Cornerstone Community Bancorp Reports Financial Results for the First Quarter Ended March 31, 2022
04/21/2022 - 01:38 PM
RED BLUFF, Calif. --(BUSINESS WIRE)--
Cornerstone Community Bancorp (OTC Pink: CRSB ) announced today its financial results for the first quarter ended March 31, 2022 .
The Company reported net income of $1,675,000 for the three months ended March 31, 2022 compared to net income of $2,046,000 for the same period last year. Diluted earnings per share were $1.09 for the three months ended March 31, 2022 compared to $1.38 for the same period last year. First quarter 2022 results were impacted by the decline in PPP (Paycheck Protection Program) fees and related interest income due to loan forgiveness.
The return on average assets for the three months ended March 31, 2022 was 1.15% and the return on average equity was 18.22% . The tax-equivalent net interest margin was 3.17% for the three months ended March 31, 2022 compared to 3.43% for the same period last year and the efficiency ratio was 48.61% for the three months ended March 31, 2022 compared to 35.61% for the same period last year.
President and CEO, Jeff Finck stated, “Even with the decline in PPP income, we were able to generate strong returns on average assets and average equity during the first quarter. Also during the first quarter, we opened our Anderson branch and we look forward to building relationships with the small businesses and individuals in that community in 2022.”
Net Interest Income
Net interest income increased to $4,350,000 for the quarter ended March 31, 2022 compared to $4,217,000 for the same quarter last year.
Provision for credit losses
Provision for credit losses were $18,000 for the quarter ended March 31, 2022 compared to $400,000 for the same quarter last year.
Non-Interest Income
Non-interest income for the quarter ended March 31, 2022 was $264,000 compared to $877,000 for the quarter ended March 31, 2021 .
Non-Interest Expense
Non-interest expense was $2,243,000 for the quarter ended March 31, 2022 compared to $1,814,000 for the same period last year.
Balance Sheet
Total loans, net of unearned income, at March 31, 2022 were $375.4 million compared to $382.3 million at March 31, 2021 .
Total deposits were $532.3 million at March 31, 2022 compared to total deposits of $485.3 million at March 31, 2021 .
Credit Quality
The allowance for loan losses was $5,077,000 , or 1.35% of loans, net of unearned income, at March 31, 2022 , compared to $4,409,000 , or 1.15% of loans, net of unearned income, at March 31, 2021 . There were no nonperforming assets at March 31, 2022 and March 31, 2021 .
Capital
At March 31, 2022 , shareholders’ equity totaled $33.7 million compared to $31.4 million at March 31, 2021 . At March 31, 2022 , the Company's book value per common share was $22.93 compared to $25.31 at December 31, 2021 and $21.65 at March 31, 2021 . During the first quarter of 2022, increasing interest rates resulted in a decline in the fair value of available for sale investment securities. This impact is reflected in the decline in accumulated other comprehensive income (AOCI) to ($5,995,000 ), compared to ($945,000 ) at December 31, 2021 and ($441,000 ) at March 31, 2021 . Excluding AOCI, book value increased to $27.00 at March 31, 2022 , compared to $25.96 at December 31, 2021 and $21.96 at March 31, 2021 .
