Cornerstone Bancshares, Inc., holding company of Cornerstone Community Bank, Wednesday announced the declaration of its next quarterly preferred stock dividend, payable on May 30, to all preferred shareholders of record as of Dec. 31. This marks the fifth consecutive quarterly payment of the preferred dividend, based on positive earnings in preceding quarters.
“The Chattanooga community has shown us a tremendous amount of faith and loyalty by participating in this Preferred Stock Offering,” said Cornerstone President Frank Hughes. “We are extremely pleased to be able to reward them generously for their support.”
The offering, scheduled to close June 30, features a new class of security at $25 per share, with a 10 percent, annual, cumulative dividend, paid in cash quarterly if, as and when declared. Once the offering is closed, the new security will trade on the Over-The-Counter Bulletin Board under the ticker symbol “CSBQP.” To date, Cornerstone has raised nearly $11 million in new capital through the offering.
“We intentionally made this a very attractive investment opportunity, in order to encourage as much participation as possible and to fortify our capital position,” said Cornerstone Chairman Miller Welborn. “With the success of this capital campaign, we now look forward to building on a solid foundation for the future.”
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. Locally owned and locally operated, Cornerstone specializes in providing a comprehensive range of customized financial solutions for businesses and individuals.