RED BLUFF, Calif., April 24, 2024--(BUSINESS WIRE)--Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the first quarter ended March 31, 2024.
The Company reported net income of $1,394,000 for the three months ended March 31, 2024 compared to net income of $1,695,000 for the same period last year. Diluted earnings per share were $0.91 for the three months ended March 31, 2024 compared to $1.11 for the same period last year.
The return on average assets for the three months ended March 31, 2024 was 0.86% and the return on average equity was 12.69%. The tax-equivalent net interest margin was 3.18% for the three months ended March 31, 2024 compared to 3.65% for the same period last year.
President and CEO, Matt Moseley stated, "The banking industry as a whole continues to be challenged with increasing liability costs and deposit competition. While Cornerstone has experienced an increase in cost of funds, the rate of increase is stabilizing and we continue to gain market share in the communities we serve. In March, Cornerstone rolled out a new and state of the art digital banking platform. The investment in new customer facing technology is already paying off and we have acquired new relationships as a result. In April, recognizing an opportune time to hedge interest rate risk, Cornerstone entered into an interest rate swap agreement that provides protection in a rising rate environment with limited overall cost if rates fall. While the economy will certainly present challenges, as it always does, our team is well prepared and will continue to execute on our strategy to run a safe and sound community bank that generates strong returns for our shareholders."
Net Interest Income
Net interest income decreased to $4,884,000 for the quarter ended March 31, 2024 compared to $5,180,000 for the same quarter last year.
Provision for credit losses on loans
The Company recorded a $144,000 provision for credit losses on loans for the quarter ended March 31, 2024 compared to $110,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended March 31, 2024 was $356,000 compared to $310,000 for the quarter ended March 31, 2023.
Non-Interest Expense
Non-interest expense was $3,202,000 for the quarter ended March 31, 2024 compared to $3,024,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income, at March 31, 2024 were $488.2 million compared to $431.5 million at March 31, 2023.
Total deposits were $590.0 million at March 31, 2024 compared to total deposits of $565.7 million at March 31, 2023.
Credit Quality
The allowance for credit losses on loans was $5,957,000, or 1.22% of loans, net of unearned income, at March 31, 2024, compared to $5,397,000, or 1.25% of loans, net of unearned income, at March 31, 2023. There were no nonperforming assets at March 31, 2024 compared to $233,000 at March 31, 2023.
Capital
At March 31, 2024, shareholders’ equity totaled $44.6 million compared to $36.4 million at March 31, 2023. At March 31, 2024, the Company's book value per common share was $29.99 compared to $24.57 at March 31, 2023.
At March 31, 2024, the Bank’s estimated total risk-based capital ratio was 12.89% and its tier 1 capital to risk weighted assets ratio was 11.80%. 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)
03/31/24
12/31/23
09/30/23
06/30/23
03/31/23
ASSETS
Cash and due from banks
$
6,389
$
8,623
$
5,492
$
8,482
$
7,365
Federal funds sold
-
-
-
-
124
Interest bearing deposits in other financial institutions
45,955
19,694
23,970
34,076
44,706
Available for sale debt securities, at fair value
90,767
93,065
90,086
93,889
95,139
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
488,179
482,212
470,060
447,339
431,475
Allowance for credit losses on loans
(5,957
)
(5,813
)
(5,813
)
(5,617
)
(5,397
)
Loans, net
482,222
476,399
464,247
441,722
426,079
Premises and equipment, net
14,433
14,326
14,437
14,492
14,492
Other assets
30,812
30,827
31,241
29,724
28,906
Total assets
$
670,578
$
642,934
$
629,472
$
622,385
$
616,812
LIABILITIES
Deposits:
Demand noninterest-bearing
$
99,278
$
101,396
$
100,791
$
109,775
$
125,008
Demand interest-bearing
159,542
166,221
190,645
179,508
165,203
Money market and savings
182,797
174,882
176,373
177,976
180,996
Time deposits
148,384
122,035
107,894
101,991
94,542
Total deposits
590,001
564,534
575,703
569,250
565,749
Borrowings and other obligations
20,000
20,000
-
-
-
Subordinated debentures
11,775
11,769
11,762
11,756
11,750
Interest payable and other liabilities
4,252
3,464
3,512
3,070
2,954
Total liabilities
626,028
599,767
590,977
584,076
580,452
SHAREHOLDERS' EQUITY
Common stock
15,231
15,163
15,130
15,140
15,113
Retained Earnings
39,033
37,639
35,747
33,827
31,963
Accumulated other comprehensive income (loss)
(9,714
)
(9,635
)
(12,382
)
(10,658
)
(10,716
)
Total shareholders' equity
44,550
43,167
38,495
38,309
36,360
Total liabilities and shareholders' equity
$
670,578
$
642,934
$
629,472
$
622,385
$
616,812
Total equity / total assets
6.64
%
6.71
%
6.12
%
6.16
%
5.89
%
Book value per share
$
29.99
$
29.16
$
26.01
$
25.89
$
24.57
Shares outstanding
1,485,472
1,480,472
1,479,862
1,479,862
1,479,862
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
03/31/24
12/31/23
03/31/23
INTEREST INCOME
Loans
$
7,006
$
6,862
$
5,551
Federal funds sold
-
-
1
Investment securities
728
751
724
Other
419
426
467
Total interest income
8,152
8,039
6,744
INTEREST EXPENSE
Deposits:
Interest-bearing demand
301
291
247
Money market and savings
1,146
904
579
Time deposits
1,432
1,245
589
Other
389
160
149
Total interest expense
3,268
2,600
1,564
Net interest income
4,884
5,439
5,180
Provision for credit losses
144
-
110
Net interest income after provision for credit losses
