Cornerstone Bancshares, Inc. Reports Positive Earnings for Third Quarter of 2014
CHATTANOOGA, Tenn., Oct. 27, 2014 /PRNewswire/ -- Cornerstone Bancshares, Inc. ("Cornerstone"; OTC Bulletin Board: CSBQ; CSBQP), holding company of Cornerstone Community Bank ("Bank"), today announced net income of approximately $406,000 for the third quarter of 2014. This marks the fifteenth consecutive quarter of positive earnings for Cornerstone.
Some financial highlights for the year as of September 30, 2014, compared with the same period of 2013, include:
- 5% increase in total loans
- 26.3% reduction in foreclosed assets
- 12.1% reduction in non-accruing loans
- 22.4% increase in market value per common share
"We continue to make steady, gradual progress in cleaning up the balance sheet," said Cornerstone's President and Chief Executive Officer Frank Hughes. "With a material reduction in foreclosed and non-performing assets, we are finally able to focus more of our time, energy and efforts on the production side of growing loans and deposits."
Cornerstone's common stock had a significant gain in market value at quarter end, from $2.45 per share as of September 30, 2013, to $3.00 per share as of September 30, 2014. In addition, Cornerstone continued paying its quarterly Preferred Stock dividend, based on positive earnings in preceding quarters. The most recent payment, made on August 26, 2014, marked the fourteenth consecutive quarterly dividend payment since the security was issued in the third quarter of 2010.
"This community has demonstrated its belief in and support of a strong community bank," said Cornerstone's Chairman Miller Welborn. "Just as Chattanooga continues to grow and thrive, Cornerstone is poised and ready to grow right along with the market."
Founded in 1996, Cornerstone is a single-bank holding company, with approximately $413 million in assets, serving the Chattanooga, Tennessee MSA, with five full-service branch locations throughout Chattanooga and one loan production office in Dalton, Georgia. Locally owned and operated, Cornerstone specializes in providing a comprehensive range of customized financial solutions for businesses and individuals.
Certain of the statements made in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of Cornerstone and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which Cornerstone operates, governmental regulations, the company's competitive environment, cyclical and seasonal fluctuations in its operating results, and other risks.
Cornerstone Bancshares, Inc. and Subsidiary |
||||||
Third Quarter Financial Highlights |
||||||
September 30, 2014 and 2013 |
||||||
(Unaudited) |
||||||
(Amounts in thousands, except per common share data) |
2014 |
2013 |
% Change |
|||
Balance Sheet Data at Sept 30 |
||||||
Total assets |
$ 413,378 |
$ 429,681 |
(3.8) |
|||
Interest-earning assets |
390,301 |
400,929 |
(2.7) |
|||
Loans |
298,390 |
284,181 |
5.0 |
|||
Foreclosed assets |
10,994 |
14,924 |
(26.3) |
|||
Deposits |
316,314 |
340,756 |
(7.2) |
|||
