Cornerstone Community Bancorp ( OTC Pink: CRSB ) announced today its financial results for the fourth quarter ended December 31, 2020.
The Company reported net income of $2,059,000 for the three months ended December 31, 2020 compared to net income of $884,000 for the same period last year. Diluted earnings per share were $1.36 for the three months ended December 31, 2020 compared to $0.58 for the same period last year.
The return on average assets for the three months ended December 31, 2020 was 1.68% and the return on average equity was 27.70%. The tax-equivalent net interest margin was 3.81% for the three months ended December 31, 2020 compared to 4.03% for the same period last year and the efficiency ratio declined to 39.69% for the three months ended December 31, 2020 compared to 58.78% for the same period last year.
For the year ended December 31, 2020, the Company reported net income of $4,626,000 compared to net income of $3,452,000 for the same period last year. Diluted earnings per share were $3.04 for the year ended December 31, 2020 compared to $2.27 for the same period last year.
The return on average assets for the year ended December 31, 2020 was 1.09% and the return on average equity was 16.53%.
Net income for the year ended December 31, 2020 reflects a $1.6 million provision for credit losses related to the economic uncertainties of the COVID-19 pandemic.
President and CEO, Jeff Finck stated, “We had a record quarter and year. During the year, our team was busy helping both new and existing customers through the Paycheck Protection Program (PPP) application process. During the fourth quarter, the team was helping them navigate the forgiveness process. These efforts served to strengthen relationships with existing customers and attract new ones.”
Net Interest Income
Net interest income increased to $4,465,000 for the quarter ended December 31, 2020 compared to $2,834,000 for the same quarter last year. Fourth quarter 2020 net interest income was driven by accelerated PPP fee recognition from borrower forgiveness processing. For the year ended December 31, 2020, net interest income increased to $13,836,000 compared to $10,971,000 for the same period last year.
The Company's tax-equivalent net interest margin was 3.81% for the fourth quarter of 2020 and 3.45% for the year ended December 31, 2020.
Provision for credit losses
There was no provision for credit losses recorded for the quarter ended December 31, 2020 compared to $100,000 for the same quarter last year. For the year ended December 31, 2020, the Company recorded a $1,600,000 provision for credit losses compared to $340,000 for the same period last year.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2020 was $345,000 compared to $201,000 for the quarter ended December 31, 2019. For the year ended December 31, 2020, non-interest income was $1,239,000 compared to $1,206,000 for the same period last year.
Non-Interest Expense
Non-interest expense was $1,909,000 for the quarter ended December 31, 2020 compared to $1,784,000 for the same period last year. For the year ended December 31, 2020, non-interest expense was $7,156,000 compared to $7,071,000 for the same period last year.
Balance Sheet
Interest-bearing deposits increased $74.2 million at December 31, 2020 compared to December 31, 2019. Investment securities increased $37.0 million at December 31, 2020 compared to December 31, 2019.
Total loans, net of unearned income at December 31, 2020 were $332.2 million compared to $241.7 million at December 31, 2019.
Total deposits were $433.3 million at December 31, 2020 compared to total deposits of $253.4 million at December 31, 2019.
Credit Quality
The allowance for loan losses was $4,009,000, or 1.21% of loans, net of unearned income at December 31, 2020, compared to $2,409,000, or 1.00% of loans, net of unearned income at December 31, 2019. There were no nonperforming assets at December 31, 2020 and December 31, 2019.
Capital
At December 31, 2020, shareholders’ equity totaled $30.1 million compared to $25.8 million at December 31, 2019. Book value was $20.87 per share at December 31, 2020 compared to $17.79 per share at December 31, 2019.
During the fourth quarter of 2020, the Company repurchased 49,800 shares of its common stock for a total of $900,368.
