CHATTANOOGA, Tenn.,
April 28, 2015 /PRNewswire/
-- Cornerstone Bancshares, Inc. ("Cornerstone"; OTCBB: CSBQ;
CSBQP), parent company of Cornerstone Community Bank ("Bank"),
today reported net income of approximately $480,000 for the first quarter of 2015, compared
with approximately $412,000 for the
same quarter last year. This marks the seventeenth
consecutive quarter of positive earnings for Cornerstone.
First Quarter Financial Highlights for March 31, 2015, Compared to March 31, 2014:
- 16.5% increase in net income
- 1.1% increase in loans
- 15.8% increase in total non-interest income
- 3.0% decrease in total non-interest expenses
- 32.1% decrease in net foreclosed assets
Cornerstone saw material improvement of its net income
quarter-over-quarter, due to a reduction in its foreclosed asset
expense and a decrease in interest expense of the Bank's Federal
Home Loan Bank borrowings.
"The Bank has seen continued improvement in its asset quality as
the Bank ratios return to more historic levels, which will allow
the Bank to see additional reduced foreclosed asset expenses over
the next two years," said Cornerstone Community Bank President
Barry Watson.
"This marks another strong quarter for Cornerstone's earnings
and strength in our stock for shareholders," said Cornerstone's
Chairman Miller Welborn. "This
positive momentum should position us well for the upcoming merger
with SmartFinancial and the tremendous growth opportunities
ahead."
Cornerstone is a single-bank holding company, with approximately
$426 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.
Important Information for Shareholders
This communication shall not constitute an offer to sell,
the solicitation of an offer to sell, or the solicitation of an
offer to buy any securities or the solicitation of any vote or
approval, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. In connection with the
proposed Merger, Cornerstone will file a registration statement on
Form S-4 with the SEC, which will contain the joint proxy
statement/prospectus of SmartFinancial and Cornerstone.
Shareholders of Cornerstone and SmartFinancial are encouraged to
read the registration statement, including the joint proxy
statement/prospectus that will be part of the registration
statement, because it will contain important information about the
Merger, Cornerstone and SmartFinancial. After the registration
statement is filed with the SEC, the joint proxy
statement/prospectus and other relevant documents will be mailed to
all Cornerstone and SmartFinancial shareholders and will be
available for free on the SEC's website (www.sec.gov). The joint
proxy statement/prospectus will also be made available for free by
contacting the President and CEO of SmartFinancial at (865)
868-0613 or the President and CEO of Cornerstone at 423-385-3009.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
Cornerstone, SmartFinancial and their respective directors,
executive officers, and certain other members of management and
employees of Cornerstone and SmartFinancial may be deemed to be
participants in the solicitation of proxies in connection with the
proposed Merger. Information concerning the interests of the
persons who may be considered "participants" in the solicitation
will be set forth in the joint proxy statement/prospectus relating
to the Merger and the other relevant documents filed with the SEC
when they become available. Information about the directors and
executive officers of Cornerstone is also set forth in
Cornerstone's Annual Report on Form 10-K for the year ended
December 31, 2014, filed with the
SEC.
Forward-Looking Statements
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, SmartFinancial and their respective management
regarding the companies' strategic directions, prospects, future
results and benefits of the merger, are subject to numerous 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 and SmartFinancial operate, governmental
regulations, the ability to obtain regulatory and shareholder
approval, the possibility that conditions to completion of the
merger will not be satisfied, the ability to complete the merger in
the expected timeframe, the companies' competitive environment,
cyclical and seasonal fluctuations in their operating results, and
other risks.
