SmartFinancial Inc. (SMBK)

[Enterprising Investor]

Cornerstone Bancshares, Inc. Reports Positive Earnings for Fourth Quarter of 2013 (1/28/14)

CHATTANOOGA, Tenn., Jan. 28, 2014 /PRNewswire/ -- Cornerstone Bancshares, Inc. ("Cornerstone"; OTC Bulletin Board: CSBQ; CSBQP), holding company of Cornerstone Community Bank ("Bank"), today announced net income of $403,000 for the fourth quarter of 2013 and $1.68 million for the year, which represents an increase of 20 percent over 2012. This marks the twelfth consecutive quarter of positive earnings for Cornerstone.

Other financial highlights year-over-year include:

•20% increase in net income

•4.5% increase in loans

•36% decrease in foreclosed assets

•40% decrease in nonaccruals

•10% increase in core transactional deposits

"We are extremely pleased with this solid performance for the year," said Cornerstone's President and CEO Frank Hughes. "The Bank continued to make steady progress in earnings and was able to use some of its revenue to accelerate the disposition of OREO (other real estate owned)."

Based on its positive quarterly earnings, Cornerstone was able to continue paying its Preferred Stock dividend all four quarters of 2013.

"At this new juncture of a new year, we anticipate continued improvement in asset quality and another strong year of OREO reduction," said Hughes. "Our focus will remain on taking care of our customers and delivering the greatest return on investment for all of our shareholders."

Founded in 1996, Cornerstone is a single-bank holding company, with $432 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.

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http://www.prnewswire.com/news-releases/cornerstone-bancshares-inc-reports-positive-earnings-for-fourth-quarter-of-2013-242373191.html