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 2020), 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 |
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| CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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| (Dollars in Thousands) |
|
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/20 |
|
09/30/20 |
|
06/30/20 |
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03/31/20 |
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12/31/19 |
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| ASSETS |
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| Cash and due from banks |
|
$
|
3,811
|
|
|
$
|
5,455
|
|
|
$
|
6,350
|
|
|
$
|
4,965
|
|
|
$
|
6,038
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| Federal funds sold |
|
|
14,166
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|
|
|
5,045
|
|
|
|
10,402
|
|
|
|
17,385
|
|
|
|
4,575
|
|
| Interest-bearing deposits |
|
|
77,045
|
|
|
|
62,110
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|
|
|
73,310
|
|
|
|
18,928
|
|
|
|
2,825
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| Investment securities |
|
|
50,336
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|
|
50,699
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|
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|
16,173
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|
|
|
13,144
|
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|
13,355
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| Loans held for sale |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
| Loans, net of unearned income |
|
|
332,176
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|
|
|
342,416
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|
|
|
333,620
|
|
|
|
250,353
|
|
|
|
241,662
|
|
| Allowance for loan losses |
|
|
(4,009
|
)
|
|
|
(4,009
|
)
|
|
|
(4,009
|
)
|
|
|
(3,859
|
)
|
|
|
(2,409
|
)
|
| Loans, net |
|
|
328,167
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|
|
|
338,407
|
|
|
|
329,611
|
|
|
|
246,494
|
|
|
|
239,253
|
|
| Premises and equipment, net |
|
|
11,581
|
|
|
|
10,992
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|
|
|
11,095
|
|
|
|
11,180
|
|
|
|
11,216
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| Other assets |
|
|
12,255
|
|
|
|
12,577
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|
|
|
11,882
|
|
|
|
11,330
|
|
|
|
11,093
|
|
| Total assets |
|
$
|
497,361
|
|
|
$
|
485,285
|
|
|
$
|
458,823
|
|
|
$
|
323,426
|
|
|
$
|
288,355
|
|
|
|
|
|
|
|
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|
|
| LIABILITIES |
|
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| Deposits: |
|
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|
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|
|
|
|
|
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| Demand noninterest-bearing |
|
$
|
108,147
|
|
|
$
|
103,824
|
|
|
$
|
96,395
|
|
|
$
|
58,357
|
|
|
$
|
52,352
|
|
| Demand interest-bearing |
|
|
108,097
|
|
|
|
