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
4,740
5,439
5,070
NON-INTEREST INCOME Service charges on deposit
accounts
75
70
62
Gain on sale of loans
-
-
-
Gain (loss) on sale of other real estate owned
-
-
-
Gain (loss) on sale of securities
-
-
-
Other non-interest income
281
288
247
Total non-interest income
356
358
310
OPERATING EXPENSES Salaries and benefits
1,801
1,865
1,649
Premises and fixed assets
267
263
313
Other
1,134
1,045
1,061
Total operating expenses
3,202
3,173
3,024
Income before income taxes
1,894
2,624
2,355
Income taxes
500
732
660
NET INCOME
$
1,394
$
1,892
$
1,695
EARNINGS PER SHARE Basic earnings per share
$
0.94
$
1.28
$
1.15
Diluted earnings per share
$
0.91
$
1.24
$
1.11
Average common shares outstanding
1,484,318
1,479,948
1,479,862
Average common and equivalent shares outstanding
1,529,931
1,523,488
1,525,267
PERFORMANCE MEASURES Return on average assets
0.86
%
1.19
%
1.13
%
Return on average equity
12.69
%
18.94
%
19.20
%
Tax-equivalent net interest margin
3.18
%
3.55
%
3.65
%
Efficiency ratio
61.10
%
54.74
%
55.09
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424202657/en/
Matthew B. Moseley President & CEO 530.222.1460
Patrick E. Phelan Chief Financial Officer 530.222.1460