Cornerstone Community Bancorp Reports Financial Results For the Second Quarter Ended June 30, 2021

Rhea-AI Summary

Cornerstone Community Bancorp (OTC Pink: CRSB) reported strong financial results for Q2 2021, with net income of $1,816,000, up from $1,284,000 year-over-year. Diluted EPS rose to $1.20 from $0.84. Key metrics included a return on average assets of 1.35% and a return on average equity of 22.17%. Net interest income increased to $4,239,000, and total loans reached $390.7 million, while deposits surged to $473.3 million. There were no nonperforming assets, highlighting robust asset quality and a strong balance sheet, with shareholders’ equity rising to $33.8 million.

Positive

• Net income increased from $1,284,000 to $1,816,000 year-over-year.
• Diluted EPS rose from $0.84 to $1.20.
• Net interest income grew to $4,239,000 from $3,153,000 year-over-year.
• Total loans increased to $390.7 million from $333.6 million year-over-year.
• Total deposits surged to $473.3 million from $341.4 million year-over-year.
• Shareholders' equity rose to $33.8 million from $27.6 million year-over-year.

Negative

• Non-interest expense increased to $2,015,000 from $1,410,000 year-over-year.

Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the second quarter ended June 30, 2021.

The Company reported net income of $1,816,000 for the three months ended June 30, 2021 compared to net income of $1,284,000 for the same period last year. Diluted earnings per share were $1.20 for the three months ended June 30, 2021 compared to $0.84 for the same period last year.

The return on average assets for the three months ended June 30, 2021 was 1.35% and the return on average equity was 22.17%. The tax-equivalent net interest margin was 3.33% for the three months ended June 30, 2021 compared to 3.06% for the same period last year and the efficiency ratio was 43.23% for the three months ended June 30, 2021 compared to 42.00% for the same period last year.

For the six months ended June 30, 2021, the Company reported net income of $3,863,000 compared to net income of $1,331,000 for the same period last year. Diluted earnings per share were $2.58 for the six months ended June 30, 2021 compared to $0.87 for the same period last year.

The return on average assets for the six months ended June 30, 2021 was 1.45% and the return on average equity was 24.24%.

President and CEO, Jeff Finck stated, “We continue to grow loans, deposits and earnings. Asset quality remains strong with no nonperforming assets.”

Net Interest Income

Net interest income increased to $4,239,000 for the quarter ended June 30, 2021 compared to $3,153,000 for the same quarter last year. For the six months ended June 30, 2021, net interest income increased to $8,456,000 compared to $5,995,000 for the same period last year.

Provision for credit losses

Provision for credit losses were $100,000 for the quarter ended June 30, 2021 compared to $150,000 for the same quarter last year. For the six months ended June 30, 2021, the Company recorded a $500,000 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 June 30, 2021 was $422,000 compared to $204,000 for the quarter ended June 30, 2020. For the six months ended June 30, 2021, non-interest income was $1,299,000 compared to $598,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,015,000 for the quarter ended June 30, 2021 compared to $1,410,000 for the same period last year. For the six months ended June 30, 2021, non-interest expense was $3,828,000 compared to $3,308,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income at June 30, 2021 were $390.7 million compared to $333.6 million at June 30, 2020.

Total deposits were $473.3 million at June 30, 2021 compared to total deposits of $341.4 million at June 30, 2020.

Credit Quality

The allowance for loan losses was $4,509,000, or 1.15% of loans, net of unearned income at June 30, 2021, compared to $4,009,000, or 1.20% of loans, net of unearned income at June 30, 2020. There were no nonperforming assets at June 30, 2021 and June 30, 2020.

