Skip to Content
Business Wire

Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2023

Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2023

Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter and full year ended December 31, 2023.

The Company reported net income of $1,892,000 for the three months ended December 31, 2023 compared to net income of $1,926,000 for the same period last year. Diluted earnings per share were $1.24 for the three months ended December 31, 2023 compared to $1.27 for the same period last year.

The return on average assets for the three months ended December 31, 2023 was 1.19% and the return on average equity was 18.94%. The tax-equivalent net interest margin was 3.55% for the three months ended December 31, 2023 compared to 3.61% for the same period last year.

For the year ended December 31, 2023, the Company reported net income of $7,371,000 compared to net income of $7,243,000 for the same period last year. Diluted earnings per share were $4.84 for the year ended December 31, 2023 compared to $4.74 for the same period last year.

The return on average assets for the year ended December 31, 2023 was 1.18% and the return on average equity was 19.36%.

President and CEO, Matt Moseley stated, “2023 was a challenging year for the financial industry as a whole due to the interest rate environment as well as the failure of a few large regional banks earlier in the year. Cornerstone Community Bank navigated those challenges well due to our community bank business model that focuses on taking care of the needs of our customers and truly valuing them. I am very proud of our team and thankful to the communities we serve for another great year.”

Net Interest Income

Net interest income increased to $5,439,000 for the quarter ended December 31, 2023 compared to $5,156,000 for the same quarter last year. For the year ended December 31, 2023, net interest income increased to $21,805,000 compared to $19,307,000 for the same period last year.

Provision for credit losses on loans

No provision for credit losses on loans was recorded for the three months ended December 31, 2023 nor the three months ended December 31, 2022. For the year ended December 31, 2023, the Company recorded a $530,000 provision for credit losses on loans compared to $113,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2023 was $358,000 compared to $265,000 for the quarter ended December 31, 2022. For the year ended December 31, 2023, noninterest income was $1,389,000 compared to $1,060,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $3,173,000 for the quarter ended December 31, 2023 compared to $2,750,000 for the same period last year. For the year ended December 31, 2023, non-interest expense was $12,449,000 compared to $10,118,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income, at December 31, 2023 were $482.2 million compared to $420.4 million at December 31, 2022.

Total deposits were $564.5 million at December 31, 2023 compared to total deposits of $534.8 million at December 31, 2022.

Credit Quality

The allowance for credit losses on loans was $5,813,000, or 1.21% of loans, net of unearned income, at December 31, 2023, compared to $5,159,000, or 1.23% of loans, net of unearned income, at December 31, 2022. There were no nonperforming assets at December 31, 2023 and December 31, 2022.

Capital

At December 31, 2023, shareholders’ equity totaled $43.2 million compared to $33.3 million at December 31, 2022. At December 31, 2023, the Company's book value per common share was $29.16 compared to $22.48 at December 31, 2022.

At December 31, 2023, the Bank’s estimated total risk-based capital ratio was 12.83% and its tier 1 capital to risk weighted assets ratio was 11.74%. 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)
 
12/31/23 09/30/23 06/30/23 03/31/23 12/31/22
 
ASSETS
Cash and due from banks

$

8,623

 

$

5,492

 

$

8,482

 

$

7,365

 

$

5,628

 

Federal funds sold

 

-

 

 

-

 

 

-

 

 

124

 

 

123

 

Interest-bearing deposits

 

19,694

 

 

23,970

 

 

34,076

 

 

44,706

 

 

25,212

 

Investment securities

 

93,065

 

 

90,086

 

 

93,889

 

 

95,139

 

 

94,435

 

Loans held for sale

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Loans, net of unearned income

 

482,212

 

 

470,060

 

 

447,339

 

 

431,475

 

 

420,415

 

Allowance for loan losses

 

(5,813

)

 

(5,813

)

 

(5,617

)

 

(5,397

)

 

(5,159

)

Loans, net

 

476,399

 

 

464,247

 

 

441,722

 

 

426,079

 

 

415,256

 

Premises and equipment, net

 

14,326

 

 

14,437

 

 

14,492

 

 

14,492

 

 

14,601

 

Other assets

 

30,827

 

 

31,241

 

 

29,724

 

 

28,906

 

 

27,326

 

Total assets

$

642,934

 

$

629,472

 

$

622,385

 

$

616,812

 

$

582,581

 

 
LIABILITIES
Deposits:
Demand noninterest-bearing

$

101,396

 

$

100,791

 

$

109,775

 

$

125,008

 

$

126,946

 

Demand interest-bearing

 

166,221

 

 

190,645

 

 

179,508

 

 

165,203

 

 

136,655

 

Money market and savings

 

174,882

 

 

176,373

 

 

177,976

 

 

180,996

 

 

182,787

 

Time deposits

 

122,035

 

 

107,894

 

 

101,991

 

 

94,542

 

 

88,430

 

Total deposits

 

564,534

 

 

575,703

 

 

569,250

 

 

565,749

 

 

534,818

 

Borrowings and other obligations

 

20,000

 

 

-

 

 

-

 

 

-

 

 

-

 

Subordinated debentures

 

11,769

 

 

11,762

 

 

11,756

 

 

11,750

 

 

11,744

 

Interest payable and other liabilities

 

3,464

 

 

3,512

 

 

3,070

 

 

2,954

 

 

2,755

 

Total liabilities

 

599,767

 

 

590,977

 

