RED BLUFF, Calif.--(BUSINESS WIRE)--Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter ended December 31, 2019.
The Company reported net income of $884,000 for the three months ended December 31, 2019 compared to net income of $884,000 for the same period last year. Diluted earnings per share were $0.58 for the three months ended December 31, 2019 compared to $0.57 for the same period last year.
The return on average assets for the three months ended December 31, 2019 was 1.16% and the return on average equity was 13.87%. The net interest margin was 4.03% for the three months ended December 31, 2019 compared to 4.26% for the same period last year and the efficiency ratio declined to 58.78% for the three months ended December 31, 2019 compared to 60.76% for the same period last year.
For the year ended December 31, 2019, the Company reported net income of $3,452,000 compared to net income of $2,776,000 for the same period last year. Diluted earnings per share were $2.27 for the year ended December 31, 2019 compared to $1.84 for the same period last year.
The return on average assets for the year ended December 31, 2019 was 1.22% and the return on average equity was 14.33%.
President and CEO, Jeff Finck, stated, “The Company experienced solid loan, deposit and earnings growth in 2019. As we begin the new decade, we look forward to continuing to deliver outstanding service to our customers and moving local dreams forward.”
Net Interest Income
Net interest income increased to $2,834,000 for the quarter ended December 31, 2019 compared to $2,599,000 for the same quarter last year. For the year ended December 31, 2019, net interest income increased to $10,971,000 compared to $9,660,000 for the same period last year.
Provision for credit losses
The Company recorded a $100,000 provision for credit losses for the quarter ended December 31, 2019 compared to $130,000 for the same quarter last year. For the year ended December 31, 2019, the Company recorded a $340,000 provision for credit losses compared to $309,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2019 was $201,000 compared to $161,000 for the quarter ended December 31, 2018. For the year ended December 31, 2019, non-interest income was $1,206,000 compared to $695,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $1,784,000 for the quarter ended December 31, 2019 compared to $1,677,000 for the same period last year. For the year ended December 31, 2019, non-interest expense was $7,071,000 compared to $6,459,000 for the same period last year.
Income Taxes
Fourth quarter 2018 income tax expense was impacted by tax benefits from the exercise of stock options.
Balance Sheet
The Company had total assets at December 31, 2019 of $288.4 million compared to $266.4 million at December 31, 2018.
Total loans, net of unearned income at December 31, 2019 were $241.7 million compared to $209.3 million at December 31, 2018.
Total deposits were $253.4 million at December 31, 2019 compared to total deposits of $232.3 million at December 31, 2018.
Credit Quality
The allowance for loan losses was $2,409,000, or 1.00% of loans, net of unearned income at December 31, 2019, compared to $2,152,000, or 1.03% of loans, net of unearned income at December 31, 2018. There were no nonperforming assets at December 31, 2019 and December 31, 2018.
Capital
At December 31, 2019, shareholders’ equity totaled $25.8 million compared to $22.1 million at December 31, 2018. Book value per share was $17.79 per share at December 31, 2019 compared to $15.56 per share at December 31, 2018. During the second quarter of 2018, the Company completed a private placement of $2.1 million of its common stock. In the offering, the Company issued 119,285 shares of its common stock at a purchase price of $17.5 per share.
