UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


GRAPHIC


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)

August 4, 2010

CORNERSTONE BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Tennessee

000-30497

62-1175427

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

835 Georgia Avenue, Chattanooga, Tennessee

 

37343

(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 August 4, 2010, the Registrant issued a press release reporting earnings results for the fiscal quarter ended June 30, 2010.

Item 9.01

Financial Statements and Exhibits.

(c) Exhibits
 
99.1 Press release dated August 4, 2010 reporting earnings results for the fiscal quarter ended June 30, 2010.

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:   August 4, 2010

 

By:

/s/ Nathaniel F. Hughes

Nathaniel F. Hughes,

President and Chief Executive Officer

Exhibit 99.1

Cornerstone Bancshares, Inc. Announces 2 nd Quarter 2010 Financial Results

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--August 4, 2010--Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following:

Cornerstone Bancshares, Inc. (“Cornerstone”) reported positive net income for the second consecutive quarter of 2010, with a net income for 2010 of $362 thousand or $.06 per diluted share. This represents an increase of 110 percent compared to the first six months of 2009’s loss of $(3.5) million or $(0.54) per share. Cornerstone made a profit of $18,000 in net income for the second quarter of 2010, compared to a loss of $603 thousand for the same quarter of 2009. Cornerstone saw a 1.6 percent increase in its net interest margin driven by top-line interest revenue growth and lower interest expense.

Net charge-offs were $1.4 million for the second quarter of 2010, compared to $7.1 million for the second quarter of 2009. Cornerstone’s allowance for loan losses was $7.0 million or 2.2 percent of total loans as of June 30, 2010, compared to $5.9 million or 1.75 percent as of December 31, 2009. Nonperforming assets were $23.3 million or 4.4 percent of total assets at June 30, 2010, compared to $17.9 million or 3.4 percent at December 31, 2009. Since the end of the second quarter, the Bank has recovered with no loss $1.2 million from one of its non-accrual loans and expects to close the sale of a non-accrual loan in the amount of $1.5 million with no loss. The Bank has seen an increased interest in its OREO holdings and currently has $2 million under contract to close during the third quarter.

“Cornerstone continues to follow its strategic plan of reducing its risk profile by shrinking its loan portfolio, improving its loan mix and reducing its commercial real estate (CRE) concentrations,” said Cornerstone’s President and CEO Frank Hughes. “The bank has aggressively moved sub-standard CRE loans through the collection process and has ordered appraisals on these loans to accurately reflect their fair market value. This step places the Bank in a positive position to move forward once the capital campaign is completed.”

Cornerstone, in order to thrive in the new banking paradigm, has prepared a preferred stock offering in the amount of $15 million. The security will feature a 10 percent coupon, will be convertible into common stock and will have a cumulative dividend. The preferred stock will not be converted until five years and a 50 percent increase in common stock value over the preferred stock’s strike price.

“Serving our customers, our community and all of our Cornerstone stakeholders remains our top priority,” said Cornerstone Chairman Miller Welborn. “Our Board and management team are fully committed to this charge. And we’re confident that, as the economy continues to improve, Cornerstone will continue to strengthen and move forward in a more profitable direction for the future.”

In recognition of Cornerstone’s accomplishments, Hughes, who had been serving as interim Chief Executive Officer since November of 2009, was officially appointed Chief Executive Officer in addition to his role as President, at the July Board meeting.

Cornerstone is a single-bank holding company, with $520 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.

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 discussed in Cornerstone’s Form 10-K and other filings with the Securities and Exchange Commission.

Cornerstone Bancshares, Inc.
Second Quarter Financial Highlights
June 30, 2010 and 2009
(Unaudited)
 
(Amounts in thousands, except per share data)   2010   2009   % Change

Balance Sheet Data at June 30

     
Total assets $ 523,426 $ 464,499 12.7
Interest-earning assets 492,537 440,505 11.8
Loans 318,796 360,615 (11.6 )
OREO and other foreclosed assets 10,212 4,964 105.7
Deposits 400,648 337,040 18.9
Interest-bearing liabilities 91,355 92,877 (1.6 )
Shareholders' equity 29,425 32,699 (10.0 )
Loan to deposit ratio 79.57 % 106.99 % (25.6 )
Tier 1 Leverage Ratio (Bank) 5.78 % 7.56 % (23.5 )
Total Risk-Based Capital Ratio (Bank) 10.48 % 10.50 % (0.2 )
Outstanding shares (000s) 6,500 6,500 0.0
Book value per share $ 4.53 $ 5.03 (10.0 )
Tangible book value per share $ 4.13 $ 4.64 (11.0 )
Market value per share as of June 30 $ 2.15 $ 5.75 (62.6 )
 

