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<P STYLE="margin: 0"></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549<BR>
<BR>
<BR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>FORM 8-K<BR>
<BR>
CURRENT REPORT<BR>
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</B></P>

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    <TD STYLE="width: 45%; font-size: 10pt">Date of Report (Date of earliest event reported)</TD>
    <TD STYLE="width: 55%; border-bottom: black 1pt solid; font-size: 10pt; font-weight: bold">February 23, 2012</TD></TR>
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    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 12pt"><B>CORNERSTONE BANCSHARES, INC.</B></FONT><FONT STYLE="font-size: 10pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center">(Exact name of registrant as specified in its charter)</TD></TR>
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    <TD STYLE="width: 34%; border-bottom: black 1pt solid; padding: 0.75pt 0.75pt 7.5pt; font-size: 10pt; font-weight: bold; text-align: center">Tennessee</TD>
    <TD NOWRAP STYLE="width: 33%; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; font-weight: bold; text-align: center">000-30497</TD>
    <TD NOWRAP STYLE="width: 33%; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; font-weight: bold; text-align: center">62-1173944</TD></TR>
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    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">of incorporation)</P></TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">File Number)</P></TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Identification No.)</P></TD></TR>
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    <TD STYLE="width: 40%; vertical-align: bottom; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; font-weight: bold; text-align: center">835 Georgia Avenue, Chattanooga, Tennessee</TD>
    <TD STYLE="width: 27%; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 33%; vertical-align: bottom; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; font-weight: bold; text-align: center">37402</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; text-align: center">(Zip Code)</TD></TR>
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    <TD STYLE="width: 45%; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt">Registrant&rsquo;s telephone number, including area code</TD>
    <TD NOWRAP STYLE="width: 55%; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; font-weight: bold">(423) 385-3000</TD></TR>
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    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt; text-align: center">(Former name or former address, if changed since last report.)</TD></TR>
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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):</P>

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&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

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&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

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&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

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&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

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    <TD STYLE="width: 10%; font-size: 10pt; font-weight: bold">Item 2.02.</TD>
    <TD STYLE="width: 90%; font-size: 10pt; font-weight: bold">Results of Operations and Financial Condition.</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.75in; text-align: left">On
February 22, 2012, the Registrant issued a press release reporting earnings results for the fiscal quarter ended December 31,
2011.</P>

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    <TD STYLE="width: 10%; font-size: 10pt; font-weight: bold">Item 7.01.</TD>
    <TD STYLE="width: 90%; font-size: 10pt; font-weight: bold">Regulation FD.</B></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.75in; text-align: left">On
February 22, 2012, the Registrant issued a press release announcing the payment date of February 28, 2012 for a cash dividend
in the amount of $.625 per share for its Series A Convertible Preferred Stock for all holders of record as of September 30, 2011.</P>

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    <TD STYLE="width: 10%; font-size: 10pt; font-weight: bold">Item 9.01.</TD>
    <TD STYLE="width: 90%; font-size: 10pt; font-weight: bold">Financial Statements and Exhibits.</TD></TR>
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    <TD STYLE="width: 10%; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt">(c)</TD>
    <TD STYLE="width: 90%; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt">Exhibits</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="padding: 0.75pt 0.75pt 7.5pt; font-size: 10pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-top: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt">99.1</TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 7.5pt; font-size: 10pt">Press release dated February 22, 2012 reporting earnings results for the fiscal quarter ended December 31, 2011.</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 22.5pt; margin-right: 0; margin-bottom: 12pt; margin-left: 0">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.</P>

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    <TD STYLE="padding: 0.75pt 0.75pt 7.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-weight: bold; text-decoration: underline">CORNERSTONE BANCSHARES, INC.</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">(Registrant)</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Date: <U>February 23, 2012</U> </TD>
    <TD COLSPAN="2" STYLE="padding: 0.75pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">By:</TD>
    <TD STYLE="width: 47%; text-decoration: underline">/s/ Nathaniel F. Hughes</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">Nathaniel F. Hughes,</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">President and Chief Executive Officer</TD></TR>
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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)
February 23, 2012
CORNERSTONE BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Tennessee
000-30497
62-1173944
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
835 Georgia Avenue, Chattanooga, Tennessee
37402
(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):
£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02.
Results of Operations and Financial Condition.
On
February 22, 2012, the Registrant issued a press release reporting earnings results for the fiscal quarter ended December 31,
2011.
Item 7.01.
Regulation FD.
On
February 22, 2012, the Registrant issued a press release announcing the payment date of February 28, 2012 for a cash dividend
in the amount of $.625 per share for its Series A Convertible Preferred Stock for all holders of record as of September 30, 2011.
Item 9.01.
Financial Statements and Exhibits.
(c)
Exhibits
99.1
Press release dated February 22, 2012 reporting earnings results for the fiscal quarter ended December 31, 2011.
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:
February 23, 2012
By:
/s/ Nathaniel F. Hughes
Nathaniel F. Hughes,
President and Chief Executive Officer