Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2021
01/20/2022 - 03:11 PM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the fourth quarter and full year ended December 31, 2021 .
The Company reported net income of $1,967,000 for the three months ended December 31, 2021 compared to net income of $2,059,000 for the same period last year. Diluted earnings per share were $1.29 for the three months ended December 31, 2021 compared to $1.36 for the same period last year.
The return on average assets for the three months ended December 31, 2021 was 1.41% and the return on average equity was 21.63% . The tax-equivalent net interest margin was 3.59% for the three months ended December 31, 2021 compared to 3.81% for the same period last year and the efficiency ratio was 43.43% for the three months ended December 31, 2021 compared to 39.69% for the same period last year.
For the year ended December 31, 2021 , the Company reported record net income of $7,915,000 compared to net income of $4,626,000 for the same period last year. Diluted earnings per share were $5.25 for the year ended December 31, 2021 compared to $3.04 for the same period last year.
The return on average assets for the year ended December 31, 2021 was 1.46% and the return on average equity was 23.35% .
President and CEO, Jeff Finck stated, “We are very pleased with our 2021 results. Loans and deposits grew at a strong pace. We look forward to 2022 with the opening of our Anderson branch in the first quarter.”
Net Interest Income
Net interest income increased to $4,781,000 for the quarter ended December 31, 2021 compared to $4,465,000 for the same quarter last year. For the year ended December 31, 2021 , net interest income increased to $17,993,000 compared to $13,836,000 for the same period last year.
Provision for credit losses
Provision for credit losses were $150,000 for the quarter ended December 31, 2021 compared to no provision for the same quarter last year. For the year ended December 31, 2021 , the Company recorded a $1,050,000 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 December 31, 2021 was $365,000 compared to $345,000 for the quarter ended December 31, 2020 . For the year ended December 31, 2021 , non-interest income was $2,378,000 compared to $1,239,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $2,235,000 for the quarter ended December 31, 2021 compared to $1,909,000 for the same period last year. For the year ended December 31, 2021 , non-interest expense was $8,200,000 compared to $7,156,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income at December 31, 2021 were $387.4 million compared to $332.2 million at December 31, 2020 .
Total deposits were $547.7 million at December 31, 2021 compared to total deposits of $433.3 million at December 31, 2020 .
Credit Quality
The allowance for loan losses was $5,059,000 , or 1.31% of loans, net of unearned income at December 31, 2021 , compared to $4,009,000 , or 1.21% of loans, net of unearned income at December 31, 2020 . There were no nonperforming assets at December 31, 2021 and December 31, 2020 .
Capital
At December 31, 2021 , shareholders’ equity totaled $37.0 million compared to $30.1 million at December 31, 2020 . Book value was $25.31 per share at December 31, 2021 compared to $20.87 per share at December 31, 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)
12/31/21
09/30/21
06/30/21
03/31/21
12/31/20
ASSETS
Cash and due from banks
$
4,552
$
4,765
$
5,450
$
5,417
$
3,811
Federal funds sold
121
2,600
2,256
5,761
14,166
Interest-bearing deposits
77,933
24,636
28,549
68,283
77,045
Investment securities
108,253
110,470
75,258
52,084
50,336
Loans held for sale
-
-
-
1,102
-
Loans, net of unearned income
387,374
