Cornerstone Bancshares, Inc. Reports Fourth Quarter 2012 Earnings
CHATTANOOGA, Tenn., Jan. 28, 2013 /PRNewswire/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ; CSBQP) today announced the following:
Cornerstone Bancshares, Inc. ("Cornerstone") reported net income of $371,000 for the fourth quarter of 2012 and net income of $1,402,000 for the 12 months ended December 31, 2012, which represents a 228.6 percent improvement in net income quarter-over-quarter and a 36.1 percent improvement from the previous year.
Net interest margin increased from 3.55 percent in 2011 to 3.85 percent in 2012. In addition, total assets increased 4.2 percent for the year, from $422,655,000 in 2011 to $440,463,000. There was a 3.4 percent growth in loans for the year, from $267,765,000 in 2011 to $276,992,000 in 2012. Deposits increased 8.9 percent from $314,042,000 in 2011 to $341,897,000. In addition, Cornerstone's market value per common share increased 52.7 percent from $1.50 in 2011 to $2.29 in 2012. As of December 31, 2012, Cornerstone had sold all 600,000 shares of its Series A Convertible Preferred Stock, raising $15 million in new capital.
Specific Accomplishments Include:
- $15 million capital raise completion
- Four consecutive quarters of positive earnings for 2012
- Four consecutive payments of quarterly Preferred Stock dividends
"We've definitely turned a corner and are extremely pleased with our continued improvement," said Cornerstone's President and CEO Frank Hughes. "Our goal is to continue strengthening Cornerstone's foundation, so that we can build for the future and continue serving our Chattanooga market."
Cornerstone is a single-bank holding company, with $440 million in assets, serving the Chattanooga, Tennessee MSA, with five branches throughout Chattanooga and one loan production office in Dalton, Georgia. Locally owned and locally operated, Cornerstone specializes in providing a comprehensive range of customized financial solutions for businesses and individuals.
Certain of the statements made in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of Cornerstone and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which Cornerstone operates, governmental regulations, the company's competitive environment, cyclical and seasonal fluctuations in its operating results, and other risks discussed in Cornerstone's Form 10-K and other filings with the Securities and Exchange Commission.
| Cornerstone Bancshares, Inc. and Subsidiary |
||||||
| Fourth Quarter Financial Highlights |
||||||
| December 31, 2012 and 2011 |
||||||
| (Unaudited) |
||||||
| (Amounts in thousands, except per common share data) |
2012 |
2011 |
% Change |
|||
| Balance Sheet Data at December 31 |
||||||
| Total assets |
$ 440,463 |
$ 422,655 |
4.2 |
|||
| Interest-earning assets |
410,032 |
393,436 |
4.2 |
|||
| Loans |
276,992 |
267,765 |
3.4 |
|||
| Foreclosed assets |
20,332 |
18,524 |
9.8 |
|||
| Deposits |
341,897 |
314,042 |
8.9 |
|||
| Other interest-bearing liabilities |
56,762 |
72,436 |
(21.6) |
|||
| Shareholders' equity |
40,889 |
35,208 |
16.1 |
|||
| Loan to deposit ratio |
81.02% |
85.26% |
(5.0) |
|||
| Tier 1 leverage ratio (Bank, est) |
8.37% |
8.04% |
4.1 |
|||
| Total risk-based capital ratio (Bank, est) |
12.91% |
12.99% |
(0.6) |
|||
| Outstanding common shares |
6,500 |
