. These instruments were set to reprice at higher interest rates.
• Securities decreased $23.4 million, or 13%, due to maturities, with cashflow used to fund an increase of $28.4 million, or 4%, in outstanding Loans.
• Our Liquidity Ratio remained strong at 31.02% (13.8% excluding Available for Sale Securities). Year-End Cash and Cash Equivalents totaled $122.3 million.

Capital Ratios & Stock Price (Comparisons are to December 31, 2024)

• The Bank’s Leverage Ratio and Total Risk-Based Capital Ratio decreased to 8.89% and 13.18%, respectively, due to paying off the subordinated debt and promissory note.
• Our Stock Price ended the year at $45.50 per share, based on the last trade, which is an increase of $14.30, or 45.8%. Price to Book was 113%. A record high stock price of $46.49 was reached during the fourth quarter.
  
  *BOLI proceeds totaled $779,000 in 2024 and were received in the fourth quarter of 2024.

Net Income and Profitability

Net income generated during the fourth quarter of 2025 represents a $29,000, or 1%, increase as compared to the same time period of the prior year. Net of BOLI proceeds, the increase is $808,000, or 40%, which was driven by higher net interest income and a lower provision for credit losses, partially offset by higher noninterest expense.  

Net income generated for 2025 represents a $1,594,000, or 17%, increase as compared to the prior year. Net of BOLI proceeds the increase is a $2,373,000, or 28%, increase driven by the same factors referenced above.

Profitability as measured by the Company’s return on average assets (“ROA”) increased to 1.05% for 2025, as compared to 0.92% for 2024. Correspondingly, return on average equity (“ROE”) increased to 12.78% for 2025, as compared to 12.49% for 2024.

“We are very pleased with Pinnacle’s continued strong financial performance to include 2025 record high earnings,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. He further commented, “Our Company has benefitted from ample liquidity, an improved net interest margin, and continued strong asset quality. These factors have contributed to enhanced returns for our shareholders through significant share price appreciation and increased cash dividends again this year.”

Early Payoff of Subordinated Debt and Note

During September 2025, the Company paid off $8,000,000 in subordinated debt and a $2,000,000 promissory note that were set to reprice at higher interest rates. The early retirement of this debt was made possible by Pinnacle’s continued financial strength and prudent balance sheet management. Pinnacle may explore opportunities to reissue debt in the future based on market conditions and the Bank’s current and projected capital needs.

Net Interest Income and Margin

The Company generated $10,351,000 in net interest income for the fourth quarter of 2025, which represents a $1,072,000, or 12%, increase as compared to $9,279,000 for the fourth quarter of 2024. Interest income increased $586,000, or 5%, due to higher yields on earning assets and increased loan volume, while interest expense decreased $486,000, or 15%, due to lower interest rates paid on deposits and a decrease in time deposits.

The Company generated $40,124,000 in net interest income for 2025, which represents a $4,676,000, or 13%, increase as compared to $35,448,000 for 2024. Interest income increased $3,519,000, or 7%, as yield on earning assets increased 24 basis points to 5.22%. Interest expense decreased $1,157,000, or 9%, due to lower interest rates paid on deposits with cost to fund earning assets decreasing 15 basis points to 1.13%. Net interest margin increased to 4.09% for 2025 compared to 3.70% for 2024, which contributed significantly to improved profitability.

Reserves for Credit Losses and Asset Quality

The provision for credit losses was $169,000 in the fourth quarter of 2025 as compared to $356,000 in the fourth quarter of 2024. For 2025, the provision for credit losses was $308,000 as compared to $752,000 in 2024. Provision expense decreased as a result of a decline in the pace of loan volume growth year-over-year and lower net charge offs in 2025 compared to the prior year.

The allowance for credit losses (ACL) was $5,235,000 as of December 31, 2025, which represented 0.71% of total loans outstanding. In comparison, the ACL was $5,084,000 or 0.71% of total loans outstanding as of December 31, 2024. Non-performing loans to total loans decreased to 0.20% as of December 31, 2025, compared to 0.22% as of year-end 2024. ACL coverage of non-performing loans increased to 349% as of December 31, 2025, compared to 321% as of year-end 2024. Management views the allowance balance as being sufficient to offset potential future losses in the loan portfolio.

Noninterest Income and Expense

For the fourth quarter of 2025, noninterest income decreased $763,000, or 28%, to $1,918,000 as compared to $2,681,000 for the fourth quarter of 2024. The decrease was primarily due to a $779,000 decrease in BOLI proceeds and partially offset by a $43,000 increase in commissions from sales of investment and insurance products, primarily generated by First National Advisors, and a $32,000 increase in debit card interchange fees.

