Cornerstone Community Bancorp Reports Financial Results For the Second Quarter Ended June 30, 2024

Rhea-AI Summary

Cornerstone Community Bancorp (CRSB) reported its financial results for Q2 2024, ending June 30. The company's net income decreased to $1,443,000 from $1,864,000 in the same period last year. Diluted earnings per share dropped to $0.94 from $1.22. The return on average assets was 0.86%, and the return on average equity was 12.86%.

Key financial highlights include:

• Net interest income decreased to $5,107,000 for Q2 2024
• Provision for credit losses on loans was $169,000
• Non-interest income increased slightly to $367,000
• Total loans grew to $498.0 million
• Total deposits increased to $595.4 million
• Shareholders' equity rose to $45.8 million

Despite industry-wide margin pressure, CRSB saw a slight improvement in net interest margin, with expectations for this trend to continue in the near term.

RED BLUFF, Calif.--(BUSINESS WIRE)-- Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the second quarter ended June 30, 2024.

The Company reported net income of $1,443,000 for the three months ended June 30, 2024 compared to net income of $1,864,000 for the same period last year. Diluted earnings per share were $0.94 for the three months ended June 30, 2024 compared to $1.22 for the same period last year.

The return on average assets for the three months ended June 30, 2024 was 0.86% and the return on average equity was 12.86%. The tax-equivalent net interest margin was 3.21% for the three months ended June 30, 2024 compared to 3.73% for the same period last year.

For the six months ended June 30, 2024, the Company reported net income of $2,837,000 compared to net income of $3,559,000 for the same period last year. Diluted earnings per share were $1.85 for the six months ended June 30, 2024 compared to $2.34 for the same period last year.

The return on average assets for the six months ended June 30, 2024 was 0.86% and the return on average equity was 12.78%.

President and CEO, Matt Moseley stated, “The banking industry continues to experience margin pressure but Cornerstone has seen a slight improvement in net interest margin as deposit cost increases have begun to flatten out and assets reprice higher. This trend is expected to continue in the near term. Core relationships continue to expand due to the bank’s focus on personalized customer service combined with top tier digital banking and other desirable product offerings.”

Net Interest Income

Net interest income decreased to $5,107,000 for the quarter ended June 30, 2024 compared to $5,541,000 for the same quarter last year. For the six months ended June 30, 2024, net interest income decreased to $9,991,000 compared to $10,720,000 for the same period last year.

Provision for credit losses on loans

The Company recorded a $169,000 provision for credit losses on loans for the three months ended June 30, 2024 compared to $220,000 for the three months ended June 30, 2023. For the six months ended June 30, 2024, the Company recorded a $313,000 provision for credit losses on loans compared to $330,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended June 30, 2024 was $367,000 compared to $353,000 for the quarter ended June 30, 2023. For the six months ended June 30, 2024, noninterest income was $723,000 compared to $662,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $3,310,000 for the quarter ended June 30, 2024 compared to $3,085,000 for the same period last year. For the six months ended June 30, 2024, non-interest expense was $6,513,000 compared to $6,108,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income, at June 30, 2024 were $498.0 million compared to $447.3 million at June 30, 2023.

Total deposits were $595.4 million at June 30, 2024 compared to total deposits of $569.3 million at June 30, 2023.

Credit Quality

The allowance for credit losses on loans was $6,126,000, or 1.23% of loans, net of unearned income, at June 30, 2024, compared to $5,617,000, or 1.26% of loans, net of unearned income, at June 30, 2023. Nonperforming assets were $362,000 at June 30, 2024 compared to $233,000 at June 30, 2023.

Capital

At June 30, 2024, shareholders’ equity totaled $45.8 million compared to $38.3 million at June 30, 2023. At June 30, 2024, the Company's book value per common share was $30.78 compared to $25.89 at June 30, 2023.

At June 30, 2024, the Bank’s estimated total risk-based capital ratio was 12.85% and its tier 1 capital to risk weighted assets ratio was 11.75%. 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)
	06/30/24			03/31/24			12/31/23			09/30/23			06/30/23
ASSETS
Cash and due from banks	$	7,571		$	6,389		$	8,623		$	5,492		$	8,482
Federal funds sold		-			-			-			-			-
Interest bearing deposits in other financial institutions		43,025			45,955			19,694			23,970			34,076
Available for sale debt securities, at fair value		89,089			90,767			93,065			90,086			93,889
Loans held for sale		-			-			-			-			-
Loans, net of unearned income		498,048			488,179			482,212			470,060			447,339
Allowance for credit losses on loans		(6,126	)		(5,957	)		(5,813	)		(5,813	)		(5,617	)
Loans, net		491,922			482,222			476,399			464,247			441,722
Premises and equipment, net		14,418			14,433			14,326			14,437			14,492
Other assets		32,514			30,812			30,827			31,241			29,724
Total assets	$	678,537		$	670,578		$	642,934		$	629,472		$	622,385
LIABILITIES
Deposits:
Demand noninterest-bearing	$	102,419		$	99,278		$	101,396		$	100,791		$	109,775
Demand interest-bearing		167,720			159,542			166,221			190,645			179,508
Money market and savings		176,644			182,797			174,882			176,373			177,976
Time deposits		148,582			148,384			122,035			107,894			101,991
Total deposits		595,365			590,001			564,534			575,703			569,250
Borrowings and other obligations		20,000			20,000			20,000			-			-
Subordinated debentures		11,781			11,775			11,769			11,762			11,756
Interest payable and other liabilities		5,637			4,252			3,464			3,512			3,070
Total liabilities		632,784			626,028			599,767			590,977			584,076
SHAREHOLDERS' EQUITY
Common stock		15,268			15,231			15,163			15,130			15,140
Retained Earnings		40,476			39,033			37,639			35,747			33,827
Accumulated other comprehensive income (loss)		(9,991	)		(9,714	)		(9,635	)		(12,382	)		(10,658	)
Total shareholders' equity		45,754			44,550			43,167			38,495			38,309
Total liabilities and shareholders' equity	$	678,537		$	670,578		$	642,934		$	629,472		$	622,385
Total equity / total assets		6.74	%		6.64	%		6.71	%		6.12	%		6.16	%
Book value per share	$	30.78		$	29.99		$	29.16		$	26.01		$	25.89
Shares outstanding		1,486,692			1,485,472			1,480,472			1,479,862			1,479,862

