Cornerstone Bancorp, Inc. Quarterly Report - December 31, 2025
MWN-AI** Summary
Cornerstone Bancorp, Inc. reported strong financial results for the fourth quarter and full year ending December 31, 2025. The bank holding company, which operates through Cornerstone National Bank & Trust, achieved a net income of $3.1 million, or $3.14 per diluted share, in Q4 2025, up from $3.0 million, or $3.02 per share, in the same quarter of 2024. For the entirety of 2025, net income rose 10.9% to $10.8 million, or $11.00 per diluted share, compared to $9.8 million, or $9.95 per share, in 2024.
Key highlights from the financial report revealed a healthy trajectory for Cornerstone's loan portfolio, which grew by 15.7% to reach $749.3 million. Asset quality remained high, with nonaccrual loans totaling less than $422,000. The net interest margin (NIM) increased to 3.77% in Q4 2025, a notable rise from 3.30% in the same quarter of the previous year, reflecting effective interest rate management.
Total assets expanded by 5.8% year-over-year to $1.03 billion, and tangible shareholders' equity improved by 13.2% to $91.7 million. Trust and wealth management assets also saw a significant increase, totaling $1.16 billion, an increase of 13.4% compared to the previous year.
The report highlighted Cornerstone's commitment to maintaining liquidity and a responsive investment strategy, as noted by Chairman Gerald F. Fitzgerald, Jr. Dividends for shareholders were consistent at $2.50 per share throughout 2025. Overall, Cornerstone Bancorp's strong financial performance reflects its strategic growth in a competitive market while maintaining a solid capital position.
MWN-AI** Analysis
Based on the recently released quarterly report for Cornerstone Bancorp, Inc. (OTCID: CNBP) for the period ending December 31, 2025, several key indicators suggest a positive trajectory for the bank. The notable 10.9% increase in net income to $10.8 million for the year, alongside a fourth quarter earnings growth of 3.9%, reflects strong operational performance. Furthermore, the improved net interest margin (NIM) of 3.77%—up from 3.30% a year earlier—indicates robust asset management capabilities.
The growth in the loan portfolio by $101.7 million, translating to a significant 15.7% increase year-over-year, is particularly encouraging as it highlights Cornerstone's capacity to capitalize on lending opportunities. The bank's commitment to maintaining high asset quality, with only minimal non-performing loans, underscores effective risk management practices.
Additionally, the positive trend in deposits, which increased 6.2% to $924.9 million, reinforces the bank's expanding customer base and trust in its banking services. Increasing tangible shareholders' equity by 13.2% enhances the bank’s capitalization levels, positioning it well to support future growth.
However, a total increase in non-interest expenses of 18.7% for the fourth quarter could raise concerns about cost management. It is critical for management to focus on controlling these expenses to maintain profitability ratios.
For investors, the dividend stability at $2.50 per share presents a reliable return on investment, complemented by a price-to-earnings ratio of approximately 13.64, which may attract value-oriented investors.
In conclusion, while Cornerstone Bancorp's performance indicators suggest strength and resilience, vigilance around cost controls and maintaining asset quality will be essential as it navigates potential market uncertainties. Investors may consider Cornerstone as a compelling opportunity for steady growth, particularly within the commercial banking sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Cornerstone Bancorp Earns $3.1 Million for the Fourth Quarter, and $10.8 Million for the Year 2025
PALATINE, Ill., Jan. 27, 2026 /PRNewswire/ -- Cornerstone Bancorp, Inc. (OTCID: CNBP), the bank holding company for Cornerstone National Bank & Trust Company (collectively "Cornerstone"), today reported net income of $3.1 million, or $3.14 per diluted share, for the fourth quarter of 2025, compared to $3.0 million, or $3.02 per diluted share, for the fourth quarter of 2024.
For the year ended December 31, 2025, net income increased 10.9% to $10.8 million, or $11.00 per diluted share, compared to 2024's earnings of $9.8 million, or $9.95 per diluted share. All 2025 results are unaudited.
