Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2022

Rhea-AI Summary

Cornerstone Community Bancorp (CRSB) reported its fourth-quarter and full-year financial results for 2022, with a net income of $1.93 million for Q4, slightly down from $1.97 million last year. Diluted EPS for Q4 stood at $1.27, down from $1.29. The company's net interest income rose to $5.16 million for Q4, while total loans increased to $420.4 million. However, non-interest income fell sharply to $265,000 in Q4 compared to $339,000 in the previous year. For the full year, net income declined to $7.24 million from $7.92 million in 2021. Despite challenges, the company remains well-capitalized with a total risk-based capital ratio of 12.61%.

Positive

• Net interest income increased to $5,156,000 for Q4, up from $4,781,000.
• Total loans rose to $420.4 million compared to $387.4 million last year.
• The company has no nonperforming assets reported.

Negative

• Net income for Q4 decreased to $1,926,000 from $1,967,000.
• Diluted EPS for Q4 fell to $1.27 from $1.29.
• Non-interest income dropped to $265,000 in Q4 from $339,000.
• Annual net income decreased to $7,243,000 from $7,915,000.
• Total deposits fell to $534.8 million from $547.7 million.

RED BLUFF, Calif.--(BUSINESS WIRE)-- Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter and full year ended December 31, 2022.

The Company reported net income of $1,926,000 for the three months ended December 31, 2022 compared to net income of $1,967,000 for the same period last year. Diluted earnings per share were $1.27 for the three months ended December 31, 2022 compared to $1.29 for the same period last year.

The return on average assets for the three months ended December 31, 2022 was 1.32% and the return on average equity was 24.23%. The tax-equivalent net interest margin was 3.61% for the three months ended December 31, 2022 compared to 3.59% for the same period last year and the efficiency ratio was 50.73% for the three months ended December 31, 2022 compared to 43.14% for the same period last year.

For the year ended December 31, 2022, the Company reported net income of $7,243,000 compared to net income of $7,915,000 for the same period last year. Diluted earnings per share were $4.74 for the year ended December 31, 2022 compared to $5.25 for the same period last year.

The return on average assets for the year ended December 31, 2022 was 1.24% and the return on average equity was 21.36%.

President and CEO, Matt Moseley stated, “We are pleased with our 2022 operating results. We are excited to begin the new year with the team and infrastructure we put in place in 2022.”

Net Interest Income

Net interest income increased to $5,156,000 for the quarter ended December 31, 2022 compared to $4,781,000 for the same quarter last year. For the year ended December 31, 2022, net interest income increased to $19,307,000 compared to $17,993,000 for the same period last year.

Provision for credit losses

There was no provision for credit losses recorded for the quarter ended December 31, 2022 compared to $150,000 for the same quarter last year. For the year ended December 31, 2022, the Company recorded a $113,000 provision for credit losses compared to $1,050,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2022 was $265,000 compared to $339,000 for the quarter ended December 31, 2021. For the year ended December 31, 2022, non-interest income was $1,060,000 compared to $2,245,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,750,000 for the quarter ended December 31, 2022 compared to $2,209,000 for the same period last year. For the year ended December 31, 2022, non-interest expense was $10,118,000 compared to $8,067,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income, at December 31, 2022 were $420.4 million compared to $387.4 million at December 31, 2021.

Total deposits were $534.8 million at December 31, 2022 compared to total deposits of $547.7 million at December 31, 2021.

Credit Quality

The allowance for loan losses was $5,159,000, or 1.23% of loans, net of unearned income, at December 31, 2022, compared to $5,059,000, or 1.31% of loans, net of unearned income, at December 31, 2021. There were no nonperforming assets at December 31, 2022 and December 31, 2021.

Capital

At December 31, 2022, shareholders’ equity totaled $33.3 million compared to $37.0 million at December 31, 2021. At December 31, 2022, the Company's book value per common share was $22.48 compared to $25.31 at December 31, 2021. During the year ended December 31, 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 $(12,105,000) at December 31, 2022, compared to $(945,000) at December 31, 2021. Excluding AOCI, book value increased to $30.66 at December 31, 2022, compared to $25.96 at December 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 December 31, 2022, the Bank’s estimated total risk-based capital ratio was 12.61% and its tier 1 capital to risk weighted assets ratio was 11.52%. 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)
		12/31/22				09/30/22				06/30/22				03/31/22				12/31/21
ASSETS
Cash and due from banks		$	5,628			$	6,011			$	5,230			$	4,175			$	4,552
Federal funds sold			123				122				121				121				121
Interest-bearing deposits			25,212				57,618				48,277				73,629				77,933
Investment securities			94,435				95,511				102,692				99,748				108,253
Loans held for sale			-				-				-				-				-
Loans, net of unearned income			420,415				400,480				399,156				375,369				387,374
Allowance for loan losses			(5,159	)			(5,172	)			(5,132	)			(5,077	)			(5,059	)
Loans, net			415,256				395,308				394,024				370,292				382,315
Premises and equipment, net			14,601				14,671				14,691				14,757				14,784
Other assets			27,326				21,261				20,588				16,930				15,622
Total assets		$	582,581			$	590,502			$	585,623			$	579,652			$	603,580
LIABILITIES
Deposits:
Demand noninterest-bearing		$	126,946			$	129,236			$	130,249			$	131,136			$	174,282
Demand interest-bearing			136,655				138,630				131,623				126,331				131,368
Money market and savings			182,787				201,316				201,106				196,653				163,946
Time deposits			88,430				76,121				76,576				78,167				78,111
Total deposits			534,818				545,303				539,554				532,287				547,707
Borrowings and other obligations			-				-				-				-				5,000
Subordinated debentures			11,744				11,738				11,732				11,726				11,720
Interest payable and other liabilities			2,755				2,892				2,631				1,899				2,134
Total liabilities			549,317				559,933				553,917				545,912				566,561
SHAREHOLDERS' EQUITY
Common stock			15,075				14,964				15,079				15,009				14,913
Retained Earnings			30,294				28,368				26,432				24,726				23,051
Accumulated other comprehensive income (loss)			(12,105	)			(12,763	)			(9,805	)			(5,995	)			(945	)
Total shareholders' equity			33,264				30,569				31,706				33,740				37,019
Total liabilities and shareholders' equity		$	582,581			$	590,502			$	585,623			$	579,652			$	603,580
Total equity / total assets			5.71	%			5.18	%			5.41	%			5.82	%			6.13	%
Book value per share		$	22.48			$	20.81			$	21.51			$	22.93			$	25.31
Shares outstanding			1,479,862				1,469,091				1,474,091				1,471,591				1,462,591