For 2025, noninterest income decreased $87,000, or 1%, to $7,792,000 as compared to $7,879,000 for 2024. The decrease was mainly due to the previously referenced decrease in BOLI proceeds partially offset by a $298,000 increase in commissions mainly generated from sales of investment and insurance products, a $94,000 increase in debit card interchange fees, a $55,000 increase in wire transfer fees, and $53,000 increase in fees generated from sales of mortgage loans. Excluding BOLI proceeds, noninterest income increased $692,000, or 10%, year-over-year.

For the fourth quarter of 2025, noninterest expense increased $211,000, or 3%, to $8,584,000 as compared to $8,373,000 for the fourth quarter of 2024. The increase was primarily due to a $264,000 increase in salaries and employee benefits, $128,000 increase in occupancy expense, both associated with growth, as well as a $60,000 increase in dealer loan expenses.

For 2025, noninterest expense increased $2,889,000, or 9%, to $34,306,000 as compared to $31,417,000 for 2024. The increase was mainly due to a $1,960,000 increase in salaries and benefits and a $667,000 increase in occupancy expense, both associated with growth, as well as a $130,000 increase in capital stock tax and a $102,000 increase in dealer loan expenses.

The Balance Sheet and Liquidity

Total assets as of December 31, 2025, were $1,065,228,000, up $21,234,000, or 2%, from $1,043,994,000 as of December 31, 2024. The principal components of the Company’s assets as of December 31, 2025, were $740,328,000 in total loans, $152,452,000 in securities, and $122,261,000 in cash and cash equivalents. For 2025, total loans increased $28,409,000, or 4%, from $711,918,000 and securities decreased $23,364,000, or 13%, from $175,816,000. Outstanding loans increased across all divisions to include Commercial, Dealer, and Retail.

The majority of the Company’s securities portfolio is relatively short-term in nature. Thirty-five percent (35%) of the Company’s securities portfolio is invested in U.S. Treasury Notes having an average maturity of 0.95 years with $30,000,000 maturing during the next three months. The Company’s entire securities portfolio was classified as available for sale on December 31, 2025, which provides transparency regarding unrealized losses. Unrealized losses associated within the available for sale securities portfolio were $7,542,000 as of December 31, 2025, or five percent (5%) of book value, an improvement from $11,817,000 as of December 31, 2024.

The Company had a strong liquidity ratio of 31% as of December 31, 2025. The liquidity ratio excluding the available for sale securities portfolio was 13% providing the opportunity to sell excess funds at a still attractive federal funds rate. The Company has access to multiple liquidity lines of credit through its correspondent banking relationships and the Federal Home Loan Bank. None of these contingency funding sources have been utilized.

Total liabilities as of December 31, 2025 were $975,820,000, up $10,212,000, or 1%, from $965,608,000 as of December 31, 2024, as deposits increased $20,392,000, or 2%, in 2025 to $971,311,000 from $950,919,000.

Total stockholders’ equity as of December 31, 2025 was $89,408,000 and consisted primarily of $77,450,000 in retained earnings. In comparison, as of December 31, 2024, total stockholders’ equity was $78,386,000. The increase is due primarily to 2025 profitability and an increase in the market value of the securities portfolio and pension assets. Both the Company and Bank remain “well capitalized” per all regulatory definitions.

Company Information

Pinnacle Bankshares Corporation 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; three branches in the City of Lynchburg; and three branches in Pittsylvania County, including one within the Town of Chatham. The Bank opened a full-service branch in the South Boston area of Halifax County in January of 2025, where it also continues to operate a commercial loan production office. First National Bank is in its 118^th 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, returns and capital accretion during future periods, 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.

