Cornerstone Community Bancorp Reports Financial Results for the First Quarter Ended March 31, 2025

RED BLUFF, Calif.--(BUSINESS WIRE)-- Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the first quarter ended March 31, 2025.

The Company reported net income of $1,273,000 for the three months ended March 31, 2025 compared to net income of $1,394,000 for the same period last year. Diluted earnings per share were $0.82 for the three months ended March 31, 2025 compared to diluted earnings per share of $0.91 for the same period last year.

President and CEO, Matt Moseley stated, “The company’s balance sheet is well situated for continued, consistent earnings. Net interest margin is improving and non interest expense, absent of merger related costs, has remained relatively flat compared to the first quarter of last year. We are very excited about our upcoming partnership with Plumas Bancorp. The combination of the companies will create an even stronger financial institution that will greatly benefit both companies’ customers, shareholders, communities and employees.”

Net Interest Income

Net interest income increased to $5,019,000 for the quarter ended March 31, 2025 compared to $4,884,000 for the same quarter last year.

The tax-equivalent net interest margin was 3.27% for the quarter ended March 31, 2025 compared to 3.18% for the same quarter of last year.

Provision for credit losses on loans

For the three months ended March 31, 2025, the Company recorded a $60,000 provision for credit losses on loans compared to $144,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended March 31, 2025 was $369,000 compared to $356,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $3,533,000 for the quarter ended March 31, 2025 compared to $3,202,000 for the same period last year. $193,000 of this increase was due to costs associated with the pending acquisition by Plumas Bancorp.

Balance Sheet

Total loans, net of unearned income, at March 31, 2025 were $491.5 million compared to $488.2 million at March 31, 2024.

Total deposits were $571.9 million at March 31, 2025 compared to total deposits of $590.0 million at March 31, 2024.

Credit Quality

The allowance for credit losses on loans was $6,224,000, or 1.27% of loans, net of unearned income, at March 31, 2025, compared to $5,957,000, or 1.22% of loans, net of unearned income, at March 31, 2024. Nonperforming assets were $409,000 at March 31, 2025. There were no nonperforming assets at March 31, 2024.

Capital

At March 31, 2025, shareholders’ equity totaled $44.0 million compared to $44.6 million at March 31, 2024. At March 31, 2025, the Company's book value per common share was $29.15 compared to $29.99 at March 31, 2024.

At March 31, 2025, the Bank’s estimated total risk-based capital ratio was 12.83% and its tier 1 capital to risk weighted assets ratio was 11.68%. 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)
		03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
ASSETS
Cash and due from banks		$	8,392			$	4,837			$	9,127			$	7,571			$	6,389
Federal funds sold			-				-				-				-				-
Interest bearing deposits in other financial institutions			17,479				25,078				40,306				43,025				45,955
Available for sale debt securities, at fair value			87,888				87,492				90,616				89,089				90,767
Loans held for sale			-				-				-				-				-
Loans, net of unearned income			491,529				498,863				487,125				498,048				488,179
Allowance for credit losses on loans			(6,224	)			(6,164	)			(6,164	)			(6,126	)			(5,957	)
Loans, net			485,305				492,699				480,962				491,922				482,222
Premises and equipment, net			14,002				14,137				14,405				14,418				14,433
Other assets			35,105				33,683				33,780				32,514				30,812
Total assets		$	648,171			$	657,925			$	669,197			$	678,537			$	670,578
LIABILITIES
Deposits:
Demand noninterest-bearing		$	87,103			$	89,525			$	91,936			$	102,419			$	99,278
Demand interest-bearing			147,975				158,649				166,505				167,720				159,542
Money market and savings			187,432				186,642				186,186				176,644				182,797
Time deposits			149,379				149,452				144,443				148,582				148,384
Total deposits			571,889				584,269				589,069				595,365				590,001
Borrowings and other obligations			15,000				15,000				20,000				20,000				20,000
Subordinated debentures			11,801				11,795				11,788				11,781				11,775
Interest payable and other liabilities			5,432				4,275				7,409				5,637				4,252
Total liabilities			604,122				615,339				628,266				632,784				626,028
SHAREHOLDERS' EQUITY
Common stock			15,548				15,442				15,337				15,268				15,231
Retained Earnings			38,127				36,854				35,045				40,476				39,033
Accumulated other comprehensive income (loss)			(9,626	)			(9,709	)			(9,452	)			(9,991	)			(9,714	)
Total shareholders' equity			44,049				42,586				40,930				45,754				44,550
Total liabilities and shareholders' equity		$	648,171			$	657,925			$	669,197			$	678,537			$	670,578
Total equity / total assets			6.80	%			6.47	%			6.12	%			6.74	%			6.64	%
Book value per share		$	29.15			$	28.37			$	27.44			$	30.78			$	29.99
Shares outstanding			1,511,091				1,501,091				1,491,692				1,486,692				1,485,472

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
		Three months ended
		03/31/25				12/31/24				03/31/24
INTEREST INCOME
Loans		$	7,282			$	7,292			$	7,006
Federal funds sold			-				-				-
Investment securities			638				664				728
Other			355				661				419
Total interest income			8,275				8,617				8,152
INTEREST EXPENSE
Deposits:
Interest-bearing demand			292				329				301
Money market and savings			1,128				1,196				1,146
Time deposits			1,519				1,617				1,432
Other			317				305				389
Total interest expense			3,256				3,447				3,268
Net interest income			5,019				5,170				4,884
Provision for credit losses on loans			60				-				144
Net interest income after provision for credit losses			4,959				5,170				4,740
NON-INTEREST INCOME
Service charges on deposit accounts			79				75				75
Gain on sale of loans			-				-				-
Gain (loss) on sale of other real estate owned			-				-				-
Gain (loss) on sale of securities			-				-				-
Other non-interest income			290				299				281
Total non-interest income			369				374				356
OPERATING EXPENSES
Salaries and benefits			1,823				1,688				1,801
Premises and fixed assets			242				249				267
Other			1,468				1,290				1,134
Total operating expenses			3,533				3,227				3,202
Income (loss) before income taxes			1,795				2,317				1,894
Income taxes (benefit)			522				508				500
NET (LOSS) INCOME		$	1,273			$	1,809			$	1,394
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share		$	0.84			$	1.21			$	0.94
Diluted earnings (loss) per share		$	0.82			$	1.18			$	0.91
Average common shares outstanding			1,510,980				1,493,798				1,484,318
Average common and equivalent shares outstanding			1,545,640				1,527,533				1,529,931
PERFORMANCE MEASURES
Return on average assets			0.78	%			1.08	%			0.86	%
Return on average equity			11.58	%			17.28	%			12.69	%
Tax-equivalent net interest margin			3.27	%			3.23	%			3.18	%
Efficiency ratio			65.58	%			58.21	%			61.10	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250422626796/en/

Matthew B. Moseley

President & CEO

530.222.1460

Patrick E. Phelan

Chief Financial Officer

530.222.1460

Source: Cornerstone Community Bancorp