UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Z:/TQDATA/VINEYARD/LIVE JOBS/2012/10 OCT/23 OCT/SHIFT III/CORNERSTONE BANCSHARES/DRAFT/03-PRODUCTION

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)   October 24, 2012

 

CORNERSTONE BANCSHARES, INC.
(Exact name of registrant as specified in its charter)

 

Tennessee 000-30497 62-1173944

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

  

835 Georgia Avenue, Chattanooga, Tennessee 37402
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code   (423) 385-3000

 

 
(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

Item 2.02. Results of Operations and Financial Condition.

 

On October 24, 2012, the Registrant issued a press release reporting earnings results for the fiscal quarter ended September 30, 2012.

 

Item 9.01. Financial Statements and Exhibits.

 

(c) Exhibits

  

99.1 Press release dated October 24, 2012 reporting earnings results for the fiscal quarter ended September 30, 2012.

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  CORNERSTONE BANCSHARES, INC.  
  (Registrant)  
     
Date:  October 24, 2012    
  By: /s/ Nathaniel F. Hughes  
  Nathaniel F. Hughes,  
  President and Chief Executive Officer  

 

 

 

 

Cornerstone Posts Profit for Third Quarter of 2012

 

CHATTANOOGA, Tenn. — October 24, 2012 — (PR Newswire) Cornerstone Bancshares, Inc., (“Cornerstone”; OTC Bulletin Board: CSBQ; CSBQP), holding company of Cornerstone Community Bank (“Bank”), today announced net income of $364,000 for the third quarter of 2012. This marks the seventh consecutive quarter of positive earnings for Cornerstone and an increase from net income of $356,000 for the first quarter of 2012, and $311,000 for the second quarter of 2012.

 

Year-over-year, total net income for Cornerstone increased 12.4 percent at the end of the third quarter, from $917,000 in 2011 to $1,031,000 in 2012. Non-accruing loans decreased from $8.56 million in 2011 to $7.97 million in 2012. Net interest margin increased for the year from 3.51 percent in 2011 to 3.73 percent in 2012. In addition, the Bank’s total risk-based capital ratio increased 20.8 percent year-over-year at the end of the third quarter, from 11.12 percent in 2011 to an estimated 13.43 percent in 2012.

 

"We continue to make steady progress in the right direction," said Cornerstone's President and Chief Executive Officer Frank Hughes. “While we still have a ways to go, it’s nice that the regulators have also recognized our efforts and improvements made across the board.”

 

On August 27, 2012, Cornerstone announced that the FDIC and Tennessee Department of Financial Institutions had officially terminated the Consent Order and Written Agreement entered into with the Bank on April 2, 2010, after loan losses sustained during the ‘Great Recession.” The regulatory agreement provided guidelines for the Bank to improve its capital ratios, loan portfolio and earnings. The release of the Consent Order and Written Agreement were major benchmarks for Cornerstone’s success in aggressively tackling its asset quality issues, cleaning up the balance sheet and raising in excess of $12 million in capital through a Preferred Stock Offering in the local market.

 

"Our customers, shareholders and members of the Chattanooga community have faithfully stood by Cornerstone and are truly vested in our success,” said Cornerstone's Chairman Miller Welborn. "We will continue to work diligently to serve the Chattanooga market as a premier community bank, and to deliver the greatest return on investment for all our shareholders.”

 

Founded in 1996, Cornerstone is a single-bank holding company, with $425 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.

 

Contact : Frank Hughes, Cornerstone President & CEO, 423-385-3009

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary
Third Quarter Financial Highlights
September 30, 2012 and 2011
(Unaudited)
 

 

