Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2020

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle's results of operations for the first quarter ended March 31, 2020:

• For the three months ended March 31, 2020, Pinnacle reported net income of $841,000, compared to $665,000 for the three months ended March 31, 2019. Included in net income for the first quarter 2020 was approximately $120,000 gain on sale of securities, net of tax. These were no such gains recorded during the first quarter 2019.
• Net interest income after the provision for loan losses for the three months ended March 31, 2020, was $2,022,000, compared with $1,944,000 in the same period last year.
• For the three months ended March 31, 2020, basic and diluted earnings per share were each $0.82. For the same period in 2019 basic and diluted earnings per share were each $0.64.
• For the three months ended March 31, 2020, return on average assets was 1.39%, compared to 1.20% in the comparable 2019 period.

The Company's net interest margin was 3.68% for the three months March 31, 2020, compared to 3.81% for the three months ended March 31, 2019.

At March 31, 2020, Pinnacle's allowance for loan losses as a percent of total loans was 2.12%, compared to 2.07% at December 31, 2019. At March 31, 2020, the allowance for loan losses as a percent of nonperforming loans was 1408.92%, compared to 1362.66% at December 31, 2019. Nonperforming assets were $157,000 at March 31, 2020, compared to $158,000 at December 31, 2019. The ratio of nonperforming assets to total loans was .15% at both March 31, 2020, and December 31, 2019.

Pinnacle was classified as "well capitalized" at March 31, 2020. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.19 per share were paid to shareholders during the first quarter of both 2020 and 2019.

The outbreak of the recent coronavirus ("COVID-19") , or an outbreak of another highly infectious or contagious disease, could adversely affect our business activities, financial condition and results of operations.

Our business is dependent upon the willingness and ability of our customers to conduct banking and other financial transactions. The spread of a highly infectious or contagious disease, such as COVID-19, could cause severe disruptions in the U.S. economy, which could in turn disrupt the business, activities, and operations of our customers, as well as our business and operations. Moreover, since the beginning of January 2020, the coronavirus outbreak has caused significant disruption in the financial markets both globally and in the United States. The spread of COVID-19, or an outbreak of another highly infectious or contagious disease, may result in a significant decrease in business and/or cause our customers to be unable to meet existing payment or other obligations to us, particularly in the event of a spread of COVID-19 or an outbreak of an infectious disease in our market area. Although we maintain contingency plans for pandemic outbreaks, a spread of COVID-19, or an outbreak of another contagious disease, could also negatively impact the availability of key personnel necessary to conduct our business activities. Such a spread or outbreak could also negatively impact the business and operations of third-party service providers who perform critical services for us. If COVID-19, or another highly infectious or contagious disease, spreads or the response to contain COVID-19 is unsuccessful, we could experience a material adverse effect to our business, financial condition, and results of operations.

Forward-Looking Statements

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Pinnacle undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Pinnacle's expectations. Certain tabular presentations may not reconcile because of rounding.

Pinnacle Bancshares, Inc.'s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama.