Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2015

RED BLUFF, Calif.--()--Cornerstone Community Bancorp, (OTC Pink: CRSB), announced today its financial results for the fourth quarter and full year ended December 31, 2015.

The Company reported net income of $144,000 for the three months ended December 31, 2015 compared to net income of $229,000 for the same period last year. Diluted earnings per share for the three months ended December 31, 2015 were $0.11 compared to $0.17 for the same period last year.

Net income for the year ended December 31, 2015 was $918,000, or $0.68 per diluted share compared to net income of $754,000, or $0.57 per diluted share, for the year ended December 31, 2014.

The return on average assets for the three months ended December 31, 2015 was 0.33% and the return on average equity was 3.90%. For the year ended December 31, 2015, the return on average assets was 0.54% and the return on average equity was 6.41%.

President and CEO, Jeff Finck, stated, “In 2015, we formed the bank holding company and raised additional capital for future growth. Our book value increased by 7% to $11.71 per share and our diluted earnings per share increased by 19% to $0.68 per share. The capital raise and our 2015 operating performance set the stage for continued solid growth heading into 2016.”

Net Interest Income

Net interest income was $1,533,000 for the quarter ended December 31, 2015 compared to $1,529,000 for the same quarter one year earlier. For the year ended December 31, 2015, net interest income was $6,076,000 compared to $5,764,000 for the year ended December 31, 2014 representing an increase of $312,000, or 5%.

Provision for credit losses

There was no provision for credit losses for the quarters ended December 31, 2015 and December 31, 2014. There was no provision for credit losses for the year ended December 31, 2015 compared to $224,000 for the year ended December 31, 2014.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2015 was $9,000 compared to $162,000 for the quarter ended December 31, 2014. For the year ended December 31, 2015, non-interest income was $900,000 compared to $683,000 for the year ended December 31, 2014.

Non-Interest Expense

Non-interest expense was $1,298,000 for the quarter ended December 31, 2015 compared to $1,291,000 for the same period one year earlier. For the year ended December 31, 2015, non-interest expense was $5,417,000 compared to $4,950,000 for the same period last year.

Balance Sheet

The Company had total assets at December 31, 2015 of $171.1 million, compared to $149.1 million at December 31, 2014, representing growth of $22.0 million, or 15%.

Total loans outstanding at December 31, 2015, were $137.1 million compared to $124.5 million at December 31, 2014, representing an increase of $12.6 million, or 10%.

Total deposits were $136.1 million at December 31, 2015 compared to total deposits of $134.9 million at December 31, 2014, representing an increase of $1.2 million, or 1%.

Credit Quality

The allowance for loan losses was $1,619,000, or 1.18% of loans, net of unearned income at December 31, 2015, compared to $1,605,000, or 1.29% of loans, net of unearned income at December 31, 2014. Nonperforming assets at December 31, 2015 were $381,000 compared to $34,000 at December 31, 2014.

The bank recognized $14,804 in net loan recoveries during the year ended December 31, 2015.

Capital

At December 31, 2015, shareholders’ equity totaled $14.7 million compared to $13.7 million at December 31, 2014.

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 a banking office 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 press release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of Cornerstone Community Bancorp and on information available to management at the time these statements were made. There are a number of factors, many of which are beyond Cornerstone Community Bancorp’s control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which Cornerstone Community Bancorp is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than Cornerstone Community Bancorp; and (7) adverse changes may occur in the securities markets or with respect to inflation. 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)
         
 
  12/31/15       09/30/15       06/30/15       03/31/15       12/31/14  
 
ASSETS
Cash and due from banks $ 3,207 $ 1,575 $ 3,172 $ 3,982 $ 2,750
Federal funds sold - - - - -
Interest-bearing deposits 15,877 15,647 16,364 21,281 6,070
Investment securities 9,640 9,906 10,097 10,511 11,149
Loans held for sale - - 3,309 - -
Loans, net of unearned income 137,057 137,725 133,744 127,045 124,517
Allowance for loan losses   (1,619 )     (1,613 )     (1,612 )     (1,608 )     (1,605 )
Loans, net 135,438 136,112 132,132 125,437 122,912
Premises and equipment, net 1,013 995 793 851 909
Other assets   5,903       8,092       5,313       5,157       5,295  
Total assets $ 171,078     $ 172,327     $ 171,180     $ 167,219     $ 149,085  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 22,269 $ 23,797 $ 29,223 $ 29,852 $ 24,702
Demand interest-bearing 20,605 20,143 17,667 20,607 21,566
Money market and savings 45,256 43,381 39,605 54,169 42,114
Time deposits of less than $100,000 15,092 15,125 16,277 16,239 17,939
Time deposits of $100,000 or more   32,889       34,735       33,895       26,798       28,606  
Total deposits 136,111 137,181 136,667 147,665 134,927
Federal Home Loan Bank borrowings 15,000 15,000 15,000 - -
Subordinated debentures 4,874 4,874 4,872 4,870 -
Interest payable and other liabilities   430       736       512       668       456  
Total liabilities   156,415       157,791       157,051       153,203       135,383  
 
