Cornerstone Community Bancorp (OTC Pink: CRSB) announced
today its financial results for the second quarter ended June 30,
2024.
The Company reported net income of $1,443,000 for the three
months ended June 30, 2024 compared to net income of $1,864,000 for
the same period last year. Diluted earnings per share were $0.94
for the three months ended June 30, 2024 compared to $1.22 for the
same period last year.
The return on average assets for the three months ended June 30,
2024 was 0.86% and the return on average equity was 12.86%. The
tax-equivalent net interest margin was 3.21% for the three months
ended June 30, 2024 compared to 3.73% for the same period last
year.
For the six months ended June 30, 2024, the Company reported net
income of $2,837,000 compared to net income of $3,559,000 for the
same period last year. Diluted earnings per share were $1.85 for
the six months ended June 30, 2024 compared to $2.34 for the same
period last year.
The return on average assets for the six months ended June 30,
2024 was 0.86% and the return on average equity was 12.78%.
President and CEO, Matt Moseley stated, “The banking industry
continues to experience margin pressure but Cornerstone has seen a
slight improvement in net interest margin as deposit cost increases
have begun to flatten out and assets reprice higher. This trend is
expected to continue in the near term. Core relationships continue
to expand due to the bank’s focus on personalized customer service
combined with top tier digital banking and other desirable product
offerings.”
Net Interest Income
Net interest income decreased to $5,107,000 for the quarter
ended June 30, 2024 compared to $5,541,000 for the same quarter
last year. For the six months ended June 30, 2024, net interest
income decreased to $9,991,000 compared to $10,720,000 for the same
period last year.
Provision for credit losses on loans
The Company recorded a $169,000 provision for credit losses on
loans for the three months ended June 30, 2024 compared to $220,000
for the three months ended June 30, 2023. For the six months ended
June 30, 2024, the Company recorded a $313,000 provision for credit
losses on loans compared to $330,000 for the same period last
year.
Non-Interest Income
Non-interest income for the quarter ended June 30, 2024 was
$367,000 compared to $353,000 for the quarter ended June 30, 2023.
For the six months ended June 30, 2024, noninterest income was
$723,000 compared to $662,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $3,310,000 for the quarter ended June
30, 2024 compared to $3,085,000 for the same period last year. For
the six months ended June 30, 2024, non-interest expense was
$6,513,000 compared to $6,108,000 for the same period last
year.
Balance Sheet
Total loans, net of unearned income, at June 30, 2024 were
$498.0 million compared to $447.3 million at June 30, 2023.
Total deposits were $595.4 million at June 30, 2024 compared to
total deposits of $569.3 million at June 30, 2023.
Credit Quality
The allowance for credit losses on loans was $6,126,000, or
1.23% of loans, net of unearned income, at June 30, 2024, compared
to $5,617,000, or 1.26% of loans, net of unearned income, at June
30, 2023. Nonperforming assets were $362,000 at June 30, 2024
compared to $233,000 at June 30, 2023.
Capital
At June 30, 2024, shareholders’ equity totaled $45.8 million
compared to $38.3 million at June 30, 2023. At June 30, 2024, the
Company's book value per common share was $30.78 compared to $25.89
at June 30, 2023.
