Cornerstone Announces Termination Of Consent Order

Wednesday, September 5, 2012

Cornerstone Bancshares, Inc. (Over-the-Counter Bulletin Board: CSBQ; CSBQP), the holding company of Cornerstone Community Bank (Bank), on Wednesday announced the termination of the Consent Order, dated April 2, 2010, between the bank and the Federal Deposit Insurance Corporation (FDIC).  The Consent Order, related to strengthening the bank’s capital position and improving asset quality, was lifted after regulators determined the bank had met all regulatory requirements and successfully raised in excess of $12 million in capital through a Preferred Stock Offering (Offering).

 

 

“This is a significant event for Cornerstone and testament to the hard work of our entire team, at all levels,” said Cornerstone’s President and CEO Frank Hughes. “While we’re pleased that the regulators have recognized and acknowledged the progress made, we will continue to work diligently to improve our asset quality, clean up the balance sheet and continue on this path to greater profitability.”

 

Cornerstone recently reported its sixth consecutive quarter of positive earnings and has paid the quarterly dividend on its Preferred Stock, based on those six quarters.  Launched in the third quarter of 2010, the Offering features a Series A Convertible Preferred Stock with a 10 percent annual, cumulative dividend.   

 

“We are fortunate to be located in such a thriving, progressive market as Chattanooga, where there is great opportunity for a strong community bank,” said Cornerstone’s Chairman Miller Welborn.  “Our goal is to continue serving our customers and building on Cornerstone’s solid foundation for the future.”

 

Founded in 1996, Cornerstone is a single-bank holding company, with $421 million in assets, serving the Chattanooga, Tn. MSA, with five full-service branch locations throughout Chattanooga and one loan production office in Dalton, Ga. Locally owned and locally operated, Cornerstone specializes in providing a comprehensive range of customized financial solutions for businesses and individuals.

 


Drunk Driving Charge Reinstated By State Supreme Court After Finding That Police Acted Reasonably

The Tennessee Supreme Court has reinstated charges of driving under the influence and violating the open container law against Williamson County resident Mechelle Montgomery in an opinion that restores evidence gained during a search. In February of 2012, two officers with the Williamson County Sheriff’s Office were dispatched to the residence of a woman named Corey Brown, who ... (click for more)

State Supreme Court Rules That Employee Does Not Qualify As Whistleblower

The Tennessee Supreme Court has affirmed the dismissal of a whistleblower claim by Charles Haynes, a former employee of Formac Stables, Inc., in Obion County. Mr. Haynes worked as a groom at Formac Stables. In April of 2010, hesuffered an injury to the head when kicked by a Tennessee Walking Horse named “Bruce Pearl.” Mr. Haynes claimed that Formac’s owner refused to allow him ... (click for more)

Hard Freeze Predicted In The Area For Saturday Night

Temperatures are expected to drop Saturday night to 28 degrees or less. Here is the latest report from the National Weather Service:  HARD FREEZE WARNING REMAINS IN EFFECT FROM MIDNIGHT EDT /11 PM CDT/ TONIGHT TO 11 AM EDT /10 AM CDT/ SUNDAY... * EVENT... A HARD FREEZE EXPECTED WITH LOWS FROM THE TEENS NORTH TO THE UPPER 20S SOUTH LATE TONIGHT AND SUNDAY MORNING. ... (click for more)

Man Charged In Shooting On Sixth Avenue Had Been Shot Himself Last Week; Police Say Incident "Part Of Gang War"

A man charged with attempted first-degree murder on Sixth Avenue Court on Thursday afternoon was shot himself earlier this month. O'Shae Kadaris Smith, 20, of 2114 E. 12th St., is also charged with reckless endangerment, aggravated assault and possessing a firearm during the commission of a crime. He was one of two people shot on Rawlings Street on March 16. Kendre Allen, ... (click for more)

Finley Stadium Needs To Grow Up - And Response

RE:  Finley Stadium Financial Picture Rosy; Beer And Alcohol Sales Approved; AstroTurf Almost Ready and City, County Pitching In $250,000 Each For New Finley Stadium AstroTurf I read a story here five days ago about a rosy future for Finley stadium. It lead me to believe that the stadium was making money and even improvements with donations.  Then we get a short ... (click for more)

Roy Exum: The Sunday Funnies

They say March roars in like a lion and leaves like a lamb. So as you reach for your lambs-wool sweater on this last Sunday of the month, allow me to lighten up a bit with a new edition of my Sunday Funnies. I have a delightful crowd that keeps me supplied in jokes and these are some of the best that have come my way: A WOMAN'S PERFECT BREAKFAST -- She's sitting at the table ... (click for more)