Other interest-bearing liabilities |
55,336 |
47,249 |
17.1 |
|||
Shareholders' equity |
40,396 |
40,150 |
0.6 |
|||
Loan to deposit ratio |
94.33% |
83.40% |
13.1 |
|||
Tier 1 leverage ratio (Bank, est) |
9.19% |
8.45% |
8.8 |
|||
Total risk-based capital ratio (Bank, est) |
13.20% |
12.91% |
2.2 |
|||
Outstanding common shares |
6,627 |
6,547 |
1.2 |
|||
Book value per common share |
$ 3.84 |
$ 3.86 |
(0.5) |
|||
Tangible book value per common share |
$ 3.84 |
$ 3.86 |
(0.5) |
|||
Market value per common share as of September 30 |
$ 3.00 |
$ 2.45 |
22.4 |
|||
Loan Quality Data |
||||||
Nonaccruing loans |
3,600 |
4,095 |
(12.1) |
|||
Loans past due 90 days – accruing |
- |
- |
- |
|||
Net charge-offs YTD |
244 |
3,282 |
(92.6) |
|||
Allowance for loan losses |
3,474 |
3,159 |
10.0 |
|||
Allowance for loan losses to total loans |
1.16% |
1.11% |
||||
Nonperforming assets to total assets |
3.53% |
4.43% |
||||
Performance Data for the Year |
||||||
Net income |
$ 1,227 |
$ 1,277 |
(3.9) |
|||
Return on average assets |
0.58% |
0.40% |
||||
Return on average equity |
6.05% |
4.17% |
||||
Net interest margin |
3.89% |
3.81% |
||||
Per common share data: |
||||||
Net income – basic |
$ 0.01 |
$ 0.01 |
||||
Net income – diluted |
$ 0.01 |
$ 0.01 |
||||
Common dividends |
$ - |
$ - |
||||
Preferred dividends & accretion per common |
$ 0.18 |
$ 0.18 |
||||
Average shares (000s): |
||||||
Basic common stock |
6,610 |
6,547 |
||||
Diluted common stock |
6,790 |
6,675 |
||||
Preferred stock (actual) |
600 |
600 |
Cornerstone Bancshares, Inc. and Subsidiary |
||||||||
Adjusted Income Pre-tax & Pre-provision (PTPP) |
||||||||
Net of Security Gains & Foreclosed Assets Expense |
||||||||
(Unaudited) |
||||||||
2014 |
2013 |
Q3-14 / |
||||||
Third |
Second |
First |
Fourth |
Third |
Q3-13 |
|||
(Amounts in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
% Chg |
||
Net interest income |
$ 3,811 |
$ 3,856 |
$ 3,811 |
$ 3,741 |
$ 3,891 |
(2.1) |
||
Total noninterest income |
504 |
535 |
322 |
617 |
270 |
86.7 |
||
Sub-total |
4,315 |
4,391 |
4,133 |
4,358 |
4,161 |
3.7 |
||
Total noninterest expense |
3,659 |
3,375 |
3,301 |
3,704 |
3,464 |
5.6 |
||
Pre-tax, pre-provision income |
656 |
1,016 |
832 |
654 |
697 |
(5.9) |
||
Net gains from sale of securities |
(169) |
(300) |
(102) |
(227) |
- |
N/A |
||
Foreclosed assets expense, net |
688 |
363 |
349 |
693 |
382 |
80.1 |
||
Adjusted PTPP |
1,175 |
1,079 |
1,079 |
1,120 |
1,079 |
8.9 |
||
Reconciliation of Non-GAAP Financial Measures |
(Unaudited) |
|||||||
2014 |
2013 |
|||||||
Third |
Second |
First |
Fourth |
Third |
||||
(Amounts in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|||
Pre-tax, pre-provision income |
$ 656 |
$ 1,016 |
$ 832 |
$ 654 |
$ 697 |
|||
Income tax expense |
(250) |
(257) |
(255) |
(250) |
(268) |
|||
Provision for loan losses |
- |
(350) |
(165) |
- |
- |
|||
Net income |
406 |
409 |
412 |
404 |
429 |
|||
Adjusted PTPP |
1,175 |
1,079 |
1,079 |
1,120 |
1,079 |
|||
Net gains from sale of securities |
169 |
300 |
102 |
227 |
