Cornerstone Bancorp Earns $2.5 Million for the Fourth Quarter, and $10.9 Million for the Year 2023
- Net income for the year ended December 31, 2023, increased by 3.8% to a record $10.88 million.
- The bank's high level of liquidity contributed to profitability through a higher net interest margin for the year.
- The loan portfolio had a strong year, increasing by $39 million, and asset quality remained high.
- Tangible book value per share increased by 20.7% to $74.36 at year-end.
- Total assets declined by 3.1% to $958.8 million at year-end.
- The net interest margin decreased to 3.46% in the fourth quarter of 2023.
For the year ended December 31, 2023, net income increased
"The short duration of Cornerstone's investment portfolio and high levels of liquidity in a rising rate environment benefitted our performance in 2023," stated Gerald F. Fitzgerald, Jr., Chairman of Cornerstone Bancorp, Inc.
"Cornerstone's loan portfolio had another strong year increasing
Fourth Quarter and Full Year 2023 Highlights:
- Net income was
$2.5 million $2.54 $3.1 million $3.12 - For 2023, net income increased
3.8% , to a record$10.9 million $11.01 $10.5 million $10.54 - The net interest margin (NIM) was
3.46% in the fourth quarter of 2023, compared to3.70% in the fourth quarter of 2022. For the full year 2023, the NIM was3.56% compared to3.14% in 2022. - Total assets declined
3.1% to$958.8 million $989.1 million - Tangible shareholders' equity improved
19.4% to$73.2 million $61.4 million - Interest-bearing deposits at the Federal Reserve Bank totaled
$172.9 million 18.0% of total assets) compared to$179.7 million 18.2% of total assets). - The loan portfolio totaled
$647.6 million $38.5 million 6.3% , higher than a year earlier. - Total deposits and repurchase agreements decreased
4.2% to$861.2 million $899.3 million - Trust assets increased
12.5% to$954.5 million $848.7 million - Tangible book value per share increased
20.7% to$74.36 $61.73 - The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of
9.60% at December 31, 2023 compared to8.68% at December 31, 2022.
About Cornerstone Bancorp, Inc.
Founded in 2000, Cornerstone Bancorp, Inc., and its wholly-owned subsidiary, Cornerstone National Bank & Trust Company (collectively "Cornerstone") is committed to serving the commercial banking and investment needs of families and family-owned businesses. Cornerstone serves its clients by investing heavily in people and technology, providing an uncommon relationship experience. Cornerstone has been successful in attracting new clients and talent as the
Cornerstone is a leader in commercial lending services including equipment, real estate and construction loans and operating lines of credit as well as business treasury management services.
For individuals and families, wealth management services are offered, including investment management, trust and custody services, retirement plans, and estate and guardianship administration.
Headquartered in
Forward Looking Statement
This release may contain "forward-looking statements" that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management's plans and objectives for future operations are forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect," and "intend" and words or phrases of similar meaning, as they relate to Cornerstone or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management's expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.
FINANCIAL TABLES FOLLOW
Financial Highlights (Unaudited) | ||||||
($ in Thousands, Except Share and Per Share Data) | ||||||
For the Quarter Ending | Year To Date | |||||
Income Statement | 31-Dec-23 (Unaudited) | 31-Dec-22 | % Change | 31-Dec-23 (Unaudited) | 31-Dec-22 | |
Net Interest Income | $ 8,543 | $ 9,423 | -9.3 % | $ 34,176 | $ 31,997 | |
Provision for Credit Losses | 12 | - | N\A | 54 | - | |
Noninterest Income | 1,270 | 1,251 | 1.5 % | 5,201 | 5,992 | |
Noninterest Expense | 6,194 | 6,288 | -1.5 % | 24,005 | 23,314 | |
Provision for Income Taxes | 1,112 | 1,279 | -13.1 % | 4,441 | 4,193 | |
Net Income | $ 2,495 | $ 3,107 | -19.7 % | $ 10,877 | $ 10,482 | |
Ratios | ||||||
Return on Average Assets * | 1.00 % | 1.19 % | -15.7 % | 1.11 % | 1.00 % | |
Return on Average Stockholders' Equity* | 12.85 % | 18.47 % | -30.4 % | 14.83 % | 16.83 % | |
Net Interest Margin | 3.46 % | 3.70 % | -6.6 % | 3.56 % | 3.14 % | |
Allowance for Loan Losses to Gross Loans ** | 1.26 % | 1.34 % | -6.0 % | 1.26 % | 1.34 % | |
Dividends Per Share | $ - | $ - | N\A | $ - | $ - | |
Earnings Per Share | $ 2.54 | $ 3.12 | -18.4 % | $ 11.01 | $ 10.54 | |
End of Period | End of Period | |||||
Balance Sheet Data | 31-Dec-23 | 31-Dec-22 | % Change | 31-Dec-21 | 31-Dec-20 | |
Total Assets | $ 958,795 | $ 989,110 | -3.1 % | $ 950,731 | $ 891,183 | |
Loans, Net of Allowance for Loan Losses | $ 639,509 | $ 600,999 | 6.4 % | $ 583,423 | $ 587,906 | |
Deposits and Repurchase Agreements | $ 861,203 | $ 899,327 | -4.2 % | $ 860,067 | $ 808,124 | |
Trust Preferred Securities | $ 10,310 | $ 10,310 | 0.0 % | $ 10,310 | $ 10,310 | |
Other Borrowings | $ 7,763 | $ 12,763 | -39.2 % | $ 17,763 | $ 19,755 | |
Tangible Stockholders' Equity | $ 73,246 | $ 61,364 | 19.4 % | $ 56,865 | $ 47,442 | |
Trust Assets | $ 954,480 | $ 848,711 | 12.5 % | $ 1,016,393 | $ 811,885 | |
Stock Value Per Common Share Data | ||||||
Price-To-Earnings Ratio * | 6.31 | 6.10 | 24.4 % | 6.47 | 7.12 | |
Price-To-Tangible Book Value Ratio | 0.93 | 1.04 | -11.9 % | 1.12 | 1.26 | |
Tangible Book Value Per Share | $ 74.36 | $ 61.73 | 20.7 % | $ 57.20 | $ 47.72 | |
Number of Shares Outstanding | 985,039 | 994,088 | 994,088 | 994,088 | ||
Average Number of Shares Outstanding | 982,767 | 994,088 | 994,088 | 994,088 | ||
Stock Price - High | $ 70.00 | $ 64.30 | $ 64.00 | $ 65.00 | ||
Low | $ 66.75 | $ 63.10 | $ 60.00 | $ 52.51 | ||
Ending | $ 69.50 | $ 64.30 | $ 64.00 | $ 60.00 | ||
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SOURCE Cornerstone Bancorp, Inc.
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