6,500 |
- |
|||
| Book value per common share |
$ 4.01 |
$ 3.89 |
3.0 |
|||
| Tangible book value per common share |
$ 4.01 |
$ 3.89 |
3.0 |
|||
| Market value per common share as of December 31 |
$ 2.29 |
$ 1.50 |
52.7 |
|||
| Loan Quality Data |
||||||
| Nonaccruing loans |
6,006 |
7,882 |
(23.8) |
|||
| Loans past due 90 days – accruing |
- |
- |
- |
|||
| Net charge-offs YTD |
1,689 |
2,177 |
(22.4) |
|||
| Allowance for loan losses |
6,141 |
7,400 |
(17.0) |
|||
| Allowance for loan losses to total loans |
2.22% |
2.76% |
||||
| Nonperforming assets to total assets |
5.98% |
6.26% |
||||
| Performance Data for the Year |
||||||
| Net income |
$ 1,402 |
$ 1,030 |
36.1 |
|||
| Return on average assets |
0.34% |
0.24% |
||||
| Return on average equity |
3.78% |
3.46% |
||||
| Net interest margin |
3.85% |
3.55% |
||||
| Per common share data: |
||||||
| Net income – basic |
$ 0.02 |
$ 0.05 |
||||
| Net income – diluted |
$ 0.02 |
$ 0.05 |
||||
| Common dividends |
$ - |
$ - |
||||
| Preferred dividends & accretion |
$ 2.50 |
$ 1.89 |
||||
| Average shares (000s): |
||||||
| Basic common stock |
6,500 |
6,500 |
||||
| Diluted common stock |
6,523 |
6,500 |
||||
| Preferred stock (actual) |
600 |
404 |
||||
| Cornerstone Bancshares, Inc. and Subsidiary |
||||||||
| Quarterly Earnings Summary |
||||||||
| (Unaudited) |
||||||||
| 2012 |
2011 |
Q4-12 / |
||||||
| Fourth |
Third |
Second |
First |
Fourth |
Q4-11 |
|||
| (Amounts in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
% Chg |
||
| Interest income |
||||||||
| Loans, including fees |
$ 4,718 |
$ 4,242 |
$ 4,186 |
$ 4,144 |
$ 4,437 |
6.3 |
||
| Securities and interest-bearing deposits at other financial institutions |
440 |
478 |
618 |
467 |
548 |
(19.7) |
||
| Federal funds sold and other earning assets |
16 |
15 |
13 |
15 |
16 |
5.1 |
||
| Total interest income |
5,174 |
4,735 |
4,817 |
4,626 |
5,001 |
3.5 |
||
| Interest expense |
||||||||
| Deposits |
673 |
756 |
768 |
820 |
924 |
(27.2) |
||
| Short-term borrowings |
17 |
22 |
23 |
32 |
27 |
(36.3) |
||
| FHLB advances and other borrowing |
391 |
394 |
426 |
462 |
454 |
(13.8) |
||
| Total interest expense |
1,081 |
1,172 |
1,217 |
1,314 |
1,405 |
(23.0) |
||
| Net interest income |
4,093 |
3,563 |
3,600 |
3,312 |
3,596 |
13.8 |
||
| Provision for loan losses |
330 |
100 |
- |
- |
300 |
10.0 |
||
| Net interest income after the |
||||||||
| provision for loan losses |
3,763 |
3,463 |
3,600 |
3,312 |
3,296 |
14.2 |
||
| Noninterest income |
||||||||
| Customer service fees |
201 |
198 |
207 |
197 |
212 |
(5.2) |
||
| Other noninterest income |
13 |
12 |
19 |
20 |
15 |
(11.1) |
||
| Gain on sale of assets |
27 |
48 |
26 |
50 |
47 |
(42.6) |
||
| Total noninterest income |
241 |
258 |
252 |
267 |
274 |
(11.9) |
||
| Noninterest expense |
||||||||
| Salaries and employee benefits |
1,600 |
1,566 |
1,570 |
1,591 |
1,614 |
(0.9) |
||
| Net occupancy and equipment |
408 |
355 |
348 |
336 |
314 |
30.0 |
||
| Depository insurance |
121 |
237 |
207 |
203 |
255 |
(52.5) |
||
| Foreclosed asset expense (1) |
156 |
314 |
481 |
150 |
538 |
(71.0) |
||
| Other operating expense |
1,192 |
731 |
817 |
794 |
780 |
52.8 |
||
| Total noninterest expense |
3,477 |
3,203 |
3,423 |
3,074 |
3,501 |
(0.7) |
||
| Income before income taxes |
527 |
518 |
429 |
505 |
69 |
664.7 |
||
