The parent company of Cornerstone Bank in Chattanooga boosted its fourth quarter earnings, raising the bank’s profit for all of 2014 to nearly $1.64 million, or 2.5 percent more than the previous year.
Cornerstone Bancshares, Inc., which is preparing to merge with SmartBank in Seviere County, Tenn., to form one of East Tennessee’s biggest independent banks, said Monday it had net income of $412,000 for the fourth quarter of 2014. That was up 2.1 percent increase from year-ago results.
Cornerstone has reported positive earnings for 16 consecutive quarters following hefty losses during the Great Recession. The $416 million-asset bank cut its net foreclosed assets by more than 38 percent last year while boosting overall loans by 2 percent.
Cornerstone’s Chairman Miller Welborn said the board “is extremely pleased with this solid performance for the year.
“Our focus for the new year will be on steady loan and deposit growth, increased earnings, and positioning Cornerstone favorably for our upcoming merger,” he said.
In December, Cornerstone signed 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.