Cornerstone Community Bank (CRSB) Q3 2024 earnings summary

Executive summary

• Reported net loss of $5.43 million for Q3 2024 versus net income of $1.92 million in Q3 2023, driven by $9.4 million in agricultural loan charge-offs.

• Diluted loss per share was $(3.56) for Q3 2024 compared to $1.26 EPS in Q3 2023.

• For the nine months ended September 30, 2024, net loss was $2.59 million versus net income of $5.48 million for the same period last year.

• Core earnings, excluding the charge-off, were approximately $1.6 million or $1.04 per share for Q3 2024.

Financial highlights

• Net interest income decreased to $4.42 million in Q3 2024 from $5.65 million in Q3 2023.

• Tax-equivalent net interest margin dropped to 2.75% in Q3 2024 from 3.68% in Q3 2023; would have been 3.16% excluding charge-off impacts.

• Non-interest income was $354,000 in Q3 2024, slightly down from $369,000 in Q3 2023.

• Non-interest expense was $3.09 million in Q3 2024, down from $3.17 million in Q3 2023.

• Total loans at September 30, 2024 were $487.1 million, up from $470.1 million a year earlier; total deposits were $589.1 million, up from $575.7 million.

Outlook and guidance

• Management expects some recovery from collateral on charged-off loans, but timing and amount are uncertain.

• Bank is positioned to generate solid earnings going forward, with no past due or non-accrual loans as of September 30, 2024.