- |
|||
Foreclosed assets expense, net |
(688) |
(363) |
(349) |
(693) |
(382) |
|||
Provision for loan losses |
- |
(350) |
(165) |
- |
- |
|||
Income tax expense |
(250) |
(257) |
(255) |
(250) |
(268) |
|||
Net income |
406 |
409 |
412 |
404 |
429 |
|||
Cornerstone Bancshares, Inc. and Subsidiary |
||||||||
Quarterly Earnings Summary |
||||||||
(Unaudited) |
||||||||
2014 |
2013 |
Q3-14 / |
||||||
Third |
Second |
First |
Fourth |
Third |
Q3-13 |
|||
(Amounts in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
% Chg |
||
Interest income |
||||||||
Loans, including fees |
$ 4,168 |
$ 4,225 |
$ 4,095 |
$ 4,190 |
$ 4,294 |
(2.9) |
||
Securities and interest-bearing deposits at other financial institutions |
327 |
347 |
431 |
315 |
457 |
(28.5) |
||
Federal funds sold and other earning assets |
7 |
10 |
7 |
8 |
9 |
(21.1) |
||
Total interest income |
4,502 |
4,582 |
4,533 |
4,513 |
4,760 |
(5.4) |
||
Interest expense |
||||||||
Deposits |
442 |
442 |
442 |
487 |
563 |
(21.5) |
||
Short-term borrowings |
19 |
21 |
19 |
18 |
21 |
(11.8) |
||
FHLB advances and other borrowing |
231 |
263 |
261 |
267 |
285 |
(18.9) |
||
Total interest expense |
692 |
726 |
722 |
772 |
869 |
(20.4) |
||
Net interest income |
3,811 |
3,856 |
3,811 |
3,741 |
3,891 |
(2.1) |
||
Provision for losses |
- |
350 |
165 |
- |
- |
- |
||
Net interest income after the |
||||||||
provision for loan losses |
3,811 |
3,506 |
3,646 |
3,741 |
3,891 |
(2.1) |
||
Noninterest income |
||||||||
Customer service fees |
215 |
210 |
189 |
213 |
218 |
(1.7) |
||
Other noninterest income |
13 |
18 |
12 |
13 |
13 |
4.0 |
||
Gain on sale of assets |
276 |
307 |
121 |
391 |
39 |
604.5 |
||
Total noninterest income |
504 |
535 |
322 |
617 |
270 |
86.5 |
||
Noninterest expense |
||||||||
Salaries and employee benefits |
1,702 |
1,723 |
1,827 |
1,716 |
1,619 |
5.1 |
||
Net occupancy and equipment |
315 |
324 |
309 |
324 |
334 |
(5.7) |
||
Depository insurance |
163 |
164 |
155 |
162 |
162 |
0.5 |
||
Foreclosed asset expense (1) |
688 |
363 |
349 |
693 |
382 |
80.2 |
||
Other operating expense |
791 |
801 |
661 |
810 |
967 |
(18.2) |
||
Total noninterest expense |
3,659 |
3,375 |
3,301 |
3,705 |
3,464 |
5.6 |
||
Income before income taxes |
655 |
666 |
667 |
653 |
697 |
(6.0) |
||
Income tax expense |
250 |
257 |
255 |
250 |
268 |
(7.0) |
||
Net income |
$ 406 |
$ 409 |
$ 412 |
$ 404 |
$ 429 |
(5.4) |
||
Preferred stock dividends & accretion on preferred stock discount |
393 |
393 |
393 |
393 |
393 |
(0.1) |
||
Net income available to common |
13 |
16 |
19 |
11 |
36 |
(63.8) |
||
Net income per common share: |
||||||||
Basic |
$ 0.00 |
$ 0.00 |
$ 0.00 |
$ 0.00 |
$ 0.01 |
- |
||
Diluted |
$ 0.00 |
$ 0.00 |
$ 0.00 |
$ 0.00 |
$ 0.01 |
- |
||
Average basic shares |
6,627 |
6,627 |
6,575 |
6,547 |
6,547 |
1.2 |
||
Average common diluted shares |
6,844 |
6,807 |
6,714 |
6,662 |
6,693 |
2.3 |
||
Performance Ratios |
||||||||
Return on average equity |
4.01% |
4.02% |
4.08% |
3.98% |
4.25% |
(5.7) |
||
Return on average assets |
0.39% |