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 two banking offices 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) | ||||||||||||||||||||
| 12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | 12/31/18 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ |
6,038 |
|
$ |
9,271 |
|
$ |
11,122 |
|
$ |
5,744 |
|
$ |
7,002 |
|
|||||
| Federal funds sold |
|
4,575 |
|
|
21,117 |
|
|
13,520 |
|
|
8,836 |
|
|
20 |
|
|||||
| Interest-bearing deposits |
|
2,825 |
|
|
15,779 |
|
|
8,166 |
|
|
11,186 |
|
|
24,730 |
|
|||||
| Investment securities |
|
13,355 |
|
|
5,577 |
|
|
7,010 |
|
|
7,720 |
|
|
9,284 |
|
|||||
| Loans held for sale |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Loans, net of unearned income |
|
241,662 |
|
|
233,342 |
|
|
222,199 |
|
|
214,476 |
|
|
209,330 |
|
|||||
| Allowance for loan losses |
|
(2,409 |
) |
|
(2,317 |
) |
|
(2,345 |
) |
|
(2,235 |
) |
|
(2,152 |
) |
|||||
| Loans, net |
|
239,253 |
|
|
231,025 |
|
|
219,854 |
|
|
212,241 |
|
|
207,178 |
|
|||||
| Premises and equipment, net |
|
11,216 |
|
|
11,297 |
|
|
11,316 |
|
|
10,154 |
|
|
8,740 |
|
|||||
| Other assets |
|
11,093 |
|
|
10,428 |
|
|
18,359 |
|
|
10,151 |
|
|
9,407 |
|
|||||
| Total assets | $ |
288,355 |
|
$ |
304,494 |
|
$ |
289,347 |
|
$ |
266,032 |
|
$ |
266,361 |
|
|||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand noninterest-bearing | $ |
52,352 |
|
$ |
59,432 |
|
$ |
54,439 |
|
$ |
50,564 |
|
$ |
50,862 |
|
|||||
| Demand interest-bearing |
|
52,058 |
|
|
52,024 |
|
|
48,839 |
|
|
38,434 |
|
|
37,875 |
|
|||||
| Money market and savings |
|
74,560 |
|
|
81,926 |
|
|
79,614 |
|
|
74,628 |
|
|
75,015 |
|
|||||
| Time deposits of less than $100,000 |
|
18,395 |
|
|
18,957 |
|
|
19,331 |
|
|
15,099 |
|
|
15,778 |
|
|||||
| Time deposits of $100,000 or more |
|
56,016 |
|
|
57,854 |
|
|
53,940 |
|
|
52,250 |
|
|
52,763 |
|
|||||
| Total deposits |
|
253,381 |
|
|
270,193 |
|
|
256,163 |
|
|
230,975 |
|
|
232,293 |
|
|||||
| Federal Home Loan Bank borrowings |
|
3,000 |
|
|
3,000 |
|
|
3,000 |
|
|
6,000 |
|
|
6,000 |
|
|||||
| Subordinated debentures |
|
4,914 |
|
|
4,911 |
|
|
4,908 |
|
|
4,906 |
|
|
4,903 |
|
|||||
| Interest payable and other liabilities |
|
1,235 |
|
|
1,543 |
|
|
1,325 |
|
|
1,190 |
|
|
1,100 |
|
|||||
| Total liabilities |
|
262,530 |
|
|
279,647 |
|
|
265,396 |
|
|
243,071 |
|
|
244,296 |
|
|||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock |
|
15,264 |
|
|
15,146 |
|
|
15,122 |
|
|
15,088 |
|
|
15,001 |
|
|||||
| Retained Earnings |
|
10,510 |
|
|
9,626 |
|
|
8,753 |
|
|
7,842 |
|
|
7,058 |
|
|||||
| Accumulated other comprehensive income (loss) |
|
51 |
|
|
75 |
|
|
76 |
|
|
31 |
|
|
6 |
|
|||||
| Total shareholders' equity |
|
25,825 |
|
|
24,847 |
|
|
23,951 |
|
|
22,961 |
|
|
22,065 |
|
|||||
| Total liabilities and shareholders' equity | $ |
288,355 |
|
$ |
304,494 |
|
$ |
289,347 |
|
$ |
266,032 |
|
$ |
266,361 |
|
|||||
| Total equity / total assets |
|
8.96 |
% |
|
8.16 |
% |
|
8.28 |
% |
|
8.63 |
% |
|
8.28 |
% |
|||||
| Book value per share | $ |
17.79 |
|
$ |
17.34 |
|
$ |
16.71 |
|
$ |
16.02 |
|
$ |
15.56 |
|
|||||
| Shares outstanding |
|
1,452,041 |
|
|
1,433,041 |
|
|
1,433,041 |
|
|
1,433,041 |
|
|
1,418,041 |
|
|||||
| CORNERSTONE COMMUNITY BANCORP | |||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||||
| Three months ended | Year ended | ||||||||||||||||||||||||
| 12/31/19 | 09/30/19 | 12/31/18 | 12/31/19 | 12/31/18 | |||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||||