104,819
|
|
|
|
90,633
|
|
|
|
51,608
|
|
|
|
52,058
|
|
| Money market and savings |
|
|
146,655
|
|
|
|
87,035
|
|
|
|
79,550
|
|
|
|
77,273
|
|
|
|
74,560
|
|
| Time deposits of less than $100,000 |
|
|
15,418
|
|
|
|
21,103
|
|
|
|
22,925
|
|
|
|
26,503
|
|
|
|
18,395
|
|
| Time deposits of $100,000 or more |
|
|
55,021
|
|
|
|
54,695
|
|
|
|
51,919
|
|
|
|
54,274
|
|
|
|
56,016
|
|
| Total deposits |
|
|
433,338
|
|
|
|
371,476
|
|
|
|
341,422
|
|
|
|
268,015
|
|
|
|
253,381
|
|
| Borrowings and other obligations |
|
|
15,000
|
|
|
|
78,136
|
|
|
|
83,136
|
|
|
|
23,000
|
|
|
|
3,000
|
|
| Subordinated debentures |
|
|
16,645
|
|
|
|
4,923
|
|
|
|
4,920
|
|
|
|
4,917
|
|
|
|
4,914
|
|
| Interest payable and other liabilities |
|
|
2,294
|
|
|
|
1,854
|
|
|
|
1,765
|
|
|
|
1,382
|
|
|
|
1,235
|
|
| Total liabilities |
|
|
467,277
|
|
|
|
456,389
|
|
|
|
431,243
|
|
|
|
297,314
|
|
|
|
262,530
|
|
|
|
|
|
|
|
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|
|
|
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| SHAREHOLDERS' EQUITY |
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|
|
|
|
|
|
|
|
|
| Common stock |
|
|
14,584
|
|
|
|
15,462
|
|
|
|
15,440
|
|
|
|
15,336
|
|
|
|
15,264
|
|
| Retained Earnings |
|
|
15,136
|
|
|
|
13,077
|
|
|
|
11,841
|
|
|
|
10,557
|
|
|
|
10,510
|
|
| Accumulated other comprehensive income (loss) |
|
|
364
|
|
|
|
357
|
|
|
|
299
|
|
|
|
219
|
|
|
|
51
|
|
| Total shareholders' equity |
|
|
30,084
|
|
|
|
28,896
|
|
|
|
27,580
|
|
|
|
26,112
|
|
|
|
25,825
|
|
| Total liabilities and shareholders' equity |
|
$
|
497,361
|
|
|
$
|
485,285
|
|
|
$
|
458,823
|
|
|
$
|
323,426
|
|
|
$
|
288,355
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity / total assets |
|
|
6.05
|
%
|
|
|
5.95
|
%
|
|
|
6.01
|
%
|
|
|
8.07
|
%
|
|
|
8.96
|
%
|
| Book value per share |
|
$
|
20.87
|
|
|
$
|
19.38
|
|
|
$
|
18.50
|
|
|
$
|
17.63
|
|
|
$
|
17.79
|
|
| Shares outstanding |
|
|
1,441,241
|
|
|
|
1,491,041
|
|
|
|
1,491,041
|
|
|
|
1,481,041
|
|
|
|
1,452,041
|
|
| CORNERSTONE COMMUNITY BANCORP |
|
|
|
|
|
|
|
|
|
|
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|
|
|
|
|
|
| (Dollars in Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
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|
|
|
|
|
|
|
|
|
|
| INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| Loans |
|
$
|
4,761
|
|
|
$
|
3,695
|
|
|
$
|
3,349
|
|
|
$
|
15,424
|
|
|
$
|
13,065
|
|
| Federal funds sold |
|
|
2
|
|
|
|
1
|
|
|
|
40
|
|
|
|
24
|
|
|
|
175
|
|
| Investment securities |
|
|
162
|
|
|
|
161
|
|
|
|
65
|
|
|
|
495
|
|
|
|
238
|
|
| Other |
|
|
51
|
|
|
|
33
|
|
|
|
130
|
|
|
|
174
|
|
|
|
444
|
|
| Total interest income |
|
|
4,976
|
|
|
|
3,890
|
|
|
|
3,584
|
|
|
|
16,117
|
|
|
|
13,922
|
|
|
|
|
|
|
|
|
|
|
|
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand |
|
|
55
|
|
|
|
51
|
|
|
|
50
|
|
|
|
181
|
|
|
|
139
|
|
| Money market and savings |
|
|
80
|
|
|
|
79
|
|
|
|
241
|
|
|
|
464
|
|
|
|
906
|
|
| Time deposits |
|
|
155
|
|
|
|
198
|
|
|
|
351
|
|
|
