<ARTICLE> 9 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF CORNERSTONE BANCSHARES, INC. AND SUBSIDIARY FOR THE YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 4,268,967 <INT-BEARING-DEPOSITS> 0 <FED-FUNDS-SOLD> 8,425,000 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 0 <INVESTMENTS-CARRYING> 9,077,465 <INVESTMENTS-MARKET> 9,280,116 <LOANS> 73,892,549 <ALLOWANCE> 1,400,000 <TOTAL-ASSETS> 110,506,134 <DEPOSITS> 98,011,608 <SHORT-TERM> 1,250,000 <LIABILITIES-OTHER> 741,495 <LONG-TERM> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,009,461 <OTHER-SE> 9,014,826 <TOTAL-LIABILITIES-AND-EQUITY> 110,506,134 <INTEREST-LOAN> 6,739,054 <INTEREST-INVEST> 1,296,613 <INTEREST-OTHER> 176,299 <INTEREST-TOTAL> 8,211,966 <INTEREST-DEPOSIT> 4,141,136 <INTEREST-EXPENSE> 90,254 <INTEREST-INCOME-NET> 3,980,576 <LOAN-LOSSES> 715,343 <SECURITIES-GAINS> 0 <EXPENSE-OTHER> 3,551,185 <INCOME-PRETAX> 400,288 <INCOME-PRE-EXTRAORDINARY> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 248,332 <EPS-PRIMARY> 0.25 <EPS-DILUTED> 0.24 <YIELD-ACTUAL> 4.25 <LOANS-NON> 609,000 <LOANS-PAST> 114,000 <LOANS-TROUBLED> 0 <LOANS-PROBLEM> 0 <ALLOWANCE-OPEN> 915,005 <CHARGE-OFFS> 230,348 <RECOVERIES> 0 <ALLOWANCE-CLOSE> 1,400,000 <ALLOWANCE-DOMESTIC> 0 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 14,000,000