0.38% |
0.39% |
0.38% |
0.40% |
(2.1) |
||
Net interest margin |
3.86% |
3.89% |
3.90% |
3.76% |
3.89% |
(0.9) |
||
Average equity |
40,480 |
40,710 |
40,447 |
40,487 |
40,382 |
0.2 |
||
Average assets |
416,247 |
426,951 |
426,282 |
426,660 |
431,068 |
(3.4) |
||
Average interest-earning assets |
394,156 |
400,760 |
400,175 |
398,174 |
400,539 |
(1.6) |
||
(1) Includes OREO adjustments to fair value |
Cornerstone Bancshares, Inc. and Subsidiary |
||||||
Loan Loss Allowance and Asset Quality Review |
||||||
2014 |
2013 |
|||||
Third |
Second |
First |
Fourth |
Third |
||
(Amounts in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
Allowance for loan losses |
||||||
Balance at beginning of period |
$ 3,330 |
$ 3,011 |
$ 3,203 |
$ 3,159 |
$ 5,095 |
|
Provision for loan losses |
- |
350 |
165 |
- |
- |
|
Net charge-offs |
144 |
(32) |
(357) |
44 |
(1,936) |
|
Balance at end of period |
$ 3,474 |
$ 3,330 |
$ 3,011 |
$ 3,203 |
$ 3,159 |
|
As a % of loans |
1.16% |
1.14% |
1.03% |
1.11% |
1.11% |
|
As a % of nonperforming loans |
96.50% |
116.72% |
63.00% |
89.81% |
77.13% |
|
As a % of nonperforming assets |
23.80% |
21.01% |
17.37% |
19.42% |
16.61% |
|
Net charge-offs as a % of loans (a) |
-0.19% |
0.04% |
0.49% |
-0.06% |
2.73% |
|
Risk element assets |
||||||
Accruing troubled debt restructured |
$ 3,698 |
$ 3,787 |
$ 3,337 |
$ 4,251 |
$ 3,121 |
|
Loans past due 30-89 days |
$ 2,846 |
$ 1,365 |
$ 2,193 |
$ 2,250 |
$ 1,659 |
|
Nonaccruing loans |
$ 3,600 |
$ 2,853 |
$ 4,779 |
$ 3,566 |
$ 4,095 |
|
Loans past due 90 days – accruing |
- |
- |
- |
- |
- |
|
Total nonperforming loans |
$ 3,600 |
$ 2,853 |
$ 4,779 |
$ 3,566 |
$ 4,095 |
|
Foreclosed assets (b) (c) |
$ 10,994 |
$ 12,996 |
$ 12,559 |
$ 12,926 |
$ 14,924 |
|
Total nonperforming assets |
$ 14,594 |
$ 15,849 |
$ 17,338 |
$ 16,492 |
$ 19,019 |
|
Nonperforming loans as a % of loans |
1.21% |
0.98% |
1.63% |
1.23% |
1.44% |
|
Nonperforming assets as a % of loans |
||||||
and foreclosed assets |
4.72% |
5.19% |
5.68% |
5.45% |
6.36% |
|
Total loans |
298,390 |
292,369 |
292,952 |
289,440 |
284,181 |
|
(a) Annualized |
||||||
(b) Properties sold during 3rdQ 2014 |
$ 1,609 |
|||||
(c) Properties under contract to sell |
$ 4,424 |
|||||
Cornerstone Bancshares, Inc. and Subsidiary |
Cornerstone Bancshares, Inc. and Subsidiary |
||||||||||||||||||||||
Net Interest Margin Analysis |
Net Interest Margin Analysis |
||||||||||||||||||||||
Taxable Equivalent Basis |
Taxable Equivalent Basis |
||||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||||
September 30 |
September 30 |
||||||||||||||||||||||
(Amounts in thousands) |
(Amounts in thousands) |
||||||||||||||||||||||
Assets |
2014 |
2013 |
Assets |
2014 |
2013 |
||||||||||||||||||
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||||||||
Earning assets: |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
Earning assets: |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||||||
Loans, net of unearned income |
$ 295,566 |
$ 4,168 |
5.59% |
$ 281,341 |
$ 4,294 |
6.05% |
