Pinnacle Bankshares Corporation Announces 3rd Quarter/Year to Date 2025 Earnings

Core Insights - Pinnacle Bankshares Corporation reported a net income of $2,992,000 for Q3 2025, a 44% increase from $2,085,000 in Q3 2024, and a year-to-date net income of $7,943,000, up 25% from $6,377,000 in the same period last year [1][4][6] Financial Performance - Net interest income for Q3 2025 was $10,227,000, a 14% increase from $8,941,000 in Q3 2024, driven by higher loan volume and yields on earning assets [6][9] - Noninterest income rose by 16% to $2,044,000 in Q3 2025, compared to $1,763,000 in Q3 2024, primarily due to increased commissions from investment and insurance product sales [13] - Noninterest expense increased by 8% to $8,567,000 in Q3 2025, attributed to higher salaries and benefits [15][17] Profitability Metrics - Return on average assets (ROA) improved to 1.03% for the nine months ended September 30, 2025, compared to 0.86% for the same period in 2024 [5][28] - Return on average equity (ROE) increased to 12.76% for the nine months ended September 30, 2025, up from 11.76% in the same period of 2024 [5][28] Balance Sheet Highlights - Total assets as of September 30, 2025, were $1,030,398,000, a decrease of 1% from $1,043,994,000 at the end of 2024 [18][28] - Total loans increased by 2.6% to $730,297,000, while total securities decreased by 17% to $145,363,000 [18][28] - Total stockholders' equity rose to $87,692,000 as of September 30, 2025, compared to $78,386,000 at the end of 2024, primarily due to year-to-date profitability [22][28] Asset Quality and Credit Losses - The provision for credit losses was $29,000 in Q3 2025, down from $136,000 in Q3 2024, reflecting improved asset quality [11][12] - Nonperforming loans to total loans decreased to 0.18% as of September 30, 2025, compared to 0.22% at year-end 2024 [12][28] Capital Management - The company paid off $8,000,000 in subordinated debt and a $2,000,000 promissory note in September 2025, enhancing its financial strength [8] - The liquidity ratio stood at 28.3% as of September 30, 2025, indicating strong liquidity management [20][28]