Cornerstone Community Bancorp Reports Financial Results For the Second Quarter Ended June 30, 2023
Cornerstone Community Bancorp (OTC Pink: CRSB) reported net income of $1,864,000 for Q2 2023, compared to $1,706,000 for the same period last year. Diluted earnings per share were $1.22, up from $1.12. Return on average assets was 1.20% and return on average equity was 19.71%. Net interest income increased to $5,541,000. Provision for credit losses on loans increased to $220,000. Non-interest income was $353,000. Non-interest expense was $3,085,000. Total loans were $447.3 million and total deposits were $569.3 million. Shareholders' equity was $38.3 million.
Positive
Cornerstone Community Bancorp reported increased net income and diluted earnings per share for Q2 2023. Return on average assets and return on average equity also improved. Net interest income and total deposits increased. Shareholders' equity also grew.
Negative
The provision for credit losses on loans increased for Q2 2023. Non-interest expense also increased.
07/25/2023 - 05:00 PM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the second quarter ended June 30, 2023.
The Company reported net income of $1,864,000 for the three months ended June 30, 2023 compared to net income of $1,706,000 for the same period last year. Diluted earnings per share were $1.22 for the three months ended June 30, 2023 compared to $1.12 for the same period last year.
The return on average assets for the three months ended June 30, 2023 was 1.20% and the return on average equity was 19.71% . The tax-equivalent net interest margin was 3.73% for the three months ended June 30, 2023 compared to 3.32% for the same period last year.
For the six months ended June 30, 2023, the Company reported net income of $3,559,000 compared to net income of $3,381,000 for the same period last year. Diluted earnings per share were $2.34 for the six months ended June 30, 2023 compared to $2.21 for the same period last year.
The return on average assets for the six months ended June 30, 2023 was 1.16% and the return on average equity was 19.47% .
President and CEO, Matt Moseley stated, “I am proud of Cornerstone’s performance as our team continues to work hard to meet the financial needs of our customers and our community.”
Net Interest Income
Net interest income increased to $5,541,000 for the quarter ended June 30, 2023 compared to $4,605,000 for the same quarter last year. For the six months ended June 30, 2023, net interest income increased to $10,720,000 compared to $8.95 5,000 for the same period last year.
Provision for credit losses on loans
The Company recorded a $220,000 provision for credit losses on loans during the three months ended June 30, 2023 compared to $55,000 for the same period last year. For the six months ended June 30, 2023, the Company recorded a $330,000 provision for credit losses compared to $73,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended June 30, 2023 was $353,000 compared to $266,000 for the quarter ended June 30, 2022. For the six months ended June 30, 2023, noninterest income was $662,000 compared to $530,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $3,085,000 for the quarter ended June 30, 2023 compared to $2,426,000 for the same period last year. For the six months ended June 30, 2023, non-interest expense was $6,108,000 compared to $4,669,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income, at June 30, 2023 were $447.3 million compared to $399.2 million at June 30, 2022.
Total deposits were $569.3 million at June 30, 2023 compared to total deposits of $539.6 million at June 30, 2022.
Credit Quality
The allowance for credit losses on loans was $5,617,000 , or 1.26% of loans, net of unearned income, at June 30, 2023, compared to $5,132,000 , or 1.29% of loans, net of unearned income, at June 30, 2022. Nonperforming assets totaled $233,000 at June 30, 2023. There were no nonperforming assets at June 30, 2022.
Capital
At June 30, 2023, shareholders’ equity totaled $38.3 million compared to $31.7 million at June 30, 2022. At June 30, 2023, the Company's book value per common share was $25.89 compared to $21.51 at June 30, 2022.
