Cornerstone Bancorp Inc. · OTC:CNBP
Cornerstone Bancorp — Shareholder Meeting (April 2024)
17 slides from Cornerstone Bancorp's shareholder meeting presentation, Apr 15, 2024
Slide 1: 2024 Annual Meeting
2024 Annual Meeting April 15, 2024 1
Slide 2: 2023 Strategic Initiatives
2023 Strategic Initiatives • During 2023, focus was directed towards: – Continuing core relationship growth. – Maintaining net interest income. – Reassuring clients of the stability of Cornerstone after the failures of Silicon Valley Bank (“SVB”) and Signature Bank of New York (“Signature”). – Proac
Slide 3: 2023 Bank Highlights
2023 Bank Highlights • Our 2023 plan called for the Prime Rate to increase by 0.50% to 8.00% during Q1 2023 before dropping in the later part of the year. • The Prime Rate increased a full 1.00% to 8.50% where it remains today. • Loans increased $38.4 million, or 6.3%. • Deposits and repurchase agre
Slide 4: 2023 Investment Activities Highlights
2023 Investment Activities Highlights • As our plan called for, the investment portfolio was reduced from maturing securities as rapidly increasing market rates and yield curve inversion limited longer term options. • The portfolio closed 2023 at $100.4 million, a planned reduction of $48.3 million
Slide 5: 2023 Lending Highlights
2023 Lending Highlights • Core lending activities continued in 2023 with strong new client acquisition. • Loan growth in 2023 was well-diversified with 60.0% of the overall growth secured by real estate while 22.6% of the growth came from commercial and industrial loans. • Overall credit quality con
Slide 6: 2023 Lending Highlights
2023 Lending Highlights • Loans increased $38.4 million (6.3%) from 2022. • The allowance for credit losses $8.1 million – 1.25% of loans. (000s) 2023 2022 Change Commercial Real Estate - Owner Occupied $ 186,809 $ 185,196 $ 1,613 Commercial Real Estate – Non-Owner Occupied 122,976 108,753 14,223 Co
Slide 7: 2023 Lending Highlights
2023 Lending Highlights • Revenue from mortgage operations declined sharply as market rates rose through 2022 and into 2023. • There were 50 loans sold in 2023 compared to 144 in 2022. (000s) 2023 2022 Change Mortgage Loans Originated for Sale $ 18,197 $ 48,595 $ (30,398) Proceeds From Loans Sold 17
Slide 8: 2023 Deposits Highlights
2023 Deposits Highlights • Deposits declined $27.0 million (3.1%) during 2023. • Largest month of decline was March in the wake of the failures of SVB and Signature. • More than $45 million of client accounts moved to a full FDIC- insured product throughout the remainder of 2023. • The average balan
Slide 9: 2023 Wealth Management Highlights
2023 Wealth Management Highlights • Overall revenue was $3.6 million in 2023, slightly ahead of 2022’s $3.5 million. • New accounts that opened in 2023 had a value of more than $65 million at year end. • An improved economic outlook also had a positive impact on investment values in 2023. (000s) 202
Slide 10: 2023 Corporate Highlights
2023 Corporate Highlights • In the first quarter of 2023, the Corporation repaid the remaining $5 million of its highest cost debt. • Capital retention at the Bank remained a priority following concerns over the failures of SVB and Signature in March 2023. • The table below shows the trend of the Ba
Slide 11: 2023 Corporate Highlights
2023 Corporate Highlights • The Corporation began a stock repurchase program in early 2023. • The Corporation repurchased 13,049 shares during 2023. • This was a favorable strategy as the Corporation’s tangible book value per share. 11
Slide 12: Creating Shareholder Value
Creating Shareholder Value The Corporation is continuing a trend of creating long-term shareholder value. Basic Annual Regulatory Tangible Average Year Ending Earnings Per Dividend Book Value Book Value Shares Share Per Share Per Share Per Share Outstanding December 31, 2016 $ 6.13 $ ------ $ 69.46
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance Sheet Information 1,100,000 1,100,000 989,110 1,000,000 1,000,000 950,731 958,795 891,183 899,327 900,000 900,000 860,067 861,203 808,124 800,000 800,000 700,000 700,000 632,974 - 600,000 386 600,000 572,617 31,558 131,245 500,000 500,000 647,640 608,744 559,949 400,000
Slide 14: Asset Quality Trends
Asset Quality Trends Asset Quality Information 9,000 3.50% 8,085 8,131 8,131 8,000 3.00% 7,235 7,076 7,000 2.50% 6,000 2.00% 5,001 5,000 1.50% 3,912 4,000 1.00% 3,000 2,022 0.50% 2,000 1,400 1,273 1,000 0.00% 2019 2020 2021 2022 2023 Loan Loss Reserve Non-Performing Loans Loan Loss Reserve \ Loans N
Slide 15: Net Interest Margin Trends
Net Interest Margin Trends Net Interest Margin Trends 5.50% 5.11% 5.00% 4.50% 4.29% 4.00% 3.82% 3.50% 3.56% 3.40% 3.35% 3.50% 3.26% 3.14% 3.05% 3.00% 2.63% 2.50% 2.00% 1.50% 1.30% 0.92% 1.00% 0.65% 0.52% 0.50% 0.00% 2019 2020 2021 2022 2023 Yield On Earning Assets Cost of Funds Net Interest Margin 1
Slide 16: Looking Forward to 2024
Looking Forward to 2024 • The Board of Directors of the Corporation approved a dividend of $2.50 per share that was paid in February 2024. • In 2024, the Corporation has repurchased an additional 15,064 shares of its common stock at an average price below tangible book value per share. • Bank manage
Slide 17: 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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