Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2023

RED BLUFF, Calif., January 24, 2024--(BUSINESS WIRE)--Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter and full year ended December 31, 2023.

The Company reported net income of $1,892,000 for the three months ended December 31, 2023 compared to net income of $1,926,000 for the same period last year. Diluted earnings per share were $1.24 for the three months ended December 31, 2023 compared to $1.27 for the same period last year.

The return on average assets for the three months ended December 31, 2023 was 1.19% and the return on average equity was 18.94%. The tax-equivalent net interest margin was 3.55% for the three months ended December 31, 2023 compared to 3.61% for the same period last year.

For the year ended December 31, 2023, the Company reported net income of $7,371,000 compared to net income of $7,243,000 for the same period last year. Diluted earnings per share were $4.84 for the year ended December 31, 2023 compared to $4.74 for the same period last year.

The return on average assets for the year ended December 31, 2023 was 1.18% and the return on average equity was 19.36%.

President and CEO, Matt Moseley stated, "2023 was a challenging year for the financial industry as a whole due to the interest rate environment as well as the failure of a few large regional banks earlier in the year. Cornerstone Community Bank navigated those challenges well due to our community bank business model that focuses on taking care of the needs of our customers and truly valuing them. I am very proud of our team and thankful to the communities we serve for another great year."

Net Interest Income

Net interest income increased to $5,439,000 for the quarter ended December 31, 2023 compared to $5,156,000 for the same quarter last year. For the year ended December 31, 2023, net interest income increased to $21,805,000 compared to $19,307,000 for the same period last year.

Provision for credit losses on loans

No provision for credit losses on loans was recorded for the three months ended December 31, 2023 nor the three months ended December 31, 2022. For the year ended December 31, 2023, the Company recorded a $530,000 provision for credit losses on loans compared to $113,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2023 was $358,000 compared to $265,000 for the quarter ended December 31, 2022. For the year ended December 31, 2023, noninterest income was $1,389,000 compared to $1,060,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $3,173,000 for the quarter ended December 31, 2023 compared to $2,750,000 for the same period last year. For the year ended December 31, 2023, non-interest expense was $12,449,000 compared to $10,118,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income, at December 31, 2023 were $482.2 million compared to $420.4 million at December 31, 2022.

Total deposits were $564.5 million at December 31, 2023 compared to total deposits of $534.8 million at December 31, 2022.

Credit Quality

The allowance for credit losses on loans was $5,813,000, or 1.21% of loans, net of unearned income, at December 31, 2023, compared to $5,159,000, or 1.23% of loans, net of unearned income, at December 31, 2022. There were no nonperforming assets at December 31, 2023 and December 31, 2022.

Capital

At December 31, 2023, shareholders’ equity totaled $43.2 million compared to $33.3 million at December 31, 2022. At December 31, 2023, the Company's book value per common share was $29.16 compared to $22.48 at December 31, 2022.

