SmartFinancial (SMBK) 8-K Cornerstone Bancshares, Inc. Announces Management Changes and Additional 3rd Quarter 2009 Provision for Loan Losses Following Joint Examination

Exhibit 99.1

Cornerstone Bancshares, Inc. Announces Management Changes and
Additional 3^rd Quarter 2009 Provision for Loan Losses Following Joint Examination

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--November 13, 2009--Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced that its Chairman and Chief Executive Officer, Gregory B. Jones, has resigned from all positions he holds as an officer or director of Cornerstone and its subsidiaries and affiliates, including Cornerstone Community Bank, effective November 12, 2009. Nathaniel F. Hughes, President, Chief Operating Officer and Treasurer, will also serve as Cornerstone’s Interim Chief Executive Officer while Cornerstone conducts an executive search for a permanent Chief Executive Officer, giving consideration to both internal and external candidates. Miller Welborn, a non-employee director, has been appointed to serve as the Chairman of the Board of Directors.

“On behalf of the Board of Directors, I want to thank Greg Jones for his dedicated service and contributions to Cornerstone. We wish him success in his future endeavors,” said Miller Welborn, the newly appointed Chairman of the Board of Directors. “As Cornerstone moves forward, we are grateful that Frank has agreed to serve as Interim CEO. His wealth of experience, including over 25 years in the banking industry, extensive knowledge of our business and strong leadership skills will serve our organization well during the transition and provide stable guidance for the day-to-day operations as we look to strengthen our financial position.”

Cornerstone also announced that, in connection with the conclusion of a joint examination of its wholly owned subsidiary, Cornerstone Community Bank (the “Bank”), by the Federal Deposit Insurance Corporation (FDIC) and the Tennessee Department of Financial Institutions (TDFI), the Bank was required to fund an additional provision of $1.625 million for loan losses for the third quarter of 2009, increasing the total provision for loan losses for the three and nine month periods ended September 30, 2009, to $3.39 million and $10.75 million, respectively. After giving effect to the increased provision for loan losses, Cornerstone had a net loss of $1.7 million, or ($.27) per share, for the three months ended September 30, 2009, and a net loss of $5.2 million, or ($.82) per share, for the nine months ended September 30, 2009. As a result, certain amounts described in and set forth in the financial tables included with Cornerstone’s earnings release on October 23, 2009 are no longer accurate and should not be relied upon. A corrected version of Cornerstone’s selected financial information for the three and nine month periods ended September 30, 2009 is set forth below. Cornerstone had previously announced that it anticipated funding a similar provision amount during the fourth quarter of 2009.

Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with five branches and one loan production office in Dalton, Georgia, and $500 million in assets, specializing in business financial services.

CORNERSTONE BANCSHARES, INC.
Selected Financial Information
as of September 30, 2009
(in thousands)
	Three Months								Year-to-Date
	Ending September 30						%		Ending September 30						%
EARNINGS SUMMARY	2009			2008			Change		2009			2008			Change
Interest income	$	6,407		$	7,462		-14.15	%	$	19,699		$	23,279		-15.38	%
Interest expense		2,766			3,027		-8.62	%		8,428			9,720		-13.30	%
Net interest income		3,641			4,436		-17.93	%		11,271			13,559		-16.88	%
Provision for loan loss		3,390			440		670.45	%		10,749			927		1059.54	%
Net interest income after provision		251			3,996		-93.73	%		522			12,632		-95.87	%
Noninterest income		184			477		-61.35	%		1,178			1,396		-15.62	%
Noninterest expense		3,279			3,151		4.06	%		10,345			9,464		9.31	%
Pretax income		(2,844	)		1,321		-315.25	%		(8,646	)		4,564		-289.42	%
Income taxes		(1,145	)		461		-348.18	%		(3,432	)		1,616		-312.33	%
Net income	$	(1,700	)	$	860		-297.59	%	$	(5,214	)	$	2,948		-276.85	%
Earnings per common share	$	(0.27	)	$	0.14		-297.59	%	$	(0.82	)	$	0.46		-277.22	%
Weighted average common shares outstanding (1)		6,371,202			6,371,202					6,337,068			6,350,272
	Three Months								Year-to-Date
AVERAGE BALANCE	Ending September 30						%		Ending September 30						%
SHEET SUMMARY	2009			2008			Change		2009			2008			Change
Loans, net of unearned income		354,246			381,342		-7.11	%	$	369,394		$	383,966		-3.80	%
Investment securities & Other		99,812			48,578		105.47	%		81,926			46,724		75.34	%
Earning assets		454,058			429,920		5.61	%		451,320			430,690		4.79	%
Total assets		488,871			449,053		8.87	%		472,925			449,257		5.27	%
Noninterest bearing deposits		39,491			41,204		-4.16	%		41,756			42,688		-2.18	%
Interest bearing transaction deposits		56,799			78,576		-27.72	%		64,970			85,872		-24.34	%
Certificates of deposit		272,041			186,077		46.20	%		240,179			183,517		30.88	%
Total deposits		368,331			305,858		20.43	%		346,905			312,077		11.16	%
Other interest bearing liabilities		91,247			106,041		-13.95	%		94,037			99,347		-5.34	%
Shareholders' equity		32,838			37,741		-12.99	%		34,522			37,408		-7.71	%
	Three Months								Year-to-Date
	Ending September 30								Ending September 30
SELECTED RATIOS	2009			2008					2009			2008
Average equity to average assets		6.72	%		8.40	%				7.30	%		8.33	%
Average net loans to average total assets		72.46	%		84.92	%				78.11	%		85.47	%
Return on average assets		-1.39	%		0.77	%				-1.47	%		0.87	%
Return on average total equity		-20.70	%		9.12	%				-20.14	%		10.51	%
Actual Equity on September 30	$	31,303,705		$	37,487,451
Actual # shares outstanding on September 30		6,372,937			6,319,718
Book value per common share	$	4.91		$	5.93

CONTACT:
Cornerstone Bancshares, Inc.
Frank Hughes, 423-385-3009
Fax: 423-385-3100
fhughes@cscbank.com