Pinnacle Bankshares Corporation Announces Increase to Quarterly Cash Dividend

Rhea-AI Summary

Pinnacle Bankshares Corporation (OTCQX: PPBN) declared a cash dividend of $0.20 per share on February 14, 2023, payable on March 10, 2023. This dividend, which is 11% higher than last quarter's $0.18, marks the 42nd consecutive quarter of dividend declarations. The increase is attributed to record high earnings in 2022. President Aubrey H. Hall, III emphasized the importance of building capital through retained earnings, supporting the bank’s growth. Pinnacle serves Central and Southern Virginia with 18 branches.

Positive

• Dividend increased to $0.20 per share, reflecting strong earnings.
• 42 consecutive quarters of dividend declarations.
• Record high earnings reported in 2022.

Negative

• None.

ALTAVISTA, Va., Feb. 15, 2023 (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 $0.20 per share on February 14, 2023, payable March 10, 2023, to shareholders of record as of February 24, 2023.

The $0.20 per share cash dividend is $0.02, or 11%, higher than the $0.18 dividend paid last quarter and marks the forty-second consecutive quarter that a dividend has been declared.

“Pinnacle is pleased to increase its quarterly cash dividend to $0.20 per share as a result of record high earnings generated during 2022,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. Mr. Hall further commented, “While we are pleased to provide this type of return on investment to our shareholders, we must also continue to build capital through retained earnings to support the size of our institution.”

Pinnacle Bankshares Corporation is a 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, to include 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, to include one within the Town of Chatham. First National Bank is celebrating its 115th 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 bryanlemley@1stnatbk.com

FAQ

What is the amount of the dividend declared by Pinnacle Bankshares Corporation?

The dividend declared is $0.20 per share.

When is the dividend payment date for Pinnacle Bankshares Corporation?

The dividend payment date is March 10, 2023.

What was the previous dividend amount before the latest increase?

The previous dividend amount was $0.18 per share.

How many consecutive quarters has Pinnacle Bankshares Corporation declared dividends?

Pinnacle Bankshares Corporation has declared dividends for 42 consecutive quarters.

What factors contributed to the increase in the dividend by Pinnacle Bankshares Corporation?

The increase in the dividend is attributed to record high earnings generated during 2022.