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.