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
|
First Quarter
Financial Highlights
|
|
|
|
|
|
|
March 31, 2015 and
2014
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands, except per common share data)
|
|
2015
|
|
2014
|
|
%
Change
|
Balance Sheet Data
at March 31
|
|
|
|
|
|
|
Total
assets
|
|
$ 426,010
|
|
$ 429,044
|
|
(0.7)
|
Interest-earning
assets
|
|
406,751
|
|
403,553
|
|
0.8
|
Loans
|
|
296,033
|
|
292,952
|
|
1.1
|
Foreclosed assets,
net
|
|
8,523
|
|
12,559
|
|
(32.1)
|
Deposits
|
|
333,198
|
|
341,725
|
|
(2.5)
|
Other
interest-bearing liabilities
|
|
50,510
|
|
45,663
|
|
10.6
|
Shareholders'
equity
|
|
40,926
|
|
40,696
|
|
0.6
|
Loan to deposit
ratio
|
|
88.85%
|
|
85.73%
|
|
3.6
|
Tier 1 leverage ratio
(Bank, est)
|
|
9.62%
|
|
8.87%
|
|
8.5
|
Total risk-based
capital ratio (Bank, est)
|
|
13.48%
|
|
13.11%
|
|
2.8
|
Outstanding common
shares
|
|
6,638
|
|
6,627
|
|
0.2
|
Book value per common
share
|
|
$ 3.91
|
|
$
3.89
|
|
0.5
|
Tangible book value
per common share
|
|
$ 3.91
|
|
$
3.89
|
|
0.5
|
Market value per
common share as of March 31
|
|
$ 3.32
|
|
$
2.46
|
|
35.0
|
|
|
|
|
|
|
|
Loan Quality
Data
|
|
|
|
|
|
|
Nonaccruing
loans
|
|
1,450
|
|
4,779
|
|
(69.7)
|
Loans past due 90
days – accruing
|
|
-
|
|
-
|
|
-
|
Net charge-offs
YTD
|
|
189
|
|
357
|
|
(47.0)
|
Allowance for loan
losses
|
|
3,656
|
|
3,011
|
|
21.4
|
Allowance for loan
losses to total loans
|
|
1.23%
|
|
1.03%
|
|
|
Nonperforming assets
to total assets
|
|
2.34%
|
|
4.04%
|
|
|
|
|
|
|
|
|
|
Performance Data
for the Year
|
|
|
|
|
|
|
Net
income
|
|
$
480
|
|
$
412
|
|
16.5
|
Return on average
assets
|
|
0.46%
|
|
0.39%
|
|
|
Return on average
equity
|
|
4.71%
|
|
4.08%
|
|
|
Net interest
margin
|
|
3.98%
|
|
3.90%
|
|
|
Per common share
data:
|
|
|
|
|
|
|
Net income –
basic
|
|
$ 0.01
|
|
$
-
|
|
|
Net income –
diluted
|
|
$ 0.01
|
|
$
-
|
|
|
Common
dividends
|
|
$
-
|
|
$
-
|
|
|
Average shares
(000s):
|
|
|
|
|
|
|
Basic common
stock
|
|
6,629
|
|
6,575
|
|
|
Diluted common
stock
|
|
7,011
|
|
6,714
|
|
|
Preferred stock
(actual)
|
|
600
|
|
600
|
|
|
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
|
|
|
Adjusted Income
Pre-tax & Pre-provision (PTPP)
|
|
|
|
|
|
|
|
Net of Security Gains
& Foreclosed Assets Expense
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
2015
|
|
2014
|
Q1-15 /
|
|
|
First
|
|
Fourth
|
Third
|
Second
|
First
|
Q1-14
|
(Amounts in
thousands)
|
|
Quarter
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
% Chg
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 3,957
|
|
$ 3,870
|
$ 3,810
|
$ 3,856
|
$ 3,811
|
3.8
|
Total noninterest
income
|
|
373
|
|
459
|
504
|
535
|
322
|
15.8
|
Sub-total
|
|
4,330
|
|
4,329
|
4,314
|
4,391
|
4,133
|
4.8
|
Total noninterest
expense
|
|
3,202
|
|
3,664
|
3,659
|
3,375
|
3,301
|
(3.0)
|
Pre-tax,
pre-provision income
|
|
1,128
|
|
665
|
655
|
1,016
|
832
|
35.6
|
Net gains from sale
of securities
|
|
-
|
|
(129)
|
(169)
|
(300)
|
(102)
|
N/A
|
Net gains from sale
of foreclosed assets
|
|
(73)
|
|
-
|
-
|
-
|
-
|
N/A
|
Foreclosed assets
expense, net
|
|
58
|
|
441
|
688
|
363
|
349
|
(83.4)
|
