CORNERSTONE BANCORP, INC. QUARTERLY REPORT - JUNE 30, 2023
PALATINE, Ill., Aug. 2, 2023 /PRNewswire/ --
SECOND QUARTER 2023 HIGHLIGHTS (At or for period ended 6/30/2023)
Income Statement Highlights
- Driven by an increased net interest margin, consolidated net income was $2.7 million in 2Q23, or $2.74 per diluted share, compared to $2.6 million in 2Q22, or $2.62 per diluted share.
- The net interest margin (NIM) was 3.54% for 2Q23, compared to 2.97% for 2Q22.
- Interest earned on interest-bearing deposit accounts was $2.5 million for 2Q23 compared to $503,000 for 2Q22.
- The yield on the loan portfolio rose to 5.56% for 2Q23 compared to 4.59% for 2Q22.
- Noninterest expense was $6.0 million in 2Q23 compared to $5.7 million in 2Q22.
Balance Sheet Highlights
- Total consolidated assets declined 4.8% to $971.9 million at June 30, 2023, compared to $1.02 billion a year earlier primarily from expected client disbursements.
- Tangible shareholders' equity improved 18.8% to $66.9 million at June 30, 2023, compared to $56.3 million a year earlier.
- Interest-bearing deposits at the Federal Reserve Bank totaled $205.1 million at June 30, 2023 (21.1% of total assets) compared to $217.1 million a year earlier (21.3% of total assets).
- The securities portfolio totaled $118.2 million at June 30, 2023, compared to $164.5 million a year earlier. The weighted average remaining life approximates three years.
- The loan portfolio, excluding PPP loans, totaled $627.5 million at June 30, 2023, $21.5 million, or 3.6%, higher than a year earlier.
- Total deposits and repurchase agreements declined 5.4% to $879.9 million at June 30, 2023, compared to $929.9 million a year earlier. Clients are reinvesting in their businesses as balances per deposit account are moving toward the levels of pre-pandemic averages.
- The Corporation's other borrowings have declined to $7.8 million at June 30, 2023 compared to $17.8 million a year earlier.
- The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 9.25% at June 30, 2023.
Trust and Wealth Management
- Trust assets totaled $896.5 million at June 30, 2023, compared to $853.2 million a year earlier.
About Cornerstone Bancorp, Inc.
Founded in 2000, Cornerstone Bancorp, Inc., and its wholly-owned subsidiary, Cornerstone National Bank & Trust Company (collectively "Cornerstone") is committed to serving the commercial banking and investment needs of families and family-owned businesses. Cornerstone serves its clients by investing heavily in people and technology, providing an uncommon relationship experience. Cornerstone has been successful in attracting new clients and talent as the Chicago market consolidates and large banks deemphasize relationships in favor of an institutional approach.
Cornerstone is a leader in commercial lending services including equipment, real estate and construction loans and operating lines of credit as well as business treasury management services and association loans for condominium and townhome associations.
For individuals and families, wealth management services are offered, including investment management, trust and custody services, retirement plans, and estate and guardianship administration.
Headquartered in Palatine, Illinois, Cornerstone maintains offices in Crystal Lake, Deer Park, Naperville and Schaumburg. Visit us on the web at www.cnbtc.bank.
Forward Looking Statement
This release may contain "forward-looking statements" that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management's plans and objectives for future operations are forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect," and "intend" and words or phrases of similar meaning, as they relate to Cornerstone or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management's expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.
Financial Highlights (Unaudited) |
||||||
($ in Thousands, Except Share and Per Share Data) |
||||||
For the Quarter Ending |
Year To Date |
|||||
Income Statement |
30-Jun-23 |
30-Jun-22 |
% Change |
30-Jun -23 |
30-Jun -22 |
|
Net Interest Income |
$ 8,520 |
$ 7,544 |
12.9 % |
$ 17,171 |
$ 13,991 |
|
Provision for Credit Losses |
29 |
- |
N\A |
29 |
- |
|
Noninterest Income |
1,311 |
1,739 |
-24.6 % |
2,636 |
3,026 |
|
Noninterest Expense |
6,027 |
5,662 |
6.4 % |
11,886 |
11,206 |
|
Provision for Income Taxes |
1,061 |
1,020 |
4.0 % |
2,223 |
1,643 |
|
Net Income |
$ 2,714 |
$ 2,600 |
4.4 % |
$ 5,669 |
$ 4,168 |
|
Ratios |
||||||
Return on Average Assets * |
1.12 % |
1.00 % |
11.8 % |
1.23 % |
0.87 % |
|
Return on Average Stockholders' Equity* |
15.07 % |
17.25 % |
-12.6 % |
16.89 % |
15.26 % |
|
Net Interest Margin |
3.54 % |
2.97 % |
19.4 % |
3.63 % |
2.76 % |
|
Allowance for Loan Losses to Gross Loans ** |
1.30 % |
1.33 % |
-2.9 % |
1.30 % |
1.33 % |
|
Dividends Per Share |
$ - |
$ - |
N\A |
$ - |
$ - |
|
Earnings Per Share |
$ 2.74 |
$ 2.62 |
4.7 % |
$ 5.71 |
$ 4.19 |
|
End of Period |
End of Period |
|||||
Balance Sheet Data |
30-Jun-23 |
30-Jun-22 |
% Change |
31-Dec-22 |
31-Dec-21 |
|
Total Assets |
$ 971,922 |
$ 1,020,593 |
-4.8 % |
$ 989,110 |
$ 950,731 |
|
Loans, Net of Allowance for Loan Losses |
$ 619,384 |
$ 602,258 |
2.8 % |
$ 600,999 |
$ 583,423 |
|
Deposits and Repurchase Agreements |
$ 879,884 |
$ 929,932 |
-5.4 % |
$ 899,327 |
$ 860,067 |
|
Trust Preferred Securities |
$ 10,310 |
$ 10,310 |
0.0 % |
$ 10,310 |
$ 10,310 |
|
Other Borrowings |
$ 7,763 |
$ 17,763 |
-56.3 % |
$ 12,763 |
$ 17,763 |
|
Tangible Stockholders' Equity |
$ 66,858 |
$ 56,289 |
18.8 % |
$ 61,364 |
$ 56,865 |
|
Trust Assets |
$ 896,475 |
$ 853,227 |
5.1 % |
$ 848,711 |
$ 1,016,393 |
|
Stock Value Per Common Share Data |
||||||
Price-To-Earnings Ratio * |
6.01 |
6.10 |
-1.5 % |
6.10 |
6.47 |
|
Price-To-Tangible Book Value Ratio |
0.97 |
1.13 |
-13.8 % |
1.04 |
1.12 |
|
Tangible Book Value Per Share |
$ 67.73 |
$ 56.62 |
19.6 % |
$ 61.73 |
$ 57.20 |
|
Number of Shares Outstanding |
987,189 |
994,088 |
994,088 |
994,088 |
||
Average Number of Shares Outstanding |
990,921 |
994,088 |
994,088 |
994,088 |
||
Stock Price - High |
$ 67.60 |
$ 64.50 |
$ 64.30 |
$ 64.00 |
||
Low |
$ 66.00 |
$ 63.75 |
$ 63.10 |
$ 60.00 |
||
Ending |
$ 66.00 |
$ 64.00 |
$ 64.30 |
$ 64.00 |
||
* - Quarter returns are based on annualized Net Income; Year-To-Date returns are based on the Last Twelve Months' (LTM) Net Income
** - Excludes PPP loans which are 100% SBA guaranteed
SOURCE Cornerstone Bancorp, Inc.
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