Cornerstone Bancorp, Inc. Quarterly Report - September 30, 2025

Rhea-AI Summary

Cornerstone Bancorp (NASDAQ:CNBP) reported third-quarter results for the period ended September 30, 2025. Consolidated net income was $2.9 million (EPS $2.99) in 3Q25 versus $2.6 million (EPS $2.69) in 3Q24. The net interest margin widened to 3.75% from 3.33% a year earlier.

Total assets rose 1.5% to $1.02 billion, tangible shareholders' equity increased 12.6% to $88.2 million, and loans grew 10.1% to $716.4 million. Trust and wealth management assets reached $1.13 billion. Interest-bearing deposits at correspondent banks fell to $75.7 million from $111.3 million a year earlier.

Positive

• Tangible equity +12.6% to $88.2M
• Loan growth +10.1% to $716.4M
• NIM widened to 3.75% from 3.33%
• Assets +1.5% to $1.02B
• Trust AUM +10.8% to $1.13B

Negative

• Interest-bearing deposits down ~32% to $75.7M
• Interest income on correspondent deposits down ~29% to $924K

PALATINE, Ill., Oct. 21, 2025 /PRNewswire/ --

CORNERSTONE BANCORP, INC.
THIRD QUARTER 2025 HIGHLIGHTS (At or for period ended 9/30/2025)

Income Statement Highlights

• Consolidated net income was $2.9 million in 3Q25, or $2.99 per diluted share, compared to $2.6 million in 3Q24, or $2.69 per diluted share.
• The net interest margin (NIM) was 3.75% for 3Q25, compared to 3.33% for 3Q24.
• Interest earned on the Bank's interest-bearing deposit accounts at correspondent banks was $924,000 for 3Q25 compared to $1.3 million for 3Q24.
• Interest earned on US Treasury securities was $1.6 million for 3Q25 compared to $1.7 million for 3Q24.  This interest is exempt from Illinois income taxes.
• Noninterest expense was $6.7 million in 3Q25 compared to $6.3 million in 3Q24.

Balance Sheet Highlights

• Total consolidated assets increased 1.5% to $1.02 billion on September 30, 2025, compared to $1.00 billion a year earlier.
• Tangible shareholders' equity improved 12.6% to $88.2 million on September 30, 2025, compared to $78.3 million a year earlier.
• Interest-bearing deposits at correspondent banks totaled $75.7 million on September 30, 2025 (7.4% of total assets) compared to $111.3 million a year earlier (11.0% of total assets).
• The securities portfolio totaled $205.0 million on September 30, 2025, compared to $222.1 million a year earlier.  The weighted average remaining life approximates 1.2 years. 
• The loan portfolio totaled $716.4 million on September 30, 2025, an increase of $65.4 million, or 10.1%, from a year earlier.
• Deposits totaled $904.5 million on September 30, 2025, an increase of $6.2 million, or 0.7%, from a year earlier.
• The Corporation's other borrowings were $4.8 million on September 30, 2025, compared to $7.8 million a year earlier.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 10.25% on September 30, 2025.

Trust and Wealth Management

• Trust and wealth management assets totaled $1.13 billion on September 30, 2025, compared to $1.02 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-25	30-Sep-24	% Change		30-Sep-25	30-Sep-24
Net Interest Income	$                 9,534	$                 8,350	14.2 %		$               26,752	$               24,460
Provision for Loan Losses	200	-	0.0 %		200	300
Noninterest Income	1,432	1,482	-3.4 %		4,233	4,108
Noninterest Expense	6,743	6,275	7.5 %		20,160	19,007
Provision for Income Taxes	1,083	922	17.5 %		2,892	2,473
Net Income	$                 2,940	$                 2,635	11.6 %		$                 7,733	$                 6,788
Ratios
Return on Average Assets *	1.14 %	1.04 %	9.8 %		1.07 %	0.94 %
Return on Average Stockholders' Equity *	13.15 %	13.05 %	0.7 %		12.42 %	11.81 %
Net Interest Margin	3.75 %	3.33 %	12.5 %		3.59 %	3.30 %
Allowance for Credit Losses on Loans to Gross Loans	1.25 %	1.30 %	-3.7 %		1.25 %	1.30 %
Dividends Per Share	$                         -	$                         -	N\A		$                   2.50	$                   2.50
Earnings Per Share	$                   2.99	$                   2.69	11.3 %		$                   7.86	$                   6.93
	End of Period				End of Period
Balance Sheet Data	30-Sep-25	30-Sep-24	% Change		31-Dec-24	31-Dec-23
Total Assets	$         1,019,409	$         1,004,524	1.5 %		$            976,886	$             958,795
Loans, Net of Allowance for Loan Loss	$            707,436	$            642,515	10.1 %		$            638,832	$             639,509
Deposits	$            904,460	$            898,302	0.7 %		$            871,306	$             861,203
Trust Preferred Securities	$              10,310	$              10,310	0.0 %		$              10,310	$               10,310
Other Borrowings	$                4,800	$                7,763	-38.2 %		$                7,763	$                 7,763
Tangible Shareholders' Equity	$              88,193	$              78,336	12.6 %		$              81,003	$               73,246
Trust and Wealth Management Assets	$         1,130,313	$         1,018,221	11.0 %		$         1,019,951	$             954,480
Stock Value Per Common Share Data
Price-To-Earnings Ratio *	8.09	7.02	15.2 %		8.30	6.31
Price-To-Tangible Book Value Ratio	1.07	0.94	13.9 %		1.00	0.93
Tangible Book Value Per Share	$                 89.66	$                 79.83	12.3 %		$                 82.33	$                 74.36
Number of Shares Outstanding	983,615	981,235			983,905	985,039
Average Number of Shares Outstanding	983,645	981,250			983,386	982,767
Stock Price - High	$                 96.00	$                 75.80			$                 82.59	$                 70.00
Low	$                 88.00	$                 73.30			$                 75.95	$                 66.75
Ending	$                 96.00	$                 75.05			$                 82.59	$                 69.50

 

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SOURCE Cornerstone Bancorp, Inc.

FAQ

What was Cornerstone Bancorp's net income and EPS for 3Q25 (CNBP)?

Consolidated net income was $2.9 million, or $2.99 per diluted share for 3Q25.

How did Cornerstone Bancorp's net interest margin (NIM) change in 3Q25 (CNBP)?

NIM widened to 3.75% in 3Q25 from 3.33% in 3Q24.

How much did Cornerstone Bancorp's loan portfolio grow by September 30, 2025 (CNBP)?

The loan portfolio increased 10.1% year-over-year to $716.4 million.

What happened to Cornerstone Bancorp's interest-bearing deposits at correspondent banks (CNBP)?

Interest-bearing deposits at correspondent banks fell to $75.7 million (7.4% of assets) from $111.3 million a year earlier.

What was Cornerstone Bancorp's tangible shareholders' equity on September 30, 2025 (CNBP)?

Tangible shareholders' equity increased to $88.2 million, up 12.6% year-over-year.

How large were Cornerstone Bancorp's trust and wealth management assets at 3Q25 (CNBP)?

Trust and wealth management assets totaled $1.13 billion on September 30, 2025.