AOCI has no effect on Cornerstone Community Bank’s (the Bank) regulatory capital ratios as the Bank opted to exclude it from regulatory capital calculations. At March 31, 2022 , the Bank’s total risk-based capital ratio was 13.25% and its tier 1 capital to risk weighted assets ratio was 12.00% . 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)
03/31/22
12/31/21
09/30/21
06/30/21
03/31/21
ASSETS
Cash and due from banks
$
4,175
$
4,552
$
4,765
$
5,450
$
5,417
Federal funds sold
121
121
2,600
2,256
5,761
Interest-bearing deposits
73,629
77,933
24,636
28,549
68,283
Investment securities
99,748
108,253
110,470
75,258
52,084
Loans held for sale
-
-
-
-
1,102
Loans, net of unearned income
375,369
387,374
388,532
390,748
382,253
Allowance for loan losses
(5,077
)
(5,059
)
(4,909
)
(4,509
)
(4,409
)
Loans, net
370,292
382,315
383,623
386,239
377,844
Premises and equipment, net
14,757
14,784
13,567
13,013
12,767
Other assets
16,930
15,622
14,863
14,972
13,974
Total assets
$
579,652
$
603,580
$
554,524
$
525,737
$
537,232
LIABILITIES
Deposits:
Demand noninterest-bearing
$
131,136
$
174,282
$
141,734
$
126,107
$
126,481
Demand interest-bearing
126,331
131,368
131,964
126,724
122,506
Money market and savings
196,653
163,946
150,149
150,086
163,232
Time deposits
78,167
78,111
76,291
70,386
73,111
Total deposits
532,287
547,707
500,138
473,303
485,330
Borrowings and other obligations
-
5,000
5,000
5,000
5,000
Subordinated debentures
11,726
11,720
11,715
11,709
11,703
Interest payable and other liabilities
1,899
2,134
2,151
1,933
3,776
Total liabilities
545,912
566,561
519,004
491,945
505,809
SHAREHOLDERS' EQUITY
Common stock
15,009
14,913
14,814
14,771
14,681
Retained Earnings
24,726
23,051
21,084
18,999
17,183
Accumulated other comprehensive income (loss)
(5,995
)
(945
)
(378
)
22
(441
)
Total shareholders' equity
33,740
37,019
35,520
33,792
31,423
Total liabilities and shareholders' equity
$
579,652
$
603,580
$
554,524
$
525,737
$
537,232
Total equity / total assets
5.82
%
6.13
%
6.41
%
6.43
%
5.85
%
Book value per share
$
22.93
$
25.31
$
24.37
$
23.22
$
21.65
Shares outstanding
1,471,591
1,462,591
1,457,591
1,455,091
1,451,091
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended
03/31/22
12/31/21
03/31/21
INTEREST INCOME
Loans
$
4,348
$
4,759
$
4,451
Federal funds sold
-
1
2
Investment securities
371
385
162
Other
58
60
32
Total interest income
4,777
5,205
4,647
INTEREST EXPENSE
Deposits:
Interest-bearing demand
46
49
47
Money market and savings
117
109
87
Time deposits
107
107
124
Other
157
159
172
Total interest expense
427
424
430
Net interest income
4,350
4,781
4,217
Provision for credit losses
18
150
400
Net interest income after provision for credit losses
4,332
4,631
3,817
NON-INTEREST INCOME
Service charges on deposit accounts
71
65
58
Gain on sale of loans
-
-
700
Gain (loss) on sale of other real estate owned
-
-
-
Gain (loss) on sale of securities
-
-
(45
)
Other non-interest income
193
274
164
Total non-interest income
264
339
877
OPERATING EXPENSES
Salaries and benefits
1,146
1,175
679
Premises and fixed assets
191
166
179
Other
906
868
956
Total operating expenses
2,243
2,209
1,814
Income before income taxes
2,353
2,761
2,880
Income taxes
678
794
834
NET INCOME
$
1,675
$
1,967
$
2,046
EARNINGS PER SHARE
Basic earnings per share
$
1.14
$
1.35
$
1.41
Diluted earnings per share
$
1.09
$
1.29
$
1.38
Average common shares outstanding
1,469,258
1,459,667
1,447,763
Average common and equivalent shares outstanding
1,532,163
1,518,908
1,485,953
PERFORMANCE MEASURES
Return on average assets
1.15
%
1.41
%
1.56
%
Return on average equity
18.22
%
21.63
%
26.41
%
Tax-equivalent net interest margin
3.17
%
3.59
%
3.43
%
Efficiency ratio
48.61
%
43.14
%
35.61
%
View source version on businesswire.com : https://www.businesswire.com/news/home/20220421005996/en/
Jeffrey P. Finck
President & CEO
530.222.1460
Patrick E. Phelan
Chief Financial Officer
530.222.1460
Source: Cornerstone Community Bancorp