SmartFinancial (SMBK) 8-K Cornerstone Bancshares, Inc. Announces 1st Quarter 2006 Financial Results

Exhibit 99.1

Cornerstone Bancshares, Inc. Announces 1st Quarter 2006 Financial Results

          HIXSON, Tenn., April 20 /PRNewswire-FirstCall/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following:

          Cornerstone Bancshares, Inc. saw its 1st quarter 2006 earnings increase to $1.36 million versus $840 thousand, an increase of 61.3% over first quarter 2005 while book earnings per share increased in the first quarter of 2006 to $.42 versus $.29, an increase of 47.8% over first quarter 2005. (The per share data is different than the nominal earnings due to a 500,000 stock issue completed in February 2005 and maturity of non-qualified director stock options.)  The earnings growth was the result of continued strong balance sheet growth, especially loan generation.  Loan growth was lead by C & I and Commercial Real Estate lending which grew on average 28.9% over the same period in 2005. Due to this growth and the Bank’s “positive gap” (interest bearing assets repricing quicker than interest bearing liabilities) the Bank’s net interest margin increased to 5.65% in 1st quarter of 2006 compared to 5.29% during the first quarter of 2005.  The Company’s performance metrics continued to improve due the Bank’s net interest margin, ROA was 1.65% for the first quarter of 2006 compared to 1.31% during the first quarter in 2005. ROE was 16.18% during the first quarter in 2006 compared to 13.02% in 2005.

          The company completed the exercise of the Board of Director’s initial non- qualified stock option grant and deployed and additional 235,500 shares of common stock and foresees no material additional exercises until 2009. Presently the Company is operating at a comfortable 10.2% leverage ratio and has the ability to continue to grow its balance sheet in excess of its retained earnings ability to fund growth for the foreseeable future. Given this positive capital position and an above average net interest margin, management remains confident with the $1.62 earnings per share guidance given at the beginning of the year.

          The asset quality remained at the superior level during first quarter of 2006 with the exception of one well collateralized loan in the amount of $1.8 million which was placed on non-accrual and as result, non-performing loans as a percentage of average total loans increased to 0.98% while past due loans as a percentage of total loans increased slightly to 0.84%.  The Bank had net charge offs of $31 thousand during the first quarter, while providing $378 thousand to the loan loss allowance. The large provision was created to fully fund the loan loss allowance for the loan growth realized during the quarter, and protect the Bank against any unforeseen issues.  As a result, the Bank was able to increase its allowance for possible loan losses to 1.41%.

          Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches and $340 million in assets specializing in business financial services.

CORNERSTONE BANCSHARES, INC.
Selected Financial Information
as of March 31, 2006
(in thousands)

	Three Months Ending March 2006
					% Change
EARNINGS SUMMARY	2006		2005
Interest income	$	6,509	$	4,322		50.6	%
Interest expense		2,154		1,135		89.8	%
Net interest income		4,355		3,187		36.6	%
Provision for loan loss		378		210		80.0	%
Net interest income after provision		3,977		2,977		33.6	%
Noninterest income		433		218		98.6	%
Noninterest expense		2,242		1,821		23.1	%
Pretax income		2,168		1,374		57.8	%
Income taxes		813		534		52.2	%
Net income	$	1,355	$	840		61.3	%
Earnings per common share	$	0.42	$	0.29		47.8	%
Weighted average common shares outstanding		3,215,271		2,947,594

	Year-to-Date Ending March 2006
					% Change
EARNINGS SUMMARY	2006		2005
Interest income	$	6,509	$	4,322		50.6	%
Interest expense		2,154		1,135		89.8	%
Net interest income		4,355		3,187		36.6	%
Provision for loan loss		378		210		80.0	%
Net interest income after provision		3,977		2,977		33.6	%
Noninterest income		433		218		98.6	%
Noninterest expense		2,242		1,821		23.1	%
Pretax income		2,168		1,374		57.8	%
Income taxes		813		534		52.2	%
Net income	$	1,355	$	840		61.3	%
Earnings per common share	$	0.42	$	0.29		47.8	%
Weighted average common shares outstanding		3,215,271		2,947,594

	Three Months Ending March 31
					% Change
AVERAGE BALANCE SHEET SUMMARY	2006		2005
Loans, net of unearned income	$	271,650	$	210,665		28.9	%
Investment securities & Other		35,835		30,089		19.1	%
Earning assets		307,485		240,754		27.7	%
Total assets		328,569		256,459		28.1	%
Noninterest bearing deposits		36,644		36,875		-0.6	%
Interest bearing transaction deposits		34,551		32,684		5.7	%
Certificates of deposit		128,963		90,869		41.9	%
Total deposits		200,158		160,428		24.8	%
Other interest bearing liabilities		40,576		36,019		12.7	%
Shareholder’s equity		33,488		25,806		29.8	%

	Year-to-Date Ending March 31
					% Change
AVERAGE BALANCE SHEET SUMMARY	2006		2005
Loans, net of unearned income	$	271,650	$	210,665		28.9	%
Investment securities & Other		35,835		30,089		19.1	%
Earning assets		307,485		240,754		27.7	%
Total assets		328,569		256,459		28.1	%
Noninterest bearing deposits		36,644		36,875		-0.6	%
Interest bearing transaction deposits		34,551		32,684		5.7	%
Certificates of deposit		128,963		90,869		41.9	%
Total deposits		200,158		160,428		24.8	%
Other interest bearing liabilities		40,576		36,019		12.7	%
Shareholder’s equity		33,488		25,806		29.8	%

	Three Months Ending March 2006						Year-to-Date Ending March 2006
SELECTED RATIOS	2006			2005			2006			2005
Average equity to average assets		10.19	%		10.06	%		10.19	%		10.06	%
Average net loans to average total assets		82.68	%		82.14	%		82.68	%		82.14	%
Return on average assets		1.65	%		1.31	%		1.65	%		1.31	%
Return on average total equity		16.18	%		13.02	%		16.18	%		13.02	%
Actual Equity on March 31,	$	33,777,189		$	27,385,960
Actual # shares outstanding on March 31,		3,223,284			3,011,334
Book value per common share	$	10.48		$	9.09

SOURCE  Cornerstone Bancshares, Inc.
          -0-                              04/20/2006
          /CONTACT:  Frank Hughes, President & COO of Cornerstone Bancshares, Inc.,
+1-423-385-3009/
          /Web site:  http://www.cscbank.com /
          (CSBQ)