The Board of Directors for Pinnacle Bankshares Corporation (the “Company”) (OTCQB: PPBN) declared a cash dividend of $0.05 per share on October 9, 2012 payable November 2, 2012 to shareholders of record as of October 19, 2012. Pinnacle Bankshares is the one-bank holding company for First National Bank (the “Bank”), headquartered in Altavista, Virginia.
“Yesterday our Board accomplished one of its top priorities for 2012 with the declaration of a cash dividend to be paid to our shareholders prior to the end of the year,” stated Aubrey H. Hall, III, President & CEO of Pinnacle Bankshares and First National Bank. The Company last paid a cash dividend to shareholders during the fourth quarter of 2010. The Board of Directors did not declare a cash dividend during 2011 due to the potential for higher capital standards in this uncertain regulatory environment and a desire to retain earnings in a fragile economy. “Material improvement in the Bank’s credit quality and improved year to date earnings through the first three quarters of 2012 as compared to 2011 provided justification for payment of a cash dividend at this time,” stated Mr. Hall. Anticipated costs savings from deregistration from the Securities and Exchange Commission, as announced last month, further supported the action. Additionally, the Company and the Bank remain well capitalized per all regulatory definitions.
In declaring the cash dividend the Board noted a strong desire to provide consistent returns to the Company’s shareholder base; however it was careful not to make any commitment for future cash dividends due to continued uncertainty in regards to the economy and the regulatory environment. Per Mr. Hall, “While we are becoming more confident about our position moving forward, a number of factors will need to be considered in making decisions to declare future cash dividends.”
Pinnacle Bankshares expects to release its third quarter 2012 earnings by the end of October.