CHATTANOOGA, Tenn., Jan. 27, 2015 /PRNewswire/ -- Cornerstone Bancshares, Inc. ("Cornerstone"; OTC Bulletin Board: CSBQ; CSBQP), holding company of Cornerstone Community Bank ("Bank"), today announced net income of $412,000 for the fourth quarter of 2014, which represents a 2.1 percent increase in net income compared with the same quarter of 2013. This also marks the sixteenth consecutive quarter of positive earnings for Cornerstone.
Net income for the year as of December 31, 2014 was $1,638,000, which represents a 2.5 percent decrease from 2013. Other financial highlights year-over-year include:
-- 2% increase in loans
-- 12.9% increase in loan-to-deposit ratio
-- 38.1% reduction in net foreclosed assets
-- 9.6% increase in Tier 1 leverage ratio
-- 19.7% decrease in nonaccrual loans
-- 16% decrease in core transactional deposits
"The Board is extremely pleased with this solid performance for the year," said Cornerstone's Chairman Welborn. "Our focus for the new year will be on steady loan and deposit growth, increased earnings, and positioning Cornerstone favorably for our upcoming merger."
On December 8, 2014, Cornerstone announced the signing of a definitive agreement to merge holding companies with SmartFinancial, Inc., parent company of SmartBank, which has seven branch locations throughout East Tennessee and the Florida Panhandle. When completed, the merger will create a nearly $1 billion banking entity under the name SmartFinancial, Inc., for which Welborn will serve as Chairman of a combined Board of Directors.
"We are excited for the future and the opportunities that this new partnership holds," said Welborn. "It will give us the size and scale to compete in this new banking environment, an expanded footprint for greater growth potential, and the ability to deliver the greatest value for all of our shareholders. Pardon the pun, but it's just a 'smart' move."
Founded in 1996, Cornerstone is a single-bank holding company, with $416 million in assets, serving the Chattanooga, Tennessee MSA, with five full-service branch locations throughout Chattanooga. Locally owned and 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 proxy statement for its 2014 annual meeting of shareholders and its Annual Report on Form 10-K for the year ended December 31, 2013, 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
Fourth Quarter Financial Highlights
December 31, 2014 and 2013
(Unaudited)
(Amounts in thousands, except per common share data) 2014 2013 % Change
--------------------------------------------------- ---- ---- --------
Balance Sheet Data at December 31
---------------------------------
Total assets $415,740 $432,223 (3.8)
Interest-earning assets 398,503 406,708 (2.0)
Loans 295,364 289,440 2.0
Foreclosed assets, net 8,000 12,926 (38.1)
Deposits 308,654 341,414 (9.6)
Other interest-bearing liabilities 65,410 49,714 31.6
Shareholders' equity 40,662 40,134 1.3
Loan to deposit ratio 95.69% 84.78% 12.9
Tier 1 leverage ratio (Bank, est) 9.38% 8.56% 9.6
Total risk-based capital ratio (Bank, est) 13.45% 13.10% 2.7
Outstanding common shares 6,627 6,547 1.2
Book value per common share $3.88 $3.86 0.6
Tangible book value per common share $3.88 $3.86 0.6
Market value per common share as of December 31 $3.31 $2.37 39.7
Loan Quality Data
-----------------
Nonaccruing loans 2,865 3,566 (19.7)
Loans past due 90 days - accruing - - -
Net charge-offs YTD 223 3,238 (93.1)
Allowance for loan losses 3,495 3,203 9.1
Allowance for loan losses to total loans 1.18% 1.11%
