Cornerstone Bancorp Inc. · OTC:CNBP
Cornerstone Bancorp — Shareholder Meeting (April 2022)
15 slides from Cornerstone Bancorp's shareholder meeting presentation, Apr 18, 2022
Slide 1: Cornerstone Bancorp, Inc. 2022 Annual Meeting
CORNERSTONE BANCORP, INC. 2022 Annual Meeting April 18, 2022 1
Slide 2: 2021 Strategic Initiatives
2021 Strategic Initiatives • During 2021, our focus was directed towards: – Participation in Round 2 of the Paycheck Protection Program (“PPP”) – Guiding clients through the PPP forgiveness process – Emerging from the COVID-19 restrictions to resume more direct client interaction – Core relationship
Slide 3: 2021 Bank Highlights
2021 Bank Highlights • The Bank operated in a historically-low interest rate environment • Mortgage rates continued at all-time low levels • The Bank was active in Round 2 of PPP and secured forgiveness proceeds at a pace faster than its peer group • New client growth was significant 3
Slide 4: 2021 Lending Highlights
2021 Lending Highlights • The Bank was active in both rounds of PPP • We funded almost 1,500 loans totaling $321 million • Forgiveness proceeds since the beginning of PPP total more than $302 million • We collected fees totaling $11.7 million through the PPP, $11.2 million has been earned by normal
Slide 5: 2021 Lending Highlights
2021 Lending Highlights • Loans, excluding PPP, increased $96.1 million (20.7%) from 2020 • The allowance for loan losses $8.1 million – 1.44% of loans, excluding PPP (000s) 2021 2020 Change Commercial Real Estate - Owner Occupied $ 181,809 $ 166,808 $ 15,001 Commercial Real Estate – Non-Owner Occup
Slide 6: 2021 Lending Highlights
2021 Lending Highlights • Revenue from mortgage operations remained strong as market rates continued at record lows • Total loans sold were 554 in 2021 compared to 937 in 2020 (000s) 2021 2020 Change Mortgage Loans Originated for Sale $ 155,925 $ 291,629 $ (135,704) Proceeds From Loans Sold 171,534
Slide 7: 2021 Lending Highlights
2021 Lending Highlights • The table below demonstrates the change in volume when mortgage rates collapsed in March 2020 before increasing in mid-2021: Quarter # Loans Sold $ Loans Sold Q1 2020 68 $ 20,635,000 Q2 2020 234 $ 70,371,000 Q3 2020 267 $ 75,189,000 Q4 2020 368 $ 101,308,000 Q1 2021 162 $ 5
Slide 8: 2021 Deposits Highlights
2021 Deposits Highlights • Deposits increased $54,379 million (6.8%) from 2020 • Since 2019, deposits have grown $284.1 million • We opened more than 800 new accounts in 2021 and more than 1,000 new accounts in 2020 (000s) 2021 2020 Change Noninterest-Bearing Deposits $ 348,436 $ 306,119 $ 42,317 NO
Slide 9: 2021 Trust Highlights
2021 Trust Highlights • Trust revenue increased to $3.7 million, 14.5% higher than 2020 • Market value of trust assets of $1.02 billion, $204.5 million higher than 2020 (000s) 2021 2020 Change Total Trust Assets $ 1,016,393 $ 811,885 $ 204,508 9
Slide 10: 2021 Corporate Highlights
2021 Corporate Highlights • To bolster the Bank’s capital ratios during the PPP funding period, the Corporation raised $10 million of subordinated debt in mid-2020 which was injected into the Bank • That debt was refinanced at a substantially lower interest rate in late 2021 • All debt is fully prep
Slide 11: Balance Sheet Trends
Balance Sheet Trends Balance Sheet Information 1,050,000 950,731 950,000 891,183 860,067 850,000 808,124 750,000 650,000 632,974 595,141 596,508 568,895 572,617 550,000 535,508 512,219 478,715 470,890 450,000 420,796 375,552 350,000 250,000 2017 2018 2019 2020 2021 • • • Assets Loans Deposits and Re
Slide 12: Asset Quality Trends
Asset Quality Trends Asset Quality Information 9,000 3.50% 8,085 8,000 3.00% 7,235 6,990 7,076 7,000 T 6,456 2.50% 6,000 2.00% 5,001 5,000 1.72% 1.66% 1.50% 3,912 1.56% 4,000 1.50% 1.43% 3,208 2,961 1.00% 3,000 1.08% 0.85% 0.83% 2,022 0.70% 0.50% 2,000 0.36% 1,000 0.00% 2017 2018 2019 2020 2021 - Lo
Slide 13: Net Interest Margin Trends
Net Interest Margin Trends Net Interest Margin Trends 4.50% 4.29% 4.17% 4.00% 3.82% 3.62% 3.52% 3.50% 3.40% 3.35% 3.19% 3.26% 3.05% 3.00% 2.50% 2.00% 1.50% 1.30% 0.92% 1.00% 0.84% 0.49% 0.52% 0.50% 0.00% 2017 2018 2019 2020 2021 ■ Yield On Earning Assets ■ Cost of Funds ■ Net Interest Margin 13
Slide 14: Looking Forward to 2022
Looking Forward to 2022 • We will continue to submit forgiveness applications for the remaining PPP loans • We anticipate all PPP recipients will pursue full forgiveness • Overall market rates have risen sharply in Q1 2022 • The Fed has raised short-term interest rates once in 2022 and has signaled
Slide 15: 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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