Cornerstone Bancorp (AMEX:CBN)
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From May 2019 to May 2024
Merrill J. Forgotson, President and Chief Executive
Officer of Cornerstone Bancorp, Inc. (the "Bancorp"), today reported
consolidated net earnings for the Bancorp and its subsidiary,
Cornerstone Bank (the "Bank"), for the third quarter of 2005.
On April 13, 2005 Cornerstone Bancorp announced it had signed a
definitive agreement with NewAlliance Bancshares, Inc. (NYSE: NAL),
pursuant to which NewAlliance will acquire all the outstanding shares
of Cornerstone Bancorp, Inc. in a cash-and-stock transaction valued at
approximately $48.7 million. All required regulatory and shareholder
approvals have been received and the transaction is expected to be
completed in early January.
The total assets of Cornerstone Bancorp, Inc. increased to
$220,943,000 on September 30, 2005 compared to $211,802,000 on
December 31, 2004, an increase of 4%. Loans, including loans held for
sale, increased to $133,031,000 on September 30, 2005 compared to
$132,611,000 on December 31, 2004. Total deposits increased to
$186,061,000 on September 30, 2005 from $177,127,000 on December 31,
2004, an increase of 5%. Book Value per common share increased to
$18.68 on September 30, 2005 from $17.96 on December 31, 2004, an
increase of 4%. Cornerstone Bancorp had 1,348,671 shares of common
stock, net of treasury stock, outstanding as of September 30, 2005.
While the Bancorp's net interest income for the nine months ending
September 30, 2005 amounted to $7,244,000 as compared with $6,449,000
for the nine months ending September 30, 2004, net income for the same
period was $1,078,000, compared to net income of $2,013,000 for the
comparable nine-month period of 2004. This represented $0.82 earnings
per diluted share compared to $1.50 earnings per diluted share for the
same period of 2004. The differences in net income and earnings per
share for these nine month periods are reflective of significant
non-recurring income components in 2004 (1) and merger-related
expenses including legal, accounting and investment banking fees in
2005.
On September 16, 2005, the Board of Directors declared a quarterly
cash dividend of $0.1125 per share. The cash dividend was paid on
October 17, 2005 to stockholders of record as of the close of business
on September 30, 2005.
In Connecticut, Cornerstone Bancorp, through its subsidiary
Cornerstone Bank, operates from three full-service locations in
Stamford, one full-service location in Greenwich, Norwalk and
Westport. The Bancorp also operates one business development office in
Norwalk and four limited service mobile branches. The Bancorp's common
stock is traded on the American Stock Exchange under the symbol CBN.
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Nine Months Ended September 30, 2005 2004
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Total Interest Income $ 9,168,000 $ 8,232,000
Net Interest Income 7,244,000 6,449,000
Provision for Loan Losses 137,000 (529,000)
Income Before Taxes 1,909,000 3,008,000
Income Tax Expense 831,000 995,000
Net Income 1,078,000 2,013,000
Basic Earnings Per Share 0.86 1.66
Diluted Earnings Per Share 0.82 1.50
(1) The first quarter 2004 earnings include income of approximately
$424,000 from the recovery of principal, interest and late charges on
loans to a single borrower that had been charged off in 2000. The
recovery created a credit in the provision for loan losses for the
quarter, which also included the recapture of provisions for
classified loans that were paid off. In addition, non-taxable proceeds
from a key man life insurance policy were received and recorded in the
first quarter of 2004. The insurance proceeds, net of related
increases in benefit accruals, resulted in income of approximately
$342,000. The estimated after-tax effect of these two items was
approximately $0.62 on a basic per share basis and $0.59 per share on
a diluted basis for the first quarter of 2004.
*T
The statements contained in this press release that are not
historical are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Examples of such
forward-looking statements include, without limitation, statements
regarding expectations for earnings, credit quality, and other
financial and business matters. When used in this report, the words
"anticipate," "plan," "believe," "estimate," "expect" and similar
expressions as they relate to the Company or its management are
intended to identify forward-looking statements. All forward-looking
statements involve risks and uncertainties. Actual results may differ
materially from those discussed in, or implied by, the forward-looking
statements as a result of certain factors, including but not limited
to, competitive pressures on loan and deposit product pricing; other
actions of competitors; changes in economic conditions; technological
changes; the extent and timing of actions of the Federal Reserve
Board, including changes in monetary policies and interest rates;
customer deposit disintermediation; changes in customers' acceptance
of the Bank's products and services; and the extent and timing of
legislative and regulatory actions and reforms.
The forward-looking statements contained in this report speak only
as of the date on which such statements are made. By making any
forward-looking statements, the Company assumes no duty to update them
to reflect new, changing or unanticipated events or circumstances.