RED BLUFF, Calif.--(BUSINESS WIRE)--Cornerstone Community Bancorp, (OTC Pink: CRSB), announced today its financial results for the fourth quarter and full year ended December 31, 2015.
The Company reported net income of $144,000 for the three months ended December 31, 2015 compared to net income of $229,000 for the same period last year. Diluted earnings per share for the three months ended December 31, 2015 were $0.11 compared to $0.17 for the same period last year.
Net income for the year ended December 31, 2015 was $918,000, or $0.68 per diluted share compared to net income of $754,000, or $0.57 per diluted share, for the year ended December 31, 2014.
The return on average assets for the three months ended December 31, 2015 was 0.33% and the return on average equity was 3.90%. For the year ended December 31, 2015, the return on average assets was 0.54% and the return on average equity was 6.41%.
President and CEO, Jeff Finck, stated, “In 2015, we formed the bank holding company and raised additional capital for future growth. Our book value increased by 7% to $11.71 per share and our diluted earnings per share increased by 19% to $0.68 per share. The capital raise and our 2015 operating performance set the stage for continued solid growth heading into 2016.”
Net Interest Income
Net interest income was $1,533,000 for the quarter ended December 31, 2015 compared to $1,529,000 for the same quarter one year earlier. For the year ended December 31, 2015, net interest income was $6,076,000 compared to $5,764,000 for the year ended December 31, 2014 representing an increase of $312,000, or 5%.
Provision for credit losses
There was no provision for credit losses for the quarters ended December 31, 2015 and December 31, 2014. There was no provision for credit losses for the year ended December 31, 2015 compared to $224,000 for the year ended December 31, 2014.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2015 was $9,000 compared to $162,000 for the quarter ended December 31, 2014. For the year ended December 31, 2015, non-interest income was $900,000 compared to $683,000 for the year ended December 31, 2014.
Non-Interest Expense
Non-interest expense was $1,298,000 for the quarter ended December 31, 2015 compared to $1,291,000 for the same period one year earlier. For the year ended December 31, 2015, non-interest expense was $5,417,000 compared to $4,950,000 for the same period last year.
Balance Sheet
The Company had total assets at December 31, 2015 of $171.1 million, compared to $149.1 million at December 31, 2014, representing growth of $22.0 million, or 15%.
Total loans outstanding at December 31, 2015, were $137.1 million compared to $124.5 million at December 31, 2014, representing an increase of $12.6 million, or 10%.
Total deposits were $136.1 million at December 31, 2015 compared to total deposits of $134.9 million at December 31, 2014, representing an increase of $1.2 million, or 1%.
Credit Quality
The allowance for loan losses was $1,619,000, or 1.18% of loans, net of unearned income at December 31, 2015, compared to $1,605,000, or 1.29% of loans, net of unearned income at December 31, 2014. Nonperforming assets at December 31, 2015 were $381,000 compared to $34,000 at December 31, 2014.
The bank recognized $14,804 in net loan recoveries during the year ended December 31, 2015.
Capital
At December 31, 2015, shareholders’ equity totaled $14.7 million compared to $13.7 million at December 31, 2014.
About Cornerstone Community Bancorp
Cornerstone Community Bancorp, a bank holding company headquartered in Red Bluff, California, serves the Red Bluff and Redding communities through its wholly-owned subsidiary, Cornerstone Community Bank with a headquarters office in Red Bluff and a banking office in Redding. 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 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 Bancorp 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 Bancorp’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 Bancorp is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than Cornerstone Community Bancorp; 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 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) | ||||||||||||||||||||
| 12/31/15 | 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 3,207 | $ | 1,575 | $ | 3,172 | $ | 3,982 | $ | 2,750 | ||||||||||
| Federal funds sold | - | - | - | - | - | |||||||||||||||
| Interest-bearing deposits | 15,877 | 15,647 | 16,364 | 21,281 | 6,070 | |||||||||||||||
| Investment securities | 9,640 | 9,906 | 10,097 | 10,511 | 11,149 | |||||||||||||||
| Loans held for sale | - | - | 3,309 | - | - | |||||||||||||||
| Loans, net of unearned income | 137,057 | 137,725 | 133,744 | 127,045 | 124,517 | |||||||||||||||
| Allowance for loan losses | (1,619 | ) | (1,613 | ) | (1,612 | ) | (1,608 | ) | (1,605 | ) | ||||||||||
| Loans, net | 135,438 | 136,112 | 132,132 | 125,437 | 122,912 | |||||||||||||||
| Premises and equipment, net | 1,013 | 995 | 793 | 851 | 909 | |||||||||||||||