Loans, net of unearned income |
$ 293,159 |
$ 12,489 |
5.70% |
$ 276,606 |
$ 12,515 |
6.05% |
||||||||||
Investment securities |
84,524 |
327 |
1.64% |
104,261 |
457 |
1.89% |
Investment securities |
91,147 |
1,104 |
1.76% |
97,786 |
1,379 |
2.10% |
||||||||||
Other earning assets |
14,066 |
7 |
0.20% |
14,937 |
9 |
0.24% |
Other earning assets |
13,855 |
24 |
0.24% |
23,232 |
45 |
0.26% |
||||||||||
Total earning assets |
394,156 |
$ 4,502 |
4.55% |
400,539 |
$ 4,760 |
4.75% |
Total earning assets |
398,161 |
$ 13,617 |
4.60% |
397,624 |
$ 13,939 |
4.74% |
||||||||||
Allowance for loan losses |
(3,489) |
(3,933) |
Allowance for loan losses |
(3,237) |
(5,053) |
||||||||||||||||||
Cash and other assets |
25,580 |
34,462 |
Cash and other assets |
28,198 |
36,808 |
||||||||||||||||||
TOTAL ASSETS |
$ 416,247 |
$ 431,068 |
TOTAL ASSETS |
$ 423,122 |
$ 429,379 |
||||||||||||||||||
Liabilities and Shareholders' Equity |
Liabilities and Shareholders' Equity |
||||||||||||||||||||||
Interest-bearing liabilities: |
Interest-bearing liabilities: |
||||||||||||||||||||||
Interest-bearing demand deposits |
$ 25,784 |
$ 10 |
0.16% |
$ 25,388 |
$ 10 |
0.16% |
Interest-bearing demand deposits |
$ 27,398 |
$ 30 |
0.15% |
$ 26,477 |
$ 46 |
0.23% |
||||||||||
Savings deposits |
14,105 |
4 |
0.10% |
12,858 |
7 |
0.22% |
Savings deposits |
14,841 |
11 |
0.10% |
12,235 |
22 |
0.24% |
||||||||||
MMDA's |
72,628 |
76 |
0.42% |
78,715 |
100 |
0.50% |
MMDA's |
67,916 |
192 |
0.38% |
76,729 |
319 |
0.56% |
||||||||||
Time deposits |
155,184 |
352 |
0.90% |
166,401 |
445 |
1.06% |
Time deposits |
158,560 |
1,093 |
0.92% |
167,406 |
1,366 |
1.09% |
||||||||||
Federal funds purchased and securities |
Federal funds purchased and securities |
||||||||||||||||||||||
sold under agreements to repurchase |
21,445 |
19 |
0.35% |
25,102 |
22 |
0.34% |
sold under agreements to repurchase |
21,862 |
58 |
0.36% |
22,330 |
56 |
0.34% |
||||||||||
Federal Home Loan Bank and other borrowings |
31,161 |
231 |
2.94% |
29,012 |
285 |
3.90% |
Federal Home Loan Bank and other borrowings |
30,198 |
756 |
3.34% |
31,142 |
941 |
4.04% |
||||||||||
Total interest-bearing liabilities |
320,307 |
692 |
0.86% |
337,476 |
869 |
1.02% |
Total interest-bearing liabilities |
320,775 |
2,140 |
0.89% |
336,319 |
2,750 |
1.09% |
||||||||||
Net interest spread |
$ 3,810 |
3.69% |
$ 3,891 |
3.73% |
Net interest spread |
$ 11,477 |
3.71% |
$ 11,189 |
3.65% |
||||||||||||||
Noninterest-bearing demand deposits |
54,400 |
51,727 |
Noninterest-bearing demand deposits |
60,970 |
50,338 |
||||||||||||||||||
Accrued expenses and other liabilities |
1,060 |
1,483 |
Accrued expenses and other liabilities |
831 |
1,865 |
||||||||||||||||||
Shareholders' equity |
40,480 |
40,382 |
Shareholders' equity |
40,546 |
40,857 |
||||||||||||||||||
TOTAL LIABILITIES AND |
TOTAL LIABILITIES AND |
||||||||||||||||||||||
SHAREHOLDERS' EQUITY |
$ 416,247 |
$ 431,068 |
SHAREHOLDERS' EQUITY |
$ 423,122 |
$ 429,379 |
||||||||||||||||||
Net yield on earning assets |
3.86% |
3.89% |
