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

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RED BLUFF, Calif., January 20, 2022--(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/

Contacts

Jeffrey P. Finck
President & CEO
530.222.1460

Patrick E. Phelan
Chief Financial Officer
530.222.1460

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