Cornerstone Bancshares, Inc. Declares Quarterly Preferred Dividend

      Cornerstone Bancshares, Inc. Declares Quarterly Preferred Dividend

PR Newswire

CHATTANOOGA, Tenn., Feb. 1, 2013

CHATTANOOGA, Tenn., Feb. 1, 2013 /PRNewswire/ -- Cornerstone Bancshares, Inc.
("Cornerstone"; OTC Bulletin Board: CSBQ; CSBQP), parent company of
Cornerstone Community Bank, today announced the next quarterly dividend
payment of its Series A Convertible Preferred Stock. Declared on February 1,
2013, the cash dividend is payable on February 14, 2013, to all Preferred
shareholders of record as of September 30, 2012.

This marks the eighth consecutive quarterly payment of the Preferred Stock
dividend and comes immediately after Cornerstone's report of $371,000 in net
income for the fourth quarter of 2012, representing a 228.6 percent
improvement quarter-over-quarter from the previous year.

Cornerstone completed its Preferred Stock Offering on December 31, 2012, after
selling all 600,000 shares of the new security and reaching its target goal of
raising $15 million in capital.

Founded in 1996, Cornerstone is a single-bank holding company, with $440
million in assets, serving the Chattanooga, Tennessee MSA, with five
full-service branch locations 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.

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

SOURCE Cornerstone Bancshares, Inc.

Contact: N. Frank Hughes, President & CEO, +1-423-385-3009
Press spacebar to pause and continue. Press esc to stop.