Net yield on earning assets |
3.89% |
3.81% |
||||||||||||||||||
Taxable equivalent adjustment: |
Taxable equivalent adjustment: |
||||||||||||||||||||||
Loans |
0 |
0 |
Loans |
0 |
0 |
||||||||||||||||||
Investment securities |
22 |
39 |
Investment securities |
94 |
156 |
||||||||||||||||||
Total adjustment |
22 |
39 |
Total adjustment |
94 |
156 |
||||||||||||||||||
Cornerstone Bancshares, Inc. and Subsidiary |
|||||
Loan Stratification |
|||||
2014 |
2013 |
||||
(Amounts in thousands) |
Third |
% of |
Third |
% of |
% Dollar |
Quarter |
Total |
Quarter |
Total |
Change |
|
Non-residential real estate |
|||||
Owner occupied |
$ 71,986 |
24.1 |
$ 66,143 |
23.3 |
8.8 |
Non-owner occupied |
72,163 |
24.2 |
66,454 |
23.4 |
8.6 |
Multi-family real estate |
8,252 |
2.8 |
8,295 |
2.9 |
(0.5) |
1-4 family construction |
10,320 |
3.5 |
9,865 |
3.5 |
4.6 |
Commercial construction |
2,784 |
0.9 |
8,917 |
3.1 |
(68.8) |
Commercial land and lot development |
14,199 |
4.8 |
14,245 |
5.0 |
(0.3) |
Total non-residential real estate |
179,704 |
60.2 |
173,919 |
61.2 |
3.3 |
Residential real estate |
|||||
First mortgage - 1-4 family |
45,690 |
15.3 |
43,776 |
15.4 |
4.4 |
Second mortgage - 1-4 family |
1,674 |
0.6 |
2,028 |
0.7 |
(17.5) |
Home equity lines |
20,035 |
6.7 |
15,847 |
5.6 |
26.4 |
Total residential real estate |
67,399 |
22.6 |
61,651 |
21.7 |
9.3 |
Total real estate loans |
247,102 |
82.8 |
235,570 |
82.9 |
4.9 |
Commercial |
41,581 |
13.9 |
38,095 |
13.4 |
9.2 |
Agricultural & other |
6,960 |
2.3 |
8,381 |
2.9 |
(17.0) |
Consumer |
2,747 |
0.9 |
2,135 |
0.8 |
28.6 |
Total loans, net of unearned fees |
$ 298,390 |
100.0 |
$284,181 |
100.0 |
5.0 |
Cornerstone Bancshares, Inc. and Subsidiary |
|||||||
Consolidated Balance Sheets |
|||||||
Unaudited |
|||||||
September 30, |
December 31, |
||||||
ASSETS |
2014 |
2013 |
|||||
Cash and due from banks |
$ 1,091,657 |
$ 2,149,467 |
|||||
Interest-bearing deposits at other financial institutions |
14,783,017 |
22,702,270 |
|||||
Total cash and cash equivalents |
15,874,674 |
24,851,737 |
|||||
Securities available for sale |
78,249,672 |
92,208,672 |
|||||
Securities held to maturity (fair value $29,524 and $35,027 |
|||||||
at September 30, 2014 and December 31, 2013, respectively) |
29,374 |
34,165 |
|||||
Federal Home Loan Bank stock, at cost |
2,322,900 |
2,322,900 |
|||||
Loans, net of allowance for loan losses of $3,473,954 and $3,203,158 |
|||||||
at September 30, 2014 and December 31, 2013, respectively |
294,916,467 |
286,236,578 |
|||||
Bank premises and equipment, net |
4,835,378 |
4,992,449 |
|||||
Accrued interest receivable |
1,179,789 |
977,925 |
|||||
Foreclosed assets |
10,993,825 |
12,925,748 |
|||||
Other assets |
4,975,510 |
7,673,179 |
|||||
Total assets |
$ 413,377,589 |
$ 432,223,353 |
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Deposits: |
|||||||
Noninterest-bearing demand deposits |
$ 53,615,550 |
$ 75,206,540 |
|||||
Interest-bearing demand deposits |
25,246,319 |
24,563,987 |
|||||
Savings deposits and money market accounts |
