Cornerstone Bancorp Earns $3.1 Million for Fourth Quarter, and $10.5 Million for the Year 2022

Rhea-AI Summary

Cornerstone Bancorp (OTC Pink: CNBP) reported a net income of $3.1 million for Q4 2022, equating to $3.12 per diluted share, a 49.1% increase from Q4 2021. For the full year 2022, net income grew 6.7% to $10.5 million, or $10.54 per diluted share. Strong core deposits and a robust net interest margin contributed to the profitability, bolstered by a $49 million rise in the loan portfolio. However, the Mortgage Division faced challenges due to rising rates. Share repurchase program authorized for up to 30,000 shares. Total assets rose 4.0% to $989.1 million.

Positive

• Net income increased by 49.1% in Q4 2022 compared to Q4 2021, reaching $3.1 million.
• Full year net income rose by 6.7% to $10.5 million.
• Loan portfolio increased by $49 million, reflecting strong demand.
• Total assets grew by 4.0% to $989.1 million.
• Tangible shareholders' equity improved by 7.9% to $61.4 million.

Negative

• Mortgage Division activity slowed due to rising interest rates, leading to lower revenues.

PALATINE, Ill., Jan. 25, 2023 /PRNewswire/ -- Cornerstone Bancorp, Inc. (OTC Pink: CNBP), the bank holding company for Cornerstone National Bank & Trust Company (collectively "Cornerstone"), today reported net income of $3.1 million, or $3.12 per diluted share, for the fourth quarter of 2022, compared to $2.1 million, or $2.10 per diluted share, for the fourth quarter of 2021.

For the year ended December 31, 2022, net income increased 6.7% to $10.48 million, or $10.54 per diluted share, compared to $9.83 million, or $9.88 per diluted share, for the year ended December 31, 2021.  Continued strong core deposits and a higher net interest margin as a result of Cornerstone's high level of liquidity contributed to profitability for the year.  All 2022 results are unaudited.

"Cornerstone's performance in 2022 benefited from the short duration of our investment portfolio in a rising rate environment coupled with strong core deposit relationships," stated Jeffrey T. Boundy, President & CEO of Cornerstone National Bank & Trust Company. "We carried a high level of liquidity over the last three years which allowed us to benefit from increasing interest rates through much of 2022."

"Our loan portfolio had another strong year increasing $49 million," Boundy continued.  "We are pleased with the favorable quality, diversification, and performance of our loan portfolio as we navigate through the current inflationary pressures.  We assisted a number of large clients with the sale of their businesses in 2022 resulting in sizeable loan payoffs.  Fortunately, we added many new client relationships to Cornerstone that gave us favorable net growth in loans."

Fourth Quarter and Full Year 2022 Highlights:

• Net income $3.1 million, or $3.12 per diluted share, in the fourth quarter of 2022, compared to $2.1 million, or $2.10 per diluted share, in the fourth quarter of 2021.
• For 2022, net income increased 6.7%, to $10.5 million, or $10.54 per diluted share compared to $9.8 million, or $9.88 per diluted share, in 2021.
• Interest and fees recognized on Paycheck Protection Program (PPP) loans totaled $2,700 in the fourth quarter of 2022 versus $1.2 million a year earlier.
• The activity in the Mortgage Division was slow in 2022 as a result of rising rates. The Bank sold $5.9 million of qualified mortgage loans and realized gross revenue of $71,000 during the fourth quarter of 2022.
• Total assets increased 4.0% to $989.1 million at year-end, compared to $950.7 million a year earlier.
• Tangible shareholders' equity improved 7.9% to $61.4 million at December 31, 2022, compared to $56.9 million a year earlier.
• The loan portfolio, excluding PPP loans, totaled $608.7 million at December 31, 2022, $48.8 million, or 8.7%, higher than a year earlier.
• Total deposits and repurchase agreements increased 4.6% to $899.3 million at December 31, 2022, compared to $860.1 million a year earlier.
• Trust assets decreased 16.5% to $848.7 million at December 31, 2022 from $1.0 billion a year earlier.
• Tangible book value per share increased 7.9% to $61.73 at year-end, compared to $57.20 per diluted share at December 31, 2021.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 8.68% at December 31, 2022 compared to 8.10% at December 31, 2021.

