Cornerstone Community Bancorp (OTC Pink: CRSB) announced
today its financial results for the fourth quarter and full year
ended December 31, 2022.
The Company reported net income of $1,926,000 for the three
months ended December 31, 2022 compared to net income of $1,967,000
for the same period last year. Diluted earnings per share were
$1.27 for the three months ended December 31, 2022 compared to
$1.29 for the same period last year.
The return on average assets for the three months ended December
31, 2022 was 1.32% and the return on average equity was 24.23%. The
tax-equivalent net interest margin was 3.61% for the three months
ended December 31, 2022 compared to 3.59% for the same period last
year and the efficiency ratio was 50.73% for the three months ended
December 31, 2022 compared to 43.14% for the same period last
year.
For the year ended December 31, 2022, the Company reported net
income of $7,243,000 compared to net income of $7,915,000 for the
same period last year. Diluted earnings per share were $4.74 for
the year ended December 31, 2022 compared to $5.25 for the same
period last year.
The return on average assets for the year ended December 31,
2022 was 1.24% and the return on average equity was 21.36%.
President and CEO, Matt Moseley stated, “We are pleased with our
2022 operating results. We are excited to begin the new year with
the team and infrastructure we put in place in 2022.”
Net Interest Income
Net interest income increased to $5,156,000 for the quarter
ended December 31, 2022 compared to $4,781,000 for the same quarter
last year. For the year ended December 31, 2022, net interest
income increased to $19,307,000 compared to $17,993,000 for the
same period last year.
Provision for credit losses
There was no provision for credit losses recorded for the
quarter ended December 31, 2022 compared to $150,000 for the same
quarter last year. For the year ended December 31, 2022, the
Company recorded a $113,000 provision for credit losses compared to
$1,050,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2022 was
$265,000 compared to $339,000 for the quarter ended December 31,
2021. For the year ended December 31, 2022, non-interest income was
$1,060,000 compared to $2,245,000 for the same period last
year.
Non-Interest Expense
Non-interest expense was $2,750,000 for the quarter ended
December 31, 2022 compared to $2,209,000 for the same period last
year. For the year ended December 31, 2022, non-interest expense
was $10,118,000 compared to $8,067,000 for the same period last
year.
Balance Sheet
Total loans, net of unearned income, at December 31, 2022 were
$420.4 million compared to $387.4 million at December 31, 2021.
Total deposits were $534.8 million at December 31, 2022 compared
to total deposits of $547.7 million at December 31, 2021.
Credit Quality
The allowance for loan losses was $5,159,000, or 1.23% of loans,
net of unearned income, at December 31, 2022, compared to
$5,059,000, or 1.31% of loans, net of unearned income, at December
31, 2021. There were no nonperforming assets at December 31, 2022
and December 31, 2021.
Capital
At December 31, 2022, shareholders’ equity totaled $33.3 million
compared to $37.0 million at December 31, 2021. At December 31,
2022, the Company's book value per common share was $22.48 compared
to $25.31 at December 31, 2021. During the year ended December 31,
2022, increasing interest rates resulted in a decline in the fair
value of available for sale investment securities. This impact is
reflected in the decline in accumulated other comprehensive income
(AOCI) to $(12,105,000) at December 31, 2022, compared to
$(945,000) at December 31, 2021. Excluding AOCI, book value
increased to $30.66 at December 31, 2022, compared to $25.96 at
December 31, 2021.
