Cornerstone Community Bancorp Reports Financial Results For the First Quarter Ended March 31, 2021
04/13/2021 - 01:07 PM
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the first quarter ended March 31, 2021.
The Company reported net income of $2,046,000 for the three months ended March 31, 2021 compared to net income of $47,000 for the same period last year. Diluted earnings per share were $1.38 for the three months ended March 31, 2021 compared to $0.03 for the same period last year.
The return on average assets for the three months ended March 31, 2021 was 1.56% and the return on average equity was 26.41% . The tax-equivalent net interest margin was 3.43% for the three months ended March 31, 2021 compared to 4.09% for the same period last year and the efficiency ratio declined to 35.61% for the three months ended March 31, 2021 compared to 58.65% for the same period last year.
President and CEO, Jeff Finck stated, “We had a solid performance in the first quarter. Our team continued to help both new and existing customers through the Paycheck Protection Program (PPP) application and forgiveness process.”
Net Interest Income
Net interest income increased to $4,217,000 for the quarter ended March 31, 2021 compared to $2,842,000 for the same quarter last year. First quarter 2021 net interest income was driven by accelerated PPP fee recognition from borrower forgiveness processing.
Provision for credit losses
Provision for credit losses were $400,000 for the quarter ended March 31, 2021 compared to $1,450,000 for the same quarter last year.
Non-Interest Income
Non-interest income for the quarter ended March 31, 2021 was $877,000 compared to $394,000 for the quarter ended March 31, 2020.
Non-Interest Expense
Non-interest expense was $1,814,000 for the quarter ended March 31, 2021 compared to $1,898,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income at March 31, 2021 were $382.3 million compared to $250.4 million at March 31, 2020.
Total deposits were $485.3 million at March 31, 2021 compared to total deposits of $268.0 million at March 31, 2020.
Credit Quality
The allowance for loan losses was $4,409,000 , or 1.15% of loans, net of unearned income at March 31, 2021, compared to $3,859,000 , or 1.54% of loans, net of unearned income at March 31, 2020. There were no nonperforming assets at March 31, 2021 and March 31, 2020.
Capital
At March 31, 2021, shareholders’ equity totaled $31.4 million compared to $26.1 million at March 31, 2020. Book value was $21.65 per share at March 31, 2021 compared to $17.63 per share at March 31, 2020.
During the fourth quarter of 2021, the Company repurchased 500 shares of its common stock for a total of $9,500.
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)
03/31/21
12/31/20
09/30/20
06/30/20
03/31/20
ASSETS
Cash and due from banks
$
5,417
$
3,811
$
5,455
$
6,350
$
4,965
Federal funds sold
5,761
14,166
5,045
10,402
17,385
Interest-bearing deposits
68,283
77,045
62,110
73,310
18,928
Investment securities
52,084
50,336
50,699
16,173
13,144
Loans held for sale
1,102
-
-
-
-
Loans, net of unearned income
382,253
332,176
342,416
333,620
250,353
Allowance for loan losses
(4,409
)
(4,009
)
(4,009
)
(4,009
)
(3,859
)
Loans, net
377,844
328,167
338,407
329,611
246,494
Premises and equipment, net
12,767
11,581
10,992
11,095
11,180
Other assets
13,974
12,724
12,577
11,882
11,330
Total assets
$
537,232
$
497,830
$
485,285
$
458,823
$
323,426
LIABILITIES
Deposits:
Demand noninterest-bearing
$
126,481
$
108,147
$
103,824
$
96,395
$
58,357
Demand interest-bearing
122,506
108,097
104,819
90,633
51,608
Money market and savings
163,232
146,655
87,035
79,550
77,273
Time deposits of less than $100,000
15,812
15,418
21,103
22,925
26,503
Time deposits of $100,000 or more
57,299
55,021
54,695
51,919
54,274
Total deposits
485,330
433,338
371,476
341,422
268,015
Borrowings and other obligations
5,000
15,000
78,136
83,136
23,000
Subordinated debentures
11,703
16,645
4,923
4,920
4,917
Interest payable and other liabilities
3,776
2,763
1,854
1,765
1,382
Total liabilities
505,809
467,746
456,389
431,243
297,314
SHAREHOLDERS' EQUITY
Common stock
14,681
14,584
15,462
15,440
15,336
Retained Earnings
17,183
15,136
13,077
11,841
10,557
Accumulated other comprehensive income (loss)
(441
)
364
357
299
219
Total shareholders' equity
31,423
30,084
28,896
27,580
26,112
Total liabilities and shareholders' equity
$
537,232
$
497,830
$
485,285
$
458,823
$
323,426
Total equity / total assets
5.85
%
6.04
%
5.95
%
6.01
%
8.07
%
Book value per share
$
21.65
$
20.87
$
19.38
$
18.50
$
17.63
Shares outstanding
1,451,091
1,441,241
1,491,041
1,491,041
1,481,041
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
03/31/21
12/31/20
03/31/20
INTEREST INCOME
Loans
$
4,451
$
4,761
$
3,356
Federal funds sold
2
2
17
Investment securities
162
162
90
Other
32
51
45
Total interest income
4,647
4,976
3,508
INTEREST EXPENSE
Deposits:
Interest-bearing demand
47
55
35
Money market and savings
87
80
186
Time deposits
124
155
331
Other
172
221
114
Total interest expense
430
511
666
Net interest income
4,217
4,465
2,842
Provision for credit losses
400
-
1,450
Net interest income after provision
for credit losses
3,817
4,465
1,392
NON-INTEREST INCOME
Service charges on deposit accounts
58
55
72
Gain on sale of loans
700
61
186
Gain (loss) on sale of other real estate owned
-
-
-
Gain (loss) on sale of securities
(45
)
-
-
Other non-interest income
164
229
136
Total non-interest income
877
345
394
OPERATING EXPENSES
Salaries and benefits
679
970
939
Premises and fixed assets
179
182
252
Other
956
757
707
Total operating expenses
1,814
1,909
1,898
Income before income taxes
2,880
2,901
(112
)
Income taxes
834
842
(159
)
NET INCOME
$
2,046
$
2,059
$
47
EARNINGS PER SHARE
Basic earnings per share
$
1.41
$
1.39
$
0.03
Diluted earnings per share
$
1.38
$
1.36
$
0.03
Average common shares outstanding
1,447,763
1,477,361
1,480,668
Average common and equivalent
shares outstanding
1,485,953
1,511,365
1,532,685
PERFORMANCE MEASURES
Return on average assets
1.56
%
1.68
%
0.06
%
Return on average equity
26.41
%
27.70
%
0.71
%
Tax-equivalent net interest margin
3.43
%
3.81
%
4.09
%
Efficiency ratio
35.61
%
39.69
%
58.65
%
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