Cornerstone Community Bancorp Reports Financial Results for the Third Quarter Ended September 30, 2021

Rhea-AI Summary

Cornerstone Community Bancorp (OTC Pink: CRSB) reported record net income of $2,085,000 for Q3 2021, up from $1,236,000 year-over-year. Diluted earnings per share rose to $1.38 from $0.81. The company achieved a return on average assets of 1.53% and a return on average equity of 23.52%. Net interest income climbed to $4,756,000 from $3,376,000, while non-interest income increased to $714,000. Total loans reached $388.5 million, and deposits totaled $500.1 million, reflecting growth from the previous year.

Positive

• Record net income of $2,085,000 for Q3 2021, up 68.8% year-over-year.
• Diluted earnings per share increased to $1.38 from $0.81.
• Net interest income rose to $4,756,000 for the quarter, a 40.8% increase year-over-year.
• Total deposits increased to $500.1 million, a growth of 34.5% compared to the previous year.

Negative

• Provision for credit losses increased to $400,000 for Q3 2021 from zero in the prior year.

RED BLUFF, Calif.--(BUSINESS WIRE)-- Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the third quarter ended September 30, 2021.

The Company reported record net income of $2,085,000 for the three months ended September 30, 2021 compared to net income of $1,236,000 for the same period last year. Diluted earnings per share were $1.38 for the three months ended September 30, 2021 compared to $0.81 for the same period last year.

The return on average assets for the three months ended September 30, 2021 was 1.53% and the return on average equity was 23.52%. The tax-equivalent net interest margin was 3.66% for the three months ended September 30, 2021 compared to 2.99% for the same period last year and the efficiency ratio was 39.07% for the three months ended September 30, 2021 compared to 52.81% for the same period last year.

For the nine months ended September 30, 2021, the Company reported net income of $5,948,000 compared to net income of $2,567,000 for the same period last year. Diluted earnings per share were $3.96 for the nine months ended September 30, 2021 compared to $1.68 for the same period last year.

The return on average assets for the nine months ended September 30, 2021 was 1.48% and the return on average equity was 23.98%.

President and CEO, Jeff Finck stated, “We posted record profits in the third quarter as loan and deposit totals continued to grow at a solid pace.”

Net Interest Income

Net interest income increased to $4,756,000 for the quarter ended September 30, 2021 compared to $3,376,000 for the same quarter last year. For the nine months ended September 30, 2021, net interest income increased to $13,212,000 compared to $9,371,000 for the same period last year.

Provision for credit losses

Provision for credit losses were $400,000 for the quarter ended September 30, 2021 compared to no provision for the same quarter last year. For the nine months ended September 30, 2021, the Company recorded a $900,000 provision for credit losses compared to $1,600,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended September 30, 2021 was $714,000 compared to $296,000 for the quarter ended September 30, 2020. For the nine months ended September 30, 2021, non-interest income was $2,013,000 compared to $894,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,137,000 for the quarter ended September 30, 2021 compared to $1,939,000 for the same period last year. For the nine months ended September 30, 2021, non-interest expense was $5,965,000 compared to $5,247,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income at September 30, 2021 were $388.5 million compared to $342.4 million at September 30, 2020.

Total deposits were $500.1 million at September 30, 2021 compared to total deposits of $371.5 million at September 30, 2020.

Credit Quality

The allowance for loan losses was $4,909,000, or 1.26% of loans, net of unearned income at September 30, 2021, compared to $4,009,000, or 1.17% of loans, net of unearned income at September 30, 2020. There were no nonperforming assets at September 30, 2021 and September 30, 2020.

Capital

At September 30, 2021, shareholders’ equity totaled $35.5 million compared to $28.9 million at September 30, 2020. Book value was $24.37 per share at September 30, 2021 compared to $19.38 per share at September 30, 2020.