Loan Quality Data

Nonaccruing loans 13,084 $ 13,397 (2.3 )
Loans past due 90 days – accruing - - -
Net charge-offs YTD 1,418 9,594 (85.2 )
Allowance for loan losses 6,967 7,383 (5.6 )
Allowance for loan losses to total loans 2.19 % 2.05 %
Nonperforming assets to total assets 4.45 % 3.95 %
 

Performance Data for the First Six Months

Net income 362 (3,514 ) 110.3
Return on average assets 0.27 % -3.06 %
Return on average equity 4.98 % -41.52 %
Net interest margin 3.52 % 3.48 %
Per share data:
Net income – basic $ 0.06 $ (0.54 )
Net income – diluted $ 0.06 $ (0.54 )
Dividends $ - $ 0.10
Average shares (000s):
Basic 6,500 6,500
Diluted 6,500 6,500
 
 
Cornerstone Bancshares, Inc.
Loan Loss Allowance and Asset Quality Review
 
  2010   2009
Second   First Fourth   Third   Second
(Amounts in thousands)   Quarter   Quarter   Quarter   Quarter   Quarter
 
Allowance for loan losses
Balance at beginning of period $ 6,760 $ 5,905 $ 7,398 $ 7,383 $ 12,885
Provision for loan losses 1,465 1,015 4,150 3,390 1,634
Net charge-offs   $ (1,258 )   $ (160 )   $ (5,643 )   $ (3,375 )   $ (7,136 )
Balance at end of period   $ 6,967     $ 6,760     $ 5,905     $ 7,398     $ 7,383  
 
As a % of loans 2.19 % 2.07 % 1.75 % 2.12 % 2.05 %
As a % of nonperforming loans 53.25 % 79.83 % 80.24 % 90.90 % 55.11 %
As a % of nonperforming assets 29.91 % 39.34 % 32.98 % 46.44 % 40.21 %
 
Net charge-offs as a % of loans (a) 1.58 % 0.20 % 6.70 % 3.87 % 7.92 %
 
Risk element assets
Nonaccruing loans $ 13,084 $ 8,468 $ 7,360 $ 8,139 $ 13,397
Loans past due 90 days – accruing     -       -       -       -       -  
Total nonperforming loans 13,084 8,468 7,360 8,139 13,397
Repossessed assets 350 473 217 98 181
Other real estate owned     9,862       8,241       10,327       7,695       4,783  
Total nonperforming assets   $ 23,296     $ 17,183     $ 17,904     $ 15,932     $ 18,361  
 
Loans past due 30-89 days $ 6,655 $ 6,588 $ 5,027 $ 19,062 $ 9,636
 
Nonperforming loans as a % of loans 4.10 % 2.60 % 2.19 % 2.33 % 3.71 %

Nonperforming assets as a % of loans and other real estate owned

7.09 % 5.14 % 5.16 % 4.47 % 5.02 %
 
Total Loans 318,796 325,948 336,692 349,050 360,615
 
(a) Annualized
 
 
Cornerstone Bancshares Inc.
Net Interest Margin Analysis
Taxable Equivalent Basis
  Three months ended
June 30
(Amounts in thousands)                            
Assets 2010         2009
Average   Income/   Yield/ Average   Income/   Yield/
Earning assets: Balance   Expense   Rate Balance   Expense   Rate
Loans, net of unearned income $ 321,455 $ 5,494 6.86 % $ 370,524 $ 6,035 6.53 %
Investment securities 151,220 1,216 3.44 % 56,849 386 2.91 %
Other earning assets   33,957     22 0.26 %   11,089     7 0.24 %
Total earning assets 506,631 $ 6,732 5.39 % 438,461 $ 6,428 5.90 %
Allowance for loan losses (6,797 ) (9,326 )
Cash and other assets   29,821     30,509  
TOTAL ASSETS $ 529,655   $ 459,645  
 
Liabilities and Shareholder's Equity
 
Interest bearing liabilities:
Interest bearing demand deposits $ 42,565 $ 36 0.34 % $ 31,702 $ 30 0.38 %
Savings deposits 9,090 12 0.51 % 8,101 10 0.51 %
MMDA's 21,952 52 0.95 % 28,754 70 0.97 %
Time deposits of $100,000 or more 89,648 468 2.10 % 57,502 481 3.36 %
Time deposits of $100,000 or less 210,072 1,151 2.20 % 165,234 1,388 3.37 %

Federal funds purchased and securities sold under agreements to repurchase

23,807 32 0.54 % 22,479 44 0.78 %
Other borrowings   69,833     760 4.36 %   72,454     768 4.25 %
Total interest bearing liabilities 466,968   2,511 2.16 % 386,226   2,791 2.90 %
Net interest spread $ 4,221 3.24 % $ 3,637 3.01 %
Noninterest bearing demand deposits 39,061 42,752
Accrued expenses and other liabilities (5,480 ) (3,190 )
Shareholders' equity   29,105     33,857  

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 529,655   $ 459,645  
Net yield on earning assets 3.41 % 3.35 %
 
Taxable equivalent adjustment:
Loans 0 0
Investment securities   81   26
Total adjustment   81   26
 
 

Cornerstone Bancshares, Inc.

