Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
MAIDA JOSEPH A
   2. Issuer Name and Ticker or Trading Symbol
CORNERSTONE BANCORP INC [cbn] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
83 DON BOB RD		 3. Date of Earliest Transaction (Month/Day/Year)
12/27/2005
(Street)

STAMFORD, CT 06903		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               110 I By IRA FBO himself
Common Stock               6,340 (1) (2) D  
Common Stock               179 (3) (4) I By self as custodian for minor
Common Stock               358 (5) (6) I By self as custodian for minor
Common Stock               399 (7) (8) I By self as custodian for minor
Common Stock               839 (7) (8) I By self as custodian for minor
Common Stock               1,335 (9) (10) I By self as custodian for minor

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Director Stock Option (right to buy) $ 8.99 12/27/2005 12/27/2005 D     3,025 (11) 02/21/1996 02/21/2006 Common Stock 3,025 $ 27.7 0 D  
Director Stock Option (right to buy) $ 12.4 12/27/2005 12/27/2005 D     303 (11) 05/21/1997 05/21/2007 Common Stock 303 $ 24.29 0 D  
Director Stock option (right to buy) $ 17.25 12/27/2005 12/27/2005 D     303 (11) 05/20/1998 05/20/2008 Common Stock 303 $ 19.44 0 D  
Director stock option (right to buy) $ 13.64 12/27/2005 12/27/2005 D     275 05/19/1999 05/19/2009 Common Stock 275 $ 23.05 0 D  
Director Stock Option (right to buy) $ 10.91 12/27/2005 12/27/2005 D     275 (11) 05/17/2000 05/17/2010 Common stock 275 $ 25.78 0 D  
Director Stock Option (right to buy) $ 12.82 12/27/2005 12/27/2005 D     275 (11) 05/16/2001 05/16/2011 Common stock 275 $ 23.87 0 D  
Director Stock Option (right to buy) $ 17.82 12/27/2005 12/27/2005 D     275 (11) 05/15/2002 05/15/2012 Common Stock 275 $ 18.87 0 D  
Director stock option (right to buy) $ 18 12/27/2005 12/27/2005 D     250 (11) 05/21/2003 05/21/2013 Common Stock 250 $ 18.69 0 D  
Director stock option (right to buy) $ 25.46 12/27/2005 12/27/2005 D     250 (11) 05/26/2004 05/26/2014 Common Stock 250 $ 11.23 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MAIDA JOSEPH A
83 DON BOB RD
STAMFORD, CT 06903		   X      

Signatures

 Leigh A. Hardisty as power of attorney   12/29/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) In 2005, 41.366 shares of common stock were issued as a result of participation in the Cornerstone Bancorp, Inc. plan for the reinvestment of dividends.
(2) Approximately 0.739 fractional shares of common stock were converted to cash as a result of the termination of the Cornerstone Bancorp, Inc. dividend reinvestment plan in May 2005.
(3) In 2005, 1.168 shares of common stock were issued as a result of participation in the Cornerstone Bancorp, Inc. plan for the reinvestment of dividends.
(4) Approximately 0.059 fractional shares of common stock were converted to cash as a result of the termination of the Cornerstone Bancorp, Inc. dividend reinvestment plan in May 2005.
(5) In 2005, 2.336 shares of common stock were issued as a result of participation in the Cornerswtone Bancorp, Inc. plan for the reinvestment of dividends.
(6) Approximately 0.111 fractional shares of common stock were converted to cash as a result of the termination of the Cornerswtone Bancorp, Inc. dividend reinvestment plan in May 2005.
(7) In 2005, 2.607 shares of common stock were issued as result of participation in the Cornerstone Bancorp, Inc. plan for the reinvestment of dividends.
(8) Approximately 0.565 fractional shares of common stock were converted to cash as a result of the termination of the Cornerstone Bancorp, Inc. dividend reinvestment plan in May 2005.
(9) In 2005, 7.279 shares of common stock were issued as a result of participation in the Cornerstone Bancorp, Inc. plan for the reinvestment of dividends.
(10) Approximately 0.801 shares of common stock were converted to cash as a result of termination of the Cornerstone Bancorp, Inc. dividend reinvestment plan in May 2005.
(11) In accordance with the provisions of the Issuer's 1996 Stock Plan, in anticipation of the Issuer's merger with NewAlliance Bancshares, Inc. on January 2, 2006, the Compensation Committee of the Board of Directors of the Issuer on December 27, 2005 approved the purchase of all outstanding options by the Issuer at a price per share equal to the difference between the option exercise price and $36.69, the price of the Issuer's common stock at the close of business on December 23, 2005, the prior business day.

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