Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2021

Rhea-AI Summary

Cornerstone Community Bancorp (OTC Pink: CRSB) reported its financial results for Q4 and the full year ending December 31, 2021. Net income for Q4 was $1,967,000, down from $2,059,000 year-over-year, with diluted EPS at $1.29 compared to $1.36. For the full year, net income increased to a record $7,915,000 from $4,626,000, with diluted EPS rising to $5.25 from $3.04. Total loans reached $387.4 million and deposits $547.7 million, reflecting strong growth. The company announced plans to open a new branch in Anderson in Q1 2022.

Positive

• Record annual net income of $7,915,000, a 71% increase from the previous year.
• Diluted EPS for the year soared to $5.25 from $3.04.
• Total loans grew to $387.4 million, up from $332.2 million.
• Total deposits rose to $547.7 million, from $433.3 million.
• Non-interest income increased significantly to $2,378,000 for the year.

Negative

• Q4 net income decreased to $1,967,000 from $2,059,000 the previous year.
• Diluted EPS dropped to $1.29 in Q4 from $1.36 year-over-year.
• Tax-equivalent net interest margin decreased to 3.59% from 3.81% in Q4.

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, 2021.

The Company reported net income of $1,967,000 for the three months ended December 31, 2021 compared to net income of $2,059,000 for the same period last year. Diluted earnings per share were $1.29 for the three months ended December 31, 2021 compared to $1.36 for the same period last year.

The return on average assets for the three months ended December 31, 2021 was 1.41% and the return on average equity was 21.63%. The tax-equivalent net interest margin was 3.59% for the three months ended December 31, 2021 compared to 3.81% for the same period last year and the efficiency ratio was 43.43% for the three months ended December 31, 2021 compared to 39.69% for the same period last year.

For the year ended December 31, 2021, the Company reported record net income of $7,915,000 compared to net income of $4,626,000 for the same period last year. Diluted earnings per share were $5.25 for the year ended December 31, 2021 compared to $3.04 for the same period last year.

The return on average assets for the year ended December 31, 2021 was 1.46% and the return on average equity was 23.35%.

President and CEO, Jeff Finck stated, “We are very pleased with our 2021 results. Loans and deposits grew at a strong pace. We look forward to 2022 with the opening of our Anderson branch in the first quarter.”

Net Interest Income

Net interest income increased to $4,781,000 for the quarter ended December 31, 2021 compared to $4,465,000 for the same quarter last year. For the year ended December 31, 2021, net interest income increased to $17,993,000 compared to $13,836,000 for the same period last year.

Provision for credit losses

Provision for credit losses were $150,000 for the quarter ended December 31, 2021 compared to no provision for the same quarter last year. For the year ended December 31, 2021, the Company recorded a $1,050,000 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 December 31, 2021 was $365,000 compared to $345,000 for the quarter ended December 31, 2020. For the year ended December 31, 2021, non-interest income was $2,378,000 compared to $1,239,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,235,000 for the quarter ended December 31, 2021 compared to $1,909,000 for the same period last year. For the year ended December 31, 2021, non-interest expense was $8,200,000 compared to $7,156,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income at December 31, 2021 were $387.4 million compared to $332.2 million at December 31, 2020.

Total deposits were $547.7 million at December 31, 2021 compared to total deposits of $433.3 million at December 31, 2020.

Credit Quality

The allowance for loan losses was $5,059,000, or 1.31% of loans, net of unearned income at December 31, 2021, compared to $4,009,000, or 1.21% of loans, net of unearned income at December 31, 2020. There were no nonperforming assets at December 31, 2021 and December 31, 2020.