| Income tax (benefit) expense |
156 |
154 |
118 |
149 |
(44) |
(454.5) |
||
| Net income |
$ 371 |
$ 364 |
$ 311 |
$ 356 |
$ 113 |
228.4 |
||
| Preferred stock dividends & accretion on preferred stock discount |
393 |
325 |
296 |
280 |
267 |
47.2 |
||
| Net income / (loss) available to common |
(22) |
39 |
15 |
76 |
(154) |
(85.7) |
||
| Net income / (loss) per common share: |
||||||||
| Basic |
$ (0.00) |
$ 0.01 |
$ - |
$ 0.01 |
$ (0.02) |
(85.7) |
||
| Diluted |
$ (0.00) |
$ 0.01 |
$ - |
$ 0.01 |
$ (0.02) |
(85.7) |
||
| Average basic shares |
6,500 |
6,500 |
6,500 |
6,500 |
6,500 |
- |
||
| Average common diluted shares |
6,503 |
6,503 |
6,581 |
6,586 |
6,500 |
0.0 |
||
| Performance Ratios |
||||||||
| Return on average equity |
3.81% |
3.88% |
3.42% |
4.00% |
1.37% |
177.7 |
||
| Return on average assets |
0.35% |
0.35% |
0.30% |
0.35% |
0.11% |
225.3 |
||
| Net interest margin |
4.21% |
3.70% |
3.87% |
3.59% |
3.72% |
13.4 |
||
| Average equity |
38,926 |
37,501 |
36,423 |
35,587 |
32,912 |
18.3 |
||
| Average assets |
420,608 |
418,443 |
412,305 |
408,711 |
416,562 |
1.0 |
||
| Average interest-earning assets |
391,197 |
389,458 |
380,631 |
378,335 |
390,756 |
0.1 |
||
| (1) Includes OREO adjustments to fair value |
||||||||
| Cornerstone Bancshares, Inc. and Subsidiary |
||||||
| Loan Loss Allowance and Asset Quality Review |
||||||
| 2012 |
2011 |
|||||
| Fourth |
Third |
Second |
First |
Fourth |
||
| (Amounts in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
| Allowance for loan losses |
||||||
| Balance at beginning of period |
$ 5,280 |
$ 6,029 |
$ 6,024 |
$ 7,400 |
$ 6,864 |
|
| Provision for loan losses |
330 |
100 |
- |
- |
300 |
|
| Net charge-offs |
531 |
(849) |
5 |
(1,376) |
236 |
|
| Balance at end of period |
$ 6,141 |
$ 5,280 |
$ 6,029 |
$ 6,024 |
$ 7,400 |
|
| As a % of loans |
2.22% |
1.93% |
2.29% |
2.29% |
2.76% |
|
| As a % of nonperforming loans |
102.24% |
66.26% |
84.63% |
55.95% |
93.90% |
|
| As a % of nonperforming assets |
23.32% |
17.40% |
20.60% |
20.27% |
28.03% |
|
| Net charge-offs as a % of loans (a) |
-0.77% |
1.24% |
-0.01% |
2.10% |
-0.35% |
|
| Risk element assets |
||||||
| Accruing troubled debt restructured |
$ 5,316 |
$ 5,328 |
$ 2,775 |
$ 2,418 |
$ 2,750 |
|
| Loans past due 30-89 days |
$ 6,534 |
$ 3,685 |
$ 2,495 |
$ 5,040 |
$ 8,158 |
|
| Nonaccruing loans |
$ 6,006 |
$ 7,968 |
$ 7,124 |
$ 10,767 |
$ 7,882 |
|
| Loans past due 90 days – accruing |
- |
- |
- |
- |
- |
|
| Total nonperforming loans |
$ 6,006 |
$ 7,968 |
$ 7,124 |
$ 10,767 |
$ 7,882 |
|
| Repossessed assets |
32 |
39 |
83 |
- |
- |
|
| Other real estate owned (b)(c) |
$ 20,300 |
$ 22,337 |
$ 22,061 |
$ 18,957 |
$ 18,524 |
|
| Total nonperforming assets |
$ 26,338 |
$ 30,344 |
$ 29,268 |
$ 29,724 |
$ 26,406 |
|
| Nonperforming loans as a % of loans |
2.17% |
2.91% |
2.70% |
4.10% |
2.94% |
|
| Nonperforming assets as a % of loans |
||||||
| and other real estate owned |
8.86% |
10.25% |
10.24% |
10.55% |
9.22% |
|
| Total loans |
276,992 |
273,820 |
263,749 |
262,788 |
267,765 |
|
| (a) Annualized |
||||||
| (b) Properties sold during 4th Q 2012 |
$ 3,090 |
|||||
| (c) Properties under contract to sell |
$ 474 |
|||||
| Cornerstone Bancshares, Inc. and Subsidiary |
|||||||||||
| Net Interest Margin Analysis |
|||||||||||
| Taxable Equivalent Basis |
