SmartFinancial 8K Cornerstone Bancshares, Inc. Announces 1st Quarter 2007 Financial Results | SMBK 16 Apr 07

Exhibit 99.1

Cornerstone Bancshares, Inc. Announces 1st Quarter 2007 Financial Results

HIXSON, Tenn., April 16 /PRNewswire-FirstCall/ -- Cornerstone Bancshares, Inc. (OTC Bulletin Board: CSBQ) today announced the following:

Cornerstone Bancshares, Inc. saw its 1st quarter 2007 earnings increase to $1.65 million versus $1.36 million, an increase of 21.9% over first quarter 2006 while book earnings per share increased in the first quarter of 2007 to $.25 versus $.21, an increase of 20.4% over first quarter 2006. The earnings growth was the result of continued strong balance sheet growth, especially loan generation. C & I and Commercial Real Estate lending lead the Bank’s loan growth which grew on average 17.9% over the same period in 2006. The Bank saw a slight compression in its net interest margin which declined 10 basis points from 5.78% to 5.68% during the first quarter of 2007. The compression is due to a flat yield curve and increased competition in the Bank’s market place. To counter act the net interest margin compression the bank has started two new Loan Production Offices, one in Dalton, GA and the other in Knoxville, TN to accelerate the leverage of the Bank’s capital and insure future net interest income growth. The expansion will be accretive in 2007. The Company’s performance metrics continued to improve due the Bank’s net interest margin, ROA was 1.75% for the first quarter of 2007 compared to 1.65% during the first quarter in 2006. ROE was 16.83% during the first quarter in 2007 compared to 16.18% in 2006.

Presently the Company is operating at a comfortable 9.75% 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 the expected above average loan growth, management remains confident with the $1.00 earnings per share guidance given at the beginning of the year.

The asset quality remained at the superior level during first quarter of 2007, non-performing loans as a percentage of average total loans decreased to 0.04% while past due loans as a percentage of total loans decreased to 0.49%.

Cornerstone Bancshares, Inc. is a one-bank holding company serving the Chattanooga, Tennessee MSA with 5 branches, 2 loan production offices and $395 million in assets specializing in business financial services.

          CORNERSTONE BANCSHARES, INC.
          Selected Financial Information
          as of March 31, 2007
          (in thousands)

	Three Months Ending March 31				% Change			Year-to-Date Ending March 31				% Change

EARNINGS SUMMARY	2007		2006					2007		2006

Interest income	$	8,073	$	6,509		24.0	%	$	8,073	$	6,509		24.0	%
Interest expense		3,189		2,154		48.1	%		3,189		2,154		48.1	%
Net interest income		4,884		4,355		12.2	%		4,884		4,355		12.2	%
Provision for loan loss		2		378		-99.5	%		2		378		-99.5	%
Net interest income after provision		4,882		3,977		22.8	%		4,882		3,977		22.8	%
Noninterest income		404		433		-6.7	%		404		433		-6.7	%
Noninterest expense		2,686		2,242		19.8	%		2,686		2,242		19.8	%
Pretax income		2,600		2,168		19.9	%		2,600		2,168		19.9	%
Income taxes		948		813		16.7	%		948		813		16.7	%
Net income	$	1,652	$	1,355		21.9	%	$	1,652	$	1,355		21.9	%
Earnings per common share	$	0.25	$	0.21		20.4	%	$	0.25	$	0.21		20.4	%
Weighted average common shares outstanding (1)		6,511,951		6,430,542					6,511,951		6,430,542

	Three Months Ending March 31							Year-to-Date Ending March 31
AVERAGE BALANCE					% Change							% Change
SHEET SUMMARY	2007		2006		% Change			2007		2006		% Change

Loans, net of unearned income	$	320,296	$	271,650		17.9	%	$	320,296	$	271,650		17.9	%
Investment securities & Other		37,111		35,835		3.6	%		37,111		35,835		3.6	%
Earning assets		357,407		307,485		16.2	%		357,407		307,485		16.2	%
Total assets		378,146		328,569		15.1	%		378,146		328,569		15.1	%
Noninterest bearing deposits		38,315		36,644		4.6	%		38,315		36,644		4.6	%
Interest bearing transaction deposits		90,466		86,914		4.1	%		90,466		86,914		4.1	%
Certificates of deposit		147,624		128,963		14.5	%		147,624		128,963		14.5	%
Total deposits		276,405		252,521		9.5	%		276,405		252,521		9.5	%
Other interest bearing liabilities		60,080		40,576		48.1	%		60,080		40,576		48.1	%
Shareholder’s equity		39,252		33,488		17.2	%		39,252		33,488		17.2	%

	Three Months Ending March 31						Year-to-Date Ending March 31

SELECTED RATIOS	2007			2006			2007			2006

Average equity to average assets		10.38	%		10.19	%		10.38	%		10.19	%
Average net loans to average total assets		84.70	%		82.68	%		84.70	%		82.68	%
Return on average assets		1.75	%		1.65	%		1.75	%		1.65	%
Return on average total equity		16.83	%		16.18	%		16.83	%		16.18	%
Actual Equity on Mar. 31,	$	39,578,839		$	33,777,189
Actual # shares outstanding on Mar. 31,		6,515,118			6,446,568
Book value per common share	$	6.07		$	5.24

SOURCE Cornerstone Bancshares, Inc.
          -0-                                                  04/16/2007
          /CONTACT: Frank Hughes, President & COO of Cornerstone Bancshares, Inc., +1-423-385-3009/
          /Web site: http://www.cscbank.com/
          (CSBQ)

SmartFinancial (SMBK) 8-KCornerstone Bancshares, Inc. Announces 1st Quarter 2007 Financial Results