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.


Chattanooga Business Calendar For Feb. 28-March 6

March 2015   SA/28 24Hour Generator at Mad, Bad, and Dangerous 3:00 p.m. Girls Preparatory School: 205 Island Ave. 24Hour Generator is a new event designed for enterprising high school girls across the region. Hosted by The Company Lab (CO.LAB) and held as part of GPS’s inaugural  Mad, Bad, and Dangerous  event, 24Hour Generator ... (click for more)

Georgia Department Of Labor Helping To Recruit Textile Workers

The Georgia Department of Labor (GDOL) will help a staffing company, TiDra, Inc., recruit about 85 workers for two textile manufacturing companies in the Dalton area.  The recruitment will be held  Monday, March 9 , from  9 a.m. to 3 p.m.  at the GDOL’s Dalton Career Center, 1406 Chattanooga Avenue. The company is recruiting operators for coater ... (click for more)

FCC Votes 3-2 To Approve EPB's Request To Expand Its Broadband Offerings

The Federal Communications Commission voted 3-2 on Thursday to allow EPB to expand its broadband offerings to neighboring communities. Chairman Tom Wheeler and two other Democrats were in favor, while the two Republican members said the agency was acting illegally in overriding state law. EPB's phone, Internet and TV offerings have been far more successful than expected and ... (click for more)

Hamilton County Schools, UTC To Close Friday; Other Closings Announced

Due to remaining snow on some of the roadways and the potential for black ice overnight and into the morning, Hamilton County Schools will be closed on  Friday . School Age Child Care will also be closed. Employees who accrue vacation will report by  10 a.m.  and maintenance employees will report on regular schedule.  All classes are being ... (click for more)

Chattanooga Has Always Been A Battleground Between Good And Evil

From the thousands slain in nearby Chickamauga Battlefield during the Civil War…  To the launching point of the Cherokee Indian’s Trail of Tears…  To the lunch counter sit-ins led by Howard School students — the only high school student sit-ins in the nation — during the Civil Rights Movement…  To Walter Cronkite calling the polluted Southern industrial town ... (click for more)

Roy Exum: Our 92-Year-Old Victim

It is with great pride, and far greater relief, that I can report a “caretaker” is far different than a “boyfriend.” A story out of Memphis earlier this week morphed into a virtual fireball that had such power it appeared on the front page on a London newspaper and other news outlets all around the world when it was reported by the Associated Press a 28-year-old man had assaulted ... (click for more)