Pinnacle Bankshares Shatters Earnings Record on Community Banking Strength

ALTAVISTA, Va. – April 28, 2026 – Pinnacle Bankshares Corporation (OTCQX:PPBN) today announced record-high quarterly earnings, signaling a powerful start to 2026 and reinforcing the success of its community-focused banking model. The holding company for First National Bank reported a net income of $3.061 million for the first quarter, a staggering 35% increase from the $2.261 million earned in the same period last year.

This robust performance translated to earnings of $1.39 per basic and diluted share, a significant jump from the $1.02 per share reported in the first quarter of 2025. The results, which follow an already outstanding year in 2025, underscore the company's ability to generate substantial growth and profitability while maintaining a fortress-like balance sheet.

“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. “Our Company remains in a sound financial position with ample liquidity and strong asset quality, which we believe are key factors for continued success.”

Deconstructing a Record Quarter

The impressive bottom-line growth was driven by strong performance across the bank's core operations. Net interest income, a key measure of a bank's profitability from its lending activities, climbed 9% year-over-year to $10.357 million. This was fueled by higher average loan volume and improved yields on earning assets, pushing the company's Net Interest Margin up by 20 basis points to an impressive 4.12%.

While income grew, the bank demonstrated remarkable discipline in managing its costs. Interest expense notably decreased by 6.6% compared to the prior year's quarter, a testament to an efficient funding structure. Furthermore, noninterest expenses saw a minimal increase of less than 1%, even as the company absorbed slightly higher costs related to salaries and strategic growth initiatives.

Beyond its core lending, Pinnacle also saw a nearly 10% increase in noninterest income, which rose to $1.912 million. This growth was broad-based, stemming from higher service charges on deposit accounts, increased income from bank-owned life insurance, and stronger commissions from the sale of investment and insurance products. This diversification of revenue streams adds another layer of stability to the bank's financial performance.

The Foundation of a Fortress Balance Sheet

Underpinning the record earnings is a story of exceptional asset quality and prudent financial management. The bank’s provision for credit losses was a mere $78,000 for the quarter. This minimal provision is a direct result of a pristine loan portfolio, with the ratio of non-performing loans to total loans holding steady at an exceptionally low 0.20%. The bank also reported having no Other Real Estate Owned (OREO), which are foreclosed assets that can weigh on a bank's balance sheet.

This stellar credit quality is a strong indicator of both the bank's rigorous underwriting standards and the underlying economic health of its service areas across Central and Southern Virginia. The allowance for credit losses provides a substantial cushion, covering non-performing loans by an impressive 354%.

Total assets grew by over $25 million during the quarter to reach $1.09 billion. This growth was primarily funded by a significant influx of deposits, which increased by $27.1 million to nearly $1 billion. The ability to attract and retain local deposits, even as the company's account base grew by 1.75%, highlights customer confidence in the 118-year-old institution. The bank's liquidity ratio remains robust at 32.5%, providing ample flexibility and security.

A Pattern of Performance and Shareholder Value

The first quarter's results are not an anomaly but rather the continuation of a multi-year trend of exceptional performance. Pinnacle Bankshares delivered a record-breaking year in 2025, which saw its stock price climb 46% and deliver a total shareholder return of 49.23%. The company's stock has continued its ascent, touching an all-time high earlier in April 2026.

Management has actively translated this operational success into direct returns for its investors. The company maintains a strong track record of dividend growth, with a compound annual growth rate of 10% over the last three years. This commitment to shareholder returns was further demonstrated in the first quarter through a strategic share repurchase program, where the company bought back 70,710 of its outstanding shares. While this action slightly lowered capital ratios, the bank remains classified as “well capitalized” by all regulatory definitions, balancing shareholder returns with financial prudence.

The Community Banking Blueprint in a Shifting Landscape

Pinnacle's sustained success offers a compelling case study in the power of community banking. The company has explicitly stated its strategy of capitalizing on market disruption caused by the consolidation of larger national and regional banks. As bigger institutions merge, they often close branches or alter service models, creating an opportunity for locally managed banks like First National Bank to attract customers seeking personalized service and local decision-making.

With a network of 19 branches strategically located across counties like Amherst, Bedford, and Campbell and cities such as Lynchburg, Danville, and Charlottesville, the bank maintains deep roots in the communities it serves. This local-first approach appears to be a winning formula, enabling the bank to grow its deposit base and loan portfolio steadily while maintaining the high-touch service that defines its brand.

Pinnacle Bankshares Corporation will hold its Annual Meeting of Shareholders on Tuesday, May 12, 2026, at the Virginia Technical Institute in Altavista, where management will discuss the company's performance and strategic direction with investors.