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

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 and association loans for condominium and townhome associations.

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.

FINANCIAL TABLES FOLLOW

 

Financial Highlights (Unaudited)
($ in Thousands, Except Share and Per Share Data)
	For the Quarter Ending				Year To Date
Income Statement	31-Dec-22 (Unaudited)	31-Dec -21	%Change		31-Dec -22 (Unaudited)	31-Dec -21
Net Interest Income	$              9,423	$              7,317	28.8 %		$            31,997	$            29,159
Provision for Loan Losses	-	-	N\A		-	50
Noninterest Income	1,251	1,832	-31.7 %		5,992	7,979
Noninterest Expense	6,288	6,160	2.1 %		23,314	23,314
Provision for Income Taxes	1,279	905	41.3 %		4,193	3,948
Net Income	$              3,107	$              2,084	49.1 %		$            10,482	$              9,826
Ratios
Return on Average Assets *	1.19 %	0.79 %	49.5 %		1.00 %	1.00 %
Return on Average Stockholders' Equity*	18.47 %	14.67 %	25.9 %		16.83 %	18.80 %
Net Interest Margin	3.70 %	2.88 %	28.6 %		3.14 %	3.05 %
Allowance As A % Of Loans Outstanding**	1.34 %	1.44 %	-7.5 %		1.34 %	1.44 %
Dividends Per Share	$                       -	$                      -	N\A		$                      -	$                       -
Earnings Per Share	$                 3.12	$                2.10	48.6 %		$              10.54	$                9.88
	End of Period				End of Period
Balance Sheet Data	31-Dec -22	31-Dec -21	%Change		31-Dec-20	31-Dec-19
Total Assets	$          989,110	$          950,731	4.0 %		$          891,183	$          633,145
Loans, Net of Allowance for Loan Loss	$          600,999	$          583,423	3.0 %		$          587,906	$          463,814
Deposits and Repurchase Agreements	$          899,327	$          860,067	4.6 %		$          808,124	$          572,617
Trust Preferred Securities	$            10,310	$            10,310	0.0 %		$            10,310	$            10,310
Other Borrowings	$            12,763	$            17,763	-28.1 %		$            19,755	$              8,500
Tangible Stockholders' Equity	$            61,364	$            56,865	7.9 %		$            47,442	$            38,005
Trust Assets	$          848,711	$       1,016,393	-16.5 %		$          811,885	$          783,631
Stock Value Per Common Share Data
Price-To-Earnings Ratio	6.10	6.47	-5.8 %		7.12	9.67
Price-To-Tangible Book Value Ratio	1.04	1.12	-6.9 %		1.26	1.68
Tangible Book Value Per Share	$              61.73	$              57.20	7.9 %		$              47.72	$              38.23
Number of Shares Outstanding	994,088	994,088			994,088	994,088
Average Number of Shares Outstanding	994,088	994,088			994,088	923,436
Stock Price - High	$              64.30	$              64.00			$              65.00	$              78.00
Low	$              63.10	$              60.00			$              52.51	$              53.00
Ending	$              64.30	$              64.00			$              60.00	$              64.10

 

View original content:https://www.prnewswire.com/news-releases/cornerstone-bancorp-earns-3-1-million-for-fourth-quarter-and-10-5-million-for-the-year-2022--301730737.html

SOURCE Cornerstone Bancorp, Inc.

FAQ

What were Cornerstone Bancorp's earnings for Q4 2022?

Cornerstone Bancorp reported earnings of $3.1 million for Q4 2022, or $3.12 per diluted share.

How much did Cornerstone Bancorp's net income increase in 2022?

Net income for Cornerstone Bancorp increased by 6.7% in 2022, totaling $10.5 million.

What was the growth of Cornerstone Bancorp's loan portfolio in 2022?

The loan portfolio increased by $49 million in 2022.

Did Cornerstone Bancorp authorize a share repurchase program?

Yes, Cornerstone Bancorp's Board of Directors authorized a share repurchase program for up to 30,000 shares.

By how much did Cornerstone Bancorp's total assets grow in 2022?

Total assets increased by 4.0% to $989.1 million at the end of 2022.