Replies to post #5 on SmartFinancial Inc. (SMBK)

[Enterprising Investor]

Cornerstone Bancshares, Inc. Reports Positive Earnings for Third Quarter of 2013 (10/21/13)

CHATTANOOGA, Tenn., Oct. 21, 2013 /PRNewswire/ -- Cornerstone Bancshares, Inc. ("Cornerstone"; OTC Bulletin Board: CSBQ; CSBQP), holding company of Cornerstone Community Bank ("Bank"), today announced net income of $429,000 for the third quarter of 2013. This marks the eleventh consecutive quarter of positive earnings for Cornerstone and an increase of 17.9 percent from net income of $364,000 for the same quarter of 2012. Net income for the year increased 23.9 percent from $1,031,000 in 2012 to $1,277,000 in 2013 at quarter-end.

Quarterly financial highlights year-over-year include:

•17.9% increase in net income

•9.2% increase in net interest income

•3.8% increase in total loans

•33.3% decrease in Other Real Estate Owned (OREO)

•37.3% decrease in total nonperforming assets

"We continue to make steady, gradual progress in nearly all sectors of the Bank," said Cornerstone's President and Chief Executive Officer Frank Hughes. "We are especially pleased with the significant reduction of OREO and related expenses," he said. "The key to the Bank's success is the disposition of our nonperforming assets."

Based on positive earnings in preceding quarters, Cornerstone continued paying its quarterly Preferred Stock dividend. The most recent payment, made on August 22, 2013, marks the tenth consecutive quarterly dividend payment since the new security was issued in the third quarter of 2010. As of December 31, 2012, Cornerstone had sold all 600,000 shares of the convertible, preferred stock, successfully raising $15 million in new capital and refortifying its capital foundation for the future.

"Cornerstone is in a solid position to grow and thrive right along with the Chattanooga community," said Cornerstone's Chairman Miller Welborn. "We will continue to keep a laser-sharp focus on smart business fundamentals and taking care of our customers, employees and shareholders."

Founded in 1996, Cornerstone is a single-bank holding company, with $430 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.

http://www.prnewswire.com/news-releases/cornerstone-bancshares-inc-reports-positive-earnings-for-third-quarter-of-2013-228643421.html