-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HCgfXy33FAj3O6qF+H1TyrfjHMpnuQgwki2VQYU9fkq+AXKJH7QCDKJEquWPc374 rOrL9Gdh2MVfgwSJ3i0UtA== 0000891092-04-003420.txt : 20040727 0000891092-04-003420.hdr.sgml : 20040727 20040723111632 ACCESSION NUMBER: 0000891092-04-003420 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040723 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNERSTONE BANCSHARES INC CENTRAL INDEX KEY: 0001038773 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 621175427 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30497 FILM NUMBER: 04928118 BUSINESS ADDRESS: STREET 1: 4154 RINGGOLD RD CITY: CHATTANOOGA STATE: TN ZIP: 37412-416 BUSINESS PHONE: 4236982454 MAIL ADDRESS: STREET 1: 4154 RINGGOLD RD CITY: CHATTANOOGA STATE: TN ZIP: 37412-0416 FORMER COMPANY: FORMER CONFORMED NAME: EAST RIDGE BANCSHARES INC DATE OF NAME CHANGE: 19970507 8-K 1 e18521_8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 23, 2004 CORNERSTONE BANCSHARES, INC. (Exact name of registrant as specified in its charter) Tennessee 000-30497 62-1175427 --------- --------- ---------- (State of Incorporation) (Commission File No.) (IRS Employer Identification No.) 5319 Highway 153, Chattanooga, Tennessee 37343 (Address of principal executive offices) (423) 385-3000 (Registrant's telephone number, including area code) -------------------------------------------------------------- (Former name or former address, if changed since last report.) Item 9. Regulation FD Disclosure. This information furnished under "Item 9. Regulation FD Disclosure" is provided under "Item 12. Results of Operation and Financial Condition" in accordance with SEC Release No. 33-8216. On July 23, 2004, the Registrant issued a press release reporting earnings results for the fiscal quarter ending on June 30, 2004. Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press release dated July 23, 2004 reporting earnings results for the fiscal quarter ending on June 30, 2004. Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CORNERSTONE BANCSHARES, INC. Date: July 23, 2004 By: \s\ Nathaniel F. Hughes ------------------------------------ Nathaniel F. Hughes, President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press release dated July 23, 2004 reporting earnings results for the fiscal quarter ending on June 30, 2004. EX-99.1 2 e18521ex991.txt PRESS RELEASE Exhibit 99.1 Cornerstone Bancshares, Inc. Announces 2nd Quarter 2004 Financial Results on July 23, 2004, and Stock Split as of August 15, 2004 HIXSON, Tenn., July 23 /PRNewswire-FirstCall/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following: Cornerstone Bancshares, Inc saw its 2nd quarter earnings surge to $623 thousand or $.50 a share and $1,146 thousand year to date or $.92 a share. Due to these results the Company is adjusting its earning guidance from $1.88 per share to $1.95 per share for 2004 and is very optimistic about future earnings growth. In addition, the Board of Directors has authorized a 2 for 1 stock split of the Company's Common Stock for all registered holders as of August 15, 2004 with a distribution date of September 15, 2004. The split is in response to the above average earnings performance the Company has experienced over the last couple years and the outlook the Board of Directors has concerning future earnings growth. The Bank experienced continued exceptional loan growth as the loan portfolio finished the quarter with an average 2nd quarter balance of $175 million, up 28.5% over the same period in 2003 and surpassed the Bank's budgeted loan growth for 2004. The loan growth was concentrated in the business sector especially in asset based and commercial real estate lending as more and more Chattanooga business customers became disenchanted with their existing banking relationships and searched out a Chattanooga community bank. Asset growth followed in line with loan growth as the Bank averaged $217 million in assets for the 2nd quarter of 2004 up from $175 million during the 2nd quarter