Cornerstone Bancorp, Inc. Quarterly Report - September 30, 2026

Year-to-date earnings per share rose to $9.00 from $7.86, while dividends per share increased to $2.75 from $2.50.

Rhea-AI Summary

Cornerstone Bancorp (CNBP) reported third-quarter 2026 net income of $3.3 million, rising from the same quarter a year earlier.

Diluted earnings per share increased to $3.31 from $2.99. Net interest income rose 9.0% to $10.390 million, and net interest margin widened to 4.03% from 3.75%. Noninterest expense increased 6.6% to $7.191 million. Year-to-date net income reached $8.854 million versus $7.733 million.

At September 30, assets totaled $1.04 billion, up 1.8% year over year. Gross loans increased 10.2% to $789.7 million, deposits rose 1.8% to $920.4 million, and tangible shareholders' equity grew 11.0% to $97.9 million. Trust and wealth management assets increased 21.5% to $1.373 billion. The securities portfolio declined to $124.2 million from $205.0 million, while interest-bearing correspondent bank deposits increased to $104.7 million from $75.7 million.

18 points · 0 major

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0 major · 4 points

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Positive

• Moderate pointThird-quarter net income increased 10.8% to $3.258 million; diluted earnings per share rose to $3.31 from $2.99.
• Moderate pointNet interest income rose 9.0% to $10.390 million in Q3; year-to-date income reached $30.006 million versus $26.752 million.
• Moderate pointNet interest margin widened to 4.03% from 3.75% in Q3 and 3.91% from 3.59% year to date.
• Moderate pointNoninterest income increased 7.8% to $1.544 million in Q3; year-to-date income reached $4.952 million versus $4.233 million.
• Moderate pointGross loans increased $73.3 million, or 10.2%, year over year to $789.7 million at September 30.
• Moderate pointTangible shareholders' equity increased 11.0% year over year to $97.851 million at September 30.

12 minor points

• Minor pointYear-to-date net income rose to $8.854 million from $7.733 million; earnings per share reached $9.00 versus $7.86.
• Minor pointLoan interest income increased to $12.8 million in Q3 2026 from $11.3 million in Q3 2025.
• Minor pointDeposit interest expense fell to $4.1 million in Q3 2026 from $4.7 million a year earlier.
• Minor pointTrust and wealth management revenue increased to $1.2 million in Q3 from $978,000 a year earlier.
• Minor pointDeposits increased $16.0 million, or 1.8%, year over year to $920.4 million at September 30.
• Minor pointTotal assets increased 1.8% year over year to $1.04 billion at September 30.
• Minor pointTangible book value per share increased 11.0% to $99.49 from $89.66 a year earlier.
• Minor pointTrust and wealth management assets increased 21.5% year over year to $1.373 billion at September 30.
• Minor pointOther borrowings fell to zero at September 30, 2026, from $4.800 million a year earlier.
• Minor pointReturn on average assets improved to 1.25% from 1.14% for Q3 and 1.16% from 1.07% year to date.
• Minor pointReturn on average stockholders' equity reached 13.16% versus 13.15% for Q3 and 12.53% versus 12.42% year to date.
• Minor pointYear-to-date dividends per share increased to $2.75 from $2.50.

Negative

• Moderate pointNoninterest expense rose 6.6% to $7.191 million in Q3; year-to-date expense reached $21.675 million versus $20.160 million.
• Moderate pointBank-account and securities interest income declined to $1.7 million in Q3 from $2.9 million a year earlier.
• Minor pointYear-to-date loan-loss provision rose to $820,000 from $200,000, although Q3 provision fell 20.0% to $160,000.
• Minor pointIncome-tax provision increased 22.3% to $1.325 million in Q3; year-to-date provision reached $3.609 million versus $2.892 million.

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PALATINE, Ill., Oct. 28, 2026 /PRNewswire/ --

CORNERSTONE BANCORP, INC.
THIRD QUARTER 2026 HIGHLIGHTS (At or for period ended 9/30/2026)

Income Statement Highlights

• Consolidated net income was $3.3 million in 3Q26, or $3.31 per diluted share, compared to $2.9 million in 3Q25, or $2.99 per diluted share.
• The net interest margin (NIM) was 4.03% for 3Q26, compared to 3.75% for 3Q25.
• Interest earned on interest-bearing bank accounts and securities was $1.7 million for 3Q26 compared to $2.9 million for 3Q25.
• Interest earned on the loans was $12.8 million for 3Q26 compared to $11.3 million for 3Q25.
• Interest expense on interest-bearing deposits was $4.1 million for 3Q26 compared to $4.7 million for 3Q25.
• Revenue from Trust and Wealth Management assets under management was $1.2 million for 3Q26 compared to $978,000 for 3Q25.
• Noninterest expense was $7.2 million in 3Q26 compared to $6.7 million in 3Q25.

