Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2022

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, 2022.

The Company reported net income of $1,926,000 for the three months ended December 31, 2022 compared to net income of $1,967,000 for the same period last year. Diluted earnings per share were $1.27 for the three months ended December 31, 2022 compared to $1.29 for the same period last year.

The return on average assets for the three months ended December 31, 2022 was 1.32% and the return on average equity was 24.23%. The tax-equivalent net interest margin was 3.61% for the three months ended December 31, 2022 compared to 3.59% for the same period last year and the efficiency ratio was 50.73% for the three months ended December 31, 2022 compared to 43.14% for the same period last year.

For the year ended December 31, 2022, the Company reported net income of $7,243,000 compared to net income of $7,915,000 for the same period last year. Diluted earnings per share were $4.74 for the year ended December 31, 2022 compared to $5.25 for the same period last year.

The return on average assets for the year ended December 31, 2022 was 1.24% and the return on average equity was 21.36%.

President and CEO, Matt Moseley stated, “We are pleased with our 2022 operating results. We are excited to begin the new year with the team and infrastructure we put in place in 2022.”

Net Interest Income

Net interest income increased to $5,156,000 for the quarter ended December 31, 2022 compared to $4,781,000 for the same quarter last year. For the year ended December 31, 2022, net interest income increased to $19,307,000 compared to $17,993,000 for the same period last year.

Provision for credit losses

There was no provision for credit losses recorded for the quarter ended December 31, 2022 compared to $150,000 for the same quarter last year. For the year ended December 31, 2022, the Company recorded a $113,000 provision for credit losses compared to $1,050,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2022 was $265,000 compared to $339,000 for the quarter ended December 31, 2021. For the year ended December 31, 2022, non-interest income was $1,060,000 compared to $2,245,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,750,000 for the quarter ended December 31, 2022 compared to $2,209,000 for the same period last year. For the year ended December 31, 2022, non-interest expense was $10,118,000 compared to $8,067,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income, at December 31, 2022 were $420.4 million compared to $387.4 million at December 31, 2021.

Total deposits were $534.8 million at December 31, 2022 compared to total deposits of $547.7 million at December 31, 2021.

Credit Quality

The allowance for loan losses was $5,159,000, or 1.23% of loans, net of unearned income, at December 31, 2022, compared to $5,059,000, or 1.31% of loans, net of unearned income, at December 31, 2021. There were no nonperforming assets at December 31, 2022 and December 31, 2021.

Capital

At December 31, 2022, shareholders’ equity totaled $33.3 million compared to $37.0 million at December 31, 2021. At December 31, 2022, the Company’s book value per common share was $22.48 compared to $25.31 at December 31, 2021. During the year ended December 31, 2022, increasing interest rates resulted in a decline in the fair value of available for sale investment securities. This impact is reflected in the decline in accumulated other comprehensive income (AOCI) to $(12,105,000) at December 31, 2022, compared to $(945,000) at December 31, 2021. Excluding AOCI, book value increased to $30.66 at December 31, 2022, compared to $25.96 at December 31, 2021.

AOCI has no effect on Cornerstone Community Bank’s (the Bank) regulatory capital ratios as the Bank opted to exclude it from regulatory capital calculations. At December 31, 2022, the Bank’s estimated total risk-based capital ratio was 12.61% and its tier 1 capital to risk weighted assets ratio was 11.52%. 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)
 
12/31/22 09/30/22 06/30/22 03/31/22 12/31/21
 
ASSETS
Cash and due from banks

$

5,628

 

$

6,011

 

$

5,230

 

$

4,175

 

$

4,552

 

Federal funds sold

 

123

 

 

122

 

 

121

 

 

121

 

 

121

 

Interest-bearing deposits

 

25,212

 

 

57,618

 

 

48,277

 

 

73,629

 

 

77,933

 

Investment securities

 

94,435

 

 

95,511

 

 

102,692

 

 

99,748

 

 

108,253

 

Loans held for sale

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

420,415

 

 

400,480

 

 

399,156

 

 

375,369

 

 

387,374

 

Allowance for loan losses

 

(5,159

)

 

(5,172

)

 

(5,132

)

 

(5,077

)

 

(5,059

)

Loans, net

 

415,256

 

 

395,308

 

 

394,024

 

 

370,292

 

 

382,315

 

Premises and equipment, net

 

14,601

 

 

14,671

 

 

14,691

 

 

14,757

 

 

14,784

 

Other assets

 

27,326

 

 

21,261

 

 

20,588

 

 

16,930

 

 

15,622

 

Total assets

$

582,581

 

$

590,502

 

$

585,623

 

$

579,652

 

$

603,580

 

 
LIABILITIES
Deposits:
Demand noninterest-bearing

$

126,946

 

$

129,236

 

$

130,249

 

$

131,136

 

$

174,282

 

Demand interest-bearing

 

136,655

 

 

138,630

 

 

131,623

 

 

126,331

 

 

131,368

 

Money market and savings

 

182,787

 

 

201,316

 

 

201,106

 

 

196,653

 

 

163,946

 

Time deposits

 

88,430

 

 

76,121

 

 

76,576

 

 

78,167

 

 

78,111

 

Total deposits

 

534,818

 

 

545,303

 

 

539,554

 

 

532,287

 

 

547,707

 

Borrowings and other obligations

 

 

 

 

 

 

 

 

 

5,000

 

Subordinated debentures

 

11,744

 

 

11,738

 

 

11,732

 

 

11,726

 

 

11,720

 

Interest payable and other liabilities

 

2,755

 

 

2,892

 

 

2,631

 

 

1,899

 

 

2,134

 

