RED BLUFF, Calif., January 29, 2025--(BUSINESS WIRE)--Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter and full year ended December 31, 2024.
The Company reported net income of $1,809,000 for the three months ended December 31, 2024 compared to net income of $1,892,000 for the same period last year. Diluted earnings per share were $1.18 for the three months ended December 31, 2024 compared to diluted earnings per share of $1.24 for the same period last year.
For the year ended December 31, 2024, the Company reported a net loss of $785,000 compared to net income of $7,371,000 for the same period last year. Diluted loss per share was $(0.51) for the year ended December 31, 2024 compared to earnings per share of $4.84 for the same period last year. The net loss for the year was primarily due to the charge-off of three related agricultural loans in the aggregate amount of $9.4 million during the third quarter of 2024.
President and CEO, Matt Moseley stated, "We reported a strong fourth quarter with $1.8 million in net income, a 1.08% return on average assets and a 17.28% return on average equity. This morning, Plumas Bancorp and Cornerstone Community Bancorp jointly announced the signing of a definitive merger agreement. We are excited about the opportunity to join forces with Plumas, bringing our banks together to carry on our focus of providing our customers, employees and all of our stakeholders with superior products, services and support."
Net Interest Income
Net interest income decreased to $5,170,000 for the quarter ended December 31, 2024 compared to $5,439,000 for the same quarter last year. For the year ended December 31, 2024, net interest income decreased to $19,582,000 compared to $21,805,000 for the same period last year.
The tax-equivalent net interest margin was 3.23% for the quarter ended December 31, 2024 compared to 3.55% for the same quarter of last year. For the year ended December 31, 2024, the tax-equivalent net interest margin was 3.09% compared to 3.65% for the same period last year.
Provision for credit losses on loans
No provision for credit losses on loans was recorded during the three months ended December 31, 2024 and December 31, 2023. For the year ended December 31, 2024, the Company recorded a $9.7 million provision for credit losses on loans compared to $530,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2024 was $374,000 compared to $358,000 for the quarter ended December 31, 2023. For the year ended December 31, 2024, noninterest income was $1,451,000 compared to $1,389,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $3,227,000 for the quarter ended December 31, 2024 compared to $3,173,000 for the same period last year. For the year ended December 31, 2024, non-interest expense was $12,824,000 compared to $12,449,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income, at December 31, 2024 were $498.9 million compared to $482.2 million at December 31, 2023.
Total deposits were $584.3 million at December 31, 2024 compared to total deposits of $564.5 million at December 31, 2023.
Credit Quality
The allowance for credit losses on loans was $6,164,000, or 1.24% of loans, net of unearned income, at December 31, 2024, compared to $5,813,000, or 1.21% of loans, net of unearned income, at December 31, 2023. Nonperforming assets were $409,000 at December 31, 2024. There were no nonperforming assets at December 31, 2023.
Capital
At December 31, 2024, shareholders’ equity totaled $42.6 million compared to $43.2 million at December 31, 2023. At December 31, 2024, the Company's book value per common share was $28.37 compared to $29.16 at December 31, 2023.
At December 31, 2024, the Bank’s estimated total risk-based capital ratio was 12.38% and its tier 1 capital to risk weighted assets ratio was 11.25%. 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 2023), 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)
12/31/24
09/30/24
06/30/24
03/31/24
12/31/23
ASSETS
Cash and due from banks
$
4,837
$
9,127
$
7,571
$
6,389
$
8,623
Federal funds sold
-
-
-
-
-
Interest bearing deposits in other financial institutions
25,078
40,306
43,025
45,955
19,694
Available for sale debt securities, at fair value
87,492
90,616
89,089
90,767
93,065
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
498,863
487,125
498,048
488,179
482,212
Allowance for credit losses on loans
(6,164
)
(6,164
)
(6,126
)
(5,957
)
(5,813
)
Loans, net
492,699
480,962
491,922
482,222
476,399
Premises and equipment, net
14,137
14,405
14,418
14,433
14,326
Other assets
33,683
33,780
32,514
30,812
30,827
Total assets
$
657,925
$
669,197
$
678,537
$
670,578
$
642,934
LIABILITIES
Deposits:
Demand noninterest-bearing
$
89,525
$
91,936
$
102,419
$
99,278
$
101,396
Demand interest-bearing
158,649
166,505
167,720
159,542
166,221
Money market and savings
186,642
186,186
176,644
182,797
174,882
Time deposits
149,452
144,443
148,582
148,384
122,035
Total deposits
584,269
589,069
595,365
590,001
564,534
Borrowings and other obligations
15,000
20,000
20,000
20,000
20,000
Subordinated debentures
11,795
11,788
11,781
11,775
11,769
Interest payable and other liabilities
4,275
7,409
5,637
4,252
3,464
Total liabilities
615,339
628,266
632,784
626,028
599,767
SHAREHOLDERS' EQUITY
Common stock
15,442
15,337
15,268
15,231
15,163
Retained Earnings
36,854
35,045
40,476
39,033
37,639
Accumulated other comprehensive income (loss)
(9,709
)
(9,452
)
(9,991
)
(9,714
)
(9,635
)
Total shareholders' equity
42,586
40,930
45,754
44,550
43,167
Total liabilities and shareholders' equity
$
657,925
$
669,197
$
678,537
$
670,578
$
642,934
Total equity / total assets
6.47
%
6.12
%
6.74
%
6.64
%
6.71
%
Book value per share
$
28.37
$
27.44
$
30.78
$
29.99
$
29.16
Shares outstanding
1,501,091
1,491,692
1,486,692
1,485,472
1,480,472
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
Year ended
12/31/24
09/30/24
12/31/23
12/31/24
12/31/23
INTEREST INCOME
Loans
$
7,292
$
6,795
$
6,862
$
28,456
$
24,885
Federal funds sold
-
-
-
-
3
Investment securities
664
819
751
3,003
2,948
Other
661
650
426
2,341
2,118
Total interest income
8,617
8,264
8,039
33,800
29,954
INTEREST EXPENSE
Deposits:
Interest-bearing demand
329
378
291
1,339
1,036
Money market and savings
1,196
1,268
904
4,827
2,956
Time deposits
1,617
1,806
1,245
6,577
3,551
Other
305
392
160
1,475
606
Total interest expense
3,447
3,844
2,600
14,218
8,149
Net interest income
5,170
4,420
5,439
19,582
21,805
Provision for credit losses on loans
-
9,400
-
9,713
530
Net interest income after provision for credit losses
