Cornerstone Bank Forms Holding Company, Cornerstone Bancorp Inc.

Cornerstone Bank, a well-established institution in Stamford, Connecticut, has taken a significant step in its organizational structure by forming a holding company, Cornerstone Bancorp Inc. The move, announced by President Norman H. Reader on August 20, 1998, aims to provide flexibility for the bank's future financial and competitive needs. This reorganization will enable Cornerstone Bank to better suit the interests of its shareholders through the holding company structure. The Bank's common stock has been trading on the American Stock Exchange under the symbol CBN.

Key Takeaways:

• Cornerstone Bank has formed a holding company, Cornerstone Bancorp Inc., with an aim to provide flexibility for future financial and competitive needs.
• The holding company will acquire all of the issued and outstanding common shares of Cornerstone Bank in a one-for-one exchange.
• Cornerstone Bank will become a wholly owned subsidiary of Cornerstone Bancorp Inc.
• A special meeting of shareholders of Cornerstone Bank will be held on October 21, 1998, to vote on the Agreement and Plan of Reorganization.
• The holding company structure is believed to better suit the current and future interests of the Bank's shareholders.
• The Bank has announced plans for a 10% common stock dividend payable on August 31, 1998, and an earlier announcement of a 71% increase in net income for the six months ended June 30, 1998.
• Cornerstone Bank operates from four full-service locations in Stamford and one full-service location in Greenwich, with a limited service mobile branch.

Statistics:

• The Bank's common stock is traded on the American Stock Exchange under the symbol CBN.
• Cornerstone Bank has announced a 10% common stock dividend payable on August 31, 1998.
• The Bank has seen a 71% increase in net income for the six months ended June 30, 1998, compared to results for the same time period last year.
• Cornerstone Bank operates from 5 locations in Stamford and Greenwich.

Sources:

• Cornerstone Bank, Stamford, Connecticut - Business Wire, Aug. 20, 1998
• Cornerstone Bank, Stamford, Connecticut - Business Wire, July 17, 1998
• Cornerstone Bank, Stamford, Connecticut - Business Wire, July 15, 1998