Total liabilities

 

549,317

 

 

559,933

 

 

553,917

 

 

545,912

 

 

566,561

 

 
SHAREHOLDERS’ EQUITY
Common stock

 

15,075

 

 

14,964

 

 

15,079

 

 

15,009

 

 

14,913

 

Retained Earnings

 

30,294

 

 

28,368

 

 

26,432

 

 

24,726

 

 

23,051

 

Accumulated other comprehensive income (loss)

 

(12,105

)

 

(12,763

)

 

(9,805

)

 

(5,995

)

 

(945

)

Total shareholders’ equity

 

33,264

 

 

30,569

 

 

31,706

 

 

33,740

 

 

37,019

 

Total liabilities and shareholders’ equity

$

582,581

 

$

590,502

 

$

585,623

 

$

579,652

 

$

603,580

 

 
Total equity / total assets

 

5.71

%

 

5.18

%

 

5.41

%

 

5.82

%

 

6.13

%

Book value per share

$

22.48

 

$

20.81

 

$

21.51

 

$

22.93

 

$

25.31

 

Shares outstanding

 

1,479,862

 

 

1,469,091

 

 

1,474,091

 

 

1,471,591

 

 

1,462,591

 

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
 
Three months ended Year ended
12/31/22 09/30/22 12/31/21 12/31/22 12/31/21
 
INTEREST INCOME
Loans

$

5,178

 

$

5,018

 

$

4,759

 

$

19,029

 

$

18,361

 

Federal funds sold

 

1

 

 

1

 

 

1

 

 

2

 

 

4

 

Investment securities

 

676

 

 

543

 

 

385

 

 

2,054

 

 

1,124

 

Other

 

515

 

 

354

 

 

60

 

 

1,073

 

 

180

 

Total interest income

 

6,370

 

 

5,916

 

 

5,205

 

 

22,158

 

 

19,669

 

 
INTEREST EXPENSE
Deposits:
Interest-bearing demand

 

214

 

 

130

 

 

49

 

 

454

 

 

187

 

Money market and savings

 

450

 

 

260

 

 

109

 

 

974

 

 

385

 

Time deposits

 

401

 

 

182

 

 

107

 

 

821

 

 

452

 

Other

 

149

 

 

148

 

 

159

 

 

602

 

 

652

 

Total interest expense

 

1,214

 

 

720

 

 

424

 

 

2,851

 

 

1,676

 

 
Net interest income

 

5,156

 

 

5,196

 

 

4,781

 

 

19,307

 

 

17,993

 

Provision for credit losses

 

 

 

40

 

 

150

 

 

113

 

 

1,050

 

Net interest income after provision for credit losses

 

5,156

 

 

5,156

 

 

4,631

 

 

19,194

 

 

16,943

 

 
NON-INTEREST INCOME
Service charges on deposit accounts

 

66

 

 

67

 

 

65

 

 

266

 

 

244

 

Gain on sale of loans

 

 

 

 

 

 

 

 

 

1,231

 

Gain (loss) on sale of other real estate owned

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of securities

 

 

 

 

 

 

 

 

 

(45

)

Other non-interest income

 

199

 

 

198

 

 

274

 

 

794

 

 

815

 

Total non-interest income

 

265

 

 

265

 

 

339

 

 

1,060

 

 

2,245

 

 
OPERATING EXPENSES
Salaries and benefits

 

1,567

 

 

1,408

 

 

1,175

 

 

5,340

 

 

3,870

 

Premises and fixed assets

 

242

 

 

227

 

 

166

 

 

854

 

 

649

 

Other

 

941

 

 

1,064

 

 

868

 

 

3,924

 

 

3,548

 

Total operating expenses

 

2,750

 

 

2,699

 

 

2,209

 

 

10,118

 

 

8,067

 

 
Income before income taxes

 

2,671

 

 

2,722

 

 

2,761

 

 

10,136

 

 

11,121

 

Income taxes

 

745

 

 

786

 

 

794

 

 

2,893

 

 

3,206

 

 
NET INCOME

$

1,926

 

$

1,936

 

$

1,967

 

$

7,243

 

$

7,915

 

 
EARNINGS PER SHARE
Basic earnings per share

$

1.31

 

$

1.31

 

$

1.35

 

$

4.92

 

$

5.44

 

Diluted earnings per share

$

1.27

 

$

1.27

 

$

1.29

 

$

4.74

 

$

5.25

 

Average common shares outstanding

 

1,474,754

 

 

1,473,276

 

 

1,459,667

 

 

1,472,381

 

 

1,454,507

 

Average common and equivalent shares outstanding

 

1,520,935

 

 

1,523,830

 

 

1,518,908

 

 

1,526,734

 

 

1,507,561

 

 
PERFORMANCE MEASURES
Return on average assets

 

1.32

%

 

1.30

%

 

1.41

%

 

1.24

%

 

1.46

%

Return on average equity

 

24.23

%

 

23.11

%

 

21.63

%

 

21.36

%

 

23.35

%

Tax-equivalent net interest margin

 

3.61

%

 

3.60

%

 

3.59

%

 

3.43

%

 

3.50

%

Efficiency ratio

 

50.73

%

 

49.42

%

 

43.14

%

 

49.68

%

 

39.86

%

 

Contacts

Matthew B. Moseley

President & CEO

530.222.1460

Patrick E. Phelan

Chief Financial Officer

530.222.1460

Read Previous

Australia’s March to the Cloud Energizes AWS Ecosystem

Read Next

OPTAGE Builds Its Fifth Data Center in Osaka, Japan

Leave a Reply

Most Popular

Please turn AdBlock off