Capital

At June 30, 2021, shareholders’ equity totaled $33.8 million compared to $27.6 million at June 30, 2020. Book value was $23.22 per share at June 30, 2021 compared to $18.50 per share at June 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)
		06/30/21			03/31/21			12/31/20			09/30/20			06/30/20
ASSETS
Cash and due from banks		$	5,450		$	5,417		$	3,811		$	5,455		$	6,350
Federal funds sold			2,256			5,761			14,166			5,045			10,402
Interest-bearing deposits			28,549			68,283			77,045			62,110			73,310
Investment securities			75,258			52,084			50,336			50,699			16,173
Loans held for sale			-			1,102			-			-			-
Loans, net of unearned income			390,748			382,253			332,176			342,416			333,620
Allowance for loan losses			(4,509	)		(4,409	)		(4,009	)		(4,009	)		(4,009	)
Loans, net			386,239			377,844			328,167			338,407			329,611
Premises and equipment, net			13,013			12,767			11,581			10,992			11,095
Other assets			14,972			13,974			12,724			12,577			11,882
Total assets		$	525,737		$	537,232		$	497,830		$	485,285		$	458,823
LIABILITIES
Deposits:
Demand noninterest-bearing		$	126,107		$	126,481		$	108,147		$	103,824		$	96,395
Demand interest-bearing			126,724			122,506			108,097			104,819			90,633
Money market and savings			150,086			163,232			146,655			87,035			79,550
Time deposits of less than $100,000			13,393			15,812			15,418			21,103			22,925
Time deposits of $100,000 or more			56,993			57,299			55,021			54,695			51,919
Total deposits			473,303			485,330			433,338			371,476			341,422
Borrowings and other obligations			5,000			5,000			15,000			78,136			83,136
Subordinated debentures			11,709			11,703			16,645			4,923			4,920
Interest payable and other liabilities			1,933			3,776			2,763			1,854			1,765
Total liabilities			491,945			505,809			467,746			456,389			431,243
SHAREHOLDERS' EQUITY
Common stock			14,771			14,681			14,584			15,462			15,440
Retained Earnings			18,999			17,183			15,136			13,077			11,841
Accumulated other comprehensive income (loss)			22			(441	)		364			357			299
Total shareholders' equity			33,792			31,423			30,084			28,896			27,580
Total liabilities and shareholders' equity		$	525,737		$	537,232		$	497,830		$	485,285		$	458,823
Total equity / total assets			6.43	%		5.85	%		6.04	%		5.95	%		6.01	%
Book value per share		$	23.22		$	21.65		$	20.87		$	19.38		$	18.50
Shares outstanding			1,455,091			1,451,091			1,441,241			1,491,041			1,491,041

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
		Three months ended										Six months ended
		06/30/21			03/31/21			06/30/20				06/30/21			06/30/20
INTEREST INCOME
Loans		$	4,379		$	4,451		$	3,612			$	8,830		$	6,968
Federal funds sold			1			2			4				3			21
Investment securities			217			162			82				379			172
Other			53			32			45				85			90
Total interest income			4,650			4,647			3,743				9,297			7,251
INTEREST EXPENSE
Deposits:
Interest-bearing demand			45			47			40				92			75
Money market and savings			93			87			119				180			305
Time deposits			114			124			260				238			591
Other			159			172			171				331			285
Total interest expense			411			430			590				841			1,256
Net interest income			4,239			4,217			3,153				8,456			5,995
Provision for credit losses			100			400			150				500			1,600
Net interest income after provision for credit losses			4,139			3,817			3,003				7,956			4,395
NON-INTEREST INCOME
Service charges on deposit accounts			59			58			46				117			118
Gain on sale of loans			135			700			-				835			186
Gain (loss) on sale of other real estate owned			-			-			-				-			-
Gain (loss) on sale of securities			-			(45	)		-				(45	)		-
Other non-interest income			228			164			158				392			294
Total non-interest income			422			877			204				1,299			598
OPERATING EXPENSES
Salaries and benefits			968			679			392				1,647			1,331
Premises and fixed assets			199			179			257				378			509
Other			848			956			761				1,803			1,468
Total operating expenses			2,015			1,814			1,410				3,828			3,308
Income before income taxes			2,546			2,880			1,797				5,427			1,685
Income taxes			730			834			513				1,564			354
NET INCOME		$	1,816		$	2,046		$	1,284			$	3,863		$	1,331
EARNINGS PER SHARE
Basic earnings per share		$	1.25		$	1.41		$	0.86			$	2.66		$	0.90
Diluted earnings per share		$	1.20		$	1.38		$	0.84			$	2.58		$	0.87
Average common shares outstanding			1,453,915			1,447,763			1,485,217				1,450,856			1,482,942
Average common and equivalent shares outstanding			1,510,621			1,485,953			1,523,322				1,497,565			1,528,547
PERFORMANCE MEASURES
Return on average assets			1.35	%		1.56	%		1.18	%			1.45	%		0.72	%
Return on average equity			22.17	%		26.41	%		18.92	%			24.24	%		9.90	%
Tax-equivalent net interest margin			3.33	%		3.43	%		3.06	%			3.38	%		3.48	%
Efficiency ratio			43.23	%		35.61	%		42.00	%			39.24	%		50.17	%

 

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FAQ

What were the earnings results for Cornerstone Community Bancorp (CRSB) in Q2 2021?

Cornerstone Community Bancorp reported net income of $1,816,000 for Q2 2021.

How much did the diluted earnings per share (EPS) rise for CRSB in Q2 2021?

The diluted EPS for CRSB rose to $1.20 in Q2 2021, up from $0.84 in the same quarter last year.

What is the total loan amount reported by CRSB as of June 30, 2021?

CRSB reported total loans of $390.7 million as of June 30, 2021.

How has the total deposits changed for CRSB year-over-year as of June 30, 2021?

Total deposits for CRSB increased to $473.3 million as of June 30, 2021, compared to $341.4 million a year earlier.

What is the return on average equity for CRSB in Q2 2021?

The return on average equity for CRSB in Q2 2021 was 22.17%.