Cornerstone Raises $10 Million In New Capital

Monday, February 6, 2012
Cornerstone Chairman Miller Welborn
Cornerstone Chairman Miller Welborn
Cornerstone Bancshares, Inc., parent company of Chattanooga-based Cornerstone Community Bank (the “Bank”), announced that it reached a new benchmark in its capital campaign, by raising in excess of $10 million by yearend 2011. 

 In an effort to further strengthen its capital position, Cornerstone issued a Preferred Stock Offering with a Series A Convertible Preferred Stock, featuring a 10 percent annual, cumulative dividend. As of December 31, 2011, the company had sold $10,052,000 of the new security. 

“We are thrilled with the success of this campaign, especially given the current economic environment and financial sector climate as a whole,” said Cornerstone Chairman Miller Welborn.  “Our customers, employees and the Chattanooga community at large really rallied to support this offering. This achievement of not raising more than $10 million is a true testament to our local market’s faith in Cornerstone, and the Bank’s strength and ability to serve the Chattanooga community.” 

Based on the success of the campaign, the Offering has been extended through June 30, 2012.  Initial shares will be offered on a “first come, first served” basis to the Chattanooga market and the general market thereafter.  The shares are DTC eligible on DRS and will be traded on the Over-The-Counter Bulletin Board upon completion of the offering, under the following ticker symbol:  CSBQP. Dividends on the Preferred Stock are payable in cash quarterly, if, as and when declared, and will accumulate at an annual rate of 10 percent. Cornerstone has made dividend payments on the Preferred Stock the last three consecutive quarters, based on positive earnings in the preceding quarters. 

“We’ve made this a very attractive security and are more than pleased to reward our investors for their generous support of Cornerstone,” said Mr. Welborn. “Our goal is to continue strengthening and improving Cornerstone, in order to provide the highest return on investment to our shareholders and the best possible products, service and value to our customers.” 

Cornerstone is a single-bank holding company with $426 million in assets, serving the Chattanooga, Tennessee MSA.  Locally owned and locally operated, Cornerstone Community Bank was founded in 1996, and is one of Chattanooga’s oldest and largest community banks. With five branches serving the Hamilton County area and one loan production office in Dalton, Georgia, Cornerstone Community Bank specializes in providing a comprehensive range of customized financial solutions for businesses and individuals.



Walker County Business Conference Sponsored By SouthCrest Bank Will Be Held Sept. 26

The Walker County Chamber of Commerce will host its annual Business Conference on Tuesday, Sept. 26. The event will begin at 8:30 a.m. at the Walker County Civic Center. The keynote speaker is Vincent Phipps, an award-winning international speaker, author, trainer, and CEO of Communication VIP Training and Coaching. “Amplify Your Attitude!” combines what Mr. Phipps calls the ... (click for more)

Chattanooga Chamber Calendar Of Events Aug. 21-25

MON/21 Ribbon Cutting for Chicken Salad Chick 10-10:30 a.m. Chicken Salad Chick: 975 E. 3rd St., Ste. 122   TUES/22 YPAC Meetup 7:30-9 a.m. + coffee: 818 Georgia Ave., Ste. 102 Whether you take your coffee hot or cold, you can do it with the best of company.  YP is kicking off a monthly coffee meet-up for YP members only. YP Meet Ups are open to current YPC ... (click for more)

City Seeks To Be Removed As Trustee Of Confederate Cemetery

Mayor Andy Berke on Friday said he has asked City Attorney Wade Hinton, on behalf of the city of Chattanooga, to file the necessary paperwork "to confirm the city is no longer listed as a trustee of a Confederate Cemetery on East Third Street." Mayor Berke said, “Our action today makes it clear that the city of Chattanooga condemns white supremacy in every way, shape and ... (click for more)

Judy Kay Peer, 69, Killed When Train Hits Her Car At Hamill Road Crossing In Hixson

Judy Kay Peer, 69, was killed on Friday night when a train struck her car in Hixson on Friday night. Ms. Peer, a Hixson resident, was driving a 2015 Hyundai Sonata. Police said she  was traveling west on Hamill Road and had stopped at the railroad crossing. The gates were extended with flashing lights and a sounding bell. A train that was traveling northbound on ... (click for more)

Mayor Invites Civil War II - And Response (12)

I just received an email from the Mayor stating that he filed paperwork to remove the city of Chattanooga as the trustee for the Confederate Cemetery on Third Street. I understand the Mayor's intent was to distance the city from it's racist past and subsequent hate, but I feel like this is an interesting move without much thought of the consequences. The Mayor prefaced his ... (click for more)

Berke Plan To Solve Discrimination Is To Kick Dead Veterans To The Curb

Racism and discrimination is wrong. What is the best way for a parent to teach a child the evils of discrimination? Should the parent demonstrate and repetitively incentivize the proper behavior? Or, would it be more productive to badger the child over and over again for the sins of the child's g-g-g-grandfather who died 150 years ago? Would burning the personal effects of the grandfather ... (click for more)