PDF: Cornerstone Bank consent order
Cornerstone Community Bank in Chattanooga has agreed to raise more capital and shrink its lending leverage under a consent order with state and federal regulators.
Cornerstone, which reported an $8.2 million loss last year after the value of its impaired loans more than doubled in 2009, is the fourth area bank placed under the extra regulatory oversight as “a troubled institution.”
Like the other troubled banks in the region that have shored up their balance sheets this year, Cornerstone has been working for months to address the concerns outlined in the April 2 consent order from the Federal Deposit Insurance Corp. and the Tennessee Department of Financial Institutions, bank officials said Monday.
“As a community bank, we’re a reflection of the community we serve and there’s no denying 2009 was a very tough year for most Chattanooga businesses,” said Frank Hughes, the bank president who was replaced Gregory Jones as chief executive named chief executive last November. “There’s nothing unreasonable about these regulatory actions, and I’m pleased to say we’re well down the road in terms of fulfilling these regulatory requirements and repositioning Cornerstone for the future.”