Net Interest Margin Analysis
Taxable Equivalent Basis
  Six months ended
June 30
(Amounts in thousands)                            
Assets 2010         2009
Average   Income/   Yield/ Average   Income/   Yield/
Earning assets: Balance   Expense   Rate Balance   Expense   Rate
Loans, net of unearned income $ 325,715 $ 11,442 7.08 % $ 377,095 $ 12,477 6.67 %
Investment securities 143,072 2,346 3.52 % 54,976 800 3.12 %
Other earning assets   39,927     45 0.23 %   12,517     15 0.24 %
Total earning assets 508,714 $ 13,833 5.55 % 444,588 $ 13,292 6.05 %
Allowance for loan losses (6,397 ) (9,232 )
Cash and other assets   29,653     29,469  
TOTAL ASSETS $ 531,970   $ 464,825  
 
Liabilities and Shareholder's Equity
 
Interest bearing liabilities:
Interest bearing demand deposits $ 35,277 $ 66 0.38 % $ 30,270 $ 56 0.37 %
Savings deposits 8,910 23 0.51 % 7,960 20 0.51 %
MMDA's 22,830 109 0.96 % 30,893 149 0.97 %
Time deposits of $100,000 or more 84,708 895 2.13 % 58,559 1,010 3.48 %
Time deposits of $100,000 or less 218,649 2,408 2.22 % 165,425 2,854 3.48 %

Federal funds purchased and securities sold under agreements to repurchase

23,723 68 0.57 % 23,509 98 0.84 %
Other borrowings   71,063     1,539 4.37 %   71,946     1,474 4.13 %
Total interest bearing liabilities 465,160   5,107 2.21 % 388,562   5,661 2.94 %
Net interest spread $ 8,726 3.33 % $ 7,631 3.11 %
Noninterest bearing demand deposits 43,610 42,907
Accrued expenses and other liabilities (5,688 ) (2,028 )
Shareholders' equity   28,888     35,384  

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 531,970   $ 464,825  
Net yield on earning assets 3.52 % 3.48 %
 
Taxable equivalent adjustment:
Loans 0 0
Investment securities   155   50
Total adjustment   155   50
 
 
Cornerstone Bancshares Inc.
Quarterly Earnings Summary
   
(Unaudited)
2010   2009   Q2-10 /
Second   First Fourth   Third   Second Q2-09
  Quarter   Quarter   Quarter   Quarter   Quarter   % Chg
Interest Income
Loans, including fees $ 5,494 $ 5,948 $ 5,907 $ 6,018 $ 6,035 (9.0 )
Investment securities 1,216 1,129 683 358 386 215.1
Other earning assets   22       24     20       30       7   210.5
Total interest income   6,732       7,101       6,610       6,406       6,428   4.7
Interest expense
Deposits 1,719 1,782 1,948 1,971 1,979 (13.1 )
Short-term borrowings 32 35 31 37 44 (27.0 )
FHLB advances and other borrowings   760       779       783       758       768   (1.1 )
Total interest expense   2,511       2,596       2,762       2,766       2,791   (10.0 )
Net interest income 4,221 4,505 3,848 3,640 3,637 16.1
Provision for loan losses   1,465       1,015       4,150       3,390       1,634   (10.3 )

Net interest income after the provision for loan losses

  2,756       3,490       (302 )     250       2,003   37.6
Noninterest income
Customer Service Fees 342 342 370 417 435 (21.3 )
Other non-interest income 29 31 28 29 148 (80.4 )
Gain / (Loss) on sale of assets     439       (53 )     (1,035 )     (262 )     147   198.6
Total noninterest income   810       320       (636 )     184  

 

  730   11.0
Noninterest expense
Salaries and employee benefits 1,521 1,633 1,642 1,623 1,848 (17.7 )
Net Occupancy and equipment 369 355 371 383 388 (5.0 )
Depository Insurance 237 247 606 159 280 (100.0 )
Other operating expense   1,476       1,081       1,313       1,114       1,257   17.4
Total noninterest expense   3,603       3,317       3,931       3,279  

