Cornerstone Community Bancorp Reports Financial Results For the First Quarter Ended March 31, 2016

RED BLUFF, Calif.--()--Cornerstone Community Bancorp, (OTC Pink: CRSB), announced today its financial results for the first quarter ended March 31, 2016.

The Company reported net income of $203,000 for the three months ended March 31, 2016 compared to net income of $226,000 for the same period last year. Diluted earnings per share for the three months ended March 31, 2016 were $0.15 compared to $0.17 for the same period last year.

The return on average assets for the three months ended March 31, 2016 was 0.46% and the return on average equity was 5.44%.

President and CEO, Jeff Finck, stated, “Loan totals continued to increase at a solid pace year-over-year and 2016 deposit growth is off to a good start with a $9.2 million increase since the beginning of the year.”

Net Interest Income

Net interest income was $1,538,000 for the quarter ended March 31, 2016 compared to $1,513,000 for the same quarter one year earlier.

Provision for credit losses

There was no provision for credit losses for the quarters ended March 31, 2016 and March 31, 2015.

Non-Interest Income

Non-interest income for the quarter ended March 31, 2016 was $115,000 compared to $178,000 for the quarter ended March 31, 2015.

Non-Interest Expense

Non-interest expense was $1,309,000 for the quarter ended March 31, 2016 compared to $1,307,000 for the same period one year earlier.

Balance Sheet

The Company had total assets at March 31, 2016 of $180.8 million, compared to $167.2 million at March 31, 2015.

Total loans outstanding at March 31, 2016, were $139.7 million compared to $127.0 million at March 31, 2015, representing an increase of $12.7 million, or 10%.

Total deposits were $145.3 million at March 31, 2016 compared to total deposits of $147.7 million at March 31, 2015.

Credit Quality

The allowance for loan losses was $1,620,000, or 1.16% of loans, net of unearned income at March 31, 2016, compared to $1,608,000, or 1.27% of loans, net of unearned income at March 31, 2015. Nonperforming assets at March 31, 2016 were $373,000 compared to $423,000 at March 31, 2015.

Capital

At March 31, 2016, shareholders’ equity totaled $14.9 million compared to $14.0 million at March 31, 2015.

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)
 
 
 
  03/31/16         12/31/15         09/30/15         06/30/15         03/31/15
 
ASSETS
Cash and due from banks $ 3,007 $ 3,206 $ 1,575 $ 3,172 $ 3,982
Federal funds sold 20 - - - -
Interest-bearing deposits 18,009 15,877 15,647 16,364 21,281
Investment securities 14,645 9,640 9,906 10,097 10,511
Loans held for sale - - - 3,309 -
Loans, net of unearned income 139,660 137,057 137,725 133,744 127,045
Allowance for loan losses   (1,620)         (1,619)         (1,613)         (1,612)         (1,608)
Loans, net 138,040 135,438 136,112 132,132 125,437
Premises and equipment, net 1,051 1,013 995 793 851
Other assets   6,029         6,208         8,092         5,313         5,157
Total assets $ 180,801       $ 171,382       $ 172,327       $ 171,180       $ 167,219
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 23,678 $ 22,269 $ 23,797 $ 29,223 $ 29,852
Demand interest-bearing 20,843 20,605 20,143 17,667 20,607
Money market and savings 53,240 45,256 43,381 39,605 54,169
Time deposits of less than $100,000 14,334 15,092 15,125 16,277 16,239
Time deposits of $100,000 or more   33,219         32,889         34,735         33,895         26,798
Total deposits 145,314 136,111 137,181 136,667 147,665
Federal Home Loan Bank borrowings 15,000 15,000 15,000 15,000 -
Subordinated debentures 4,876 4,874 4,874 4,872 4,870
Interest payable and other liabilities   697         734         736         512         668
Total liabilities   165,887         156,719         157,791         157,051         153,203
 
SHAREHOLDERS' EQUITY
Common stock 13,280 13,257 13,234 13,209 13,185
Retained Earnings 1,510 1,307 1,162 803 615
Accumulated other comprehensive income (loss)   124         99         140         117         216
Total shareholders' equity   14,914         14,663         14,536         14,129         14,016
Total liabilities and shareholders' equity $ 180,801       $ 171,382       $ 172,327       $ 171,180       $ 167,219
 
Total equity / total assets 8.25% 8.56% 8.44% 8.25% 8.38%
Book value per share $ 11.91 $ 11.71 $ 11.61 $ 11.29 $ 11.19
           
 
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
               
 
 
Three months ended
  03/31/16           12/31/15           03/31/15  
 
INTEREST INCOME
Loans $ 1,750 $ 1,754 $ 1,587
Federal funds sold - - -
Investment securities 75 74 77
Other   42           33           18  
Total interest income   1,867           1,861           1,682  
 
INTEREST EXPENSE
Deposits:
Interest-bearing demand 10 11 6
Money market and savings 69 62 35
Time deposits 115 115 87
Other   135           140           41  
Total interest expense   329           328           169  
 
Net interest income 1,538 1,533 1,513
Provision for credit losses   -           -           -  
Net interest income after provision
for credit losses   1,538           1,533           1,513  
 
NON-INTEREST INCOME
Service charges on deposit accounts 36 33 22
Gain on sale of SBA loans - - -
Gain (loss) on sale of other real estate owned - (100 ) -
Gain (loss) on sale of securities - - -
Other non-interest income   79           76           156  
Total non-interest income   115           9           178  
 
OPERATING EXPENSES
Salaries and benefits 702 704 733
Premises and fixed assets 141 139 140
Other   466           455           434  
Total operating expenses   1,309           1,298           1,307  
 
Income before income taxes 344 244 384
Income taxes 141 100 158
                 
NET INCOME $ 203         $ 144         $ 226  
 
EARNINGS PER SHARE
Basic earnings per share $ 0.16         $ 0.12         $ 0.18  
Diluted earnings per share $ 0.15         $ 0.11         $ 0.17  
Average common shares outstanding   1,252,000           1,252,000           1,252,000  
Average common and equivalent
shares outstanding   1,345,145           1,347,958           1,342,315  
 
PERFORMANCE MEASURES
Return on average assets 0.46 % 0.33 % 0.58 %
Return on average equity 5.44 % 3.90 % 6.49 %
Net interest margin 3.65 % 3.66 % 4.11 %
Efficiency ratio 79.19 % 84.18 % 77.29 %

Contacts

Cornerstone Community Bancorp
Jeffrey P. Finck, 530-222-1460
President & CEO
or
Patrick E. Phelan, 530-222-1460
Chief Financial Officer

Contacts

Cornerstone Community Bancorp
Jeffrey P. Finck, 530-222-1460
President & CEO
or
Patrick E. Phelan, 530-222-1460
Chief Financial Officer