At June 30, 2024, the Bank’s estimated total risk-based capital
ratio was 12.85% and its tier 1 capital to risk weighted assets
ratio was 11.75%. 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)
06/30/24 03/31/24 12/31/23 09/30/23
06/30/23 ASSETS Cash and due from banks
$
7,571
$
6,389
$
8,623
$
5,492
$
8,482
Federal funds sold
-
-
-
-
-
Interest bearing deposits in other financial institutions
43,025
45,955
19,694
23,970
34,076
Available for sale debt securities, at fair value
89,089
90,767
93,065
90,086
93,889
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
498,048
488,179
482,212
470,060
447,339
Allowance for credit losses on loans
(6,126
)
(5,957
)
(5,813
)
(5,813
)
(5,617
)
Loans, net
491,922
482,222
476,399
464,247
441,722
Premises and equipment, net
14,418
14,433
14,326
14,437
14,492
Other assets
32,514
30,812
30,827
31,241
29,724
Total assets
$
678,537
$
670,578
$
642,934
$
629,472
$
622,385
LIABILITIES Deposits: Demand noninterest-bearing
$
102,419
$
99,278
$
101,396
$
100,791
$
109,775
Demand interest-bearing
167,720
159,542
166,221
190,645
179,508
Money market and savings
176,644
182,797
174,882
176,373
177,976
Time deposits
148,582
148,384
122,035
107,894
101,991
Total deposits
595,365
590,001
564,534
575,703
569,250
Borrowings and other obligations
20,000
20,000
20,000
-
-
Subordinated debentures
11,781
11,775
11,769
11,762
11,756
Interest payable and other liabilities
5,637
4,252
3,464
3,512
3,070
Total liabilities
632,784
626,028
599,767
590,977
584,076
SHAREHOLDERS' EQUITY Common stock
15,268
15,231
15,163
15,130
15,140
Retained Earnings
40,476
39,033
37,639
35,747
33,827
Accumulated other comprehensive income (loss)
(9,991
)
(9,714
)
(9,635
)
(12,382
)
(10,658
)
Total shareholders' equity
45,754
44,550
43,167
38,495
38,309
Total liabilities and shareholders' equity
$
678,537
$
670,578
$
642,934
$
629,472
$
622,385
Total equity / total assets
6.74
%
6.64
%
6.71
%
6.12
%
6.16
%
Book value per share
$
30.78
$
29.99
$
29.16
$
26.01
$
25.89
Shares outstanding
1,486,692
1,485,472
1,480,472
1,479,862
1,479,862
CORNERSTONE COMMUNITY BANCORP CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) (Dollars in Thousands)
Three months ended Six months
ended 06/30/24 03/31/24 06/30/23
06/30/24 06/30/23 INTEREST INCOME Loans
$
7,363
$
7,006
$
5,955
$
14,369
$
11,506
Federal funds sold
-
-
2
-
3
Investment securities
792
728
734
1,520
1,458
Other
611
419
667
1,030
1,134
Total interest income
8,766
8,152
7,358
16,919
14,101
INTEREST EXPENSE Deposits: Interest-bearing demand
331
301
209
632
456
Money market and savings
1,217
1,146
675
2,363
1,254
Time deposits
1,722
1,432
784
3,154
1,373
Other
389
389
149
778
298
Total interest expense
3,659
3,268
1,817
6,927
3,381
Net interest income
5,107
4,884
5,541
9,991
10,720
Provision for credit losses
169
144
220
313
330
Net interest income after provision for credit losses
4,938
4,740
5,321
9,678
10,390
NON-INTEREST INCOME Service charges on deposit
accounts
72
75
75
147
137
Gain on sale of loans
-
-
-
-
-
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
-
-
-
Other non-interest income
295
281
278
576
525
Total non-interest income
367
356
353
723
662
OPERATING EXPENSES Salaries and benefits
1,880
1,801
1,668
3,681
3,317
Premises and fixed assets
265
267
266
532
579
Other
1,165
1,134
1,151
2,299
2,212
Total operating expenses
3,310
3,202
3,085
6,513
6,108
Income before income taxes
1,995
1,894
2,589
3,889
4,944
Income taxes
552
500
725
1,052
1,385
NET INCOME
$
1,443
$
1,394
$
1,864
$
2,837
$
3,559
EARNINGS PER SHARE Basic earnings per share
$
0.97
$
0.94
$
1.26
$
1.91
$
2.41
Diluted earnings per share
$
0.94
$
0.91
$
1.22
$
1.85
$
2.34
Average common shares outstanding
1,486,370
1,484,318
1,479,862
1,485,344
1,479,862
Average common and equivalent shares outstanding
1,529,714
1,529,931
1,522,072
1,529,814
1,523,716
PERFORMANCE MEASURES Return on average assets
0.86
%
0.86
%
1.20
%
0.86
%
1.16
%
Return on average equity
12.86
%
12.69
%
19.71
%
12.78
%
19.47
%
Tax-equivalent net interest margin
3.21
%
3.18
%
3.73
%
3.19
%
3.69
%
Efficiency ratio
60.47
%
61.10
%
52.34
%
60.78
%
53.66
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718682299/en/
Matthew B. Moseley President & CEO 530.222.1460
Patrick E. Phelan Chief Financial Officer 530.222.1460