Attached files
Exhibit 99.1
CORNERSTONE FINANCIAL CORPORATION
REPORTS FIRST QUARTER EARNINGS
Mount Laurel, NJ - Cornerstone Financial Corporation (CFIC.OB), the holding
company for Cornerstone Bank, reported today net income available to common
shareholders of $76 thousand, or $.04 per diluted share for the three months
ended March 31, 2011, as compared to net income of $442 thousand, or $0.22 per
share, for the same period in 2010. Net income for the quarter before preferred
stock dividends totaled $109 thousand, versus net income of $422 thousand a year
ago. The net interest margin for the three-month period ended March 31, 2011
equaled 3.86% as compared to 3.93% for the same period in 2010 and 3.73% for the
fourth quarter of 2010.
The change in net income reflects increases of $393 thousand in net interest
income and $139 thousand in non-interest income, coupled with a $244 thousand
reduction in income tax expense. These increases were offset by an increase of
$844 thousand in the provision for loan losses and an increase of $298 thousand
in non-interest expense. Management considers a variety of factors in
establishing the allowance for loan loss including the Company's historical loss
rates and loss rates of peer financial institutions. The change in the provision
for loan losses is related to the recording of $1.8 million in loan charge-offs
during the first quarter of 2011.
Total deposits at March 31, 2011 were $304.2 million, an increase of $1.9
million or 0.63% from December 31, 2010. The increase in deposits was
attributable to an increase of $20.8 million in interest bearing deposit
accounts which was fueled by the migration of $12.4 million from non-interest
bearing deposit accounts and the migration of $6.5 million from certificates of
deposit.
Total assets at March 31, 2011 were $356.2 million, an increase of $2.2 million
or 0.62% over December 31, 2010. This change was primarily due to increases in
cash equivalents of $ 6.8 million, offset by decreases in loans receivable net
of $4.0 million, deferred tax asset of $451 thousand and accrued interest
receivable of $222 thousand. Gross loans receivable at March 31, 2011, totaled
$238.0 million, a decrease of $4.9 million or 2.0% from December 31, 2010. This
change was attributable to decreases of $558 thousand in commercial loans, $2.7
million in commercial real estate loans, $1.3 million in residential real estate
loans and $307 thousand in consumer loans. The decline in gross loans represents
significant payoffs received during the first quarter of 2011 coupled with $1.8
million in loan charge-offs. At March 31, 2011 our total non-performing assets
were $11.8 million or 3.32% of our total assets, an increase of $266 thousand
from non-performing assets of $11.6 million or 3.26% of total assets at December
31, 2010.
Cornerstone's Chairman, President, and CEO George W. Matteo, Jr. commented
"Although this past quarter's performance reflects the ongoing challenges of the
difficult economic condition facing our country we are extremely pleased with
our performance. This quarter represents our seventh consecutive quarter of
profitability and continues the positive trend begun in the third quarter of
2009."
Cornerstone Financial Corporation is a New Jersey based bank holding company
headquartered in Mount Laurel, New Jersey and is the holding company for
Cornerstone Bank ("the Bank"), a New Jersey state chartered commercial bank
headquartered in Moorestown, New Jersey. The Bank commenced operations on
October 4, 1999, and conducts business from its main office in Moorestown and
from six additional branch offices located in Medford, Burlington, Cherry Hill,
Voorhees, Mount Laurel, and Marlton, New Jersey.
Set forth below is selected financial information concerning Cornerstone
Financial Corporation:
Selected Balance Sheet Data March 31, December 31,
(In thousands) 2011 2010
--------- ------------
Unaudited Audited
Investments held to maturity $ 40,158 $ 40,435
Investments available for sale 44,780 44,635
Loans receivable 238,002 242,856
Allowance for loan losses 2,962 3,826
Total assets 356,195 354,017
Deposits 304,173 302,270
Advances from the Federal Home Loan Bank 25,000 25,000
Stockholders equity 17,946 17,748
March 31, December 31,
SELECTED CAPITAL RATIOS FOR THE BANK 2011 2010
--------- -------------
Unaudited Audited
Shareholders' equity to total assets 5.6% 5.6%
Leverage ratio 6.9% 6.9%
Risk-based capital ratios:
Tier 1 9.0% 8.9%
Total Capital 11.2% 11.2%
SELECTED NON-PERFORMING ASSET DATA March 31, December 31,
(In thousands) 2011 2010
---------- --------------
Unaudited Audited
Non-performing assets:
Loans past due 90 days or more and accruing
Commercial $ 634 $ 634
Consumer 243 244
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Total loans past due 90 days or more and accruing $ 877 $ 878
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Non-accrual loans:
Commercial $ 1,112 $ 1,296
Commercial real estate 7,702 8,213
Residential real estate 964 -
Consumer 288 289
----------- ---------------
Total 10,066 9,798
Impaired loans 50 51
Real estate owned 830 830
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Total non-performing assets $ 11,823 $ 11,557
----------- ---------------
Three months ended Three months ended
SELECTED ALLOWANCE FOR LOAN LOSS DATA March 31, March 31,
(In thousands) 2011 2010
-------------------- -------------------
Unaudited Unaudited
Balance at beginning of period $ 3,826 $ 3,432
Provision for loan losses 953 109
Charge-offs (net of recoveries) (1,817) -
Balance, end of period $ 2,962 $ 3,541
Three months ended Three months ended
SELECTED INCOME STATEMENT DATA March 31, March 31,
(In thousands except per share data) 2011 2010
-------------------- --------------------
Unaudited Unaudited
Interest income $ 4,274 $ 3,922
Interest expense 1,081 1,122
Net interest income 3,193 2,800
Provision for loan losses 953 109
Income before income taxes 165 775
Net income 109 475
Preferred stock dividends 33 33
Net income available to common shareholders 76 442
EARNINGS PER SHARE
Basic $ 0.04 $ 0.22
Diluted $ 0.04 $ 0.22
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 1,954 1,954
Diluted 1,962 1,954
FORWARD-LOOKING STATEMENTS
Cornerstone Financial Corporation (the "Company") may from time to time
make written or oral "forward-looking statements," including statements
contained in the Company's filings with the Securities and Exchange Commission,
in its reports to shareholders and in other communications by the Company, which
are made in good faith by the Company pursuant to the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve risks and uncertainties, such
as statements of the Company's plans, objectives, expectations, estimates and
intentions that are subject to change based on various important factors (many
of which are beyond the Company's control). Forward-looking statements may be
identified by the use of words such as "expects," "subject," "believe," "will,"
"intends," "will be," or "would." The factors which could cause the Company's
financial performance to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward-looking
statements include those items listed under "Item 1A-Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2010 and the following
factors, among others: the strength of the United States economy in general and
the strength of the local economies in which the Company conducts operations;
the effects of, and changes in, trade, monetary and fiscal policies and laws,
including interest rate policies of the Board of Governors of the Federal
Reserve System ("Federal Reserve"); inflation; interest rates; market and
monetary fluctuations; the timely development of new products and services by
the Company and the perceived overall value of these products and services by
users, including the features, pricing and quality compared to competitors'
products and services; the success of the Company in gaining regulatory approval
of its products, services, dividends and of new branches, when required; the
impact of changes in financial services laws and regulations (including laws
concerning taxes, banking, securities and insurance); technological changes;
acquisitions; the ability to continue to effectively manage costs, including the
costs incurred in connection with the opening of new branches; changes in
consumer spending and saving habits; and the success of the Company at managing
the risks resulting from these factors.
