Exhibit 99.1

 

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Pinnacle Bankshares Corporation Announces Year-to-Date and Third Quarter 2020 Earnings

Altavista, VA, November 6, 2020/Globe Newswire

/ – Net income for Pinnacle Bankshares Corporation (OTCQX:PPBN), the one-bank holding company (“Pinnacle” or the “Company”) for First National Bank (the “Bank”), was $460,000 or $0.29 per basic and diluted share for the quarter ended September 30, 2020, and $1,575,000 or $1.01 per basic and diluted share for the nine months ended September 30, 2020. Net income was $1,043,000 or $0.67 per basic and diluted share and $3,712,000 or $2.40 per basic share and $2.38 per diluted share, respectively, for the same periods of 2019. Consolidated results for the quarter and nine month periods are unaudited.

Profitability as measured by the Company’s return on average assets (“ROA”) decreased to 0.39% for the nine months ended September 30, 2020, as compared to 1.04% generated during the first nine months of 2019. Correspondingly, return on average equity (“ROE”) decreased for the nine month period of 2020 to 4.54%, compared to 11.15% for the same time period of the prior year.

The $1,575,000 in net income generated through nine months of 2020 represents a $2,137,000, or 58%, decrease as compared to the same time period of the prior year, which was mainly driven by higher noninterest expense and lower net interest income. The increase in noninterest expense was primarily due to legal, accounting and investment banking fees totaling $1,109,000 associated with the Company’s merger with Virginia Bank Bankshares, Inc. (“Virginia Bank”), which closed on October 30, 2020, as well as higher salaries and employee benefits related to strategic growth initiatives to include the Bank’s Downtown Lynchburg Branch and its Charlottesville Loan Production Office. The decrease in net interest income was primarily due to the low interest rate environment due to the economic downturn caused by the COVID-19 pandemic.

Net income of $460,000 generated during the third quarter of 2020 represents a $583,000, or 56%, decrease as compared to the third quarter of 2019, due to the same factors impacting year-to-date performance through September 30, 2020. Merger-related expenses of $431,000 during the third quarter of 2020 contributed significantly to this decline in net income.

“We are pleased with our operating performance thus far this year, which net of merger expenses continues to be in line with expectations despite the impacts of the COVID-19 pandemic,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. Mr. Hall further commented, “Our merger with Virginia Bank has been approved and closed, allowing us to focus on integration and taking care of our clients. I am excited about the future and opportunities provided through our strategic partnership.”

For the nine months ending September 30, 2020, the Company produced $12,563,000 in net interest income, which represents a $762,000, or 6%, decrease as compared to the $13,325,000 generated for the same time period of 2019. Interest income decreased $681,000, or approximately 4%, due to decreased yields on loans and investments, while interest expense increased $81,000, or approximately 4%, due mainly to the continued growth of deposits. As a result of a 72 basis points decrease in yield on average earning assets and a 5 basis points decrease in the cost to fund earning assets, the Company’s net interest margin decreased to 3.38% for the first nine months of 2020 as compared to 4.05% for the first nine months of 2019.

The Company produced $4,259,000 in net interest income for the third quarter of 2020, which represents a $109,000, or 3%, decrease as compared to the $4,368,000 generated in the third quarter of 2019. Interest income decreased $232,000, or approximately 5%, due to decreased yields on loans and investments, while interest expense decreased $123,000, or approximately 17%, due to a decrease in the cost of funds.


The following information was filed by Pinnacle Bankshares Corp (PPBN) on Friday, November 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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