 

  3,773   (4.5 )
Income (loss) before income taxes (37 ) 493 (4,869 ) (2,844 ) (1,041 ) NM
Income tax (benefit) expense   (55 )     150       (1,904 )     (1,145 )     (437 ) NM
Net income (loss) $ 18     $ 344     $ (2,965 )   $ (1,700 )   $ (603 ) NM
Net income (loss) per share:
Basic $ 0.00     $ 0.05     $ (0.46 )   $ (0.26 )   $ (0.09 ) NM
Diluted $ 0.00     $ 0.05     $ (0.46 )   $ (0.26 )   $ (0.09 ) NM
Average basic shares (000s) (1) 6,500 6,500 6,500 6,500 6,500 NM
Average diluted shares (000s) (1) 6,500 6,500 6,500 6,500 6,500 NM
Performance Ratios
Return on average equity 0.25 % 4.80 % -38.13 % -20.70 % -7.13 % NM
Return on average assets 0.01 % 0.26 % -2.28 % -1.39 % -0.52 % NM
Net interest margin 3.41 % 3.64 % 3.24 % 3.18 % 3.35 % NM
Average equity 29,105 28,668 31,104 32,838 33,857 (14.0 )
Average assets 529,655 534,312 519,520 488,870 459,645 15.2
Average interest-earning assets 506,631 510,386 499,047 454,058 438,461 15.5
 
NM=Not Material

(1) The 2009 average number of common shares outstanding have been retroactively adjusted to reflect two stock dividends that occurred during 2009.

 
 
Cornerstone Bancshares, Inc.
Loan Stratification
         
2010 2009

 

Second % of Second % of % Dollar

(Amounts in thousands)

  Quarter   Total   Quarter   Total   Change
Non-residential real estate
Owner occupied $ 73,124 22.9 $ 84,902 23.5 (13.9 )
Non-owner occupied 71,767 22.5 70,246 19.5 2.2
Multi-family real estate 12,957 4.1 13,479 3.7 (3.9 )
1-4 family Construction 5,671 1.8 10,894 3.0 (47.9 )
Commercial land and lot development     27,604   8.7     50,026   13.9   (44.8 )
Total non-residential real estate     191,123   60.0     229,547   63.7   (16.7 )
Residential real estate
First Mortgage – 1-4 family 41,511 13.0 42,015 11.7 (1.2 )
Second Mortgage - 1-4 family 5,165 1.6 3,570 1.0 44.7
Home equity lines     11,012   3.5     13,077   3.6   (15.8 )
Total residential real estate     57,688   18.1     58,662   16.3   (1.7 )
Total real estate loans 248,811 78.0 288,209 79.9 (13.7 )
 
Commercial 57,790 18.1 65,328 18.1 (11.5 )
Agricultural & other 8,522 2.7 2,387 0.7 257.0
Consumer     3,673   1.2     4,691   1.3   (21.7 )
Total loans, net of unearned fees   $ 318,796   100.0   $ 360,615   100.0   (11.6 )
 
 
Cornerstone Bancshares, Inc.
Consolidated Balance Sheets
             
 
Unaudited
June 30, December 31,
ASSETS 2010 2009
 
Cash and due from banks $ 43,690,546 $ 38,202,205
 
Securities available for sale 129,610,261 124,415,318
Securities held to maturity 114,705 135,246
Federal Home Loan Bank stock, at cost 2,322,900 2,229,200

Loans, net of allowance for loan losses of $6,967,292 at June 30, 2010 and $5,905,054 at December 31, 2009

311,828,256 330,787,382
Bank premises and equipment, net 7,659,025 8,098,059
Accrued interest receivable 1,662,436 1,520,699
Goodwill and amortizable intangibles 2,587,316 2,579,211
Foreclosed assets 10,212,411 10,327,297
Other assets   13,738,466   14,109,769  
Total Assets $ 523,426,322 $ 532,404,386  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Deposits:
Noninterest-bearing demand deposits $ 47,663,569 $ 41,971,956
Interest-bearing demand deposits 36,802,797 26,533,329
Savings deposits and money market accounts 31,893,781 31,029,587
Time deposits of $100,000 or more 109,225,781 91,064,094
Time deposits of less than $100,000   175,062,529   214,143,147  
Total deposits 400,648,457 404,742,113

Federal funds purchased and securities sold under agreements to repurchase

24,105,165 26,321,885
Federal Home Loan Bank advances and other borrowing 67,250,000 72,350,000
Accrued interest payable 374,582 351,360
Other liabilities   1,623,449   801,549  
Total Liabilities   494,001,653   504,566,907  
 
