$SMBK

CORNERSTONE BANCSHARES INC

CIK:0001038773|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans and leases, including fees	$ 69,546	$ 61,049	$ 135,185	$ 118,811
Securities:
Taxable	5,722	4,848	11,213	9,623
Tax-exempt	565	395	1,121	749
Federal funds sold and other earning assets	2,209	3,161	4,793	6,647
Total interest income	78,042	69,453	152,312	135,830
Interest expense:
Deposits	27,723	28,301	54,252	55,636
Borrowings	371	70	371	140
Subordinated debt	1,884	739	3,748	1,472
Total interest expense	29,978	29,110	58,371	57,248
Net interest income	48,064	40,343	93,941	78,582
Provision for credit losses	1,463	2,411	5,602	3,391
Net interest income after provision for credit losses	46,601	37,932	88,339	75,191
Noninterest income:
Service charges on deposit accounts	1,881	1,766	3,734	3,502
Gain (loss) on sale of securities, net	54	(4)	55	(4)
Mortgage banking	916	633	1,676	1,126
Investment services	1,724	1,440	3,520	3,209
Insurance commissions		1,554		2,967
Interchange and debit card transaction fees, net	1,676	1,342	3,094	2,562
Other	1,635	2,167	3,748	4,133
Total noninterest income	7,886	8,898	15,827	17,495
Noninterest expense:
Salaries and employee benefits	21,015	19,602	41,429	38,836
Occupancy and equipment	3,351	3,432	6,696	6,829
FDIC insurance	920	992	1,670	1,952
Other real estate and loan related expense	806	757	1,597	1,415
Advertising and marketing	408	390	795	772
Data processing and technology	2,683	2,651	5,119	5,309
Professional services	1,366	1,153	2,559	2,521
Amortization of intangibles	454	566	911	1,135
Other	2,952	3,026	6,095	6,097
Total noninterest expense	33,955	32,569	66,871	64,866
Income before income tax expense	20,532	14,261	37,295	27,820
Income tax expense	4,210	2,556	7,293	4,861
Net income	$ 16,322	$ 11,705	$ 30,002	$ 22,959
Earnings per common share:
Basic (in dollars per share)	$ 0.97	$ 0.7	$ 1.78	$ 1.37
Diluted (in dollars per share)	$ 0.96	$ 0.69	$ 1.77	$ 1.36
Weighted average common shares outstanding:
Basic (in shares)	16,824,053	16,778,988	16,822,777	16,773,293
Diluted (in shares)	16,961,750	16,878,736	16,958,496	16,875,608

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 30,002	$ 22,959
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,605	4,317
Amortization of intangible assets	911	1,135
Provision for credit losses	5,602	3,391
Stock compensation expense	1,271	1,234
Net (gain) loss on sale of securities, net	(55)	4
Deferred income tax expense	(119)	66
Increase in cash surrender value of bank owned life insurance	(1,828)	(1,780)
Net losses from sale and write-downs of other real estate owned and other repossessed assets	399	249
Net gains from mortgage banking	(1,630)	(1,070)
Origination of loans held for sale	(24,271)	(16,582)
Proceeds from sales of loans held for sale	27,139	18,164
Net (gain) loss from sale/disposal of fixed assets	(38)	14
Net change in:
Accrued interest receivable	175	(587)
Accrued interest payable	(568)	923
Other assets	(853)	(3,050)
Other liabilities	1,282	(1,078)
Net cash provided by operating activities	40,024	28,309
Cash flows from investing activities:
Proceeds from sales	13,312
Proceeds from maturities, calls and paydowns	33,387	26,175
Purchases	(71,086)	(38,842)
Proceeds from maturities, calls and paydowns	1,232	1,118
Proceeds from sales of other investments	4,206	1,041
Purchases of other investments	(5,906)	(1,666)
Net increase in loans and leases	(320,873)	(219,692)
Proceeds from sale of fixed assets	42	67
Purchases of premises and equipment	(7,401)	(1,707)
Proceeds from sale of other real estate owned and other repossessed assets	893	1,157
Net cash used in investing activities	(352,194)	(232,349)
Cash flows from financing activities:
Net increase in deposits	232,765	185,659
Net decrease in securities sold under agreements to repurchase	(2,406)	(1,169)
Proceeds from borrowings	101,500	1,000
Repayment of borrowings	(101,500)	(1,000)
Cash dividends paid	(2,908)	(2,722)
Issuance of common stock		63
Restricted stock withheld for taxes	(311)	(265)
Net cash provided by financing activities	227,140	181,566
Net change in cash and cash equivalents	(85,030)	(22,474)
Cash and cash equivalents, beginning of period	464,417	387,570
Cash and cash equivalents, end of period	379,387	365,096
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	56,939	56,325
Net cash paid during the period for income taxes	5,680	5,118
Noncash investing and financing activities:
Recognition of operating lease assets in exchange for lease liabilities		614
Acquisition of other repossessed assets	798	1,732
Financed sales of other repossessed assets	$ 183	$ 679