(Amounts in thousands, except per common share data)   2012     2011     %
Change 		 
Balance Sheet Data at September 30                        
Total assets   $ 425,179     $ 426,365       (0.3 )
Interest-earning assets     391,685       398,316       (1.7 )
Loans     273,820       270,401       1.3  
Foreclosed assets     22,376       18,255       22.6  
Deposits     328,963       322,552       2.0  
Other interest-bearing liabilities     56,555       69,099       (18.2 )
Shareholders' equity     38,128       32,447       17.5  
Loan to deposit ratio     83.24 %     83.83 %     (0.7 )
Tier 1 leverage ratio (Bank, est)     8.30 %     6.65 %     24.8  
Total risk-based capital ratio (Bank, est)     13.43 %     11.12 %     20.8  
Outstanding common shares     6,500       6,500       -  
Book value per common share   $ 3.99     $ 3.87       3.2  
Tangible book value per common share   $ 3.99     $ 3.86       3.3  
Market value per common share as of September 30   $ 1.95     $ 1.03       89.3  
                         
Loan Quality Data                        
Nonaccruing loans     7,968       8,560       (6.9 )
Loans past due 90 days – accruing     -       -       -  
Net charge-offs YTD     2,220       2,413       (8.0 )
Allowance for loan losses     5,280       6,864       (23.1 )
Allowance for loan losses to total loans     1.93 %     2.54 %        
Nonperforming assets to total assets     7.14 %     6.29 %        
                         
Performance Data for the Year                        
Net income   $ 1,031     $ 917       12.5  
Return on average assets     0.33 %     0.28 %        
Return on average equity     3.77 %     4.27 %        
Net interest margin     3.73 %     3.51 %        
Per common share data:                        
Net income – basic   $ 0.02     $ 0.07          
Net income – diluted   $ 0.02     $ 0.07          
Common dividends   $ -     $ -          
Preferred dividends & accretion   $ 1.88     $ 1.88          
Average shares (000s):                        
Basic common stock     6,500       6,500          
Diluted common stock     6,559       6,500          
Preferred stock (actual)     494       300          

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Quarterly Earnings Summary

 

    (Unaudited)  
    2012     2011     Q3-12 /  
    Third     Second     First     Fourth     Third     Q3-11  
(Amounts in thousands)   Quarter     Quarter     Quarter     Quarter     Quarter     % Chg  
Interest income                                                
Loans, including fees   $ 4,242     $ 4,186     $ 4,144     $ 4,437     $ 4,531       (6.4 )
Investment securities     478       618       467       548       574       (16.6 )
Other earning assets     15       13       15       16       9       61.8  
Total interest income     4,735       4,817       4,626       5,001       5,114       (7.4 )
Interest expense                                                
Deposits     756       768       820       924       1,012       (25.3 )
Short-term borrowings     22       23       32       28       33       (33.9 )
FHLB advances and other borrowing     394       426       462       454       465       (15.3 )
Total interest expense     1,172       1,217       1,314       1,406       1,510       (22.4 )
Net interest income     3,563       3,600       3,312       3,595       3,604       (1.1 )
Provision for loan losses     100       -       -       300       115       (13.0 )
Net interest income after the provision for loan losses     3,463       3,600       3,312       3,295       3,489       (0.8 )
Noninterest income                                                
Customer service fees     198       207       197       212       216       (8.4 )
Other noninterest income     12       19       20       15       15       (21.3 )
Gain on sale of assets     48       26       50       47       92       (47.6 )
Total noninterest income     258       252       267       274       323       (20.2 )
Noninterest expense                                                
Salaries and employee benefits     1,566       1,570       1,591       1,614       1,459       7.3  
Net occupancy and equipment     355       348       336       314       362       (1.8 )
Depository insurance     237       207       203       255       234       1.5  
Foreclosed asset expense (1)     314       481       150       538       306       2.5  
Other operating expense     731       817       794       779       715       2.2  
Total noninterest expense     3,203       3,423       3,074       3,500       3,076       4.1  
Income before income taxes     518       429       505       69       736       (29.6 )
Income tax (benefit) expense     154       118       149       (44 )     212       (27.3 )
Net income   $ 364     $ 311     $ 356     $ 113     $ 524       (30.6 )
                                                 
Preferred stock dividends & accretion on preferred stock discount     325       296       280       267       201       61.8  
                                                 
Net income / (loss) available to common     38       15       76       (154 )     323       (88.1 )
                                                 