SHAREHOLDERS' EQUITY
Common stock 13,257 13,234 13,209 13,185 13,161
Retained Earnings 1,307 1,162 803 615 389
Accumulated other comprehensive income (loss)   99       140       117       216       152  
Total shareholders' equity   14,663       14,536       14,129       14,016       13,702  
Total liabilities and shareholders' equity $ 171,078     $ 172,327     $ 171,180     $ 167,219     $ 149,085  
 
Total equity / total assets 8.57 % 8.44 % 8.25 % 8.38 % 9.19 %
Book value per share $ 11.71 $ 11.61 $ 11.29 $ 11.19 $ 10.94
       
CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)    
 
 
Three months ended Year ended
12/31/15   09/30/15   12/31/14 12/31/15   12/31/14
 
INTEREST INCOME
Loans $ 1,754 $ 1,754 $ 1,552 $ 6,766 $ 5,789
Federal funds sold - - - - -
Investment securities 74 73 83 300 411
Other   33       35       17     140       56  
Total interest income   1,861       1,862       1,652     7,206       6,256  
 
INTEREST EXPENSE
Deposits:
Interest-bearing demand 11 8 5 29 20
Money market and savings 62 55 27 196 163
Time deposits 115 115 91 418 307
Other   140       156       -     487       2  
Total interest expense   328       334       123     1,130       492  
 
Net interest income 1,533 1,528 1,529 6,076 5,764
Provision for credit losses   -       -       -     -       224  

Net interest income after provision for credit losses

  1,533       1,528       1,529     6,076       5,540  
 
NON-INTEREST INCOME
Service charges on deposit accounts 33 38 32 137 108
Gain on sale of SBA loans - 321 - 321 -
Gain (loss) on sale of other real estate owned (100 ) - - (100 ) (23 )
Gain (loss) on sale of securities - - - - 101
Other non-interest income   76       166       130     542       497  
Total non-interest income   9       525       162     900       683  
 
OPERATING EXPENSES
Salaries and benefits 704 753 715 2,904 2,644
Premises and fixed assets 139 143 138 561 565
Other   455       546       438     1,952       1,741  
Total operating expenses   1,298       1,442       1,291     5,417       4,950  
 
Income before income taxes 244 611 400 1,559 1,273
Income taxes 100 251 171 641 519
               
NET INCOME $ 144     $ 360     $ 229   $ 918     $ 754  
 
EARNINGS PER SHARE
Basic earnings per share $ 0.12     $ 0.29     $ 0.18   $ 0.73     $ 0.62  
Diluted earnings per share $ 0.11     $ 0.27     $ 0.17   $ 0.68     $ 0.57  
Average common shares outstanding   1,252,000       1,252,000       1,247,652     1,252,000       1,222,192  

Average common and equivalent shares outstanding

  1,347,958       1,340,377       1,339,125     1,343,211       1,325,511  
 
PERFORMANCE MEASURES
Return on average assets 0.33 % 0.83 % 0.61 % 0.54 % 0.54 %
Return on average equity 3.90 % 9.96 % 6.70 % 6.41 % 5.72 %
Net interest margin 3.66 % 3.65 % 4.26 % 3.74 % 4.32 %
Efficiency ratio 84.18 % 70.24 % 76.35 % 77.65 % 76.78 %

Contacts

Cornerstone Community Bancorp
Jeffrey P. Finck, 530-222-1460
President & CEO
jfinck@bankcornerstone.com
Patrick E. Phelan, 530-222-1460
Chief Financial Officer
pphelan@bankcornerstone.com

Recent Stories

RSS feed for Cornerstone Community Bancorp

Cornerstone Community Bancorp