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.


Alexander, Murray Committed to Getting a Result This Year on Legislation to Drive Medical Innovation

The leaders of the Senate health committee, Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.), released the following statement on their work on a Senate version of the 21st Century Cures legislation:  “We continue our work on bipartisan legislation to spur cures and treatments and better health for Americans. We’ve been working for a year and a half on behalf ... (click for more)

JHM Certified Public Accountants Celebrates New Location

After nearly 40 years in their downtown location, Johnson, Hickey & Murchison Certified Public Accountants, a Chattanooga-based CPA firm, is moving to a new site just off Shallowford Road.   “The new location and fresh build-out have provided us with renewed energy and enthusiasm,” said Dean Krech, managing partner for JHM Certified Public Accountants. “We are so thrilled ... (click for more)

City To Begin Shipping Much Of Its Garbage To Bradley County

City Public Works Administrator Justin Holland said the city plans to begin shipping much of its garbage to Bradley County. He said the deal is projected to extend the life of the city landfill at Birchwood by 15 years. Mr. Holland said Bradley County "has a huge landfill and takes garbage from Knoxville and other municipalities. It's regional." He said Bradley County charges ... (click for more)

Man Says He Did Nothing To Provoke Shooting At Bakewell Gas Station; Suspect Says Victim Was Coming Toward Him

A 33-year-old man who was shot in the face during a clash at a Bakewell gas station said he did nothing to provoke the shooting. The man charged said the victim cursed him, then started toward him. General Sessions Court Judge Clarence Shattuck, after a hearing on Tuesday, bound to the Grand Jury a charge of attempted first-degree murder against Donald Stuard II, 29, of Old Washington ... (click for more)

Jimmy Templeton Will Be Missed At The City Yards

If only we had known about the Chattanooga City Council's planned retirement send off for Jimmy Templeton of Public Works, the room would have been filled to overflowing with his friends and admirers - including me.   I have had the honor of knowing and working with Jimmy since the 1970's (and also knew his father "Big Jim").  Jimmy was a strong right hand for whoever ... (click for more)

Roy Exum: Vin Scully’s Last Time

It is said that the opening paragraph of my favorite ode to baseball should be the centerpiece for the canon of sports literature. It was written by former commissioner Bart Giamatti in "The Green Fields of the Mind,” a most marvelous essay to the last day of the regular season in the major leagues. “It breaks your heart. It is designed to break your heart. The game begins in ... (click for more)