83,109,173 |
86,329,930 |
|||||
Time deposits |
154,342,518 |
155,313,920 |
|||||
Total deposits |
316,313,560 |
341,414,377 |
|||||
Accrued interest payable |
78,425 |
82,320 |
|||||
Federal funds purchased and securities sold under |
|||||||
agreements to repurchase |
27,335,750 |
22,974,117 |
|||||
Federal Home Loan Bank advances and other borrowings |
28,000,000 |
26,740,000 |
|||||
Other liabilities |
1,253,778 |
878,811 |
|||||
Total liabilities |
372,981,513 |
392,089,625 |
|||||
Stockholders' equity: |
|||||||
Preferred stock - no par value; 2,000,000 shares authorized; |
|||||||
600,000 shares issued and outstanding |
|||||||
in 2014 and 2013 |
14,946,464 |
14,892,927 |
|||||
Common stock - $1.00 par value; 20,000,000 shares authorized; |
|||||||
6,709,199 shares issued in 2014 and 2013; |
|||||||
6,627,398 and 6,547,074 shares outstanding in 2014 and 2013, respectively |
6,627,398 |
6,547,074 |
|||||
Additional paid-in capital |
21,780,560 |
21,549,883 |
|||||
Accumulated deficit |
(3,050,663) |
(3,099,451) |
|||||
Accumulated other comprehensive income |
92,317 |
243,295 |
|||||
Total stockholders' equity |
40,396,076 |
40,133,728 |
|||||
Total liabilities and stockholders' equity |
$ 413,377,589 |
$ 432,223,353 |
|||||
The Notes to Consolidated Financial Statements are an integral part of these statements. |
|||||||
Cornerstone Bancshares, Inc. and Subsidiary |
||||||||||||
Consolidated Statements of Income |
||||||||||||
Unaudited |
Unaudited |
|||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||
INTEREST INCOME |
||||||||||||
Loans, including fees |
$ 4,167,994 |
$ 4,293,583 |
$ 12,488,587 |
$ 12,514,688 |
||||||||
Securities and interest-bearing deposits at other |
||||||||||||
financial institutions |
327,135 |
457,299 |
1,104,132 |
1,379,322 |
||||||||
Federal funds sold |
7,129 |
9,510 |
24,404 |
45,515 |
||||||||
Total interest income |
4,502,258 |
4,760,392 |
13,617,123 |
13,939,525 |
||||||||
INTEREST EXPENSE |
||||||||||||
Time deposits |
352,255 |
445,397 |
1,093,282 |
1,365,993 |
||||||||
Other deposits |
89,574 |
117,327 |
232,613 |
386,791 |
||||||||
Federal funds purchased and securities |
||||||||||||
sold under agreements to repurchase |
18,983 |
21,435 |
58,264 |
56,258 |
||||||||
Federal Home Loan Bank advances and other borrowings |
230,915 |
284,882 |
755,526 |
941,269 |
||||||||
Total interest expense |
691,727 |
869,041 |
2,139,685 |
2,750,311 |
||||||||
Net interest income before provision for loan losses |
3,810,531 |
3,891,351 |
11,477,438 |
11,189,214 |
||||||||
Provision for loan losses |
- |
- |
515,000 |
300,000 |
||||||||
Net interest income after provision for loan losses |
3,810,531 |
3,891,351 |
10,962,438 |
10,889,214 |
||||||||
NONINTEREST INCOME |
||||||||||||
Customer service fees |
214,761 |
218,304 |
613,210 |
608,087 |
||||||||
Net gains from sale of securities |
169,037 |
- |
571,510 |
424,971 |
||||||||
Net gains from sale of loans and other assets |
106,906 |
39,164 |
132,349 |
240,746 |
||||||||