Adjusted
PTPP
|
|
1,113
|
|
977
|
1,174
|
1,079
|
1,079
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
2015
|
|
2014
|
|
|
|
First
|
|
Fourth
|
Third
|
Second
|
First
|
|
(Amounts in
thousands)
|
|
Quarter
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Pre-tax,
pre-provision income
|
|
$ 1,128
|
|
$
665
|
$ 655
|
$ 1,016
|
$ 832
|
|
Income tax
expense
|
|
(298)
|
|
(253)
|
(250)
|
(257)
|
(255)
|
|
Provision for loan
losses
|
|
(350)
|
|
-
|
-
|
(350)
|
(165)
|
|
Net income
|
|
480
|
|
412
|
405
|
409
|
412
|
|
|
|
|
|
|
|
|
|
|
Adjusted
PTPP
|
|
1,113
|
|
977
|
1,174
|
1,079
|
1,079
|
|
Net gains from sale
of securities
|
|
-
|
|
129
|
169
|
300
|
102
|
|
Net gains from sale
of foreclosed assets
|
|
73
|
|
-
|
-
|
-
|
-
|
|
Foreclosed assets
expense, net
|
|
(58)
|
|
(441)
|
(688)
|
(363)
|
(349)
|
|
Provision for loan
losses
|
|
(350)
|
|
-
|
-
|
(350)
|
(165)
|
|
Income tax
expense
|
|
(298)
|
|
(253)
|
(250)
|
(257)
|
(255)
|
|
Net income
|
|
480
|
|
412
|
405
|
409
|
412
|
|
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
|
Quarterly Earnings
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
2015
|
|
2014
|
Q1-15 /
|
|
|
First
|
|
Fourth
|
Third
|
Second
|
First
|
Q1-14
|
(Amounts in
thousands)
|
|
Quarter
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
% Chg
|
Interest
income
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
4,198
|
|
$ 4,202
|
$ 4,168
|
$ 4,225
|
$ 4,095
|
2.5
|
Securities and
interest-bearing deposits at
other financial institutions
|
|
347
|
|
312
|
327
|
347
|
431
|
(19.5)
|
Federal funds sold
and other earning assets
|
|
5
|
|
6
|
7
|
10
|
7
|
(28.6)
|
Total interest
income
|
|
4,550
|
|
4,520
|
4,502
|
4,582
|
4,533
|
0.4
|
Interest
expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
418
|
|
415
|
442
|
442
|
442
|
(5.4)
|
Short-term
borrowings
|
|
22
|
|
26
|
19
|
21
|
19
|
15.8
|
FHLB advances and
other borrowing
|
|
153
|
|
209
|
231
|
263
|
261
|
(41.4)
|
Total interest
expense
|
|
593
|
|
650
|
692
|
726
|
722
|
(17.9)
|
Net interest
income
|
|
3,957
|
|
3,870
|
3,810
|
3,856
|
3,811
|
3.8
|
Provision for
losses
|
|
350
|
|
-
|
-
|
350
|
165
|
112.1
|
Net interest income
after the
|
|
|
|
|
|
|
|
|
provision
for loan losses
|
|
3,607
|
|
3,870
|
3,810
|
3,506
|
3,646
|
(1.1)
|
Noninterest
income
|
|
|
|
|
|
|
|
|
Customer service
fees
|
|
219
|
|
237
|
215
|
210
|
189
|
15.9
|
Other noninterest
income
|
|
20
|
|
14
|
13
|
18
|
12
|
66.7
|
Gain on sale of
assets
|
|
134
|
|
208
|
276
|
307
|
121
|
10.7
|
Total noninterest
income
|
|
373
|
|
459
|
504
|
535
|
322
|
15.8
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
1,737
|
|
1,803
|
1,702
|
1,723
|
1,827
|
(4.9)
|
Net occupancy and
equipment
|
|
287
|
|
282
|
315
|
324
|
309
|
(7.1)
|
Depository
insurance
|
|
155
|
|
158
|
163
|
164
|
155
|
-
|
Foreclosed asset
expense (1)
|
|
58
|
|
441
|
688
|
363
|
349
|
(83.4)
|
Other operating
expense
|
|
966
|
|
980
|
791
|
801
|
661
|
46.1
|
Total noninterest
expense
|
|
3,203
|
|
3,664
|
3,659
|
3,375
|
3,301
|
(3.0)
|
Income before income
taxes
|
|
777
|
|
665
|
655
|
666
|
667
|
16.5
|
Income tax
expense
|
|
298
