Cornerstone Bancshares in Chattanooga, Tenn., has raised $15 million to bolster its capital reserves.
The $421 million-asset company said in a press release Monday that it sold 600,000 shares of convertible preferred stock. The Federal Deposit Insurance Corp. placed the company's Cornerstone Community Bank under a consent order in April 2010, requiring it to improve capital and asset quality.
Cornerstone's total risk-based capital ratio stood at 12.8% at Sept. 30. Nonperforming assets comprised 7% of the company's total assets at the end of the third quarter.