Cornerstone Community Bancorp Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024

Rhea-AI Summary

Cornerstone Community Bancorp (CRSB) reported mixed financial results for Q4 and full year 2024. The company posted Q4 net income of $1.809 million ($1.18 per diluted share), down from $1.892 million ($1.24 per share) in Q4 2023. For full-year 2024, CRSB reported a net loss of $785,000 ($(0.51) per share), compared to net income of $7.371 million ($4.84 per share) in 2023.

The annual loss was primarily attributed to a $9.4 million charge-off of three related agricultural loans in Q3 2024. Net interest income decreased to $5.17 million in Q4 2024 from $5.439 million year-over-year. Total loans increased to $498.9 million, while deposits grew to $584.3 million. The company announced a definitive merger agreement with Plumas Bancorp.

Positive

• Strong Q4 performance with $1.8M net income and 17.28% return on equity
• Total loans increased to $498.9M from $482.2M year-over-year
• Total deposits grew to $584.3M from $564.5M year-over-year
• Strategic merger agreement signed with Plumas Bancorp

Negative

• Full-year 2024 net loss of $785,000 versus $7.371M profit in 2023
• $9.4M charge-off from three agricultural loans in Q3 2024
• Net interest margin declined to 3.23% from 3.55% year-over-year
• Nonperforming assets increased to $409,000 from zero in 2023
• Book value per share decreased to $28.37 from $29.16 year-over-year

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, 2024.

The Company reported net income of $1,809,000 for the three months ended December 31, 2024 compared to net income of $1,892,000 for the same period last year. Diluted earnings per share were $1.18 for the three months ended December 31, 2024 compared to diluted earnings per share of $1.24 for the same period last year.

For the year ended December 31, 2024, the Company reported a net loss of $785,000 compared to net income of $7,371,000 for the same period last year. Diluted loss per share was $(0.51) for the year ended December 31, 2024 compared to earnings per share of $4.84 for the same period last year. The net loss for the year was primarily due to the charge-off of three related agricultural loans in the aggregate amount of $9.4 million during the third quarter of 2024.

President and CEO, Matt Moseley stated, “We reported a strong fourth quarter with $1.8 million in net income, a 1.08% return on average assets and a 17.28% return on average equity. This morning, Plumas Bancorp and Cornerstone Community Bancorp jointly announced the signing of a definitive merger agreement. We are excited about the opportunity to join forces with Plumas, bringing our banks together to carry on our focus of providing our customers, employees and all of our stakeholders with superior products, services and support.”

Net Interest Income

Net interest income decreased to $5,170,000 for the quarter ended December 31, 2024 compared to $5,439,000 for the same quarter last year. For the year ended December 31, 2024, net interest income decreased to $19,582,000 compared to $21,805,000 for the same period last year.

The tax-equivalent net interest margin was 3.23% for the quarter ended December 31, 2024 compared to 3.55% for the same quarter of last year. For the year ended December 31, 2024, the tax-equivalent net interest margin was 3.09% compared to 3.65% for the same period last year.

Provision for credit losses on loans

No provision for credit losses on loans was recorded during the three months ended December 31, 2024 and December 31, 2023. For the year ended December 31, 2024, the Company recorded a $9.7 million provision for credit losses on loans compared to $530,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2024 was $374,000 compared to $358,000 for the quarter ended December 31, 2023. For the year ended December 31, 2024, noninterest income was $1,451,000 compared to $1,389,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $3,227,000 for the quarter ended December 31, 2024 compared to $3,173,000 for the same period last year. For the year ended December 31, 2024, non-interest expense was $12,824,000 compared to $12,449,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income, at December 31, 2024 were $498.9 million compared to $482.2 million at December 31, 2023.

Total deposits were $584.3 million at December 31, 2024 compared to total deposits of $564.5 million at December 31, 2023.

Credit Quality

The allowance for credit losses on loans was $6,164,000, or 1.24% of loans, net of unearned income, at December 31, 2024, compared to $5,813,000, or 1.21% of loans, net of unearned income, at December 31, 2023. Nonperforming assets were $409,000 at December 31, 2024. There were no nonperforming assets at December 31, 2023.

Capital

At December 31, 2024, shareholders’ equity totaled $42.6 million compared to $43.2 million at December 31, 2023. At December 31, 2024, the Company's book value per common share was $28.37 compared to $29.16 at December 31, 2023.