|
|
253
|
250
|
257
|
255
|
17.0
|
Net
income
|
|
$
479
|
|
$
412
|
$
405
|
$ 409
|
$ 412
|
16.2
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends & accretion on preferred stock
discount
|
|
393
|
|
393
|
393
|
393
|
393
|
-
|
|
|
|
|
|
|
|
|
|
Net income
available to common
|
|
86
|
|
19
|
12
|
16
|
19
|
354.7
|
|
|
|
|
|
|
|
|
|
Net income per
common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.01
|
|
$ 0.01
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
220.7
|
Diluted
|
|
$
0.01
|
|
$ 0.01
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
227.5
|
Average basic
shares
|
|
6,629
|
|
6,627
|
6,627
|
6,627
|
6,575
|
0.8
|
Average common
diluted shares
|
|
7,011
|
|
6,952
|
6,844
|
6,807
|
6,714
|
4.4
|
Performance
Ratios
|
|
|
|
|
|
|
|
|
Return on average
equity
|
|
4.70%
|
|
4.05%
|
4.01%
|
4.02%
|
4.08%
|
15.4
|
Return on average
assets
|
|
0.46%
|
|
0.40%
|
0.39%
|
0.38%
|
0.39%
|
19.5
|
Net interest
margin
|
|
3.98%
|
|
3.97%
|
3.86%
|
3.89%
|
3.90%
|
2.0
|
Average
equity
|
|
40,742
|
|
40,649
|
40,481
|
40,710
|
40,447
|
0.7
|
Average
assets
|
|
414,763
|
|
409,170
|
416,247
|
426,951
|
426,282
|
(2.7)
|
Average
interest-earning assets
|
|
396,389
|
|
388,746
|
394,156
|
400,760
|
400,174
|
(0.9)
|
|
|
|
|
|
|
|
|
|
(1) Includes OREO
adjustments to fair value
|
|
|
|
|
|
|
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
Loan Loss Allowance
and Asset Quality Review
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
First
|
|
Fourth
|
Third
|
Second
|
First
|
(Amounts in
thousands)
|
Quarter
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
|
|
|
|
|
Balance at beginning
of period
|
$ 3,495
|
|
$ 3,474
|
$ 3,330
|
$ 3,011
|
$ 3,203
|
Provision for loan
losses
|
350
|
|
-
|
-
|
350
|
165
|
Net
charge-offs
|
(189)
|
|
21
|
145
|
(32)
|
(357)
|
Balance at end of
period
|
$ 3,656
|
|
$ 3,495
|
$ 3,474
|
$ 3,330
|
$ 3,011
|
|
|
|
|
|
|
|
As a % of
loans
|
1.24%
|
|
1.18%
|
1.16%
|
1.14%
|
1.03%
|
As a % of
nonperforming loans
|
252.16%
|
|
122.00%
|
96.51%
|
116.72%
|
63.00%
|
As a % of
nonperforming assets
|
36.66%
|
|
32.17%
|
23.81%
|
21.01%
|
17.37%
|
|
|
|
|
|
|
|
Net charge-offs as a
% of loans (a)
|
0.26%
|
|
-0.03%
|
-0.19%
|
0.04%
|
0.49%
|
|
|
|
|
|
|
|
Risk element
assets
|
|
|
|
|
|
|
Accruing troubled
debt restructured
|
$ 2,833
|
|
$ 3,903
|
$ 3,698
|
$ 3,787
|
$ 3,337
|
Loans past due 30-89
days
|
$
107
|
|
$ 2,162
|
$ 2,846
|
$ 1,365
|
$ 2,193
|
|
|
|
|
|
|
|
Nonaccruing
loans
|
$ 1,450
|
|
$ 2,865
|
$ 3,600
|
$ 2,853
|
$ 4,779
|
Loans past due 90
days – accruing
|
-
|
|
-
|
-
|
-
|
-
|
Total nonperforming
loans
|
$ 1,450
|
|
$ 2,865
|
$ 3,600
|
$ 2,853
|
$ 4,779
|
Foreclosed assets (b)
(c)
|
$ 8,523
|
|
$ 8,000
|
$ 10,994
|
$ 12,996
|
$ 12,559
|
Total nonperforming
assets
|
$ 9,973
|
|
$ 10,865
|
$ 14,594
|
$ 15,849
|
$ 17,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a % of loans
|
0.49%
|
|
0.97%
|
1.21%
|
0.98%
|
1.63%
|
Nonperforming assets
as a % of loans
|
|
|
|
|
|
|
and
foreclosed assets
|
3.27%
|
|
3.58%
|
4.72%
|
5.19%
|
5.68%
|
|
|
|
|
|
|
|
Total
loans
|
296,033
|
|
295,364
|
298,390
|
292,369
|
292,952
|
