Cornerstone Bancorp Inc. · OTC:CNBP
Cornerstone Bancorp — Shareholder Meeting (April 2025)
21 slides from Cornerstone Bancorp's shareholder meeting presentation, Apr 21, 2025
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting April 21, 2025 1
Slide 2: Agenda
Agenda • Call To Order • Summary of Proposals and Proxy Results • Proposal Results • Motion to Ratify and Approve Acts of the Directors • Cornerstone National Bank & Trust Company Business Update – Welcome and Introductions – Summary of 2024 Highlights – Goals for 2025 • Q & A Session • Adjournment
Slide 3: Shareholder Proposals
Shareholder Proposals Proposal 1 Proposal 2 Elect directors to a 1-year term: To ratify the appointment of Plante • Gerald F. Fitzgerald, Jr. Moran LLP as the Corporation’s • Thomas P. MacCarthy independent auditors for the fiscal year • Jeffrey T. Boundy ending December 31, 2024. • Frank J. Roth •
Slide 4: Shareholder Proposals
Shareholder Proposals Proposal Results For Against Abstain Proposal 1 Percentage of Shares Gerald F. Fitzgerald, Jr. 806,716 -- 4,435 Voted (As Of April 17, 2025) = 82.4% Thomas P. MacCarthy 806,716 -- 4,435 Jeffrey T. Boundy 806,716 -- 4,435 Frank J. Roth 803,716 3,000 4,435 James G. Fitzgerald 806
Slide 5: Welcome and Introductions
Welcome and Introductions Board of Directors – Cornerstone Bancorp, Inc. Gerald F. Fitzgerald, Jr., Chairman * Frank J. Roth * Thomas P. MacCarthy * James G. Fitzgerald Jeffrey T. Boundy * Board of Directors – Cornerstone National Bank & Trust Company Thomas P. MacCarthy, Chairman * Kirk L. Hamilton
Slide 6: 2024 Bank Strategic Initiatives
2024 Bank Strategic Initiatives • During 2024, focus was directed towards: – Maintain a high-quality standard for loan portfolio management and loan portfolio strength – Expand network of trusted professionals to assist in sourcing additional relationship opportunities – Maintain a competitive and s
Slide 7: 2024 Bank Highlights
2024 Bank Highlights • The Federal Reserve Discount Rate declined 1.00%, but all of the reduction occurred from mid-September to year end 2024. • Several large loan relationships paid off thru either sale of business or sale of real estate. One $13 million long-term loan relationship paid off in Q1
Slide 8: 2024 Lending Highlights
2024 Lending Highlights • Loan portfolio remains well-diversified with strong credit management and monitoring of concentration risk. • Overall credit quality remains strong and closely monitored. • Monitoring includes regular reviews of financial performance metrics and adherence to sound underwrit
Slide 9: 2024 Lending Highlights
2024 Lending Highlights • Loans were flat in 2024. • The allowance for credit losses totaled $8.7 million – 1.35% of loans. (000s) 2024 2023 Change Commercial Real Estate - Owner Occupied $ 200,440 $ 186,297 $ 14,143 Commercial Real Estate – Non-Owner Occupied 121,710 122,976 (1,266) Commercial and
Slide 10: 2024 Lending Highlights
2024 Lending Highlights • Revenue from mortgage operations remained at low levels in 2024 and 2023 with higher market rates. • Demand for mortgage refinance activity remains low and most mortgage volume continues from home purchases. • There were 61 loans sold in 2024 compared to 50 in 2023. (000s)
Slide 11: 2024 Investment Activities Highlights
2024 Investment Activities Highlights • In 2024, we deployed $120 million of the Bank’s liquidity into ultra short US Treasury bills. • Yields on short Treasury bills has have been comparable to the earnings rate at the Federal Reserve Bank. • Treasury earnings are not subject to Illinois income tax
Slide 12: 2024 Deposits Highlights
2024 Deposits Highlights • Deposits grew by $14.2 million (1.7%) during 2024. • Many clients used excess deposits to pay down their commercial working capital lines of credit. • While the Federal Reserve lowered the discount rate, there was demand for interest-bearing deposits and increased competit
Slide 13: 2024 Wealth Management Highlights
2024 Wealth Management Highlights • We completed a core data system conversion that demanded significant attention from all Wealth Management staff. • Overall revenue was $3.7 million in 2024, $107,000 ahead of 2023’s mark. • New accounts that opened in 2024 had a value of more than $75 million at y
Slide 14: 2024 Capital Highlights
2024 Capital Highlights • The Board of Directors of the Corporation approved a special dividend of $2.50 per share that was paid in February 2024. • The Bank continues to maintain a strong capital foundation. • The table below shows the trend of the Bank’s capital ratios. Leverage Capital Tangible L
Slide 15: 2024 Capital Highlights
2024 Capital Highlights • The Corporation’s Board of Directors approved a stock repurchase program in 2023. • The Corporation repurchased 29,713 shares in the past two years. • This was a favorable as the repurchases were at prices below the Corporation’s tangible book value per share. • The Corpora
Slide 16: Creating Shareholder Value
Creating Shareholder Value The Corporation is continuing a trend of creating long-term shareholder value. Annual Regulatory Tangible Book Basic Earnings Average Shares Year Ending Dividend Per Book Value Per Value Per Per Share Outstanding Share Share Share December 31, 2017 $ 6.16 $ 10.00 $ 65.72 $
Slide 17: Balance Sheet Trends
Balance Sheet Trends 1,100,000 1,100,000 989,110 1,000,000 976,886 1,000,000 950,731 958,795 891,183 899,327 900,000 871,306 900,000 860,067 861,203 808,124 800,000 800,000 700,000 700,000 - - 600,000 386 600,000 31,558 131,245 500,000 500,000 647,640 647,562 608,744 559,949 400,000 400,000 473,974
Slide 18: Asset Quality Trends
Asset Quality Trends 10,000 3.50% 9,000 8,731 8,085 8,131 8,131 3.00% 8,000 7,235 7,000 2.50% 6,000 2.00% 5,001 5,000 1.50% 4,000 3,000 1.00% 2,022 2,000 1,273 1,400 0.50% 1,000 646 - 0.00% 2020 2021 2022 2023 2024 Loan Loss Reserve Non-Performing Loans Loan Loss Reserve \ Loans Non-Performing Loans
Slide 19: Net Interest Margin Trends
Net Interest Margin Trends 5.42% 5.50% 5.11% 5.00% 4.50% 4.00% 3.82% 3.50% 3.56% 3.50% 3.35% 3.28% 3.32% 3.26% 3.14% 3.05% 3.00% 2.63% 2.50% 2.00% 1.50% 0.92% 1.00% 0.65% 0.52% 0.50% 0.00% 2020 2021 2022 2023 2024 Yield On Earning Assets Cost of Funds Net Interest Margin 19
Slide 20: Looking Forward to 2025
Looking Forward to 2025 Our focus is to grow new client relationships for the Bank in 2025. As our Bank’s software enhancement conversion is completed, additional time and efficiencies are available for calling efforts to cultivate and promote new trusted advisors and client relationships. We believ
Slide 21: Forward Looking Statements
Forward Looking Statements This presentation may contain “forward-looking statements” that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements
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