Financial Data and Key Metrics Changes - Net income for Q4 was $21.2 million, or $0.70 per diluted share, down 3.7% due to lower non-interest income [6] - For the full year 2025, net income reached $76.1 million, or $2.51 per diluted share, an increase of 22% [6] - Net interest income increased by 2.9% to $62.9 million in Q4, with net interest margin expanding by six basis points to 3.28% [14][16] - Return on average assets and return on average equity during Q4 were 1.07% and 10.14%, respectively [6] Business Line Data and Key Metrics Changes - Loan production for the full year increased by 36%, with residential and C&I loan production up 90% and 42%, respectively [7] - Commercial real estate exposure decreased from 63.1% to 61.3% of total loans [8] - Fourth quarter loan production was $375 million, down 34% from the prior quarter [10] - SBA loan production remained consistent at approximately $44 million in Q4 [11] Market Data and Key Metrics Changes - Deposits grew by 3.8% in 2025, with non-interest-bearing deposits representing approximately 30% of total deposits [8] - In Q4, deposits decreased by 1.3% from the prior quarter, driven by a decline in demand deposits [12] - USKC loan balance of $862 million represented approximately 13% of the total loan portfolio [12] Company Strategy and Development Direction - The company aims for low to mid-single-digit loan growth in 2026, focusing on diversifying the portfolio [19] - Plans to grow deposits to support loan growth while maintaining a stable funding mix [19] - Commitment to disciplined expense management and maintaining strong asset quality through conservative underwriting standards [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of their relationship-based banking model and the strength of their operational performance [4] - The company believes it entered 2026 in a strong position to build on momentum and create value for shareholders [20] Other Important Information - Non-performing assets as a percentage of total assets and allowance for credit losses as a percentage of total loans remained healthy at 0.26% and 1.07%, respectively [8] - The efficiency ratio improved to 54.7% from 60.3% the previous year [9] Q&A Session Summary Question: Situation regarding hospitality credit downgraded to Special Mention - Management indicated that the loan is under proactive monitoring and does not foresee loss probabilities due to a strong sponsor and liquidity [22] Question: Expense outlook for the year - Management expects mid-single-digit expense growth, with some ongoing costs related to OREO [25] Question: CD repricing schedule - Approximately $1.8 billion in CDs maturing in the first half of the year, with expectations to reprice at lower rates [26] Question: Buyback strategy - The board evaluates capital return quarterly, and share repurchases will be considered based on market conditions [27] Question: Competition in the CD market - Management noted intense competition for CDs, with some competitors offering higher rates [32][33] Question: Expense seasonality and jumping-off point for Q1 - Management highlighted predictable seasonal expenses and indicated that Q1 may see a mix of increased payroll and reduced advertising costs [38]

Core Viewpoint - Pinnacle Bankshares Corp. has shown positive stock performance, surpassing its 50-day moving average, indicating potential investor interest and market confidence in the company. Group 1: Stock Performance - Pinnacle Bankshares' share price exceeded its 50-day moving average of $40.96, trading as high as $45.0990 and last at $44.80 with a trading volume of 1,800 shares [1] - The company has a market capitalization of $99.90 million, a P/E ratio of 9.26, and a beta of 0.30, suggesting relatively low volatility compared to the market [1] Group 2: Financial Performance - For the quarter ending October 27th, Pinnacle Bankshares reported earnings per share (EPS) of $1.34, with a net margin of 18.14% and a return on equity of 12.94% [2] - The company generated revenue of $12.27 million for the quarter, reflecting its operational scale and market presence [2] Group 3: Company Overview - Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank, offering a variety of commercial and retail banking products and services [3] - The company provides checking accounts, savings and time deposits, individual retirement accounts, and various loan products including residential and commercial mortgages, home equity loans, and small business loans [3]