Cornerstone Community Bancorp Reports Financial Results For the Third Quarter Ended September 30, 2023
Cornerstone Community Bancorp reported net income of $1.92 million for Q3 2023, compared to $1.94 million for the same period last year. Diluted earnings per share were $1.26, and the return on average assets was 1.21%. Net interest income increased to $5.65 million, while non-interest income was $369,000. Total loans were $470.1 million, and total deposits were $575.7 million. Shareholders' equity totaled $38.5 million.
Positive
Cornerstone Community Bancorp reported positive financial results for Q3 2023, with net income of $1.92 million, an increase in net interest income to $5.65 million, and an increase in total loans to $470.1 million. Shareholders' equity also increased to $38.5 million.
Negative
The provision for credit losses on loans increased to $200,000 for Q3 2023, compared to $40,000 for the same period last year. Non-interest expense also increased to $3.17 million.
10/23/2023 - 06:58 PM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the third quarter ended September 30, 2023.
The Company reported net income of $1,920,000 $1,936,000 $1.26 $1.27
The return on average assets for the three months ended September 30, 2023 was 1.21% and the return on average equity was 19.58% . The tax-equivalent net interest margin was 3.68% for the three months ended September 30, 2023 compared to 3.60% for the same period last year.
For the nine months ended September 30, 2023, the Company reported net income of $5,479,000 $5,317,000 $3.60 $3.48
The return on average assets for the nine months ended September 30, 2023 was 1.18% and the return on average equity was 19.51% .
President and CEO, Matt Moseley stated, “Cornerstone Community Bank continues to perform well in this challenging environment and enjoys strong community and customer support. I am proud of our team and our continued success.”
Net Interest Income
Net interest income increased to $5,646,000 $5,196,000 $16,366,000 $14,151,000
Provision for credit losses on loans
The Company recorded a $200,000 $40,000 $530,000 $113,000
Non-Interest Income
Non-interest income for the quarter ended September 30, 2023 was $369,000 $265,000 $1,031,000 $795,000
Non-Interest Expense
Non-interest expense was $3,168,000 $2,699,000 $9,276,000 $7,368,000
Balance Sheet
Total loans, net of unearned income, at September 30, 2023 were $470.1 million $400.5 million
Total deposits were $575.7 million $545.3 million
Credit Quality
The allowance for credit losses on loans was $5,813,000 1.24% of loans, net of unearned income, at September 30, 2023, compared to $5,172,000 1.29% of loans, net of unearned income, at September 30, 2022. Nonperforming assets totaled $229,000
Capital
At September 30, 2023, shareholders’ equity totaled $38.5 million $30.6 million $26.01 $20.81
At September 30, 2023, the Bank’s estimated total risk-based capital ratio was 12.78% and its tier 1 capital to risk weighted assets ratio was 11.66% . 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)
09/30/23 06/30/23 03/31/23 12/31/22 09/30/22
ASSETS
Cash and due from banks
$
5,492
$
8,482
$
7,365
$
5,628
$
6,011
Federal funds sold
-
-
124
123
122
Interest-bearing deposits
23,970
34,076
44,706
25,212
57,618
Investment securities
90,086
93,889
95,139
94,435
95,511
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
470,060
447,339
431,475
420,415
400,480
Allowance for loan losses
(5,813
)
(5,617
)
(5,397
)
(5,159
)
(5,172
)
Loans, net
464,247
441,722
426,079
415,256
395,308
Premises and equipment, net
14,437
14,492
14,492
14,601
14,671
Other assets
31,241
29,724
28,906
27,326
21,261
Total assets
$
629,472
$
622,385
$
616,812
$
582,581
$
590,502
LIABILITIES
Deposits:
Demand noninterest-bearing
$
100,791
$
109,775
$
125,008
$
126,946
$
129,236
Demand interest-bearing
190,645
179,508
