Cornerstone Community Bancorp Reports Financial Results for the Third Quarter Ended September 30, 2021
10/19/2021 - 08:33 AM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the third quarter ended September 30, 2021 .
The Company reported record net income of $2,085,000 for the three months ended September 30, 2021 compared to net income of $1,236,000 for the same period last year. Diluted earnings per share were $1.38 for the three months ended September 30, 2021 compared to $0.81 for the same period last year.
The return on average assets for the three months ended September 30, 2021 was 1.53% and the return on average equity was 23.52% . The tax-equivalent net interest margin was 3.66% for the three months ended September 30, 2021 compared to 2.99% for the same period last year and the efficiency ratio was 39.07% for the three months ended September 30, 2021 compared to 52.81% for the same period last year.
For the nine months ended September 30, 2021 , the Company reported net income of $5,948,000 compared to net income of $2,567,000 for the same period last year. Diluted earnings per share were $3.96 for the nine months ended September 30, 2021 compared to $1.68 for the same period last year.
The return on average assets for the nine months ended September 30, 2021 was 1.48% and the return on average equity was 23.98% .
President and CEO, Jeff Finck stated, “We posted record profits in the third quarter as loan and deposit totals continued to grow at a solid pace.”
Net Interest Income
Net interest income increased to $4,756,000 for the quarter ended September 30, 2021 compared to $3,376,000 for the same quarter last year. For the nine months ended September 30, 2021 , net interest income increased to $13,212,000 compared to $9,371,000 for the same period last year.
Provision for credit losses
Provision for credit losses were $400,000 for the quarter ended September 30, 2021 compared to no provision for the same quarter last year. For the nine months ended September 30, 2021 , the Company recorded a $900,000 provision for credit losses compared to $1,600,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended September 30, 2021 was $714,000 compared to $296,000 for the quarter ended September 30, 2020 . For the nine months ended September 30, 2021 , non-interest income was $2,013,000 compared to $894,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $2,137,000 for the quarter ended September 30, 2021 compared to $1,939,000 for the same period last year. For the nine months ended September 30, 2021 , non-interest expense was $5,965,000 compared to $5,247,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income at September 30, 2021 were $388.5 million $342.4 million September 30, 2020 .
Total deposits were $500.1 million September 30, 2021 compared to total deposits of $371.5 million September 30, 2020 .
Credit Quality
The allowance for loan losses was $4,909,000 , or 1.26% of loans, net of unearned income at September 30, 2021 , compared to $4,009,000 , or 1.17% of loans, net of unearned income at September 30, 2020 . There were no nonperforming assets at September 30, 2021 and September 30, 2020 .
Capital
At September 30, 2021 , shareholders’ equity totaled $35.5 million $28.9 million September 30, 2020 . Book value was $24.37 per share at September 30, 2021 compared to $19.38 per share at September 30, 2020 .
About Cornerstone Community Bancorp
Cornerstone Community Bancorp , a bank holding company headquartered in Red Bluff, California , serves the Red Bluff and Redding communities through its wholly-owned subsidiary, Cornerstone Community Bank with a headquarters office in Red Bluff and two banking offices in Redding . 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 Tax Cuts & Jobs Act of 2017 and the Coronavirus Aid, Relief and Economic Security Act of 2021), 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)
09/30/21
06/30/21
03/31/21
12/31/20
09/30/20
ASSETS