At December 31, 2023, the Bank’s estimated total risk-based capital ratio was 12.83% and its tier 1 capital to risk weighted assets ratio was 11.74%. 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 2022), 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)
		12/31/23				09/30/23				06/30/23				03/31/23				12/31/22
ASSETS
Cash and due from banks		$	8,623			$	5,492			$	8,482			$	7,365			$	5,628
Federal funds sold			-				-				-				124				123
Interest-bearing deposits			19,694				23,970				34,076				44,706				25,212
Investment securities			93,065				90,086				93,889				95,139				94,435
Loans held for sale			-				-				-				-				-
Loans, net of unearned income			482,212				470,060				447,339				431,475				420,415
Allowance for loan losses			(5,813	)			(5,813	)			(5,617	)			(5,397	)			(5,159	)
Loans, net			476,399				464,247				441,722				426,079				415,256
Premises and equipment, net			14,326				14,437				14,492				14,492				14,601
Other assets			30,827				31,241				29,724				28,906				27,326
Total assets		$	642,934			$	629,472			$	622,385			$	616,812			$	582,581
LIABILITIES
Deposits:
Demand noninterest-bearing		$	101,396			$	100,791			$	109,775			$	125,008			$	126,946
Demand interest-bearing			166,221				190,645				179,508				165,203				136,655
Money market and savings			174,882				176,373				177,976				180,996				182,787
Time deposits			122,035				107,894				101,991				94,542				88,430
Total deposits			564,534				575,703				569,250				565,749				534,818
Borrowings and other obligations			20,000				-				-				-				-
Subordinated debentures			11,769				11,762				11,756				11,750				11,744
Interest payable and other liabilities			3,464				3,512				3,070				2,954				2,755
Total liabilities			599,767				590,977				584,076				580,452				549,317
SHAREHOLDERS' EQUITY
Common stock			15,163				15,130				15,140				15,113				15,075
Retained Earnings			37,639				35,747				33,827				31,963				30,294
Accumulated other comprehensive income (loss)			(9,635	)			(12,382	)			(10,658	)			(10,716	)			(12,105	)
Total shareholders' equity			43,167				38,495				38,309				36,360				33,264
Total liabilities and shareholders' equity		$	642,934			$	629,472			$	622,385			$	616,812			$	582,581
Total equity / total assets			6.71%				6.12%				6.16%				5.89%				5.71%
Book value per share		$	29.16			$	26.01			$	25.89			$	24.57			$	22.48
Shares outstanding			1,480,472				1,479,862				1,479,862				1,479,862				1,479,862

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
		Three months ended												Year ended
		12/31/23				09/30/23				12/31/22				12/31/23				12/31/22
INTEREST INCOME
Loans		$	6,862			$	6,517			$	5,178			$	24,885			$	19,029
Federal funds sold			-				-				1				3				2
Investment securities			751				739				676				2,948				2,054
Other			426				558				515				2,118				1,073
Total interest income			8,039				7,814				6,370				29,954				22,158
INTEREST EXPENSE
Deposits:
Interest-bearing demand			291				289				214				1,036				454
Money market and savings			904				798				450				2,956				974
Time deposits			1,245				933				401				3,551				821
Other			160				148				149				606				602
Total interest expense			2,600				2,168				1,214				8,149				2,851
Net interest income			5,439				5,646				5,156				21,805				19,307
Provision for credit losses			-				200				-				530				113
Net interest income after provision for credit losses			5,439				5,446				5,156				21,275				19,194
NON-INTEREST INCOME
Service charges on deposit accounts			70				63				66				270				266
Gain on sale of loans			-				-				-				-				-
Gain (loss) on sale of other real estate owned			-				-				-				-				-
Gain (loss) on sale of securities			-				-				-				-				-
Other non-interest income			288				306				199				1,119				794
Total non-interest income			358				369				265				1,389				1,060
OPERATING EXPENSES
Salaries and benefits			1,865				1,781				1,567				6,963				5,340
Premises and fixed assets			263				268				242				1,110				854
Other			1,045				1,119				941				4,376				3,924
Total operating expenses			3,173				3,168				2,750				12,449				10,118
Income before income taxes			2,624				2,647				2,671				10,215				10,136
Income taxes			732				727				745				2,844				2,893
NET INCOME		$	1,892			$	1,920			$	1,926			$	7,371			$	7,243
EARNINGS PER SHARE
Basic earnings per share		$	1.28			$	1.30			$	1.31			$	4.98			$	4.92
Diluted earnings per share		$	1.24			$	1.26			$	1.27			$	4.84			$	4.74
Average common shares outstanding			1,479,948				1,479,862				1,474,754				1,479,884				1,472,381
Average common and equivalent shares outstanding			1,523,488				1,524,640				1,520,935				1,523,893				1,526,734
PERFORMANCE MEASURES
Return on average assets			1.19	%			1.21	%			1.32	%			1.18	%			1.24	%
Return on average equity			18.94	%			19.58	%			24.23	%			19.36	%			21.36	%
Tax-equivalent net interest margin			3.55	%			3.68	%			3.61	%			3.65	%			3.43	%
Efficiency ratio			54.74	%			52.67	%			50.73	%			53.67	%			49.68	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20240123904640/en/

Contacts

Matthew B. Moseley
President & CEO
530.222.1460

Patrick E. Phelan
Chief Financial Officer
530.222.1460