Exhibit 99.1
Cornerstone Bancshares, Inc. Announces 1st Quarter 2011 Financial Results
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--April 27, 2011--Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following:
Cornerstone Bancshares, Inc. (“Cornerstone”), parent company of Cornerstone Community Bank (“Bank”), reported positive net income for the first quarter 2011 of approximately $252,000. This represents a decrease of 26.7 percent compared to the first quarter of 2010’s net income of approximately $344,000. Cornerstone saw a 58.4 percent decrease in its non accrual loans compared to December 31, 2010, as the Bank was able to take control of troubled properties and moved them to the final phase in the collection process. During the first quarter of 2011, Cornerstone added $15,000 to the loan loss provision as the Bank believes it has sufficient funding to handle loan impairments, which represents a decrease of 98.5 percent compared to the first quarter of 2010.
Total assets decreased 20.4 percent to $447.5 million at March 31, 2011, down $114.6 million from $562.1 million at March 31, 2010. Loans totaled $273.7 million as of March 31, 2011, compared with $325.9 million as of March 31, 2010, a decrease of 16.0 percent. The Bank decreased its security portfolio to $100.9 million as of March 31, 2011, from $150.6 million as of March 31, 2010, a decrease of 33.0 percent. These are planned reductions to take the Bank to a $400-$425 million level. Once at this level, management believes the Bank will be able to stabilize with an appropriate level of capital and an asset mix to return to its normal peer level of profitability.
“We continue to reshape our balance sheet and move problem loans through the collection cycle. We have seen an improvement in the real estate market in Chattanooga and believe that the speed of disposal of properties will accelerate during 2011 as properties either sell or are rented to produce noninterest income,” said Cornerstone President Frank Hughes. “While we still have some improvement to make, I’m pleased with the progress we’ve made and the tremendous strides we’ve taken toward a continued trend in positive net earnings.”
Cornerstone’s allowance for loan losses was $7.9 million or 2.9 percent of total loans as of March 31, 2011, compared to $6.8 million or 2.1 percent of total loans as of March 31, 2010. Nonperforming assets were $27.8 million or 6.2 percent of total assets at March 31, 2011, compared to $19.8 million or 3.5 percent at March 31, 2010. Net charge-offs were $1.2 million for the first quarter of 2011, compared to $160,000 for the first quarter of 2010. Cornerstone has seen a leveling off of loan deterioration in the Chattanooga, Tennessee MSA and expects a decrease in non-performing assets during 2011.
“Our Directors and Management team remain fully committed and engaged to keep Cornerstone tracking in the right direction,” said Cornerstone Chairman Miller Welborn. “Our goal is to provide the best products, service and value to each of our Bank customers, and a positive return on investment for all of our Cornerstone stakeholders.”
Cornerstone is a single-bank holding company, with $448 million in assets, serving the Chattanooga, Tennessee MSA, with five branches throughout Chattanooga, Tennessee 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. and Subsidiary | |||||||||||
First Quarter Financial Highlights | |||||||||||
March 31, 2011 and 2010 | |||||||||||
(Unaudited) | |||||||||||
(Amounts in thousands, except per common share data) | 2011 | 2010 | % Change | ||||||||
Balance Sheet Data at March 31 | |||||||||||
