Item 1.02 Termination of a Material Definitive Agreement

On August 17, 2012, the Federal Deposit Insurance Corporation ("FDIC") issued written confirmation to Cornerstone Community Bank's ("Bank") Board of Directors that the Consent Order entered into by the Bank with the FDIC on April 2, 2010, had been terminated. Also on August 17, 2012, the Tennessee Department of Financial Institutions issued written confirmation to the Bank's Board of Directors that the Written Agreement executed with the Bank on April 5, 2010, had been terminated.

Item 5.02 Departure of Certain Officers

Effective August 15, 2012, Senior Vice President and Chief Risk Officer Anthony Ray tendered his resignation from Cornerstone Community Bank.