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
	Three months ended										Six months ended
	06/30/24			03/31/24			06/30/23				06/30/24			06/30/23
INTEREST INCOME
Loans	$	7,363		$	7,006		$	5,955			$	14,369		$	11,506
Federal funds sold		-			-			2				-			3
Investment securities		792			728			734				1,520			1,458
Other		611			419			667				1,030			1,134
Total interest income		8,766			8,152			7,358				16,919			14,101
INTEREST EXPENSE
Deposits:
Interest-bearing demand		331			301			209				632			456
Money market and savings		1,217			1,146			675				2,363			1,254
Time deposits		1,722			1,432			784				3,154			1,373
Other		389			389			149				778			298
Total interest expense		3,659			3,268			1,817				6,927			3,381
Net interest income		5,107			4,884			5,541				9,991			10,720
Provision for credit losses		169			144			220				313			330
Net interest income after provision
for credit losses		4,938			4,740			5,321				9,678			10,390
NON-INTEREST INCOME
Service charges on deposit accounts		72			75			75				147			137
Gain on sale of loans		-			-			-				-			-
Gain (loss) on sale of other real estate owned		-			-			-				-			-
Gain (loss) on sale of securities		-			-			-				-			-
Other non-interest income		295			281			278				576			525
Total non-interest income		367			356			353				723			662
OPERATING EXPENSES
Salaries and benefits		1,880			1,801			1,668				3,681			3,317
Premises and fixed assets		265			267			266				532			579
Other		1,165			1,134			1,151				2,299			2,212
Total operating expenses		3,310			3,202			3,085				6,513			6,108
Income before income taxes		1,995			1,894			2,589				3,889			4,944
Income taxes		552			500			725				1,052			1,385
NET INCOME	$	1,443		$	1,394		$	1,864			$	2,837		$	3,559
EARNINGS PER SHARE
Basic earnings per share	$	0.97		$	0.94		$	1.26			$	1.91		$	2.41
Diluted earnings per share	$	0.94		$	0.91		$	1.22			$	1.85		$	2.34
Average common shares outstanding		1,486,370			1,484,318			1,479,862				1,485,344			1,479,862
Average common and equivalent
shares outstanding		1,529,714			1,529,931			1,522,072				1,529,814			1,523,716
PERFORMANCE MEASURES
Return on average assets		0.86	%		0.86	%		1.20	%			0.86	%		1.16	%
Return on average equity		12.86	%		12.69	%		19.71	%			12.78	%		19.47	%
Tax-equivalent net interest margin		3.21	%		3.18	%		3.73	%			3.19	%		3.69	%
Efficiency ratio		60.47	%		61.10	%		52.34	%			60.78	%		53.66	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718682299/en/

Matthew B. Moseley

President & CEO

530.222.1460

Patrick E. Phelan

Chief Financial Officer

530.222.1460

Source: Cornerstone Community Bancorp

FAQ

What was Cornerstone Community Bancorp's (CRSB) net income for Q2 2024?

Cornerstone Community Bancorp (CRSB) reported a net income of $1,443,000 for the second quarter ended June 30, 2024.

How did CRSB's Q2 2024 earnings compare to the same period last year?

CRSB's Q2 2024 net income of $1,443,000 was lower compared to $1,864,000 for the same period last year. Diluted earnings per share also decreased from $1.22 to $0.94.

What was CRSB's return on average equity for Q2 2024?

Cornerstone Community Bancorp's return on average equity was 12.86% for the three months ended June 30, 2024.

How much did CRSB's total loans grow by June 30, 2024?

CRSB's total loans, net of unearned income, grew to $498.0 million as of June 30, 2024, compared to $447.3 million on June 30, 2023.

What was CRSB's book value per common share as of June 30, 2024?

Cornerstone Community Bancorp's book value per common share was $30.78 as of June 30, 2024, an increase from $25.89 on June 30, 2023.