Total assets | $ | 447,540 | $ | 562,065 | (20.4 | ) | |||||
Interest-earning assets | 420,104 | 533,523 | (21.3 | ) | |||||||
Loans | 273,750 | 325,948 | (16.0 | ) | |||||||
Foreclosed assets | 20,464 | 8,240 | 148.3 | ||||||||
Deposits | 337,487 | 429,198 | (21.4 | ) | |||||||
Other interest-bearing liabilities | 81,270 | 102,256 | (20.5 | ) | |||||||
Shareholders' equity | 27,290 | 28,583 | (4.5 | ) | |||||||
Loan to deposit ratio | 81.11 | % | 75.94 | % | 6.8 | ||||||
Tier 1 Leverage Ratio (Bank) | 5.75 | % | 5.64 | % | 2.0 | ||||||
Total Risk-Based Capital Ratio (Bank) | 10.06 | % | 10.01 | % | 0.5 | ||||||
Outstanding common shares (000s) | 6,500 | 6,500 | - | ||||||||
Book value per common share | $ | 3.65 | $ | 4.40 | (17.0 | ) | |||||
Tangible book value per common share | $ | 3.64 | $ | 4.00 | (9.0 | ) | |||||
Market value per common share as of March 31 | $ | 1.50 | $ | 2.70 | (44.4 | ) | |||||
Loan Quality Data | |||||||||||
Nonaccruing loans | 5,671 | 8,469 | (33.0 | ) | |||||||
Loans past due 90 days – accruing | - | - | - | ||||||||
Net charge-offs YTD | 1,233 | 160 | 670.8 | ||||||||
Allowance for loan losses | 7,914 | 6,760 | 17.1 | ||||||||
Allowance for loan losses to total loans | 2.89 | % | 2.07 | % | |||||||
Nonperforming assets to total assets | 5.84 | % | 2.97 | % | |||||||
Performance Data for the Year | |||||||||||
Net income available to common stockholders | $ | 181 | $ | 344 | 47.5 | ||||||
Return on average assets | 0.17 | % | 0.26 | % | |||||||
Return on average equity | 2.71 | % | 4.80 | % | |||||||
Net interest margin | 3.44 | % | 3.64 | % | |||||||
Per common share data: | |||||||||||
Net income – basic | $ | 0.03 | $ | 0.05 | |||||||
Net income – diluted | $ | 0.03 | $ | 0.05 | |||||||
Common dividends paid | $ | - | $ | - | |||||||
Preferred dividends paid | $ | - | $ | - | |||||||
Average shares (000s): | |||||||||||
Basic common stock | 6,500 | 6,500 | |||||||||
Diluted common stock | 6,500 | 6,500 | |||||||||
Preferred stock | 149 | - |
Cornerstone Bancshares, Inc. and Subsidiary | |||||||||||||||||||||
Loan Loss Allowance and Asset Quality Review | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
First | Fourth | Third | Second | First | |||||||||||||||||
(Amounts in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||
Balance at beginning of period | $ | 9,132 | $ | 6,271 | $ | 6,967 | $ | 6,760 | $ | 5,905 | |||||||||||
Provision for loan losses | 15 | 4,130 | 681 | 1,465 | 1,015 | ||||||||||||||||
Net charge-offs | (1,233 | ) | $ | (1,269 | ) | $ | (1,377 | ) | $ | (1,258 | ) | $ | (160 | ) | |||||||
Balance at end of period | $ | 7,914 | $ | 9,132 | $ | 6,271 | $ | 6,967 | $ | 6,760 | |||||||||||
As a % of loans | 2.89 | % | 3.20 | % | 2.15 | % | 2.19 | % | 2.07 | % | |||||||||||
As a % of nonperforming loans | 108.10 | % | 63.06 | % | 38.97 | % | 36.81 | % | 61.21 | % | |||||||||||
As a % of nonperforming assets | 28.48 | % | 33.46 | % | 21.25 | % | 23.91 | % | 39.21 | % | |||||||||||
Net charge-offs as a % of loans (a) | 1.80 | % | 1.78 | % | 1.89 | % | 1.58 | % | 0.20 | % | |||||||||||
Risk element assets | |||||||||||||||||||||
Nonaccruing loans | $ | 5,671 | $ | 13,633 | $ | 10,237 | $ | 13,030 | $ | 8,468 | |||||||||||
Accruing troubled debt restructured | 1,650 | $ | 848 | $ | 5,853 | $ | 5,895 | $ | 2,576 | ||||||||||||
Loans past due 90 days – accruing | $ | - | - | - | - | - | |||||||||||||||
Total nonperforming loans | 7,321 | 14,481 | 16,090 | 18,925 | 11,044 | ||||||||||||||||
Repossessed assets | - | 150 | 285 | 350 | 473 | ||||||||||||||||
Other real estate owned (b)(c)(d) | 20,464 | 12,659 | 13,142 | 9,862 | 8,241 | ||||||||||||||||
