The parent company of Cornerstone Bank in Chattanooga boosted its first-quarter earnings by 16.5 percent above a year ago to $480,000.
Cornerstone Bancshares Inc., which has been profitable for 17 consecutive quarters, said loan volume was up 1.1 percent but noninterest expenses fell by 3 percent and net foreclosed assets plunged by nearly a third.
"The bank has seen continued improvement in its asset quality as ratios return to more historic levels, which will allow the bank to see additional reduced foreclosed asset expenses over the next two years," Cornerstone Community Bank President Barry Watson said in releasing the first-quarter earnings.
Cornerstone Chairman Miller Welborn said the earning gain "should position us well for the upcoming merger with SmartFinancial and the tremendous growth opportunities ahead." SmartFinancial, the Knoxville-based parent of SmartBank, plans to merge with Cornerstone later this year.