388,532
390,748
382,253
332,176
Allowance for loan losses
(5,059
)
(4,909
)
(4,509
)
(4,409
)
(4,009
)
Loans, net
382,315
383,623
386,239
377,844
328,167
Premises and equipment, net
14,488
13,567
13,013
12,767
11,581
Other assets
15,622
14,863
14,972
13,974
12,724
Total assets
$
603,284
$
554,524
$
525,737
$
537,232
$
497,830
LIABILITIES
Deposits:
Demand noninterest-bearing
$
174,282
$
141,734
$
126,107
$
126,481
$
108,147
Demand interest-bearing
131,368
131,964
126,724
122,506
108,097
Money market and savings
163,946
150,149
150,086
163,232
146,655
Time deposits of less than $100,000
13,662
13,180
13,393
15,812
15,418
Time deposits of $100,000 or more
64,449
63,111
56,993
57,299
55,021
Total deposits
547,707
500,138
473,303
485,330
433,338
Borrowings and other obligations
5,000
5,000
5,000
5,000
15,000
Subordinated debentures
11,720
11,715
11,709
11,703
16,645
Interest payable and other liabilities
1,838
2,151
1,933
3,776
2,763
Total liabilities
566,265
519,004
491,945
505,809
467,746
SHAREHOLDERS' EQUITY
Common stock
14,913
14,814
14,771
14,681
14,584
Retained Earnings
23,051
21,084
18,999
17,183
15,136
Accumulated other comprehensive income (loss)
(945
)
(378
)
22
(441
)
364
Total shareholders' equity
37,019
35,520
33,792
31,423
30,084
Total liabilities and shareholders' equity
$
603,284
$
554,524
$
525,737
$
537,232
$
497,830
Total equity / total assets
6.14
%
6.41
%
6.43
%
5.85
%
6.04
%
Book value per share
$
25.31
$
24.37
$
23.22
$
21.65
$
20.87
Shares outstanding
1,462,591
1,457,591
1,455,091
1,451,091
1,441,241
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
Year ended
12/31/21
09/30/21
12/31/20
12/31/21
12/31/20
INTEREST INCOME
Loans
$
4,759
$
4,772
$
4,761
$
18,361
$
15,424
Federal funds sold
1
-
2
4
24
Investment securities
385
360
162
1,124
495
Other
60
35
51
180
174
Total interest income
5,205
5,167
4,976
19,669
16,117
INTEREST EXPENSE
Deposits:
Interest-bearing demand
49
46
55
187
181
Money market and savings
109
96
80
385
464
Time deposits
107
107
155
452
944
Other
159
162
221
652
692
Total interest expense
424
411
511
1,676
2,281
Net interest income
4,781
4,756
4,465
17,993
13,836
Provision for credit losses
150
400
-
1,050
1,600
Net interest income after provision for credit losses
4,631
4,356
4,465
16,943
12,236
NON-INTEREST INCOME
Service charges on deposit accounts
65
62
55
244
222
Gain on sale of loans
-
396
61
1,231
247
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
-
(45
)
91
Other non-interest income
300
256
229
948
679
Total non-interest income
365
714
345
2,378
1,239
OPERATING EXPENSES
Salaries and benefits
1,175
1,048
970
3,870
3,280
Premises and fixed assets
192
212
182
782
891
Other
868
877
757
3,548
2,985
Total operating expenses
2,235
2,137
1,909
8,200
7,156
Income before income taxes
2,761
2,933
2,901
11,121
6,319
Income taxes
794
848
842
3,206
1,693
NET INCOME
$
1,967
$
2,085
$
2,059
$
7,915
$
4,626
EARNINGS PER SHARE
Basic earnings per share
$
1.35
$
1.43
$
1.39
$
5.44
$
3.12
Diluted earnings per share
$
1.29
$
1.38
$
1.36
$
5.25
$
3.04
Average common shares outstanding
1,459,667
1,456,531
1,477,361
1,454,507
1,483,575
Average common and equivalent shares outstanding
1,518,908
1,512,738
1,511,365
1,507,561
1,522,714
PERFORMANCE MEASURES
Return on average assets
1.41
%
1.53
%
1.68
%
1.46
%
1.09
%
Return on average equity
21.63
%
23.52
%
27.70
%
23.35
%
16.53
%
Tax-equivalent net interest margin
3.59
%
3.66
%
3.81
%
3.50
%
3.45
%
Efficiency ratio
43.43
%
39.07
%
39.69
%
40.25
%
47.47
%
View source version on businesswire.com : https://www.businesswire.com/news/home/20220120005959/en/
Jeffrey P. Finck
President & CEO
530.222.1460
Patrick E. Phelan
Chief Financial Officer
530.222.1460
Source: Cornerstone Community Bancorp