|
|
|
|
|
|
|
(a)
Annualized
|
(b) Properties sold
during 1st Q 2015
|
$
595
|
|
|
|
|
|
(c) Properties under
contract to sell
|
$ 1,173
|
|
|
|
|
|
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
Taxable Equivalent
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
2015
|
|
|
|
|
|
2014
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
Earning
assets:
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
Loans, net of
unearned income
|
$ 295,127
|
|
$ 4,198
|
|
5.64%
|
|
$ 291,830
|
|
$ 4,095
|
|
5.69%
|
Investment
securities
|
88,675
|
|
347
|
|
1.63%
|
|
95,968
|
|
431
|
|
1.99%
|
Other earning
assets
|
12,587
|
|
5
|
|
0.16%
|
|
12,377
|
|
7
|
|
0.23%
|
Total earning
assets
|
396,389
|
|
$ 4,550
|
|
4.57%
|
|
400,175
|
|
$ 4,533
|
|
4.63%
|
Allowance for loan
losses
|
(3,400)
|
|
|
|
|
|
(3,106)
|
|
|
|
|
Cash and other
assets
|
21,774
|
|
|
|
|
|
29,213
|
|
|
|
|
TOTAL
ASSETS
|
$ 414,763
|
|
|
|
|
|
$ 426,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
32,306
|
|
$
10
|
|
0.12%
|
|
$ 27,972
|
|
$
10
|
|
0.14%
|
Savings
deposits
|
13,731
|
|
3
|
|
0.09%
|
|
15,379
|
|
4
|
|
0.10%
|
MMDA's
|
63,420
|
|
57
|
|
0.36%
|
|
65,299
|
|
54
|
|
0.33%
|
Time
deposits
|
153,987
|
|
348
|
|
0.90%
|
|
160,384
|
|
375
|
|
0.95%
|
Federal funds
purchased and securities
|
|
|
|
|
|
|
|
|
|
|
|
sold under
agreements to repurchase
|
29,105
|
|
22
|
|
0.30%
|
|
21,562
|
|
19
|
|
0.35%
|
Federal Home Loan
Bank and other borrowings
|
31,822
|
|
153
|
|
1.91%
|
|
31,661
|
|
261
|
|
3.35%
|
Total
interest-bearing liabilities
|
324,371
|
|
593
|
|
0.73%
|
|
322,257
|
|
723
|
|
0.91%
|
Net interest
spread
|
|
|
$ 3,957
|
|
3.84%
|
|
|
|
$ 3,811
|
|
3.72%
|
Noninterest-bearing
demand deposits
|
48,439
|
|
|
|
|
|
63,077
|
|
|
|
|
Accrued expenses and
other liabilities
|
1,211
|
|
|
|
|
|
501
|
|
|
|
|
Shareholders'
equity
|
$
40,742
|
|
|
|
|
|
40,447
|
|
|
|
|
TOTAL LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
$ 414,763
|
|
|
|
|
|
$ 426,282
|
|
|
|
|
Net yield on earning
assets
|
|
|
|
|
3.98%
|
|
|
|
|
|
3.90%
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
0
|
|
|
|
|
|
0
|
|
|
Investment
securities
|
|
|
16
|
|
|
|
|
|
39
|
|
|
Total adjustment
|
|
|
16
|
|
|
|
|
|
39
|
|
|
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
Loan
Composition
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
(Amounts in
thousands)
|
First
|
% of
|
First
|
% of
|
% Dollar
|
Quarter
|
Total
|
Quarter
|
Total
|
Change
|
Non-residential real
estate
|
|
|
|
|
|
Owner occupied
|
$ 70,879
|
23.9
|
$ 68,653
|
23.4
|
3.2
|
Non-owner occupied
|
73,891
|
25.0
|
70,089
|
23.9
|
5.4
|
Multi-family real estate
|
8,799
|
3.0
|
7,809
|
2.7
|
12.7
|
1-4 family
construction
|
8,690
|
2.9
|
10,117
|
3.5
|
(14.1)
|
Commercial land and lot
development
|
21,864
|
7.4
|
17,187
|
5.9
|
27.2
|
Total non-residential
real estate
|
184,123
|
62.2
|
173,855
|
59.3
|
5.9
|
Residential real
estate
|
|
|
|
|
|
First mortgage - 1-4
family
|
45,928
|
15.5
|
49,535
|
16.9
|
(7.3)
|
Second mortgage - 1-4 family
|
1,425
|
0.5
|
1,790
|
0.6
|
(20.4)
|
Home equity lines
|
20,103
|
6.8
|
18,633
|
6.4
|
7.9
|
