UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)
August 24, 2007
 
CORNERSTONE BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Tennessee
000-30497
62-1175427
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
5319 Highway 153, Chattanooga, Tennessee
37343
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code
(423) 385-3000
 
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Item 8.01   Other Events

On August 24, 2007, the Registrant issued a press release announcing the declaration of a quarterly dividend in the amount of $.05 per share earnings with a record date of September 18, 2007, and a payment date of October 5, 2007.
 

Item 9.01   Financial Statements and Exhibits.

(c)   Exhibits

99.1
Press release dated August 24, 2007 announcing the declaration of a quarterly dividend.
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
     
  CORNERSTONE BANCSHARES, INC.
(Registrant)
 
  		 
  		 
 
Date : August 24, 2007 By:   \s\ Nathaniel F. Hughes
 
Nathaniel F. Hughes,
  President and Treasurer
 
 
 
 
 


Cornerstone Bancshares, Inc. Announces Cash Dividend  
Friday, August 24, 2007 8:00 AM  
- PR Newswire
 
CHATTANOOGA, Tenn., August 24, 2007 /PRNewswire-FirstCall via COMTEX/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following:
 
Cornerstone Bancshares, Inc Board of Directors announced the record date and payment date of Cornerstone’s quarterly dividend. The dividend $.05 a share will be issued to shareholders of record as of September 18, 2007, and will be paid October 5, 2007.
 
Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches, 2 loan production offices and $425 million in assets specializing in business financial services.

Contact:
 
 
Cornerstone Bancshares, Inc., Chattanooga, TN
 
Frank Hughes
 
President & Treasurer, Cornerstone Bancshares, Inc.
 
PH#(423)385-3009,Fax# (423)385-3100
 
email: fhughes@cscbank.com