Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2022
01/24/2023 - 08:23 PM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the fourth quarter and full year ended December 31, 2022 .
The Company reported net income of $1,926,000 for the three months ended December 31, 2022 compared to net income of $1,967,000 for the same period last year. Diluted earnings per share were $1.27 for the three months ended December 31, 2022 compared to $1.29 for the same period last year.
The return on average assets for the three months ended December 31, 2022 was 1.32% and the return on average equity was 24.23%. The tax-equivalent net interest margin was 3.61% for the three months ended December 31, 2022 compared to 3.59% for the same period last year and the efficiency ratio was 50.73% for the three months ended December 31, 2022 compared to 43.14% for the same period last year.
For the year ended December 31, 2022 , the Company reported net income of $7,243,000 compared to net income of $7,915,000 for the same period last year. Diluted earnings per share were $4.74 for the year ended December 31, 2022 compared to $5.25 for the same period last year.
The return on average assets for the year ended December 31, 2022 was 1.24% and the return on average equity was 21.36%.
President and CEO, Matt Moseley stated, “We are pleased with our 2022 operating results. We are excited to begin the new year with the team and infrastructure we put in place in 2022.”
Net Interest Income
Net interest income increased to $5,156,000 for the quarter ended December 31, 2022 compared to $4,781,000 for the same quarter last year. For the year ended December 31, 2022 , net interest income increased to $19,307,000 compared to $17,993,000 for the same period last year.
Provision for credit losses
There was no provision for credit losses recorded for the quarter ended December 31, 2022 compared to $150,000 for the same quarter last year. For the year ended December 31, 2022 , the Company recorded a $113,000 provision for credit losses compared to $1,050,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2022 was $265,000 compared to $339,000 for the quarter ended December 31, 2021 . For the year ended December 31, 2022 , non-interest income was $1,060,000 compared to $2,245,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $2,750,000 for the quarter ended December 31, 2022 compared to $2,209,000 for the same period last year. For the year ended December 31, 2022 , non-interest expense was $10,118,000 compared to $8,067,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income, at December 31, 2022 were $420.4 million compared to $387.4 million at December 31, 2021 .
Total deposits were $534.8 million at December 31, 2022 compared to total deposits of $547.7 million at December 31, 2021 .
Credit Quality
The allowance for loan losses was $5,159,000 , or 1.23% of loans, net of unearned income, at December 31, 2022 , compared to $5,059,000 , or 1.31% of loans, net of unearned income, at December 31, 2021 . There were no nonperforming assets at December 31, 2022 and December 31, 2021 .
Capital
At December 31, 2022 , shareholders’ equity totaled $33.3 million compared to $37.0 million at December 31, 2021 . At December 31, 2022 , the Company's book value per common share was $22.48 compared to $25.31 at December 31, 2021 . During the year ended December 31, 2022 , increasing interest rates resulted in a decline in the fair value of available for sale investment securities. This impact is reflected in the decline in accumulated other comprehensive income (AOCI) to $(12,105,000) at December 31, 2022 , compared to $(945,000) at December 31, 2021 . Excluding AOCI, book value increased to $30.66 at December 31, 2022 , compared to $25.96 at December 31, 2021 .
AOCI has no effect on Cornerstone Community Bank’s (the Bank) regulatory capital ratios as the Bank opted to exclude it from regulatory capital calculations. At December 31, 2022 , the Bank’s estimated total risk-based capital ratio was 12.61% and its tier 1 capital to risk weighted assets ratio was 11.52%. The Bank remains well capitalized under the regulatory framework for prompt corrective action.
