Ownership Submission
FORM 5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
Form 3 Holdings Reported
Form 4 Transactions Reported
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL 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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1. Name and Address of Reporting Person *
MILLER RONALD C
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)

40 DAVENPORT FARM LN. E.
3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
12/31/2004
(Street)


STAMFORD, CT 06903
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Reporting
(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 at end of Issuer's Fiscal Year
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Amount (A) or (D) Price
Common Stock             3,097.503 (1) D  
Common Stock             10,020.9 I Joint with wife
Common Stock             3,486.139 (2) I By wife's IRA FBO herself
Common Stock             19,414.73 (3) I By IRA FBO himself

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 2270 (9-02)

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 at End of Issuer's Fiscal Year
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Director stock option - right to buy $ 8.99           02/21/1997 02/21/2007 Common Stock
3,025
  3,025
D
 
Director stock option - right to buy $ 12.4           05/21/1997 05/21/2007 Common Stock
303
  3,328
D
 
Director stock option - right to buy $ 17.25           05/20/1998 05/20/2008 Common Stock
303
  3,631
D
 
Director stock option - right to buy $ 13.64           05/19/1999 05/19/2009 Common Stock
275
  3,906
D
 
Director stock option - right to buy $ 10.91           05/17/2000 05/17/2010 Common Stock
275
  4,181
D
 
Director stock option - right to buy $ 12.82           05/16/2001 05/16/2010 Common Stock
275
  4,456
D
 
Director stock option - right to buy $ 17.82           05/15/2002 05/15/2012 Common Stock
275
  4,731
D
 
Director stock option - right to buy $ 18           05/21/2003 05/21/2013 Common Stock
250
  4,981
D
 
Director stock option - right to buy $ 25.46           05/26/2004 05/26/2014 Common Stock
250
  5,231
D
 

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
MILLER RONALD C
40 DAVENPORT FARM LN. E.
STAMFORD, CT 06903
  X      

Signatures

Leigh A. Hardisty as Power of Attorney 02/11/2005
**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) The reporting person received 48.552 shares of common stock as a result of participation in the Bancorp's plan for the reinvestment of dividends.
(2) The reporting person received 59.919 shares of common stock as a result of participation in the Bancorp's plan for the reinvestment of dividends.
(3) The reporting person received 333.725 shares of common stock as a result of participation in the Bancorp's plan for the reinvestment of dividends.

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