AOCI has no effect on Cornerstone Community Bank’s (the Bank)
regulatory capital ratios as the Bank opted to exclude it from
regulatory capital calculations. At December 31, 2022, the Bank’s
estimated total risk-based capital ratio was 12.61% and its tier 1
capital to risk weighted assets ratio was 11.52%. 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)
12/31/22 09/30/22 06/30/22 03/31/22
12/31/21 ASSETS Cash and due from banks
$
5,628
$
6,011
$
5,230
$
4,175
$
4,552
Federal funds sold
123
122
121
121
121
Interest-bearing deposits
25,212
57,618
48,277
73,629
77,933
Investment securities
94,435
95,511
102,692
99,748
108,253
Loans held for sale
-
-
-
-
-
Loans, net of unearned income
420,415
400,480
399,156
375,369
387,374
Allowance for loan losses
(5,159
)
(5,172
)
(5,132
)
(5,077
)
(5,059
)
Loans, net
415,256
395,308
394,024
370,292
382,315
Premises and equipment, net
14,601
14,671
14,691
14,757
14,784
Other assets
27,326
21,261
20,588
16,930
15,622
Total assets
$
582,581
$
590,502
$
585,623
$
579,652
$
603,580
LIABILITIES Deposits: Demand noninterest-bearing
$
126,946
$
129,236
$
130,249
$
131,136
$
174,282
Demand interest-bearing
136,655
138,630
131,623
126,331
131,368
Money market and savings
182,787
201,316
201,106
196,653
163,946
Time deposits
88,430
76,121
76,576
78,167
78,111
Total deposits
534,818
545,303
539,554
532,287
547,707
Borrowings and other obligations
-
-
-
-
5,000
Subordinated debentures
11,744
11,738
11,732
11,726
11,720
Interest payable and other liabilities
2,755
2,892
2,631
1,899
2,134
Total liabilities
549,317
559,933
553,917
545,912
566,561
SHAREHOLDERS' EQUITY Common stock
15,075
14,964
15,079
15,009
14,913
Retained Earnings
30,294
28,368
26,432
24,726
23,051
Accumulated other comprehensive income (loss)
(12,105
)
(12,763
)
(9,805
)
(5,995
)
(945
)
Total shareholders' equity
33,264
30,569
31,706
33,740
37,019
Total liabilities and shareholders' equity
$
582,581
$
590,502
$
585,623
$
579,652
$
603,580
Total equity / total assets
5.71
%
5.18
%
5.41
%
5.82
%
6.13
%
Book value per share
$
22.48
$
20.81
$
21.51
$
22.93
$
25.31
Shares outstanding
1,479,862
1,469,091
1,474,091
1,471,591
1,462,591
CORNERSTONE COMMUNITY BANCORP CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) (Dollars in Thousands)
Three months ended Year ended 12/31/22
09/30/22 12/31/21 12/31/22 12/31/21
INTEREST INCOME Loans
$
5,178
$
5,018
$
4,759
$
19,029
$
18,361
Federal funds sold
1
1
1
2
4
Investment securities
676
543
385
2,054
1,124
Other
515
354
60
1,073
180
Total interest income
6,370
5,916
5,205
22,158
19,669
INTEREST EXPENSE Deposits: Interest-bearing demand
214
130
49
454
187
Money market and savings
450
260
109
974
385
Time deposits
401
182
107
821
452
Other
149
148
159
602
652
Total interest expense
1,214
720
424
2,851
1,676
Net interest income
5,156
5,196
4,781
19,307
17,993
Provision for credit losses
-
40
150
113
1,050
Net interest income after provision for credit losses
5,156
5,156
4,631
19,194
16,943
NON-INTEREST INCOME Service charges on deposit
accounts
66
67
65
266
244
Gain on sale of loans
-
-
-
-
1,231
Gain (loss) on sale of other real estate owned
-
-
-
-
-
Gain (loss) on sale of securities
-
-
-
-
(45
)
Other non-interest income
199
198
274
794
815
Total non-interest income
265
265
339
1,060
2,245
OPERATING EXPENSES Salaries and benefits
1,567
1,408
1,175
5,340
3,870
Premises and fixed assets
242
227
166
854
649
Other
941
1,064
868
3,924
3,548
Total operating expenses
2,750
2,699
2,209
10,118
8,067
Income before income taxes
2,671
2,722
2,761
10,136
11,121
Income taxes
745
786
794
2,893
3,206
NET INCOME
$
1,926
$
1,936
$
1,967
$
7,243
$
7,915
EARNINGS PER SHARE Basic earnings per share
$
1.31
$
1.31
$
1.35
$
4.92
$
5.44
Diluted earnings per share
$
1.27
$
1.27
$
1.29
$
4.74
$
5.25
Average common shares outstanding
1,474,754
1,473,276
1,459,667
1,472,381
1,454,507
Average common and equivalent shares outstanding
1,520,935
1,523,830
1,518,908
1,526,734
1,507,561
PERFORMANCE MEASURES Return on average assets
1.32
%
1.30
%
1.41
%
1.24
%
1.46
%
Return on average equity
24.23
%
23.11
%
21.63
%
21.36
%
23.35
%
Tax-equivalent net interest margin
3.61
%
3.60
%
3.59
%
3.43
%
3.50
%
Efficiency ratio
50.73
%
49.42
%
43.14
%
49.68
%
39.86
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230124006133/en/
Matthew B. Moseley President & CEO 530.222.1460
Patrick E. Phelan Chief Financial Officer 530.222.1460