SMARTFINANCIAL INC. — Director's Dealing 2007

Mar 2, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CORNERSTONE BANCSHARES INC (CSBQ)
CIK: 0001038773
Period of Report: 2007-03-01

Reporting Person: FILLAUER KARL (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-03-01	Stock Options	$15.24	A	1000	Acquired	2017-03-01	Cornerstone Bancshares, Inc. (1000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	142760	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

Footnotes

F1: On December 18, 2006 the common stock of Cornerstone Bancshares, Inc. split 2-for-1, resulting in the reporting person's ownership of 71,380 additional shares of common stock.

F2: This option was previously reported as covering 1,000 shares at an exercise price of $10.88 per share, but was adjusted to reflect the stock split that occured on December 18, 2006.

F3: 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.

F4: This option was previously reported as covering 500 shares at an exercise price of $18.45 per share, but was adjusted to reflect the stock split that occured on December 18, 2006.

F5: This option was previously reported as covering 2,000 shares at an exercise price of $26.50 per share, but was adjusted to reflect the stock split that occured on December 18, 2006.