Net income / (loss) per common share:                                                
Basic   $ 0.01     $ 0.01     $ 0.01     $ (0.02 )   $ 0.05       (88.2 )
Diluted   $ 0.01     $ 0.01     $ 0.01     $ (0.02 )   $ 0.05       (88.2 )
Average basic shares     6,500       6,500       6,500       6,500       6,500       -  
Average common diluted shares     6,503       6,581       6,586       6,500       6,500       0.0  
Performance Ratios                                                
Return on average equity     3.88 %     3.42 %     4.01 %     1.37 %     6.64 %     (41.5 )
Return on average assets     0.35 %     0.30 %     0.35 %     0.11 %     0.49 %     (29.8 )
Net interest margin     3.70 %     3.87 %     3.59 %     3.72 %     3.69 %     0.3  
Average equity     37,501       36,423       35,587       32,912       31,569       18.8  
Average assets     418,443       412,305       408,711       416,562       423,200       (1.1 )
Average interest-earning assets     389,458       380,631       378,335       390,756       396,872       (1.9 )

 

(1) Includes OREO adjustments to fair value

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Loan Loss Allowance and Asset Quality Review

 

    2012     2011  
    Third     Second     First     Fourth     Third  
(Amounts in thousands)   Quarter     Quarter     Quarter     Quarter     Quarter  
                               
Allowance for loan losses                                        
Balance at beginning of period   $ 6,029     $ 6,024     $ 7,400     $ 6,864     $ 6,814  
Provision for loan losses     100       -       -       300       115  
Net charge-offs     (849 )     5       (1,376 )     236       (65 )
Balance at end of period   $ 5,280     $ 6,029     $ 6,024     $ 7,400     $ 6,864  
                                         
As a % of loans     1.93 %     2.29 %     2.29 %     2.76 %     2.54 %
As a % of nonperforming loans     66.26 %     84.63 %     55.95 %     93.90 %     80.20 %
As a % of nonperforming assets     17.40 %     20.60 %     20.27 %     28.03 %     25.60 %
                                         
Net charge-offs as a % of  loans (a)     1.24 %     -0.01 %     2.10 %     -0.35 %     0.10 %
                                         
Risk element assets                                        
Accruing troubled debt restructured   $ 5,328     $ 2,775     $ 2,418     $ 2,750     $ 2,535  
Loans past due 30-89 days   $ 3,685     $ 2,495     $ 5,040     $ 8,158     $ 2,088  
                                         
Nonaccruing loans   $ 7,968     $ 7,124     $ 10,767     $ 7,882     $ 8,560  
Loans past due 90 days – accruing     -       -       -       -       -  
Total nonperforming loans   $ 7,968     $ 7,124     $ 10,767     $ 7,882     $ 8,560  
Repossessed assets     39       83       -       -       -  
Other real estate owned (b)(c)   $ 22,337     $ 22,061     $ 18,957     $ 18,524     $ 18,255  
Total nonperforming assets   $ 30,344     $ 29,268     $ 29,724     $ 26,406     $ 26,815  
                                         
                                         
Nonperforming loans as a % of loans     2.91 %     2.70 %     4.10 %     2.94 %     3.17 %
Nonperforming assets as a % of loans                                        
and other real estate owned     10.25 %     10.24 %     10.55 %     9.22 %     9.29 %
                                         
Total loans     273,820       263,749       262,788       267,765       270,401  

 

(a) Annualized                                        
(b) Properties sold during 3rd Q 2012   $ 804                          
(c) Properties under contract to sell   $ 3,757                                  

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Net Interest Margin Analysis

Taxable Equivalent Basis

 

    Three months ended  
    September 30  
  2012     2011  
    Average     Income/     Yield/     Average     Income/     Yield/  
(Amounts in thousands)   Balance     Expense     Rate     Balance     Expense     Rate  
Assets                                                
Earning assets:                                                
Loans, net of unearned income   $ 270,109     $ 4,241       6.23 %   $ 269,715     $ 4,531       6.67 %
Investment securities     91,889       478       2.36 %     108,963       574       2.40 %
Other earning assets     27,460       16       0.23 %     18,193       9       0.20 %
Total earning assets     389,458     $ 4,735       4.89 %     396,872     $ 5,114       5.20 %
Allowance for loan losses     (5,892 )                     (6,792 )                
Cash and other assets     34,878                       33,120                  
TOTAL ASSETS   $ 418,443                     $ 423,200                  
                                                 