Nonperforming assets to total assets 2.61% 3.82%
Performance Data for the Year
-----------------------------
Net income $1,638 $1,681 (2.5)
Return on average assets 0.39% 0.39%
Return on average equity 4.04% 4.12%
Net interest margin 3.90% 3.80%
Per common share data:
Net income - basic $0.01 $0.02
Net income - diluted $0.01 $0.02
Common dividends $ - $ -
Average shares (000s):
Basic common stock 6,614 6,547
Diluted common stock 6,837 6,662
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)
----------
2014 2013 Q4-14 /
Fourth Third Second First Fourth Q4-13
(Amounts in thousands) Quarter Quarter Quarter Quarter Quarter % Chg
--------------------- ------- ------- ------- ------- ------- -----
Net interest income $3,870 $3,810 $3,856 $3,811 $3,741 3.4
Total noninterest income 459 504 535 322 617 (25.6)
--- --- --- --- --- -----
Sub-total 4,329 4,314 4,391 4,133 4,358 (0.7)
Total noninterest expense 3,664 3,659 3,375 3,301 3,704 (1.1)
----- ----- ----- ----- ----- ----
Pre-tax, pre-provision income 665 655 1,016 832 654 1.7
=== === ===== === === ===
Net gains from sale of securiites (129) (169) (300) (102) (227) N/A
Foreclosed assets expense, net 441 688 363 349 693 (36.4)
--- --- --- --- --- -----
Adjusted PTPP 977 1,174 1,079 1,079 1,120 (12.8)
=== ===== ===== ===== ===== =====
Reconciliation of Non-GAAP Financial Measures (Unaudited)
----------
2014 2013
Fourth Third Second First Fourth
(Amounts in thousands) Quarter Quarter Quarter Quarter Quarter
--------------------- ------- ------- ------- ------- -------
Pre-tax, pre-provision income $665 $655 $1,016 $832 $654
Income tax expense (253) (250) (257) (255) (250)
Provision for loan losses - - (350) (165) -
--- --- ---- ---- ---
Net income 412 405 409 412 404
=== === === === ===
Adjusted PTPP 977 1,174 1,079 1,079 1,120
Net gains from sale of securities 129 169 300 102 227
Foreclosed assets expense, net (441) (688) (363) (349) (693)
Provision for loan losses - - (350) (165) -
Income tax expense (253) (250) (257) (255) (250)
---- ---- ---- ---- ----
Net income 412 405 409 412 404
=== === === === ===
Cornerstone Bancshares, Inc. and Subsidiary
Quarterly Earnings Summary
(Unaudited)
----------
2014 2013 Q4-14 /
Fourth Third Second First Fourth Q4-13
(Amounts in thousands) Quarter Quarter Quarter Quarter Quarter % Chg
--------------------- ------- ------- ------- ------- ------- -----
Interest income
Loans, including fees $4,202 $4,168 $4,225 $4,095 $4,190 0.3
Securities and interest-bearing deposits at 312 327 347 431 315 (0.9)
other financial institutions
Federal funds sold and other earning assets 6 7 10 7 8 (25.8)
------------------------------------------- --- --- --- --- ---
Total interest income 4,520 4,502 4,582 4,533 4,513 0.1
--------------------- ----- ----- ----- ----- -----
Interest expense
Deposits 415 442 442 442 487 (14.8)
Short-term borrowings 26 19 21 19 18 46.7
FHLB advances and other borrowing 209 231 263 261 267 (21.6)
--------------------------------- --- --- --- --- ---
Total interest expense 650 692 726 722 772 (15.8)
---------------------- --- --- --- --- ---
Net interest income 3,870 3,810 3,856 3,811 3,741 3.5
Provision for losses - - 350 165 -
-------------------- --- --- --- --- ---
Net interest income after the
provision for loan losses 3,870 3,810 3,506 3,646 3,741 3.5
------------------------- ----- ----- ----- ----- -----
Noninterest income
Customer service fees 237 215 210 189 213 11.4
Other noninterest income 14 13 18 12 13 5.2