Balance Sheet Highlights

• Total consolidated assets increased 1.8% to $1.04 billion on September 30, 2026, compared to $1.02 billion a year earlier.
• Tangible shareholders' equity improved 11.0% to $97.9 million on September 30, 2026, compared to $88.2 million a year earlier.
• Interest-bearing deposits at correspondent banks totaled $104.7 million on September 30, 2026 (10.1% of total assets) compared to $75.7 million a year earlier (7.4% of total assets).
• The securities portfolio totaled $124.2 million on September 30, 2026, compared to $205.0 million a year earlier.  The weighted average remaining life approximates 1.1 years.
• The loan portfolio totaled $789.7 million on September 30, 2026, an increase of $73.3 million, or 10.2%, from a year earlier.
• Deposits totaled $920.4 million on September 30, 2026, an increase of $16.0 million, or 1.8%, from a year earlier.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 10.57% on September 30, 2026.

Trust and Wealth Management
Trust and wealth management assets totaled $1.37 billion on September 30, 2026, compared to $1.13 billion a year earlier.

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-Sep-26	30-Sep-25	% Change		30-Sep-26	30-Sep-25
Net Interest Income	$              10,390	$               9,534	9.0 %		$              30,006	$              26,752
Provision for Loan Losses	160	200	-20.0 %		820	200
Noninterest Income	1,544	1,432	7.8 %		4,952	4,233
Noninterest Expense	7,191	6,743	6.6 %		21,675	20,160
Provision for Income Taxes	1,325	1,083	22.3 %		3,609	2,892
Net Income	$                3,258	$               2,940	10.8 %		$                8,854	$                7,733
Ratios
Return on Average Assets *	1.25 %	1.14 %	8.9 %		1.16 %	1.07 %
Return on Average Stockholders' Equity *	13.16 %	13.15 %	0.1 %		12.53 %	12.42 %
Net Interest Margin	4.03 %	3.75 %	7.4 %		3.91 %	3.59 %
Allowance for Credit Losses on Loans to Gross Loans	1.27 %	1.25 %	2.2 %		1.27 %	1.25 %
Dividends Per Share	$                        -	$                       -	N\A		$                  2.75	$                  2.50
Earnings Per Share	$                  3.31	$                 2.99	10.8 %		$                  9.00	$                  7.86
	End of Period				End of Period
Balance Sheet Data	30-Sep-26	30-Sep-25	% Change		31-Dec-25	31-Dec-24
Total Assets	$        1,037,709	$        1,019,409	1.8 %		$         1,033,575	$             976,886
Loans, Net of Allowance for Loan Loss	$           779,591	$           707,436	10.2 %		$            740,017	$             638,832
Deposits	$           920,437	$           904,460	1.8 %		$            924,870	$             871,306
Trust Preferred Securities	$             10,310	$             10,310	0.0 %		$              10,310	$               10,310
Other Borrowings	$                       -	$               4,800	-100.0 %		$                        -	$                 7,763
Tangible Shareholders' Equity	$             97,851	$             88,193	11.0 %		$              91,695	$               81,003
Trust and Wealth Management Assets	$        1,373,074	$        1,130,313	21.5 %		$         1,156,692	$          1,019,951
Stock Value Per Common Share Data
Price-To-Earnings Ratio *	9.15	8.09	13.1 %		13.64	8.30
Price-To-Tangible Book Value Ratio	1.21	1.07	12.9 %		1.61	1.00
Tangible Book Value Per Share	$                99.49	$               89.66	11.0 %		$                 93.12	$                 82.33
Number of Shares Outstanding	983,575	983,615			984,735	983,905
Average Number of Shares Outstanding	983,575	983,645			983,973	980,623
Stock Price - High	$              125.51	$               96.00			$               150.00	$                 82.59
Low	$              116.50	$               88.00			$                 81.25	$                 69.00
Ending	$              120.30	$               96.00			$               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

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SOURCE Cornerstone Bancorp, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Cornerstone Bancorp's third-quarter 2026 earnings?

Cornerstone Bancorp earned $3.3 million, or $3.31 per diluted share, in the third quarter of 2026. A year earlier, net income was $2.9 million, or $2.99 per diluted share.

What was Cornerstone Bancorp's capital position at September 30, 2026?

The bank's Tier 1 Leverage Capital Ratio was 10.57% at September 30, 2026. The company described the bank as well-capitalized.

What loan-loss allowance did Cornerstone Bancorp report for September 30, 2026?

The allowance for credit losses on loans was 1.27% of gross loans at September 30, 2026, compared with 1.25% a year earlier.

What was the remaining life of Cornerstone Bancorp's securities portfolio at September 30, 2026?

The securities portfolio's weighted average remaining life was approximately 1.1 years.