8-K

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

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 15, 2006

CORNERSTONE BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Tennessee	000-30497	62-1175427
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
5319 Highway 153, Chattanooga, Tennessee		37343
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code (423) 385-3000
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.     Other Events

                       On November 14, 2006, the Registrant issued a press release reporting a stock dividend in the form of a 2 for 1 stock split for shareholders of record as of December 1, 2006 with a payment date of December 18, 2006.

Item 9.01     Financial Statements and Exhibits.

(d)     Exhibits

99.1         Press release dated November 14, 2006 reporting a stock dividend in the form of a 2 for 1 stock split for shareholders of record as of December 1, 2006 with a payment date of December 18, 2006.

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CORNERSTONE BANCSHARES, INC.
	(Registrant)
Date:  November 15, 2006
	By:	\s\ Nathaniel F. Hughes
		Nathaniel F. Hughes,
		President and Chief Operating Officer

EX-99.1

Exhibit 99.1

Cornerstone Bancshares, Inc. Announces Stock Dividend

HIXSON, Tenn., Nov. 14 /PRNewswire-FirstCall/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following:

Cornerstone Bancshares, Inc. Board of Directors announced the record date and payment date of Cornerstone’s stock dividend in the form of a stock split. The dividend will be a 2 for 1 stock split of the Company’s Common Stock for all registered holders as of December 1, 2006 with a distribution date of December 18, 2006. The split is a response to the above average earnings performance the Company has experienced and the outlook the Board of Directors has concerning future earnings growth.

Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches and $370 million in assets specializing in business financial services.

SOURCE  Cornerstone Bancshares, Inc.
           -0-                                                            11/14/2006
           /CONTACT:  Frank Hughes, President & Treasurer of Cornerstone Bancshares, Inc., +1-423-385-3009, or fax, +1-423-385-3100, or fhughes@cscb-chatt.com/
           /Web site:  http://www.cscbank.com/