CORNERSTONE BANCORP, INC. QUARTERLY REPORT - JUNE 30, 2023

PALATINE, Ill., Aug. 2, 2023

SECOND QUARTER 2023 HIGHLIGHTS (At or for period ended 6/30/2023)

Income Statement Highlights

• Driven by an increased net interest margin, consolidated net income was $2.7 million in 2Q23, or $2.74 per diluted share, compared to $2.6 million in 2Q22, or $2.62 per diluted share.
• The net interest margin (NIM) was 3.54% for 2Q23, compared to 2.97% for 2Q22.
• Interest earned on interest-bearing deposit accounts was $2.5 million for 2Q23 compared to $503,000 for 2Q22.  
• The yield on the loan portfolio rose to 5.56% for 2Q23 compared to 4.59% for 2Q22.
• Noninterest expense was $6.0 million in 2Q23 compared to $5.7 million in 2Q22.

Balance Sheet Highlights

• Total consolidated assets declined 4.8% to $971.9 million at June 30, 2023, compared to $1.02 billion a year earlier primarily from expected client disbursements.
• Tangible shareholders' equity improved 18.8% to $66.9 million at June 30, 2023, compared to $56.3 million a year earlier.
• Interest-bearing deposits at the Federal Reserve Bank totaled $205.1 million at June 30, 2023 (21.1% of total assets) compared to $217.1 million a year earlier (21.3% of total assets).
• The securities portfolio totaled $118.2 million at June 30, 2023, compared to $164.5 million a year earlier. The weighted average remaining life approximates three years.
• The loan portfolio, excluding PPP loans, totaled $627.5 million at June 30, 2023, $21.5 million, or 3.6%, higher than a year earlier.
• Total deposits and repurchase agreements declined 5.4% to $879.9 million at June 30, 2023, compared to $929.9 million a year earlier. Clients are reinvesting in their businesses as balances per deposit account are moving toward the levels of pre-pandemic averages.
• The Corporation's other borrowings have declined to $7.8 million at June 30, 2023 compared to $17.8 million a year earlier.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 9.25% at June 30, 2023.

Trust and Wealth Management

• Trust assets totaled $896.5 million at June 30, 2023, compared to $853.2 million a year earlier. 

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.