CHATTANOOGA, Tenn., Jan. 7, 2013 /PRNewswire/ -- Cornerstone Bancshares, Inc. ("Cornerstone"; OTC Bulletin Board: CSBQ; CSBQP), parent company of Cornerstone Community Bank, today announced the completion of its Preferred Stock Offering ("Offering"), after successfully selling all 600,000 shares of its Series A Convertible Preferred Stock and raising $15 million in new capital.
"We are thrilled to meet our goal and to declare this capital campaign a resounding success," said Cornerstone's Chairman Miller Welborn. "The Chattanooga community really rallied to our support and recognized the importance of a strong community bank," he said. "With this solid capital foundation, Cornerstone is in a much better position to continue growing and serving this market for many years to come."
Cornerstone launched the Offering with the new security in the third quarter of 2010, in an effort to shore up its capital reserves during the recession. At the end of the third quarter of 2012, and after seven consecutive quarters of positive earnings, Cornerstone had raised approximately $10 million. As of December 31, 2012, Cornerstone sold the final shares of its Preferred Stock to reach its ultimate goal of $15 million.
"Crossing the finish line with this capital campaign is a huge accomplishment for Cornerstone," said Cornerstone's President and Chief Executive Officer Frank Hughes. "It's an exciting new juncture and new day at Cornerstone," he said. "What a great way to begin the New Year!"
Founded in 1996, Cornerstone is a single-bank holding company, with $421 million in assets, serving the Chattanooga, Tennessee MSA, with five full-service branch locations 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.
Certain of the statements made in this release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of Cornerstone and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which Cornerstone operates, governmental regulations, the company's competitive environment, cyclical and seasonal fluctuations in its operating results, and other risks.
SOURCE Cornerstone Bancshares, Inc.