|||||||||||
| Three months ended |
|||||||||||
| December 31 |
|||||||||||
| (Amounts in thousands) |
|||||||||||
| Assets |
2012 |
2011 |
|||||||||
| Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||
| Earning assets: |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
|||||
| Loans, net of unearned income |
$ 276,694 |
$ 4,718 |
6.76% |
$ 268,349 |
$ 4,437 |
6.56% |
|||||
| Investment securities |
82,917 |
440 |
2.41% |
96,407 |
548 |
2.52% |
|||||
| Other earning assets |
31,586 |
16 |
0.21% |
26,000 |
16 |
0.24% |
|||||
| Total earning assets |
391,197 |
$ 5,174 |
5.31% |
390,756 |
$ 5,001 |
5.14% |
|||||
| Allowance for loan losses |
(5,530) |
(6,871) |
|||||||||
| Cash and other assets |
34,941 |
32,677 |
|||||||||
| TOTAL ASSETS |
$ 420,608 |
$ 416,562 |
|||||||||
| Liabilities and Shareholders' Equity |
|||||||||||
| Interest-bearing liabilities: |
|||||||||||
| Interest-bearing demand deposits |
$ 26,355 |
$ 21 |
0.32% |
$ 22,845 |
$ 19 |
0.33% |
|||||
| Savings deposits |
11,059 |
9 |
0.34% |
9,786 |
13 |
0.51% |
|||||
| MMDA's |
66,838 |
117 |
0.69% |
35,119 |
88 |
1.00% |
|||||
| Time deposits |
176,882 |
525 |
1.18% |
207,850 |
804 |
1.53% |
|||||
| Federal funds purchased and securities |
|||||||||||
| sold under agreements to repurchase |
18,343 |
17 |
0.37% |
21,079 |
28 |
0.52% |
|||||
| Federal Home Loan Bank and other borrowings |
37,175 |
392 |
4.18% |
43,045 |
455 |
4.19% |
|||||
| Total interest-bearing liabilities |
336,652 |
1,081 |
1.27% |
339,723 |
1,405 |
1.64% |
|||||
| Net interest spread |
$ 4,093 |
4.04% |
$ 3,596 |
3.50% |
|||||||
| Noninterest-bearing demand deposits |
43,662 |
43,728 |
|||||||||
| Accrued expenses and other liabilities |
1,368 |
198 |
|||||||||
| Shareholders' equity |
38,926 |
32,912 |
|||||||||
| TOTAL LIABILITIES AND |
|||||||||||
| SHAREHOLDERS' EQUITY |
$ 420,608 |
$ 416,562 |
|||||||||
| Net yield on earning assets |
4.21% |
3.72% |
|||||||||
| Taxable equivalent adjustment: |
|||||||||||
| Loans |
0 |
0 |
|||||||||
| Investment securities |
63 |
64 |
|||||||||
| Total adjustment |
63 |
64 |
|||||||||
| Cornerstone Bancshares, Inc. and Subsidiary |
|||||||||||
| Net Interest Margin Analysis |
|||||||||||
| Taxable Equivalent Basis |
|||||||||||
| Twelve months ended |
|||||||||||
| December 31 |
|||||||||||
| (Amounts in thousands) |
|||||||||||
| Assets |
2012 |
2011 |
|||||||||
| Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||
| Earning assets: |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
|||||
| Loans, net of unearned income |
$ 268,828 |
$ 17,289 |
6.43% |
$ 273,523 |
$ 18,129 |
6.63% |
|||||
| Investment securities |
89,587 |
2,004 |
2.53% |
108,705 |
2,312 |
2.38% |
|||||
| Other earning assets |
27,010 |
60 |
0.22% |
23,232 |
53 |
0.23% |
|||||
| Total earning assets |
385,425 |
$ 19,353 |
5.09% |
405,460 |
$ 20,494 |
5.12% |
|||||
| Allowance for loan losses |
(6,140) |
(7,496) |
|||||||||
| Cash and other assets |
35,756 |
32,721 |
|||||||||
| TOTAL ASSETS |
$ 415,041 |
$ 430,685 |
|||||||||
| Liabilities and Shareholders' Equity |
|||||||||||
| Interest-bearing liabilities: |
|||||||||||
| Interest-bearing demand deposits |
$ 26,483 |
$ 87 |
0.33% |
$ 25,741 |
$ 84 |
0.33% |
|||||
| Savings deposits |
10,504 |
38 |
0.36% |
9,750 |
50 |
0.51% |
|||||
| MMDA's |
52,454 |
422 |
