RED BLUFF, Calif.--(BUSINESS WIRE)--Cornerstone Community Bank, (OTCBB: CRSB), announced today its financial results for the first quarter ended March 31, 2014.
The Bank reported net income of $131,000 for the three months ended March 31, 2014 compared to net income of $240,000 for the same period last year. The Bank became fully taxable in the first quarter of 2014 which was the primary reason for the decline in net income. Diluted earnings per share for the three months ended March 31, 2014 were $0.10 compared to $0.19 for the same period last year.
The return on average assets for the three months ended March 31, 2014 was 0.41% compared to 0.84% for the same period last year. The return on average equity was 4.11% for the three months ended March 31, 2014 compared to 8.02% for the same period last year.
President and CEO, Jeff Finck, stated, “The momentum generated in 2013 continued into the first quarter of 2014 with 25% growth in total loans and 10% growth in total assets when compared to March 31, 2013.”
Net Interest Income
Net interest income for the three months ended March 31, 2014 was $1,319,000 compared to $1,207,000 for the same period last year. The net interest margin was 4.42% compared to 4.49% for the same period last year.
Provision for Credit Losses
The provision for credit losses for the three months ended March 31, 2014 was $24,000 compared to $85,000 for the same period last year.
The Bank’s non-interest income for the quarter ended March 31, 2014 was $110,000 compared to $139,000 for the quarter ended March 31, 2013.
Non-interest expense was $1,192,000 for the quarter ended March 31, 2014 compared to $1,021,000 for the quarter ended March 31, 2013.
Provision for Income Tax Expense
The provision for income tax expense for the three months ended March 31, 2014 was $82,000. There was no provision for income tax expense for the three months ended March 31, 2013. The Bank became fully taxable in the first quarter of 2014.
The Bank had total assets at March 31, 2014 of $126.8 million, compared to $115.3 million at March 31, 2013, representing growth of $11.5 million, or 10%.
Total loans outstanding, including loans held for sale, at March 31, 2014, were $103.1 million compared to $82.4 million at March 31, 2013, representing an increase of $20.7 million, or 25%.
Total deposits were $111.6 million at March 31, 2014 compared to total deposits of $103.0 million at March 31, 2013, representing an increase of $8.6 million, or 8.4%.
The allowance for loan losses was $1,415,000, or 1.42% of loans, net of unearned income at March 31, 2014, compared to $1,411,000, or 1.75% of loans, net of unearned income at March 31, 2013. Nonperforming assets at March 31, 2014 were $202,000 compared to $175,000 at March 31, 2013. The bank recognized $8,000 in net loan charge-offs during the quarter ended March 31, 2014.
At March 31, 2014, shareholders’ equity totaled $12.8 million compared to $12.1 million at March 31, 2013. At March 31, 2014, the total risk-based capital ratio, tier one capital ratio, and leverage ratio was 12.60%, 11.35% and 9.81%, respectively, all exceeding the regulatory standards for “well-capitalized” institutions of 10.00%, 6.00% and 5.00%, respectively.
About Cornerstone Community Bank
Cornerstone Community Bank is a California state-chartered bank with its headquarters office in Red Bluff and a branch office in Redding. The Bank provides commercial banking services, including a wide variety of deposit products and real estate, construction, commercial and consumer loans to small businesses, professionals and individuals. Additional information about the Bank is available on its website at www.bankcornerstone.com
This press release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of Cornerstone Community Bank and on information available to management at the time these statements were made. There are a number of factors, many of which are beyond Cornerstone Community Bank’s control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which Cornerstone Community Bank is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than Cornerstone Community Bank; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, Cornerstone Community Bank does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
|CORNERSTONE COMMUNITY BANK|
|CONSOLIDATED BALANCE SHEETS (UNAUDITED)|
|(Dollars in Thousands)|
|Cash and due from banks||$||3,203||$||2,025||$||2,717||$||2,950||$||4,009|
|Federal funds sold||-||-||-||-||-|
|Loans held for sale||3,134||2,726||2,622||2,603||1,961|
|Loans, net of unearned income||99,960||90,173||84,751||82,381||80,467|
|Allowance for loan losses||(1,415||)||(1,399||)||(1,397||)||(1,450||)||(1,411||)|
|Premises and equipment, net||1,049||1,109||1,015||1,041||1,100|
|Money market and savings||41,072||42,814||41,044||40,123||44,996|
|Time deposits of less than $100,000||13,298||11,045||11,118||11,236||8,218|
|Time deposits of $100,000 or more||18,579||18,736||19,416||18,578||17,241|
|Additional paid-in capital||903||877||886||859||830|
|Accumulated other comprehensive income (loss)||107||(95||)||(18||)||128||493|
|Total shareholders' equity||12,833||12,474||12,204||12,029||12,083|
|Total liabilities and shareholders' equity||$||126,848||$||121,874||$||122,770||$||118,279||$||115,342|
|Tier I leverage ratio||9.81||%||10.00||%||9.97||%||10.06||%||10.13||%|
|Tier I risk-based capital ratio||11.35||%||12.02||%||12.36||%||12.45||%||12.81||%|
|Total risk-based capital ratio||12.60||%||13.27||%||13.61||%||13.71||%||14.06||%|
|Total equity / total assets||10.12||%||10.24||%||9.94||%||10.17||%||10.48||%|
|Book value per share||$||10.59||$||10.29||$||10.17||$||10.02||$||10.07|
|CORNERSTONE COMMUNITY BANK|
|CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)|
|(Dollars in Thousands)|
|Three months ended|
|Federal funds sold||-||-||-|
|Total interest income||1,440||1,371||1,356|
|Money market and savings||58||63||74|
|Total interest expense||121||134||149|
|Net interest income||1,319||1,237||1,207|
|Provision for credit losses||24||-||85|
Net interest income after provision for credit losses
|Service charges on deposit accounts||19||22||27|
|Gain on sale of SBA loans||-||-||-|
|Gain on sale of securities||(6||)||-||-|
|Other non-interest income||97||132||112|
|Total non-interest income||110||154||139|
|Salaries and benefits||638||605||554|
|Premises and fixed assets||139||139||126|
|Total operating expenses||1,192||1,123||1,021|
|Income before income taxes||213||268||240|
|EARNINGS PER SHARE|
|Basic earnings per share||$||0.11||$||0.21||$||0.20|
|Diluted earnings per share||$||0.10||$||0.20||$||0.19|
|Average common shares outstanding||1,212,000||1,206,130||1,200,000|
Average common and equivalent shares outstanding
|Return on average assets||0.41||%||0.82||%||0.84||%|
|Return on average equity||4.11||%||8.21||%||8.02||%|
|Net interest margin||4.42||%||4.18||%||4.49||%|