165,203
136,655
138,630
Money market and savings
176,373
177,976
180,996
182,787
201,316
Time deposits
107,894
101,991
94,542
88,430
76,121
Total deposits
575,703
569,250
565,749
534,818
545,303
Borrowings and other obligations
-
-
-
-
-
Subordinated debentures
11,762
11,756
11,750
11,744
11,738
Interest payable and other liabilities
3,512
3,070
2,954
2,755
2,892
Total liabilities
590,977
584,076
580,452
549,317
559,933
SHAREHOLDERS' EQUITY
Common stock
15,130
15,140
15,113
15,075
14,964
Retained Earnings
35,747
33,827
31,963
30,294
28,368
Accumulated other comprehensive income (loss)
(12,382
)
(10,658
)
(10,716
)
(12,105
)
(12,763
)
Total shareholders' equity
38,495
38,309
36,360
33,264
30,569
Total liabilities and shareholders' equity
$
629,472
$
622,385
$
616,812
$
582,581
$
590,502
Total equity / total assets
6.12
%
6.16
%
5.89
%
5.71
%
5.18
%
Book value per share
$
26.01
$
25.89
$
24.57
$
22.48
$
20.81
Shares outstanding
1,479,862
1,479,862
1,479,862
1,479,862
1,469,091
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended Nine months ended
09/30/23 06/30/23 09/30/22 09/30/23 09/30/22
INTEREST INCOME
Loans
$
6,517
$
5,955
$
5,018
$
18,023
$
13,851
Federal funds sold
-
2
1
3
1
Investment securities
739
734
543
2,197
1,378
Other
558
667
354
1,692
558
Total interest income
7,814
7,358
5,916
21,915
15,788
INTEREST EXPENSE
Deposits:
Interest-bearing demand
289
209
130
745
240
Money market and savings
798
675
260
2,052
524
Time deposits
933
784
182
2,306
420
Other
148
149
148
446
453
Total interest expense
2,168
1,817
720
5,549
1,637
Net interest income
5,646
5,541
5,196
16,366
14,151
Provision for credit losses
200
220
40
530
113
Net interest income after provision
for credit losses
5,446
5,321
5,156
15,836
14,038
NON-INTEREST INCOME
Service charges on deposit accounts
63
75
67
200
200
Gain on sale of loans
-
-
-
-
-
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
-
-
-
Other non-interest income
306
278
198
831
595
Total non-interest income
369
353
265
1,031
795
OPERATING EXPENSES
Salaries and benefits
1,781
1,668
1,408
5,098
3,773
Premises and fixed assets
268
266
227
847
612
Other
1,119
1,151
1,064
3,331
2,983
Total operating expenses
3,168
3,085
2,699
9,276
7,368
Income before income taxes
2,647
2,589
2,722
7,591
7,465
Income taxes
727
725
786
2,112
2,148
NET INCOME
$
1,920
$
1,864
$
1,936
$
5,479
$
5,317
EARNINGS PER SHARE
Basic earnings per share
$
1.30
$
1.26
$
1.31
$
3.70
$
3.61
Diluted earnings per share
$
1.26
$
1.22
$
1.27
$
3.60
$
3.48
Average common shares outstanding
1,479,862
1,479,862
1,473,276
1,479,862
1,471,582
Average common and equivalent
shares outstanding
1,524,640
1,522,072
1,523,830
1,524,029
1,528,628
PERFORMANCE MEASURES
Return on average assets
1.21
%
1.20
%
1.30
%
1.18
%
1.21
%
Return on average equity
19.58
%
19.71
%
23.11
%
19.51
%
20.48
%
Tax-equivalent net interest margin
3.68
%
3.73
%
3.60
%
3.69
%
3.37
%
Efficiency ratio
52.67
%
52.34
%
49.42
%
53.32
%
49.30
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20231023232684/en/
Matthew B. Moseley
Patrick E. Phelan
Source: Cornerstone Community Bancorp
What were Cornerstone Community Bancorp's net income and diluted earnings per share for Q3 2023?
Cornerstone Community Bancorp reported net income of $1.92 million and diluted earnings per share of $1.26 for Q3 2023.
What was the return on average assets for Q3 2023?
The return on average assets for Q3 2023 was 1.21%.
What was the net interest income for Q3 2023?
The net interest income for Q3 2023 was $5.65 million.
What were Cornerstone Community Bancorp's total loans and total deposits at September 30, 2023?
Cornerstone Community Bancorp had total loans of $470.1 million and total deposits of $575.7 million at September 30, 2023.
What was the shareholders' equity at September 30, 2023?
The shareholders' equity at September 30, 2023 was $38.5 million.
