Dear clients and partners of Cornerstone Capital Bank,
In light of recent industry events, banks face many questions about impact, if any, to operations and stability. Due to our exceptionally strong balance sheet – as to capitalization, liquidity, and quality of assets - Cornerstone welcomes those questions, including from those seeking to establish a new relationship with our bank. We offer the following update on our financial condition from a place of confidence.
Estimated CET1, Tier 1 Risk-Based Capital, Total Risk-Based Capital and Leverage ratios stand at approximately 31.8%, 31.8%, 31.9% and 19.35% respectively – among the highest in the nation for a bank of any size.
We are unaware of any bank our size in the country which completed a stress test within the last 18 months on the same conditions required of the largest banks in the country. In fact, our analysis extended to 7 adverse scenarios rather than the two required of the nation’s largest banks. We remain well-capitalized for regulatory purposes in all cases. In fact, our analysis suggests that we would have more than double the amount of minimum capital required by our banking regulatory agencies to achieve well-capitalized status.
Cornerstone’s audited 2022 financial statements reflect strong performance during a difficult year. Those results include one-time non-core charges related to our bank merger last year, and investments made to upgrade our mortgage servicing and digital banking capabilities. These investments are among the things that make us confident in our ability to grow relationships - and to innovate when others cannot.
Cornerstone offers a stable combined operating history dating back to 1906. Our history includes serving the financial needs of generations of families, professionals and business owners. We’ve worked tirelessly to construct balance sheet strength designed to allow us to prosper in the face of the challenges affecting our industry. Cornerstone was built to withstand volatility, and is well-prepared to assist those in need of new banking or mortgage relationships. And, your trust in us remains our top priority.
We welcome your calls and inquiries.
Marc Laird, Chairman and Co-Founder
Scott Almy, CEO