CORNERSTONE BANCORP, INC. QUARTERLY REPORT - JUNE 30, 2024
Cornerstone Bancorp (CNBP) reported its Q2 2024 results, showing mixed performance. Consolidated net income decreased to $2.0 million ($2.05 per diluted share) from $2.7 million ($2.74 per diluted share) in Q2 2023. The net interest margin declined to 3.27% from 3.54% year-over-year. However, total consolidated assets grew 1.5% to $986.0 million, and tangible shareholders' equity improved 10.8% to $74.1 million.
The loan portfolio increased by 2.0% to $640.2 million, while total deposits and repurchase agreements rose 0.6% to $885.6 million. The securities portfolio significantly expanded to $181.1 million from $118.2 million, including $79.9 million in one-month US Treasury bills. Trust and wealth management assets grew to $975.9 million from $896.5 million a year earlier. The Bank maintains a strong capital position with a Tier 1 Leverage Capital Ratio of 9.75%.
- Total consolidated assets increased 1.5% to $986.0 million
- Tangible shareholders' equity improved 10.8% to $74.1 million
- Loan portfolio grew 2.0% to $640.2 million
- Securities portfolio expanded significantly to $181.1 million from $118.2 million
- Trust and wealth management assets increased to $975.9 million from $896.5 million
- Bank maintains a strong Tier 1 Leverage Capital Ratio of 9.75%
- Consolidated net income decreased to $2.0 million from $2.7 million year-over-year
- Net interest margin declined to 3.27% from 3.54% year-over-year
- Interest earned on Federal Reserve deposit account decreased to $1.5 million from $2.5 million
- Noninterest expense increased to $6.4 million from $6.0 million year-over-year
CORNERSTONE BANCORP, INC.
SECOND QUARTER 2024 HIGHLIGHTS (At or for period ended 6/30/2024)
Income Statement Highlights
- Consolidated net income was
in 2Q24, or$2.0 million per diluted share, compared to$2.05 in 2Q23, or$2.7 million per diluted share.$2.74 - The net interest margin (NIM) was
3.27% for 2Q24, compared to3.54% for 2Q23. - Interest earned on the Bank's interest-bearing deposit account at the Federal Reserve Bank was
for 2Q24 compared to$1.5 million for 2Q23.$2.5 million - Interest earned on US Treasury securities was
for 2Q24 compared to$1.5 million for 2Q23. This interest is exempt from$157,000 Illinois income taxes. - Noninterest expense was
in 2Q24 compared to$6.4 million in 2Q23.$6.0 million
Balance Sheet Highlights
- Total consolidated assets increased
1.5% to on June 30, 2024, compared to$986.0 million a year earlier.$971.9 million - Tangible shareholders' equity improved
10.8% to on June 30, 2024, compared to$74.1 million a year earlier.$66.9 million - Interest-bearing deposits at correspondent banks totaled
on June 30, 2024 ($142.8 million 14.4% of total assets) compared to a year earlier ($205.1 million 21.1% of total assets). - The securities portfolio totaled
on June 30, 2024, compared to$181.1 million a year earlier. The current portfolio includes$118.2 million of one-month US Treasury bills that were added during 2Q24. The weighted average remaining life approximates 1.6 years.$79.9 million - The loan portfolio totaled
on June 30, 2024,$640.2 million , or$12.7 million 2.0% , higher than a year earlier. - Total deposits and repurchase agreements increased
0.6% to on June 30, 2024, compared to$885.6 million a year earlier.$879.9 million - The Corporation's other borrowings were
on June 30, 2024, unchanged from a year earlier.$7.8 million - The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of
9.75% on June 30, 2024.
Trust and Wealth Management
- Trust and wealth management assets totaled
on June 30, 2024, compared to$975.9 million a year earlier.$896.5 million
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
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
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 Highlights (Unaudited) | ||||||
($ in Thousands, Except Share and Per Share Data) | ||||||
For the Quarter Ending | Year To Date | |||||
Income Statement | 30-Jun-24 | 30-Jun-23 | % Change | 30-Jun-24 | 30-Jun-23 | |
Net Interest Income | $ 7,918 | $ 8,520 | -7.1 % | $ 16,110 | $ 17,171 | |
Provision for Loan Losses | 150 | 29 | 417.2 % | 300 | 29 | |
Noninterest Income | 1,285 | 1,311 | -2.0 % | 2,626 | 2,636 | |
Noninterest Expense | 6,371 | 6,027 | 5.7 % | 12,732 | 11,886 | |
Provision for Income Taxes | 684 | 1,061 | -35.5 % | 1,551 | 2,223 | |
Net Income | $ 1,998 | $ 2,714 | -26.4 % | $ 4,153 | $ 5,669 | |
Ratios | ||||||
Return on Average Assets * | 0.82 % | 1.12 % | -27.0 % | 0.95 % | 1.23 % | |
Return on Average Stockholders' Equity * | 10.29 % | 15.07 % | -31.7 % | 12.05 % | 16.89 % | |
Net Interest Margin | 3.27 % | 3.54 % | -7.7 % | 3.33 % | 3.63 % | |
Allowance for Loan Losses to Gross Loans | 1.32 % | 1.30 % | 1.6 % | 1.32 % | 1.30 % | |
Dividends Per Share | $ - | $ - | N\A | $ 2.50 | $ - | |
Earnings Per Share | $ 2.05 | $ 2.74 | -25.2 % | $ 4.24 | $ 5.71 | |
End of Period | End of Period | |||||
Balance Sheet Data | 30-Jun-24 | 30-Jun-23 | % Change | 31-Dec-23 | 31-Dec-22 | |
Total Assets | $ 986,039 | $ 971,922 | 1.5 % | $ 958,795 | $ 989,110 | |
Loans, Net of Allowance for Loan Loss | $ 631,775 | $ 619,384 | 2.0 % | $ 639,509 | $ 600,999 | |
Deposits and Repurchase Agreements | $ 885,599 | $ 879,884 | 0.6 % | $ 861,203 | $ 899,327 | |
Trust Preferred Securities | $ 10,310 | $ 10,310 | 0.0 % | $ 10,310 | $ 10,310 | |
Other Borrowings | $ 7,763 | $ 7,763 | 0.0 % | $ 7,763 | $ 12,763 | |
Tangible Shareholders' Equity | $ 74,096 | $ 66,858 | 10.8 % | $ 73,246 | $ 61,364 | |
Trust and Wealth Management Assets | $ 975,896 | $ 896,475 | 8.9 % | $ 954,480 | $ 848,711 | |
Stock Value Per Common Share Data | ||||||
Price-To-Earnings Ratio * | 8.90 | 6.01 | 48.1 % | 6.31 | 6.10 | |
Price-To-Tangible Book Value Ratio | 0.97 | 0.97 | -0.4 % | 0.93 | 1.04 | |
Tangible Book Value Per Share | $ 75.51 | $ 67.73 | 11.5 % | $ 74.36 | $ 61.73 | |
Number of Shares Outstanding | 981,315 | 987,189 | 985,039 | 994,088 | ||
Average Number of Shares Outstanding | 974,904 | 990,921 | 982,767 | 994,088 | ||
Stock Price - High | $ 73.30 | $ 67.60 | $ 70.00 | $ 64.30 | ||
Low | $ 70.60 | $ 66.00 | $ 66.75 | $ 63.10 | ||
Ending | $ 73.30 | $ 66.00 | $ 69.50 | $ 64.30 |
* - Quarter returns are based on annualized Net Income; Year-To-Date returns are based on the Last Twelve Months' (LTM) Net Income |
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SOURCE Cornerstone Bancorp, Inc.
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