RED BLUFF, Calif., January 24, 2024--(BUSINESS WIRE)--Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter and full year ended December 31, 2023.
The Company reported net income of $1,892,000 for the three months ended December 31, 2023 compared to net income of $1,926,000 for the same period last year. Diluted earnings per share were $1.24 for the three months ended December 31, 2023 compared to $1.27 for the same period last year.
The return on average assets for the three months ended December 31, 2023 was 1.19% and the return on average equity was 18.94%. The tax-equivalent net interest margin was 3.55% for the three months ended December 31, 2023 compared to 3.61% for the same period last year.
For the year ended December 31, 2023, the Company reported net income of $7,371,000 compared to net income of $7,243,000 for the same period last year. Diluted earnings per share were $4.84 for the year ended December 31, 2023 compared to $4.74 for the same period last year.
The return on average assets for the year ended December 31, 2023 was 1.18% and the return on average equity was 19.36%.
President and CEO, Matt Moseley stated, "2023 was a challenging year for the financial industry as a whole due to the interest rate environment as well as the failure of a few large regional banks earlier in the year. Cornerstone Community Bank navigated those challenges well due to our community bank business model that focuses on taking care of the needs of our customers and truly valuing them. I am very proud of our team and thankful to the communities we serve for another great year."
Net Interest Income
Net interest income increased to $5,439,000 for the quarter ended December 31, 2023 compared to $5,156,000 for the same quarter last year. For the year ended December 31, 2023, net interest income increased to $21,805,000 compared to $19,307,000 for the same period last year.
Provision for credit losses on loans
No provision for credit losses on loans was recorded for the three months ended December 31, 2023 nor the three months ended December 31, 2022. For the year ended December 31, 2023, the Company recorded a $530,000 provision for credit losses on loans compared to $113,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2023 was $358,000 compared to $265,000 for the quarter ended December 31, 2022. For the year ended December 31, 2023, noninterest income was $1,389,000 compared to $1,060,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $3,173,000 for the quarter ended December 31, 2023 compared to $2,750,000 for the same period last year. For the year ended December 31, 2023, non-interest expense was $12,449,000 compared to $10,118,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income, at December 31, 2023 were $482.2 million compared to $420.4 million at December 31, 2022.
Total deposits were $564.5 million at December 31, 2023 compared to total deposits of $534.8 million at December 31, 2022.
Credit Quality
The allowance for credit losses on loans was $5,813,000, or 1.21% of loans, net of unearned income, at December 31, 2023, compared to $5,159,000, or 1.23% of loans, net of unearned income, at December 31, 2022. There were no nonperforming assets at December 31, 2023 and December 31, 2022.
Capital
At December 31, 2023, shareholders’ equity totaled $43.2 million compared to $33.3 million at December 31, 2022. At December 31, 2023, the Company's book value per common share was $29.16 compared to $22.48 at December 31, 2022.
At December 31, 2023, the Bank’s estimated total risk-based capital ratio was 12.83% and its tier 1 capital to risk weighted assets ratio was 11.74%. The Bank remains well capitalized under the regulatory framework for prompt corrective action.
About Cornerstone Community Bancorp
Cornerstone Community Bancorp, a bank holding company headquartered in Red Bluff, California, serves the Red Bluff, Redding and Anderson communities through its wholly-owned subsidiary, Cornerstone Community Bank with a headquarters office in Red Bluff, two banking offices in Redding and one in Anderson. The Bank provides commercial banking services to small and mid-size businesses, including professional service firms, real estate developers and investors and not-for-profit organizations and to their owners and other individuals. Additional information about the Bank is available on its website at www.bankcornerstone.com
Forward-Looking Statements
This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Cornerstone Community Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, natural disasters (such as wildfires and earthquakes), pandemics such as COVID-19 and the economic impact caused directly by the disease and by government responses thereto, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation (including the Coronavirus Aid, Relief and Economic Security Act of 2022), interruptions of utility service in our markets for sustained periods, and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting Cornerstone Community Bancorp's operations, pricing, products and services. Forward-looking statements speak only as of the date they are made.Except as required by law, Cornerstone Community Bancorp does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
12/31/23
09/30/23
06/30/23
03/31/23
12/31/22
ASSETS
Cash and due from banks
$
8,623
$
5,492
$
8,482
$
7,365
$
5,628
Federal funds sold
-
-
-
124
123
Interest-bearing deposits
19,694
23,970
34,076
44,706
25,212
Investment securities
93,065
90,086
93,889
95,139
94,435
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
482,212
470,060
447,339
431,475
420,415
Allowance for loan losses
(5,813
)
(5,813
)
(5,617
)
(5,397
)
(5,159
)
Loans, net
476,399
464,247
441,722
426,079
415,256
Premises and equipment, net
14,326
14,437
14,492
14,492
14,601
Other assets
30,827
31,241
29,724
28,906
27,326
Total assets
$
642,934
$
629,472
$
622,385
$
616,812
$
582,581
LIABILITIES
Deposits:
Demand noninterest-bearing
$
101,396
$
100,791
$
109,775
$
125,008
$
126,946
Demand interest-bearing
166,221
190,645
179,508
165,203
136,655
Money market and savings
174,882
176,373
177,976
180,996
182,787
Time deposits
122,035
107,894
101,991
94,542
88,430
Total deposits
564,534
575,703
569,250
565,749
534,818
Borrowings and other obligations
20,000
-
-
-
-
Subordinated debentures
11,769
11,762
11,756
11,750
11,744
Interest payable and other liabilities
3,464
3,512
3,070
2,954
2,755
Total liabilities
599,767
590,977
584,076
580,452
549,317
SHAREHOLDERS' EQUITY
Common stock
15,163
15,130
15,140
15,113
15,075
Retained Earnings
37,639
35,747
33,827
31,963
30,294
Accumulated other comprehensive income (loss)
(9,635
)
(12,382
)
(10,658
)
(10,716
)
(12,105
)
Total shareholders' equity
43,167
38,495
38,309
36,360
33,264
Total liabilities and shareholders' equity
$
642,934
$
629,472
$
622,385
$
616,812
$
582,581
Total equity / total assets
6.71%
6.12%
6.16%
5.89%
5.71%
Book value per share
$
29.16
$
26.01
$
25.89
$
24.57
$
22.48
Shares outstanding
1,480,472
1,479,862
1,479,862
1,479,862
1,479,862
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
Year ended
12/31/23
09/30/23
12/31/22
12/31/23
12/31/22
INTEREST INCOME
Loans
$
6,862
$
6,517
$
5,178
$
24,885
$
19,029
Federal funds sold
-
-
1
3
2
Investment securities
751
739
676
2,948
2,054
Other
426
558
515
2,118
1,073
Total interest income
8,039
7,814
6,370
29,954
22,158
INTEREST EXPENSE
Deposits:
Interest-bearing demand
291
289
214
1,036
454
Money market and savings
904
798
450
2,956
974
Time deposits
1,245
933
401
3,551
821
Other
160
148
149
606
602
Total interest expense
2,600
2,168
1,214
8,149
2,851
Net interest income
5,439
5,646
5,156
21,805
19,307
Provision for credit losses
-
200
-
530
113
Net interest income after provision for credit losses
