Pinnacle Bankshares Corporation Announces 2nd Quarter/Mid-Year 2025 Earnings
Rhea-AI Summary
Pinnacle Bankshares Corporation (OTCQX:PPBN) reported strong Q2 2025 financial results, with net income increasing 22% to $2.69 million ($1.21 per share) compared to Q2 2024. For the first half of 2025, net income rose 15% to $4.95 million ($2.23 per share).
The company's performance was driven by a 13.5% increase in net interest income, with net interest margin expanding 40 basis points to 4.05%. Total assets stood at $1.04 billion as of June 30, 2025, with total loans increasing 2% to $726.5 million. The bank maintains strong asset quality with non-performing loans at just 0.13% of total loans and a robust liquidity ratio of 30%.
The company's capital position remains solid with the Bank's Leverage Ratio at 9.63% and Total Risk-Based Capital Ratio at 13.93%. The stock price ended Q2 at $33.01, representing a 5.8% increase from year-end 2024.
Positive
- Net income increased 22% YoY to $2.69 million in Q2 2025
- Net interest margin expanded 40 basis points to 4.05%
- Strong asset quality with non-performing loans decreasing to 0.13% of total loans
- Robust liquidity ratio of 30% with multiple unused funding sources
- Total loans increased by $14.6 million (2%) while maintaining strong credit quality
- Stock price increased 5.8% to $33.01 per share
Negative
- Total assets decreased $3.4 million due to deposit decline
- Securities portfolio decreased $30.5 million (17%)
- Total deposits decreased by $11.1 million (1%)
- Noninterest expense increased 14% primarily due to higher salaries and occupancy costs
- Unrealized losses of $9.19 million in securities portfolio
News Market Reaction – PPBN
In the trading session that priced this news, PPBN declined 0.78%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
ALTAVISTA, Va., July 28, 2025 (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
Second Quarter & 2025 Year-to-Date Highlights
Income Statement comparisons are to the second quarter and first six months of 2024
Balance Sheet, Capital Ratios, and Stock Price comparisons are to December 31, 2024
Income Statement
- Second Quarter 2025 Net Income increased
22% to$2,690,000 . - Year-to-Date Net Income increased
15% to$4,951,000 , while Return on Assets was0.97% .- Net Interest Income increased
13.5% primarily due to higher loan volume and yields on earning assets along with lower cost of funds. Net Interest Margin expanded 40 basis points to4.05% . - Provision for Credit Losses was only
$110,000 due to lower loan growth and continued strong Asset Quality. - Noninterest Income improved
11.5% primarily due to increased income generated from sales of investment and insurance products as well as mortgage loans. - Noninterest Expense increased
14% primarily due to higher salaries and benefits and occupancy expense.
- Net Interest Income increased
Balance Sheet
- Total Assets decreased
$3.4 million , or less than1% , due to an$11 million decrease in Deposits. - Securities decreased
$30.5 million , or17% , due to maturities, which funded increases in Loans of$14.6 million , or2% , and Cash & Cash Equivalents of$9.4 million , or9% . - Our Liquidity Ratio remained strong at
30% (13.5% excluding Available for Sale Securities).
Capital Ratios and Stock Price
- The Bank’s Leverage Ratio increased to
9.63% and Total Risk-Based Capital Ratio increased to13.93% due primarily to profitability. - Our Stock Price ended the quarter at
$33.01 per share, based on the last trade, which is an increase of$1.81 , or5.8% .
Net Income and Profitability
Net income generated during the second quarter of 2025 represents a
Profitability as measured by the Company’s return on average assets (“ROA”) increased to
“We are pleased with Pinnacle’s improved performance thus far in 2025,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. Mr. Hall further commented, “Higher yields on interest earning assets and lower cost of funds have offset rising overhead expense despite the lack of overall asset growth. Our Company remains in a solid position with ample funding, strong asset quality, and an expanding net interest margin.”
Net Interest Income and Margin
The Company generated
The Company generated
Reserves for Credit Losses and Asset Quality
The provision for credit losses was
The allowance for credit losses (ACL) was
Noninterest Income and Expense
Noninterest income for the second quarter of 2025 increased
Noninterest income for the first half of 2025 increased
Noninterest expense for the second quarter of 2025 increased
Noninterest expense for the first half of 2025 increased
The Balance Sheet and Liquidity
Total assets as of June 30, 2025, were
The majority of the Company’s securities portfolio is relatively short-term in nature with
Cash and cash equivalents increased
Total liabilities as of June 30, 2025, were
Total stockholders’ equity as of June 30, 2025, was
Annual Meeting of Shareholders Results
At the Annual Meeting of Shareholders held on May 13, 2025, Elton W. Blackstock, Jr., Robert L. Finch, Jr., Aubrey H. (Todd) Hall, III, and Dr. Robert L. Johnson, II, were re-elected to the Board of Directors as Class I Directors to serve until the 2028 Annual Meeting of Shareholders.
