<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF CORNERSTONE BANCSHARES, INC. FOR THE THREE MONTH PERIOD
ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                       6,166,368
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                            14,310,000
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                  9,375,520
<INVESTMENTS-CARRYING>                       8,687,672
<INVESTMENTS-MARKET>                         8,719,486
<LOANS>                                     63,759,536
<ALLOWANCE>                                    871,452
<TOTAL-ASSETS>                             108,990,536
<DEPOSITS>                                  97,126,213
<SHORT-TERM>                                   855,000
<LIABILITIES-OTHER>                            674,178
<LONG-TERM>                                          0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,009,061
<OTHER-SE>                                   9,326,084
<TOTAL-LIABILITIES-AND-EQUITY>             108,990,536
<INTEREST-LOAN>                              1,530,852
<INTEREST-INVEST>                              363,427
<INTEREST-OTHER>                                     0
<INTEREST-TOTAL>                             1,894,279
<INTEREST-DEPOSIT>                             984,271
<INTEREST-EXPENSE>                             984,841
<INTEREST-INCOME-NET>                          909,438
<LOAN-LOSSES>                                   47,018
<SECURITIES-GAINS>                                   0
<EXPENSE-OTHER>                                829,830
<INCOME-PRETAX>                                216,074
<INCOME-PRE-EXTRAORDINARY>                     216,074
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    87,926
<EPS-PRIMARY>                                     0.09
<EPS-DILUTED>                                      .09
<YIELD-ACTUAL>                                    4.38
<LOANS-NON>                                          0
<LOANS-PAST>                                   303,990
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                               915,005
<CHARGE-OFFS>                                   94,000
<RECOVERIES>                                     5,000
<ALLOWANCE-CLOSE>                              871,452
<ALLOWANCE-DOMESTIC>                           871,452
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0