About Cornerstone Community Bancorp

Cornerstone Community Bancorp, a bank holding company headquartered in Red Bluff, California, serves the Red Bluff and Redding communities through its wholly-owned subsidiary, Cornerstone Community Bank with a headquarters office in Red Bluff and two banking offices in Redding. 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 Tax Cuts & Jobs Act of 2017 and the Coronavirus Aid, Relief and Economic Security Act of 2021), 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)
	09/30/21			06/30/21			03/31/21			12/31/20			09/30/20
ASSETS
Cash and due from banks	$	4,765		$	5,450		$	5,417		$	3,811		$	5,455
Federal funds sold		2,600			2,256			5,761			14,166			5,045
Interest-bearing deposits		24,636			28,549			68,283			77,045			62,110
Investment securities		110,470			75,258			52,084			50,336			50,699
Loans held for sale		-			-			1,102			-			-
Loans, net of unearned income		388,532			390,748			382,253			332,176			342,416
Allowance for loan losses		(4,909	)		(4,509	)		(4,409	)		(4,009	)		(4,009	)
Loans, net		383,623			386,239			377,844			328,167			338,407
Premises and equipment, net		13,567			13,013			12,767			11,581			10,992
Other assets		14,863			14,972			13,974			12,724			12,577
Total assets	$	554,524		$	525,737		$	537,232		$	497,830		$	485,285
LIABILITIES
Deposits:
Demand noninterest-bearing	$	141,734		$	126,107		$	126,481		$	108,147		$	103,824
Demand interest-bearing		131,964			126,724			122,506			108,097			104,819
Money market and savings		150,149			150,086			163,232			146,655			87,035
Time deposits of less than $100,000		13,180			13,393			15,812			15,418			21,103
Time deposits of $100,000 or more		63,111			56,993			57,299			55,021			54,695
Total deposits		500,138			473,303			485,330			433,338			371,476
Borrowings and other obligations		5,000			5,000			5,000			15,000			78,136
Subordinated debentures		11,715			11,709			11,703			16,645			4,923
Interest payable and other liabilities		2,151			1,933			3,776			2,763			1,854
Total liabilities		519,004			491,945			505,809			467,746			456,389
SHAREHOLDERS' EQUITY
Common stock		14,814			14,771			14,681			14,584			15,462
Retained Earnings		21,084			18,999			17,183			15,136			13,077
Accumulated other comprehensive income (loss)		(378	)		22			(441	)		364			357
Total shareholders' equity		35,520			33,792			31,423			30,084			28,896
Total liabilities and shareholders' equity	$	554,524		$	525,737		$	537,232		$	497,830		$	485,285
Total equity / total assets		6.41	%		6.43	%		5.85	%		6.04	%		5.95	%
Book value per share	$	24.37		$	23.22		$	21.65		$	20.87		$	19.38
Shares outstanding		1,457,591			1,455,091			1,451,091			1,441,241			1,491,041

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
	Three months ended										Nine months ended
	09/30/21			06/30/21			09/30/20				09/30/21			09/30/20
INTEREST INCOME
Loans	$	4,772		$	4,379		$	3,695			$	13,602		$	10,663
Federal funds sold		-			1			1				3			22
Investment securities		360			217			161				739			333
Other		35			53			33				120			123
Total interest income		5,167			4,650			3,890				14,464			11,141
INTEREST EXPENSE
Deposits:
Interest-bearing demand		46			45			51				138			126
Money market and savings		96			93			79				276			384
Time deposits		107			114			198				345			789
Other		162			159			186				493			471
Total interest expense		411			411			514				1,252			1,770
Net interest income		4,756			4,239			3,376				13,212			9,371
Provision for credit losses		400			100			-				900			1,600
Net interest income after provision for credit losses		4,356			4,139			3,376				12,312			7,771
NON-INTEREST INCOME
Service charges on deposit accounts		62			59			49				179			167
Gain on sale of loans		396			135			-				1,231			186
Gain (loss) on sale of other real estate owned		-			-			-				-			-
Gain (loss) on sale of securities		-			-			91				(45	)		91
Other non-interest income		256			228			156				648			450
Total non-interest income		714			422			296				2,013			894
OPERATING EXPENSES
Salaries and benefits		1,048			968			979				2,695			2,310
Premises and fixed assets		212			199			200				590			709
Other		877			848			760				2,680			2,228
Total operating expenses		2,137			2,015			1,939				5,965			5,247
Income before income taxes		2,933			2,546			1,733				8,360			3,418
Income taxes		848			730			497				2,412			851
NET INCOME	$	2,085		$	1,816		$	1,236			$	5,948		$	2,567
EARNINGS PER SHARE
Basic earnings per share	$	1.43		$	1.25		$	0.83			$	4.09		$	1.73
Diluted earnings per share	$	1.38		$	1.20		$	0.81			$	3.96		$	1.68
Average common shares outstanding		1,456,531			1,453,915			1,491,041				1,452,768			1,485,661
Average common and equivalent shares outstanding		1,512,738			1,510,621			1,522,872				1,503,150			1,526,516
PERFORMANCE MEASURES
Return on average assets		1.53	%		1.35	%		1.05	%			1.48	%		0.85	%
Return on average equity		23.52	%		22.17	%		17.36	%			23.98	%		12.49	%
Tax-equivalent net interest margin		3.66	%		3.33	%		2.99	%			3.48	%		3.28	%
Efficiency ratio		39.07	%		43.23	%		52.81	%			39.18	%		51.12	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211019005728/en/

Jeffrey P. Finck

President & CEO

530.222.1460

Patrick E. Phelan

Chief Financial Officer

530.222.1460

Source: Cornerstone Community Bancorp

FAQ

What were Cornerstone Community Bancorp's Q3 2021 earnings results?

Cornerstone Community Bancorp reported a record net income of $2,085,000 for Q3 2021, an increase from $1,236,000 in Q3 2020.

What is the diluted earnings per share for CRSB in Q3 2021?

The diluted earnings per share for Cornerstone Community Bancorp in Q3 2021 were $1.38, compared to $0.81 in the same period last year.

How did CRSB perform in terms of net interest income in Q3 2021?

Cornerstone Community Bancorp's net interest income for Q3 2021 was $4,756,000, up from $3,376,000 in Q3 2020.

What was CRSB's total loan amount as of September 30, 2021?

As of September 30, 2021, Cornerstone Community Bancorp's total loans amounted to $388.5 million.

Has CRSB experienced any nonperforming assets in recent reports?

There were no nonperforming assets reported for Cornerstone Community Bancorp as of September 30, 2021.