Cornerstone Bancorp, Inc. Quarterly Report - December 31, 2024

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Cornerstone Bancorp (CNBP) reported Q4 2024 net income of $3.0 million ($3.02 per diluted share), up from $2.5 million ($2.54 per diluted share) in Q4 2023. However, full-year 2024 net income decreased 10.3% to $9.8 million compared to 2023's $10.9 million.

Key financial metrics include: total assets increased 1.9% to $976.9 million; tangible shareholders' equity improved 10.6% to $81.0 million; loan portfolio remained stable at $647.6 million; and trust assets grew 7.4% to $1.02 billion. The net interest margin declined to 3.32% in 2024 from 3.56% in 2023.

The bank maintains strong capitalization with a Tier 1 Leverage Capital Ratio of 10.00%, and paid $2.50 per share in dividends during 2024. Notable portfolio changes include reduced interest-bearing deposits at correspondent banks (8.9% of total assets) and increased securities holdings to $218.9 million, including $119.8 million in one-month US Treasury bills.

Positive

• Q4 2024 net income increased 20% YoY to $3.0 million
• Tangible shareholders' equity improved 10.6% YoY to $81.0 million
• Trust assets grew 7.4% YoY to $1.02 billion
• Tangible book value per share increased 10.7% YoY to $82.33
• Tier 1 Leverage Capital Ratio improved to 10.00% from 9.60% YoY

Negative

• Full-year 2024 net income decreased 10.3% to $9.8 million
• Net interest margin declined to 3.32% from 3.56% YoY
• Interest-bearing deposits at correspondent banks decreased to 8.9% from 19.5% of total assets

PALATINE, Ill., Jan. 13, 2025 /PRNewswire/ -- Cornerstone Bancorp, Inc. (OTC Pink: CNBP), the bank holding company for Cornerstone National Bank & Trust Company (collectively "Cornerstone"), today reported net income of $3.0 million, or $3.02 per diluted share, for the fourth quarter of 2024, compared to $2.5 million, or $2.54 per diluted share, for the fourth quarter of 2023.

For the year ended December 31, 2024, net income decreased 10.3% to $9.8 million, or $9.95 per diluted share, compared to 2023's record earnings of $10.9 million, or $11.01 per diluted share.  All 2024 results are unaudited.

"Cornerstone's investment portfolio continues its very short duration and provides high levels of liquidity to take advantage of credit opportunities," stated Gerald F. Fitzgerald, Jr., Chairman of Cornerstone Bancorp, Inc.

"Cornerstone's loan portfolio experienced a number of large reductions as clients sold businesses and retired debt.  Those reductions were replaced by new relationships that originated in 2024.  Asset quality remained very high with only three individual credits on nonaccrual status totaling less than $650,000," Fitzgerald continued.

Fourth Quarter and Full Year 2024 Highlights:

• Consolidated net income was $3.0 million, or $3.02 per diluted share, in the fourth quarter of 2024, compared to $2.5 million, or $2.54 per diluted share, in the fourth quarter of 2023.
• For 2024, net income decreased 10.3%, to $9.8 million, or $9.95 per diluted share compared to $10.9 million, or $11.01 per diluted share, in 2023.
• The net interest margin (NIM) was 3.30% in the fourth quarter of 2024, compared to 3.46% in the fourth quarter of 2024. For the full year 2024, the NIM was 3.32% compared to 3.56% in 2023.
• Total assets increased 1.9% to $976.9 million at year-end, compared to $958.8 million a year earlier.
• Tangible shareholders' equity improved 10.6% to $81.0 million at December 31, 2024, compared to $73.2 million a year earlier.
• Interest-bearing deposits at correspondent banks totaled $86.1 million on December 31, 2024 (8.9% of total assets) compared to $187.3 million a year earlier (19.5% of total assets).
• The securities portfolio totaled $218.9 million on December 31, 2024, compared to $103.9 million a year earlier. The current portfolio includes $119.8 million of one-month US Treasury bills. The weighted average remaining life of the entire securities portfolio approximates 1.2 years.
• The loan portfolio totaled $647.6 million on December 31, 2024, unchanged from a year earlier. Several large clients sold businesses and investment holdings in 2024 resulting in significant reductions in outstanding loan balances. These balances were replaced by new opportunities.
• Total deposits and repurchase agreements increased 1.2% to $871.5 million on December 31, 2024, compared to $861.2 million a year earlier.
• Trust assets increased 7.4% to $1.02 billion at December 31, 2024 from $954.5 million a year earlier.
• Tangible book value per share increased 10.7% to $82.33 at year-end, compared to $74.36 per diluted share at December 31, 2023.
• Dividends to shareholders were $2.50 per share in 2024.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 10.00% at December 31, 2024 compared to 9.60% at December 31, 2023.

