Cornerstone Community Bancorp Reports Financial Results For the Second Quarter Ended June 30, 2021
07/22/2021 - 05:21 PM
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the second quarter ended June 30, 2021.
The Company reported net income of $1,816,000 for the three months ended June 30, 2021 compared to net income of $1,284,000 for the same period last year. Diluted earnings per share were $1.20 for the three months ended June 30, 2021 compared to $0.84 for the same period last year.
The return on average assets for the three months ended June 30, 2021 was 1.35% and the return on average equity was 22.17% . The tax-equivalent net interest margin was 3.33% for the three months ended June 30, 2021 compared to 3.06% for the same period last year and the efficiency ratio was 43.23% for the three months ended June 30, 2021 compared to 42.00% for the same period last year.
For the six months ended June 30, 2021, the Company reported net income of $3,863,000 compared to net income of $1,331,000 for the same period last year. Diluted earnings per share were $2.58 for the six months ended June 30, 2021 compared to $0.87 for the same period last year.
The return on average assets for the six months ended June 30, 2021 was 1.45% and the return on average equity was 24.24% .
President and CEO, Jeff Finck stated, “We continue to grow loans, deposits and earnings. Asset quality remains strong with no nonperforming assets.”
Net Interest Income
Net interest income increased to $4,239,000 for the quarter ended June 30, 2021 compared to $3,153,000 for the same quarter last year. For the six months ended June 30, 2021, net interest income increased to $8,456,000 compared to $5,995,000 for the same period last year.
Provision for credit losses
Provision for credit losses were $100,000 for the quarter ended June 30, 2021 compared to $150,000 for the same quarter last year. For the six months ended June 30, 2021, the Company recorded a $500,000 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 June 30, 2021 was $422,000 compared to $204,000 for the quarter ended June 30, 2020. For the six months ended June 30, 2021, non-interest income was $1,299,000 compared to $598,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $2,015,000 for the quarter ended June 30, 2021 compared to $1,410,000 for the same period last year. For the six months ended June 30, 2021, non-interest expense was $3,828,000 compared to $3,308,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income at June 30, 2021 were $390.7 million compared to $333.6 million at June 30, 2020.
Total deposits were $473.3 million at June 30, 2021 compared to total deposits of $341.4 million at June 30, 2020.
Credit Quality
The allowance for loan losses was $4,509,000, or 1.15% of loans, net of unearned income at June 30, 2021, compared to $4,009,000, or 1.20% of loans, net of unearned income at June 30, 2020. There were no nonperforming assets at June 30, 2021 and June 30, 2020.
Capital
At June 30, 2021, shareholders’ equity totaled $33.8 million compared to $27.6 million at June 30, 2020. Book value was $23.22 per share at June 30, 2021 compared to $18.50 per share at June 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)
06/30/21 03/31/21 12/31/20 09/30/20 06/30/20
ASSETS
Cash and due from banks
$
5,450
$
5,417
$
3,811
$
5,455
$
6,350
Federal funds sold
2,256
5,761
14,166
5,045
10,402
Interest-bearing deposits
28,549
68,283
77,045
62,110
73,310
Investment securities
75,258
52,084
50,336
50,699
16,173
Loans held for sale
-
1,102
-
-
-