Total nonperforming assets | $ | 27,785 | $ | 27,290 | $ | 29,517 | $ | 29,137 | $ | 19,758 | |||||||||||
Loans past due 30-89 days | $ | 8,434 | $ | 2,306 | $ | 1,500 | $ | 6,655 | $ | 6,669 | |||||||||||
Nonperforming loans as a % of loans | 2.67 | % | 5.08 | % | 5.51 | % | 5.94 | % | 3.39 | % | |||||||||||
Nonperforming assets as a % of loans and other real estate owned | 9.44 | % | 9.16 | % | 9.67 | % | 8.87 | % | 5.91 | % | |||||||||||
Total loans | 273,750 | 285,247 | 292,046 | 318,796 | 325,948 | ||||||||||||||||
(a) Annualized | |||||||||||||||||||||
(b) Properties sold since quarter-end | $ | 1,227 | |||||||||||||||||||
(c) Properties rented | $ | 868 | |||||||||||||||||||
(d) Properties under contract to sell | $ | 8,065 |
Cornerstone Bancshares Inc. and Subsidiary | |||||||||||||||||||||
Net Interest Margin Analysis | |||||||||||||||||||||
Taxable Equivalent Basis | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31 | |||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Assets | 2011 | 2010 | |||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
Earning assets: | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
Loans, net of unearned income | $ | 284,297 | $ | 4,639 | 6.62 | % | $ | 330,024 | $ | 5,948 | 7.31 | % | |||||||||
Investment securities | 109,844 | 568 | 2.41 | % | 134,834 | 1,129 | 3.62 | % | |||||||||||||
Other earning assets | 24,122 | 11 | 0.18 | % | 45,528 | 24 | 0.21 | % | |||||||||||||
Total earning assets | 418,263 | $ | 5,218 | 5.14 | % | 510,386 | $ | 7,101 | 5.70 | % | |||||||||||
Allowance for loan losses | (9,071 | ) | (5,993 | ) | |||||||||||||||||
Cash and other assets | 28,629 | 29,919 | |||||||||||||||||||
TOTAL ASSETS | $ | 437,821 | $ | 534,312 | |||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing demand deposits | $ | 27,590 | $ | 21 | 0.31 | % | $ | 27,908 | $ | 30 | 0.44 | % | |||||||||
Savings deposits | 9,499 | 12 | 0.51 | % | 8,727 | 11 | 0.51 | % | |||||||||||||
MMDA's | 24,437 | 60 | 1.00 | % | 23,718 | 57 | 0.97 | % | |||||||||||||
Time deposits | 244,021 | 1,052 | 1.75 | % | 307,034 | 1,684 | 2.22 | % | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 22,625 | 31 | 0.56 | % | 23,637 | 35 | 0.61 | % | |||||||||||||
Other borrowings | 54,356 | 580 | 4.33 | % | 72,306 | 779 | 4.37 | % | |||||||||||||
Total interest bearing liabilities | 382,528 | 1,756 | 1.86 | % | 463,330 | 2,596 | 2.27 | % | |||||||||||||
Net interest spread | $ | 3,462 | 3.28 | % | $ | 4,505 | 3.43 | % | |||||||||||||
Noninterest bearing demand deposits | 28,964 | 48,211 | |||||||||||||||||||
Accrued expenses and other liabilities | (354 | ) | (5,897 | ) | |||||||||||||||||
Shareholders' equity | 26,683 | 28,668 | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 437,821 | $ | 534,312 | |||||||||||||||||
Net yield on earning assets | 3.44 | % | 3.64 | % | |||||||||||||||||
Taxable equivalent adjustment: | |||||||||||||||||||||
Loans | - | - | |||||||||||||||||||
Investment securities | 85 | 74 | |||||||||||||||||||
Total adjustment | 85 | 74 |
Cornerstone Bancshares Inc. and Subsidiary | ||||||||||||||||||||||||
Quarterly Earnings Summary | ||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
2011 | 2010 | Q1-11 / | ||||||||||||||||||||||
First | Fourth | Third | Second | First | Q1-10 | |||||||||||||||||||
(Amounts in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | % Chg | ||||||||||||||||||
Interest Income | ||||||||||||||||||||||||
Loans, including fees | $ | 4,639 | $ | 4,896 | $ | 5,160 | $ | 5,494 | $ | 5,948 | -22.0 | % | ||||||||||||
Investment securities and interest bearing deposits | 568 | 534 | 754 | 1,216 | 1,129 | -49.7 | % | |||||||||||||||||