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 Chicago market consolidates and large banks deemphasize relationships in favor of an institutional approach.

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 Palatine, Illinois, Cornerstone maintains offices in Crystal Lake, Deer Park, Naperville and Schaumburg.  Visit us on the web at www.cnbtc.bank.

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	12-31-2024 (Unaudited)	31-Dec-23	% Change		12-31-2024 (Unaudited)	31-Dec-23
Net Interest Income	$           8,320	$           8,543	-2.6 %		$         32,780	$         34,176
Provision for Credit Losses	25	12	108.3 %		325	54
Noninterest Income	1,365	1,270	7.5 %		5,473	5,201
Noninterest Expense	6,154	6,194	-0.6 %		25,161	24,005
Provision for Income Taxes	535	1,112	-51.9 %		3,008	4,441
Net Income	$           2,972	$           2,495	19.1 %		$           9,760	$         10,877
Ratios
Return on Average Assets	1.16 %	1.00 %	16.1 %		0.98 %	1.11 %
Return on Average Stockholders' Equity	13.49 %	12.85 %	4.9 %		12.02 %	14.83 %
Net Interest Margin	3.30 %	3.46 %	-4.7 %		3.32 %	3.56 %
Allowance for Loan Losses to Gross Loans	1.35 %	1.26 %	7.4 %		1.35 %	1.26 %
Dividends Per Share	$                   -	$                   -	N\A		$             2.50	$                  -
Earnings Per Share	$             3.02	$             2.54	18.8 %		$             9.95	$           11.01
	End of Period				End of Period
Balance Sheet Data	12-31-2024 (Unaudited)	31-Dec-23	% Change		31-Dec-22	31-Dec-21
Total Assets	$       976,886	$       958,795	1.9 %		$       989,110	$       950,731
Loans, Net of Allowance for Loan Losses	$       638,832	$       639,509	-0.1 %		$       600,999	$       583,423
Deposits and Repurchase Agreements	$       871,306	$       861,203	1.2 %		$       899,327	$       860,067
Trust Preferred Securities	$         10,310	$         10,310	0.0 %		$         10,310	$         10,310
Other Borrowings	$           7,763	$           7,763	0.0 %		$         12,763	$         17,763
Tangible Stockholders' Equity	$         81,003	$         73,246	10.6 %		$         61,364	$         56,865
Trust Assets	$    1,019,951	$       954,480	7.4 %		$       848,711	$    1,016,393
Stock Value Per Common Share Data
Price-To-Earnings Ratio	8.30	6.31	31.5 %		6.10	6.47
Price-To-Tangible Book Value Ratio	1.00	0.93	7.3 %		1.04	1.12
Tangible Book Value Per Share	$           82.33	$           74.36	10.7 %		$           61.73	$           57.20
Number of Shares Outstanding	983,905	985,039			994,088	994,088
Average Number of Shares Outstanding	983,386	982,767			994,088	994,088
Stock Price - High	$           82.59	$           70.00			$           64.30	$           64.00
Low	$           75.95	$           66.75			$           63.10	$           60.00
Ending	$           82.59	$           69.50			$           64.30	$           64.00

 

 

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SOURCE Cornerstone Bancorp, Inc.

FAQ

What was Cornerstone Bancorp's (CNBP) net income for Q4 2024?

Cornerstone Bancorp reported net income of $3.0 million ($3.02 per diluted share) for Q4 2024, compared to $2.5 million ($2.54 per diluted share) in Q4 2023.

How did CNBP's full-year 2024 performance compare to 2023?

CNBP's full-year net income decreased 10.3% to $9.8 million in 2024, compared to $10.9 million in 2023.

What was CNBP's total asset value at the end of 2024?

CNBP's total assets increased 1.9% to $976.9 million at the end of 2024, compared to $958.8 million a year earlier.

How much did CNBP pay in dividends during 2024?

CNBP paid dividends of $2.50 per share to shareholders in 2024.

What was CNBP's trust assets value at the end of 2024?

Trust assets increased 7.4% to $1.02 billion at December 31, 2024, from $954.5 million a year earlier.