Cornerstone Bancorp, Inc. Quarterly Report - June 30, 2026
Rhea-AI Summary
Cornerstone Bancorp (OTC:CNBP) reported second quarter 2026 consolidated net income of $3.15 million, up 14.0% from $2.76 million in 2Q25, with diluted earnings per share rising to $3.20 from $2.81. Net interest income increased 12.5% to $9.99 million and the net interest margin improved to 3.97% from 3.65%.
Noninterest income grew 30.7% to $1.86 million, driven in part by higher Trust and Wealth Management revenue of $1.3 million versus $968,000 a year earlier. Loans net of allowance rose 16.0% year-over-year to $785.8 million, while deposits edged up 0.6% to $896.9 million. Total assets were $1.01 billion and tangible shareholders' equity increased 14.3% to $96.5 million, supporting a Tier 1 leverage ratio of 10.36%. Trust and wealth management assets under management reached $1.36 billion, up 28.3% from June 30, 2025.
Positive
- Net income +14.0% YoY to $3.15 million in 2Q26
- Diluted EPS +14.0% YoY to $3.20 in 2Q26
- Net interest margin expanded to 3.97% from 3.65% YoY
- Loans net of allowance +16.0% YoY to $785.8 million
- Trust and wealth management AUM +28.3% YoY to $1.36 billion
- YTD dividends per share increased to $2.75 from $2.50
Negative
- Provision for loan losses rose to $480k in 2Q26 from $0
- Noninterest expense +6.5% YoY to $6.94 million in 2Q26
- Interest income on securities and bank balances declined to $1.8 million from $2.8 million
- Allowance for credit losses ratio eased to 1.24% from 1.27%
- Deposits grew only 0.6% YoY to $896.9 million
AI-generated analysis. How Rhea-AI works. Not financial advice.
CORNERSTONE BANCORP, INC.
SECOND QUARTER 2026 HIGHLIGHTS (At or for period ended 6/30/2026)
Income Statement Highlights
- Consolidated net income was
$3.2 million $3.2 $2.8 million $2.81 - The net interest margin (NIM) was
3.97% for 2Q26, compared to3.65% for 2Q25. - Interest earned on interest-bearing bank accounts and securities was
$1.8 million $2.8 million - Interest earned on the loans was
$12.2 million $10.6 million - Interest expense on interest-bearing deposits was
$3.8 million $4.2 million - Revenue from Trust and Wealth Management assets under management was
$1.3 million $968,000 - Noninterest expense was
$6.9 million $6.5 million
Balance Sheet Highlights
- Total consolidated assets increased
0.09% to$1.01 billion $1.00 billion - Tangible shareholders' equity improved
14.3% to$96.5 million $84.5 million - Interest-bearing deposits at correspondent banks totaled
$60.5 million 6.0% of total assets) compared to$89.2 million 8.9% of total assets). - The securities portfolio totaled
$133.5 million $206.2 million - The loan portfolio totaled
$795.7 million $109.6 million 16.0% , from a year earlier. - Deposits totaled
$896.9 million $5.2 million 0.6% , from a year earlier. - The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of
10.36% on June 30, 2026.
Trust and Wealth Management
- Trust and wealth management assets totaled
$1.36 billion $1.06 billion
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. In addition, Cornerstone offers sophisticated treasury management services for businesses.
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 Highlights (Unaudited) | ||||||
($ in Thousands, Except Share and Per Share Data) | ||||||
For the Quarter Ending | Year To Date | |||||
Income Statement | 30-Jun-26 | 30-Jun-25 | % Change | 30-Jun-26 | 30-Jun-25 | |
Net Interest Income | $ 9,994 | $ 8,883 | 12.5 % | $ 19,616 | $ 17,218 | |
Provision for Loan Losses | 480 | - | 0.0 % | 660 | - | |
Noninterest Income | 1,863 | 1,425 | 30.7 % | 3,408 | 2,801 | |
Noninterest Expense | 6,935 | 6,510 | 6.5 % | 14,484 | 13,417 | |
Provision for Income Taxes | 1,292 | 1,035 | 24.8 % | 2,284 | 1,809 | |
Net Income | $ 3,150 | $ 2,763 | 14.0 % | $ 5,596 | $ 4,793 | |
Ratios | ||||||
Return on Average Assets * | 1.23 % | 1.12 % | 10.2 % | 1.14 % | 1.05 % | |
Return on Average Stockholders' Equity * | 13.32 % | 12.92 % | 3.1 % | 12.39 % | 12.25 % | |
Net Interest Margin | 3.97 % | 3.65 % | 8.8 % | 3.91 % | 3.56 % | |
Allowance for Credit Losses on Loans to Gross Loans | 1.24 % | 1.27 % | -2.2 % | 1.24 % | 1.27 % | |
Dividends Per Share | $ - | $ - | N\A | $ 2.75 | $ 2.50 | |
Earnings Per Share | $ 3.20 | $ 2.81 | 14.0 % | $ 5.69 | $ 4.87 | |
End of Period | End of Period | |||||
Balance Sheet Data | 30-Jun-26 | 30-Jun-25 | % Change | 31-Dec-25 | 31-Dec-24 | |
Total Assets | $ 1,009,497 | $ 1,000,224 | 0.9 % | $ 1,033,575 | $ 976,886 | |
Loans, Net of Allowance for Loan Loss | $ 785,804 | $ 677,382 | 16.0 % | $ 740,017 | $ 638,832 | |
Deposits | $ 896,873 | $ 891,640 | 0.6 % | $ 924,870 | $ 871,306 | |
Trust Preferred Securities | $ 10,310 | $ 10,310 | 0.0 % | $ 10,310 | $ 10,310 | |
Other Borrowings | $ - | $ 5,500 | -100.0 % | $ - | $ 7,763 | |
Tangible Shareholders' Equity | $ 96,507 | $ 84,456 | 14.3 % | $ 91,695 | $ 81,003 | |
Trust and Wealth Management Assets | $ 1,362,768 | $ 1,062,161 | 28.3 % | $ 1,156,692 | $ 1,019,951 | |
Stock Value Per Common Share Data | ||||||
Price-To-Earnings Ratio * | 9.07 | 7.83 | 15.8 % | 13.64 | 8.30 | |
Price-To-Tangible Book Value Ratio | 1.19 | 1.03 | 15.5 % | 1.61 | 1.00 | |
Tangible Book Value Per Share | $ 98.12 | $ 85.85 | 14.3 % | $ 93.12 | $ 82.33 | |
Number of Shares Outstanding | 983,575 | 983,705 | 984,735 | 983,905 | ||
Average Number of Shares Outstanding | 983,796 | 983,773 | 983,973 | 980,623 | ||
Stock Price - High | $ 117.90 | $ 89.00 | $ 150.00 | $ 82.59 | ||
Low | $ 112.00 | $ 85.75 | $ 81.25 | $ 69.00 | ||
Ending | $ 116.50 | $ 88.25 | $ 150.00 | $ 82.59 | ||
* - Quarter returns are based on annualized Net Income; Year-To-Date returns are based on the Last Twelve Months' (LTM) Net Income | ||||||
View original content:https://www.prnewswire.com/news-releases/cornerstone-bancorp-inc-quarterly-report---june-30-2026-302842692.html
SOURCE Cornerstone Bancorp, Inc.