Other earning assets | 11 | 15 | 19 | 22 | 24 | -54.2 | % | |||||||||||||||||
Total interest income | 5,218 | 5,445 | 5,933 | 6,732 | 7,101 | -26.5 | % | |||||||||||||||||
Interest expense | ||||||||||||||||||||||||
Deposits | 1,145 | 1,239 | 1,478 | 1,719 | 1,782 | -35.8 | % | |||||||||||||||||
Short-term borrowings | 31 | 28 | 32 | 32 | 35 | -11.4 | % | |||||||||||||||||
FHLB advances and other borrowings | 580 | 651 | 666 | 760 | 779 | -25.6 | % | |||||||||||||||||
Total interest expense | 1,756 | 1,918 | 2,176 | 2,511 | 2,596 | -32.4 | % | |||||||||||||||||
Net interest income | 3,462 | 3,527 | 3,757 | 4,221 | 4,505 | -23.1 | % | |||||||||||||||||
Provision for loan losses | 15 | 4,130 | 681 | 1,465 | 1,015 | -98.5 | % | |||||||||||||||||
Net interest income after the | ||||||||||||||||||||||||
provision for loan losses | 3,447 | (603 | ) | 3,076 | 2,756 | 3,490 | -1.2 | % | ||||||||||||||||
Noninterest income | ||||||||||||||||||||||||
Customer service fees | 215 | 280 | 309 | 342 | 342 | -37.0 | % | |||||||||||||||||
Other noninterest income | 20 | 63 | 34 | 29 | 31 | -34.6 | % | |||||||||||||||||
Gain / (loss) on sale of loans and other assets | 34 | (681 | ) | 544 | 439 | (53 | ) | -164.2 | % | |||||||||||||||
Total noninterest income | 269 | (338 | ) | 887 | 810 | 320 | -15.9 | % | ||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||
Salaries and employee benefits | 1,542 | 1,515 | 1,525 | 1,521 | 1,633 | -5.6 | % | |||||||||||||||||
Net occupancy and equipment | 406 | 380 | 397 | 369 | 355 | 14.5 | % | |||||||||||||||||
Depository insurance | 322 | 350 | 386 | 237 | 247 | 30.4 | % | |||||||||||||||||
Goodwill impairment | - | 2,541 | - | - | - | - | ||||||||||||||||||
Other operating expense | 1,145 | 1,255 | 1,372 | 1,476 | 1,081 | 5.9 | % | |||||||||||||||||
Total noninterest expense | 3,415 | 6,041 | 3,680 | 3,603 | 3,316 | 3.0 | % | |||||||||||||||||
Income (loss) before income taxes | 301 | (6,982 | ) | 283 | (37 | ) | 494 | -39.1 | % | |||||||||||||||
Income tax expense (benefit) | 49 | (1,699 | ) | 69 | (55 | ) | 150 | -67.6 | % | |||||||||||||||
Net income (loss) | 252 | (5,283 | ) | 214 | 18 | 344 | -26.7 | % | ||||||||||||||||
Preferred stock dividend requirements | 72 | 34 | - | - | - | |||||||||||||||||||
Net income (loss) available to common | ||||||||||||||||||||||||
shareholders | $ | 180 | $ | (5,317 | ) | $ | 214 | $ | 18 | $ | 344 | |||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||||
Basic | $ | 0.03 | $ | (0.82 | ) | $ | 0.03 | $ | 0.00 | $ | 0.05 | NM | ||||||||||||
Diluted | $ | 0.03 | $ | (0.82 | ) | $ | 0.03 | $ | 0.00 | $ | 0.05 | NM | ||||||||||||
Average basic shares (000s) | 6,500 | 6,500 | 6,500 | 6,500 | 6,500 | NM | ||||||||||||||||||
Average diluted shares (000s) | 6,500 | 6,500 | 6,500 | 6,500 | 6,500 | NM | ||||||||||||||||||
Performance Ratios | ||||||||||||||||||||||||
Return on average equity | 3.78 | % | -67.90 | % | 2.81 | % | 0.25 | % | 4.80 | % | NM | |||||||||||||
Return on average assets | 0.23 | % | -4.66 | % | 0.17 | % | 0.01 | % | 0.26 | % | NM | |||||||||||||
Net interest margin | 3.44 | % | 3.36 | % | 3.36 | % | 3.41 | % | 3.64 | % | NM | |||||||||||||
Average equity | 26,683 | 31,120 | 30,355 | 29,105 | 28,668 | |||||||||||||||||||
Average assets | 437,821 | 453,665 | 488,771 | 529,655 | 534,312 | |||||||||||||||||||
Average interest-earning assets | 418,263 | 425,789 | 458,213 | 506,631 | 510,386 | |||||||||||||||||||
NM=Not Material |
Cornerstone Bancshares, Inc. and Subsidiary | ||||||||||||||
Loan Stratification | ||||||||||||||
2011 | 2010 | |||||||||||||
(Amounts in thousands) | First | % of | First | % of | % Dollar | |||||||||
