SMARTFINANCIAL INC. — Director's Dealing 2007

May 24, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CORNERSTONE BANCSHARES INC (CSBQ)
CIK: 0001038773
Period of Report: 2007-05-22

Reporting Person: LEVINE LAWRENCE D (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-05-22	Common Stock	S	1000	$15.15	Disposed	38110	Indirect

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	800	Indirect
Common Stock	5400	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Options	$5.44	2014-03-01	Cornerstone Bancshares, Inc. (2000)	2000	Direct
Stock Options	$9.23	2015-03-01	Cornerstone Bancshares, Inc. (1000)	1000	Direct
Stock Options	$13.25	2016-03-01	Cornerstone Bancshares, Inc. (4000)	4000	Direct
Stock Options	$15.24	2017-03-01	Cornerstone Bancshares, Inc. (1000)	1000	Direct

Footnotes

F1: The exercise date is determined by a vesting schedule: 50% the first year from the anniversary of grant date, 50% the second date of the anniversary of grant date.