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
		Three months ended												Year ended
		12/31/22				09/30/22				12/31/21				12/31/22				12/31/21
INTEREST INCOME
Loans		$	5,178			$	5,018			$	4,759			$	19,029			$	18,361
Federal funds sold			1				1				1				2				4
Investment securities			676				543				385				2,054				1,124
Other			515				354				60				1,073				180
Total interest income			6,370				5,916				5,205				22,158				19,669
INTEREST EXPENSE
Deposits:
Interest-bearing demand			214				130				49				454				187
Money market and savings			450				260				109				974				385
Time deposits			401				182				107				821				452
Other			149				148				159				602				652
Total interest expense			1,214				720				424				2,851				1,676
Net interest income			5,156				5,196				4,781				19,307				17,993
Provision for credit losses			-				40				150				113				1,050
Net interest income after provision for credit losses			5,156				5,156				4,631				19,194				16,943
NON-INTEREST INCOME
Service charges on deposit accounts			66				67				65				266				244
Gain on sale of loans			-				-				-				-				1,231
Gain (loss) on sale of other real estate owned			-				-				-				-				-
Gain (loss) on sale of securities			-				-				-				-				(45	)
Other non-interest income			199				198				274				794				815
Total non-interest income			265				265				339				1,060				2,245
OPERATING EXPENSES
Salaries and benefits			1,567				1,408				1,175				5,340				3,870
Premises and fixed assets			242				227				166				854				649
Other			941				1,064				868				3,924				3,548
Total operating expenses			2,750				2,699				2,209				10,118				8,067
Income before income taxes			2,671				2,722				2,761				10,136				11,121
Income taxes			745				786				794				2,893				3,206
NET INCOME		$	1,926			$	1,936			$	1,967			$	7,243			$	7,915
EARNINGS PER SHARE
Basic earnings per share		$	1.31			$	1.31			$	1.35			$	4.92			$	5.44
Diluted earnings per share		$	1.27			$	1.27			$	1.29			$	4.74			$	5.25
Average common shares outstanding			1,474,754				1,473,276				1,459,667				1,472,381				1,454,507
Average common and equivalent shares outstanding			1,520,935				1,523,830				1,518,908				1,526,734				1,507,561
PERFORMANCE MEASURES
Return on average assets			1.32	%			1.30	%			1.41	%			1.24	%			1.46	%
Return on average equity			24.23	%			23.11	%			21.63	%			21.36	%			23.35	%
Tax-equivalent net interest margin			3.61	%			3.60	%			3.59	%			3.43	%			3.50	%
Efficiency ratio			50.73	%			49.42	%			43.14	%			49.68	%			39.86	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230124006133/en/

Matthew B. Moseley

President & CEO

530.222.1460

Patrick E. Phelan

Chief Financial Officer

530.222.1460

Source: Cornerstone Community Bancorp

FAQ

What were the earnings results for Cornerstone Community Bancorp (CRSB) in Q4 2022?

Cornerstone Community Bancorp reported a net income of $1.93 million in Q4 2022, a slight decrease from $1.97 million in Q4 2021.

How did the diluted earnings per share (EPS) change for CRSB in Q4 2022?

The diluted EPS for Cornerstone Community Bancorp in Q4 2022 was $1.27, down from $1.29 in the same quarter last year.

What is the net interest income for CRSB for the full year 2022?

Cornerstone Community Bancorp reported net interest income of $19.31 million for the full year ended December 31, 2022.

Did CRSB report any nonperforming assets at the end of 2022?

No, Cornerstone Community Bancorp reported no nonperforming assets at December 31, 2022.

What is the total risk-based capital ratio for CRSB as of December 31, 2022?

The estimated total risk-based capital ratio for Cornerstone Community Bancorp was 12.61% as of December 31, 2022.