Liabilities and Shareholders' Equity                                                
                                                 
Interest-bearing liabilities:                                                
Interest-bearing demand deposits   $ 26,357     $ 21       0.32 %   $ 24,197     $ 20       0.33 %
Savings deposits     10,702       10       0.36 %     9,772       13       0.51 %
MMDA's     56,761       114       0.79 %     30,975       79       1.01 %
Time deposits     189,882       612       1.28 %     218,622       900       1.63 %
Federal funds purchased and securities sold under agreements to repurchase     19,471       22       0.45 %     23,250       33       0.57 %
Federal Home Loan Bank and other borrowings     37,336       394       4.19 %     43,078       465       4.29 %
Total interest-bearing liabilities     340,509       1,173       1.37 %     349,894       1,510       1.71 %
Net interest spread           $ 3,562       3.53 %           $ 3,604       3.49 %
Noninterest-bearing demand deposits     40,722                       41,800                  
Accrued expenses and other liabilities     (288 )                     (64 )                
Shareholders' equity     37,501                       31,569                  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 418,443                     $ 423,200                  
Net yield on earning assets                     3.70 %                     3.69 %
                                                 
Taxable equivalent adjustment:                                                
Loans             0                       0          
Investment securities             69                       85          
Total adjustment             69                       85          

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Net Interest Margin Analysis

Taxable Equivalent Basis

 

    Nine months ended  
    September 30  
  2012     2011  
    Average     Income/     Yield/     Average     Income/     Yield/  
(Amounts in thousands)   Balance     Expense     Rate     Balance     Expense     Rate  
Assets                                                
Earning assets:                                                
Loans, net of unearned income   $ 266,187     $ 12,571       6.31 %   $ 275,267     $ 13,692       6.65 %
Investment securities     91,827       1,563       2.58 %     112,850       1,763       2.38 %
Other earning assets     25,535       44       0.23 %     22,496       38       0.22 %
Total earning assets     383,549     $ 14,179       5.02 %     410,613     $ 15,493       5.12 %
Allowance for loan losses     (6,345 )                     (7,707 )                
Cash and other assets     35,968                       32,538                  
TOTAL ASSETS   $ 413,172                     $ 435,444                  
                                                 
Liabilities and Shareholders' Equity                                                
                                                 
Interest-bearing liabilities:                                                
Interest-bearing demand deposits   $ 26,526     $ 65       0.33 %   $ 26,717     $ 65       0.33 %
Savings deposits     10,317       29       0.37 %     9,737       37       0.51 %
MMDA's     47,625       305       0.86 %     27,137       202       1.00 %
Time deposits     191,378       1,946       1.36 %     233,079       2,964       1.70 %
Federal funds purchased and securities sold under agreements to repurchase     22,309       77       0.46 %     23,391       98       0.56 %
Federal Home Loan Bank and other borrowings     39,990       1,281       4.28 %     49,329       1,590       4.31 %
Total interest-bearing liabilities     338,145       3,703       1.46 %     369,390       4,957       1.79 %
Net interest spread           $ 10,475       3.55 %           $ 10,536       3.33 %
Noninterest-bearing demand deposits     38,684                       37,463                  
Accrued expenses and other liabilities     (163 )                     (81 )                
Shareholders' equity     36,507                       28,672                  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 413,172                     $ 435,444                  
Net yield on earning assets                     3.73 %                     3.51 %
                                                 
Taxable equivalent adjustment:                                                
Loans             0                       0          
Investment securities             212                       246          
Total adjustment             212                       246          

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Loan Stratification

 