of 2003 an increase of 24.3%. Earning assets for the Bank increased 24.2% in comparison to the 2nd quarter of 2003 driving the average earning asset ratio up to 93.5% well above the peer bank average. The Bank opened its new Ooltewah Branch as of June 1st and will have a grand opening on August 11th. This will give the Bank five full service branches in the Chattanooga, TN MSA and will assist in the collection of core deposits to fund the exceptional loan growth the Bank has enjoyed. The asset quality remained at the superior level during the first half of 2004 as non-performing loans as a percentage of average total loans remained at 0.03% while past due loans as a percentage of total loans remained at 0.24%. The Bank had net charge offs of $52 thousand during the second quarter and $109 thousand year to date, while providing $410 thousand to the loan loss allowance year to date. The large provision was created to fully fund the loan loss allowance for the loan growth realized from the first two quarters of 2004, and as a result the Bank was able to maintain a 1.32% allowance for the loan loss allowance. Cornerstone Bancshares Inc. 2nd quarter 2004 earnings of $623 thousand represents an 24.5% increase over the 2nd quarter in 2003 earnings of $500 thousand. Earnings per share for the 2nd quarter 2004 was $0.50 compared to $0.40 per share for the 2nd quarter of 2003. Cornerstone is confident this earnings growth will continue throughout 2004 and anticipates earnings per share to grow to $1.95 a share an increase of 28.3% over 2003. Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches and $225 million in assets specializing in business financial services. CORNERSTONE BANCSHARES, INC. Selected Financial Information as of June 30, 2004 (in thousands) Three Months Year-to-Date Ending Jun 30 % Ending Jun 30 % EARNINGS SUMMARY 2004 2003 Change 2004 2003 Change Interest income $3,404 $2,804 21.4% $6,482 $5,444 19.1% Interest expense 818 805 1.6% 1,625 1,617 0.5% Net interest income 2,586 1,999 29.4% 4,857 3,827 26.9% Provision for loan loss 250 50 400.0% 410 155 164.5% Net interest income after provision 2,336 1,949 19.9% 4,447 3,672 21.1% Noninterest income 329 289 13.6% 676 575 17.6% Noninterest expense 1,646 1,425 15.5% 3,250 2,779 17.0% Pretax income 1,019 813 25.4% 1,873 1,467 27.6% Income taxes 396 313 26.8% 727 565 28.6% Net income $623 $500 24.5% $1,146 $902 27.0% Earnings per common share $0.50 $0.40 $0.92 $0.73 Weighted average common shares outstanding 1,243,167 1,243,167 1,243,617 1,235,667 Three Months Year-to-Date AVERAGE BALANCE Ending Jun 30 % Ending Jun 30 % SHEET SUMMARY 2004 2003 Change 2004 2003 Change Loans, net of unearned income $175,397 $136,473 28.5% $169,126 $131,848 28.3% Investment securities & Other 27,823 27,214 2.2% 26,622 26,971 -1.3% Earning assets 203,220 163,687 24.2% 195,748 158,819 23.3% Total assets 217,425 174,879 24.3% 208,983 169,867 23.0% Noninterest bearing deposits 27,821 17,091 62.8% 24,876 16,790 48.2% Interest bearing transaction deposits 58,496 48,896 19.6% 57,095 46,565 22.6% Certificates of deposit 80,426 69,345 16.0% 80,019 70,450 13.6% Total deposits 166,743 135,333 23.2% 161,990 133,805 21.1% Other interest bearing liabilities 31,898 22,418 42.3% 28,283 19,275 46.7% Shareholder's equity 17,668 15,932 10.9% 17,487 15,662 11.7% Three Months Year-to-Date Ending Jun 30 Ending Jun 30 SELECTED RATIOS 2004 2003 2004 2003 Average equity to average assets 8.13% 9.11% 8.37% 9.22% Average net loans to average total assets 80.67% 78.04% 80.93% 77.62% Return on average assets 1.15% 1.14% 1.10% 1.06% Return on average total equity 14.10% 12.56% 13.11% 11.52% Book value per common share $14.21 $12.82 SOURCE Cornerstone Bancshares, Inc. -0- 07/23/2004 /CONTACT: Frank Hughes, President & Treasurer of Cornerstone Bancshares, Inc., +1-423-385-3009, or fax, +1-423-385-3100/ /Web site: http://www.cscbank.com / (CSBQ) CO: Cornerstone Bancshares, Inc. ST: Tennessee IN: FIN SU: STS ERN -----END PRIVACY-ENHANCED MESSAGE-----