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. A Loan Production Office and a full-service branch have recently been opened in the South Boston area of Halifax County. First National Bank is in its 117th 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 (6/30/25, 3/31/25, and 6/30/24 results unaudited) (In thousands, except rations, share, and per share data) | ||||||
| 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||
| Income Statement Highlights | 6/30/2025 | 3/31/2025 | 6/30/2024 | |||
| Interest Income | ||||||
| Interest Expense | 2,688 | 2,895 | 2,936 | |||
| Net Interest Income | 10,067 | 9,480 | 8,818 | |||
| Provision for Credit Losses | 73 | 37 | 242 | |||
| Noninterest Income | 2,085 | 1,745 | 1,812 | |||
| Noninterest Expense | 8,795 | 8,361 | 7,681 | |||
| Net Income | 2,690 | 2,261 | 2,208 | |||
| Earnings Per Share (Basic) | 1.21 | 1.02 | 1.00 | |||
| Earnings Per Share (Diluted) | 1.21 | 1.02 | 1.00 | |||
| 6 Months Ended | Year Ended | 6 Months Ended | ||||
| Income Statement Highlights | 6/30/2025 | 12/31/2024 | 6/30/2024 | |||
| Interest Income | ||||||
| Interest Expense | 5,584 | 12,295 | 5,710 | |||
| Net Interest Income | 19,546 | 35,448 | 17,228 | |||
| Provision for Credit Losses | 110 | 752 | 260 | |||
| Noninterest Income | 3,830 | 7,879 | 3,435 | |||
| Noninterest Expense | 17,155 | 31,417 | 15,083 | |||
| Net Income | 4,951 | 9,178 | 4,292 | |||
| Earnings Per Share (Basic) | 2.23 | 4.15 | 1.94 | |||
| Earnings Per Share (Diluted) | 2.23 | 4.15 | 1.94 | |||
| Balance Sheet Highlights | 6/30/2025 | 12/31/2024 | 6/30/2024 | |||
| Cash and Cash Equivalents | ||||||
| Total Loans | 726,539 | 711,918 | 670,131 | |||
| Total Securities | 145,290 | 175,816 | 179,823 | |||
| Total Assets | 1,040,560 | 1,043,994 | 998,247 | |||
| Total Deposits | 939,776 | 950,919 | 910,325 | |||
| Total Liabilities | 956,103 | 965,608 | 925,484 | |||
| Stockholders' Equity | 84,457 | 78,386 | 72,763 | |||
| Shares Outstanding | 2,225,727 | 2,212,270 | 2,214,685 | |||
| Ratios and Stock Price | 6/30/2025 | 12/31/2024 | 6/30/2024 | |||
| Gross Loan-to-Deposit Ratio | ||||||
| Net Interest Margin (Year-to-date) | ||||||
| Liquidity | ||||||
| Efficiency Ratio | ||||||
| Return on Average Assets (ROA) | ||||||
| Return on Average Equity (ROE) | ||||||
| Leverage Ratio (Bank) | ||||||
| Tier 1 Capital Ratio (Bank) | ||||||
| Total Capital Ratio (Bank) | ||||||
| Stock Price | ||||||
| Book Value | ||||||
| Asset Quality Highlights | 6/30/2025 | 12/31/2024 | 6/30/2024 | |||
| Nonaccruing Loans | ||||||
| Loans 90 Days or More Past Due and Accruing | 121 | 0 | 0 | |||
| Total Nonperforming Loans | 975 | 1,582 | 1,315 | |||
| Loan Modifications | 107 | 109 | 346 | |||
| Loans Individually Evaluated | 1,109 | 2,010 | 1,661 | |||
| Other Real Estate Owned (OREO) (Foreclosed Assets) | 0 | 0 | 0 | |||
| Total Nonperforming Assets | 854 | 1,582 | 1,315 | |||
| Nonperforming Loans to Total Loans | ||||||
| Nonperforming Assets to Total Assets | ||||||
| Allowance for Credit Losses | ||||||
| Allowance for Credit Losses to Total Loans | ||||||
| Allowance for Credit Losses to Nonperforming Loans | ||||||
CONTACT: Pinnacle Bankshares Corporation, Bryan M. Lemley, 434-477-5882 or bryanlemley@1stnatbk.com
