Cornerstone Bancorp Earns $2.08 Million for the Fourth Quarter, and $9.83 Million for the Year 2021

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PALATINE, Ill., Jan. 21, 2022 /PRNewswire/ -- Cornerstone Bancorp, Inc. (OTC Pink: CNBP), the bank holding company for Cornerstone National Bank & Trust Company (collectively "Cornerstone"), today reported net income of $2.08 million, or $2.10 per diluted share, for the fourth quarter of 2021, compared to $2.29 million, or $2.30 per diluted share, for the fourth quarter of 2020.

For the year ended December 31, 2021, net income increased 17.3% to $9.83 million, or $9.88 per diluted share, compared to $8.37 million, or $8.42 per diluted share, for the year ended December 31, 2020. Continued core deposit growth, mortgage revenue, plus fee and interest income from the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") contributed to profitability for the year. All 2021 results are unaudited.

"Cornerstone's performance in 2021 were largely due our success in supporting our customers with PPP," stated Jeffrey T. Boundy, President & CEO of Cornerstone National Bank & Trust Company. "Throughout the PPP, we funded $320.9 million of loans. Only $31.6 million remain outstanding as direct result of our team's forgiveness efforts with their clients."

"The remainder of our loan portfolio performed exceptionally with growth of more than $96 million this year," Boundy continued. "We are pleased with the level of growth in our loan portfolio as well as the number of new client relationships and assets under management in our Trust Department which also had a strong 2021."

Fourth Quarter and Full Year 2021 Highlights:

  • Net income $2.08 million, or $2.10 per diluted share, in the fourth quarter of 2021, compared to $2.29 million, or $2.30 per diluted share, in the fourth quarter of 2020.

  • For 2021, net income increased 17.3%, to $9.83 million, or $9.88 per diluted share compared to $8.37 million, or $8.42 per diluted share, in 2020.

  • Interest and fees recognized on Paycheck Protections Program (PPP) loans totaled $1.2 million in the fourth quarter of 2021 versus $2.8 million a year earlier.

  • The activity in the Mortgage Division continued at a favorable pace as interest rates remained at low levels. The Bank sold $32.4 million of qualified mortgage loans and realized gross revenue of $576,700 during the fourth quarter of 2021.

  • Total assets increased 6.7% to $950.7 million at year-end, compared to $891.2 million a year earlier.

  • Tangible shareholders' equity improved 19.9% to $56.9 million at December 31, 2021, compared to $47.4 million a year earlier.

  • The loan portfolio, excluding PPP loans, totaled $559.9 million at December 31, 2021, $96.1 million, or 20.7%, higher than a year earlier.

  • Total deposits and repurchase agreements increased 6.4% to $860.1 million at December 31, 2021, compared to $808.1 million a year earlier.

  • Trust assets increased 25.2% to $1.0 billion at December 31, 2021 from $811.9 million a year earlier.

  • Tangible book value per share increased 19.9% to $57.20 at year-end, compared to $47.72 per diluted share at December 31, 2020.

  • The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 8.10% at December 31, 2021 compared to 8.22% at December 31, 2020.

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 checking accounts 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.cornerstonenb.com.

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 TABLES FOLLOW

Financial Highlights (Unaudited)

($ in Thousands, Except Share and Per Share Data)
















For the Quarter Ending


Year To Date

Income Statement

31-Dec-21
(Unaudited)

31-Dec-20

%Change


31-Dec-21
(Unaudited)

31-Dec-20

Net Interest Income

$ 7,317

$ 7,855

-6.8%


$ 29,159

$ 26,662

Provision for Loan Losses

-

650

N\A


50

900

Noninterest Income

1,832

2,900

-36.8%


7,979

10,222

Noninterest Expense

6,160

6,878

-10.4%


23,314

24,315

Provision for Income Taxes

905

939

-3.6%


3,948

3,295

Net Income

$ 2,084

$ 2,288

-8.9%


$ 9,826

$ 8,374








Ratios







Return on Average Assets *

0.79%

0.99%

-20.0%


1.00%

1.01%

Return on Average Stockholders' Equity*

14.67%

19.89%

-26.2%


18.80%

19.82%

Net Interest Margin

2.88%

3.45%

-16.6%


3.05%

3.27%

Allowance As A % Of Loans Outstanding**

1.44%

1.56%

-7.4%


1.44%

1.56%

Dividends Per Share

$ -

$ -

N\A


$ -

$ -

Earnings Per Share

$ 2.10

$ 2.30

-8.9%


$ 9.88

$ 8.42









End of Period


End of Period

Balance Sheet Data

31-Dec-21
(Unaudited)

31-Dec-20

%Change


31-Dec-19

31-Dec-18

Total Assets

$ 950,731

$ 891,183

6.7%


$ 633,145

$ 568,895

Loans, Net of Allowance for Loan Loss

$ 583,423

$ 587,906

-0.8%


$ 463,814

$ 413,806

Deposits and Repurchase Agreements

$ 860,067

$ 808,124

6.4%


$ 572,617

$ 512,220

Trust Preferred Securities

$ 10,310

$ 10,310

0.0%


$ 10,310

$ 10,310

Other Borrowings

$ 17,763

$ 19,755

-10.1%


$ 8,500

$ 2,500

Tangible Stockholders' Equity

$ 56,865

$ 47,442

19.9%


$ 38,005

$ 41,781

Trust Assets

$ 1,016,393

$ 811,885

25.2%


$ 783,631

$ 675,577








Stock Value Per Common Share Data







Price-To-Earnings Ratio

6.47

7.12

-9.1%


9.67

8.41

Price-To-Tangible Book Value Ratio

1.12

1.26

-11.0%


1.68

1.32

Tangible Book Value Per Share

$ 57.20

$ 47.72

19.9%


$ 38.23

$ 59.12

Number of Shares Outstanding

994,088

994,088



994,088

706,713

Average Number of Shares Outstanding

994,088

994,088



923,436

706,539

Stock Price - High

$ 64.00

$ 65.00



$ 78.00

$ 93.00

Low

$ 60.00

$ 52.51



$ 53.00

$ 68.00

Ending

$ 64.00

$ 60.00



$ 64.10

$ 78.00

Cision
Cision

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SOURCE Cornerstone Bancorp, Inc.