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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001144204-10-045283.txt : 20100818
<SEC-HEADER>0001144204-10-045283.hdr.sgml : 20100818
<ACCEPTANCE-DATETIME>20100818113219
ACCESSION NUMBER:		0001144204-10-045283
CONFORMED SUBMISSION TYPE:	FWP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100818
DATE AS OF CHANGE:		20100818

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORNERSTONE BANCSHARES INC
		CENTRAL INDEX KEY:			0001038773
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				621175427
		STATE OF INCORPORATION:			TN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-166625
		FILM NUMBER:		101024895

	BUSINESS ADDRESS:	
		STREET 1:		4154 RINGGOLD RD
		CITY:			CHATTANOOGA
		STATE:			TN
		ZIP:			37412-416
		BUSINESS PHONE:		4236982454

	MAIL ADDRESS:	
		STREET 1:		4154 RINGGOLD RD
		CITY:			CHATTANOOGA
		STATE:			TN
		ZIP:			37412-0416

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EAST RIDGE BANCSHARES INC
		DATE OF NAME CHANGE:	19970507

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORNERSTONE BANCSHARES INC
		CENTRAL INDEX KEY:			0001038773
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				621175427
		STATE OF INCORPORATION:			TN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP

	BUSINESS ADDRESS:	
		STREET 1:		4154 RINGGOLD RD
		CITY:			CHATTANOOGA
		STATE:			TN
		ZIP:			37412-416
		BUSINESS PHONE:		4236982454

	MAIL ADDRESS:	
		STREET 1:		4154 RINGGOLD RD
		CITY:			CHATTANOOGA
		STATE:			TN
		ZIP:			37412-0416

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EAST RIDGE BANCSHARES INC
		DATE OF NAME CHANGE:	19970507
</SEC-HEADER>
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<TYPE>FWP
<SEQUENCE>1
<FILENAME>v194505_fwp.htm
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    <title>Unassociated Document</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuer
Free Writing Prospectus Dated August&#160;17, 2010</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
Pursuant to Rule&#160;433</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Relating
to Prospectus dated June 30, 2010</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
Statement No.&#160;333-166625</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cornerstone
Launches Preferred Stock Offering</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
announcing two consecutive quarters of positive earnings, Chattanooga-based
Cornerstone Bancshares, Inc., holding company of Cornerstone Community Bank,
kicked off a preferred stock offering to raise up to $15 million in
capital.&#160;&#160;The preferred stock features a 10 percent cumulative, annual
dividend and may be converted to common at a rate of five common shares for each
preferred share.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
offering includes 600,000 shares of Series A Convertible Preferred Stock, at a
price of $25 per share, with a minimum purchase of 400 shares per investor and a
maximum purchase of 100,000 shares per investor.&#160;&#160;The 10 percent
annual dividends are payable quarterly and will accumulate if not
paid.&#160;&#160;The preferred stock will have priority ranking over the common
stock with respect to dividend payments and liquidation rights.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Series A Convertible Preferred Stock will be sold on a &#8220;first-come, first
served&#8221; basis through Cornerstone Bancshares, Inc. of Chattanooga.&#160;&#160;It
will be traded on the Over-The-Counter Bulletin Board (OTCBB) after completion
of the offering.&#160;&#160;For more information or to participate in the
offering, please contact Miller Welborn (423-385-3067) or Frank Hughes
(423-385-3009) at Cornerstone Community Bank.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;Since
opening our doors in 1996, Cornerstone has been a true hometown bank, dedicated
to serving the needs of businesses and individuals in our local community,&#8221; said
Cornerstone&#8217;s Chairman of the Board Miller Welborn.&#160;&#160;&#8220;We believe this
new stock allows members of the Chattanooga community to own a piece of
Cornerstone at a potentially high return, while solidifying our capital position
for many years to come.&#8221;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;While no
investment is guaranteed, we believe this preferred stock gives investors a
greater degree of security and some very attractive returns in today&#8217;s
investment market,&#8221; said Welborn.&#160;&#160;&#8220;Our Board and executive management
team are fully vested in Cornerstone&#8217;s future and have committed 100% to
participate in this offering.&#160;&#160;We invite the Chattanooga community and
friends and family of Cornerstone to join us in this investment
opportunity.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cornerstone
is a single-bank holding company, with $520 million in assets, serving the
Chattanooga, Tennessee MSA, with five branches throughout Chattanooga and one
loan production office in Dalton, Georgia. Locally owned and locally operated,
Cornerstone specializes in providing a comprehensive range of customized
financial solutions for businesses and individuals.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        </div>
      </div>
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">This press release is for informational
purposes only and does not constitute an offer to sell or the solicitation of an
offer to buy common stock of the </font>Cornerstone Bancshares, Inc. <font style="DISPLAY: inline; COLOR: #000000">or any other securities and shall not
constitute an offer, solicitation or sale of any securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt">Cautionary Statement
Regarding Forward-Looking Statements.&#160; </font>This press release may
contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 regarding Cornerstone Bancshares, Inc.'s
business.&#160;&#160;Statements made in this release, other than those
concerning historical financial information, may be considered forward-looking
statements, which speak only as of the date of this release and are based on
current beliefs and expectations and involve a number of assumptions. These
forward-looking statements include outlooks or expectations for earnings,
revenues, expenses, rates of return or other future financial or business
performance, strategies or expectations, or the impact of legal or regulatory
matters on business, results of operations or financial
condition.&#160;&#160;<font style="DISPLAY: inline; COLOR: #000000">These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt">substantial changes in financial
markets, regulatory changes, changes in interest rates, loss of deposits and
loan demand to other financial institutions, and changes in real estate values
and the real estate market; </font>and other statements preceded by, followed by
or that include the words &#8220;estimate,&#8221; &#8220;plan,&#8221; &#8220;project,&#8221; &#8220;forecast,&#8221; &#8220;intend,&#8221;
&#8220;expect,&#8221; &#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;seek,&#8221; &#8220;target&#8221; or similar
expressions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">Additional factors that could cause
actual results to differ materially are discussed in </font>Cornerstone
Bancshares, Inc.'s<font style="DISPLAY: inline; COLOR: #000000"> filings with
the Securities and Exchange Commission, including without limitation its
Registration Statement on Form S-1, its Annual Report on Form 10-K, its
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.</font> These
forward-looking statements involve a number of known and unknown risks and
uncertainties or other assumptions that may cause actual results or performance
to be materially different from those expressed or implied by these
forward-looking statements.&#160;&#160;Cornerstone Bancshares, Inc.<font style="DISPLAY: inline; COLOR: #000000"> does not undertake a duty to update any
forward-looking statements in this press release.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Cornerstone
Bancshares, Inc. has filed a registration statement (including a prospectus)
with the SEC for the offering to which this communication relates. Before you
invest, you should read the prospectus in that registration statement and other
documents Cornerstone Bancshares, Inc. has filed with the SEC for more complete
information about Cornerstone Bancshares, Inc. and this offering. You may get
these documents for free by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, Cornerstone Bancshares, Inc., any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you
request it by calling <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">(423)-385-3009.</font></font></div>
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