    2012           2011              
    Third     % of     Third     % of     % Dollar  
(Amounts in thousands)   Quarter     Total     Quarter     Total     Change  
Non-residential real estate                                        
Owner occupied   $ 61,229       22.4     $ 63,405       23.4       (3.4 )
Non-owner occupied     65,501       23.9       62,009       22.9       5.6  
Multi-family real estate     8,626       3.2       10,692       4.0       (19.3 )
1-4 family construction     6,305       2.3       6,346       2.3       (0.6 )
Commercial land and lot development     21,767       7.9       19,483       7.2       11.7  
Total non-residential real estate     163,428       59.7       161,935       59.9       0.9  
Residential real estate                                        
First mortgage - 1-4 family     43,454       15.9       41,334       15.3       5.1  
Second mortgage - 1-4 family     3,138       1.1       4,225       1.6       (25.7 )
Home equity lines     15,832       5.8       12,215       4.5       29.6  
Total residential real estate     62,424       22.8       57,774       21.4       8.0  
Total real estate loans     225,853       82.5       219,709       81.3       2.8  
                                         
Commercial     38,196       13.9       38,955       14.4       (1.9 )
Agricultural & other     7,533       2.8       8,938       3.3       (15.7 )
Consumer     2,239       0.8       2,798       1.0       (20.0 )
Total loans, net of unearned fees   $ 273,820       100.0     $ 270,401       100.0       1.3  

   

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Consolidated Balance Sheets

 

    Unaudited        
    September 30,     December 31,  
    2012     2011  
ASSETS                
                 
Cash and due from banks   $ 1,532,621     $ 1,660,204  
Interest-bearing deposits at other financial institutions     33,298,912       37,222,487  
Total cash and cash equivalents     34,831,533       38,882,691  
                 
Securities available for sale     82,191,300       86,057,437  
Securities held to maturity (fair value approximates $52,820 and $70,484  at September 30, 2012 and December 31, 2011, respectively)     51,385       68,643  
Federal Home Loan Bank stock, at cost     2,322,900       2,322,900  
Loans, net of allowance for loan losses of $5,279,676 at September 30, 2012 and $7,400,049 at December 31, 2011     268,540,559       260,364,569  
Bank premises and equipment, net     5,465,004       5,712,003  
Accrued interest receivable     1,351,479       1,327,458  
Foreclosed assets     22,376,139       18,523,960  
Other assets     8,049,182       9,395,721  
Total Assets   $ 425,179,481     $ 422,655,382  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Deposits:                
Noninterest-bearing demand deposits   $ 43,212,796     $ 43,989,943  
Interest-bearing demand deposits     24,596,321       22,353,384  
Savings deposits and money market accounts     72,958,526       46,857,118  
Time deposits     188,195,355       200,841,499  
Total deposits     328,962,998       314,041,944  
Federal funds purchased and securities sold under agreements to repurchase     19,380,035       29,390,810  
Federal Home Loan Bank advances and other borrowings     37,175,000       43,045,000  
Accrued interest payable     136,081       110,703  
Other liabilities     1,397,583       858,620  
Total Liabilities     387,051,697       387,447,077  
                 
Stockholders' Equity:                
Preferred stock - no par value; 2,000,000 shares authorized; 494,229 shares issued and outstanding in 2012     12,175,652       9,899,544  
and 403,989 shares issued and outstanding in 2011                
Common stock - $l.00 par value; 20,000,000 shares authorized;                
6,709,199 issued in 2012 and 2011;                
6,500,396 outstanding in 2012 and 2011     6,500,396       6,500,396  
Additional paid-in capital     21,371,974       21,316,438  
Retained deficit     (3,347,825 )     (3,627,208 )
Accumulated other comprehensive income     1,427,587       1,119,135  
Total Stockholders' Equity     38,127,784       35,208,305  
Total Liabilities and Stockholders' Equity   $ 425,179,481     $ 422,655,382  

 

The Notes to Consolidated Financial Statements are an integral part of these statements.