Quarter | Total | Quarter | Total | Change | ||||||||||
Non-residential real estate | ||||||||||||||
Owner occupied | $ | 64,492 | 23.6 | $ | 76,016 | 23.3 | (15.2 | ) | ||||||
Non-owner occupied | 59,336 | 21.7 | 74,690 | 22.9 | (20.6 | ) | ||||||||
Multi-family real estate | 11,781 | 4.3 | 13,172 | 4.0 | (10.6 | ) | ||||||||
1-4 family construction | 3,827 | 1.4 | 6,318 | 1.9 | (39.4 | ) | ||||||||
Commercial land and lot development | 19,718 | 7.2 | 33,121 | 10.3 | (40.5 | ) | ||||||||
Total non-residential real estate | 159,154 | 58.2 | 203,317 | 62.4 | (21.7 | ) | ||||||||
Residential real estate | ||||||||||||||
First Mortgage - 1-4 family | 42,835 | 15.6 | 43,074 | 13.2 | (0.6 | ) | ||||||||
Second Mortgage - 1-4 family | 4,639 | 1.7 | 5,277 | 1.6 | (12.1 | ) | ||||||||
Home equity lines | 11,005 | 4.0 | 10,073 | 3.2 | 9.3 | |||||||||
Total residential real estate | 58,479 | 21.3 | 58,424 | 18.0 | 0.1 | |||||||||
Total real estate loans | 217,633 | 79.5 | 261,741 | 80.4 | (16.9 | ) | ||||||||
Commercial | 44,592 | 16.3 | 54,814 | 16.8 | (18.6 | ) | ||||||||
Agricultural & other | 8,449 | 3.1 | 6,013 | 1.8 | 40.5 | |||||||||
Consumer | 3,076 | 1.1 | 3,380 | 1.0 | (9.0 | ) | ||||||||
Total loans, net of unearned fees | $ | 273,750 | 100.0 | $ | 325,948 | 100.1 | (16.0 | ) |
Cornerstone Bancshares, Inc. and Subsidiary | |||||||||||||||||||||||
Consolidated Statement of Changes in Stockholders' Equity - Unaudited | |||||||||||||||||||||||
For the three months ended March 31, 2011 | |||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||
Comprehensive | Preferred | Common | Paid-in | Retained | Comprehensive | Stockholders' | |||||||||||||||||
Income | Stock | Stock | Capital | Deficit | Income | Equity | |||||||||||||||||
BALANCE, December 31, 2010 | $ | 2,727,424 | $ | 6,500,396 | $ | 21,237,298 | $ | (4,317,130 | ) | $ | (328,835 | ) | $ | 25,819,153 | |||||||||
Employee compensation stock option expense | - | - | 19,785 | - | - | 19,785 | |||||||||||||||||
Issuance of Series A Convertible Preferred Stock | 851,661 | - | - | - | - | 851,661 | |||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | $ | 252,275 | - | - | - | 252,275 | - | 252,275 | |||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Unrealized holding gains on securities available for sale, net of reclassification adjustment | 346,702 | - | - | - | - | 346,702 | 346,702 | ||||||||||||||||
Total comprehensive income | $ | 598,977 | |||||||||||||||||||||
BALANCE, March 31, 2011 | $ | 3,579,085 | $ | 6,500,396 | $ | 21,257,083 | $ | (4,064,855 | ) | $ | 17,867 | $ | 27,289,576 |
Cornerstone Bancshares, Inc. and Subsidiary | ||||||||
Consolidated Statements of Operations | ||||||||
Unaudited | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
INTEREST INCOME | ||||||||
Loans, including fees | $ | 4,638,805 | $ | 5,948,246 | ||||
Investment securities | 568,672 | 1,129,279 | ||||||
Federal funds sold & other earning assets | 11,003 | 23,661 | ||||||
Total interest income | 5,218,480 | 7,101,186 | ||||||
INTEREST EXPENSE | ||||||||
Time deposits | 1,052,449 | 1,684,027 | ||||||
Other deposits | 92,612 | 97,723 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 31,003 | 35,415 | ||||||
FHLB advances and other borrowings | 579,658 | 779,197 | ||||||
Total interest expense | 1,755,722 | 2,596,362 | ||||||
Net interest income before provision for loan losses | 3,462,758 | 4,504,824 | ||||||
Provision for loan losses | 15,000 | 1,015,000 | ||||||
Net interest income after the provision for loan losses | 3,447,758 | 3,489,824 | ||||||
NONINTEREST INCOME | ||||||||
Customer service fee | 215,451 | 341,914 | ||||||
Other noninterest income | 20,279 | 20,611 | ||||||