0.80% |
29,149 |
291 |
1.00% |
|||||
| Time deposits |
187,733 |
2,471 |
1.32% |
226,720 |
3,768 |
1.66% |
|||||
| Federal funds purchased and securities |
|||||||||||
| sold under agreements to repurchase |
21,312 |
94 |
0.44% |
22,808 |
125 |
0.55% |
|||||
| Federal Home Loan Bank and other borrowings |
39,282 |
1,673 |
4.26% |
47,745 |
2,044 |
4.28% |
|||||
| Total interest-bearing liabilities |
337,768 |
4,785 |
1.42% |
361,913 |
6,362 |
1.76% |
|||||
| Net interest spread |
$ 14,568 |
3.67% |
$ 14,132 |
3.36% |
|||||||
| Noninterest-bearing demand deposits |
39,936 |
39,042 |
|||||||||
| Accrued expenses and other liabilities |
222 |
(10) |
|||||||||
| Shareholders' equity |
37,115 |
29,740 |
|||||||||
| TOTAL LIABILITIES AND |
|||||||||||
| SHAREHOLDERS' EQUITY |
$ 415,041 |
$ 430,685 |
|||||||||
| Net yield on earning assets |
3.85% |
3.55% |
|||||||||
| Taxable equivalent adjustment: |
|||||||||||
| Loans |
0 |
0 |
|||||||||
| Investment securities |
260 |
276 |
|||||||||
| Total adjustment |
260 |
276 |
|||||||||
| Cornerstone Bancshares, Inc. and Subsidiary |
|||||
| Loan Stratification |
|||||
| 2012 |
2011 |
||||
| (Amounts in thousands) |
Fourth |
% of |
Fourth |
% of |
% Dollar |
| Quarter |
Total |
Quarter |
Total |
Change |
|
| Non-residential real estate |
|||||
| Owner occupied |
$ 58,425 |
21.1 |
$ 62,999 |
23.5 |
(7.3) |
| Non-owner occupied |
66,468 |
24.0 |
62,958 |
23.5 |
5.6 |
| Multi-family real estate |
8,508 |
3.1 |
11,023 |
4.1 |
(22.8) |
| 1-4 family construction |
6,937 |
2.5 |
5,775 |
2.2 |
20.1 |
| Commercial land and lot development |
25,551 |
9.2 |
18,629 |
7.0 |
37.2 |
| Total non-residential real estate |
165,889 |
59.9 |
161,384 |
60.3 |
2.8 |
| Residential real estate |
|||||
| First mortgage - 1-4 family |
44,145 |
15.9 |
41,226 |
15.4 |
7.1 |
| Second mortgage - 1-4 family |
3,348 |
1.2 |
3,662 |
1.4 |
(8.6) |
| Home equity lines |
15,194 |
5.5 |
14,632 |
5.5 |
3.8 |
| Total residential real estate |
62,687 |
22.6 |
59,520 |
22.2 |
5.3 |
| Total real estate loans |
228,576 |
82.5 |
220,904 |
82.5 |
3.5 |
| Commercial |
38,101 |
13.8 |
35,608 |
13.3 |
7.0 |
| Agricultural & other |
8,378 |
3.0 |
8,737 |
3.3 |
(4.1) |
| Consumer |
1,937 |
0.7 |
2,516 |
0.9 |
(23.0) |
| Total loans, net of unearned fees |
$ 276,992 |
100.0 |
$ 267,765 |
100.0 |
3.4 |
| Cornerstone Bancshares, Inc. and Subsidiary |
|||||||||
| Consolidated Balance Sheets |
|||||||||
| Unaudited |
|||||||||
| December 31, |
December 31, |
||||||||
| ASSETS |
2012 |
2011 |
|||||||
| Cash and due from banks |
$ 1,836,175 |
$ 1,660,204 |
|||||||
| Interest-bearing deposits at other financial institutions |
54,575,759 |
37,222,487 |
|||||||
| Total cash and cash equivalents |
|||||||||
| 56,411,934 |
38,882,691 |
||||||||
| Securities available for sale |
76,096,646 |
86,057,437 |
|||||||
| Securities held to maturity (fair value |
|||||||||
| approximates $46,096 in 2012 and $70,484 in 2011) |
45,086 |
68,643 |
|||||||
| Federal Home Loan Bank stock, at cost |
2,322,900 |
2,322,900 |
|||||||
| Loans, net of allowance for loan losses of |
|||||||||
| $6,141,281 in 2012 and $7,400,049 in 2011 |
270,850,465 |
260,364,569 |
|||||||
| Bank premises and equipment, net |
5,399,340 |
5,712,003 |
|||||||
| Accrued interest receivable |
1,213,778 |
1,327,458 |
|||||||
| Foreclosed assets |
