Pinnacle Bankshares Corporation Announces Changes to its Board of Directors and Approval of a new Incentive Stock Plan

ALTAVISTA, Va., May 22, 2024 (GLOBE NEWSWIRE) — Pinnacle Bankshares Corporation (OTCQX: PPBN), the one-bank holding company (the “Company” or “Pinnacle”) of First National Bank (“the Bank” or “First National”), would like to announce that one (1) new Director was elected and four (4) Directors were re-elected during the Company’s Annual Meeting of Shareholders conducted on May 14, 2024. Additionally, three (3) Directors, whose terms expired, retired from the Board. During the meeting shareholders also approved the Company’s 2024 Incentive Stock Plan.

Ramsey W. Yeatts was newly elected to the Board of Directors of the Company as a Class II Director, serving until the 2026 Annual Meeting of Shareholders.   Mr. Yeatts is a Pittsylvania County native and President and Principal Broker of Ramsey Yeatts & Associates, Realtors, a real estate brokerage firm located in Danville, Virginia, that serves the City of Danville, Pittsylvania County, and the surrounding area.  His previous employment experience includes a successful seventeen (17) year banking career.  Mr. Yeatts brings over thirty-five (35) years of experience in real estate and banking to the Boards of Pinnacle and First National.

Vivian S. Brown, Connie C. Burnette, Michael E. Watson, and James O. Watts, IV, Esq. were re-elected to the Board of Directors of the Company as Class III Directors, serving until the 2027 Annual Meeting.

The retirements of L. Frank King, Jr., C. Bryan Stott, and Carroll E. Shelton from the Boards of both the Company and Bank, effective May 14, 2024, were also announced.

Mr. King served as a Director of the Company and the Bank for nearly (4) years and was previously a Director of Virginia Bank Bankshares, Inc. and Virginia Bank & Trust Company for twenty-five (25) years prior to their merger with Pinnacle and First National in 2020. Mr. King also served as the President and Chief Executive Officer of Virginia Bank from 2000 to 2009 and was Vice President and Cashier from 1986 to 2000.

Mr. Stott served as a Director of the Company and the Bank for fourteen (14) years and was the Compensation Committee Chair for twelve (12) years.

Mr. Shelton served the Bank and the Company as an employee and/or Director for over fifty (50) years retiring as Senior Vice President and Chief Credit Officer of First National in 2013 and serving as a Director of Pinnacle since it was organized in 1997 and the Bank for thirty-four (34) years.

“I am excited to have Ramsey Yeatts join our Boards,” stated Aubrey H. Hall, III, President and Chief Executive Officer of both the Company and the Bank. He further commented, “Mr. Yeatts brings extensive knowledge of our Southern Market to our Boards developed over a successful real estate and banking career. We also sincerely appreciate the service provided by Frank King, Bryan Stott, and Carroll Shelton. These three gentlemen contributed significantly to the success of Pinnacle and First National by providing outstanding guidance and wisdom over their many years of service.”

Also, Pinnacle’s shareholders approved the Company’s 2024 Incentive Stock Plan, which replaces the 2014 Incentive Stock Plan that expired on April 8, 2024. The Plan authorizes 200,000 shares for the award of options, restricted stock, or stock issued to Directors in lieu of cash for fees earned. It is an important tool in appropriately incentivizing and retaining the services of key employees and Directors, and ensuring their interests are aligned with the Company’s shareholders.

Pinnacle Bankshares Corporation is a locally managed community banking organization serving Central and Southern Virginia. The one-bank holding company of First National Bank serves market areas 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 one branch in Amherst County within the Town of Amherst; two branches in Bedford County; five branches in Campbell County, including two within the Town of Altavista, where the Bank was founded; one branch in the City of Charlottesville; three branches in the City of Danville; three branches in the City of Lynchburg; and three branches in Pittsylvania County, including one within the Town of Chatham. First National Bank is celebrating its 116th year of operation.

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 credit quality of our asset portfolio in future periods, the expected losses of nonperforming loans in future periods, returns and capital accretion during future periods, our cost of funds, the maintenance of our net interest margin, future operating results and business performance and our growth initiatives. 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: changes in consumer spending and saving habits that may occur, including increased inflation; changes in general business, economic and market conditions; attracting, hiring, training, motivating and retaining qualified employees; changes in fiscal and monetary policies, and laws and regulations; changes in interest rates, inflation rates, deposit flows, loan demand and real estate values; changes in the quality or composition of the Company’s loan portfolio and the value of the collateral securing loans; changes in macroeconomic trends and uncertainty, including liquidity concerns at other financial institutions, and the potential for local and/or global economic recession; changes in demand for financial services in Pinnacle’s market areas; increased competition from both banks and non-banks in Pinnacle’s market areas; a deterioration in credit quality and/or a reduced demand for, or supply of, credit; increased information security risk, including cyber security risk, which may lead to potential business disruptions or financial losses; volatility in the securities markets generally, including in the value of securities in the Company’s securities portfolio or in the market price of Pinnacle common stock specifically; and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.   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]