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Cornerstone Community Bank Reports Financial Results for the Third Quarter Ended September 30, 2010

^{Published on 2010-10-29 16:05:54 - Market Wire}
 

RED BLUFF, Calif.--([ BUSINESS WIRE ])--Cornerstone Community Bank, (OTCBB: CRSB), announced today its financial results for the third quarter ended September 30, 2010.

"We have now recorded our fifth consecutive quarterly profit. Our bank continues to be well positioned for continued growth and profitability."

The Bank reported net income of $91,000, or $0.07 per diluted share, for the three months ended September 30, 2010 compared to net income of $74,000, or $0.06 per diluted share, for the same period last year. Net income for the nine months ended September 30, 2010 was $198,000, or $0.16 per diluted share compared to net income of $11,000, or $0.01 per diluted share, for the first nine months of 2009.

President and CEO, Jeffrey Finck stated, aWe have now recorded our fifth consecutive quarterly profit. Our bank continues to be well positioned for continued growth and profitability.a

Net Interest Income

Net interest income of $798,000 for the quarter ended September 30, 2010 represented an increase of approximately $93,000, or 13%, from $705,000 for the same quarter one year earlier. For the nine months ended September 30, 2010, net interest income of $2,265,000 increased $311,000, or 16%, from $1,954,000 for the first nine months of 2009.

Non-Interest Income

The Banka™s non-interest income for the quarter and nine months ended September 30, 2010 was $210,000 and $314,000, respectively, compared to $120,000 and $202,000, respectively, for the same periods one year ago.

Non-Interest Expense

Non-interest expense was $712,000 for the quarter ended September 30, 2010 compared to $671,000 for the same period one year earlier, representing an increase of $41,000, or 6%. For the nine months ended September 30, 2010, non-interest expense was $2,079,000 compared to $1,984,000 for the same period of 2009, representing an increase of $95,000, or 5%. The Bank employed 19 full-time equivalent employees at September 30, 2010 and 2009.

The Banka™s efficiency ratio, the ratio of non-interest expense to revenues, was 70.63% during the quarter ended September 30, 2010 compared to 81.33% during the same period last year. For the nine months ended September 30, 2010, the efficiency ratio was 80.61% compared to 92.02% during the same period of 2009.

Balance Sheet

The Bank had total assets at September 30, 2010 of $76.6 million, compared to $67.0 million at September 30, 2009, representing growth of $9.6 million, or 14%.

Total loans outstanding at September 30, 2010, net of unearned income, were $54.9 million compared to $48.1 million at September 30, 2009, representing an increase of $6.7 million, or 14%.

Total deposits were $67.1 million at September 30, 2010 compared to total deposits of $58.0 million at September 30, 2009, representing an increase of $9.1 million, or 16%.

Credit Quality

The allowance for loan losses was $978,000, or 1.78% of total loans at September 30, 2010, compared to $801,000, or 1.66% of total loans, at September 30, 2009. The provision for credit losses for the quarter ended September 30, 2010 was $205,000 compared to $80,000 for the quarter ended September 30, 2009. For the nine months ended September 30, 2010, the provision for credit losses was $301,000 compared to $160,000 for the same period in the prior year.

Nonperforming assets at September 30, 2010 consisted of non-accrual loans of $248,000 compared to non-accrual loans of $57,000 at September 30, 2009.

The bank recognized $166,000 in net loan charge-offs during the nine months ended September 30, 2010 compared to $149,000 for the same period in the prior year.

Capital Adequacy

At September 30, 2010, shareholdersa™ equity totaled $9.2 million compared to $8.7 million at September 30, 2009. The total risk-based capital ratio, tier one capital ratio, and leverage ratio was 16.39%, 15.14% and 11.97%, respectively, all exceeding the regulatory standards for awell-capitalizeda institutions of 10.00%, 6.00%, 5.00%, respectively.

About Cornerstone Community Bank

Cornerstone Community Bank is a California state-chartered bank with its headquarters office in Red Bluff and a loan production office in Redding. The Bank provides commercial banking services, including a wide variety of deposit products and real estate, construction, commercial and consumer loans to small businesses, professionals and individuals. Additional information about the Bank is available on its website at [ www.ccbca.com ].

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. 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 abelieve,a aexpect,a aanticipate,a aintend,a aplan,a aestimate,a or words of similar meaning, or future or conditional verbs such as awill,a awould,a ashould,a acould,a or amay.a Forward-looking statements describe future plans, strategies and expectations.Forward-looking statements are based on currently available information, expectations, assumptions, projections, and managementa™s judgment about the Bank, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing managementa™s views as of any subsequent date.Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release.Factors that might cause such differences include, but are not limited to: the Banka™s ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Bank conducts its operations; changes in interest rates; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Banka™s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.