20,332,313 |
18,523,960 |
|||||||
| Other assets |
7,790,634 |
9,395,721 |
|||||||
| Total Assets |
$ 440,463,096 |
$ 422,655,382 |
|||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||
| Deposits: |
|||||||||
| Noninterest-bearing demand deposits |
$ 57,070,534 |
$ 43,989,943 |
|||||||
| Interest-bearing demand deposits |
30,178,624 |
22,353,384 |
|||||||
| Savings deposits and money market accounts |
80,994,239 |
46,857,118 |
|||||||
| Time deposits |
173,653,892 |
200,841,499 |
|||||||
| Total deposits |
341,897,289 |
314,041,944 |
|||||||
| Accrued interest payable |
120,558 |
110,703 |
|||||||
| Federal funds purchased and securities sold under |
|||||||||
| agreements to repurchase |
19,587,387 |
29,390,810 |
|||||||
| Federal Home Loan Bank advances and other borrowings |
37,175,000 |
43,045,000 |
|||||||
| Other liabilities |
794,026 |
858,620 |
|||||||
| Total Liabilities |
399,574,260 |
387,447,077 |
|||||||
| Stockholders' equity: |
|||||||||
| Preferred stock - no par value; 2,000,000 shares authorized; |
|||||||||
| 600,000 and 403,989 shares issued and outstanding in 2012 and 2011, respectively. |
14,821,546 |
9,899,544 |
|||||||
| Common stock - $l.00 par value; 20,000,000 shares authorized; |
|||||||||
| 6,709,199 issued in 2012 and 2011; |
|||||||||
| 6,500,396 outstanding in 2012 and 2011 |
6,500,396 |
6,500,396 |
|||||||
| Additional paid-in capital |
21,390,486 |
21,316,438 |
|||||||
| Retained deficit |
(3,274,986) |
(3,627,208) |
|||||||
| Accumulated other comprehensive income |
1,451,394 |
1,119,135 |
|||||||
| Total Stockholders' Equity |
40,888,836 |
35,208,305 |
|||||||
| Total Liabilities and Stockholders' Equity |
$ 440,463,096 |
$ 422,655,382 |
|||||||
| The Notes to Consolidated Financial Statements are an integral part of these statements. |
|||||||||
| Cornerstone Bancshares, Inc. and Subsidiary |
||||||||||||
| Consolidated Statements of Income |
||||||||||||
| Unaudited |
Unaudited |
|||||||||||
| Three months ended |
Twelve months ended |
|||||||||||
| December 31, |
December 31, |
|||||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||||
| INTEREST INCOME |
||||||||||||
| Loans, including fees |
$ 4,717,662 |
$ 4,437,342 |
$ 17,288,855 |
$ 18,128,907 |
||||||||
| Securities and interest-bearing deposits at other financial institutions |
440,187 |
548,211 |
2,003,620 |
2,311,690 |
||||||||
| Federal funds sold & other earning assets |
16,329 |
15,542 |
60,404 |
53,139 |
||||||||
| Total interest income |
5,174,178 |
5,001,095 |
19,352,879 |
20,493,736 |
||||||||
| INTEREST EXPENSE |
||||||||||||
| Time deposits |
524,794 |
803,803 |
2,471,135 |
3,767,582 |
||||||||
| Other deposits |
147,953 |
119,854 |
546,812 |
424,387 |
||||||||
| Federal funds purchased and securities |
||||||||||||
| sold under agreements to repurchase |
17,209 |
27,688 |
94,402 |
125,538 |
||||||||
| Federal Home Loan Bank advances and other borrowings |
391,468 |
453,756 |
1,672,478 |
2,044,361 |
||||||||
| Total interest expense |
1,081,424 |
1,405,101 |
4,784,827 |
6,361,868 |
||||||||
| Net interest income before provision for loan losses |
4,092,754 |
3,595,994 |
14,568,052 |
14,131,868 |
||||||||
| Provision for loan losses |
330,000 |
300,000 |
430,000 |
445,000 |
||||||||
| Net interest income after provision for loan losses |
3,762,754 |