Gain on sale of assets 208 276 307 121 391 (46.8)
---------------------- --- --- --- --- ---
Total noninterest income 459 504 535 322 617 (25.6)
------------------------ --- --- --- --- ---
Noninterest expense
Salaries and employee benefits 1,803 1,702 1,723 1,827 1,716 5.1
Net occupancy and equipment 282 315 324 309 324 (12.9)
Depository insurance 158 163 164 155 162 (2.5)
Foreclosed asset expense (1) 441 688 363 349 693 (36.4)
Other operating expense 980 791 801 661 810 20.9
----------------------- --- --- --- --- ---
Total noninterest expense 3,664 3,659 3,375 3,301 3,705 (1.1)
------------------------- ----- ----- ----- ----- -----
Income before income taxes 665 655 666 667 653 1.8
Income tax expense 253 250 257 255 250 1.4
------------------ --- --- --- --- ---
Net income $412 $405 $409 $412 $404 2.1
========== ==== ==== ==== ==== ====
Preferred stock dividends & accretion on 393 393 393 393 393 (0.0)
preferred stock discount
Net income available to common 19 12 16 19 11 69.7
Net income per common share:
Basic $0.01 $0.00 $0.00 $0.00 $0.00 472.7
===== ===== ===== ===== ===== =====
Diluted $0.01 $0.00 $0.00 $0.00 $0.00 482.8
======= ===== ===== ===== ===== =====
Average basic shares 6,627 6,627 6,627 6,575 6,547 1.2
Average common diluted shares 6,952 6,844 6,807 6,714 6,662 4.4
Performance Ratios
Return on average equity 4.05% 4.01% 4.02% 4.08% 3.98% 1.8
Return on average assets 0.40% 0.39% 0.38% 0.39% 0.38% 6.6
Net interest margin 3.97% 3.86% 3.89% 3.90% 3.76% 5.5
Average equity 40,649 40,481 40,710 40,447 40,487 0.4
Average assets 409,170 416,247 426,951 426,282 426,660 (4.1)
Average interest-earning assets 388,746 394,156 400,760 400,175 398,174 (2.4)
(1) Includes OREO adjustments to fair value
Cornerstone Bancshares, Inc. and Subsidiary
Loan Loss Allowance and Asset Quality Review
2014 2013
Fourth Third Second First Fourth
(Amounts in thousands) Quarter Quarter Quarter Quarter Quarter
--------------------- ------- ------- ------- ------- -------
Allowance for loan losses
Balance at beginning of period $3,474 $3,330 $3,011 $3,203 $3,159
Provision for loan losses - - 350 165 -
Net charge-offs 21 145 (32) (357) 44
--------------- --- --- --- ---- ---
Balance at end of period $3,495 $3,474 $3,330 $3,011 $3,203
======================== ====== ====== ====== ====== ======
As a % of loans 1.18% 1.16% 1.14% 1.03% 1.11%
As a % of nonperforming loans 122.00% 96.51% 116.72% 63.00% 89.81%
As a % of nonperforming assets 32.17% 23.81% 21.01% 17.37% 19.42%
Net charge-offs as a % of loans (a) -0.03% -0.19% 0.04% 0.49% -0.06%
Risk element assets
Accruing troubled debt restructured $3,903 $3,698 $3,787 $3,337 $4,251
Loans past due 30-89 days $2,162 $2,846 $1,365 $2,193 $2,250
Nonaccruing loans $2,865 $3,600 $2,853 $4,779 $3,566
Loans past due 90 days - accruing - - - - -
--------------------------------- --- --- --- --- ---
Total nonperforming loans $2,865 $3,600 $2,853 $4,779 $3,566
Foreclosed assets (b) (c) $8,000 $10,994 $12,996 $12,559 $12,926
------------------------ ------ ------- ------- ------- -------
Total nonperforming assets $10,865 $14,594 $15,849 $17,338 $16,492
Nonperforming loans as a % of loans 0.97% 1.21% 0.98% 1.63% 1.23%
Nonperforming assets as a % of loans
and foreclosed assets 3.58% 4.72% 5.19% 5.68% 5.45%
Total loans 295,364 298,390 292,369 292,952 289,440
(a) Annualized
(b) Properties sold during 4thQ 2014 $2,951
(c) Properties under contract to sell $116
Cornerstone Bancshares, Inc. and Subsidiary Cornerstone Bancshares, Inc. and Subsidiary