Cash and due from banks
$
4,765
$
5,450
$
5,417
$
3,811
$
5,455
Federal funds sold
2,600
2,256
5,761
14,166
5,045
Interest-bearing deposits
24,636
28,549
68,283
77,045
62,110
Investment securities
110,470
75,258
52,084
50,336
50,699
Loans held for sale
-
-
1,102
-
-
Loans, net of unearned income
388,532
390,748
382,253
332,176
342,416
Allowance for loan losses
(4,909
)
(4,509
)
(4,409
)
(4,009
)
(4,009
)
Loans, net
383,623
386,239
377,844
328,167
338,407
Premises and equipment, net
13,567
13,013
12,767
11,581
10,992
Other assets
14,863
14,972
13,974
12,724
12,577
Total assets
$
554,524
$
525,737
$
537,232
$
497,830
$
485,285
LIABILITIES
Deposits:
Demand noninterest-bearing
$
141,734
$
126,107
$
126,481
$
108,147
$
103,824
Demand interest-bearing
131,964
126,724
122,506
108,097
104,819
Money market and savings
150,149
150,086
163,232
146,655
87,035
Time deposits of less than $100,000
13,180
13,393
15,812
15,418
21,103
Time deposits of $100,000 or more
63,111
56,993
57,299
55,021
54,695
Total deposits
500,138
473,303
485,330
433,338
371,476
Borrowings and other obligations
5,000
5,000
5,000
15,000
78,136
Subordinated debentures
11,715
11,709
11,703
16,645
4,923
Interest payable and other liabilities
2,151
1,933
3,776
2,763
1,854
Total liabilities
519,004
491,945
505,809
467,746
456,389
SHAREHOLDERS' EQUITY
Common stock
14,814
14,771
14,681
14,584
15,462
Retained Earnings
21,084
18,999
17,183
15,136
13,077
Accumulated other comprehensive income (loss)
(378
)
22
(441
)
364
357
Total shareholders' equity
35,520
33,792
31,423
30,084
28,896
Total liabilities and shareholders' equity
$
554,524
$
525,737
$
537,232
$
497,830
$
485,285
Total equity / total assets
6.41
%
6.43
%
5.85
%
6.04
%
5.95
%
Book value per share
$
24.37
$
23.22
$
21.65
$
20.87
$
19.38
Shares outstanding
1,457,591
1,455,091
1,451,091
1,441,241
1,491,041
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
Nine months ended
09/30/21
06/30/21
09/30/20
09/30/21
09/30/20
INTEREST INCOME
Loans
$
4,772
$
4,379
$
3,695
$
13,602
$
10,663
Federal funds sold
-
1
1
3
22
Investment securities
360
217
161
739
333
Other
35
53
33
120
123
Total interest income
5,167
4,650
3,890
14,464
11,141
INTEREST EXPENSE
Deposits:
Interest-bearing demand
46
45
51
138
126
Money market and savings
96
93
79
276
384
Time deposits
107
114
198
345
789
Other
162
159
186
493
471
Total interest expense
411
411
514
1,252
1,770
Net interest income
4,756
4,239
3,376
13,212
9,371
Provision for credit losses
400
100
-
900
1,600
Net interest income after provision for credit losses
4,356
4,139
3,376
12,312
7,771
NON-INTEREST INCOME
Service charges on deposit accounts
62
59
49
179
167
Gain on sale of loans
396
135
-
1,231
186
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
91
(45
)
91
Other non-interest income
256
228
156
648
450
Total non-interest income
714
422
296
2,013
894
OPERATING EXPENSES
Salaries and benefits
1,048
968
979
2,695
2,310
Premises and fixed assets
212
199
200
590
709
Other
877
848
760
2,680
2,228
Total operating expenses
2,137
2,015
1,939
5,965
5,247
Income before income taxes
2,933
2,546
1,733
8,360
3,418
Income taxes
848
730
497
2,412
851
NET INCOME
$
2,085
$
1,816
$
1,236
$
5,948
$
2,567
EARNINGS PER SHARE
Basic earnings per share
$
1.43
$
1.25
$
0.83
$
4.09
$
1.73
Diluted earnings per share
$
1.38
$
1.20
$
0.81
$
3.96
$
1.68
Average common shares outstanding
1,456,531
1,453,915
1,491,041
1,452,768
1,485,661
Average common and equivalent shares outstanding
1,512,738
1,510,621
1,522,872
1,503,150
1,526,516
PERFORMANCE MEASURES
Return on average assets
1.53
%
1.35
%
1.05
%
1.48
%
0.85
%
Return on average equity
23.52
%
22.17
%
17.36
%
23.98
%
12.49
%
Tax-equivalent net interest margin
3.66
%
3.33
%
2.99
%
3.48
%
3.28
%
Efficiency ratio
39.07
%
43.23
%
52.81
%
39.18
%
51.12
%
View source version on businesswire.com : https://www.businesswire.com/news/home/20211019005728/en/
Jeffrey P. Finck
Patrick E. Phelan
Source: Cornerstone Community Bancorp