About Cornerstone Community Bancorp
Cornerstone Community Bancorp , a bank holding company headquartered in Red Bluff, California , serves the Red Bluff , Redding and Anderson communities through its wholly-owned subsidiary, Cornerstone Community Bank with a headquarters office in Red Bluff , two banking offices in Redding and one in Anderson . The Bank provides commercial banking services to small and mid-size businesses, including professional service firms, real estate developers and investors and not-for-profit organizations and to their owners and other individuals. Additional information about the Bank is available on its website at www.bankcornerstone.com
Forward-Looking Statements
This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Cornerstone Community Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, natural disasters (such as wildfires and earthquakes), pandemics such as COVID-19 and the economic impact caused directly by the disease and by government responses thereto, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation (including the Coronavirus Aid, Relief and Economic Security Act of 2022), interruptions of utility service in our markets for sustained periods, and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting Cornerstone Community Bancorp's operations, pricing, products and services. Forward-looking statements speak only as of the date they are made. Except as required by law, Cornerstone Community Bancorp does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
12/31/22
09/30/22
06/30/22
03/31/22
12/31/21
ASSETS
Cash and due from banks
$
5,628
$
6,011
$
5,230
$
4,175
$
4,552
Federal funds sold
123
122
121
121
121
Interest-bearing deposits
25,212
57,618
48,277
73,629
77,933
Investment securities
94,435
95,511
102,692
99,748
108,253
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
420,415
400,480
399,156
375,369
387,374
Allowance for loan losses
(5,159
)
(5,172
)
(5,132
)
(5,077
)
(5,059
)
Loans, net
415,256
395,308
394,024
370,292
382,315
Premises and equipment, net
14,601
14,671
14,691
14,757
14,784
Other assets
27,326
21,261
20,588
16,930
15,622
Total assets
$
582,581
$
590,502
$
585,623
$
579,652
$
603,580
LIABILITIES
Deposits:
Demand noninterest-bearing
$
126,946
$
129,236
$
130,249
$
131,136
$
174,282
Demand interest-bearing
136,655
138,630
131,623
126,331
131,368
Money market and savings
182,787
201,316
201,106
196,653
163,946
Time deposits
88,430
76,121
76,576
78,167
78,111
Total deposits
534,818
545,303
539,554
532,287
547,707
Borrowings and other obligations
-
-
-
-
5,000
Subordinated debentures
11,744
11,738
11,732
11,726
11,720
Interest payable and other liabilities
2,755
2,892
2,631
1,899
2,134
Total liabilities
549,317
559,933
553,917
545,912
566,561
SHAREHOLDERS' EQUITY
Common stock
15,075
14,964
15,079
15,009
14,913
Retained Earnings
30,294
28,368
26,432
24,726
23,051
Accumulated other comprehensive income (loss)
(12,105
)
(12,763
)
(9,805
)
(5,995
)
(945
)
Total shareholders' equity
33,264
30,569
31,706
33,740
37,019
Total liabilities and shareholders' equity
$
582,581
$
590,502
$
585,623
$
579,652
$
603,580
Total equity / total assets
5.71
%
5.18
%
5.41
%
5.82
%
6.13
%
Book value per share
$
22.48
$
20.81
$
21.51
$
22.93
$
25.31
Shares outstanding
1,479,862
1,469,091
1,474,091
1,471,591
1,462,591
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
Year ended
12/31/22
09/30/22
12/31/21
12/31/22
12/31/21
INTEREST INCOME
Loans
$
5,178
$
5,018
$
4,759
$
19,029
$
18,361
Federal funds sold
1
1
1
2
4
Investment securities
676
543
385
2,054
1,124
Other
515
354
60
1,073
180
Total interest income
6,370
5,916
5,205
22,158
19,669
INTEREST EXPENSE
Deposits:
Interest-bearing demand
214
130
49
454
187
Money market and savings
450
260
109
974
385
Time deposits
401
182
107
821
452
Other
149
148
159
602
652
Total interest expense
1,214
720
424
2,851
1,676
Net interest income
5,156
5,196
4,781
19,307
17,993
Provision for credit losses
-
40
150
113
1,050
Net interest income after provision for credit losses
5,156
5,156
4,631
19,194
16,943
NON-INTEREST INCOME
Service charges on deposit accounts
66
67
65
266
244
Gain on sale of loans
-
-
-
-
1,231
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
-
-
(45
)
Other non-interest income
199
198
274
794
815
Total non-interest income
265
265
339
1,060
2,245
OPERATING EXPENSES
Salaries and benefits
1,567
1,408
1,175
5,340
3,870
Premises and fixed assets
242
227
166
854
649
Other
941
1,064
868
3,924
3,548
Total operating expenses
2,750
2,699
2,209
10,118
8,067
Income before income taxes
2,671
2,722
2,761
10,136
11,121
Income taxes
745
786
794
2,893
3,206
NET INCOME
$
1,926
$
1,936
$
1,967
$
7,243
$
7,915
EARNINGS PER SHARE
Basic earnings per share
$
1.31
$
1.31
$
1.35
$
4.92
$
5.44
Diluted earnings per share
$
1.27
$
1.27
$
1.29
$
4.74
$
5.25
Average common shares outstanding
1,474,754
1,473,276
1,459,667
1,472,381
1,454,507
Average common and equivalent shares outstanding
1,520,935
1,523,830
1,518,908
1,526,734
1,507,561
PERFORMANCE MEASURES
Return on average assets
1.32
%
1.30
%
1.41
%
1.24
%
1.46
%
Return on average equity
24.23
%
23.11
%
21.63
%
21.36
%
23.35
%
Tax-equivalent net interest margin
3.61
%
3.60
%
3.59
%
3.43
%
3.50
%
Efficiency ratio
50.73
%
49.42
%
43.14
%
49.68
%
39.86
%
View source version on businesswire.com : https://www.businesswire.com/news/home/20230124006133/en/
Matthew B. Moseley
President & CEO
530.222.1460
Patrick E. Phelan
Chief Financial Officer
530.222.1460
Source: Cornerstone Community Bancorp