Net Interest Margin Analysis Net Interest Margin Analysis
Taxable Equivalent Basis Taxable Equivalent Basis
Three months ended Twelve months ended
December 31 December 31
(Amounts in thousands) (Amounts in thousands)
Assets 2014 2013 Assets 2014 2013
---- ---- ---- ----
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Earning assets: Balance Expense Rate Balance Expense Rate Earning assets: Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ---- ------- ------- ---- ------- ------- ----
Loans, net of unearned income $295,562 $4,202 5.64% $286,003 $4,190 5.81% Loans, net of unearned income $293,708 $16,690 5.68% $278,975 $16,705 5.99%
Investment securities 81,781 312 1.60% 99,065 315 1.41% Investment securities 89,114 1,416 1.72% 98,108 1,694 1.94%
Other earning assets 11,402 6 0.21% 13,106 8 0.23% Other earning assets 13,615 31 0.23% 20,749 54 0.26%
------ ------ ------ ------
Total earning assets 388,746 $4,520 4.63% 398,174 $4,513 4.53% Total earning assets 396,437 $18,137 4.60% 397,832 $18,453 4.69%
====== ====== ======= =======
Allowance for loan losses (3,500) (3,045) Allowance for loan losses (3,284) (4,547)
Cash and other assets 23,924 31,531 Cash and other assets 27,350 35,409
------
TOTAL ASSETS $409,170 $426,660 TOTAL ASSETS $420,503 $428,694
======== ======== ======== ========
Liabilities and Shareholders' Equity Liabilities and Shareholders' Equity
Interest-bearing liabilities: Interest-bearing liabilities:
Interest-bearing demand deposits $25,203 $9 0.14% $25,363 $9 0.14% Interest-bearing demand deposits $26,921 $40 0.15% $26,196 $55 0.21%
Savings deposits 13,183 3 0.09% 14,149 5 0.15% Savings deposits 14,536 14 0.10% 12,718 27 0.22%
MMDA's 69,906 68 0.39% 74,607 73 0.39% MMDA's 68,367 259 0.38% 76,194 392 0.51%
Time deposits 148,779 334 0.89% 160,824 400 0.99% Time deposits 157,112 1,428 0.91% 165,748 1,766 1.07%
Federal funds purchased and securities Federal funds purchased and securities
sold under agreements to repurchase 23,710 27 0.45% 21,184 18 0.33% sold under agreements to repurchase 22,026 85 0.39% 22,041 74 0.34%
Federal Home Loan Bank and other borrowings 34,522 209 2.40% 33,095 267 3.20% Federal Home Loan Bank and other borrowings 30,845 964 3.13% 31,634 1,209 3.82%
------ --- ------ --- ------ --- ------ -----
Total interest-bearing liabilities 315,305 650 0.82% 329,222 772 0.93% Total interest-bearing liabilities 319,807 2,790 0.87% 334,531 3,523 1.05%
Net interest spread $3,870 3.81% $3,741 3.60% Net interest spread $15,347 3.73% $14,930 3.64%
====== ====== ======= =======
Noninterest-bearing demand deposits 51,961 55,398 Noninterest-bearing demand deposits 59,219 51,614
Accrued expenses and other liabilities 1,255 1,552 Accrued expenses and other liabilities 910 1,785
Shareholders' equity $40,649 40,487 Shareholders' equity 40,567 40,764
TOTAL LIABILITIES AND TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $409,170 $426,660 SHAREHOLDERS' EQUITY $420,503 $428,694
======== ======== ======== ========
Net yield on earning assets 3.97% 3.76% Net yield on earning assets 3.90% 3.80%
==== ==== ==== ====
Taxable equivalent adjustment: Taxable equivalent adjustment:
Loans 0 0 Loans 0 0
Investment securities 18 37 Investment securities 112 205
Total adjustment 18 37 Total adjustment 112 205
=== === === ===
Cornerstone Bancshares, Inc. and Subsidiary
Loan Composition
2014 2013
(Amounts in thousands) Fourth % of Fourth % of % Dollar
---------------------
Quarter Total Quarter Total Change
