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.

 



Board And Brush DIY Home Decor Concept Signs On At Cambridge Square

Board and Brush Creative Studio, a Do It Yourself home décor design shop, has signed on at Cambridge Square, according to Cambridge Marketing Director Jim Cheney. “I am thrilled to bring Board and Brush to Cambridge Square and Ooltewah to provide a local creative option for a night out with friends and family,” said owner, Wesley Odum. “Board and Brush is the perfect way to ... (click for more)

Chambliss Law Welcomes New Estate And Tax Paralegal Mae Shelley

Chambliss, Bahner & Stophel, P.C. has welcomed Mae Shelley to the firm's estate and tax planning group. Ms. Shelley joins Chambliss as a paralegal with more than 10 years of extensive experience in corporate law, administration and partnerships. Her work focuses primarily on trust administration, and she assists with the planning and navigation of trust requirements. ... (click for more)

Former County Mayor, Deputy Governor Claude Ramsey Dies

Former County Mayor and Deputy Governor Claude Ramsey has died after a recent illness. Mr. Ramsey held a number of top government posts after leaving his strawberry farm at Harrison and going into politics. He was a major factor in the development of the Enterprise South Industrial Park and landing Volkswagen as its main tenant. He served in the state legislature and was ... (click for more)

Gerald McCormick Pulling Out Of House Race; Greg Martin, Tony Sanders, Robin Smith Eye Post

Former House Majority Leader Gerald McCormick has decided to pull out of the House District 26 race and take a position with an engineering firm in Nashville. Among the top contenders considering the post are County Commissioner Greg Martin, former county Republican Party Chairman Tony Sanders and former state GOP Chairman Robin Smith.  He told the Chattanooga Times Free ... (click for more)

Will Chattanooga Miss Another Reinvestment Opportunity?

In April, First Tennessee Bank and the National Community Reinvestment Coalition announced an agreement on a $3.9 billion reinvestment plan for economic development in low to moderate income communities under the 1977 Community Reinvestment Act. The Chattanooga Times Free Press soon followed with an article reviewing the plan in depth. The plan presented Chattanooga, as well as ... (click for more)

Roy Exum: Are We Like Nazis?

Four years after William Styron’s best-seller ‘Sophie’s Choice,’ had achieved the highest height of an atrocity that the literary world had known at the time, a little girl who was birthed the same year as the book (1979) was cast as Meryl Streep’s daughter in the movie. The four-year-old blonde knew nothing about evil, not to mention the Holocaust, but she became enamored with ... (click for more)