RED BLUFF, Calif.–(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

%

 

Contacts

Jeffrey P. Finck

President & CEO

530.222.1460

Patrick E. Phelan

Chief Financial Officer

530.222.1460