------- ----- ------- ----- ------
Non-residential real estate
Owner occupied $68,581 23.2 $65,765 22.7 4.3
Non-owner occupied 74,587 25.3 64,053 22.1 16.4
Multi-family real estate 8,964 3.0 8,249 2.9 8.7
1-4 family construction 9,274 3.1 10,832 3.7 (14.4)
Commercial land and lot development 19,973 6.8 25,254 8.7 (20.9)
----------------------------------- ------ --- ------ ---
Total non-residential real estate 181,379 61.4 174,153 60.2 4.1
--------------------------------- ------- ---- ------- ---- ---
Residential real estate
First mortgage - 1-4 family 46,661 15.8 47,931 16.6 (2.6)
Second mortgage - 1-4 family 1,554 0.5 1,960 0.7 (20.7)
Home equity lines 19,728 6.7 18,175 6.3 8.5
----------------- ------ --- ------ ---
Total residential real estate 67,943 23.0 68,066 23.5 (0.2)
----------------------------- ------ ---- ------ ---- ----
Total real estate loans 249,322 84.4 242,219 83.7 2.9
Commercial 36,247 12.3 37,221 12.9 (2.6)
Agricultural & other 6,860 2.3 7,493 2.6 (8.4)
Consumer 2,935 1.0 2,507 0.9 17.1
-------- ----- --- ----- ---
Total loans, net of unearned fees $295,364 100.0 $289,440 100.0 2.0
================================= ======== ===== ======== ===== ===
CORNERSTONE BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31, 2014 and 2013
Unaudited
2014 2013
---- ----
ASSETS
Cash and due from banks $1,930,751 $2,149,467
Interest-bearing deposits at other financial institutions 13,596,970 22,702,270
---------- ----------
Total cash and cash equivalents 15,527,721 24,851,737
Securities available for sale 87,192,909 92,208,672
Securities held to maturity (fair value approximates
$25,702 at 2014 and $35,027 at 2013) 25,428 34,165
Federal Home Loan Bank stock, at cost 2,322,900 2,322,900
Loans, net of allowance for loan losses of
$3,495,129 in 2014 and $3,203,158 in 2013 291,869,338 286,236,578
Bank premises and equipment, net 4,828,123 4,992,449
Accrued interest receivable 1,142,899 977,925
Foreclosed assets, net 8,000,365 12,925,748
Other assets 4,830,113 7,673,179
--------- ---------
Total assets $415,739,796 $432,223,353
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand deposits $57,034,792 $75,206,540
Interest-bearing demand deposits 26,464,173 24,563,987
Savings deposits and money market accounts 80,861,110 86,329,930
Time deposits 144,294,390 155,313,920
----------- -----------
Total deposits 308,654,465 341,414,377
Accrued interest payable 71,925 82,320
Federal funds purchased and securities sold under
agreements to repurchase 29,409,505 22,974,117
Federal Home Loan Bank advances and other borrowings 36,000,000 26,740,000
Other liabilities 941,796 878,811
------- -------
Total liabilities 375,077,691 392,089,625
----------- -----------
Stockholders' equity:
Preferred stock - no par value; 2,000,000 shares authorized;
600,000 shares issued and outstanding in 2014 and 2013 14,964,309 14,892,927
Common stock - $1.00 par value; 20,000,000 shares
authorized in 2014 and 2013;
6,709,199 shares issued in 2014 and 2013;
6,627,398 and 6,547,074 shares outstanding in 2014 and 2013 6,627,398 6,547,074
Additional paid-in capital 21,821,060 21,549,883
Accumulated deficit (3,032,551) (3,099,451)
Accumulated other comprehensive income 281,889 243,295
------- -------
Total stockholders' equity 40,662,105 40,133,728
---------- ----------
Total liabilities and stockholders'
equity $415,739,796 $432,223,353
============ ============
The Notes to Consolidated Financial Statements are an integral part of these statements.