Total residential
real estate
|
67,456
|
22.8
|
69,958
|
23.9
|
(3.6)
|
Total real estate
loans
|
251,579
|
85.0
|
243,813
|
83.2
|
3.2
|
|
|
|
|
|
|
Commercial
|
35,249
|
11.9
|
39,374
|
13.4
|
(10.5)
|
Agricultural &
other
|
6,471
|
2.2
|
7,219
|
2.5
|
(10.4)
|
Consumer
|
2,734
|
0.9
|
2,547
|
0.9
|
7.3
|
Total loans, net of
unearned fees
|
$ 296,033
|
100.0
|
$ 292,953
|
100.0
|
1.1
|
CORNERSTONE
BANCSHARES, INC. AND SUBSIDIARY
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
$
2,141,864
|
|
$
1,930,751
|
Interest-bearing
deposits at other financial institutions
|
|
23,304,264
|
|
13,596,970
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash
equivalents
|
|
25,446,128
|
|
15,527,721
|
|
|
|
|
|
|
|
|
Securities available
for sale
|
|
|
85,093,357
|
|
87,192,909
|
Securities held to
maturity (fair value $23,787 and $25,702
|
|
|
|
|
at March 31, 2015 and
December 31, 2014, respectively)
|
|
23,636
|
|
25,428
|
Federal Home Loan
Bank stock, at cost
|
|
2,322,900
|
|
2,322,900
|
Loans, net of
allowance for loan losses of $3,656,545 and
|
|
|
|
|
$3,495,129 at March 31, 2015
and December 31, 2014, respectively
|
|
292,376,801
|
|
291,869,338
|
Bank premises and
equipment, net
|
|
6,296,773
|
|
4,828,123
|
Accrued interest
receivable
|
|
|
1,124,989
|
|
1,142,899
|
Foreclosed
assets
|
|
|
|
8,523,267
|
|
8,000,365
|
Other
assets
|
|
|
|
4,802,640
|
|
4,830,113
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 426,010,491
|
|
$ 415,739,796
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$ 56,620,286
|
|
$ 57,034,792
|
Interest-bearing
demand deposits
|
|
37,175,706
|
|
26,464,173
|
Savings deposits and
money market accounts
|
|
73,729,602
|
|
80,861,110
|
Time
deposits
|
|
|
|
165,672,183
|
|
144,294,390
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
333,197,777
|
|
308,654,465
|
|
|
|
|
|
|
|
|
Accrued interest
payable
|
|
|
105,724
|
|
71,925
|
Federal funds
purchased and securities sold under
|
|
|
|
|
agreements to
repurchase
|
|
|
19,509,728
|
|
29,409,505
|
Federal Home Loan
Bank advances and other borrowings
|
|
31,000,000
|
|
36,000,000
|
Other
liabilities
|
|
|
|
1,270,984
|
|
941,796
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
385,084,213
|
|
375,077,691
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock - no
par value; 2,000,000 shares authorized;
|
|
|
|
|
600,000 shares issued and
outstanding in 2015 and 2014
|
|
14,982,155
|
|
14,964,309
|
Common stock - $1.00
par value; 20,000,000 shares authorized;
|
|
|
|
|
6,709,199 shares issued in
2015 and 2014;
|
|
|
|
|
6,637,941 and 6,627,398
shares outstanding in 2015 and 2014, respectively
|
|
6,637,941
|
|
6,627,398
|
Additional paid-in
capital
|
|
|
21,902,768
|
|
21,821,060
|
Accumulated
deficit
|
|
|
(2,945,867)
|
|
(3,032,551)
|
Accumulated other
comprehensive income
|
|
349,281
|
|
281,889
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
40,926,278
|
|
40,662,105
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$ 426,010,491
|
|
$ 415,739,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Notes to
Consolidated Financial Statements are an integral part of these
statements.