Stockholders' Equity

Preferred stock - no par value; 2,000,000 shares authorized; no shares issued

- -

Common stock - $l.00 par value; 10,000,000 shares authorized; 6,709,199 issued in 2010 and 2009; 6,500,396 outstanding in 2010 and 2009

6,500,396 6,500,396
Additional paid-in capital 21,199,992 21,162,686
Retained earnings 786,787 424,854
Accumulated other comprehensive income   937,494   (250,457 )
Total Stockholders' Equity   29,424,669   27,837,479  
Total Liabilities and Stockholders' Equity $ 523,426,322 $ 532,404,386  
 
 
Cornerstone Bancshares, Inc.
Consolidated Statements of Income
                 
Unaudited Unaudited

Three months ended

Six months ended
June 30 June 30
2010 2009 2010 2009
INTEREST INCOME
Loans, including fees $ 5,493,946 $ 6,035,104 $ 11,442,192 $ 12,477,209
Investment securities 1,216,300 386,065 2,345,579 800,126
Federal funds sold & other earning assets   21,732     6,697     45,393   14,646  
Total interest income   6,731,978     6,427,866     13,833,164   13,291,981  
 
INTEREST EXPENSE
Time deposits $100,000 or more 588,314 480,917 1,134,340 1,010,094
Other deposits 1,130,535 1,498,072 2,366,259 3,079,687

Federal funds purchased and securities sold under agreements to repurchase

32,142 43,880 67,557 97,929
FHLB advances and other borrowing   759,803     768,199     1,539,000   1,474,035  
Total interest expense   2,510,794     2,791,068     5,107,156   5,661,745  
 
Net interest income before provision for loan losses 4,221,184 3,636,798 8,726,008 7,630,236
Provision for loan losses   1,465,000     1,633,898     2,480,000   7,358,898  
Net interest income after the provision for loan losses   2,756,184     2,002,900     6,246,008   271,338  
 
NONINTEREST INCOME
Customer service fee 342,126 434,595 684,040 842,738
Other noninterest income 29,273 149,083 60,195 184,915
Net gains / (losses) from sale of loans and other assets   438,886     146,613     386,195   (34,248 )
Total noninterest income   810,285     730,291     1,130,430   993,405  
 
NONINTEREST EXPENSE
Salaries and employee benefits 1,521,216 1,848,452 3,154,560 3,690,127
Net occupancy and equipment expense 368,506 387,897 723,689 796,836
Depository insurance 237,499 279,551

*

484,836 341,277 *
Other operating expense   1,476,201     1,257,459     2,556,818   2,237,861  
Total noninterest expense   3,603,422     3,773,359     6,919,903   7,066,101  
 
Income / (loss) before provision for income taxes (36,953 ) (1,040,168 ) 456,535 (5,801,358 )
Provision / (benefit) for income taxes   (55,099 )   (437,369 )   94,602   (2,287,056 )
 
NET INCOME / (LOSS) $ 18,146   $ (602,799 ) $ 361,933 $ (3,514,302 )
 
EARNINGS / (LOSS) PER COMMON SHARE

Basic net income / (loss) per common share

$ - $ (0.09 ) $ 0.06 $ (0.54 )
Diluted net income / (loss) per common share $ - $ (0.09 ) $ 0.06 $ (0.54 )
 
DIVIDENDS DECLARED PER COMMON SHARE $ - $ 0.03 $ - $ 0.10
 
* Includes Special one time Assessment on June 30, 2009 in the amount of $213,151
 
 
Cornerstone Bancshares, Inc.
Consolidated Statement of Changes in Stockholders' Equity - Unaudited
For the three months ended June 30, 2010
           
Additional Other Total
Comprehensive Common Paid-in Retained Comprehensive Stockholders'
Income Stock Capital Earnings Income Equity
 
BALANCE, December 31, 2009 $ 6,500,396 $ 21,162,686 $ 424,854 $ (250,457 ) $ 27,837,479

Employee compensation stock option expense

- 37,306 - - 37,306
Comprehensive income:
Net income $ 361,933 - - 361,933 - 361,933
Other comprehensive income, net of tax:

Unrealized holding gains on securities available for sale, net of reclassification adjustment

  1,187,951   -   -   -   1,187,951     1,187,951
Total comprehensive income $ 1,549,884
BALANCE, June 30, 2010 $ 6,500,396 $ 21,199,992 $ 786,787 $ 937,494   $ 29,424,669

CONTACT:
Cornerstone Bancshares, Inc.
Frank Hughes, President and CEO, 423-385-3009