CORNERSTONE BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31, 2014, 2013, and 2012
Unaudited
2014 2013 2012
---- ---- ----
INTEREST INCOME
Loans, including fees $16,690,496 $16,705,237 $17,288,855
Securities and interest-bearing deposits at other financial institutions 1,416,190 1,694,292 2,003,620
Federal funds sold 30,678 53,502 60,404
------ ------ ------
Total interest income 18,137,364 18,453,031 19,352,879
---------- ---------- ----------
INTEREST EXPENSE
Time deposits 1,427,758 1,766,237 2,471,135
Other deposits 313,105 473,921 546,812
Federal funds purchased and securities
sold under agreements to repurchase 84,641 73,903 94,402
Federal Home Loan Bank advances and other borrowings 964,351 1,208,490 1,672,478
------- --------- ---------
Total interest expense 2,789,855 3,522,551 4,784,827
--------- --------- ---------
Net interest income before provision for
loan losses 15,347,509 14,930,480 14,568,052
Provision for loan losses 515,000 300,000 430,000
------- ------- -------
Net interest income after provision for loan
losses 14,832,509 14,630,480 14,138,052
---------- ---------- ----------
NONINTEREST INCOME
Customer service fees 849,984 821,072 803,251
Other noninterest income 57,148 62,457 64,519
Net gains from sale of securities 700,390 652,421 -
Net gains from sale of loans and other assets 211,819 403,569 151,710
------- ------- -------
Total noninterest income 1,819,341 1,939,519 1,019,480
--------- --------- ---------
NONINTEREST EXPENSES
Salaries and employee benefits 7,054,474 6,555,059 6,327,226
Net occupancy and equipment expense 1,230,099 1,335,126 1,447,204
Depository insurance 640,097 644,918 803,902
Foreclosed assets, net 1,841,575 2,001,755 1,100,670
Other operating expenses 3,233,318 3,309,532 3,498,867
--------- --------- ---------
Total noninterest expenses 13,999,563 13,846,390 13,177,869
---------- ---------- ----------
Income before income tax expense 2,652,287 2,723,609 1,979,663
Income tax expense 1,014,005 1,042,800 577,600
--------- --------- -------
Net income 1,638,282 1,680,809 1,402,063
Preferred stock dividend requirements 1,500,000 1,500,000 1,229,780
Accretion on preferred stock discount 71,382 71,381 63,924
------ ------ ------
Net income available to common stockholders $66,900 $109,428 $108,359
======= ======== ========
EARNINGS PER COMMON SHARE
Basic $0.01 $0.02 $0.02
Diluted 0.01 0.02 0.02
==== ==== ====
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 Year Ended December 31, 2014
Accumulated
Additional Other Total
Preferred Common Paid-in Accumulated Comprehensive Stockholders'
Stock Stock Capital Deficit Income Equity
----- ----- ------- ------- ------ ------
BALANCE, December 31, 2013 $14,892,927 $6,547,074 $21,549,883 $(3,099,451) $243,295 $40,133,728
Stock compensation expense - - 160,500 - - 160,500
Issuance of common stock, 80,324 shares - 80,324 110,677 - - 191,001
Preferred stock dividends paid - - - (1,500,000) - (1,500,000)
Accretion on preferred stock 71,382 - - (71,382) - -
Net income - - - 1,638,282 - 1,638,282
Unrealized holding gains on securities available
for sale, net of reclassification adjustment and taxes - - - - 38,594 38,594
--- --- --- --- ------ ------
BALANCE, December 31, 2014 $14,964,309 $6,627,398 $21,821,060 $(3,032,551) $281,889 $40,662,105
=========== ========== =========== =========== ======== ===========
The Notes to Consolidated Financial Statements are an integral part of these statements.
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SOURCE Cornerstone Bancshares, Inc.