Other noninterest income |
13,062 |
12,500 |
43,498 |
48,968 |
||||||||
Total noninterest income |
503,766 |
269,968 |
1,360,567 |
1,322,772 |
||||||||
NONINTEREST EXPENSE |
||||||||||||
Salaries and employee benefits |
1,702,352 |
1,619,030 |
5,251,839 |
4,838,822 |
||||||||
Net occupancy and equipment expense |
314,976 |
333,850 |
947,894 |
1,011,335 |
||||||||
Depository insurance |
162,798 |
161,956 |
481,641 |
482,920 |
||||||||
Foreclosed assets, net |
688,124 |
381,847 |
1,400,616 |
1,308,995 |
||||||||
Other operating expenses |
790,856 |
967,888 |
2,253,090 |
2,500,107 |
||||||||
Total noninterest expenses |
3,659,106 |
3,464,571 |
10,335,080 |
10,142,179 |
||||||||
Income before income tax expense |
655,191 |
696,748 |
1,987,925 |
2,069,807 |
||||||||
Income tax expense |
249,500 |
268,200 |
760,600 |
793,100 |
||||||||
Net income |
405,691 |
428,548 |
1,227,325 |
1,276,707 |
||||||||
Preferred stock dividend requirements |
375,000 |
375,000 |
1,125,000 |
1,125,000 |
||||||||
Accretion on preferred stock discount |
17,846 |
17,845 |
53,537 |
53,535 |
||||||||
Net income available to common shareholders |
$ 12,845 |
$ 35,703 |
$ 48,788 |
$ 98,172 |
||||||||
EARNINGS PER COMMON SHARE |
||||||||||||
Basic |
$ - |
$ 0.01 |
$ 0.01 |
$ 0.01 |
||||||||
Diluted |
$ - |
$ 0.01 |
$ 0.01 |
$ 0.01 |
||||||||
DIVIDENDS DECLARED PER COMMON SHARE |
$ - |
$ - |
$ - |
$ - |
||||||||
The Notes to Consolidated Financial Statements are an integral part of these statements. |
||||||||||||
Cornerstone Bancshares, Inc. and Subsidiary |
||||||||||||
Consolidated Statement of Changes in Stockholders' Equity - Unaudited |
||||||||||||
For the nine months ended September 30, 2014 |
||||||||||||
Accumulated |
||||||||||||
Additional |
Other |
Total |
||||||||||
Preferred |
Common |
Paid-in |
Accumulated |
Comprehensive |
Stockholders' |
|||||||
Stock |
Stock |
Capital |
Deficit |
Income |
Equity |
|||||||
BALANCE, December 31, 2013 |
$ 14,892,927 |
$ 6,547,074 |
$ 21,549,883 |
$ (3,099,451) |
$ 243,295 |
$ 40,133,728 |
||||||
Stock compensation expense |
- |
- |
120,000 |
- |
- |
120,000 |
||||||
Issuance of common stock, 80,324 shares |
- |
80,324 |
110,677 |
- |
- |
191,001 |
||||||
Preferred stock dividends paid |
- |
- |
- |
(1,125,000) |
- |
(1,125,000) |
||||||
Accretion on preferred stock |
53,537 |
- |
- |
(53,537) |
- |
- |
||||||
Net income |
- |
- |
- |
1,227,325 |
- |
1,227,325 |
||||||
Unrealized holding losses on securities available for sale, |
||||||||||||
net of reclassification adjustment |
- |
- |
- |
- |
(150,978) |
(150,978) |
||||||
BALANCE, September 30, 2014 |
||||||||||||
$ 14,946,464 |
$ 6,627,398 |
$ 21,780,560 |
$ (3,050,663) |
$ 92,317 |
$ 40,396,076 |
|||||||
The Notes to Consolidated Financial Statements are an integral part of these statements. |
||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cornerstone-bancshares-inc-reports-positive-earnings-for-third-quarter-of-2014-344552621.html
SOURCE Cornerstone Bancshares, Inc.
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