#United States #Financial Services #Palatine #Cornerstone Bancorp #Trust Management

Cornerstone Bancorp, Inc. Reports Financial Outcomes for Q2 2025

Cornerstone Bancorp, Inc., headquartered in Palatine, Illinois, has released its financial report for the second quarter of 2025, revealing impressive growth in various financial metrics. As of June 30, 2025, the bank reported a consolidated net income of $2.8 million, equivalent to $2.81 per diluted share. This marks a substantial increase from the previous year’s $2 million, or $2.05 per diluted share. These results reflect the bank's commitment to enhancing its operational effectiveness and driving profitability.

Income Statement Highlights

The income statement for Q2 2025 has several noteworthy elements:

• - The net interest margin (NIM) showed an increase, rising to 3.65% from 3.27% a year prior. This growth suggests a stronger relationship between the interest earned and the interest paid, benefiting the bank's overall profitability.
• - Interest earned on interest-bearing deposits at correspondent banks amounted to $964,000, a decrease from $1.5 million in Q2 2024. Despite this, the bank successfully managed its interest income balance.
• - Interest from US Treasury securities was reported at $1.4 million, which remained steady compared to $1.5 million in the same quarter of the previous year. Notably, these securities are exempt from Illinois income taxes, offering an attractive investment return.
• - In terms of operational expenses, noninterest expense slightly increased to $6.5 million from $6.4 million year-over-year, indicating careful management of costs amidst growth.

Balance Sheet Highlights

The bank's balance sheet as of June 30, 2025, reflects a solid position:

• - Total consolidated assets have risen to $1.0 billion, marking a 1.4% increase from $986 million the previous year. This expansion underscores ongoing growth strategies.
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Tangible shareholders' equity increased significantly, climbing 14% to $84.5 million, compared to $74.1 million a year before. This improvement signals a stronger foundation for future investments and stability for shareholders.

• - Interest-bearing deposits at correspondent banks represented 8.9% of total assets, down from 14.4% a year earlier, indicating a strategic realignment in asset management.
• - The securities portfolio increased to $206.2 million from $181.1 million in 2024, showcasing the bank's effective investment strategies.
• - The loan portfolio also saw a robust growth of 7.2%, totaling $686.1 million, with an addition of $45.9 million compared to the previous year. This growth in loans illustrates Cornerstone’s success in attracting and retaining clients across various market sectors.
• - Despite fluctuations, total deposits increased by 0.7%, reaching $891.6 million, affirming customer confidence in the bank’s services.
• - Notably, other borrowings decreased to $5.5 million from $7.8 million, reinforcing Cornerstone's financial stability and reduced liability.
• - According to the regulatory metrics, the bank's Tier 1 leverage capital ratio stood strong at 10.32%, indicating solid capital strength.

Trust and Wealth Management

An additional highlight of Cornerstone's performance is its trust and wealth management assets, which amounted to $1.06 billion, up from $975.9 million the previous year. This growth signals the bank’s success in establishing a reputable wealth management service amidst its commercial banking operations.

About Cornerstone Bancorp, Inc.

Founded in 2000, Cornerstone Bancorp, Inc. and its subsidiary, Cornerstone National Bank & Trust Company, are dedicated to addressing the unique banking and investment requirements of families and family-owned businesses. Unlike larger financial institutions, Cornerstone emphasizes personalized relationships and tailored financial solutions. The bank specializes in commercial lending, including notable services in equipment financing, real estate loans, and sophisticated treasury management for businesses. In addition, Cornerstone offers a suite of wealth management services for individuals, including investment management and estate planning.

This quarter's outcomes and overall trajectory depict Cornerstone Bancorp's capacity to navigate market challenges, maintain strong growth, and deliver value to its customers and stakeholders. As the bank continues to evolve within the Chicago market, it remains focused on innovation and expanding its service offerings. For more information about Cornerstone Bancorp and its services, visit www.cnbtc.bank.