Attached files
| file | filename |
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| 8-K - CORNERSTONE BANCSHARES, INC. 8-K - SMARTFINANCIAL INC. | a6165209.htm |
Exhibit 99.1
Cornerstone Bancshares, Inc. Announces 4th Quarter 2009 Financial Results
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--February 1, 2010--Cornerstone Bancshares, Inc. (OTCBB: CSBQ) today announced the following:
Cornerstone Bancshares, Inc. (Cornerstone) announced financial results for the fourth quarter of 2009 with a net loss of $2.96 million or ($0.46) per share. Year-to-date, Cornerstone reports a net loss of $8.18 million or ($1.26) per share. The fourth quarter 2009 loss was a direct result of Cornerstone’s continued commitment to reduce problem assets, as the Bank provided $4.15 million of additional provision for loan losses. During the fourth quarter 2009, management charged off the loan portfolio’s possible losses and wrote down the Bank’s other real estate to a level that should allow the Bank to sell the property without any further material loss. If the economy does not deteriorate further in 2010, the Bank should see a material improvement in its asset quality metrics and should see improvements in earnings, as problem assets have less of a negative impact on earnings generation. Cornerstone’s net interest margin remained at a historically low rate of 3.27% year-to-date; however, management expects an improvement as the amount of nonaccrual loans decreases and the certificate of deposit portfolio re-prices to lower current rates. The Bank remains committed to reducing expenses and improving core earnings.
Cornerstone expects positive earnings in 2010, as asset quality stabilizes and the associated expenses reduce to allow the Bank’s efficiency to improve.
The Bank’s asset quality improved during the fourth quarter in 2009, as non-performing loans as a percentage of average total loans decreased to 2.14%. The Bank’s past-due loans materially improved from 5.46% at the end of third quarter 2009 to 1.30% as of the end of fourth quarter 2009. Cornerstone had net charge-offs of $5.6 million during the fourth quarter 2009. The Bank’s total non-performing assets increased to $17.5 million, as problem loans identified during the first half of 2009 progressed through the collection cycle. The Bank believes these numbers have reached their height and will begin reducing steadily during 2010.
Overall, Cornerstone is optimistic and has retained its strong core earnings platform that, once its asset quality issues improve, will return as a well-performing company.
Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA, with five full-service branches and one loan production office in Dalton, GA, and $500 million in assets, specializing in business financial services.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which contains a safe harbor for forward-looking statements. The Company relies on this safe harbor in making such disclosures. The statements are based on management's current beliefs and assumptions about expectations, estimates, strategies and projections. These statements are not guarantees of future performance or results and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.
| CORNERSTONE BANCSHARES, INC. | ||||||||||||||||||||||
| Selected Financial Information ( Unaudited) | ||||||||||||||||||||||
| as of December 31, 2009 | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||
| Three Months | Year-to-Date | |||||||||||||||||||||
| Ending December 31 | % | Ending December 31 | % | |||||||||||||||||||
