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Cornerstone Community Bancorp Reports Financial Results For the Second Quarter Ended June 30, 2021

·8-min read

RED BLUFF, Calif., July 22, 2021--(BUSINESS WIRE)--Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the second quarter ended June 30, 2021.

The Company reported net income of $1,816,000 for the three months ended June 30, 2021 compared to net income of $1,284,000 for the same period last year. Diluted earnings per share were $1.20 for the three months ended June 30, 2021 compared to $0.84 for the same period last year.

The return on average assets for the three months ended June 30, 2021 was 1.35% and the return on average equity was 22.17%. The tax-equivalent net interest margin was 3.33% for the three months ended June 30, 2021 compared to 3.06% for the same period last year and the efficiency ratio was 43.23% for the three months ended June 30, 2021 compared to 42.00% for the same period last year.

For the six months ended June 30, 2021, the Company reported net income of $3,863,000 compared to net income of $1,331,000 for the same period last year. Diluted earnings per share were $2.58 for the six months ended June 30, 2021 compared to $0.87 for the same period last year.

The return on average assets for the six months ended June 30, 2021 was 1.45% and the return on average equity was 24.24%.

President and CEO, Jeff Finck stated, "We continue to grow loans, deposits and earnings. Asset quality remains strong with no nonperforming assets."

Net Interest Income

Net interest income increased to $4,239,000 for the quarter ended June 30, 2021 compared to $3,153,000 for the same quarter last year. For the six months ended June 30, 2021, net interest income increased to $8,456,000 compared to $5,995,000 for the same period last year.

Provision for credit losses

Provision for credit losses were $100,000 for the quarter ended June 30, 2021 compared to $150,000 for the same quarter last year. For the six months ended June 30, 2021, the Company recorded a $500,000 provision for credit losses compared to $1,600,000 for the same period last year.

Non-Interest Income

Non-interest income for the quarter ended June 30, 2021 was $422,000 compared to $204,000 for the quarter ended June 30, 2020. For the six months ended June 30, 2021, non-interest income was $1,299,000 compared to $598,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,015,000 for the quarter ended June 30, 2021 compared to $1,410,000 for the same period last year. For the six months ended June 30, 2021, non-interest expense was $3,828,000 compared to $3,308,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income at June 30, 2021 were $390.7 million compared to $333.6 million at June 30, 2020.

Total deposits were $473.3 million at June 30, 2021 compared to total deposits of $341.4 million at June 30, 2020.

Credit Quality

The allowance for loan losses was $4,509,000, or 1.15% of loans, net of unearned income at June 30, 2021, compared to $4,009,000, or 1.20% of loans, net of unearned income at June 30, 2020. There were no nonperforming assets at June 30, 2021 and June 30, 2020.

Capital

At June 30, 2021, shareholders’ equity totaled $33.8 million compared to $27.6 million at June 30, 2020. Book value was $23.22 per share at June 30, 2021 compared to $18.50 per share at June 30, 2020.

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 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 Tax Cuts & Jobs Act of 2017 and the Coronavirus Aid, Relief and Economic Security Act of 2021), 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)

06/30/21

03/31/21

12/31/20

09/30/20

06/30/20

ASSETS

Cash and due from banks

$

5,450

$

5,417

$

3,811

$

5,455

$

6,350

Federal funds sold

2,256

5,761

14,166

5,045

10,402

Interest-bearing deposits

28,549

68,283

77,045

62,110

73,310

Investment securities

75,258

52,084

50,336

50,699

16,173

Loans held for sale

-

1,102

-

-

-

Loans, net of unearned income

390,748

382,253

332,176

342,416

333,620

Allowance for loan losses

(4,509

)

(4,409

)

(4,009

)

(4,009

)

(4,009

)

Loans, net

386,239

377,844

328,167

338,407

329,611

Premises and equipment, net

13,013

12,767

11,581

10,992

11,095

Other assets

14,972

13,974

12,724

12,577

11,882

Total assets

$

525,737

$

537,232

$

497,830

$

485,285

$

458,823

LIABILITIES

Deposits:

