SmartFinancial Inc. (SMBK)

[Enterprising Investor]

Cornerstone Bancshares, Inc. Reports Positive Earnings for First Quarter of 2013 (4/25/13)

CHATTANOOGA, Tenn., April 25, 2013 /PRNewswire/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ; CSBQP), parent company of Cornerstone Community Bank, today reported net income of $452,000 for the first quarter of 2013, an increase of 26.8 percent over the same quarter of 2012.

"I am extremely pleased with the steady, gradual progress we continue to make in strengthening the Bank and our earnings footprint," said Cornerstone's President and CEO Frank Hughes. "The fact that we had marked improvement in earnings, in what is the shortest and typically weakest quarter of the year, is further testament that Cornerstone is on the right track and heading in the right direction."

First Quarter 2013 Highlights Year-Over-Year:

•Net income increased 26.8%

•Transactional deposit accounts grew 35.7%

•Loans grew 3.7%

•Non-accruing loans decreased 41.1%

•Total assets increased 3.4%

•Net interest margin increased from 3.59% to 3.79%

•Shareholders' equity increased 13.9%

•Well-capitalized status improved

"Cornerstone is at an exciting new juncture and now has a solid capital foundation on which to build for the future," said Cornerstone's Chairman Miller Welborn. "Our goal is to continue focusing on our core competency of serving the Chattanooga market as a premier community bank and returning the greatest value possible for each of our customers and shareholders."

Cornerstone is a single-bank holding company, with approximately $430 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.

http://www.prnewswire.com/news-releases-test/cornerstone-bancshares-inc-reports-positive-earnings-for-first-quarter-of-2013-204657011.html