Cornerstone Community Bancorp Reports Financial Results For the Fourth Quarter and Full Year Ended December 31, 2021

RED BLUFF, Calif.--(BUSINESS WIRE)-- Cornerstone Community Bancorp (OTC Pink: CRSB) announced today its financial results for the fourth quarter and full year ended December 31, 2021.

The Company reported net income of $1,967,000 for the three months ended December 31, 2021 compared to net income of $2,059,000 for the same period last year. Diluted earnings per share were $1.29 for the three months ended December 31, 2021 compared to $1.36 for the same period last year.

The return on average assets for the three months ended December 31, 2021 was 1.41% and the return on average equity was 21.63%. The tax-equivalent net interest margin was 3.59% for the three months ended December 31, 2021 compared to 3.81% for the same period last year and the efficiency ratio was 43.43% for the three months ended December 31, 2021 compared to 39.69% for the same period last year.

For the year ended December 31, 2021, the Company reported record net income of $7,915,000 compared to net income of $4,626,000 for the same period last year. Diluted earnings per share were $5.25 for the year ended December 31, 2021 compared to $3.04 for the same period last year.

The return on average assets for the year ended December 31, 2021 was 1.46% and the return on average equity was 23.35%.

President and CEO, Jeff Finck stated, "We are very pleased with our 2021 results. Loans and deposits grew at a strong pace. We look forward to 2022 with the opening of our Anderson branch in the first quarter."

Net Interest Income

Net interest income increased to $4,781,000 for the quarter ended December 31, 2021 compared to $4,465,000 for the same quarter last year. For the year ended December 31, 2021, net interest income increased to $17,993,000 compared to $13,836,000 for the same period last year.

Provision for credit losses

Provision for credit losses were $150,000 for the quarter ended December 31, 2021 compared to no provision for the same quarter last year. For the year ended December 31, 2021, the Company recorded a $1,050,000 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 December 31, 2021 was $365,000 compared to $345,000 for the quarter ended December 31, 2020. For the year ended December 31, 2021, non-interest income was $2,378,000 compared to $1,239,000 for the same period last year.

Non-Interest Expense

Non-interest expense was $2,235,000 for the quarter ended December 31, 2021 compared to $1,909,000 for the same period last year. For the year ended December 31, 2021, non-interest expense was $8,200,000 compared to $7,156,000 for the same period last year.

Balance Sheet

Total loans, net of unearned income at December 31, 2021 were $387.4 million compared to $332.2 million at December 31, 2020.

Total deposits were $547.7 million at December 31, 2021 compared to total deposits of $433.3 million at December 31, 2020.

Credit Quality

The allowance for loan losses was $5,059,000, or 1.31% of loans, net of unearned income at December 31, 2021, compared to $4,009,000, or 1.21% of loans, net of unearned income at December 31, 2020. There were no nonperforming assets at December 31, 2021 and December 31, 2020.

