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.



TVA Inspector General Resigns To Be U.S. Attorney For Southern District Of Alabama

The TVA Inspector General, Richard W. Moore, was confirmed by the United States Senate on Sept. 14, as the new U.S. Attorney for the Southern District of Alabama after having been nominated by President Donald J. Trump in June of this year. Mr. Moore submitted his resignation letter as Inspector General to President Trump effective the date of his appointment as the ... (click for more)

Chattanooga Chamber Calendar For Sept. 25-29

Here is the calendar for the Chattanooga Chamber of Commerce for Sept. 25-29: Tuesday, Sept. 26, Government Contracting: Managing the Maze to Get the Contract 9-11:30 a.m. BrightBridge Women’s Business Center: 535 Chestnut St., Ste. 161 Are you ready for government contracting? How to sell your products and services to federal, state and/or local governments. How to register ... (click for more)

Witness Says Morse Told Him "His Emotions Got The Best Of Him" At Triple Killing In Lookout Valley

A witness told a Criminal Court jury on Friday that Derek Morse told him "his emotions got the best of him" at a triple killing in Lookout Valley. Michael Shavers also said Morse told him in detail about the slayings of John "Jake" Lang, Jon Morris and Caleb Boozer and the shooting of Matthew Callan at the Rolling Hills Trailer Park on April 9, 2014. Morse is standing trial ... (click for more)

Prosecutor Calls For "Meaningful Punishment" For Dyer, Brennan In $4.9 Million Swindle

Federal prosecutor James Brooks is calling for a "meaningful sentence" for Doug Dyer and James Brennan, who are charged in a $4.9 million swindle. He rejected arguments that they should receive leniency due to their age and health problems. They are set to be sentenced next Friday at 9 a.m. by Judge Travis McDonough. Prosecutor Brooks said concerning Dyer, "As this Court ... (click for more)

September Is Prostate Cancer Awareness Month

The calendar fills up quickly in September as families return to a packed routine after quieter summer days. Unfortunately, your health might take a backseat to your busy schedule. So make a note on your calendar that September is Prostate Cancer Awareness Month, and remind yourself—or the men in your life—about the importance of a healthy prostate.   Prostate cancer is ... (click for more)

Roy Exum: I Am Very Privileged

A California professor who teaches sociology at San Diego State told her students she would give each extra credit if they would participate in a “White Privilege Checklist” the other day. Understand, there is no pass or fail but, the more of the 20 statements you agree with, reveals you are “more guilty” of being white and therefore more “privileged” than those who are not. ... (click for more)