After announcing two consecutive quarters of positive earnings, Chattanooga-based Cornerstone Bancshares, Inc., holding company of Cornerstone Community Bank, kicked off a preferred stock offering to raise up to $15 million in capital. The preferred stock features a 10 percent cumulative, annual dividend and may be converted to common at a rate of five common shares for each preferred share.
“Since opening our doors in 1996, Cornerstone has been a true hometown bank, dedicated to serving the needs of businesses and individuals in our local community,” said Cornerstone’s Chairman of the Board Miller Welborn. “We believe this new stock allows members of the Chattanooga community to own a piece of Cornerstone at a potentially high return, while solidifying our capital position for many years to come.”
The offering includes 600,000 shares of Series A Convertible Preferred Stock, at a price of $25 per share, with a minimum purchase of 400 shares per investor and a maximum purchase of 100,000 shares per investor. The 10 percent annual dividends are payable quarterly and will accumulate if not paid. The preferred stock will have priority ranking over the common stock with respect to dividend payments and liquidation rights.
The Series A Convertible Preferred Stock will be sold on a “first-come, first served” basis through Cornerstone Bancshares, Inc. of Chattanooga. It will be traded on the Over-The-Counter Bulletin Board (OTCBB) after completion of the offering.
For more information or to participate in the offering, please contact Miller Welborn at 385-3067 or Frank Hughes 385-3009 at Cornerstone Community Bank.
“Our Board and executive management team are fully vested in Cornerstone’s future and have committed 100 percent to participate in this offering,” said Mr. Welborn. “We invite the Chattanooga community, and friends and family of Cornerstone Community Bank, to join us in this investment opportunity.”
Cornerstone Bancshares, Inc. is a single-bank holding company, with $520 million in assets, serving the Chattanooga, Tennessee MSA, with five offices throughout Chattanooga and one loan production office in Dalton. Locally owned and locally operated, Cornerstone specializes in providing a comprehensive range of customized financial solutions for businesses and individuals.