| Other assets | 5,903 | 8,092 | 5,313 | 5,157 | 5,295 | |||||||||||||||
| Total assets | $ | 171,078 | $ | 172,327 | $ | 171,180 | $ | 167,219 | $ | 149,085 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand noninterest-bearing | $ | 22,269 | $ | 23,797 | $ | 29,223 | $ | 29,852 | $ | 24,702 | ||||||||||
| Demand interest-bearing | 20,605 | 20,143 | 17,667 | 20,607 | 21,566 | |||||||||||||||
| Money market and savings | 45,256 | 43,381 | 39,605 | 54,169 | 42,114 | |||||||||||||||
| Time deposits of less than $100,000 | 15,092 | 15,125 | 16,277 | 16,239 | 17,939 | |||||||||||||||
| Time deposits of $100,000 or more | 32,889 | 34,735 | 33,895 | 26,798 | 28,606 | |||||||||||||||
| Total deposits | 136,111 | 137,181 | 136,667 | 147,665 | 134,927 | |||||||||||||||
| Federal Home Loan Bank borrowings | 15,000 | 15,000 | 15,000 | - | - | |||||||||||||||
| Subordinated debentures | 4,874 | 4,874 | 4,872 | 4,870 | - | |||||||||||||||
| Interest payable and other liabilities | 430 | 736 | 512 | 668 | 456 | |||||||||||||||
| Total liabilities | 156,415 | 157,791 | 157,051 | 153,203 | 135,383 | |||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock | 13,257 | 13,234 | 13,209 | 13,185 | 13,161 | |||||||||||||||
| Retained Earnings | 1,307 | 1,162 | 803 | 615 | 389 | |||||||||||||||
| Accumulated other comprehensive income (loss) | 99 | 140 | 117 | 216 | 152 | |||||||||||||||
| Total shareholders' equity | 14,663 | 14,536 | 14,129 | 14,016 | 13,702 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 171,078 | $ | 172,327 | $ | 171,180 | $ | 167,219 | $ | 149,085 | ||||||||||
| Total equity / total assets | 8.57 | % | 8.44 | % | 8.25 | % | 8.38 | % | 9.19 | % | ||||||||||
| Book value per share | $ | 11.71 | $ | 11.61 | $ | 11.29 | $ | 11.19 | $ | 10.94 | ||||||||||
| CORNERSTONE COMMUNITY BANCORP | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||
| Three months ended | Year ended | |||||||||||||||||||||
| 12/31/15 | 09/30/15 | 12/31/14 | 12/31/15 | 12/31/14 | ||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||
| Loans | $ | 1,754 | $ | 1,754 | $ | 1,552 | $ | 6,766 | $ | 5,789 | ||||||||||||
| Federal funds sold | - | - | - | - | - | |||||||||||||||||
| Investment securities | 74 | 73 | 83 | 300 | 411 | |||||||||||||||||
| Other | 33 | 35 | 17 | 140 | 56 | |||||||||||||||||
| Total interest income | 1,861 | 1,862 | 1,652 | 7,206 | 6,256 | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Interest-bearing demand | 11 | 8 | 5 | 29 | 20 | |||||||||||||||||
| Money market and savings | 62 | 55 | 27 | 196 | 163 | |||||||||||||||||
| Time deposits | 115 | 115 | 91 | 418 | 307 | |||||||||||||||||
| Other | 140 | 156 | - | 487 | 2 | |||||||||||||||||
| Total interest expense | 328 | 334 | 123 | 1,130 | 492 | |||||||||||||||||
| Net interest income | 1,533 | 1,528 | 1,529 | 6,076 | 5,764 | |||||||||||||||||
| Provision for credit losses | - | - | - | - | 224 | |||||||||||||||||
|
Net interest income after provision for credit losses |
1,533 | 1,528 | 1,529 | 6,076 | 5,540 | |||||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||
| Service charges on deposit accounts | 33 | 38 | 32 | 137 | 108 | |||||||||||||||||
| Gain on sale of SBA loans | - | 321 | - | 321 | - | |||||||||||||||||
| Gain (loss) on sale of other real estate owned | (100 | ) | - | - | (100 | ) | (23 | ) | ||||||||||||||
| Gain (loss) on sale of securities | - | - | - | - | 101 | |||||||||||||||||
| Other non-interest income | 76 | 166 | 130 | 542 | 497 | |||||||||||||||||
| Total non-interest income | 9 | 525 | 162 | 900 | 683 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||
| Salaries and benefits | 704 | 753 | 715 | 2,904 | 2,644 | |||||||||||||||||
| Premises and fixed assets | 139 | 143 | 138 | 561 | 565 | |||||||||||||||||
| Other | 455 | 546 | 438 | 1,952 | 1,741 | |||||||||||||||||
| Total operating expenses | 1,298 | 1,442 | 1,291 | 5,417 | 4,950 | |||||||||||||||||
| Income before income taxes | 244 | 611 | 400 | 1,559 | 1,273 | |||||||||||||||||
| Income taxes | 100 | 251 | 171 | 641 | 519 | |||||||||||||||||
| NET INCOME | $ | 144 | $ | 360 | $ | 229 | $ | 918 | $ | 754 | ||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||||||
| Basic earnings per share | $ | 0.12 | $ | 0.29 | $ | 0.18 | $ | 0.73 | $ | 0.62 | ||||||||||||
| Diluted earnings per share | $ | 0.11 | $ | 0.27 | $ | 0.17 | $ | 0.68 | $ | 0.57 | ||||||||||||
| Average common shares outstanding | 1,252,000 | 1,252,000 | 1,247,652 | 1,252,000 | 1,222,192 | |||||||||||||||||
|
Average common and equivalent shares outstanding |
1,347,958 | 1,340,377 | 1,339,125 | 1,343,211 | 1,325,511 | |||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||
| Return on average assets | 0.33 | % | 0.83 | % | 0.61 | % | 0.54 | % | 0.54 | % | ||||||||||||
| Return on average equity | 3.90 | % | 9.96 | % | 6.70 | % | 6.41 | % | 5.72 | % | ||||||||||||
| Net interest margin | 3.66 | % | 3.65 | % | 4.26 | % | 3.74 | % | 4.32 | % | ||||||||||||
| Efficiency ratio | 84.18 | % | 70.24 | % | 76.35 | % | 77.65 | % | 76.78 | % | ||||||||||||