Capital

At December 31, 2021, shareholders' equity totaled $37.0 million compared to $30.1 million at December 31, 2020. Book value was $25.31 per share at December 31, 2021 compared to $20.87 per share at December 31, 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)
12/31/21	09/30/21	06/30/21	03/31/21	12/31/20
ASSETS
Cash and due from banks	$	4,552		$	4,765		$	5,450		$	5,417		$	3,811
Federal funds sold		121			2,600			2,256			5,761			14,166
Interest-bearing deposits		77,933			24,636			28,549			68,283			77,045
Investment securities		108,253			110,470			75,258			52,084			50,336
Loans held for sale		-			-			-			1,102			-
Loans, net of unearned income		387,374			388,532			390,748			382,253			332,176
Allowance for loan losses		(5,059	)		(4,909	)		(4,509	)		(4,409	)		(4,009	)
Loans, net		382,315			383,623			386,239			377,844			328,167
Premises and equipment, net		14,488			13,567			13,013			12,767			11,581
Other assets		15,622			14,863			14,972			13,974			12,724
Total assets	$	603,284		$	554,524		$	525,737		$	537,232		$	497,830
LIABILITIES
Deposits:
Demand noninterest-bearing	$	174,282		$	141,734		$	126,107		$	126,481		$	108,147
Demand interest-bearing		131,368			131,964			126,724			122,506			108,097
Money market and savings		163,946			150,149			150,086			163,232			146,655
Time deposits of less than $100,000		13,662			13,180			13,393			15,812			15,418
Time deposits of $100,000 or more		64,449			63,111			56,993			57,299			55,021
Total deposits		547,707			500,138			473,303			485,330			433,338
Borrowings and other obligations		5,000			5,000			5,000			5,000			15,000
Subordinated debentures		11,720			11,715			11,709			11,703			16,645
Interest payable and other liabilities		1,838			2,151			1,933			3,776			2,763
Total liabilities		566,265			519,004			491,945			505,809			467,746
SHAREHOLDERS' EQUITY
Common stock		14,913			14,814			14,771			14,681			14,584
Retained Earnings		23,051			21,084			18,999			17,183			15,136
Accumulated other comprehensive income (loss)		(945	)		(378	)		22			(441	)		364
Total shareholders' equity		37,019			35,520			33,792			31,423			30,084
Total liabilities and shareholders' equity	$	603,284		$	554,524		$	525,737		$	537,232		$	497,830
Total equity / total assets		6.14	%		6.41	%		6.43	%		5.85	%		6.04	%
Book value per share	$	25.31		$	24.37		$	23.22		$	21.65		$	20.87
Shares outstanding		1,462,591			1,457,591			1,455,091			1,451,091			1,441,241

CORNERSTONE COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended	Year ended
12/31/21	09/30/21	12/31/20	12/31/21	12/31/20
INTEREST INCOME
Loans	$	4,759		$	4,772		$	4,761		$	18,361		$	15,424
Federal funds sold		1			-			2			4			24
Investment securities		385			360			162			1,124			495
Other		60			35			51			180			174
Total interest income		5,205			5,167			4,976			19,669			16,117
INTEREST EXPENSE
Deposits:
Interest-bearing demand		49			46			55			187			181
Money market and savings		109			96			80			385			464
Time deposits		107			107			155			452			944
Other		159			162			221			652			692
Total interest expense		424			411			511			1,676			2,281
Net interest income		4,781			4,756			4,465			17,993			13,836
Provision for credit losses		150			400			-			1,050			1,600
Net interest income after provision for credit losses		4,631			4,356			4,465			16,943			12,236
NON-INTEREST INCOME
Service charges on deposit accounts		65			62			55			244			222
Gain on sale of loans		-			396			61			1,231			247
Gain (loss) on sale of other real estate owned		-			-			-			-			-
Gain (loss) on sale of securities		-			-			-			(45	)		91
Other non-interest income		300			256			229			948			679
Total non-interest income		365			714			345			2,378			1,239
OPERATING EXPENSES
Salaries and benefits		1,175			1,048			970			3,870			3,280
Premises and fixed assets		192			212			182			782			891
Other		868			877			757			3,548			2,985
Total operating expenses		2,235			2,137			1,909			8,200			7,156
Income before income taxes		2,761			2,933			2,901			11,121			6,319
Income taxes		794			848			842			3,206			1,693
NET INCOME	$	1,967		$	2,085		$	2,059		$	7,915		$	4,626
EARNINGS PER SHARE
Basic earnings per share	$	1.35		$	1.43		$	1.39		$	5.44		$	3.12
Diluted earnings per share	$	1.29		$	1.38		$	1.36		$	5.25		$	3.04
Average common shares outstanding		1,459,667			1,456,531			1,477,361			1,454,507			1,483,575
Average common and equivalent shares outstanding		1,518,908			1,512,738			1,511,365			1,507,561			1,522,714
PERFORMANCE MEASURES
Return on average assets		1.41	%		1.53	%		1.68	%		1.46	%		1.09	%
Return on average equity		21.63	%		23.52	%		27.70	%		23.35	%		16.53	%
Tax-equivalent net interest margin		3.59	%		3.66	%		3.81	%		3.50	%		3.45	%
Efficiency ratio		43.43	%		39.07	%		39.69	%		40.25	%		47.47	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220120005959/en/

Jeffrey P. Finck
President & CEO
530.222.1460

Patrick E. Phelan
Chief Financial Officer
530.222.1460

Source: Cornerstone Community Bancorp

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