"Cornerstone's investment portfolio continues its very short duration and provides high levels of liquidity to take advantage of credit opportunities," stated Gerald F. Fitzgerald, Jr., Chairman of Cornerstone Bancorp, Inc.
"We were very pleased with the growth of Cornerstone's loan portfolio in 2025 which exceeded $99 million, 15%. Asset quality still remains very high with only two individual credits on nonaccrual status totaling less than $422,000," Fitzgerald continued.
Fourth Quarter and Full Year 2025 Highlights:
- Consolidated net income was $3.1 million, or $3.14 per diluted share, in the fourth quarter of 2025, compared to $3.0 million, or $3.02 per diluted share, in the fourth quarter of 2024.
- For 2025, net income increased 10.9%, to $10.8 million, or $11.00 per diluted share compared to $9.8 million, or $9.95 per diluted share, in 2024.
- The net interest margin (NIM) was 3.77% in the fourth quarter of 2025, compared to 3.30% in the fourth quarter of 2024. For the full year 2025, the NIM was 3.66% compared to 3.32% in 2024.
- Total assets increased 5.8% to $1.03 billion at year-end, compared to $976.9 million a year earlier.
- Tangible shareholders' equity improved 13.2% to $91.7 million at December 31, 2025, compared to $81.0 million a year earlier.
- Interest-bearing deposits at correspondent banks totaled $65.6 million on December 31, 2025 (6.3% of total assets) compared to $86.1 million a year earlier (8.9% of total assets).
- The securities portfolio totaled $198.0 million on December 31, 2025, compared to $218.9 million a year earlier. The weighted average remaining life approximates 1 year.
- The loan portfolio totaled $749.3 million on December 31, 2025, an increase of $101.7 million, or 15.7%, from a year earlier.
- Deposits totaled $924.9 million on December 31, 2025, an increase of $53.6 million, or 6.2%, from a year earlier.
- Trust and wealth management assets totaled $1.16 billion on December 31, 2025, compared to $1.02 billion a year earlier.
- Dividends to shareholders were $2.50 per share in 2025.
- The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 9.86% at December 31, 2025 compared to 10.00% at December 31, 2024.
About Cornerstone Bancorp, Inc.
Founded in 2000, Cornerstone Bancorp, Inc., and its wholly-owned subsidiary, Cornerstone National Bank & Trust Company (collectively "Cornerstone") is committed to serving the commercial banking and investment needs of families and family-owned businesses. Cornerstone serves its clients by investing heavily in people and technology, providing an uncommon relationship experience. Cornerstone has been successful in attracting new clients and talent as the Chicago market consolidates and large banks deemphasize relationships in favor of an institutional approach.
Cornerstone is a leader in commercial lending services including equipment, real estate and construction loans and operating lines of credit as well as business treasury management services.
For individuals and families, wealth management services are offered, including investment management, trust and custody services, retirement plans, and estate and guardianship administration.
Headquartered in Palatine, Illinois, Cornerstone maintains offices in Crystal Lake, Deer Park, Naperville and Schaumburg. Visit us on the web at www.cnbtc.bank.
Forward Looking Statement
This release 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 of historical fact, regarding our financial position, business strategy and management's plans and objectives for future operations are forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect," and "intend" and words or phrases of similar meaning, as they relate to Cornerstone or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management's expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.
