Cornerstone Bancshares, Inc. Reports Improvement In 4th Quarter 2012 Earnings

Monday, January 28, 2013
N. Frank Hughes
N. Frank Hughes


Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ; CSBQP) on Monday announced the following:

Cornerstone Bancshares, Inc. (“Cornerstone”) reported net income of $371,000 for the fourth quarter of 2012 and net income of $1,402,000 for the 12 months ended Dec. 31, 2012, which represents a 228.6 percent improvement in net income quarter-over-quarter and a 36.1 percent improvement from the previous year.  

Net interest margin increased from 3.55 percent in 2011 to 3.85 percent in 2012.  In addition, total assets increased 4.2 percent for the year, from $422,655,000 in 2011 to $440,463,000.  There was a 3.4 percent growth in loans for the year, from $267,765,000 in 2011 to $276,992,000 in 2012.  Deposits increased 8.9 percent from $314,042,000 in 2011 to $341,897,000.  In addition, Cornerstone’s market value per common share increased 52.7 percent from $1.50 in 2011 to $2.29 in 2012.  As of Dec. 31, 2012, Cornerstone had sold all 600,000 shares of its Series A Convertible Preferred Stock, raising $15 million in new capital.

Specific Accomplishments Include:

  • $15 million capital raise completion
  • Four consecutive quarters of positive earnings for 2012
  • Four consecutive payments of quarterly Preferred Stock dividends

“We’ve definitely turned a corner and are extremely pleased with our continued improvement,” said Cornerstone’s President and CEO Frank Hughes.  “Our goal is to continue strengthening Cornerstone’s foundation, so that we can build for the future and continue serving our Chattanooga market.”

Cornerstone is a single-bank holding company, with $440 million in assets, serving the Chattanooga, Tennessee MSA, with five branches throughout Chattanooga and one loan production office in Dalton, Georgia. Locally owned and locally operated, Cornerstone specializes in providing a comprehensive range of customized financial solutions for businesses and individuals. 



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