Cornerstone Bancshares, Inc., holding company of Cornerstone Community Bank, Tuesday 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 Dec. 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 Wesley 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.”
Cornerstone announced on Dec. 8, 2014, 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 Mr. 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 Mr. 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.”