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<P STYLE="margin: 0"></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><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; margin: 0pt 0; text-align: center"><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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 35%; vertical-align: top; font-size: 10pt">Date of Report (Date of earliest event reported)</TD>
    <TD STYLE="width: 1%; padding: 0.75pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 64%; vertical-align: top; border-bottom: black 1pt solid; font-size: 10pt; font-weight: bold">June 27, 2012</TD></TR>
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<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><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: 25%; vertical-align: bottom; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Tennessee</TD>
    <TD STYLE="width: 2%; vertical-align: top; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 46%; vertical-align: bottom; border-bottom: black 1pt solid; font-weight: bold; text-align: center">000-30497</TD>
    <TD STYLE="width: 2%; vertical-align: top; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 25%; vertical-align: bottom; border-bottom: black 1pt solid; font-weight: bold; text-align: center">62-1173944</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(State or other jurisdiction<BR> of incorporation)</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Commission File Number)</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(IRS Employer<BR> Identification No.)</TD></TR>
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    <TD STYLE="width: 33%; vertical-align: top; border-bottom: black 1pt solid; font-weight: bold; text-align: center">835 Georgia Avenue, Chattanooga, Tennessee</TD>
    <TD STYLE="width: 34%; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 33%; vertical-align: top; border-bottom: black 1pt solid; font-weight: bold; text-align: center">37402</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(Address of principal executive offices)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Zip Code)</TD></TR>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 43%; vertical-align: top">Registrant&rsquo;s telephone number, including area code</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 56%; vertical-align: top; border-bottom: black 1pt solid; font-weight: bold">(423) 385-3000</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-bottom: 0.75pt; text-align: center">(Former name or former address, if changed since last report.)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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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Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</TD>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</TD>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 5.02</B></TD><TD STYLE="text-align: justify"><B>Corporate Governance and Management</B></TD>
</TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant announced the official appointments of Nathaniel F. Hughes as Chief Executive Officer; J. Robert Vercoe, Jr. as Chief
Credit Officer; and John H. Coxwell, Sr. as Executive Officer.</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 9.01</B></TD><TD STYLE="text-align: justify"><B>Financial Statements and Exhibits</B></TD>
</TR></TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">(c)</TD><TD STYLE="text-align: justify">Exhibits</TD>
</TR></TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">99.1</TD><TD STYLE="text-align: justify">Press release dated June 18, 2012, announcing the hiring
and appointment of John H. Coxwell, Sr. as Executive Officer of the Bank.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">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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<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: Black 1pt solid"><B><U STYLE="text-decoration: none">CORNERSTONE BANCSHARES, INC</U></B>. </TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">(Registrant)</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">Date:&nbsp;&nbsp;<U>June 27, 2012</U> </TD>
    <TD STYLE="width: 3%">By:</TD>
    <TD STYLE="width: 35%; border-bottom: black 1pt solid">/s/ Nathaniel F. Hughes</TD>
    <TD STYLE="width: 12%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Nathaniel F. Hughes,</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">President</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>



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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)
June 27, 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)
(IRS 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 5.02
Corporate Governance and Management
The
Registrant announced the official appointments of Nathaniel F. Hughes as Chief Executive Officer; J. Robert Vercoe, Jr. as Chief
Credit Officer; and John H. Coxwell, Sr. as Executive Officer.
Item 9.01
Financial Statements and Exhibits
(c)
Exhibits
99.1
Press release dated June 18, 2012, announcing the hiring
and appointment of John H. Coxwell, Sr. as Executive Officer of the Bank.
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:
June 27, 2012
By:
/s/ Nathaniel F. Hughes
Nathaniel F. Hughes,
President