Cornerstone Bancorp, Inc Quarterly Report - March 31, 2025

Rhea-AI Summary

Cornerstone Bancorp (CNBP) reported its Q1 2025 financial results with net income of $2.0 million ($2.06 per diluted share), down from $2.2 million ($2.19 per diluted share) in Q1 2024. The bank's net interest margin improved to 3.47% from 3.39% year-over-year. Total assets grew 1.6% to $998.9 million, while tangible shareholders' equity increased 11.7% to $81.2 million. The loan portfolio expanded by 3.9% to $658.2 million, and total deposits rose 1.0% to $892.9 million. The bank maintains strong capitalization with a Tier 1 Leverage Capital Ratio of 10.29%. Trust and wealth management assets reached $1.0 billion, showing modest growth from $993.2 million a year earlier. A dividend of $2.50 per share was paid in February 2025.

Positive

• Net interest margin improved to 3.47% from 3.39% year-over-year
• Tangible shareholders' equity increased 11.7% to $81.2 million
• Loan portfolio grew 3.9% to $658.2 million
• Strong capitalization with 10.29% Tier 1 Leverage Capital Ratio
• Trust and wealth management assets reached $1.0 billion

Negative

• Net income decreased to $2.0 million from $2.2 million year-over-year
• Interest earned on deposit accounts at correspondent banks declined significantly from $2.8M to $989K
• Noninterest expense increased to $6.9 million from $6.4 million

PALATINE, Ill., May 14, 2025 /PRNewswire/ -- 

CORNERSTONE BANCORP, INC.

FIRST QUARTER 2025 HIGHLIGHTS (At or for period ended 3/31/2025)

Income Statement Highlights

• Consolidated net income was $2.0 million in 1Q25, or $2.06 per diluted share, compared to $2.2 million in 1Q24, or $2.19 per diluted share.
• The net interest margin (NIM) was 3.47% for 1Q25, compared to 3.39% for 1Q24.
• Interest earned on the Bank's interest-bearing deposit accounts at correspondent banks was $989,000 for 1Q25 compared to $2.8 million for 1Q24.
• Interest earned on US Treasury securities was $1.3 million for 1Q25 compared to $142,000 for 1Q24.  This interest is exempt from Illinois income taxes.
• Noninterest expense was $6.9 million in 1Q25 compared to $6.4 million in 1Q24.

Balance Sheet Highlights

• Total consolidated assets increased 1.6% to $998.9 million on March 31, 2025, compared to $982.8 million a year earlier.
• Tangible shareholders' equity improved 11.7% to $81.2 million on March 31, 2025, compared to $72.7 million a year earlier.
• A $2.50 per share dividend was paid to shareholders on February 5, 2025, totaling $2.5 million.
• Interest-bearing deposits at correspondent banks totaled $107.1 million on March 31, 2025 (10.7% of total assets) compared to $203.3 million a year earlier (20.7% of total assets).
• The securities portfolio totaled $212.9 million on March 31, 2025, compared to $126.1 million a year earlier.  The weighted average remaining life approximates 1.2 years. 
• The loan portfolio totaled $658.2 million on March 31, 2025, $24.9 million, or 3.9%, higher than a year earlier.
• Total deposits increased 1.0% to $892.9 million on March 31, 2025, compared to $884.1 million a year earlier. 
• The Corporation's other borrowings were $7.8 million on March 31, 2025, unchanged from a year earlier.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 10.29% on March 31, 2025.

Trust and Wealth Management

• Trust and wealth management assets totaled $1.0 billion on March 31, 2025, compared to $993.2 million a year earlier.

About Cornerstone Bancorp, Inc.

Founded in 2000, Cornerstone Bancorp, Inc.(OTC:CNBP), 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	31-Mar-25	31-Mar-24	% Change		31-Dec-24	31-Dec-23
Net Interest Income	8,335	8,192	1.7 %		32,780	34,176
Provision for Loan Losses	-	150	-100.0 %		325	54
Noninterest Income	1,376	1,341	2.6 %		5,473	5,201
Noninterest Expense	6,907	6,361	8.6 %		25,161	24,005
Provision for Income Taxes	774	867	-10.7 %		3,008	4,441
Net Income	2,030	2,155	-5.8 %		9,760	10,877
Ratios
Return on Average Assets *	0.83 %	0.88 %	-5.3 %		0.98 %	1.11 %
Return on Average Stockholders' Equity *	9.81 %	11.21 %	-12.4 %		12.02 %	14.83 %
Net Interest Margin	3.47 %	3.39 %	2.2 %		3.32 %	3.56 %
Allowance for Credit Losses on Loans to Gross Loans	1.33 %	1.31 %	1.4 %		1.35 %	1.26 %
Dividends Per Share	2.50	2.50	0.0 %		2.50	-
Earnings Per Share	2.06	2.19	-6.2 %		9.95	11.01
	End of Period				End of Period
Balance Sheet Data	31-Mar-25	31-Mar-24	% Change		31-Dec-24	31-Dec-23
Total Assets	998,882	982,760	1.6 %		976,886	958,795
Loans, Net of Allowance for Loan Loss	649,471	625,010	3.9 %		638,832	639,509
Deposits	892,848	884,155	1.0 %		871,306	861,203
Trust Preferred Securities	10,310	10,310	0.0 %		10,310	10,310
Other Borrowings	7,763	7,763	0.0 %		7,763	7,763
Tangible Shareholders' Equity	81,240	72,715	11.7 %		81,003	73,246
Trust and Wealth Management Assets	1,013,125	993,242	2.0 %		1,019,951	954,480
Stock Value Per Common Share Data
Price-To-Earnings Ratio *	10.20	8.01	27.4 %		8.30	6.31
Price-To-Tangible Book Value Ratio	1.03	0.95	8.0 %		1.00	0.93
Tangible Book Value Per Share	82.57	74.06	11.5 %		82.33	74.36
Number of Shares Outstanding	983,905	981,839			983,905	985,039
Average Number of Shares Outstanding	983,905	982,106			983,386	982,767
Stock Price - High	85.00	71.00			82.59	70.00
Low	82.50	69.00			75.95	66.75
Ending	85.00	70.60			82.59	69.50

*	- Quarter returns are based on annualized Net Income; Year-To-Date returns are based on the Last Twelve Months' (LTM) Net Income

 

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SOURCE Cornerstone Bancorp, Inc.

FAQ

What was Cornerstone Bancorp's (CNBP) earnings per share in Q1 2025?

Cornerstone Bancorp reported earnings of $2.06 per diluted share in Q1 2025, compared to $2.19 per diluted share in Q1 2024.

How much did Cornerstone Bancorp's (CNBP) total assets grow in Q1 2025?

Cornerstone Bancorp's total assets increased 1.6% to $998.9 million as of March 31, 2025, compared to $982.8 million a year earlier.

What dividend did CNBP pay in Q1 2025?

Cornerstone Bancorp paid a dividend of $2.50 per share to shareholders on February 5, 2025, totaling $2.5 million.

What is Cornerstone Bancorp's (CNBP) Tier 1 Leverage Capital Ratio as of Q1 2025?

Cornerstone Bancorp maintained a Tier 1 Leverage Capital Ratio of 10.29% as of March 31, 2025, indicating strong capitalization.

How much were Cornerstone Bancorp's (CNBP) total deposits in Q1 2025?

Total deposits increased 1.0% to $892.9 million as of March 31, 2025, compared to $884.1 million a year earlier.