<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF CORNERSTONE BANCSHARES, INC. FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                       6,852,134
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                               580,000
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                 10,096,065
<INVESTMENTS-CARRYING>                      10,936,164
<INVESTMENTS-MARKET>                        12,963,000
<LOANS>                                     74,152,551
<ALLOWANCE>                                    950,071
<TOTAL-ASSETS>                             109,690,250
<DEPOSITS>                                  96,940,165
<SHORT-TERM>                                         0
<LIABILITIES-OTHER>                            608,983
<LONG-TERM>                                  1,250,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,009,461
<OTHER-SE>                                   9,602,650
<TOTAL-LIABILITIES-AND-EQUITY>             109,690,250
<INTEREST-LOAN>                              4,941,964
<INTEREST-INVEST>                            1,007,399
<INTEREST-OTHER>                               154,565
<INTEREST-TOTAL>                             6,103,928
<INTEREST-DEPOSIT>                           3,174,586
<INTEREST-EXPENSE>                           3,174,586
<INTEREST-INCOME-NET>                        2,622,672
<LOAN-LOSSES>                                  306,670
<SECURITIES-GAINS>                                   0
<EXPENSE-OTHER>                              2,567,106
<INCOME-PRETAX>                                663,121
<INCOME-PRE-EXTRAORDINARY>                           0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   359,293
<EPS-PRIMARY>                                      .36
<EPS-DILUTED>                                      .36
<YIELD-ACTUAL>                                    9.11
<LOANS-NON>                                     50,000
<LOANS-PAST>                                 2,605,815
<LOANS-TROUBLED>                               521,514
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                               950,071
<CHARGE-OFFS>                                  337,000
<RECOVERIES>                                    65,000
<ALLOWANCE-CLOSE>                              950,071
<ALLOWANCE-DOMESTIC>                           950,071
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0