Selected Financial Highlights are shown on the next page. Pinnacle Bankshares Corporation Selected Financial Highlights (12/31/2025 and 9/30/25 results unaudited) (In thousands, except ratios, share, and per share data)
	3 Months Ended			3 Months Ended			3 Months Ended
Income Statement Highlights	12/31/2025			9/30/2025			12/31/2024
Interest Income	$13,129			$13,003			$12,543
Interest Expense		2,778			2,776			3,264
Net Interest Income		10,351			10,227			9,279
Provision for Credit Losses		169			29			356
Noninterest Income		1,918			2,044		2,681*
Noninterest Expense		8,583			8,567			8,373
Net Income		2,829			2,992			2,800
Earnings Per Share (Basic)		1.27			1.34			1.27
Earnings Per Share (Diluted)		1.27			1.34			1.27
	Year Ended			Year Ended			Year Ended
Income Statement Highlights	12/31/2025			12/31/2024			12/31/2023
Interest Income	$51,262			$47,743			$41,888
Interest Expense		11,138			12,295			8,716
Net Interest Income		40,124			35,448			33,172
Provision for Credit Losses		308			752			70
Noninterest Income		7,792		7,879*			7,964*
Noninterest Expense		34,306			31,417			29,280
Net Income		10,772			9,178			9,762
Earnings Per Share (Basic)		4.85			4.15			4.45
Earnings Per Share (Diluted)		4.85			4.15			4.45
Balance Sheet Highlights	12/31/2025			12/31/2024			12/31/2023
Cash and Cash Equivalents	$122,261			$108,213			$87,589
Total Loans		740,328			711,918			641,437
Total Securities		152,452			175,816			233,579
Total Assets		1,065,228			1,043,994			1,016,528
Total Deposits		971,311			950,919			932,444
Total Liabilities		975,820			965,608			948,123
Stockholders' Equity		89,408			78,386			68,405
Shares Outstanding		2,225,276			2,212,270			2,198,158
Ratios and Stock Price	12/31/2025			12/31/2024			12/31/2023
Gross Loan-to-Deposit Ratio		76.22%			74.87%			68.79%
Net Interest Margin		4.09%			3.70%			3.52%
Liquidity		31.02%			32.60%			37.27%
Efficiency Ratio		71.58%			72.49%			71.20%
Return on Average Assets (ROA)		1.05%			0.92%			1.00%
Return on Average Equity (ROE)		12.78%			12.49%			15.69%
Leverage Ratio (Bank)		8.89%			9.21%			8.82%
Tier 1 Capital Ratio (Bank)		12.46%			12.81%			12.98%
Total Capital Ratio (Bank)		13.18%			13.52%			13.67%
Stock Price	$45.50			$31.20			$24.01
Book Value	$40.18			$35.43			$31.12
Tangible Book Value	$39.59			$34.77			$30.38
*BOLI proceeds of $779,000 and $725,000 were received during the 4thQuarter of 2024 and 2023, respectively. BOLI proceeds of $779,000 and $1,363,000 were received during full-year 2024 and 2023, respectively.
Asset Quality Highlights	12/31/2025			12/31/2024			12/31/2023
Nonaccruing Loans	$1,497			$1,582			$1,557
Loans 90 Days or More Past Due and Accruing		3			0			0
Total Nonperforming Loans		1,500			1,582			1,557
Loan Modifications		105			109			357
Loans Individually Evaluated		1,860			2,010			2,287
Other Real Estate Owned (OREO) (Foreclosed Assets)		0			0			0
Total Nonperforming Assets		1,500			1,582			1,557
Nonperforming Loans to Total Loans		0.20%			0.22%			0.24%
Nonperforming Assets to Total Assets		0.14%			0.15%			0.15%
Allowance for Credit Losses	$5,235			$5,084			$4,511
Allowance for Credit Losses to Total Loans		0.71%			0.71%			0.70%
Allowance for Credit Losses to Nonperforming Loans		349%			321%			290%

CONTACT: Pinnacle Bankshares Corporation, Bryan M. Lemley, 434-477-5882 or bryanlemley@1stnatbk.com

FAQ

What were Pinnacle Bankshares (PPBN) full-year 2025 earnings and EPS?

Pinnacle reported $10.77M net income for 2025, or $4.85 per share. According to the company, this represents a record high and a 17% increase versus 2024 driven by higher net interest income.

How did Pinnacle's net interest margin and net interest income change in 2025 for PPBN?

Net interest income rose to $40.12M (+13%) and NIM expanded to 4.09%. According to the company, higher yields on earning assets and lower deposit costs drove the improvement.

What balance sheet changes should PPBN investors note for year-end 2025?

Total assets increased 2% to $1.065B, loans grew 4% to $740.33M, and securities declined 13% to $152.45M. According to the company, securities maturities funded loan growth and cash balances.

Did Pinnacle Bankshares (PPBN) take any capital or debt actions in 2025?

Yes, the company paid off $8M subordinated debt and a $2M promissory note in September 2025. According to the company, the early payoff reflected strengthened capital and avoided higher future rates.

How did asset quality and reserves perform for PPBN in 2025?

Non-performing loans fell to 0.20% and ACL was $5.235M (0.71% of loans) with ACL coverage of nonperformers at 349%. According to the company, reserves are sufficient given lower net charge-offs.