Pinnacle Bankshares Corporation Announces Cash Dividend and Elects Directors

ALTAVISTA, Va., May 13, 2021 (GLOBE NEWSWIRE) — Pinnacle Bankshares Corporation (“Pinnacle” or the “Company”) (OTCQX: PPBN), the one-bank holding company for First National Bank (the “Bank”), announced today that its Board of Directors declared a cash dividend of $0.14 per share on May 11, 2021, payable June 4, 2021, to shareholders of record as of May 21, 2021.

The $0.14 per share cash dividend is equal to the dividend paid last quarter and marks the thirty-fifth consecutive quarter a dividend has been declared. Pinnacle previously released its first quarter 2021 earnings on April 30, 2021.

“Pinnacle is pleased to maintain its quarterly cash dividend of $0.14 per share,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank.   Mr. Hall further commented, “The Board and Management are committed to balancing this type of return on investment with retaining earnings to support growth of the Company, which hopefully will enhance our stock price.”

In other news, at Pinnacle’s 2021 Annual Meeting of Shareholders held on May 11, 2021, George W. Davis, III was elected to the Board of Directors as a Class I director to serve until the 2022 Annual Meeting of Shareholders; Donald W. Merricks and Dr. Albert L. Payne were elected as Class II directors to serve until the 2023 Annual Meeting of Shareholders; and Connie C. Burnette, L. Frank King, Jr., Carroll E. Shelton, C. Bryan Stott, Michael E. Watson and James O. Watts, IV, Esq. were elected as Class III directors to serve until the 2024 Annual Meeting of Shareholders.

Pinnacle Bankshares Corporation is a locally managed community banking organization based in Central Virginia. The one-bank holding company of First National Bank serves an area consisting primarily of all or portions of the Counties of Amherst, Bedford, Campbell and Pittsylvania, and the Cities of Charlottesville, Danville and Lynchburg. The Company has a total of eighteen branches with two located in the Town of Altavista in Campbell County, where the Bank was founded. Other branch locations include one branch in the Town of Amherst in Amherst County, two branches in Bedford County, three additional branches in Campbell County, four branches in the City of Danville, three branches in the City of Lynchburg, and three branches in Pittsylvania County. The Company also operates a loan production office located in Charlottesville. First National Bank is in its 113th year of operation.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Any statements contained herein that are not historical facts are forward-looking and are based on current assumptions and analysis by the Company. These forward-looking statements, including statements made in Mr. Hall’s quotes may include, but are not limited to, statements regarding the returns and capital accretion during future periods and future operating results and business performance. Although we believe our plans and expectations reflected in these forward-looking statements are reasonable, our ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and we can give no assurance that these plans or expectations will be achieved. Factors that could cause actual results to differ materially from management’s expectations include, but are not limited to, the effectiveness of management’s efforts to improve asset quality, returns, net interest margin and collections and control operating expenses, management’s efforts to minimize losses related to nonperforming loans, management’s efforts to lower our cost of funds, the Company’s branch expansions, cyber threats, attacks or similar events, the potential adverse effects of the ongoing COVID-19 Pandemic on local and national economies and markets and any governmental or societal responses thereto, the effect of steps taken by the Company in response to the COVID-19 Pandemic, the severity and duration of the pandemic, the impacts of tightening or loosening of governmental restrictions, the ability of the Company and the Bank to realize the anticipated benefits of the merger with Virginia Bank Bankshares, Inc., changes in: interest rates, general economic and business conditions, including unemployment levels and slowdowns in economic growth, declining collateral values, especially real estate, the real estate market, the legislative/regulatory climate, including laws and regulations concerning taxes, banking, securities, insurance, and healthcare with which the Company and its subsidiaries must comply, including recent and potential legislative and regulatory changes in response to the COVID-19 Pandemic and the rules and regulations that may be promulgated thereunder, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System and any policies or programs implemented pursuant to the CARES Act, including the Paycheck Protection Program, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows and funding costs, competition, demand for financial services in our market area and accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and you should not place undue reliance on such statements, which reflect our views as of the date of this release.

CONTACT: Pinnacle Bankshares Corporation, Bryan M. Lemley, 434-477-5882 or [email protected]