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.


Justin Robinson State Farm Celebrates Grand Opening Feb. 2

Justin Robinson State Farm will celebrate a grand opening with a ribbon cutting ceremony on Thursday, Feb. 2, at 11 a.m. at 1459 North Mack Smith Road.  The Chattanooga Area Chamber of Commerce will co-host this event with Justin Robinson State Farm.  Mr. Robinson said he has made it his life goal to serve the East Ridge and Chattanooga community with his ... (click for more)

BlueCross Taps Lawrence As Director of Ancillary, Behavioral Contracting

BlueCross BlueShield of Tennessee selected Scot Lawrence as director of ancillary and behavioral health contracting. In this role, Mr. Lawrence is responsible for defining and directing state-wide contracting strategies and negotiations for ancillary providers, including lab, home health, skilled nursing, and dialysis providers, as well as behavioral health providers such ... (click for more)

School Board Votes To Issue RFPs For Private School Bus Service; Allows Independent Drivers To Add 20 Routes

The Hamilton County School Board voted unanimously to issue a Request-for-Proposals (RFP) to private bus companies at a special-called session early  Saturday  afternoon.   The vote came at the end of a two-day strategy session where the school board has confronted a list of challenges but the busing question, spurred by the tragic bus wreck in November ... (click for more)

3 People Shot Early Saturday Morning On East 3rd Street

Three people were shot on East 3rd Street early Saturday morning. They were identified as Countess Clemons, 24, Kezia Jackson, 23, and Dutchess Lykes, 26.   The Chattanooga Police Department responded at 2:40 a.m. to a person(s) shot call at a local hospital. All three victims were transported to the hospital via a personally-owned vehicle.   All three ... (click for more)

A Light Rain Began To Fall - And Response (2)

Around noon Friday, Jan. 20, 2017, Donald J. Trump was sworn in as the 45th President of the most powerful nation on Earth after a long and sometimes bitter campaign where 17 GOP candidates of his own party and two of the opposing party competed for the honor.   Thousands rejoiced in the Washington D.C. streets while policemen who had come along with national guardsmen pushed ... (click for more)

Roy Exum: Jumoke’s Thuggery Ends

Jumoke Johnson, the most notorious criminal in Chattanooga’s recent history, was killed by a rain of bullets in the 2100 block of East 12 th Street at little after 8 o’clock Friday night and for the many of us who have kept up with the 23-year-old, you wonder how he ever lasted this long. He was aptly proclaimed as the “most dangerous man” to ever have been sentenced in Chattanooga’s ... (click for more)