At June 30, 2023, the Bank’s estimated total risk-based capital ratio was 12.89% and its tier 1 capital to risk weighted assets ratio was 11.77% . 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)
06/30/23
03/31/23
12/31/22
09/30/22
06/30/22
ASSETS
Cash and due from banks
$
8,482
$
7,365
$
5,628
$
6,011
$
5,230
Federal funds sold
-
124
123
122
121
Interest-bearing deposits
34,076
44,706
25,212
57,618
48,277
Investment securities
93,889
95,139
94,435
95,511
102,692
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
447,339
431,475
420,415
400,480
399,156
Allowance for loan losses
(5,617
)
(5,397
)
(5,159
)
(5,172
)
(5,132
)
Loans, net
441,722
426,079
415,256
395,308
394,024
Premises and equipment, net
14,492
14,492
14,601
14,671
14,691
Other assets
29,724
28,906
27,326
21,261
20,588
Total assets
$
622,385
$
616,812
$
582,581
$
590,502
$
585,623
LIABILITIES
Deposits:
Demand noninterest-bearing
$
109,775
$
125,008
$
126,946
$
129,236
$
130,249
Demand interest-bearing
179,508
165,203
136,655
138,630
131,623
Money market and savings
177,976
180,996
182,787
201,316
201,106
Time deposits
101,991
94,542
88,430
76,121
76,576
Total deposits
569,250
565,749
534,818
545,303
539,554
Borrowings and other obligations
-
-
-
-
-
Subordinated debentures
11,756
11,750
11,744
11,738
11,732
Interest payable and other liabilities
3,070
2,954
2,755
2,892
2,631
Total liabilities
584,076
580,452
549,317
559,933
553,917
SHAREHOLDERS' EQUITY
Common stock
15,140
15,113
15,075
14,964
15,079
Retained Earnings
33,827
31,963
30,294
28,368
26,432
Accumulated other comprehensive income (loss)
(10,658
)
(10,716
)
(12,105
)
(12,763
)
(9,805
)
Total shareholders' equity
38,309
36,360
33,264
30,569
31,706
Total liabilities and shareholders' equity
$
622,385
$
616,812
$
582,581
$
590,502
$
585,623
Total equity / total assets
6.16
%
5.89
%
5.71
%
5.18
%
5.41
%
Book value per share
$
25.89
$
24.57
$
22.48
$
20.81
$
21.51
Shares outstanding
1,479,862
1,479,862
1,479,862
1,469,091
1,474,091
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
Six months ended
06/30/23
03/31/23
06/30/22
06/30/23
06/30/22
INTEREST INCOME
Loans
$
5,955
$
5,551
$
4,485
$
11,506
$
8,833
Federal funds sold
2
1
-
3
-
Investment securities
734
724
464
1,458
835
Other
667
467
146
1,134
204
Total interest income
7,358
6,744
5,095
14,101
9,872
INTEREST EXPENSE
Deposits:
Interest-bearing demand
209
247
64
456
110
Money market and savings
675
579
147
1,254
264
Time deposits
784
589
131
1,373
238
Other
149
149
148
298
305
Total interest expense
1,817
1,564
490
3,381
917
Net interest income
5,541
5,180
4,605
10,720
8,955
Provision for credit losses
220
110
55
330
73
Net interest income after provision
for credit losses
5,321
5,070
4,550
10,390
8,882
NON-INTEREST INCOME
Service charges on deposit accounts
75
62
62
137
133
Gain on sale of loans
-
-
-
-
-
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
-
-
-
Other non-interest income
278
247
204
525
397
Total non-interest income
353
310
266
662
530
OPERATING EXPENSES
Salaries and benefits
1,668
1,649
1,219
3,317
2,365
Premises and fixed assets
266
313
194
579
385
Other
1,151
1,061
1,013
2,212
1,919
Total operating expenses
3,085
3,024
2,426
6,108
4,669
Income before income taxes
2,589
2,355
2,390
4,944
4,743
Income taxes
725
660
684
1,385
1,362
NET INCOME
$
1,864
$
1,695
$
1,706
$
3,559
$
3,381
EARNINGS PER SHARE
Basic earnings per share
$
1.26
$
1.15
$
1.16
$
2.41
$
2.30
Diluted earnings per share
$
1.22
$
1.11
$
1.12
$
2.34
$
2.21
Average common shares outstanding
1,479,862
1,479,862
1,472,168
1,479,862
1,470,721
Average common and equivalent
shares outstanding
1,522,072
1,525,267
1,529,540
1,523,716
1,530,890
PERFORMANCE MEASURES
Return on average assets
1.20
%
1.13
%
1.18
%
1.16
%
1.17
%
Return on average equity
19.71
%
19.20
%
20.33
%
19.47
%
19.23
%
Tax-equivalent net interest margin
3.73
%
3.65
%
3.32
%
3.69
%
3.25
%
Efficiency ratio
52.34
%
55.09
%
49.80
%
53.66
%
49.23
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20230725758292/en/
Matthew B. Moseley
President & CEO
530.222.1460
Patrick E. Phelan
Chief Financial Officer
530.222.1460
Source: Cornerstone Community Bancorp
What were Cornerstone Community Bancorp's net income and diluted earnings per share for Q2 2023?
Cornerstone Community Bancorp reported net income of $1,864,000 and diluted earnings per share of $1.22 for Q2 2023.
How did the return on average assets and return on average equity compare to last year?
The return on average assets for Q2 2023 was 1.20%, an improvement from the same period last year. The return on average equity was 19.71%, also an improvement.
What was the net interest income for Q2 2023?
Net interest income increased to $5,541,000 for Q2 2023.
What was the provision for credit losses on loans for Q2 2023?
The provision for credit losses on loans increased to $220,000 for Q2 2023.
What was the non-interest income for Q2 2023?
Non-interest income was $353,000 for Q2 2023.
What was the non-interest expense for Q2 2023?
Non-interest expense was $3,085,000 for Q2 2023.
What were the total loans and total deposits at June 30, 2023?
Total loans were $447.3 million and total deposits were $569.3 million at June 30, 2023.
What was the shareholders' equity at June 30, 2023?
Shareholders' equity totaled $38.3 million at June 30, 2023.