 

584,076

 

 

580,452

 

 

549,317

 

 
SHAREHOLDERS' EQUITY
Common stock

 

15,163

 

 

15,130

 

 

15,140

 

 

15,113

 

 

15,075

 

Retained Earnings

 

37,639

 

 

35,747

 

 

33,827

 

 

31,963

 

 

30,294

 

Accumulated other comprehensive income (loss)

 

(9,635

)

 

(12,382

)

 

(10,658

)

 

(10,716

)

 

(12,105

)

Total shareholders' equity

 

43,167

 

 

38,495

 

 

38,309

 

 

36,360

 

 

33,264

 

Total liabilities and shareholders' equity

$

642,934

 

$

629,472

 

$

622,385

 

$

616,812

 

$

582,581

 

 
Total equity / total assets

 

6.71%

 

6.12%

 

6.16%

 

5.89%

 

5.71%

Book value per share

$

29.16

 

$

26.01

 

$

25.89

 

$

24.57

 

$

22.48

 

Shares outstanding

 

1,480,472

 

 

1,479,862

 

 

1,479,862

 

 

1,479,862

 

 

1,479,862

 

 
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
 
Three months ended Year ended
12/31/23 09/30/23 12/31/22 12/31/23 12/31/22
 
INTEREST INCOME
Loans

$

6,862

 

$

6,517

 

$

5,178

 

$

24,885

 

$

19,029

 

Federal funds sold

 

-

 

 

-

 

 

1

 

 

3

 

 

2

 

Investment securities

 

751

 

 

739

 

 

676

 

 

2,948

 

 

2,054

 

Other

 

426

 

 

558

 

 

515

 

 

2,118

 

 

1,073

 

Total interest income

 

8,039

 

 

7,814

 

 

6,370

 

 

29,954

 

 

22,158

 

 
INTEREST EXPENSE
Deposits:
Interest-bearing demand

 

291

 

 

289

 

 

214

 

 

1,036

 

 

454

 

Money market and savings

 

904

 

 

798

 

 

450

 

 

2,956

 

 

974

 

Time deposits

 

1,245

 

 

933

 

 

401

 

 

3,551

 

 

821

 

Other

 

160

 

 

148

 

 

149

 

 

606

 

 

602

 

Total interest expense

 

2,600

 

 

2,168

 

 

1,214

 

 

8,149

 

 

2,851

 

 
Net interest income

 

5,439

 

 

5,646

 

 

5,156

 

 

21,805

 

 

19,307

 

Provision for credit losses

 

-

 

 

200

 

 

-

 

 

530

 

 

113

 

Net interest income after provision for credit losses

 

5,439

 

 

5,446

 

 

5,156

 

 

21,275

 

 

19,194

 

 
NON-INTEREST INCOME
Service charges on deposit accounts

 

70

 

 

63

 

 

66

 

 

270

 

 

266

 

Gain on sale of loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Gain (loss) on sale of other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Gain (loss) on sale of securities

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Other non-interest income

 

288

 

 

306

 

 

199

 

 

1,119

 

 

794

 

Total non-interest income

 

358

 

 

369

 

 

265

 

 

1,389

 

 

1,060

 

 
OPERATING EXPENSES
Salaries and benefits

 

1,865

 

 

1,781

 

 

1,567

 

 

6,963

 

 

5,340

 

Premises and fixed assets

 

263

 

 

268

 

 

242

 

 

1,110

 

 

854

 

Other

 

1,045

 

 

1,119

 

 

941

 

 

4,376

 

 

3,924

 

Total operating expenses

 

3,173

 

 

3,168

 

 

2,750

 

 

12,449

 

 

10,118

 

 
Income before income taxes

 

2,624

 

 

2,647

 

 

2,671

 

 

10,215

 

 

10,136

 

Income taxes

 

732

 

 

727

 

 

745

 

 

2,844

 

 

2,893

 

 
NET INCOME

$

1,892

 

$

1,920

 

$

1,926

 

$

7,371

 

$

7,243

 

 
EARNINGS PER SHARE
Basic earnings per share

$

1.28

 

$

1.30

 

$

1.31

 

$

4.98

 

$

4.92

 

Diluted earnings per share

$

1.24

 

$

1.26

 

$

1.27

 

$

4.84

 

$

4.74

 

Average common shares outstanding

 

1,479,948

 

 

1,479,862

 

 

1,474,754

 

 

1,479,884

 

 

1,472,381

 

Average common and equivalent shares outstanding

 

1,523,488

 

 

1,524,640

 

 

1,520,935

 

 

1,523,893

 

 

1,526,734

 

 
PERFORMANCE MEASURES
Return on average assets

 

1.19

%

 

1.21

%

 

1.32

%

 

1.18

%

 

1.24

%

Return on average equity

 

18.94

%

 

19.58

%

 

24.23

%

 

19.36

%

 

21.36

%

Tax-equivalent net interest margin

 

3.55

%

 

3.68

%

 

3.61

%

 

3.65

%

 

3.43

%

Efficiency ratio

 

54.74

%

 

52.67

%

 

50.73

%

 

53.67

%

 

49.68

%

 

Matthew B. Moseley
President & CEO
530.222.1460

Patrick E. Phelan
Chief Financial Officer
530.222.1460

View source version on businesswire.com: https://www.businesswire.com/news/home/20240123904640/en/

Market Updates

Sponsor Center