Cornerstone Financial Corp. (NJ) reported that net income for the third quarter of 2009 increased 122.3% over earnings in the prior year's third quarter, to $269 thousand, or $0.15 per diluted share, as compared to net income of $121,000, or $0.07 per diluted share, for the same period in 2008 and a loss of $1.1 million, or $0.66 per share, for the second quarter of 2009. The improved quarterly performance reflects an increase in total interest income of $681 thousand over the prior year, to $3.9 million from $3.2 million, and $256,000 over the second quarter of 2009. Net interest income increased by $522,000 over the year ago period and $359,000 over the second quarter of 2009. The increase in net interest income was partially offset by a $131,000 increase in the provision for loan losses in the current third quarter compared to the third quarter of 2008. For the nine month period ended September 30, 2009, Cornerstone Financial Corporation reported a net loss of $1.0 million, or $0.61 per diluted share, as compared to a net loss of $125,000, or $0.08 per share, for the same period in 2008. The change in net income for the nine-month period reflects an increase of $1.2 million in net interest income, offset by increases of $2.0 million in provision for loan losses, $274,000 in special assessment and regular FDIC insurance premium expense and $420,000 in increased salary and benefit costs, net occupancy costs and other operating expenses incurred in connection with the Bank's expansion, including costs relating to the Bank's Moorestown Main Street branch, which opened in June 2008. Net interest income was $6.2 million and interest income of $10.8 million against net interest income was $5 million and interest income of $9.1 million reported a year ago. Interest income was $3.9 million against $3.2 million a year ago.

On August 17, 2009, David T. Swoyer, the Executive Vice President and Chief Lending Officer of Cornerstone Bank, a wholly owned subsidiary of Cornerstone Financial Corp. (NJ) submitted his resignation, to be effective August 28, 2009.

Cornerstone Financial Corp. (NJ) announced that AGM to be held on May 20, 2009 to consider an amendment to the Company's Certificate of Incorporation to classify the Board of Directors into three classes and to prevent removal of the Directors by shareholders without cause, to provide that approval of any merger, consolidation or sale of substantially all of the assets of the Company which has not been approved in advance by the Board of Directors of the Company will require the affirmative vote of 75% of the Company's outstanding shares of common stock and to further require an affirmative vote of 75% of the outstanding common stock to amend this super-majority voting provision, to require that any shareholder action taken by written consent rather than at a meeting be by unanimous consent, to setting the quorum for action by shareholders at a meeting at one-third (1/3) of the issued and outstanding shares and to provide for 1,000,000 shares of series preferred stock, the terms, conditions and designations of which may be set by the Board of Directors at the time of issuance.