Cornerstone Community Bancorp Reports Financial Results For the First Quarter Ended March 31, 2023
04/21/2023 - 12:57 PM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the first quarter ended March 31, 2023 .
The Company reported net income of $1,695,000 March 31, 2023 compared to net income of $1,675,000 $1.11 March 31, 2023 compared to $1.09
The return on average assets for the three months ended March 31, 2023 was 1.13% and the return on average equity was 19.20% . The tax-equivalent net interest margin was 3.65% for the three months ended March 31, 2023 compared to 3.17% for the same period last year.
President and CEO, Matt Moseley , stated, “Cornerstone Community Bank continues to be a well performing bank due to our strong team and loyal customer base. While elevated levels of deposits have exited banks nation-wide, Cornerstone experienced deposit growth in the 1st quarter compared to both year-end 2022 and 1st quarter of 2022. The bank has a well-positioned liquidity profile with a diversified deposit base. Our estimated level of uninsured deposits at March 31, 2023 was 37% and the bank maintains both on and off balance sheet liquidity of $283 million
Net Interest Income
Net interest income increased to $5,180,000 March 31, 2023 compared to $4,350,000
Provision for credit losses on loans
The Company recorded a $110,000 March 31, 2023 compared to $18,000
Non-Interest Income
Non-interest income for the quarter ended March 31, 2023 was $310,000 $264,000 March 31, 2022 .
Non-Interest Expense
Non-interest expense was $3,024,000 March 31, 2023 compared to $2,243,000
Balance Sheet
Total loans, net of unearned income, at March 31, 2023 were $431.5 million $375.4 million March 31, 2022 .
Total deposits were $565.7 million March 31, 2023 compared to total deposits of $532.3 million March 31, 2022 .
Credit Quality
The allowance for credit losses on loans was $5,397,000 1.25% of loans, net of unearned income, at March 31, 2023 , compared to $5,077,000 1.35% of loans, net of unearned income, at March 31, 2022 . Nonperforming assets totaled $233,000 March 31, 2023 . There were no nonperforming assets at March 31, 2022 .
Adoption of CECL
The Company adopted the current expected credit loss ("CECL") accounting standard on January 1, 2023 . Upon adoption of the CECL standard, the Company increased the allowance for credit losses on loans by $127,549 $90,366 $26,191
Capital
At March 31, 2023 , shareholders’ equity totaled $36.4 million $33.7 million March 31, 2022 . At March 31, 2023 , the Company's book value per common share was $24.57 $22.93 March 31, 2022 .
At March 31, 2023 , the Bank’s estimated total risk-based capital ratio was 12.95% and its tier 1 capital to risk weighted assets ratio was 11.84% . 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)
03/31/23 12/31/22 09/30/22 06/30/22 03/31/22
ASSETS
Cash and due from banks
$
7,365
$
5,628
$
6,011
$
5,230
$
4,175
Federal funds sold
124
123
122
121
121
Interest-bearing deposits
44,706
25,212
57,618
48,277
73,629
Investment securities
95,139
94,435
95,511
102,692
99,748
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
431,475
420,415
400,480
399,156
375,369
Allowance for credit losses on loans
(5,397
)
(5,159
)
(5,172
)
(5,132
)
(5,077
)
Loans, net
426,079
415,256
395,308
394,024
370,292
Premises and equipment, net
14,492
14,601
14,671
14,691
14,757
Other assets
28,906
27,326
21,261
20,588
16,930
Total assets
$
616,812
$
582,581
$
590,502
$
585,623
$
579,652
LIABILITIES
Deposits:
Demand noninterest-bearing
$
125,008
$
126,946
$
129,236
$
130,249
$
131,136
Demand interest-bearing
165,203
136,655
138,630
131,623
126,331
Money market and savings
180,996
182,787
201,316
201,106
196,653
Time deposits
94,542
88,430
76,121
76,576
78,167
Total deposits
565,749
534,818
545,303
539,554
532,287
Borrowings and other obligations
-
-
-
-
-
Subordinated debentures
11,750
11,744
11,738
11,732
11,726
Interest payable and other liabilities
2,954
2,755
2,892
2,631
1,899
Total liabilities
580,452
549,317
559,933
553,917
545,912
SHAREHOLDERS' EQUITY
Common stock
15,113
15,075
14,964
15,079
15,009
Retained Earnings
31,963
30,294
28,368
26,432
24,726
Accumulated other comprehensive income (loss)
(10,716
)
(12,105
)
(12,763
)
(9,805
)
(5,995
)
Total shareholders' equity
36,360
33,264
30,569
31,706
33,740
Total liabilities and shareholders' equity
$
616,812
$
582,581
$
590,502
$
585,623
$
579,652
Total equity / total assets
5.89
%
5.71
%
5.18
%
5.41
%
5.82
%
Book value per share
$
24.57
$
22.48
$
20.81
$
21.51
$
22.93
Shares outstanding
1,479,862
1,479,862
1,469,091
1,474,091
1,471,591
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
03/31/23 12/31/22 03/31/22
INTEREST INCOME
Loans
$
5,551
$
5,178
$
4,348
Federal funds sold
1
1
-
Investment securities
724
676
371
Other
467
515
58
Total interest income
6,744
6,370
4,777
INTEREST EXPENSE
Deposits:
Interest-bearing demand
247
214
46
Money market and savings
579
450
117
Time deposits
589
401
107
Other
149
149
157
Total interest expense
1,564
1,214
427
Net interest income
5,180
5,156
4,350
Provision for credit losses on loans
110
-
18
Net interest income after provision
for credit losses
5,070
5,156
4,332
NON-INTEREST INCOME
Service charges on deposit accounts
62
66
71
Gain on sale of loans
-
-
-
Gain (loss) on sale of other real estate owned
-
-
-
Gain (loss) on sale of securities
-
-
-
Other non-interest income
247
199
193
Total non-interest income
310
265
264
OPERATING EXPENSES
Salaries and benefits
1,649
1,567
1,146
Premises and fixed assets
313
242
191
Other
1,061
941
906
Total operating expenses
3,024
2,750
2,243
Income before income taxes
2,355
2,671
2,353
Income taxes
660
745
678
NET INCOME
$
1,695
$
1,926
$
1,675
EARNINGS PER SHARE
Basic earnings per share
$
1.15
$
1.31
$
1.14
Diluted earnings per share
$
1.11
$
1.27
$
1.09
Average common shares outstanding
1,479,862
1,474,754
1,469,258
Average common and equivalent
shares outstanding
1,525,267
1,520,935
1,532,163
PERFORMANCE MEASURES
Return on average assets
1.13
%
1.32
%
1.15
%
Return on average equity
19.20
%
24.23
%
18.22
%
Tax-equivalent net interest margin
3.65
%
3.61
%
3.17
%
Efficiency ratio
55.09
%
50.73
%
48.61
%
View source version on businesswire.com : https://www.businesswire.com/news/home/20230421005349/en/
Matthew B. Moseley
Patrick E. Phelan
Source: Cornerstone Community Bancorp
