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Cornerstone Community Bancorp Reports 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 03/31/24 03/31/24 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23 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
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended Three months ended Three months ended
----------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
03/31/24 03/31/24 03/31/24 12/31/23 12/31/23 03/31/23 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 %
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424202657/en/
SOURCE: Cornerstone Community Bancorp
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Matthew B. Moseley President & CEO 530.222.1460 Patrick E. Phelan Chief Financial Officer 530.222.1460
COMTEX_451355141/1006/2024-04-24T14:57:01