Cornerstone Bancorp announced the third quarter results.
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Income Statement Highlights
Consolidated net income was $2.7 million in 3Q23, or $2.75 per diluted share, compared to $3.2 million in 3Q22, or $3.22 per diluted share.
The net interest margin (NIM) was 3.49% for 3Q23, compared to 3.32% for 3Q22.
Interest earned on the Bank's interest-bearing deposit account at the Federal Reserve Bank was $2.8 million for 3Q23 compared to $1.3 million for 3Q22.
The yield on the loan portfolio rose to 5.17% for 3Q23 compared to 4.72% for
Q22.
Noninterest expense was $5.9 million in 3Q23 compared to $5.8 million in 3Q22.
Balance Sheet Highlights
Total consolidated assets declined 7.8% to $960.0 million on September 30, 2023, compared to $1.04 billion a year earlier primarily from expected client
isbursements.
Tangible shareholders' equity improved 19.5% to $69.0 million on September 30, 2023, compared to $57.8 million a year earlier.
Interest bearing deposits at the Federal Reserve Bank totaled $189.4 million on September 30, 2023 (19.8% of total assets) compared to $210.5 million a year earlier (20.2% of total assets).
The investment securities portfolio totaled $103.6 million on September 30, 2023, compared to $179.0 million a year earlier. The weighted average remaining life approximates three years.
The loan portfolio totaled $632.9 million on September 30, 2023, $17.2 million, or 2.8%, higher than a year earlier.
Total deposits and repurchase agreements declined 9.1% to $864.1 million on September 30, 2023, compared to $950.3 million a year earlier. Clients are reinvesting in their businesses as balances per deposit account are moving toward the levels of pre-pandemic averages.
The Corporation's other borrowings have declined to $7.9 million on September 30, 2023 compared to $15.3 million a year earlier.
The Bank continues to be well capitalized, with a Tier 1 Leverage Capital Ratio of 9.58% on September 30, 2023.
Trust and Wealth Management
Trust and wealth management assets increased 9.1% to $896.6 million on September 30, 2023, compared to $822.1 million a year earlier. ■