The Federal Deposit Insurance Corp. has terminated a consent order with Cornerstone Community Bank in Chattanooga, Tenn., after the bank increased its capital levels.
The April 2010 order required the bank, a unit of the $421 million-asset Cornerstone Bancshares (CSBQ), to strengthen its capital position and improve asset quality. The company raised more than $12 million through a preferred stock offering that was launched in 2010.
Cornerstone's core capital (leverage) ratio was 8.24% at June 30, up from 5.64% at March 31, 2010, according to the FDIC.
"This is a significant event for Cornerstone and testament to the hard work of our entire team, at all levels," Frank Hughes, the company's president and chief executive, said in a press release Wednesday. "While we're pleased that the regulators have recognized and acknowledged the progress made, we will continue to work diligently to improve our asset quality, clean up the balance sheet and continue on this path to greater profitability."