| EARNINGS SUMMARY | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||
| Interest income | $ | 6,610 | $ | 7,401 | -10.7 | % | $ | 26,308 | $ | 30,680 | -14.2 | % | ||||||||||
| Interest expense | 2,762 | 2,978 | -7.3 | % | 11,189 | 12,698 | -11.9 | % | ||||||||||||||
| Net interest income | 3,848 | 4,423 | -13.0 | % | 15,119 | 17,982 | -15.9 | % | ||||||||||||||
| Provision for loan loss | 4,150 | 2,571 | 61.4 | % | 14,899 | 3,528 | 322.3 | % | ||||||||||||||
|
Net interest income (loss) after provision |
(302 | ) | 1,852 | 116.3 | % | 220 | 14,454 | -98.5 | % | |||||||||||||
| Noninterest income | (561 | ) | 496 | -213.1 | % | 541 | 1,892 | -71.4 | % | |||||||||||||
| Noninterest expense | 4,006 | 3,104 | 29.1 | % | 14,276 | 12,538 | 13.9 | % | ||||||||||||||
|
Pretax income (loss) |
(4,869 | ) | (756 | ) | -544.1 | % | (13,515 | ) | 3,808 | -454.9 | % | |||||||||||
|
Income taxes (benefit) |
(1,904 | ) | (320 | ) | -495.8 | % | (5,336 | ) | 1,297 | -511.6 | % | |||||||||||
|
Net income (loss) |
$ | (2,965 | ) | $ | (436 | ) | -579.5 | % | $ | (8,179 | ) | $ | 2,512 | -425.6 | % | |||||||
| Earnings per common share | $ | (0.46 | ) | $ | (0.07 | ) | -559.8 | % | $ | (1.26 | ) | $ | 0.39 | -425.7 | % | |||||||
| Weighted average common shares | ||||||||||||||||||||||
| outstanding | 6,500,396 | 6,493,222 | 6,500,396 | 6,502,828 | ||||||||||||||||||
| Three Months | Year-to-Date | |||||||||||||||||||||
| AVERAGE BALANCE | Ending December 31 | % | Ending December 31 | % | ||||||||||||||||||
| SHEET SUMMARY | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||
| Loans, net of unearned income | $ | 344,606 | $ | 391,885 | -12.1 | % | $ | 363,146 | $ | 385,957 | -5.9 | % | ||||||||||
| Investment securities & Other | 154,441 | 51,664 | 198.9 | % | 103,939 | 47,965 | 116.7 | % | ||||||||||||||
| Earning assets | 499,047 | 443,550 | 12.5 | % | 467,085 | 433,922 | 7.6 | % | ||||||||||||||
| Total assets | 519,520 | 462,576 | 12.3 | % | 484,669 | 452,605 | 7.1 | % | ||||||||||||||
| Noninterest bearing deposits | 38,028 | 43,592 | -12.8 | % | 40,816 | 42,915 | -4.9 | % | ||||||||||||||
| Interest bearing transaction deposits | 57,684 | 69,298 | -16.8 | % | 63,133 | 81,706 | -22.7 | % | ||||||||||||||
| Certificates of deposit | 305,134 | 210,187 | 45.2 | % | 256,551 | 190,221 | 34.9 | % | ||||||||||||||
| Total deposits | 400,845 | 323,077 | 24.1 | % | 360,500 | 314,842 | 14.5 | % | ||||||||||||||
| Other interest bearing liabilities | 92,990 | 102,379 | -9.2 | % | 93,773 | 100,109 | -6.3 | % | ||||||||||||||
| Shareholders' equity | 31,104 | 37,519 | -17.1 | % | 33,600 | 37,435 | -10.2 | % | ||||||||||||||
| Three Months | Year-to-Date | |||||||||||||||||||||
| Ending December 31 | Ending December 31 | |||||||||||||||||||||
| SELECTED RATIOS | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||
| Average equity to | ||||||||||||||||||||||
| average assets | 5.99 | % | 8.11 | % | 6.93 | % | 8.27 | % | ||||||||||||||
| Average net loans to | ||||||||||||||||||||||
| average total assets | 66.33 | % | 84.72 | % | 74.93 | % | 85.27 | % | ||||||||||||||
| Return on average assets | -2.26 | % | -0.37 | % | -1.69 | % | 0.55 | % | ||||||||||||||
| Return on average total equity | -37.82 | % | -4.65 | % | -24.34 | % | 6.71 | % | ||||||||||||||
| Actual Equity on December 31, | $ | 27,837,479 | $ | 36,501,509 | ||||||||||||||||||
| Actual # shares outstanding on December 31, | 6,500,396 | 6,319,718 | ||||||||||||||||||||
| Book value per common share | $ | 4.28 | $ | 5.78 | ||||||||||||||||||
CONTACT:
Frank Hughes, 423-385-3009
President & CEO of Cornerstone
Bancshares, Inc.