ELBERTON, Ga., April 24, 2026 (GLOBE NEWSWIRE) -- Vallant Financial, Inc. (OTCQX: VLNT) (“Vallant”), the holding company of Vallant Bank, today announced its results of operations for the quarter ended March 31, 2026. Vallant also announced the results of operations of Morris State Bancshares, Inc. (“Morris”), which merged into Vallant effective April 1, 2026.

“I am incredibly excited about the completion of the merger with Morris to position Vallant as a leading Georgia-based community bank holding company,” said L. Jackson McConnell, Jr., Chairman and CEO of Vallant. “Each company went into the merger with strong performance, and Vallant has strong prospects for the future.”

Vallant Financial, Inc. Quarterly Report: (Highlights)

• Vallant, formerly known as Pinnacle Financial Corporation, completed its merger with Morris effective April 1, 2026.
• Vallant and Morris operated as independent companies through March 31, 2026.
• Effective April 1, 2026, the combined company operates as Vallant Financial, Inc.
• Effective April 1, 2026, the name of Pinnacle Bank was changed to Vallant Bank. The trade names “Pinnacle Bank, a division of Vallant Bank” and “Morris Bank, a division of Vallant Bank” will be used pending information systems conversion, expected to occur during the second quarter.
• Consolidating financial statements showing both Vallant and Morris are not yet available.
• Total assets for the combined company on a pro forma basis as of March 31, 2026, were $3.98 billion.
• Pinnacle Bank experienced loan growth of 3.34% as compared to year end 2025.
• Morris Bank experienced a decrease in total loans of 1.96% as compared to year end 2025.
• Total deposits for both banks increased during the first quarter.
• Vallant posted quarterly net income of $6.4 million, or $4.63 per diluted share, compared to $6.3 million, or $4.51 per diluted share, in the same quarter last year.
• Due to merger-related charges of $14.5 million, Morris posted a loss of $6.75 million in the first quarter compared to net income of $6.37 million or $0.60 per share in the prior quarter.
• Full consolidation will occur in the second quarter and be reflected in the financial release for June 30, 2026.

First Quarter Results for Vallant and Pinnacle Bank (excluding Morris and Morris Bank)

Vallant grew total assets 3.43% quarter over quarter to $2.34 billion. The growth was driven by quarterly growth in deposits of 3.80% from $1.99 billion at year end to $2.06 billion as of March 31, 2026. Total deposits were $2.02 billion at the end of the same quarter last year. First quarter net loan growth totaled 3.34%, excluding mortgage loans held for sale, with loans at $1.73 billion for the first quarter of 2026, compared to $1.67 billion at year end 2025.

Net income for the quarter ended March 31, 2026, was $6.4 million, compared to $10.4 million for the fourth quarter of 2025 and $6.3 million for the first quarter of 2025. Fourth quarter 2025 net income was positively impacted by a one-time income recognition event. Net interest margin increased to 4.44% for the first quarter of 2026, compared to 4.30% for the fourth quarter of 2025 and 4.11% for the first quarter of 2025. The improved margin is a result of increased yield on loans and a lower cost of funds. The margin improvement in recent months is expected to moderate in coming quarters. Average cost of funds for the first quarter of 2026 was 1.17%, compared to 1.30% for the fourth quarter of 2025 and 1.33% for the first quarter of 2025.

Return on average assets (annualized), at the bank level, for the first quarter of 2026 was 1.19%, compared to 1.30% for the fourth quarter of 2025 and 1.18% for the first quarter of 2025. Fully diluted earnings per share for the first quarter totaled $4.63 as compared to $4.51 for the first quarter 2025. Earnings per share for the fourth quarter was elevated at $7.47 due to the one-time event referenced earlier. Vallant paid a dividend of $1.45 per share during the first quarter.

The Bank’s asset quality remains solid, ending the quarter with total adversely classified assets to Tier 1 capital plus allowance of 6.80%. Vallant remains well capitalized with total shareholder’s equity of $219.7 million.

First Quarter Results for Morris and Morris Bank (excluding Vallant and Pinnacle Bank)

Morris grew total assets in the first quarter to $1.60 billion, an increase of $49.2 million from December 31, 2025. Morris generated $60.1 million in total deposit growth during the first quarter, a growth rate of 4.6%. Net loans decreased during the quarter by $23.8 million due to paydowns related to the sale of real estate projects. Despite the decrease in outstanding balances, loan production during the first quarter remained robust compared to prior quarters.

Due to merger-related costs of $14.5 million, net income before taxes for the first quarter declined to a net loss of $6.2 million. Excluding these one-time charges, income before taxes was $8.3 million. Net interest margin declined from 4.73% from the prior quarter to 4.51% for the first quarter, the primary driver being lower net interest income from the previously mentioned loan payoffs. Cost of funds improved from 1.84% in the fourth quarter 2025 to 1.75% for the first quarter, driven primarily by a decline in time deposit costs.

Return on average assets (annualized), at the bank level, for the first quarter of 2026 was (0.45%) compared to 1.86% for the fourth quarter of 2025 and 1.41% for the first quarter of 2025. Fully diluted earnings per share for the first quarter was ($0.63) as compared to $0.60 for the prior quarter and $0.46 for the first quarter 2025. Including the transaction dividend of $0.54 per share, Morris paid dividends of $0.83 per share during the first quarter.

Morris Bank’s asset quality remains solid, ending the quarter with total adversely classified assets to Tier 1 capital plus allowance of 10.88%. Morris remained well capitalized with total shareholders’ equity of $198.5 million. Total equity declined by $13.8 million or 6.5% during the quarter, related directly to one-time transaction expenses and dividends related to the merger with Vallant.

Vallant Financial, Inc. will present consolidated financial statements for the combined company as of and for the quarter ended June 30, 2026. Integration and conversion into one platform, as well as a complete re-branding, is scheduled for the second quarter. After opening a new office in the Augusta area in April, the combined bank operates 36 branch locations in 22 counties in Northeast, Middle and Southeast Georgia.

Forward-looking Statements

Certain statements contained in this release may not be based on historical facts and are forward-looking statements. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including, among others, the business and economic conditions; risks related to the integration of acquired businesses and any future acquisitions; changes in management personnel; interest rate risk; ability to execute on planned expansion and organic growth; credit risk and concentrations associated with Vallant’s loan portfolio; asset quality and loan charge-offs; inaccuracy of the assumptions and estimates management of Vallant makes in establishing reserves for probable loan losses and other estimates; lack of liquidity; impairment of investment securities, goodwill or other intangible assets; Vallant’s risk management strategies; increased competition; system failures or failures to prevent breaches of our network security; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes; and increases in capital requirements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. 

CONTACT:
Vallant Financial, Inc.
Anna Grant Jones
706-213-3323