RED BLUFF, Calif.–(BUSINESS WIRE)–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 |
% |
|
Contacts
Matthew B. Moseley
President & CEO
530.222.1460
Patrick E. Phelan
Chief Financial Officer
530.222.1460