At December 31, 2024, the Bank’s estimated total risk-based capital ratio was 12.38% and its tier 1 capital to risk weighted assets ratio was 11.25%. 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 2023), 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)
		12/31/24				09/30/24				06/30/24				03/31/24				12/31/23
ASSETS
Cash and due from banks		$	4,837			$	9,127			$	7,571			$	6,389			$	8,623
Federal funds sold			-				-				-				-				-
Interest bearing deposits in other financial institutions			25,078				40,306				43,025				45,955				19,694
Available for sale debt securities, at fair value			87,492				90,616				89,089				90,767				93,065
Loans held for sale			-				-				-				-				-
Loans, net of unearned income			498,863				487,125				498,048				488,179				482,212
Allowance for credit losses on loans			(6,164	)			(6,164	)			(6,126	)			(5,957	)			(5,813	)
Loans, net			492,699				480,962				491,922				482,222				476,399
Premises and equipment, net			14,137				14,405				14,418				14,433				14,326
Other assets			33,683				33,780				32,514				30,812				30,827
Total assets		$	657,925			$	669,197			$	678,537			$	670,578			$	642,934
LIABILITIES
Deposits:
Demand noninterest-bearing		$	89,525			$	91,936			$	102,419			$	99,278			$	101,396
Demand interest-bearing			158,649				166,505				167,720				159,542				166,221
Money market and savings			186,642				186,186				176,644				182,797				174,882
Time deposits			149,452				144,443				148,582				148,384				122,035
Total deposits			584,269				589,069				595,365				590,001				564,534
Borrowings and other obligations			15,000				20,000				20,000				20,000				20,000
Subordinated debentures			11,795				11,788				11,781				11,775				11,769
Interest payable and other liabilities			4,275				7,409				5,637				4,252				3,464
Total liabilities			615,339				628,266				632,784				626,028				599,767
SHAREHOLDERS' EQUITY
Common stock			15,442				15,337				15,268				15,231				15,163
Retained Earnings			36,854				35,045				40,476				39,033				37,639
Accumulated other comprehensive income (loss)			(9,709	)			(9,452	)			(9,991	)			(9,714	)			(9,635	)
Total shareholders' equity			42,586				40,930				45,754				44,550				43,167
Total liabilities and shareholders' equity		$	657,925			$	669,197			$	678,537			$	670,578			$	642,934
Total equity / total assets			6.47	%			6.12	%			6.74	%			6.64	%			6.71	%
Book value per share		$	28.37			$	27.44			$	30.78			$	29.99			$	29.16
Shares outstanding			1,501,091				1,491,692				1,486,692				1,485,472				1,480,472

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
		Three months ended												Year ended
		12/31/24				09/30/24				12/31/23				12/31/24				12/31/23
INTEREST INCOME
Loans		$	7,292			$	6,795			$	6,862			$	28,456			$	24,885
Federal funds sold			-				-				-				-				3
Investment securities			664				819				751				3,003				2,948
Other			661				650				426				2,341				2,118
Total interest income			8,617				8,264				8,039				33,800				29,954
INTEREST EXPENSE
Deposits:
Interest-bearing demand			329				378				291				1,339				1,036
Money market and savings			1,196				1,268				904				4,827				2,956
Time deposits			1,617				1,806				1,245				6,577				3,551
Other			305				392				160				1,475				606
Total interest expense			3,447				3,844				2,600				14,218				8,149
Net interest income			5,170				4,420				5,439				19,582				21,805
Provision for credit losses on loans			-				9,400				-				9,713				530
Net interest income after provision for credit losses			5,170				(4,980	)			5,439				9,869				21,275
NON-INTEREST INCOME
Service charges on deposit accounts			75				69				70				291				270
Gain on sale of loans			-				-				-				-				-
Gain (loss) on sale of other real estate owned			-				-				-				-				-
Gain (loss) on sale of securities			-				-				-				-				-
Other non-interest income			299				285				288				1,160				1,119
Total non-interest income			374				354				358				1,451				1,389
OPERATING EXPENSES
Salaries and benefits			1,688				1,615				1,865				6,984				6,963
Premises and fixed assets			249				266				263				1,047				1,110
Other			1,290				1,204				1,045				4,793				4,376
Total operating expenses			3,227				3,085				3,173				12,824				12,449
Income (loss) before income taxes			2,317				(7,711	)			2,624				(1,504	)			10,215
Income taxes (benefit)			508				(2,280	)			732				(719	)			2,844
NET (LOSS) INCOME		$	1,809			$	(5,431	)		$	1,892			$	(785	)		$	7,371
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share		$	1.21			$	(3.65	)		$	1.28			$	(0.53	)		$	4.98
Diluted earnings (loss) per share		$	1.18			$	(3.56	)		$	1.24			$	(0.51	)		$	4.84
Average common shares outstanding			1,493,798				1,487,344				1,479,948				1,487,972				1,479,884
Average common and equivalent shares outstanding			1,527,533				1,525,781				1,523,488				1,528,269				1,523,893
PERFORMANCE MEASURES
Return on average assets			1.08	%			-3.24	%			1.19	%			-0.12	%			1.18	%
Return on average equity			17.28	%			-51.59	%			18.94	%			-1.82	%			19.36	%
Tax-equivalent net interest margin			3.23	%			2.75	%			3.55	%			3.09	%			3.65	%
Efficiency ratio			58.21	%			64.62	%			54.74	%			60.97	%			53.67	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129439101/en/

Matthew B. Moseley

President & CEO

530.222.1460



Patrick E. Phelan

Chief Financial Officer

530.222.1460

Source: Cornerstone Community Bancorp

FAQ

What caused CRSB's net loss in 2024?

CRSB's net loss in 2024 was primarily due to a $9.4 million charge-off of three related agricultural loans during the third quarter of 2024.

What is CRSB's Q4 2024 earnings per share?

CRSB reported diluted earnings per share of $1.18 for Q4 2024, compared to $1.24 for the same period in 2023.

What is the status of CRSB's merger with Plumas Bancorp?

CRSB and Plumas Bancorp announced the signing of a definitive merger agreement in 2024, though specific terms were not disclosed in the release.

How did CRSB's deposits change in 2024?

CRSB's total deposits increased to $584.3 million at December 31, 2024, from $564.5 million at December 31, 2023.

What is CRSB's current allowance for credit losses?

CRSB's allowance for credit losses on loans was $6,164,000, or 1.24% of loans, as of December 31, 2024.