|
944
|
|
|
|
1,465
|
|
| Other |
|
|
221
|
|
|
|
186
|
|
|
|
108
|
|
|
|
692
|
|
|
|
441
|
|
| Total interest expense |
|
|
511
|
|
|
|
514
|
|
|
|
750
|
|
|
|
2,281
|
|
|
|
2,951
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
4,465
|
|
|
|
3,376
|
|
|
|
2,834
|
|
|
|
13,836
|
|
|
|
10,971
|
|
| Provision for credit losses |
|
|
-
|
|
|
|
-
|
|
|
|
100
|
|
|
|
1,600
|
|
|
|
340
|
|
| Net interest income after provision |
|
|
|
|
|
|
|
|
|
|
| for credit losses |
|
|
4,465
|
|
|
|
3,376
|
|
|
|
2,734
|
|
|
|
12,236
|
|
|
|
10,631
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
|
55
|
|
|
|
49
|
|
|
|
61
|
|
|
|
222
|
|
|
|
255
|
|
| Gain on sale of loans |
|
|
61
|
|
|
|
-
|
|
|
|
-
|
|
|
|
247
|
|
|
|
417
|
|
| Gain (loss) on sale of other real estate owned |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
| Gain (loss) on sale of securities |
|
|
-
|
|
|
|
91
|
|
|
|
-
|
|
|
|
91
|
|
|
|
-
|
|
| Other non-interest income |
|
|
229
|
|
|
|
156
|
|
|
|
140
|
|
|
|
679
|
|
|
|
534
|
|
| Total non-interest income |
|
|
345
|
|
|
|
296
|
|
|
|
201
|
|
|
|
1,239
|
|
|
|
1,206
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
| Salaries and benefits |
|
|
970
|
|
|
|
979
|
|
|
|
887
|
|
|
|
3,280
|
|
|
|
3,636
|
|
| Premises and fixed assets |
|
|
182
|
|
|
|
200
|
|
|
|
239
|
|
|
|
891
|
|
|
|
859
|
|
| Other |
|
|
757
|
|
|
|
760
|
|
|
|
658
|
|
|
|
2,985
|
|
|
|
2,576
|
|
| Total operating expenses |
|
|
1,909
|
|
|
|
1,939
|
|
|
|
1,784
|
|
|
|
7,156
|
|
|
|
7,071
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
2,901
|
|
|
|
1,733
|
|
|
|
1,151
|
|
|
|
6,319
|
|
|
|
4,766
|
|
| Income taxes |
|
|
842
|
|
|
|
497
|
|
|
|
267
|
|
|
|
1,693
|
|
|
|
1,314
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME |
|
$
|
2,059
|
|
|
$
|
1,236
|
|
|
$
|
884
|
|
|
$
|
4,626
|
|
|
$
|
3,452
|
|
|
|
|
|
|
|
|
|
|
|
|
| EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
$
|
1.39
|
|
|
$
|
0.83
|
|
|
$
|
0.61
|
|
|
$
|
3.12
|
|
|
$
|
2.41
|
|
| Diluted earnings per share |
|
$
|
1.36
|
|
|
$
|
0.81
|
|
|
$
|
0.58
|
|
|
$
|
3.04
|
|
|
$
|
2.27
|
|
| Average common shares outstanding |
|
|
1,477,361
|
|
|
|
1,491,041
|
|
|
|
1,442,639
|
|
|
|
1,483,575
|
|
|
|
1,435,255
|
|
| Average common and equivalent |
|
|
|
|
|
|
|
|
|
|
| shares outstanding |
|
|
1,511,365
|
|
|
|
1,522,872
|
|
|
|
1,527,238
|
|
|
|
1,522,714
|
|
|
|
1,521,093
|
|
|
|
|
|
|
|
|
|
|
|
|
| PERFORMANCE MEASURES |
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
1.68
|
%
|
|
|
1.05
|
%
|
|
|
1.16
|
%
|
|
|
1.09
|
%
|
|
|
1.22
|
%
|
| Return on average equity |
|
|
27.70
|
%
|
|
|
17.36
|
%
|
|
|
13.87
|
%
|
|
|
16.53
|
%
|
|
|
14.33
|
%
|
| Tax-equivalent net interest margin |
|
|
3.81
|
%
|
|
|
2.99
|
%
|
|
|
4.03
|
%
|
|
|
3.45
|
%
|
|
|
4.21
|
%
|
| Efficiency ratio |
|
|
39.69
|
%
|
|
|
52.81
|
%
|
|
|
58.78
|
%
|
|
|
47.47
|
%
|
|
|
58.07
|
%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005993/en/
Jeffrey P. Finck
President & CEO
530.222.1460
Patrick E. Phelan
Chief Financial Officer
530.222.1460