|
|
|
Cornerstone
Bancshares, Inc. and Subsidiary
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
|
|
|
$ 4,198,215
|
|
$ 4,095,468
|
|
Securities and
interest-bearing deposits at other
|
|
|
|
|
|
financial
institutions
|
|
|
|
|
347,063
|
|
430,490
|
|
Federal funds
sold
|
|
|
|
|
5,271
|
|
7,163
|
|
Total interest
income
|
|
|
|
|
4,550,549
|
|
4,533,121
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
Time
deposits
|
|
|
|
|
348,311
|
|
375,490
|
|
Other
deposits
|
|
|
|
|
69,752
|
|
67,074
|
|
Federal funds
purchased and securities
|
|
|
|
|
|
|
sold under agreements to repurchase
|
|
|
22,407
|
|
18,660
|
|
Federal Home Loan
Bank advances and other borrowings
|
152,955
|
|
261,410
|
|
Total interest
expense
|
|
|
|
593,425
|
|
722,634
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses
|
|
3,957,124
|
|
3,810,487
|
|
Provision for loan
losses
|
|
|
|
350,000
|
|
165,000
|
|
Net interest income
after provision for loan losses
|
|
3,607,124
|
|
3,645,487
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
Customer service
fees
|
|
|
|
218,583
|
|
188,911
|
|
Net gains from sale
of securities
|
|
|
|
-
|
|
102,272
|
|
Net gains from sale
of loans and other assets
|
|
61,077
|
|
18,914
|
|
Net gains from sale
of foreclosed assets
|
|
|
72,785
|
|
-
|
|
Other noninterest
income
|
|
|
|
20,253
|
|
12,216
|
|
Total noninterest
income
|
|
|
|
372,698
|
|
322,313
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
|
1,736,672
|
|
1,826,984
|
|
Net occupancy and
equipment expense
|
|
|
286,987
|
|
308,832
|
|
Depository
insurance
|
|
|
|
|
155,353
|
|
154,676
|
|
Foreclosed assets,
net
|
|
|
|
57,615
|
|
349,370
|
|
Other operating
expenses
|
|
|
|
965,865
|
|
661,187
|
|
Total noninterest
expenses
|
|
|
|
3,202,492
|
|
3,301,049
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
777,330
|
|
666,751
|
|
Income tax
expense
|
|
|
|
|
297,800
|
|
254,600
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
479,530
|
|
412,151
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividend requirements
|
|
|
375,000
|
|
375,000
|
|
Accretion on
preferred stock discount
|
|
|
17,846
|
|
17,846
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders
|
|
$
86,684
|
|
$
19,305
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
$
0.01
|
|
$
-
|
|
Diluted
|
|
|
|
|
|
$
0.01
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
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 Three Months
Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Total
|
|
|
Preferred
|
|
Common
|
|
Paid-in
|
|
Accumulated
|
|
Comprehensive
|
|
Stockholders'
|
|
|
Stock
|
|
Stock
|
|
Capital
|
|
Deficit
|
|
Income
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, December 31,
2014
|
|
$ 14,964,309
|
|
$ 6,627,398
|
|
$ 21,821,060
|
|
$
(3,032,551)
|
|
$
281,889
|
|
$ 40,662,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation expense
|
|
-
|
|
-
|
|
66,000
|
|
-
|
|
-
|
|
66,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of common stock, 10,543 shares
|
|
-
|
|
10,543
|
|
15,708
|
|
-
|
|
-
|
|
26,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends paid
|
|
-
|
|
-
|
|
-
|
|
(375,000)
|
|
-
|
|
(375,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion on preferred stock
|
|
17,846
|
|
-
|
|
-
|
|
(17,846)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
-
|
|
-
|
|
-
|
|
479,530
|
|
-
|
|
479,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains on securities available
|
|
|
|
|
|
|
|
|
|
|
|
for sale, net of
reclassification adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
67,392
|
|
67,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, March 31,
2015
|
|
$ 14,982,155
|
|
$ 6,637,941
|
|
$ 21,902,768
|
|
$
(2,945,867)
|
|
$
349,281
|
|
$ 40,926,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Notes to
Consolidated Financial Statements are an integral part of these
statements.
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cornerstone-bancshares-inc-reports-positive-earnings-for-first-quarter-of-2015-300072944.html
SOURCE Cornerstone Bancshares, Inc.