<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