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Consolidated Statements of Income

 

    Unaudited     Unaudited  
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2012     2011     2012     2011  
INTEREST INCOME                                
Loans, including fees   $ 4,241,492     $ 4,531,390     $ 12,571,193     $ 13,691,565  
Investment securities     478,172       573,699       1,563,433       1,763,479  
Federal funds sold & other earning assets     15,647       9,269       44,075       37,597  
Total interest income     4,735,311       5,114,358       14,178,701       15,492,641  
                                 
INTEREST EXPENSE                                
Time deposits     612,286       899,554       1,946,341       2,963,779  
Other deposits     144,157       111,985       398,859       304,533  
Federal funds purchased and securities sold under agreements to repurchase     21,889       33,135       77,193       97,850  
Federal Home Loan Bank advances and other borrowings     394,066       465,534       1,281,010       1,590,605  
Total interest expense     1,172,398       1,510,208       3,703,403       4,956,767  
                                 
Net interest income before provision for loan losses     3,562,913       3,604,150       10,475,298       10,535,874  
Provision for loan losses     100,000       115,000       100,000       145,000  
Net interest income after provision for loan losses     3,462,913       3,489,150       10,375,298       10,390,874  
                                 
NONINTEREST INCOME                                
Customer service fees     197,509       216,163       602,107       656,877  
Net gains from sale of securities     -       59,671       -       107,413  
Net gains from sale of loans and other assets     48,199       32,322       124,109       87,866  
Other noninterest income     12,944       15,256       51,844       57,066  
Total noninterest income     258,652       323,412       778,060       909,222  
                                 
NONINTEREST EXPENSE                                
Salaries and employee benefits     1,566,359       1,458,951       4,727,049       4,503,489  
Net occupancy and equipment expense     354,555       361,513       1,038,296       1,118,127  
Depository insurance     236,927       233,587       682,830       797,747  
Foreclosed assets, net     314,088       306,860       945,163       1,384,935  
Other operating expenses     731,090       715,858       2,307,172       2,346,493  
Total noninterest expenses     3,203,019       3,076,769       9,700,510       10,150,791  
                                 
Income before provision for income taxes     518,546       735,793       1,452,848       1,149,305  
Provision for income taxes     154,300       212,125       421,500       232,075  
                                 
Net income     364,246       523,668       1,031,348       917,230  
                                 
Preferred stock dividend requirements     308,893       187,538       854,780       398,626  
Accretion on preferred stock discount     16,370       13,419       46,079       22,419  
                                 
Net income available to common shareholders   $ 38,983     $ 322,711     $ 130,489     $ 496,185  
                                 
EARNINGS PER COMMON SHARE                                
Basic   $ 0.01     $ 0.05     $ 0.02     $ 0.07  
Diluted   $ 0.01     $ 0.05     $ 0.02     $ 0.07  
                                 
DIVIDENDS DECLARED PER COMMON SHARE   $ -     $ -     $ -     $ -  

 

The Notes to Consolidated Financial Statements are an integral part of these statements.

 

 
 

 

Cornerstone Bancshares, Inc. and Subsidiary

Consolidated Statement of Changes in Stockholders' Equity - Unaudited

For the nine months ended September 30, 2012

 

                            Accumulated        
                Additional           Other     Total  
    Preferred     Common     Paid-in     Retained     Comprehensive     Stockholders'  
    Stock     Stock     Capital     Deficit     Income     Equity  
                                     
BALANCE, December 31, 2011   $ 9,899,544     $ 6,500,396     $ 21,316,438     $ (3,627,208 )   $ 1,119,135     $ 35,208,305  
Employee compensation stock option expense     -       -       55,536       -       -       55,536  
Issuance of Series A Convertible Preferred Stock     2,230,029       -       -       -       -       2,230,029  
Preferred stock dividends paid     -       -       -       (705,886 )     -       (705,886 )
Accretion on preferred stock     46,079       -       -       (46,079 )     -       -  
Net income     -       -       -       1,031,348       -       1,031,348  
Other comprehensive income, net of tax     -       -       -       -       308,452       308,452  
                                                 
BALANCE, September 30, 2012   $ 12,175,652     $ 6,500,396     $ 21,371,974     $ (3,347,825 )   $ 1,427,587     $ 38,127,784  

 

The Notes to Consolidated Financial Statements are an integral part of these statements.