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Cornerstone Bancorp, Inc. First Quarter Financial Update

On April 28, 2026, Cornerstone Bancorp, Inc. released its quarterly report, detailing significant progress made in the first quarter of 2026 compared to the same period in 2025. The company's consolidated net income rose to $2.4 million, translating to $2.48 per diluted share. This marks a notable increase from the $2.0 million and $2.06 per share recorded in the first quarter of last year.

Income Statement Highlights

The bank’s net interest margin (NIM) also exhibited an upward trend, moving from 3.47% in the previous year to 3.86% in the current quarter. Interest income derived from loans escalated dramatically to $11.4 million, compared to $9.7 million in 1Q25. However, there was a decline in interest earned on bank accounts and securities, totaling $1.9 million for 1Q26, down from $2.9 million in 1Q25.

Despite this decline in certain income areas, interest expense related to deposits demonstrated a positive trend, falling to $3.8 million in 1Q26, in contrast to $4.1 million a year ago. Noninterest expenses remained higher than the prior year's figures, totaling $7.5 million compared to $6.9 million in 1Q25, showing a need for heightened cost management.

Balance Sheet Analysis

As of March 31, 2026, Cornerstone Bancorp's total consolidated assets experienced a 2.32% increase, reaching $1.02 billion, compared to $998.9 million for the same period last year. Additionally, the tangible shareholders' equity saw a robust rise of 12.4%, climbing to $91.3 million from $81.2 million.

The bank's commitment to rewarding its shareholders is evident, as it declared a $2.75 per share dividend on February 13, 2026, amounting to $2.7 million. Furthermore, interest-bearing deposits with correspondent banks decreased to $64.8 million, accounting for 6.3% of total assets, compared to 10.7% a year prior.

The securities portfolio showed a downward trend, totaling $165.5 million in 1Q26, down from $212.9 million last year, with a weighted average remaining life of approximately 1.1 years. On a positive note, the loan portfolio expanded significantly, increasing by $111.3 million or 16.9%, to $769.5 million, while deposits rose modestly by 2.3%, reaching $913.4 million.

Maintaining a solid capital base, the bank reported a Tier 1 Leverage Capital Ratio of 10.03% as of the end of the first quarter, indicating a well-capitalized status.

Trust and Wealth Management Performance

In the area of trust and wealth management, the total assets managed rose to $1.16 billion, up from $1.01 billion year-over-year, showcasing the bank's effective strategies in attracting clients in this segment.

About Cornerstone Bancorp, Inc.

Founded in 2000 and located in Palatine, Illinois, Cornerstone Bancorp, Inc. and its subsidiary, Cornerstone National Bank & Trust Company, are dedicated to meeting the banking and investment needs of families and family-owned enterprises in the region. The bank has distinguished itself by prioritizing personal relationships over institutional approaches—a strategic move that has gained traction amid a consolidating marketplace in Chicago where larger banks are shifting focus.

Cornerstone leads in various commercial lending services, offering a wide range of loans—including equipment, real estate, and construction loans—as well as operating lines of credit. Enhanced treasury management services make it a competitive option for businesses. For individuals, it provides wealth management solutions such as investment management, trust and custody services, retirement planning, and estate administration.

To summarize, Cornerstone Bancorp’s first quarter performance in 2026 indicates a strong position within the financial landscape, as it continues to balance an increase in loan portfolio along with a committed effort to shareholder satisfaction and prudent financial management.