Demand noninterest-bearing

$

126,107

$

126,481

$

108,147

$

103,824

$

96,395

Demand interest-bearing

126,724

122,506

108,097

104,819

90,633

Money market and savings

150,086

163,232

146,655

87,035

79,550

Time deposits of less than $100,000

13,393

15,812

15,418

21,103

22,925

Time deposits of $100,000 or more

56,993

57,299

55,021

54,695

51,919

Total deposits

473,303

485,330

433,338

371,476

341,422

Borrowings and other obligations

5,000

5,000

15,000

78,136

83,136

Subordinated debentures

11,709

11,703

16,645

4,923

4,920

Interest payable and other liabilities

1,933

3,776

2,763

1,854

1,765

Total liabilities

491,945

505,809

467,746

456,389

431,243

SHAREHOLDERS' EQUITY

Common stock

14,771

14,681

14,584

15,462

15,440

Retained Earnings

18,999

17,183

15,136

13,077

11,841

Accumulated other comprehensive income (loss)

22

(441

)

364

357

299

Total shareholders' equity

33,792

31,423

30,084

28,896

27,580

Total liabilities and shareholders' equity

$

525,737

$

537,232

$

497,830

$

485,285

$

458,823

Total equity / total assets

6.43

%

5.85

%

6.04

%

5.95

%

6.01

%

Book value per share

$

23.22

$

21.65

$

20.87

$

19.38

$

18.50

Shares outstanding

1,455,091

1,451,091

1,441,241

1,491,041

1,491,041

CORNERSTONE COMMUNITY BANCORP

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in Thousands)

Three months ended

Six months ended

06/30/21

03/31/21

06/30/20

06/30/21

06/30/20

INTEREST INCOME

Loans

$

4,379

$

4,451

$

3,612

$

8,830

$

6,968

Federal funds sold

1

2

4

3

21

Investment securities

217

162

82

379

172

Other

53

32

45

85

90

Total interest income

4,650

4,647

3,743

9,297

7,251

INTEREST EXPENSE

Deposits:

Interest-bearing demand

45

47

40

92

75

Money market and savings

93

87

119

180

305

Time deposits

114

124

260

238

591

Other

159

172

171

331

285

Total interest expense

411

430

590

841

1,256

Net interest income

4,239

4,217

3,153

8,456

5,995

Provision for credit losses

100

400

150

500

1,600

Net interest income after provision for credit losses

4,139

3,817

3,003

7,956

4,395

NON-INTEREST INCOME

Service charges on deposit accounts

59

58

46

117

118

Gain on sale of loans

135

700

-

835

186

Gain (loss) on sale of other real estate owned

-

-

-

-

-

Gain (loss) on sale of securities

-

(45

)

-

(45

)

-

Other non-interest income

228

164

158

392

294

Total non-interest income

422

877

204

1,299

598

OPERATING EXPENSES

Salaries and benefits

968

679

392

1,647

1,331

Premises and fixed assets

199

179

257

378

509

Other

848

956

761

1,803

1,468

Total operating expenses

2,015

1,814

1,410

3,828

3,308

Income before income taxes

2,546

2,880

1,797

5,427

1,685

Income taxes

730

834

513

1,564

354

NET INCOME

$

1,816

$

2,046

$

1,284

$

3,863

$

1,331

EARNINGS PER SHARE

Basic earnings per share

$

1.25

$

1.41

$

0.86

$

2.66

$

0.90

Diluted earnings per share

$

1.20

$

1.38

$

0.84

$

2.58

$

0.87

Average common shares outstanding

1,453,915

1,447,763

1,485,217

1,450,856

1,482,942

Average common and equivalent shares outstanding

1,510,621

1,485,953

1,523,322

1,497,565

1,528,547

PERFORMANCE MEASURES

Return on average assets

1.35

%

1.56

%

1.18

%

1.45

%

0.72

%

Return on average equity

22.17

%

26.41

%

18.92

%

24.24

%

9.90

%

Tax-equivalent net interest margin

3.33

%

3.43

%

3.06

%

3.38

%

3.48

%

Efficiency ratio

43.23

%

35.61

%

42.00

%

39.24

%

50.17

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722006021/en/

Contacts

Jeffrey P. Finck
President & CEO
530.222.1460

Patrick E. Phelan
Chief Financial Officer
530.222.1460

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