Capital

At December 31, 2021, shareholders’ equity totaled $37.0 million compared to $30.1 million at December 31, 2020. Book value was $25.31 per share at December 31, 2021 compared to $20.87 per share at December 31, 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)
		12/31/21				09/30/21				06/30/21				03/31/21				12/31/20
ASSETS
Cash and due from banks		$	4,552			$	4,765			$	5,450			$	5,417			$	3,811
Federal funds sold			121				2,600				2,256				5,761				14,166
Interest-bearing deposits			77,933				24,636				28,549				68,283				77,045
Investment securities			108,253				110,470				75,258				52,084				50,336
Loans held for sale			-				-				-				1,102				-
Loans, net of unearned income			387,374				388,532				390,748				382,253				332,176
Allowance for loan losses			(5,059	)			(4,909	)			(4,509	)			(4,409	)			(4,009	)
Loans, net			382,315				383,623				386,239				377,844				328,167
Premises and equipment, net			14,488				13,567				13,013				12,767				11,581
Other assets			15,622				14,863				14,972				13,974				12,724
Total assets		$	603,284			$	554,524			$	525,737			$	537,232			$	497,830
LIABILITIES
Deposits:
Demand noninterest-bearing		$	174,282			$	141,734			$	126,107			$	126,481			$	108,147
Demand interest-bearing			131,368				131,964				126,724				122,506				108,097
Money market and savings			163,946				150,149				150,086				163,232				146,655
Time deposits of less than $100,000			13,662				13,180				13,393				15,812				15,418
Time deposits of $100,000 or more			64,449				63,111				56,993				57,299				55,021
Total deposits			547,707				500,138				473,303				485,330				433,338
Borrowings and other obligations			5,000				5,000				5,000				5,000				15,000
Subordinated debentures			11,720				11,715				11,709				11,703				16,645
Interest payable and other liabilities			1,838				2,151				1,933				3,776				2,763
Total liabilities			566,265				519,004				491,945				505,809				467,746
SHAREHOLDERS' EQUITY
Common stock			14,913				14,814				14,771				14,681				14,584
Retained Earnings			23,051				21,084				18,999				17,183				15,136
Accumulated other comprehensive income (loss)			(945	)			(378	)			22				(441	)			364
Total shareholders' equity			37,019				35,520				33,792				31,423				30,084
Total liabilities and shareholders' equity		$	603,284			$	554,524			$	525,737			$	537,232			$	497,830
Total equity / total assets			6.14	%			6.41	%			6.43	%			5.85	%			6.04	%
Book value per share		$	25.31			$	24.37			$	23.22			$	21.65			$	20.87
Shares outstanding			1,462,591				1,457,591				1,455,091				1,451,091				1,441,241

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
		Three months ended												Year ended
		12/31/21				09/30/21				12/31/20				12/31/21				12/31/20
INTEREST INCOME
Loans		$	4,759			$	4,772			$	4,761			$	18,361			$	15,424
Federal funds sold			1				-				2				4				24
Investment securities			385				360				162				1,124				495
Other			60				35				51				180				174
Total interest income			5,205				5,167				4,976				19,669				16,117
INTEREST EXPENSE
Deposits:
Interest-bearing demand			49				46				55				187				181
Money market and savings			109				96				80				385				464
Time deposits			107				107				155				452				944
Other			159				162				221				652				692
Total interest expense			424				411				511				1,676				2,281
Net interest income			4,781				4,756				4,465				17,993				13,836
Provision for credit losses			150				400				-				1,050				1,600
Net interest income after provision for credit losses			4,631				4,356				4,465				16,943				12,236
NON-INTEREST INCOME
Service charges on deposit accounts			65				62				55				244				222
Gain on sale of loans			-				396				61				1,231				247
Gain (loss) on sale of other real estate owned			-				-				-				-				-
Gain (loss) on sale of securities			-				-				-				(45	)			91
Other non-interest income			300				256				229				948				679
Total non-interest income			365				714				345				2,378				1,239
OPERATING EXPENSES
Salaries and benefits			1,175				1,048				970				3,870				3,280
Premises and fixed assets			192				212				182				782				891
Other			868				877				757				3,548				2,985
Total operating expenses			2,235				2,137				1,909				8,200				7,156
Income before income taxes			2,761				2,933				2,901				11,121				6,319
Income taxes			794				848				842				3,206				1,693
NET INCOME		$	1,967			$	2,085			$	2,059			$	7,915			$	4,626
EARNINGS PER SHARE
Basic earnings per share		$	1.35			$	1.43			$	1.39			$	5.44			$	3.12
Diluted earnings per share		$	1.29			$	1.38			$	1.36			$	5.25			$	3.04
Average common shares outstanding			1,459,667				1,456,531				1,477,361				1,454,507				1,483,575
Average common and equivalent shares outstanding			1,518,908				1,512,738				1,511,365				1,507,561				1,522,714
PERFORMANCE MEASURES
Return on average assets			1.41	%			1.53	%			1.68	%			1.46	%			1.09	%
Return on average equity			21.63	%			23.52	%			27.70	%			23.35	%			16.53	%
Tax-equivalent net interest margin			3.59	%			3.66	%			3.81	%			3.50	%			3.45	%
Efficiency ratio			43.43	%			39.07	%			39.69	%			40.25	%			47.47	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220120005959/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 the fourth quarter earnings for CRSB in 2021?

CRSB reported a net income of $1,967,000 for Q4 2021.

How did CRSB's annual earnings perform in 2021?

CRSB achieved a record net income of $7,915,000 for the full year 2021.

What is the diluted EPS for CRSB in 2021?

The diluted EPS for CRSB in 2021 was $5.25, up from $3.04 the previous year.

What was the increase in total loans and deposits for CRSB in 2021?

Total loans increased to $387.4 million and total deposits rose to $547.7 million in 2021.

What new developments can CRSB investors expect in 2022?

CRSB plans to open a new branch in Anderson during the first quarter of 2022.