Cornerstone Bancorp, Inc. Quarterly Report - December 31, 2025

Core Insights - Cornerstone Bancorp reported a net income of $3.1 million for Q4 2025, an increase from $3.0 million in Q4 2024, translating to earnings of $3.14 per diluted share compared to $3.02 per diluted share in the previous year [1][8] - For the full year 2025, net income rose by 10.9% to $10.8 million, or $11.00 per diluted share, compared to $9.8 million, or $9.95 per diluted share in 2024 [2][8] Financial Performance - The net interest margin (NIM) improved to 3.77% in Q4 2025 from 3.30% in Q4 2024, and for the full year, it was 3.66% compared to 3.32% in 2024 [8] - Total assets increased by 5.8% to $1.03 billion at year-end 2025, up from $976.9 million a year earlier [8] - The loan portfolio grew to $749.3 million, marking a 15.7% increase from the previous year [3][8] - Deposits rose by 6.2% to $924.9 million compared to $871.3 million a year earlier [8] Asset Quality and Management - The loan portfolio's asset quality remained high, with only two individual credits on nonaccrual status totaling less than $422,000 [3] - The tangible shareholders' equity improved by 13.2% to $91.7 million at December 31, 2025, compared to $81.0 million a year earlier [8] Dividends and Shareholder Returns - Dividends to shareholders were maintained at $2.50 per share for 2025 [8] - The return on average assets was 1.17% for Q4 2025, slightly up from 1.16% in Q4 2024, while the return on average stockholders' equity was 13.34%, down from 13.49% [10]