Stockguru.com: Cornerstone Bancshares Inc. is in the StockGuru Spotlight for October 26, 2009

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Oct 26, 2009 (M2 PRESSWIRE via COMTEX) -- CSBQ | Quote | Chart | News | PowerRating -- DALLAS, TEXAS : StockGuru announces that Cornerstone Bancshares Inc. (OTCBB: CSBQ | Quote | Chart | News | PowerRating) is in the StockGuru Spotlight. Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA, with five full-service branches and one loan production office in Dalton, GA, and $500 million in assets, specializing in business financial services.

On Friday, the company put out news announcing the following: Cornerstone Bancshares, Inc. announced financial results for the third quarter of 2009 with a net loss of $697,000 or ($.11) per share. Year-to-date, Cornerstone reports a net loss of $4.2 million or ($.66) per share. The third quarter 2009 loss was a direct result of Cornerstone's continued commitment to reduce problem assets as the Bank provided $1.8 million of additional provision for loan losses. During the third quarter management discovered additional problem loans and expects to fund further loan loss provision during the fourth quarter of 2009. As a result of the additional projected fourth quarter provision, Cornerstone anticipates losing an additional $1 million during the fourth quarter. If the economy does not deteriorate further in 2010, the Bank should see a material improvement in its asset quality metrics and should see improvements in earnings as problem assets become less of a drag on earnings generation. Cornerstone's net interest margin remained at a historically low rate of 3.44% year-to-date; however, management expects an improvement as the amount of nonaccrual loans decreases and the certificate of deposit portfolio re-prices to lower current rates. The Bank is committed to reducing expenses and improving core earnings. Aggressive cost-saving measures are being considered and will be implemented as long as the action does not damage the long-term value of the Bank.

Shares for Cornerstone Bancshares Inc. (OTCBB: CSBQ | Quote | Chart | News | PowerRating) were down during the late afternoon of trading on Friday and closed down fifteen cents at closing.

To view our StockGuru Spotlight on Cornerstone Bancshares Inc. (OTCBB: CSBQ), please visit: http://www.stockguru.com

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