Pinnacle Bankshares Corporation Announces Increase to Quarterly Cash Dividend

ALTAVISTA, Va., Nov. 10, 2022 (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 $0.18 per share on November 8, 2022, payable December 2, 2022, to shareholders of record as of November 18, 2022.

The $0.18 per share cash dividend is $0.03 higher than the $0.15 dividend paid last quarter and marks the forty-first consecutive quarter that a dividend has been declared. Total dividends declared have increased $.05 per share, or 9%, to $0.61 per share in 2022 as compared to $0.56 per share in 2021.

“Pinnacle is pleased to increase its quarterly cash dividend by 20% to $0.18 per share based on our record high earnings performance through the first nine months of 2022,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. Mr. Hall further commented, “Our Board and Management Team remain committed to balancing this type of return on your investment with retention of earnings to sufficiently capitalize the Bank, especially given current volatile economic conditions.”

Pinnacle Bankshares Corporation is a community banking organization serving Central and Southern 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, one branch in the Town of Amherst in Amherst County, two branches in Bedford County, one branch in the Town of Chatham in Pittsylvania County, three additional branches in Campbell County, three branches in the City of Danville, three branches in the City of Lynchburg, two additional branches in Pittsylvania County and one branch in the City of Charlottesville. First National Bank is in its 114th 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 Company’s dividends and dividend strategy, returns on investment and capital levels, future operating results, business performance and our growth initiatives and their results. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable and are based on reasonable assumptions within the bounds of the Company’s existing knowledge of its business and operations, the Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and the Company can give no assurance that these plans or expectations will be achieved. Factors that could cause actual results to differ materially from historical results or from management’s expectations that are expressed in or implied by the Company’s forward-looking statements include, but are not limited to, the effects of or changes in:

• market interest rates and inflation rates and their impacts on economic conditions, customer behavior and the Company’s funding costs;
• general economic conditions in the markets in which the Company operates and in which its loans are concentrated, including employment levels, rates of economic growth, and real estate values;
• the quality or composition of the Company’s loan and investment portfolios;
• monetary and fiscal policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System;
• demand for loan products and financial services in the Company’s market area;
• the Company’s ability to manage its growth or implement its growth strategy, the Company’s ability to improve asset quality and net interest margin, and the Company’s ability to control operating expenses and losses on nonperforming assets;
• technological risks and developments, and cyber threats, attacks or events;
• competition for financial products and services within our markets;
• the potential adverse effects of unusual and infrequently occurring events, such as wealth-related disasters, terrorist acts, geopolitical conflicts (such as the ongoing war between Russia and Ukraine) or public health events (such as the COVID-19 pandemic), with such potential adverse effects including adverse effects on the ability of the Company’s borrowers to satisfy their obligations to the Company, on the value of collateral securing the Company’s loans, or on demand for the Company’s products and services;
• performance by the Company’s counterparties or vendors;
• the legislative and regulatory climate, including laws and regulations concerning taxes, banking, securities, insurance and healthcare with which the Company and its subsidiaries must comply;
• changes to applicable accounting principles or guidelines, or implementation of new accounting principles or guidelines; and
• other factors, many of which may be beyond the Company’s control.

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. Forward-looking statements speak only as of the date they are made. The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statement that may be made from time to time on behalf of the Company, whether as a result of new information, future events or otherwise.

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