Net gains from sale of loans and other assets | 34,027 | 41,137 | ||||||
Total noninterest income | 269,757 | 403,662 | ||||||
NONINTEREST EXPENSE | ||||||||
Salaries and employee benefits | 1,542,702 | 1,633,344 | ||||||
Net occupancy and equipment expense | 406,334 | 355,183 | ||||||
Depository insurance | 322,655 | 269,740 | ||||||
Foreclosed assets, net | 361,570 | 196,173 | ||||||
Other operating expense | 783,354 | 945,558 | ||||||
Total noninterest expense | 3,416,615 | 3,399,998 | ||||||
Income before provision for income taxes | 300,900 | 493,488 | ||||||
Provision for income taxes | 48,625 | 149,701 | ||||||
Net income | 252,275 | 343,787 | ||||||
Preferred stock dividend requirement | 71,588 | - | ||||||
Net income available to common shareholders | $ | 180,687 | $ | 343,787 | ||||
EARNINGS PER COMMON SHARE | ||||||||
Basic net income per common share | $ | 0.03 | $ | 0.05 | ||||
Diluted net income per common share | $ | 0.03 | $ | 0.05 | ||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | - | $ | - |
Cornerstone Bancshares, Inc. and Subsidiary | ||||||||
Consolidated Balance Sheets | ||||||||
Unaudited | ||||||||
March 31, | December 31, | |||||||
ASSETS | 2011 | 2010 | ||||||
Cash and due from banks | $ | 1,508,964 | $ | 1,490,030 | ||||
Interest-bearing deposits at other financial institutions | 39,921,667 | 21,491,922 | ||||||
Securities available for sale | 100,788,157 | 108,250,434 | ||||||
Securities held to maturity (fair value approximates of $94,528 and $98,388 at March 31, 2011 and December 31, 2010, respectively) | 92,064 | 95,702 | ||||||
Federal Home Loan Bank stock, at cost | 2,322,900 | 2,322,900 | ||||||
Loans, net of allowance for loan losses of $7,913,933 at March 31, 2011 and $9,132,171 at December 31, 2010 | 265,835,680 | 276,114,617 | ||||||
Bank premises and equipment, net | 6,142,044 | 8,047,370 | ||||||
Accrued interest receivable | 1,430,772 | 1,326,480 | ||||||
Foreclosed assets | 20,463,835 | 12,808,838 | ||||||
Other assets | 9,033,919 | 9,551,121 | ||||||
Total Assets | $ | 447,540,002 | $ | 441,499,414 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand deposits | $ | 33,529,178 | $ | 28,980,043 | ||||
Interest-bearing demand deposits | 27,945,913 | 24,834,214 | ||||||
Savings deposits and money market accounts | 34,775,755 | 34,041,672 | ||||||
Time deposits | 241,235,748 | 247,591,161 | ||||||
Total deposits | 337,486,594 | 335,447,090 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 27,789,544 | 24,325,372 | ||||||
Federal Home Loan Bank advances and other borrowings | 53,480,000 | 54,715,000 | ||||||
Accrued interest payable | 211,452 | 176,761 | ||||||
Other liabilities | 1,282,836 | 1,016,038 | ||||||
Total Liabilities | 420,250,426 | 415,680,261 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock - no par value; 2,000,000 shares authorized; 148,920 shares issued and outstanding in 2011 and 114,540 shares issued and outstanding in 2010 | 3,579,085 | 2,727,424 | ||||||
Common stock - $l.00 par value; 20,000,000 shares authorized; 6,709,199 issued in 2011 and 2010; 6,500,396 outstanding in 2011 and 2010 | 6,500,396 | 6,500,396 | ||||||
Additional paid-in capital | 21,257,083 | 21,237,298 | ||||||
Retained deficit | (4,064,855 | ) | (4,317,130 | ) | ||||
Accumulated other comprehensive income | 17,867 | (328,835 | ) | |||||
Total Stockholders' Equity | 27,289,576 | 25,819,153 | ||||||
Total Liabilities and Stockholders' Equity | $ | 447,540,002 | $ | 441,499,414 | ||||
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6699486&lang=en
CONTACT:
Cornerstone Bancshares, Inc.
Frank Hughes, President and CEO, 423-385-3009