Pinnacle Bankshares Corporation (OTCPK:PPBN) announced that it has entered into a subordinated note purchase agreement with sixteen certain qualified institutional buyers and accredited investors for private placement of 5.25% fixed-to-floating rate subordinated notes due 2030 for gross proceeds of $8,000,000 on September 18, 2020. The notes will initially bear interest at 5.25% per annum, beginning September 18, 2020 to but excluding September 30, 2025, payable quarterly in arrears. From and including September 30, 2025 to but excluding September 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 513 basis points, payable quarterly in arrears. Beginning on September 30, 2025 through maturity, the notes may be redeemed, at its option, on any scheduled interest payment date. The notes will mature on September 30, 2030. The notes will be unsecured, subordinated obligations of the company and will rank junior in right of payment to its existing and future senior indebtedness. The notes are restricted securities. The notes are not convertible into common stock or preferred stock, and are not callable by the holders. The notes were issued pursuant to exemption provided under Rule 506(b) of Regulation D and Section 4(a)(2) of the Securities Act of 1933, as amended.