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: LEVINE LAWRENCE D (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	39110	Indirect
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

Footnotes

F1: Exercise dates are determined by a vesting schedule; 50% after the 1st anniversary date and 100% after the 2nd anniversary date.