Cornerstone Bancorp Declares Dividend and Announces Share Repurchase Program

Rhea-AI Summary

Cornerstone Bancorp (OTC Pink: CNBP) has announced two significant shareholder returns initiatives. First, the Board of Directors declared a special dividend of $2.50 per share, payable February 5, 2025, to shareholders of record as of January 31, 2025. This dividend represents 25% of unaudited 2024 earnings.

Additionally, the company announced a share repurchase program authorizing the buyback of up to 30,000 shares of common stock during 2025. The repurchase program will be executed through open market purchases or private transactions, with timing and volume based on market conditions and other factors. The program has no expiration date and can be modified or suspended at any time.

Positive

• Special dividend of $2.50 per share announced
• Share repurchase program of up to 30,000 shares authorized
• Dividend represents 25% of 2024 earnings, indicating strong profitability

Negative

• None.

PALATINE, Ill., Jan. 13, 2025 /PRNewswire/ -- Cornerstone Bancorp, Inc. (OTC Pink: CNBP), the bank holding company for Cornerstone National Bank & Trust Company (collectively "Cornerstone"), is announcing that its Board of Directors declared a special dividend of $2.50 per share to shareholders of record as of January 31, 2025, payable February 5, 2025.

"The special dividend was declared after considering the Bank's capital requirements and the current banking environment. The dividend represents a 25% payout of unaudited 2024 earnings," stated Gerald F. Fitzgerald, Jr., Chairman of Cornerstone Bancorp, Inc.

Cornerstone is also announcing today that its Board of Directors has authorized a share repurchase program up to 30,000 shares of the Company's issued and outstanding common stock during 2025.

The Company may purchase shares on a discretionary basis from time to time through open market purchases, privately negotiated transactions or other means, including through Rule 10b5-1 trading plans. The timing and amount of the repurchase transactions will be subject to the discretion of the Company based upon market conditions and other opportunities that the Company may have for the use or investment of its cash balances or the terms of any 10b5-1 trading plan. The repurchase program has no expiration date, does not require the purchase of any minimum number of shares and may be suspended, modified or discontinued at any time without prior notice. The number of shares to be purchased and the timing of purchases will be based on the Company's trading windows and available liquidity, general business and market conditions, and other factors, including legal requirements and alternative investment opportunities.

About Cornerstone Bancorp, Inc.
Founded in 2000, Cornerstone Bancorp, Inc., and its wholly-owned subsidiary, Cornerstone National Bank & Trust Company (collectively "Cornerstone") is committed to serving the commercial banking and investment needs of families and family-owned businesses. Cornerstone serves its clients by investing heavily in people and technology, providing an uncommon relationship experience. Cornerstone has been successful in attracting new clients and talent as the Chicago market consolidates and large banks deemphasize relationships in favor of an institutional approach.

Cornerstone is a leader in commercial lending services including equipment, real estate and construction loans and operating lines of credit as well as business treasury management services.

For individuals and families, wealth management services are offered, including investment management, trust and custody services, retirement plans, and estate and guardianship administration.

Headquartered in Palatine, Illinois, Cornerstone maintains offices in Crystal Lake, Deer Park, Naperville and Schaumburg. Visit us on the web at www.cnbtc.bank.

Forward Looking Statement
This release may contain "forward-looking statements" that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management's plans and objectives for future operations are forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect," and "intend" and words or phrases of similar meaning, as they relate to Cornerstone or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management's expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.

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SOURCE Cornerstone Bancorp, Inc.

FAQ

What is the amount of Cornerstone Bancorp's (CNBP) special dividend for 2025?

Cornerstone Bancorp declared a special dividend of $2.50 per share, payable on February 5, 2025, to shareholders of record as of January 31, 2025.

How many shares are included in CNBP's 2025 share repurchase program?

Cornerstone Bancorp's share repurchase program authorizes the buyback of up to 30,000 shares of common stock during 2025.

What percentage of 2024 earnings does CNBP's special dividend represent?

The special dividend represents 25% of Cornerstone Bancorp's unaudited 2024 earnings.

When will CNBP's special dividend be paid to shareholders?

The special dividend will be paid on February 5, 2025, to shareholders of record as of January 31, 2025.

Does CNBP's share repurchase program have an expiration date?

No, the share repurchase program has no expiration date and can be suspended, modified, or discontinued at any time without prior notice.