3,295,994 |
14,138,052 |
13,686,868 |
||||||||
| NONINTEREST INCOME |
||||||||||||
| Customer service fees |
201,144 |
212,058 |
803,251 |
868,935 |
||||||||
| Net gains from sale of securities |
- |
- |
- |
107,413 |
||||||||
| Net gains from sale of loans and other assets |
27,601 |
47,131 |
151,710 |
134,997 |
||||||||
| Other noninterest income |
12,675 |
14,476 |
64,519 |
71,542 |
||||||||
| Total noninterest income |
241,420 |
273,665 |
1,019,480 |
1,182,887 |
||||||||
| NONINTEREST EXPENSE |
||||||||||||
| Salaries and employee benefits |
1,600,177 |
1,613,574 |
6,327,226 |
6,117,063 |
||||||||
| Net occupancy and equipment expense |
408,908 |
313,736 |
1,447,204 |
1,431,863 |
||||||||
| Depository insurance |
121,072 |
254,844 |
803,902 |
1,052,591 |
||||||||
| Foreclosed assets, net |
155,507 |
538,053 |
1,100,670 |
1,922,988 |
||||||||
| Other operating expenses |
1,191,695 |
780,505 |
3,498,867 |
3,126,998 |
||||||||
| Total noninterest expenses |
3,477,359 |
3,500,712 |
13,177,869 |
13,651,503 |
||||||||
| Income before provision for income taxes |
526,815 |
68,947 |
1,979,663 |
1,218,252 |
||||||||
| Provision (benefit) for income taxes |
156,100 |
(43,875) |
577,600 |
188,200 |
||||||||
| Net income |
370,715 |
$ 112,822 |
1,402,063 |
1,030,052 |
||||||||
| Preferred stock dividend requirements |
375,000 |
252,493 |
1,229,780 |
651,119 |
||||||||
| Accretion on preferred stock discount |
17,845 |
14,299 |
63,924 |
36,718 |
||||||||
| Net (loss) income available to common shareholders |
$ (22,130) |
$ (153,970) |
$ 108,359 |
$ 342,215 |
||||||||
| (LOSS) EARNINGS PER COMMON SHARE |
||||||||||||
| Basic |
$ - |
$ (0.02) |
$ 0.02 |
$ 0.05 |
||||||||
| Diluted |
$ - |
$ (0.02) |
$ 0.02 |
$ 0.05 |
||||||||
| DIVIDENDS DECLARED PER COMMON SHARE |
$ - |
$ - |
$ - |
$ - |
||||||||
| The Notes to Consolidated Financial Statements are an integral part of these statements. |
||||||||||||
| Cornerstone Bancshares, Inc. and Subsidiary |
|||||||||||||
| Consolidated Statement of Changes in Stockholders' Equity - Unaudited |
|||||||||||||
| For the 12 months ended December 31, 2012 |
|||||||||||||
| Accumulated |
|||||||||||||
| Additional |
Other |
Total |
|||||||||||
| Preferred |
Common |
Paid-in |
Retained |
Comprehensive |
Stockholders' |
||||||||
| Stock |
Stock |
Capital |
Deficit |
Income |
Equity |
||||||||
| BALANCE, December 31, 2011 |
$ 9,899,544 |
$ 6,500,396 |
$ 21,316,438 |
$ (3,627,208) |
$ 1,119,135 |
$ 35,208,305 |
|||||||
| Employee compensation stock option expense |
- |
- |
74,048 |
- |
- |
74,048 |
|||||||
| Issuance of Series A Convertible Preferred Stock |
4,858,078 |
- |
- |
- |
- |
4,858,078 |
|||||||
| 0 |
|||||||||||||
| Preferred stock dividends paid |
- |
- |
- |
(985,917) |
- |
(985,917) |
|||||||
| Accretion on preferred stock |
63,924 |
- |
- |
(63,924) |
- |
- |
|||||||
| Net income |
- |
- |
- |
1,402,063 |
- |
1,402,063 |
|||||||
| Other comprehensive income, net of tax |
- |
- |
- |
- |
332,259 |
332,259 |
|||||||
| BALANCE, December 31, 2012 |
$ 14,821,546 |
$ 6,500,396 |
$ 21,390,486 |
$ (3,274,986) |
$ 1,451,394 |
$ 40,888,836 |
|||||||
| The Notes to Consolidated Financial Statements are an integral part of these statements. |
|||||||||||||
SOURCE Cornerstone Bancshares, Inc.
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