SEC FORM 4

SEC Form 4

FORM 4

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

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

WIGGINS BILLY O

(Last)

(First)

(Middle)

(Street)

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
CORNERSTONE BANCSHARES INC [ csbq ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
01/30/2007

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	01/30/2007		S		7,190	D	$16.15	52,190⁽¹⁾	D
Common Stock								12,000⁽²⁾	I	Custodian for Minor child
Common Stock								86,080⁽³⁾	I	Self IRA

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
stock options	$13.25⁽⁴⁾							03/01/2007⁽⁵⁾	03/01/2016	Cornerstone Bancshares, Inc.	4,000⁽⁴⁾		4,000	D
Stock Option	$5.44⁽⁶⁾							03/01/2005⁽⁵⁾	03/01/2014	Cornerstone Bancshares, Inc.	2,000⁽⁶⁾		2,000	D
stock options	$9.225⁽⁷⁾							03/01/2006⁽⁵⁾	03/01/2015	Cornerstone Bancshares, Inc.	1,000⁽⁷⁾		1,000	D

Explanation of Responses:

1. On December 18, 2006, the common stock of Cornerstone Bancshares, Inc. split 2-for-1, resulting in the reporting person's ownership of 29,690 additional shares of common stock.

2. On December 18, 2006, the common stock of Cornerstone Bancshares, Inc. split 2-for-1, resulting in the reporting person's ownership of 6,000 additional shares.

3. On December 18, 2006 the common stock of Cornerstone Bancshares,Inc. split 2-for-1, resulting in the reporting person's ownership of 43,040 additional shares.

4. 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 occurred on December 18, 2006.

5. 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.

6. 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 occurred on December 18, 2006.

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

	/s/ N. Frank Hughes, attorney in fact	01/31/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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