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Cornerstone Community Bank Reports Financial Results for the Second Quarter Ended June 30, 2014

August 8, 2014



By a News Reporter-Staff News Editor at Economics Week -- Cornerstone Community Bank, (OTCBB:CRSB), announced its financial results for the second quarter ended June 30, 2014.

The Bank reported net income of $169,000 for the three months ended June 30, 2014 compared to net income of $282,000 for the same period last year. Prior year results were impacted by an $86,000 gain on the sale of securities and current year results were impacted by the $115,000 provision for income taxes as the Bank became fully taxable during 2014. Diluted earnings per share for the three months ended June 30, 2014 were $0.13 compared to $0.22 for the same period last year. Net income for the six months ended June 30, 2014 was $300,000, or $0.23 per diluted share compared to net income of $522,000, or $0.40 per diluted share, for the six months ended June 30, 2013. Prior year results were impacted by an $86,000 gain on the sale of securities and current year results were impacted by the $197,000 provision for income taxes as the Bank became fully taxable during 2014.

The return on average assets for the three months ended June 30, 2014 was 0.51% compared to 0.97% for the same period last year. The return on average equity was 5.18% for the three months ended June 30, 2014 compared to 9.24% for the same period last year. For the six months ended June 30, 2014, the return on average assets was 0.46% and the return on average equity was 4.66% compared to 0.91% and 8.63%, respectively, for the six months ended June 30, 2013.

"The positive trends in loan and deposit growth continue. Year-over-year loan growth of 32% and deposit growth of 26% position the bank well for the remainder of the year," said President and CEO Jeff Finck. Net Interest Income Net interest income of $1,353,000 for the quarter ended June 30, 2014 represented an increase of $191,000, or 16%, from $1,162,000 for the same quarter one year earlier. The net interest margin increased to 4.32% during the quarter ended June 30, 2014 compared to 4.20% during the same quarter last year. For the six months ended June 30, 2014, net interest income was $2,672,000 compared to $2,369,000 for the six months ending June 30, 2013 representing an increase of $303,000, or 13%. The net interest margin increased to 4.37% for the six months ended June 30, 2014 compared to 4.34% for the six months ended June 30, 2013. Provision for credit losses The provision for credit losses for the quarter ended June 30, 2014 was $50,000. There was no provision for credit losses for the quarter ended June 30, 2013. The provision for credit losses for the six months ended June 30, 2014 was $74,000 compared to $85,000 for the six months ended June 30, 2013. Non-Interest Income The Bank's non-interest income for the quarter ended June 30, 2014 was $160,000 compared to $234,000 for the quarter ended June 30, 2013. For the six months ended June 30, 2014, non-interest income was $270,000 compared to $373,000 for the same period last year. Prior year results for both the three and six months ended June 30, 2013 included an $86,000 gain on the sale of securities. Non-Interest Expense Non-interest expense was $1,179,000 for the quarter ended June 30, 2014 compared to $1,114,000 for the same period one year earlier. For the six months ended June 30, 2014, non-interest expense was $2,371,000 compared to $2,135,000 for the same period last year. Balance Sheet The Bank had total assets at June 30, 2014 of $147.1 million, compared to $118.3 million at June 30, 2013, representing growth of $28.8 million, or 24%.

Total loans outstanding, including loans held for sale, at June 30, 2014, were $111.9 million compared to $85.0 million at June 30, 2013, representing an increase of $26.9 million, or 32%.

Total deposits were $133.5 million at June 30, 2014 compared to total deposits of $105.9 million at June 30, 2013, representing an increase of $27.6 million, or 26%. Credit Quality The allowance for loan losses was $1,464,000, or 1.35% of loans, net of unearned income at June 30, 2014, compared to $1,450,000, or 1.76% of loans, net of unearned income at June 30, 2013. Nonperforming assets at June 30, 2014 were $183,000 compared to $268,000 at June 30, 2013.

Keywords for this news article include: Economics, Banking and Finance, Finance and Investment.

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Source: Economics Week


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