| Loans | $ |
|
3,349 |
|
$ |
|
3,376 |
|
$ |
|
2,966 |
|
$ |
|
13,065 |
|
$ |
|
10,988 |
|
|||||
| Federal funds sold |
|
40 |
|
|
61 |
|
|
- |
|
|
175 |
|
|
- |
|
||||||||||
| Investment securities |
|
65 |
|
|
55 |
|
|
70 |
|
|
238 |
|
|
299 |
|
||||||||||
| Other |
|
130 |
|
|
113 |
|
|
198 |
|
|
444 |
|
|
565 |
|
||||||||||
| Total interest income |
|
3,584 |
|
|
3,605 |
|
|
3,234 |
|
|
13,922 |
|
|
11,852 |
|
||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Interest-bearing demand |
|
50 |
|
|
40 |
|
|
22 |
|
|
139 |
|
|
70 |
|
||||||||||
| Money market and savings |
|
241 |
|
|
243 |
|
|
177 |
|
|
906 |
|
|
614 |
|
||||||||||
| Time deposits |
|
351 |
|
|
397 |
|
|
317 |
|
|
1,465 |
|
|
1,026 |
|
||||||||||
| Other |
|
108 |
|
|
108 |
|
|
119 |
|
|
441 |
|
|
482 |
|
||||||||||
| Total interest expense |
|
750 |
|
|
788 |
|
|
635 |
|
|
2,951 |
|
|
2,192 |
|
||||||||||
| Net interest income |
|
2,834 |
|
|
2,817 |
|
|
2,599 |
|
|
10,971 |
|
|
9,660 |
|
||||||||||
| Provision for credit losses |
|
100 |
|
|
40 |
|
|
130 |
|
|
340 |
|
|
309 |
|
||||||||||
| Net interest income after provision for credit losses |
|
2,734 |
|
|
2,777 |
|
|
2,469 |
|
|
10,631 |
|
|
9,351 |
|
||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||||||
| Service charges on deposit accounts |
|
61 |
|
|
64 |
|
|
59 |
|
|
255 |
|
|
223 |
|
||||||||||
| Gain on sale of loans |
|
- |
|
|
- |
|
|
- |
|
|
417 |
|
|
74 |
|
||||||||||
| Gain (loss) on sale of other real estate owned |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
| Gain (loss) on sale of securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
| Other non-interest income |
|
140 |
|
|
140 |
|
|
102 |
|
|
534 |
|
|
398 |
|
||||||||||
| Total non-interest income |
|
201 |
|
|
204 |
|
|
161 |
|
|
1,206 |
|
|
695 |
|
||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||||
| Salaries and benefits |
|
887 |
|
|
907 |
|
|
887 |
|
|
3,636 |
|
|
3,442 |
|
||||||||||
| Premises and fixed assets |
|
239 |
|
|
228 |
|
|
173 |
|
|
859 |
|
|
627 |
|
||||||||||
| Other |
|
658 |
|
|
621 |
|
|
617 |
|
|
2,576 |
|
|
2,390 |
|
||||||||||
| Total operating expenses |
|
1,784 |
|
|
1,756 |
|
|
1,677 |
|
|
7,071 |
|
|
6,459 |
|
||||||||||
| Income before income taxes |
|
1,151 |
|
|
1,225 |
|
|
953 |
|
|
4,766 |
|
|
3,587 |
|
||||||||||
| Income taxes |
|
267 |
|
|
353 |
|
|
69 |
|
|
1,314 |
|
|
811 |
|
||||||||||
| NET INCOME | $ |
|
884 |
|
$ |
|
872 |
|
$ |
|
884 |
|
$ |
|
3,452 |
|
$ |
|
2,776 |
|
|||||
| EARNINGS PER SHARE | |||||||||||||||||||||||||
| Basic earnings per share | $ |
|
0.61 |
|
$ |
|
0.61 |
|
$ |
|
0.63 |
|
$ |
|
2.41 |
|
$ |
|
2.03 |
|
|||||
| Diluted earnings per share | $ |
|
0.58 |
|
$ |
|
0.57 |
|
$ |
|
0.57 |
|
$ |
|
2.27 |
|
$ |
|
1.84 |
|
|||||
| Average common shares outstanding |
|
1,442,639 |
|
|
1,433,041 |
|
|
1,407,785 |
|
|
1,435,255 |
|
|
1,365,944 |
|
||||||||||
| Average common and equivalent shares outstanding |
|
1,527,238 |
|
|
1,519,531 |
|
|
1,541,133 |
|
|
1,521,093 |
|
|
1,508,684 |
|
||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||||||||
| Return on average assets |
|
1.16 |
% |
|
1.18 |
% |
|
1.36 |
% |
|
1.22 |
% |
|
1.13 |
% |
||||||||||
| Return on average equity |
|
13.87 |
% |
|
14.18 |
% |
|
15.99 |
% |
|
14.33 |
% |
|
13.51 |
% |
||||||||||
| Net interest margin |
|
4.03 |
% |
|
4.15 |
% |
|
4.26 |
% |
|
4.21 |
% |
|
4.18 |
% |
||||||||||
| Efficiency ratio |
|
58.78 |
% |
|
58.13 |
% |
|
60.76 |
% |
|
58.07 |
% |
|
62.38 |
% |
||||||||||