FINANCIAL TABLES FOLLOW
Financial Highlights (Unaudited) | ||||||
($ in Thousands, Except Share and Per Share Data) | ||||||
For the Quarter Ending | Year To Date | |||||
Income Statement | 12-31-2025 | 31-Dec-24 | % Change | 12-31-2025 | 31-Dec-24 | |
Net Interest Income | 9,776 | 8,320 | 17.5 % | 36,528 | 32,780 | |
Provision for Credit Losses | 320 | 25 | 1180.0 % | 520 | 325 | |
Noninterest Income | 1,577 | 1,365 | 15.5 % | 5,810 | 5,473 | |
Noninterest Expense | 7,304 | 6,154 | 18.7 % | 27,464 | 25,161 | |
Provision for Income Taxes | 640 | 535 | 19.7 % | 3,532 | 3,008 | |
Net Income | 3,088 | 2,972 | 3.9 % | 10,821 | 9,760 | |
Ratios | ||||||
Return on Average Assets * | 1.17 % | 1.16 % | 0.9 % | 1.07 % | 0.98 % | |
Return on Average Stockholders' Equity* | 13.34 % | 13.49 % | -1.1 % | 12.35 % | 12.02 % | |
Net Interest Margin | 3.77 % | 3.30 % | 14.3 % | 3.66 % | 3.32 % | |
Allowance for Loan Losses to Gross Loans ** | 1.23 % | 1.35 % | -8.4 % | 1.23 % | 1.35 % | |
Dividends Per Share | - | - | N\A | 2.50 | 2.50 | |
Earnings Per Share | 3.14 | 3.02 | 3.8 % | 11.00 | 9.95 | |
End of Period | End of Period | |||||
Balance Sheet Data | 12-31-2025 | 31-Dec-24 | % Change | 31-Dec-23 | 31-Dec-22 | |
Total Assets | 1,033,575 | 976,886 | 5.8 % | 958,795 | 989,110 | |
Loans, Net of Allowance for Loan Losses | 740,017 | 638,832 | 15.8 % | 639,509 | 600,999 | |
Deposits and Repurchase Agreements | 924,870 | 871,306 | 6.1 % | 861,203 | 899,327 | |
Trust Preferred Securities | 10,310 | 10,310 | 0.0 % | 10,310 | 10,310 | |
Other Borrowings | - | 7,763 | -100.0 % | 7,763 | 12,763 | |
Tangible Stockholders' Equity | 91,695 | 81,003 | 13.2 % | 73,246 | 61,364 | |
Trust Assets | 1,156,692 | 1,019,951 | 13.4 % | 954,480 | 848,711 | |
Stock Value Per Common Share Data | ||||||
Price-To-Earnings Ratio * | 13.64 | 8.30 | 64.3 % | 6.31 | 6.10 | |
Price-To-Tangible Book Value Ratio | 1.61 | 1.00 | 60.6 % | 0.93 | 1.04 | |
Tangible Book Value Per Share | 93.12 | 82.33 | 13.1 % | 74.36 | 61.73 | |
Number of Shares Outstanding | 984,735 | 983,905 | 985,039 | 994,088 | ||
Average Number of Shares Outstanding | 983,973 | 980,623 | 988,096 | 994,088 | ||
Stock Price - High | 150.00 | 82.59 | 70.00 | 64.80 | ||
Low | 81.25 | 69.00 | 64.10 | 63.10 | ||
Ending | 150.00 | 82.59 | 69.50 | 64.30 |
SOURCE Cornerstone Bancorp, Inc.
FAQ**
How did Cornerstone Bancorp Inc (Del) CNBP's net interest margin increase from 3.30% in Q4 2024 to 3.77% in Q4 2025, and what strategies contributed to this improvement?
Considering Cornerstone Bancorp Inc (Del) CNBP's loan portfolio growth of 15.7% in 2025, what types of loans drove this increase, and how does the company plan to maintain this momentum in the upcoming year?
With only two credits on nonaccrual status totaling less than $422,000, what measures is Cornerstone Bancorp Inc (Del) CNBP taking to ensure continued high asset quality and minimize credit risk in an evolving economic landscape?
Given the increase in noninterest expenses by 18.7% in Q4 2025 compared to Q4 202what factors contributed to this rise, and how is Cornerstone Bancorp Inc (Del) CNBP managing operational efficiency to control costs moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Cornerstone Bancorp Inc (Del) (OTC: CNBP).
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