Loans, net of unearned income
390,748
382,253
332,176
342,416
333,620
Allowance for loan losses
(4,509
)
(4,409
)
(4,009
)
(4,009
)
(4,009
)
Loans, net
386,239
377,844
328,167
338,407
329,611
Premises and equipment, net
13,013
12,767
11,581
10,992
11,095
Other assets
14,972
13,974
12,724
12,577
11,882
Total assets
$
525,737
$
537,232
$
497,830
$
485,285
$
458,823
LIABILITIES
Deposits:
Demand noninterest-bearing
$
126,107
$
126,481
$
108,147
$
103,824
$
96,395
Demand interest-bearing
126,724
122,506
108,097
104,819
90,633
Money market and savings
150,086
163,232
146,655
87,035
79,550
Time deposits of less than $100,000
13,393
15,812
15,418
21,103
22,925
Time deposits of $100,000 or more
56,993
57,299
55,021
54,695
51,919
Total deposits
473,303
485,330
433,338
371,476
341,422
Borrowings and other obligations
5,000
5,000
15,000
78,136
83,136
Subordinated debentures
11,709
11,703
16,645
4,923
4,920
Interest payable and other liabilities
1,933
3,776
2,763
1,854
1,765
Total liabilities
491,945
505,809
467,746
456,389
431,243
SHAREHOLDERS' EQUITY
Common stock
14,771
14,681
14,584
15,462
15,440
Retained Earnings
18,999
17,183
15,136
13,077
11,841
Accumulated other comprehensive income (loss)
22
(441
)
364
357
299
Total shareholders' equity
33,792
31,423
30,084
28,896
27,580
Total liabilities and shareholders' equity
$
525,737
$
537,232
$
497,830
$
485,285
$
458,823
Total equity / total assets
6.43
%
5.85
%
6.04
%
5.95
%
6.01
%
Book value per share
$
23.22
$
21.65
$
20.87
$
19.38
$
18.50
Shares outstanding
1,455,091
1,451,091
1,441,241
1,491,041
1,491,041
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended Six months ended
06/30/21 03/31/21 06/30/20 06/30/21 06/30/20
INTEREST INCOME
Loans
$
4,379
$
4,451
$
3,612
$
8,830
$
6,968
Federal funds sold
1
2
4
3
21
Investment securities
217
162
82
379
172
Other
53
32
45
85
90
Total interest income
4,650
4,647
3,743
9,297
7,251
INTEREST EXPENSE
Deposits:
Interest-bearing demand
45
47
40
92
75
Money market and savings
93
87
119
180
305
Time deposits
114
124
260
238
591
Other
159
172
171
331
285
Total interest expense
411
430
590
841
1,256
Net interest income
4,239
4,217
3,153
8,456
5,995
Provision for credit losses
100
400
150
500
1,600
Net interest income after provision for credit losses
4,139
3,817
3,003
7,956
4,395
NON-INTEREST INCOME
Service charges on deposit accounts
59
58
46
117
118
Gain on sale of loans
135
700
-
835
186
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
(45
)
-
(45
)
-
Other non-interest income
228
164
158
392
294
Total non-interest income
422
877
204
1,299
598
OPERATING EXPENSES
Salaries and benefits
968
679
392
1,647
1,331
Premises and fixed assets
199
179
257
378
509
Other
848
956
761
1,803
1,468
Total operating expenses
2,015
1,814
1,410
3,828
3,308
Income before income taxes
2,546
2,880
1,797
5,427
1,685
Income taxes
730
834
513
1,564
354
NET INCOME
$
1,816
$
2,046
$
1,284
$
3,863
$
1,331
EARNINGS PER SHARE
Basic earnings per share
$
1.25
$
1.41
$
0.86
$
2.66
$
0.90
Diluted earnings per share
$
1.20
$
1.38
$
0.84
$
2.58
$
0.87
Average common shares outstanding
1,453,915
1,447,763
1,485,217
1,450,856
1,482,942
Average common and equivalent shares outstanding
1,510,621
1,485,953
1,523,322
1,497,565
1,528,547
PERFORMANCE MEASURES
Return on average assets
1.35
%
1.56
%
1.18
%
1.45
%
0.72
%
Return on average equity
22.17
%
26.41
%
18.92
%
24.24
%
9.90
%
Tax-equivalent net interest margin
3.33
%
3.43
%
3.06
%
3.38
%
3.48
%
Efficiency ratio
43.23
%
35.61
%
42.00
%
39.24
%
50.17
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20210722006021/en/
