Cornerstone Community Bancorp Achieves Q4 Earnings Growth
Cornerstone Community Bancorp Announces Financial Results
Cornerstone Community Bancorp reported impressive financial results for the fourth quarter ending December 31, 2024. With net income reaching $1,809,000 compared to $1,892,000 in the previous year, the company showcased resilience amid challenging financial conditions. This reflects a diluted earnings per share of $1.18 for the fourth quarter, slightly down from $1.24 a year earlier.
Performance Overview
In stark contrast, the annual performance reveals a net loss of $785,000 for 2024, a significant deviation from the prior year's net income of $7,371,000. This loss was primarily influenced by the charge-off of three related agricultural loans totaling $9.4 million during the third quarter. Diluted loss per share was reported at $(0.51), compared to earnings per share of $4.84 from the previous financial year.
Key Financial Highlights
Net Interest Income
Net interest income for the fourth quarter was recorded at $5,170,000, a decrease from $5,439,000 during the same period in the prior year. On an annual scale, net interest income fell to $19,582,000 against $21,805,000 for 2023. The tax-equivalent net interest margin stood at 3.23% for the quarter, down from 3.55% year-over-year.
Credit Loss Provisioning
For the quarter ended December 31, 2024, no provision for credit losses was noted. However, the company recognized a substantial provision of $9.7 million for credit losses on loans for the entire year, which is a marked increase from the $530,000 recorded for the same period last year.
Non-Interest Income and Expenses
Non-Interest Income Performance
Non-interest income increased slightly to $374,000 for the fourth quarter, compared to $358,000 a year earlier. For the year, it grew to $1,451,000 from $1,389,000 in 2023.
Non-Interest Expenses
The company’s non-interest expense rose to $3,227,000 for the quarter, from $3,173,000 in the previous year. Annual non-interest expenses amounted to $12,824,000 compared to $12,449,000 in 2023.
Balance Sheet Summary
As of December 31, 2024, total loans, net of unearned income, stood at $498.9 million, increasing from $482.2 million in 2023. Total deposits saw a similar upward trend, reaching $584.3 million compared to $564.5 million the year prior.
Credit Quality Metrics
The allowance for credit losses on loans at the end of December was $6,164,000, representing 1.24% of loans net of unearned income. Nonperforming assets amounted to $409,000, a significant increase from zero the previous year.
Capital and Ratios
At year-end, shareholders' equity totaled $42.6 million, down from $43.2 million in 2023. The book value per common share was recorded at $28.37 compared to $29.16 in the preceding year. Cornerstone Community Bancorp maintained a robust capital position, with a total risk-based capital ratio of 12.38% and a tier 1 capital to risk-weighted assets ratio of 11.25%.
Strategic Merger Announcement
President and CEO Matt Moseley expressed optimism regarding a recent merger agreement signed with Plumas Bancorp. "We are excited about this opportunity to join forces, which will enhance our services to customers and employees while benefiting all stakeholders with improved products and support capabilities," he stated.
About Cornerstone Community Bancorp
Cornerstone Community Bancorp is recognized as a reputable bank holding company, operating through its wholly-owned subsidiary, Cornerstone Community Bank. The bank serves communities by providing essential banking services to small and medium-sized enterprises, including not-for-profit organizations, real estate developers, and individual clients.
Frequently Asked Questions
What were the financial results for the fourth quarter?
Cornerstone Community Bancorp reported net income of $1,809,000 for the fourth quarter of 2024, compared to $1,892,000 in the previous year, with earnings per share of $1.18.
Why did the company incur a net loss for the year?
The net loss of $785,000 for 2024 was primarily due to the charge-off of three significant agricultural loans totaling $9.4 million.
What trends were observed in net interest income?
Net interest income decreased to $5,170,000 for the fourth quarter and to $19,582,000 for the full year compared to prior year figures.
How did non-interest income change?
Non-interest income rose to $374,000 in the fourth quarter and $1,451,000 for the year, reflecting growth over the previous year.
What is the company's capital position?
As of December 31, 2024, Cornerstone Community Bancorp maintained a total risk-based capital ratio of 12.38%, indicating a well-capitalized status.
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