Cornerstone Bancshares, Inc., parent company of Chattanooga-based Cornerstone Community Bank , reported positive net income of approximately $357,000 for the first quarter of 2012.
The profit represents an increase of 41.7 percent compared to the first quarter of 2011's net income of approximately $252,000, and marks the fifth consecutive quarter of positive earnings for Cornerstone, officials said.
Other financial highlights year-over year for the quarter ended March 31, 2012 include:
5 percent increase in shareholders' equity, from $27,290,000 to $35,890,000
A 66.7 percent increase in market value per common share, from $1.50 to $2.50
An increase in net interest margin, from 3.44 percent to 3.59 percent
An 32.8 percent increase in the Bank's Tier 1 leverage ratio, from 6.1 percent to 8.1 percent
A 24.2 percent increase in the Bank's total risk-based capital ratio, from 10.5 percent to 13.0 percent
"We are greatly encouraged by the continued progress we've made to raise capital, improve our underwriting and collection procedures, and produce positive earnings," said Cornerstone President Frank Hughes. "Our goal is to stay focused on these three main areas, as we endeavor to deliver the best quality banking products, service and value to our customers, and the greatest return on investment to all of our shareholders."
As of March 31, 2012, Cornerstone had raised in excess of $10.4 million in capital through its Preferred Stock Offering launched in the third quarter of 2010. The offering, which has been extended until June 30, 2012, features a Series A Convertible Preferred Stock with a 10 percent annual, cumulative dividend, payable in cash quarterly if, as and when declared. The Preferred dividend has been paid the last four consecutive quarters, based on positive earnings in the preceding quarters. Once the Offering is closed, the new security will trade on the Over-The-Counter (OTC) Bulletin Board under the ticker symbol "CSBQP."
"Having this solid capital foundation will really help us build and grow for the future," said Cornerstone Chairman Miller Welborn. "As our economy here in Chattanooga continues to strengthen and improve, and businesses continue to open and thrive in this market, Cornerstone should be ideally positioned to serve the local community for many years to come."
Cornerstone is a single-bank holding company, with $417 million in assets, serving the Chattanooga MSA, with five branches throughout Chattanooga and one loan production office in Dalton, Ga. Locally owned and locally operated, Cornerstone specializes in providing a