Pinnacle Bankshares: A Beacon of Strength in 2024's 4th Quarter

Pinnacle Bankshares Corporation (OTCQX:PPBN), the one-bank holding company for First National Bank, has reported robust financial results for the 4th quarter and full year of 2024. The company's net income for the 4th quarter of 2024 was $2,800,000, or $1.27 per basic and diluted share, marking a 23% increase compared to the same period in 2023. However, full-year 2024 net income decreased 6% to $9,178,000, or $4.15 per basic and diluted share, compared to 2023.

Key highlights for 2024 include:

* Net interest income increased 7% to $35.45 million, with a net interest margin expanding to 3.70%.
* Loans grew 11% to $712 million, and deposits increased 2% to $951 million.
* The bank maintained strong asset quality with low nonperforming loans at 0.22% and robust liquidity at 33%.
* The company's stock price ended 2024 at $31.20 per share, representing a 30% increase, with a total return of 34.11%.
* First National Bank expanded operations by opening a new full-service branch in South Boston, Virginia in January 2025.



Pinnacle Bankshares' core performance and investments have contributed to enhanced returns for shareholders through increased dividends and share price appreciation. The company's return on average assets (ROA) decreased to 0.92% for 2024, compared to 1.00% for the same time period of 2023. However, this decrease is not unusual in the banking industry, and Pinnacle Bankshares' ROA remains within the range of its industry peers. The bank's strong asset quality and liquidity position contribute to its overall performance.

In conclusion, Pinnacle Bankshares' 2024 4th quarter performance demonstrates a significant improvement compared to its historical trends and is competitive with industry peers. The company's core performance, investments, and strong asset quality have contributed to enhanced returns for shareholders through increased dividends and share price appreciation. As Pinnacle Bankshares continues to perform well compared to peers, investors can expect the company to maintain its strong financial position and continue to grow in the future.